BREXIT RULES JANUARY 2021
This short article will cover all we need to know about the rules that came in place on to place on January 1st, 2021. In this article we will look at two areas of the new Brexit rules:
The new Brexit rules pertaining to trade in goods.
The new Brexit rules pertaining to trade in services.
Trade In Goods
Positive Outcomes From The New Brexit Rules 2021 for Trade In Goods
There will be no quotes or tariffs on goods, provided the origin rule applies. (Essentially, your good has to have been made in the EU or UK and not a third-party country)
You can self-certify the origin of the good sold and enjoy "full cumulation" which essentially means, where you process the good also counts towards the origin. This makes it easier to comply with the requirements to obtain zero-tariffs.
Trusted traders programmes have a mutual recognition. These can also be called Authorised Economic Operators.
A common reference definition of international standards has been agreed to upon
Wine, organics, automotive, pharmaceuticals and chemicals have special facilitation agreements.
Negative Outcomes From The New Brexit Rules 2021 for Trade In Goods
UK goods no longer benefit from free movement of goods, leading to more red tape for businesses and adjustments in EU-UK supply chains
Customs formalities and checks on UK goods entering the EU, with more border delays
VAT and, where applicable, excise duties (e.g. on alcoholic beverages, tobacco products, etc.) due upon importation (including for online purchases)
UK producers wishing to cater to both EU and UK markets must meet both sets of standards and regulations and fulfil all applicable compliance checks by EU bodies (no equivalence of conformity assessment)
UK food exports must have valid health certificates, and (phyto-)sanitary bored checks will be carried out systematically
Trade In Services
Positive Outcomes From The New Brexit Rules 2021 for Trade In Services
Service suppliers or investors from the EU are treated no less favourably than UK operators in the UK, and vice-versa
Facilitations for short-term business trips and temporary secondments of highly-skilled employees
Removal of unjustified barriers to digital trade, including prohibition of data localisation requirements, while respecting data protection rules
UK public procurement markets are open to EU bidders established in the UK, on equal footing, and vice versa, also for small contracts
Negative Outcomes From The New Brexit Rules 2021 for Trade In Services
UK service suppliers no longer benefit from the ‘country-of-origin’ approach or ‘passporting’ concept (e.g. for financial services), which enable automatic access to the entire EU Single Market
No more automatic recognition of professional qualifications: Doctors, nurses, dentists, pharmacists, vets, engineers or architects must have their qualifications recognised in each Member State they wish to practice in
UK operators no longer free to supply audiovisual services in the EU with UK licence
You can find out everything else about how Brexit affects you outside of trade from the government website here.
I am sure you still have some questions! The news rules aren't simple. Book a quick call with one of our experts or email us if you'd like to find out more about how your specific business is affected by the new Brexit rules. Also make sure to claim your 50% off your first month of bookkeeping until February 5th, 2021.