"Potential implications of Brexit in Customs and Trade" - workshop held by Darren Watson (ISG Tax, UK) at the TRA Annual Meeting 2018 in Athens

1. Potential implications of Brexit in Customs and
Trade

2. 2 options for the Brexit:
• Hard Brexit  UK leaves the Single Market and the EU Customs Union
•  The rules applicable to the WTO members would then apply to the
UK and UK would have to negociate its WTO commitments in its own
right
•  UK and the EU will have to deal with new borders and apply new
related tariff
•  UK and EU will have to treat import from and export to the other
party in the same way as the currently treat relations with non
EU/EEA/Customs Union States

3. 2 options for the Brexit:
• Hard Brexit  UK leaves the Single Market and the EU Customs Union
•  Existing Free Trade Agreement (FTA) will need to be renegociated by
the UK on bilateral basis (while the currently exist globaly between the
EU and some countries)
• Implication for instance on origine rules

4. 2 options for the Brexit:
• Soft Brexit  UK stay in the EU Customs Union  guarantee of free
movement of goods with the EU and common external tariffs for goods
entering the UK from third countries

5. Which are the considerations to take into account during the
negocations :
• A new regulatory framework on customs and global trade will beed to be
established in the UK to deal with the movement of goods accross borders
and well as cooperation between customs authorities
• The UK will have to draft a new Customs Code
• The status of Authorised Economic Operator (AEO) issued by the HMRC will
become uncertain
• The Binding Origin and Classification information, the valuation rulings,
inward processing relief authorisations, bonded warehouse authorisations
and simplifies procedure will also become uncertain

6. Which are the considerations to take into account during the
negocations :
• New borders can create significant burden
• In Ireland, inspections point over 250 road crossing the border would
need to be installed
• Concerning the relation between UK, North Ireland and Ireland,
there is a real wish from the UK to find a solution that protects
businesses’ ability to access these important mutual markets and
avoid hard borders with respect to the movement of goods
• Full borders controls and inspections between UK and EU would required the
collection of duties and taxes and inspections according to agreed standards
and conditions for import

7. How are the negociations evoluating:
• The UK has recently published a paper setting out its "backstop" proposals for
customs arrangements with the EU, if a new permanent deal is not ready in
time.

8. How are the negociations evoluating:

9. How are the negociations evoluating:

10. How are the negociations evoluating:

11. How are the negociations evoluating:

12. How are the negociations evoluating:

13. Key date to come :
• 28-29 June EU summit. This was seen as a deadline by which the UK was
expected to produce answers on the UK's customs relationship with the EU
and Northern Ireland, but this deadline is now highly unlikely to be met

14. Conclusion:
• Still a lot of incertitude on several point;
• From the final decision/evolution of the negociation will depend lots of
consequences from a Customs point of view
• Wait and see