Update on Brexit. Mark Johnson KN UK - Director Customs and Trade Control Nov 2018

Transcription

1 Update on Brexit Mark Johnson KN UK - Director Customs and Trade Control Nov 2018

2 The Position as of 15 Nov 2018 The UK Prime Minister has secured agreement from the Cabinet for the Draft Withdrawal agreement What happens next:- UK Prime Minister will present it to Parliament in the House of Commons - 15 Nov 2018 Then it needs to go to the European Parliament now 25 Nov 2018 confirmed by Michel Barnier The politic declaration to support the agreement needs to be constructed between now and 25 Nov 18 Then it is back to the UK parliament for a meaningful vote Due Dec 2018 TBC Statement within the agreement Until the future relationship becomes applicable, a single customs territory between the Union and the UK shall be established (Single Customs Territory). Accordingly, Northern Ireland is in the same Customs Territory as the GB; the Customs territory of the GB Any extension to the transition period from Dec 2020, needs to be agreed before 1 July It will be at a cost! 15

3 Important Note The information contained in this guidance is valid only at the time of writing and is only to be regarded as an opinion offered by Kuehne + Nagel Ltd. Nothing contained herein is legally binding on Kuehne + Nagel Ltd. and shall not be considered as such Current version: Nov 2018

4 Nothing is agreed until everything is agreed

5 Brexit Terminology Soft or Hard Brexit Brexiteers and Pro-EU FTA Agreement & WTO Rules NI Border Transition Agreed and Ratified Article 50 (March 2017) Negotiators From The to A Customs Union Single Market

6 Customs & International Trade Considerations The UK will exit the EU on 29 March 2019 (Brexit Day) Nothing is - The current UK Government has secured the principle of a transition period to 31 December 2020 agreed until everything agreed What are the issues? - The transition will only be in place if an overall withdrawal agreement is signed and ratified - The role of the European Court of Justice and the future of the Irish Border - Backstop Dec 2021? Hard Brexit ( ) + All imports and exports to the EU will require full customs declaration How, where and when? + All Imports from EU become dutiable in the absence of a Trade deal/reversion to WTO rules + Goods will be required to be cleared at port of entry and fiscal collection needed + The UK is likely to apply same external tariff as the EU + AEO will be of use theoretically. No other Trusted Trader mechanism in place/aeo lite! + Transit through EU & excise goods: time-consuming procedures; high potential fiscal and double-duty risk. Soft Brexit (End of Transition) + A trade deal would mean no or reduced impact on duties on intra-eu traffic. + The UK will likely remain in some form of Customs Union + An extension to the current EU declaration process maybe an option + The desire to retain in the EMCS/Common Community Transit Convention in some form + The transition period would most likely not be enough to agree on a comprehensive trade deal + CHIEF replacement CDS will be in place

7 Transition Deal 23 March 2018 The key aspects of the agreement announced in Brussels are: The transitional period will last from Brexit Day on 29 March 2019 to 31 December 2020 [ the hard stop is the next EU Budget period starting January 2021 which they do not want the UK to be part of.] EU citizens arriving in the UK between these two dates will enjoy the same rights and guarantees as those who arrive before Brexit. The same will apply to UK expats on the continent The UK will be able to negotiate, sign and ratify its own trade deals during the transition period The UK will still be party to existing EU trade deals with other countries Northern Ireland will effectively stay in parts of the single market and the customs union in the absence of other solutions to avoid a hard border with the Republic of Ireland

8 Kuehne + Nagel: Taking Action A dedicated Brexit team has been created with representation from across the business. Their role: Monitor the progress of the negotiations Understand what the new arrangements mean for KN & our Customers Maximise opportunities and reduce business risk We re doing this by: Scenario mapping Working with industry and Government bodies Create and deliver a clear communications strategy

9 23 June 16 July 16 August 16 UK Leaves the EU KN UK set up Brexit working group, concentrating on key areas Customer, Technology and People Scenario Mapping, today VS- what it might look like in the future. 250 K declarations VS No Deal = 1.25 milo. KN preparing an agile and flexible customs solutions (to cope with the potential increase in customs clearance needs) KNUK Key Timelines Sept 17 Event involving Key Stakeholders incl. Oct 17 KN UK attended House of Commons Be Jan 18 2 nd HM Government Logistics Border 15 Mar 18 3rd HM Government LSG mtg 24 April 18 4 th HM Government LSG mtg 1 May 18 KN Ncl Branch Brexit open day 3 July 18 KN WEU Customs managers Meeting 8 Aug 18 White Board Session with HMR C 3/4 Sept 18 2 Day Deep dive into HMRC and BDG White Board Session 6/7 sept 18 KN Heathrow Branch Brexit open day 4 Oct 18 Last view of D1ND before being presented to Ministers 8 Oct 18 URGENT Rountable mtg with Chris Grayling Prep for D1ND 8 Oct 18 KN Dartford Branch Brexit open day 10 /11 Oct 18 KN MAN & LIV Branch Brexit open day 30 Oct 18 KN BHM Branch Brexit open day ABP Mtg Nov 17 HMS Belfast KN Customer Event HMRC and UK Government, Industry experts, Economists ready on day One event KN UK invited to join HM Government Logistics Border Planning Steering Group (only 1 of 2 logistics providers) Dec 17 1 st HM Government Logistics Border BIFA Mtg Planning Steering Group Planning Steering Group Feb 18 Government announces the UK will leave the Customs Union Declaration Feb 18 WIG Mtg 20 April May 18 7 June June 18 19July 18 5 Sept 18 7 Sept Oct Oct 18 18/19 Oct 18 6 Dec 18 END of 2018 RHA Mtg 3 July June 18 RHA Mtg required for all EU movements ABP Meeting 1 st HM Government Southern LSG mtg 5 th HM Government LSG mtg FTA Keep Britain Trading 2 nd HM Government Southern LSG mtg KN Poole Branch Brexit open day 12 July July 18 KN Bristol Branch Brexit open day 6 th HM Government LSG mtg 9 Aug 18 URGENT Rountable mtg with Chris Grayling Prep for D1ND 20 Aug 18 3rd HM Government Southern LSG mtg 21 Aug 18 KN Glasgow Branch Brexit open day 23 Aug 18 HMG Warehousing Meeting 100 PS 19 Sept 18 WIG Mtg 7 th HM Government LSG mtg HMG BDG Focus on Agri-Foods PS North West Aerospace Alliance Conference UK Automated Customs and Int l Trade Assoc (ACITA) 8 th HM Government LSG mtg EU Council sits in Brussels 9 th HM Government LSG mtg

10 January Dec Dec 21 HARD BREXIT UK finally Leaves the EU End of transition period Back-Stop! Announced : 7 June 18 KNUK Key Timelines Mar 19 Brexit Day - Start of the transition period or UK Trade negotiations can commence Less than 2 year Implementation period

11 Brexit Relationship Matrix Frank Dunsmuir HMRC A/C Mgr Fujitsu Software Provider Karen Wheeler Director General Border coordination Aaron Dunne Customs EU Exit Policy Team Richard Burnett CEO James Hookham Deputy Chief Executive Lara Robinson Principal policy adviser, EU negotiations Kevin Richardson CEO Robert Windsor Executive Director John Keefe Director of Public Affairs Tony Thomas Border Coordination Duncan Buchanan Deputy Policy Director Pawel Jarza Policy and Compliance Advisor Chris Seaton Head of Public Affairs James Cooper Chief Executive Zoe Ryan Senior Policy Advisor Road Richard Thompson Senior Policy Advisor Maritime Andrea Cranfield Imp Project Mgr Alison Lockyer James Clarke Policy Advisor - EU Exit Roads Sam Watts Senior Policy Advisor Maritime Kraig McCarthy Members of Parliament Charlie Elphicke Dover Phil Hayes Office Manager - Dover Chris Grayling Secretary for State Transportation Chaz Walia Had of business engagement Recruitment Temp agencies Santa Fe Mark Johnson UK Customs and Trade Control Director Mark Corby - UK National Customs & Trade Control Mgr Flo Saulnier Strategic Business Support Jim Hedderwick Rail & Road Director Christopher Kingshott Strategic Programmes Director Marc Wynne UK Intermodal Manager Jeanette Burton Head of HR Food services

12 In Summary We are connected, front and centre with the government and industry bodies KN Brexit team of 15 senior managers from all business and functional units to ensure all potential aspects of the Brexit negotiations are closely monitored Recognition there are only speculations and political intentions Technical Notices (23 Aug 18, 13 September 18 and 12 oct 18 Partnership Packs 23 Oct 18) What can you do today? Full description of goods on your EU commercial invoices A Letter of Empowerment EORI Registration Number Paying For Any Duty & VAT 15

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14 Finally - Study June 2018 Baker Mc Kenzie Multi-National law Firm established 1949 Ranked as the 2 nd largest Law Firm in the world Commission a survey of 800 Businesses across six major EU27 Markets (FR,DE,ES,NL,SE,IE) Business with at least GBP 250 Milo or equivalent of T/O, 32% were more than GBP 1 Bilo in T/O They asked a number of questions relating to:- The businesses about the impact of Brexit to date, Business preparedness for the future and sentiment towards the UK Here are some High Lights:- However.. 15