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EDITORIAL
In these troubled times, it is becoming more and more difficult to follow the progress of the Brexit process and plan with any degree of clarity. What we know after last week is that the UK will no longer leave the EU on 29 March, but has secured an extension of the Article 50 process until at least 12 April. This will buy industry an additional couple of weeks to address remaining weak points and improve their degree of preparedness. Other developments are not out of the question and the planned meaningful vote due to take place tomorrow, Tuesday 26 March, (pending confirmation) could have a more positive result than expected, but in the face
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of uncertainty, preparing for the most challenging outcome (a no-deal exit on 12 April) is the best recommendation we can give you. You will find in this edition further practical information to support you in your preparedness efforts. You are also warmly encouraged to register to follow our latest Brexit web briefing on Thursday to get a more detailed update and the chance to ask more specific questions to our Brexit team. No matter what the decision of politicians, you can feel confident that we will continue to do all we can to support you and help you get ready.
Pauline Bastidon, FTA Head of European Policy
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In this week's edition:
Brexit news
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Brexit date delayed to 12 April (at the earliest)
Last week, the Prime Minister wrote to the President of the European Council to request a delay to the Article 50 process and for Brexit to be postponed until 30 June 2019. After long hours of debate on 21 March, EU27 leaders agreed to grant an extension to Article 50 (i.e. delay to Brexit) to the UK along the following lines:
- The European Council agrees to an extension until 22 May 2019, provided the withdrawal agreement is approved by the House of Commons this week. This is a technical extension designed to provide enough time for the European Parliament to also ratify the agreement and for the UK to pass the legislation needed to give effect to the agreement in UK law. A 21 month status-quo like transition would start on 22 May.
- If however the withdrawal agreement is not ratified this week (either because it is not submitted to another meaningful vote or because it gets rejected), the extension will end on 12 April 2019. Before that date, the UK Government will need to come up with a clear course of action and submit this plan to EU27 leaders for consideration before 12 April. Any extension beyond that would force the UK to organise European Parliament elections on its territory, which the Prime Minister currently refuses to do. The UK will of course be at full liberty to leave without a deal on 12 April – in which case the UK would leave with no transition.
Shortly afterwards, the Prime Minister confirmed that the UK agreed with the EU leaders proposal. The Prime Minister could seek to put the withdrawal agreement to another meaningful vote in Parliament this week, if enough MPs send the signal that they are ready to support it. Should the agreement be rejected or should the vote not take place, the Prime Minister has accepted the proposed delay of Brexit until 12 April and will ensure that UK legislation is changed so that the date of 29 March may be replaced by 12 April.
This means that the cliff-edge has been postponed by two weeks – failing ratification of the withdrawal agreement (by the House of Commons and the European Parliament) or approval of another plan (by the UK and all 27 countries). No-deal remains on the table, and our advice to you is to keep preparing for this, with the date of 12 April in mind. For further information, please contact Pauline Bastidon.
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Facilitating import customs processes: transitional simplified procedure guide
On 22 March 2019, HMRC has published a detailed guide on making customs declarations using the new transitional simplified procedure. This procedure was introduced earlier this year to widen some of the benefits currently available only to accredited traders, and to facilitate import procedures for new traders – although all importers based in the UK can apply for TSP accreditation. This procedure is only available for traders registered in the UK (i.e. no intermediaries, and we understand that simply holding a UK VAT number is not sufficient to qualify). We understand that, following repeated calls from stakeholders such as FTA, HMRC have agreed to extend the use of TSP to other modes of transport beyond accompanied ro-ro, which should make it more attractive for shippers. The guide is available here.
When you import goods into the UK from the EU under transitional simplified procedures, there are two stages to making a declaration. The first part of the declaration will depend on the type of goods you’re importing and which procedure you’re using:
- If you’re importing controlled goods, you will need to submit a simplified frontier declaration to clear the goods from the border. The full list of controlled goods can be found here. To make a simplified declaration for controlled goods using transitional simplified procedures, you’ll need a customs agent or intermediary to help you or you’ll need to buy software to do this yourself.
- If you’re importing standard goods, you can make an entry into your own records. When the goods cross the border, you will need to update your commercial records with the date and approximate time the goods arrived in the UK.
You must submit a supplementary declaration (a more detailed declaration) for all goods, controlled and standard, after your goods have crossed the border. You will need to make a supplementary declaration by the fourth working day of the month following the arrival of the goods into the UK, but you may opt to delay submission until 4 October to give yourself time to prepare to make the supplementary declarations. This is a new easement announced on Friday, in order to give more time to traders to either acquire the right software or work with an agent to be able to submit these supplementary declarations. The guide explains how to do this.
Last but not least, the guide explains how to combine this procedure with transit procedures.
You can find a list of criteria you need to meet to be eligible for TSP here. The registration form can be found here. For further information, please contact Pauline Bastidon or John Lucy.
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Deferment of customs duties, import VAT and excise duties
To apply to defer payment of customs duties, import VAT and excise duties if the UK leaves the EU with no-deal, you will need to use forms C1200B and C1202. You, or your company or partnership, must be established in the UK in order to defer payment. This is usually the case if you’re UK resident or your company or partnership has its registered office in the UK. You will find these forms and relevant guidance here. For further information, please contact John Lucy.
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FTA visits Port of Calais ahead of Brexit day
On 22 March 2019, FTA Head of Global and European Policy Pauline Bastidon took part in a roundtable and site visit organised by the Port of Calais for French shippers. She had the opportunity to gather further information about the process on the French side of the border and about new infrastructure being built in Calais. The presentation from French authorities can be found here while the map of new infrastructure at the Port of Calais is available here.
The Port is planning for 150 parking places for UK-bound traffic, with available office space for customs brokers (marked in purple on the map of the Port). In addition, around 200 parking places have been built for trucks directed towards the orange lane coming either from Ireland or the UK, and an additional 50-60 parking places will be available at the new Border Inspection Post (see zones in yellow on the map). Trucks coming from Ireland will be directed towards a designated area within this part of the port to ensure that they are dealt with separately and as a priority. Customs authorities confirmed that trucks that would not have proof that the right formalities have been completed will be asked to follow the orange lane. Groupage trucks with only one missing declaration (or other document) will also be directed towards the orange lane. Screens on board ferries will be used to indicate to the driver whether they can go through the green lane, and mostly continue their journey uninterrupted (although spot checks are likely) or whether they will need to go to the orange lane for further controls or to complete requested formalities. Trucks loaded with goods subject to sanitary and phytosanitary checks or any other regulatory requirements will immediately need to follow the orange lane, as will trucks carrying ATA carnets. French authorities are asking their officials on the ground to show some flexibility and understanding on day 1, should certain formalities be missing, but it is not certain that officials will follow this recommendation (the recent strikes have shown that they do not always follow directives from their hierarchy).
Port authorities are awaiting a formal confirmation from the European Commission that the BIP will be approved for day one, as are Eurotunnel and the Port of Boulogne. Representatives from the French Agriculture Ministry indicated that they had received positive signals from the European Commission so far, including with regard to the live horses application of the BIP. They however indicated that Dieppe’s application for facilities to inspect horses had been rejected and that it was unlikely to be approved in time (live horses will need to go through Calais, Eurotunnel or Dunkirk). The Ministry also confirmed that opening hours in the Dover strait (Dunkirk, Calais, Eurotunnel) would be 24 hours, 7 days a week, with the exception of the Boulogne BIP (for seafood and fisheries), only open in the morning or on a need-based basis in the afternoon (with higher inspection fees likely) and facilities for horses, only open from about 8:30am to 6pm. Officials from the Ministry confirmed that inspection fees will be the same across France, in accordance with the legal measure adopted on 25 June 2012 – e.g. €30 / horse during the day and €467 / horse outside of working hours; €30.49 minimum + €6.10 / tonne for fisheries, etc.)
For further information, please contact Pauline Bastidon.
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What to expect at the Dutch Border in the event of no-deal
Our Dutch sister organisation TLN has shared with us some documents outlining the procedure that will need to be followed at Dutch ports in the event of no-deal Brexit. The most important element to bear in mind is that pre-lodgement of customs documents via the Port Community System Portbase will be a requirement to even to be able to access Dutch ports with a lorry full of UK-bound products. All ferry terminals and most shortsea terminals will require participation in this solution. Registration is not free and costs €499. Trucks will be diverted to special designated parking areas away from the terminal in order to avoid chaos. You will find further information about the system and how to register here.
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Trade and transport with the rest of the world (including Switzerland)
The UK Government has published an updated list of trade deals and mutual recognition agreements ‘rolled over’ ahead of a no-deal EU exit to take into account its new agreement with countries in the Caribbean region and share more detailed information about agreements with Pacific islands. The updated page with useful links can be found here. The Department for International Trade has also updated its guidance on existing trade deals the UK benefits from through EU membership if it leaves with no-deal. The updated guidance confirms that deals will not be in place with a number of countries on 12 April, such as Japan, Turkey or Algeria. Members who currently rely on integrated agreements such as EEA arrangements for Norway or the agreement with Switzerland should note that ‘rolled-over’ agreements are not like for like replacements for existing ones: the new agreements are often less ambitious and wide-ranging, to take into account the uncertainty regarding the degree of proximity with the EU and alignment with EU standards. New formalities or checks might therefore be required (for instance, sanitary and phytosanitary processes or safety and security declarations).
The UK Government has also updated the notice on international agreements if the UK leaves the EU without a deal, which covers a wider range of agreements for instance in the fields of transport and customs. The updated documents, which can be found here, contain information about the Agreement on Government Procurement, the Australia MRA, the Pacific Economic Partnership Agreement, the Norway Road Transport Agreement, the Jordan Air Services Arrangement and the United States Air Safety Arrangement, to name but a few additions.
Businesses exporting from the UK, or investigating export opportunities can attend the UK Trade Show Access Programme’s (TAP) selected overseas trade shows and conferences, and get grants to offset some costs. More information can be found here. For further information, please contact Pauline Bastidon.
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Operation Brock – detailed guidance available
Traditionally when there has been severe disruption to cross-channel services, sections of the M20 have been closed and used to queue HGVs heading for mainland Europe, under arrangements known as Operation Stack. In November 2017 the Government announced that, alongside ongoing work to find a permanent solution for Operation Stack, Highways England would take forward interim alternatives for Operation Stack that could be ready for use in March 2019, and that, crucially, would keep the M20 open in both directions.
From this week, Operation Brock will be available as an extra tool for managing disruption in Kent. Operation Brock queues lorries bound for mainland Europe on the coastbound M20 and uses a contraflow on the London-bound carriageway to enable other traffic to travel in both directions. Under the new arrangements, in addition to the M20 contraflow, lorries can be routed to Manston Airfield and, if needed, the M26 motorway can be closed and used to queue HGVs too. The M20 contraflow was due to be in place from 6am this morning (Monday 25 March) and there will be roadworks on the M20 and M26 over the weekend and into next week as the final preparations and adjustments are made.
You can view the Highways England announcement here. A detailed guide to Operation Brock and its four phases with maps and information in various European languages can be found here. Thank you very much for sharing this information with your drivers and sub-contractors if you are a logistics company, as well as with your transport or logistics companies if you are a shipper. For further information, please contact Heidi Skinner.
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Port of Portsmouth traffic management plans
Portsmouth International Port has published their advice for hauliers in the event of no-deal. This advice can be found here. Advice provided to hauliers contains information about traffic management plans as well as a map of checkpoints. The Port has also started to issue leaflets at the freight gates today. For further information, please contact Becki Kite.
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List of critical goods that can be transported on government-secured freight capacity
The UK Government has secured additional freight capacity to relieve potential pressure on the Dover straits and help ensure that critical goods (those essential for the preservation of human and animal welfare, such as medicines) continue to enter the UK. Contracts have been secured with Brittany Ferries and DFDS to run ferries into and out of Poole, Portsmouth, Plymouth, Immingham and Felixstowe. The use of this freight capacity has been agreed by ministers across government, recognising that it supports contingency planning across a number of departments. The government is engaging directly with companies that supply critical goods about the process to purchase tickets on these additional crossings (i.e. directly with shippers). Only suppliers identified by their sponsor departments will be able to purchase tickets. A list of critical goods eligible for this extra ferry capacity is available here. For further information, please contact Pauline Bastidon.
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Importing and exporting endangered species and CITES items
Importers and exporters of products covered by the CITES convention on endangered species should be aware that UK-EU movements will be subject to new requirements in a no-deal scenario. Hauliers who carry such items will be required to produce certain documents at the border (see below). CITES doesn’t only cover exotic pets or rare plant species but also a wide range of products that may contain endangered plant or animal species, e.g. fur, leather, certain cosmetics, caviar, eels, jewellery (corals), dietary supplements, medicines, wooden musical instruments (depending on wood type), blood samples for scientific purposes, etc.
Importers and exporters need to research the specific requirements that apply to their products and request the appropriate import/export permits from the UK Animal and Plant Health Agency (APHA) and/or from the CITES authorities of the country of origin/destination.
CITES items can only use designated points of entry and exit for trade with the EU. If a CITES item is also subject to sanitary and phytosanitary checks regardless of the species being CITES-listed the point of entry not only needs to be CITES-designated it also needs to be a BIP (products of animal origin) or a DPE (plant-based products).
When making a commercial import of CITES goods via roll-on roll-off (ro-ro) services at Harwich, Felixstowe or Portsmouth, the haulier must physically present a CITES export permit that has been endorsed by the authorities of the country of departure, a UK CITES import permit, a packing list or invoice for the goods to Border Force and have a Customs Declaration Service (CDS) Master Reference Number or a CHIEF entry number available.
While you have until the end of the next working day to arrive the goods on CHIEF or CDS, arriving the goods at the time of importation may clear the relating entry on these systems more quickly.
It is imperative that drivers physically present their CITES permits to Border Force for wet stamping upon importation in order for the goods to be legally traded in the UK, and have the relating CDS MRN or CHIEF entry number available.
When exporting CITES goods via ro-ro services at Harwich, Felixstowe or Portsmouth, you must get your CITES export permit stamped by Border Force prior to departure to ensure a legal export. Official guidance is available here. For further information, please contact Sarah Laouadi.
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Road haulage market access
The EU contingency measure on road haulage we reported about in previous editions of this Digest was formally adopted on 19 March 2019. It will become applicable in a no-deal scenario on the day following Brexit day. UK hauliers will be allowed to do bilateral transport operations between the UK and one EU country (without cabotage) without ECMT permits until the end of 2019. There will be some cabotage rights and cross-trade rights but these will be limited and phased out in the course of this year. Therefore some transport operations will still require ECMT permits. Transit through the EU territory to reach a third country (such as Switzerland) will require an ECMT permit.
The following table describes the situations in which UK hauliers will need an ECMT permit and those that will be covered by the EU contingency measure. The contingency measure will only apply until 31 December 2019 regardless of the date on which the UK leave the EU without a deal.
For further information, please contact Sarah Laouadi.
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Insurance green card
FTA has been advising road haulage companies active in the EU to require a green card from their motor insurance provider. The Department for Transport is now advising hauliers to procure a separate insurance green card for trailers as some EU countries might require it on top of towing vehicle green card. The latest DfT guidance note on this is available here. For further information, please contact Ian Gallagher.
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EU no-deal contingency on rail connectivity
The EU contingency measure on rail connectivity was formally adopted by Member States on 22 March 2019, thus completing the adoption process. As we reported in the last edition of this Digest, the measure ensures continued validity of rail infrastructure manager safety authorisations, railway undertakings’ licences and safety certificates and train driver licences for nine month from Brexit day on cross-border sections, i.e. between Calais Frethun station (France) and the UK and between Dundalk (Ireland) and the UK. It means that rail services through the Channel Tunnel will continue after Brexit for both the Euroshuttle service for HGVs and for rail freight. After this nine month period, the effects of this measure should be replicated in a bilateral agreement with France to preserve rail connectivity. The Department for Transport confirmed that talks between the two Governments are nearing completion. Both road and rail shippers will need to comply with all relevant EU and UK customs and other trade procedures when using the Channel Tunnel. For further information, please contact Alex Veitch.
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EU no-deal contingency on aviation
On 19 March 2019, the aviation contingency measure was formally adopted by Member States. It will allow UK-licensed air carriers to operate flights between the UK and the EU until 30 March 2020. The capacity capping that was originally proposed (whereby capacity offered to UK airlines and operators would have been frozen to the level of 2018) has been removed. Flexibilities such as code-sharing will continue to be allowed. There will be a short grace period for 'fifth freedom' rights until the end of August 2019; UK licensed carriers will be allowed to operate flights between two countries other than the UK.
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Forthcoming events
- 25 March 2019: DfT Road haulage and Brexit roundtable (restricted, with FTA)
- 5 April 2019: British Shippers Council monthly call – Brexit special
- 9 April 2019: Border Delivery Group Logistics Steering Group meeting (restricted, with FTA)
- 25 April 2019, 10.00-12.30: FTA Brexit webinar (TBC)
- 28 March 2019: FTA Brexit Web Briefing for Logistics Managers - information and registration
- 9 May 2019: FTA UK Council, London
- 4 July 2019: FTA UK Council, London
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Freight Transport Association Limited (a private limited company). Registered Office: Hermes House, St John's Road, Tunbridge Wells, Kent TN4 9UZ. Registered in England Number 391957.
Telephone: (01892) 526171 Fax: (01892) 534989
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