Preparedness to “hard” Brexit Border controls
4 4 October 2019 2019
Preparedness to hard Brexit Border controls 4 4 October 2019 2019 - - PowerPoint PPT Presentation
Preparedness to hard Brexit Border controls 4 4 October 2019 2019 Brexit preparedness notices https: / / ec.europa.eu/ info/ brexit/ brexit-preparedness/ preparedness-notices_en# sante Sanitary and Phytosanitary (SPS) rules Border
Preparedness to “hard” Brexit Border controls
4 4 October 2019 2019
Brexit preparedness notices
https: / / ec.europa.eu/ info/ brexit/ brexit-preparedness/ preparedness-notices_en# sante
con
at EU U bor
and external tran ansit from
UK
EU UK EU TC
external transit import BI P BI P BI PSanitary and Phytosanitary (SPS) rules Border controls
con
at EU U bor
ansit t throu
UK
EU UK EU TC
BI PSanitary and Phytosanitary (SPS) rules Border controls
BI Pcon
at UK UK bor
and transit to
UK
EU UK EU TC
external transit export BI P BI PSanitary and Phytosanitary (SPS) rules Border controls
BI PEU UK EU
Sanitary and Phytosanitary (SPS) rules Applications of BIP
Zeebrugge BE Esbjerg DK Caen FR Cherbourg FR Dunkerque FR Calais FR Dieppe FR Saint-Malo FR Roscoff FR Rotterdam NL Dublin I E Rosslare I EBrexit in case of no deal
European Commission, DG Taxud
October 2019 Germán de Melo Ponce
1
Table of contents
Entry of goods in the EU Temporary storage Duty relief Transit and other Special Procedures Exit of goods from the EU
2
3
EORI
EU27 as of the date of withdrawal
must have a valid EORI number as of the date of withdrawal
EORI number in specific cases
4
decisions
5
Customs decisions
longer valid in the EU27 as of the date of withdrawal
elements’ must be amended as of the date of withdrawal
authorisations supplementary declaration covering UK only for period the day before withdrawal
replaced by guarantor established in the EU27 after the date of withdrawal
6
procedures
7
Customs procedures: entry of goods in EU
withdrawal date are not valid after this date need to lodge another ENS for subsequent ports
and a diversion takes place to the EU27 as of that date, a new ENS must be lodged the first ENS will be deemed not having been lodged
8
Customs procedures: temporary storage
in temporary storage in the UK before withdrawal date must follow the customs formalities applicable to non-Union goods if they are brought to the EU27 after this date
granted by UK need to regularise before the date of withdrawal
granted by EU27 deemed to have been re-exported
9
Customs procedures: duty relief
may be considered returned goods if re-imported in the EU27 after this date
withdrawal date will be considered as ‘exported’ for the purposes established for returned goods
referred to in Article 203(2) UCC
for duty relief including period before Brexit
10
Customs procedures: transit
the date of withdrawal, so UK may use common transit and have access to NCTS
the withdrawal date, an EXS has to be lodged, unless security data are already on transit declaration or
guarantee certificates < 1 year after withdrawal
11
Customs procedures: transit (TIR)
the withdrawal date, an EXS has to be lodged and office
the withdrawal date, the office of destination in UK will have to provide alternative proof of arrival to EU27
the withdrawal date, normal formalities of TIR from 3rd countries will apply (ENS and notification of arrival)
12
Customs procedures: other special procedures
for special procedures
than transit granted by the UK or with a UK EORI number will not be valid as of the date of withdrawal
for special procedures
than transit granted by the EU27 with a ‘UK element’ will have to be amended
to discharge special procedure for goods covered by a UK authorisation before the date of withdrawal
13
Customs procedures: other special procedures
Convention
temporary admission brought from UK to the EU27 or vice-versa
UK and re-exported from EU27 or vice-versa
export for goods temporarily exported from EU27 to a third country via the UK before withdrawal
14
Customs procedures: export
be valid if goods arrive to the EU27 after withdrawal
If goods do not arrive to UK before withdrawal office of
export is replaced by office of exit
If goods arrive to UK before withdrawal office of export
closes movement by means of an alternative proof
15
Customs procedures: export
If goods do not arrive to EU27 before withdrawal same
procedure as non-Union goods coming from 3rd country
If goods arrive to EU27 before withdrawal office of export in
UK closes movement by means of an alternative proof and
16
conclusions
17
Some general conclusions
from day 1
must fulfil the requirements established on both sides
18
Thank you for your attention: any questions?
19
Brexit – preparedness
W elcom e and I ntroduction
2
SANTE, TAXUD
AGRI preparedness
Notices
4
Markets
AGRI -FOOD TRADE W I TH THE UK
50 100 150 Total United States China Switzerland Japan Russia Norway United Kingdom
EU-28 agri-food exports compared to EU-27 agri-food exports to the UK (billion €, 2018) 6
20% 18% 9% 12% 18% 23%
EU-27 Agri Food exports to the UK (% of value, 2016-18)
Fresh and processed fruit and vegetables Meat products Dairy products Wine, spirits and beverages Food preparations Others
AGRI -FOOD TRADE W I TH THE UK
AGRI -FOOD TRADE W I TH THE UK
500 1000 1500 2000 2500 3000 3500
Trade between the EU27 and the UK (2016-18, million €)
Export Import
Share of UK in EU-2 7 exports ( 2 0 1 6 -1 8 )
9
0% 20% 40% 60% 80% 100%
Share of EU-2 7 exports to UK on total production ( 2 0 1 6 -1 8 )
10
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
AGRI -FOOD TRADE W I TH THE UK
11
NL 14.3% IE 10.3% FR 9.8% DE 9.4% ES 6.8% IT 6.2% BE 5.4% PL 4.1% Others EU 7.3% Rest of the world 26.4%
UK Agri food imports (2018, % of total value)
NL IE FR DE ES IT BE PL Others EU Rest of the world
62% 82% 98% 71% 90% 67% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fresh and processed fruit and vegetables Meat products Dairy products Wine, spirits and beverages Food preparations Others
Share of UK agri-food imports originating from the EU-27 (% of value, 2018)
AGRI -FOOD TRADE W I TH THE UK
Average 7 4 %
0% 10% 20% 30% 40%
Share of Agri Food exports directed to UK (% of value, average 2015-17)
AGRI -FOOD TRADE W I TH THE UK
What may influence EU27-UK trade
UK Tariffs and Quotas Regulatory requirem ents ( custom s, SPS, etc.) Logistical bottlenecks ( tunnel, harbours, border inspection points, trucks, ferries) EU agri-food industry com petitiveness Organised and interdependent supply chains,including private certification schem es, established brand nam es, etc Food price and food availability for UK consum ers / UK household incom e / £ exchange rate
Provisional UK Tariff Schedule
Beef, lamb, pork and poultry, cheese, butter and white sugar; Goods incl. bananas and raw cane sugar in order to enable preferential access to developing countries;
food etc.
to Northern Ireland (from all origins)
Examples of MFN duties and proposed UK schedule*
MFN Provisional UK tariff for 12 months* *
~ 69% ~ 36% TRQ: 230kt
~ 25% ~ 4%
~ 34% ~ 21% TRQ: 420kt
~ 26% ~ 4%
~ 79% ~ 30% TRQ: 260kt
~ 7% 0%
~ 10% 0% AGRI -FOOD TRADE W I TH THE UK
*estimated - average applied to current EU27 exports to UK (without TRQ) ** as announced in March 2019 (possibly under review)
Monthly trade flow s w ith UK
17
1.00 1.05 1.10 1.15 1.20 1.25 1.30 1.35 1.40 1.45 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5I n Focus – developm ent of EU2 7 export volum e to UK
18
Jan 2019 vs Jan 2016-18 Feb 2019 vs Feb 2016-18 Mar 2019 vs Mar 2016-18 April 2019 vs April 2016-18 May 2019 vs May 2016-18 Jun 2019 vs Jun 2016-18
Agrifood total 11% 6% 2%
Bovine meat 8% 3%
Pork meat 2% 5% 4%
Poultry meat 3% 14% 18% 11% 13%
Butter 25% 20% 10% 8%
Cheese 10% 28% 18%
Sugar 20% 61% 24%
Vegetables 10%
1%
Wine, vermouth,… 15% 21% 9%
Beer 16% 11% 11%
Cigarettes & cigars 100% 65% 27%
Traditional autum n trade flow s
19 Exports in value Novem ber-Decem ber vs rest of year ( 3 y avg) Total Agrifood + 6% Processed food + 12% Butter + 25% Cheese + 11% Live animals + 108% Bovine meat + 11% Poultry meat + 15% Citrus fruit + 65% Wine, vermouth, cidre + 30% Pasta, pastry, biscuits, bread + 12% Spirits and liquer + 29%
STATE AI D
Carbery Food Ingredients Ltd
sale of Cheddar to UK market
Mozzarella production – higher added value
service providers
Future Growth Loan Scheme
post-Brexit environment
size – max 4,5%)
Copa and Cogeca members Brexit preparedness activities
Stock taking of DG AGRI Civil Dialogue Groups (04/10/2019) François GUERIN (Senior Policy Advisor) BX(19)8598:1
European farmers and agri-cooperatives to be hit hard by a no-deal Brexit
billion euros while the UK exports to the EU reached €17 billion euros
Brexit, the magnitude of the impact increasing with economic proximity to the UK
export turnover, are: fruit and vegetables, beefmeat, pigmeat, dairy and wine. However, other agricultural sectors (e.g. flowers, ornamental plants and rice) will also be effected subsequently
Major concerns for agri-food importers and exporters
considerable amount of time to journeys between EU27 and UK
destinations, spoiled goods, which would prove to be massively disruptive and costly for agri-food businesses
transportation »: multiple different products are in one lorry for multiple destinations
Major concerns for agri-food importers and exporters
not export to third countries, meaning they do not have expertise in customs procedures
Operator) will do little to alleviate this
and rely on the UK commitment that controls will be introduced
Preparedness measures being undertaken
suppliers and customers
number (Economic Operator Registration and Identification)
(landbridge), examine if direct routes to continental Europe make more sense for their business
Preparedness measures being undertaken
complete declarations
haulier are in possession of the required documents (it is estimated that up to half of them won’t be ready)
Preparedness measures being undertaken
Brexit has accelerated the process of diversifying their export markets Takes a considerable amount of time for businesses to access new markets and for brands to establish themselves and generate value
Lot of investments made by operators in new facilities to enable them to also diversify their product portfolios Ex. some processors aim to move part of their production from cheddar to more international cheese types
Preparedness measures being undertaken
UK will remain a key market for European farmers and agri- cooperatives (due to historical trading ties and established distribution channels), despite potential future trade difficulties and higher costs Merger of some cooperatives in Ireland in order to allow greater flexibility and supply Investments have been made in storage facilities and distribution capacity in the UK
Maintaing UK market access and value
relationship, while preserving the value of the EU market
certifications
customs and border requirements
Copa-Cogeca: Promoting and developing the European Model of Agriculture
www.copa-cogeca.eu
Thank you for your attention!
Brexit: FoodDrinkEurope preparednes activities
4 October 2019
1
Membership
25 National Federations 27 EU Sector Associations 22 Liaison Companies
EU27-UK trade of food and drink products
The UK is the largest trading partner of the EU27
Treat the food and drink as a priority sector (potential huge impact on the food supply chain)
Need for additional contingency measures to be adopted
implications of a no-deal Brexit and the need for certainity
Main FoodDrinkEurope activities
recently with DEFRA/HMRC
FoodDrinkEurope members activities
Members
Preparedness activities
measures
Exchange with CLECAT – prepardness of customs agents and freight forwarders Exchange with ESPO- European Sea Ports Organisations DEFRA on imports requirements/ organic/ temporary tariff schedule and GIs Protection HMRC
Trade perspective
Prepardness
Risks
Uncertainty
DG AGRI, Brussels, 4th October 2019 UECBV
BREXIT Livestock And Meat Sector Preparedness Karsten Maier UECBV Secretary General DG AGRI, Brussels, 4th October 2019
European Livestock and Meat Trades Union – UECBV
DG AGRI, Brussels, 4th October 2019 UECBV
Today, UECBV represents 53 associations out of :
EFTA countries (example Swiss, Norway)
associated to the UECBV (Japan, Russia and Ukraine) 3 European Associations Livestock markets (AEMB) Casings industry (ENSCA) Ship suppliers (OCEAN) In total, some 20,000 firms of all sizes and over 230,000 jobs are represented within the UECBV through its national member federations.
European Livestock and Meat Trades Union – UECBV
DG AGRI, Brussels, 4th October 2019 UECBV
UECBV is the European Livestock and Meat Trades Union. It represents the national federations of the: livestock traders livestock markets meat industry: slaughterhouses, cutting and preparation plants wholesale meat traders international meat traders UECBV focuses on cattle, beef / horses, horsemeat / sheep and goats, sheep and goat meat / pigs, pork.
WHAT IS UECBV?
DG AGRI, Brussels, 4th October 2019 UECBV
1. MARKET CONSEQUENCES 2. LEVEL OF PREPAREDNESS 3. OPENED QUESTIONS
General Imports Exports Specific for IE
4. CONCLUSION
TABLE OF CONTENT
DG AGRI, Brussels, 4th October 2019 UECBV
European Livestock and Meat Trades Union – UECBV The European Meat Industry in a hard Brexit scenario
(shown MMO 3/2018)
DG AGRI, Brussels, 4th October 2019 UECBV
European Livestock and Meat Trades Union – UECBV A hard Brexit would devastate the European Meat Industry
DG AGRI, Brussels, 4th October 2019 UECBV
European Livestock and Meat Trades Union – UECBV Trade between the UK and the EU would collapse…
DG AGRI, Brussels, 4th October 2019 UECBV
European Livestock and Meat Trades Union – UECBV …with a major impact
prices on the EU market
DG AGRI, Brussels, 4th October 2019 UECBV
European Livestock and Meat Trades Union – UECBV This collapse in trade and associated price effect would be felt across Europe
almost €2.4 billion
fall by €2.3 billion
32,000
than the Russian food ban crisis
DG AGRI, Brussels, 4th October 2019 UECBV
European Livestock and Meat Trades Union – UECBV Other factors would further decrease trade
different ways
increase by 36%, manufacturing beef price will increase by 100%
sensitive to increased customs delays
undermined
cutting this link will cause extra cost to intra-EU trade
DG AGRI, Brussels, 4th October 2019 UECBV
European Livestock and Meat Trades Union – UECBV Solutions and mitigating measures
Key Priorities:
1. Transitional period 2. Future trade partnership 3. Regulatory convergence (equivalence agreement) Market support measures:
DG AGRI, Brussels, 4th October 2019 UECBV
Market supports will be essential The objective should be to maintain EU27 beef (pork) exports to
the UK – we should do everything possible to maintain our position in the UK
Measures must be introduced quickly, rather than waiting for
damage to occur
Traditional measures, such as intervention/APS, do not help with
the main objective of keeping EU27 beef going to UK customers (so that they are not forced to go for alternative supplies)
The challenge for the support measure(s) is to offset the impact of
the UK tariff and additional trade costs
Market consequences – No dead Outcome
DG AGRI, Brussels, 4th October 2019 UECBV
Flexibility on State Aid rules has still not been addressed by the
Commission in the context of MSs ability to react to the impacts of Brexit.
What is the state of play on State Aid flexibility? MSs will have to be
able to support investment in competitiveness and market diversification of companies worst affected by Brexit.
Market access to non-EU countries is still being worked by all of us,
but it is a very slow process.
Market consequences
DG AGRI, Brussels, 4th October 2019 UECBV
This level depends on the number of operators who are trading today with
the UK and have no experience of trade with third countries.
The level of awareness looks quite high in some countries like BE, DE, IE
and NL. If there are companies only active in the internal market today, they are very few. The big majority knows what trading with a third country means.
This is much less difficult to assess in bigger MS, like FR. Nevertheless,
in FR, the issue is more for imports. The questioned companies stated they are ready between 30 and 75%.
Some of the uncertainties in the preparedness (including for NL and BE)
are:
UK government assessment is that half of the UK traders will not be prepared.
Level of preparedness
DG AGRI, Brussels, 4th October 2019 UECBV National “Smart system” not exactly the same by MS =>
compatibility?
List of establishments both in the EU and the UK: are they
ready? What about the inspections? How long the today lists will be valid? What will happen if there is already a divergence in the legislation in December? Ex: OCR, MSM
OPEN Questions – General
DG AGRI, Brussels, 4th October 2019 UECBV
The health certificate to export beef to the EU drafted by the UK is based on the
EU model (R. EC/206/2010 Annex 2, Part 2). Is it possible to use this certificate to export beef to the EU, where the origin of that beef is the EU itself. i.e. Irish beef imported to NI, de-boned and re-exported to the Republic of Ireland?
Imports of minced meat, (meat products and preparations) from the UK: Will it
still be possible, because in the health attestation it says it needs to be frozen, so there will be no option to export chilled minced meat from the UK to the EU?
Lack of BIPs approved in FR for live animals. It looks it is a minor issue, but
maybe an issue in case of specialised operators.
Delivery duty paid, will this still be possible (question of customs procedure)? In particular, will the UK exporter be able to export to the EU at the same time
with being the importer in practical terms and being able to do the whole process and just deliver the products to the factory as they are doing now.
Compatibility with OCR – IMSOC?
OPEN Questions: IMPORTS – the UK to the EU
DG AGRI, Brussels, 4th October 2019 UECBV TRQ: UK proposed tariffs and TRQs. They are severe
proposed tariffs still represent a major impediment to trade.
In case one operator exports from a port of another MS,
like in FR, does he need to be registered as well in this MS (customs, VAT, smart system)?
Lack of clarity for the export side
EXPORTS – the EU to the UK
DG AGRI, Brussels, 4th October 2019 UECBV
Landbridge concerns remain for trade between Ireland and EU-
26 and vice versa. Will the goods using landbridge be submitted for pre-notification?
Transit rules/facilitation are important + also direct shipping
routes.
At the moment, there is very little capacity on direct shipping routes
between Ireland and the Continent.
Shipping lines say they will respond to demand when it arises (if as
expected, major delays occur on the Dover-Calais route), but the problem is that it will take weeks for the new direct routes to emerge and, in the meantime, there will be massive disruption to deliveries and trade between Ireland and the Continent (in both directions).
Landbridge issue
DG AGRI, Brussels, 4th October 2019 UECBV
Still many uncertainties on procedure and market consequences Legal divergence expected soon with the entry into application of
new EU legislation (such as OCR, AHL)
Necessity global approach [Sanitary issues (food safety & AH),
customs, VAT, market aspects] – “One desk”
CONCLUSION
DG AGRI, Brussels, 4th October 2019 UECBV
www.uecbv.eu
Thank you very much for your attention!