BREXIT NEWS FOR FRIDAY 16TH NOVEMBER 2018

Friday 16th November 2018.

A quiet day in Westminster after the drama of yesterday. PM May selling her plan on LBC at 8am, placating her Brexiter rebels still in the Cabinet, and appointing individuals to the vacated Cabinet seats. More talk of MPs submitting letters of no-confidence in May. Rumours 5 Cabinet Brexiters are holding talks this weekend to discuss trying to change the draft Withdrawal Agreement,especially with regard to the exit mechanism from the Customs Union. There is an excellent podcast below from David Davis MP and Owen Patterson MP at a trade conference in USA. They are saying that if the May Plan goes ahead that the UK will be totally precluded from doing any meaningful global trade deals.

No10 reshuffle Stephen Barclay is appointed Brexit Secretary with the remit to concentrate on domestic preparedness (rather than final stages of EU negotiation) Amber Rudd is work and pensions secretary.

The UK could go back to the negotiating table. If it chooses this path, it must be clear what it is seeking to obtain. Specific assurances may be possible. Deciding to rethink the whole backstop is not credible:

So what’s the plan for remaining Eurosceptics in Cabinet? Hearing Leadsom, Gove, Fox, Mordaunt & Grayling meeting early next week to unite around several coherent ‘asks’ Leadsom also reaching out to Pizza Club – Truss, Hunt, Cox and Javid. Focus on backstop exit mechanism.

The aim is to change the wording of the backstop exit mechanism to stop it binding UK in customs union indefinitely. There’s genuine optimism it can be done ahead of Brussels summit on Nov 25. If it can’t then they’re going to have difficult decision to make on Commons vote.

Call it good podcast planning or just plain luck, but new Brexit Secretary spoke to Chief Political Correspondent on a few months ago, where he told us it’s a ‘myth’ Brexit will damage the NHS. Take a listen…

BREXIT NEWS FOR THURSDAY 15TH NOVEMBER 2018

Thursday. 15th November 2018.

The day the Maybot battled for survival. PM May answered House of Commons questions for almost 3 hours this morning , after news of the resignation of 2 Cabinet Ministers,including her Brexit Secretary, all over her Brexit plans. Much criticism of May amid realisation that she had few supporters for her plans which seem destined to fail. A number of MPs wrote letters asking for a vote of no confidence in her leadership. As yet no news as to whether the 48 minimum number of letters have been sent. Late afternoon May held a Press Conference where she reiterated her wishes to push through her plans, despite the current overwhelming oppostion. Big feeling in the UK is that  the UK has been” stitched up” by Brussels, and that May has given way on many key red lines, despite her continued proclamation that no red lines have been breached. Febrile times in Westminster which will certainly continue for the next few days, as MPs wait and see whether there will be a vote of no confidence. No news yet as to the position of Michael Gove. In total 7 Ministers have resigned today.

For what it’s worth, I can’t find a Tory MP who thinks the 48 no-confidence letters aren’t already with the 1922’s Brady. And surprising people are telling me they will vote against her, if (when?) it comes to it.

Here is Gove logic tree. ’s condition for taking Brexit secretary job is he has to be allowed to renegotiate Withdrawal Agreement. won’t let him do that. So, as a logical chap, Gove knows he cannot stay in cabinet, because that would associate him with…

a policy he feels to be utterly wrongheaded and happens to be the most important policy affecting future of this country for generations. I would be staggered if he didn’t quit.

Downing Street thinks has reached a settled position – that she will not resign. Well there is always one.

Want to read the inside story of an extraordinary day which has seen four ministers quit, left three on the brink and ended with Michael Gove holding the PM’s future in his hands?             Telegraph

Daily Mail

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Sky Sources: Michael Gove has been offered the job of Brexit Secretary but says his price for doing it is to re-negotiate the agreement

This morning I sat through the Prime Minister’s statement on the Brexit proposal. After two hours of listening, I’m afraid nothing convinced me that this is anything other than a bad deal. I cannot support, and will not vote, for this deal. It should be withdrawn immediately.

Wow. Article 14(4) of the backstop is… something. Seems to say: ECJ and European Commission to have jurisdiction in the UK in respect of the EU customs code, technical regulations, VAT and excise, agriculture and the environment, single electricity market and state aid.

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It’s striking how emboldened Eurosceptic Cabinet ministers are today. They feel they hold the cards: * Gove is asking to renegotiate PM’s Brexit deal as his price for becoming Brexit Secretary * Penny Mordaunt in No 10 demanding free vote on deal again.

Absolutely no reason Super Canada cannot apply to the whole UK. Customs experts Lars Karlsson & Hans Massen have both said in the last 2 days that a frictionless NI-ROI border without infrastructure is possible within the transition period

We knew this 15 months ago when we published the Max Fac technical paper. and I met Lars Karlsson too. Naturally wasn’t interested in engaging.

I have lost confidence in the Brexit policy of the Prime Minister and have therefore written to the Chairman of the 1922 Committee asking for a vote to take place over her Leadership.

My letter of resignation sent to PM stepping down as Vice Chairman & PM Trade Envoy to Pakistan. 1. Cannot support Draft EU Withdrawal Agreement. 2. Very disappointed by lack of leadership shown by UK Gov to do morally right thing in Asia Bibi Case.

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If they truly care about democracy and the future of this country, Theresa May’s MPs must reject this deal while there is still time, writes

Telegraph

May’s press conference made clear that she is now, essentially, in a game of chicken with the Commons. She’s calculating that ultimately enough MPs will blink and vote for her deal to get it through. It is a very big gamble

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WATCH | warns May that he is submitting his letter of No Confidence and demolishes her Withdrawal Agreement. “What she says and what she does no longer match!” https://twitter.com/i/status/1063032026138361856

There have been calls to now “embrace no deal” Here’s what that means (according to Govts technical notices) – 50+ new systems and process – 50+ pieces of new legislation – 25+ “side deals” with EU – 15 new or expanded public bodies 4 1/2 months.  

: 6 sites to help you keep on top of the draft Withdrawal Agreement

 

The Prime Minister is due to meet the Cabinet today to discuss plans. For a ‘deal’ to be introduced to it first needs to be approved by . What might happen next in a ‘deal’ or a ‘no deal’ scenario?

🚨🚨🚨🚨 I know it’s not the most exciting thing happening any more… But we have gone through the Draft Withdrawal Agreement and tried to summarise what it says and what that means for the UK Gov You should read it because: a) It took ages b) its important   

Source close to Michael Gove confirms he has rejected brexit Secretary job As expected, but now all eyes on whether he quits government altogether since he clearly can’t really support her deal.

BREXIT NEWS FOR WEDNESDAY 14TH NOVEMBER 2018

14th November 2018.” Brexit est arrive”.

A hard day at the office for PM May. After enduring difficult questions at PMQs, in the afternoon there was a virtual 5 hour Cabinet Meeting. she emerged to announce her Brexit deal had been approved. But rumours are now circulating that 10 or 11 Ministers had reservations on various aspects of the deal. The result is that , if enacted, the UK will be in a permanent customs union with the EU and will be unable to do the global trade deals, certainly in goods, which Liam Fox has been advocating for the last two years. PM May says that the UK will take back control of its laws, but a brief search of the draft Withdrawal Agreement published tonight (now on this website) shows that the European Court of Justice will have the overriding say. This could mean that the UK could NEVER break free from the EU.

There is currently major opposition to these proposals, which look as if they will not receive the support of Parliament. Many are asking just what was the point of Brexit. Many are asking for a secound vote.

Cabinet did reach a collective position, but certainly not unanimous. I’m told 9 ministers spoke against the agreement – Fox, Hunt, Williamson, Penny Mordaunt, Javid, Leadsom, Evans, Mordaunt and Grayling.

Raab didn’t speak against it but is said to have had a ‘downer’ on it, Mundell also described as a ‘waverer’ – there was not a final vote, but numbers were 18-11 depending how you categorise the waverers, according to one minister.

Straight after the cabinet meeting Philip Hammond, chancellor and Greg Clark, business secretary held a conference call briefing with up to 200 business figures. Hammond thanked the executives for their help in publicising what he called the “horrific” impact of a no deal Brexit

Other cabinet sources say those who spoke against the deal were not making arguments for alternative deals or even criticising the content – but expressing reservations about whether it can get through the House.

Esther McVey is said to have twice called for a vote but it was refused – she is udnerstood to have been the strongest and most explicit opponent of the deal – lots of chatter about her resigning.

Still unclear what Raab is going to do…. he is the Brexit Secretary after all but it sounds like he wasn’t exactly enthusiastic in the meeting – chatter about his position too – let’s see – conflicting stuff out there right now.

We asked Rees Mogg if he’ll move against her before she has a chance to take this to Parliament? ‘the office of Prime Minister is a leasehold not a freehold’

Break: Theresa May confirms Cabinet has agreed her Brexit divorce deal with the EU after “a long detailed and impassioned debate”.

PM says choice before MPs is her deal, or no deal and risk “no Brexit at all”. Adds: “I know there will be difficult days ahead”. She ain’t wrong there.

No Cabinet minister has resigned rather than back May’s deal, No10 sources say. At least, not yet.

Big Brexit news: it appears Chequers has been chucked. A senior Govt source has refused to say PM is still pushing for an FCA or Common Rulebook in future trade deal: “We may get frictionless trade through another way”.

Shorter Irish Backstop GB-NI remain in “single customs territory, but NI is treated ‘as if’ in the EU, following Union Customs Code and SM rules. This will persist “unless and until” (Article 1) it is superseded by arrangement that obviates need.

BUT this is balanced this with an assertion that the arrangements are “intended to apply only temporarily” and – in Article 2(1) – a commitment that that both sides “shall use their best endeavours” to reach that “subsequent agreement”.

The protocol then sets out three options to be considered in July 2020 as the end of the transition approaches – either conclude a deal, “extend” the transition period (with payments to be agreed) or trigger the Irish backstop noted above.

The entire arrangement is managed by “a joint consultative working group” and, under Article 20, the UK can “notify” the EU if it believes the backstop is no longer necessary, but cannot unilaterally pull out of the deal..

“Within 6 months of such a notification, the Joint Cmme shall meet at ministerial level to consider the notification,” but the backstop shall cease to apply only if the EU and UK “decide jointly…the Protocol shall cease to apply, in whole or in part.

So chapeau to UK negotiators who always said they’d get EU to agree all-UK backstop. But there still isn’t really an exit mechanism, only a ‘best endeavour’ clause and – the UK will argue – fairly light level playing field requirements that motivate EU to seek exit.

To be clear DUP won’t like it. ERG and Brexiteers won’t like it But none have come up with better ideas – as I write here Let’s see what the morrow holds…

One big macro deal thought. The never-ending backstop locks the U.K. into a customs union. But it also takes away the crash out to WTO/MFN world. Can’t happen. That’s a huge shift if this deal goes though. And a huge loss of leverage on EU side.

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More joy for Brexiteers. Article 4: provisions of EU law in the withdrawal agreement will “produce the same legal effects” in the UK as in member states. This means supremacy over domestic law.. 

“Long and impassioned debate” by cabinet. “Collective position of cabinet” to agree draft Withdrawal Agreement and Outline Political Declaration . There were dissenters! “Difficult days ahead” admits

. seeing DUP leader at 20.30. As if she hasn’t had enough criticism of her Brexit plan today from those allegedly on the same side as her!

Cabinet source: “only one cabinet minister involved in Leave campaign spoke in favour of the prime minister’s deal. That was Michael Gove”. Extraordinarily divided cabinet on this Brexit plan.

show guest ⁦⁩ tells Brexiter colleagues of ERG why he will vote against PM’s Brexit plan. Hear him explain why at 10.45 tonight  

The UK’s status as a non-voting member of EU in transition can be extended beyond 31 Dec 2020 to “31 December 20XX”. I am quoting from the Withdrawal Agreement. I thought the whole point was EVERYTHING agreed. Apparently not.

The paragraph that all “true” Brexiters hate – on how exit from the customs union backstop can only be agreed “jointly” by UK and EU. 

Tory Brexiters become angrier and angrier as they wade through 585 pages of the Withdrawal Agreement. “This is a worse capitulation than we feared” said one. They tell me there will be enough letters.

slightly amazed we have conceded this. 

This is what we have to work with. 

European Commission have published a fact sheet on the backstop. Spells out what checks will need to take place on trade between Britain and Northern Ireland. 

Lots of drama in Cabinet as they discussed what one member called the ‘ugly sister’ deal. More on soon, including how Hunt and Raab urged May to go back and get more from Brussels & 2 ministers said they wouldn’t vote for No Deal.

Am told Esther McVey’s push for a vote went on for several minutes. Cabinet colleagues think she is almost sure to go.

Thing that would worry me most if I was Number 10 is that both Hunt and Raab urged May to go back to Brussels and get more.

Sounds like a classic Geoffrey Cox contribution at Cabinet today.

In another sign of how this is a world turned upside down, it was David Lidington who made the argument for getting out now and fixing Brexit later. 

Spectator.

CABINET: Penny repeated plea for free vote, and colleagues think Esther McVey may be “on the brink”. Pension Secretary demanded a minuted vote of who was against the deal. Got “very emotional” when PM rebuffed her, some sources say “aggressive”. Deets:

The Sun.

We’ve done an account of today’s cabinet meeting. Unlike others we haven’t tweeted the details. The Times..

Tomorrow’s Daily Telegraph is an absolute cracker with an incendiary piece from Nick Timothy, Theresa May’s former chief of staff. ‘This is capitulation. The Commission knows it has won hands down’  The  Telegraph

“Theresa May is finished” Former David Davis aide Stewart Jackson predicts the 48 letters needed to trigger a no confidence vote will be received by next week.

 

BREXIT NEWS FOR TUESDAY 13TH NOVEMBER 2018

Tuesday 13th November 2018

BIG NEWS NEWS NEWS NEWS NEWS

Today PM May has announced a technical deal with the EU. Details not yet available to anyone other than May and her circle, but leaks appearing from RTE in Ireland. Massive opposition and dissatisfaction from Boris Johnson, ERG and the DUP as well as many many others.  A feeling by many people of betrayal and surrender by Theresa May. Cabinet Meeting tomorrow at 2pm.  Is this the beginning of the UK as a vassal state or could it be the start of the end of Theresa May. ? Is this the end of the UK dream to make independent trade deals? Time will tell.

Non-resignation watch: Andrea Leadsom “had a good discussion with the PM and will be at cabinet for further conversations with colleagues tomorrow”

The ConservativeHome website says Raab, Cox, Gove, Fox, Mordaunt and others should resign tomorrow if May persists with the deal.

Conservative Home

This is a red rag for Brexiters and DUP that you would think means the deal is DOA. NI-only backstop to the backstop essentially remains in the deal.

Understand that substance-wise draft Brexit deal has the options reported last Fri.: if by summer 2020 there is no trade deal that avoids a hard border in Northern Ireland, choice is between extending transition or customs union/level playing field/provisions for Northern Ireland.

🚨 Jacob Rees-Mogg: If true this fails to meet the Conservative party’s manifesto and the commitments the PM has made. This is the vassal state, it is a failure of the negotiations, it is a failure to deliver on Brexit, it divides up the UK. Cabinet should not support it.

ft.com

Brexit timeline:

-Technical level agreement reached –

May meets key ministers tonight,

one-on-one -Cabinet

tomorrow -EU27 ambos meet

tomorrow -TBD:

timing of possible May announcement,

EU-UK presser, when to pub docs

If all goes well, sherpas meet 21 Nov.

Brexit euco 25 Nov

The DUP, Boris, ERG preemptive strike against May’s deal shows just how hard it will be for her to get it through the Commons 

Spectator

This is the moment of truth. This is the fork in the road. Do we pursue a future as an independent nation or accept EU domination, imprisonment in the customs union and 2nd class status. Cabinet and all Conservative MPs should stand up, be counted and say no to this capitulation.

Forget all the noise and focus on the big picture. PM is going to recommend daylight robbery: paying £39bn for nothing in return; effectively handcuffing us to the Single Market and chaining us to the Customs Union forever. It is the worst deal in history. Cabinet must reject it.

Boris Johnson tells that PM’s deal is “a chronicle of a death foretold” and “vassal state stuff”, as UK will be staying in large parts of the single market and a customs union. “Am I going to vote against it? The answer is yes”.

This was Dominic Raab on his way out of his briefing with Theresa May about her Brexit deal. Great pic from

“It’s vassal state stuff”- former foreign secretary Boris Johnson says he will vote against draft agreement More:

Senior Tory warns – ‘today the Commons showed the Govt has no majority for the PM’s Brexit policy. If the PM tries to impose BRINO on the parliament she will break both the govt and the party.

There may be provisions relating to Northern Ireland within the text and within annexes to take account of a scenario whereby the UK-wide customs arrangement does not sufficiently avoid a hard border on the island of Ireland, understands

A review mechanism is understood to be part of the text.

It’s understood there is one overall backstop to avoid a hard border on the island of Ireland. It will be in the form of a UK-wide customs arrangement, but will have “deeper” provisions for Northern Ireland on the customs and regulatory side.

Sources saying the original backstop wording “unless and until…”- which crosses DUP and ERG red lines, lives on in the withdrawal text…Irish have been consistently saying it had to.

This is how the EU backstop will work, I have learned. It is the “swimming pool” model – GB in shallow end, Northern Ireland in deep end. will get it through her cabinet. I am pretty sure DUP and Tory Brexiters will hate it.

On the controversial – some would say “life or death” – question of how to keep open the border between Northern Ireland and the Republic of Ireland, the backstop, this is what I am told has been agreed.

It is what’s described in Brussels as the “swimming pool” approach – in other words it has a shallow end and a deep end, when it comes to measures aimed at making sure trade is completely frictionless between NI and the ROI, and fairly frictionless between Great Britain and the EU27.

GB would be in the shallow end, NI in the deep.

Or to be more precise, the whole of the UK would stay in the customs union if a long-term trading relationship between the UK and EU isn’t negotiated and implemented by the end of 2020 – which no one (with the possible exception of the PM) expects it to be.

In fact most EU politicians expect the backstop to be the reality of our trading relationship with the EU for many years.

But – and this is reassuring for May, and perhaps for most in the Cabinet – EU leaders don’t really like this version of the backstop, which is largely May’s preferred model of how to keep open that border in Ireland (in that sense it can be seen as a victory for her in the negotiations).

So there will be an option after the UK leaves the EU next March, during the 21 month transition period, to negotiate some other arrangement that would have the same effect as the backstop (and yes I know this is confusing – but probably what mostly matters is that only the backstop will be legally binding, and that is what will upset many of her MPs).

But in addition to being in the customs union, Northern Ireland would also remain in much of the single market, that part of it pertaining to goods: Northern Ireland alone would be forced to follow all EU directive and laws in relation to goods flowing back and forth between NI and the ROI.

Now that will infuriate the DUP, whose 10 MPs sustain Theresa May and the Conservative Party, because they will see it as doing what they say the PM promised never to do, namely introduce a new border between GB and NI in the middle of the Irish Sea; it would, they fear, increase the danger of a fragmentation of the nations of the UK.

The EU will work hard to reassure Northern Ireland’s unionist politicians that there would not be a border in the Irish Sea in any meaningful sense.

But this aspect of the backstop – the deep end for Northern Ireland – could well undermine the agreement between the DUP and the Conservative Party for the DUP to back all important government legislation, and possibly wreck it, throwing into jeopardy the PM’s ability to govern.

And if the DUP votes with Labour and hardcore Tory Brexiters AND hardcore Tory Remainers against her Brexit deal – which is an anti-May coalition I anticipate – the PM would lose the “meaningful vote” on the deal by a large margin.

The point is that many of May’s Brexiter MPs will hate that GB even in the shallow end will be forced to follow EU rules on competition, the environment, goods standards and employee protection – because the EU is insisting that if the UK derives the benefit of being in the customs union, it has to compete on a “level playing” field. And for as long as the UK is in that customs union, it will be prohibited from doing trade deals with non EU countries.

Many Remainers share the Brexiters’ concern that May’s version of Brexit would see the UK as a relatively powerless taker of EU rules.

As I write, I do not know whether the PM will get this proposal through her Cabinet. But even if she does, I have literally no idea how she would get it through parliament.

For the avoidance of doubt, what’s finally been negotiated is much less toxic to May than the EU’s original proposal of Northern Ireland alone remaining in the customs union and the single market. But it will still upset many of the MPs who sustain her in power.

To state the obvious, much will hinge on how and whether the UK could get out of the backstop – about which we will presumably learn all tomorrow.

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Attorney general Geoffrey Cox has told colleagues the backstop deal is ‘mutually uncomfortable’ but there is independent arbitration. That does not sound like the unilateral break clause ministers demanded.

Jeremy Corbyn on the Brexit draft agreement.  

That’s why EU governments want level playing field and regulatory alignment written into withdrawal agreement because it won’t be a legal commitment to have a customs union later but one that’s up and running now.

That’s why EU governments want level playing field and regulatory alignment written into withdrawal agreement because it won’t be a legal commitment to have a customs union later but one that’s up and running now.

That’s why the July 2020 to rendez-vous is important. Joint committee will decide if trade talks will supercede Irish border, or to extend transition because that prospect is close. The most likely option, the custom union is already done, “fully operational”.

Weyand told Coreper ambos last Friday that “customs union will be fully operational in the withdrawal agreement” “Fully operational” – so no need for a customs treaty in transition, or a guarantee of one.

Just a thought and informed guess: I think the backstop to the backstop has gone More in due course.

What’s in the Brexit text? Sounds like UK will not sign up to “dynamic realignment” across range of areas as France had pushed for. Instead will Brits commit to following EU rule book in areas like state aid. Others like environment or taxation will be softer “non-regression”.

Tentatively encouraging news: it seems tomorrow’s EU27 ambassadors meeting in Brussels has been provisionally changed to discuss “state of play” in Brexit at 3pm rather than original “no deal preparedness”.

It’s finally coming. After sitting on publication, college of EU commissioners in Strasbourg today will approve its minimalist no deal contingency plans. Publication date has yet to be decided. Today would be a hostile move – has seen the text

EU diplomats had expected commission’s no deal planning – which is run by Martin Selmayr – to be watered down but document to be adopted by college lays out minimal, temporary measures (until end of 2019) with almost nothing on emergency customs, road travel, food exports

BREXIT NEWS FOR MONDAY 12TH NOVEMBER 2018

Monday 12th November 2018.

A quiet day on the Brexit Broadwalk. A second Cabinet Cinister comes out in two days to declare that the Cabinet will act as a check upon PM May´s plans. The EU/UK Negotiators have been meeting all day. There is no deal in sight yet, although the draft Withdrawal Agreement is now 400 pages plus long,apparently. Senior ministers are telling May to prepare for a no Deal Brexit. Also, Robert Peston on Twitter is worth reading today for his incisive comments. BREAKING. Pizza Club of Brexiters hold meeting tonight to discuss tactics ahead of tomorrow´s Cabinet meeting.

As expected, Labour will use a debate tomorrow to try to force a vote in Commons that would make the govt publish the legal advice on the troubled backstop proposal – with Brexiteers and DUP on board hard to see how ministers avoid having to accept in the end.

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“Up until last week, I was thinking she probably could and would” Grant Shapps on Theresa May’s political survival through Brexit talks.

What happens if negotiators cannot do deal on Irish backstop “exit” mechanism? Then the EU may find itself with tough choice – between no deal, and a deal that gives them everything (€€€, citizens’ rights, security) BUT Ireland. My latest. The Telegraph

The fact that cabinet ministers are briefing the BBC that they didn’t much like the Chequers plan in July (but signed it off and have sat in the cabinet for four months since that meeting) might give a clue to how much backbone they are likely to have in the days ahead.

. have changed our first opposition day motion tomorrow to force a binding vote in the HoC demanding that the Government’s legal advice on the withdrawal agreement – including the Irish backstop – is published once any Brexit deal is ready to be put to Parliament.

There is now no chance of a deal on withdrawal from the EU being put to cabinet tomorrow, even if there is agreement on the outstanding backstop issues overnight. The reason is knows she has to give her ministers at least one night to assess the detail.of any agreement.

So the earliest a cabinet could meet to ratify the deal, or throw it out, or ratify with some ministers quitting, is Wednesday. And Wednesday morning is problematic because no PM wants a cabinet before PMQs.

So Cabinet agreement on the terms of withdrawal from the EU, including the contentious question of how to keep open the border between NI and ROI, is turning into a moveable feast that never actually happens. There is a growing risk, as I’ve been saying, that no-deal preparations have to be massively ramped up.

🔵 no agreement this week = big❓over November summit = “more and more difficult time-wise”  political situation in UK = “difficult, fragile”

🔵 Parliament to vote on changes to statute in January

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🇪🇺🇬🇧 This evening Committee Chair, , reports back on the main developments of the negotiations. 🎥 Watch it LIVE from 7.30pm GMT:

Exclusive: Pizza club is BACK. Ministers concerned about customs backstop are tonight gathering for drinks at Liam Fox’s office ahead of tomorrow’s Cabinet Those present include Dom Raab, Michael Gove, Andrea Leadsom, Penny Mordaunt and Geoffrey Cox. Telegraph

Senior Cabinet ministers including Raab, Leadsom and Fox are saying that no-deal is better than bowing to the EU’s demands over backstop I’m told talks in Brussels broke down at 2.45am after Olly Robbins told Sabine Weyland PM could ‘not go back to Cabinet’ with proposed deal.

The proposed Brexit deal IS NOT on the agenda for Cabinet tomorrow. Instead ministers will have a discussion about ‘soft power’ Dom Raab is updating minister on no deal preparations, however, which should give Eurosceptics space to make their points.

  retwitted

No Deal-Plus increasingly becoming most likely outcome, writes Brian Monteith. Scotsman.

Former ERG deputy chair Michael Tomlinson joins Dexeu as Raab’s PPS. He has been very vocal about leaving the customs union and striking trade deals… not happening any time soon under current No10 plan.   

NEW: Senior ministers led by Dominic Raab tell Theresa May no deal is preferable to the current offer from the EU.   

Buzzfeed

BREXIT NEWS FOR SUNDAY 11TH NOVEMBER 2018

Armistice Day. Sunday 11th November 2018.

One hundred years ago today cessation of The First World War was announced to a jubilant population. Today there were moving ceremonies at the Cenotaph and at churches and cathedrals throughout the United Kingdom. In addition there were moving sand sculptures of the faces of  WW1 Soldiers created along many beaches throughout the land.

Thank you

Armistice Day commemorations in Mons 

Centenary of the armistice – cartoon  

Simply breathtaking – Danny Boyle remembrance day display takes place on Murlough Beach at the foot of the Mournes in Newcastle Co.Down –

Belfast Telegraph

Sadly there is no jubilation today about Brexit, but a grim foreboding of what might be to come.. This morning the Education Secretary was sent out onto Marr on Sunday to put the Theresa May line, whilst Minister Andrea Leadsom spoke to the contrary. Robert Peston has crafted an analysis of the situation today, whilst The Telegraph contains an interesting Legal Opinion from a QC about how to solve the current outstanding problems. Meanwhile Theresa May is warned that there could be other ministerial resignations. Ans still there is no deal agreed yet, despite the EU and UK officials holding talks in Brussels throughout the weekend.  BREAKING This evening there is a big story from Boris Johnson in tomorrow´s Daily Telegraph.Boris Johnson warns Theresa May’s Brexit plans will keep UK in ‘captivity’ as he says Cabinet should stage a mutiny. Read about it below.

The problem with Brexit is not Theresa May. The problem with Brexit is Brexit. .A bad Brexit will not be as terrible as the Suez crisis. It will be far worse.         The Guardian.com

Surprises me, reading papers, that Cabinet is surprised that the EU side has rejected “arbitration panels

For those wanting to know why the Prime Minister’s A50 Northern Ireland backstop proposals are badly flawed read this expert opinion via my FB page:

NOW OR NEVER: May told ‘stop BEGGING’ as Brexit talks enter DANGEROUS STAGE  

Priti Patel.  The Daily Express

offers No.10 a lifeline: “Until the end of 2020, both sides would maintain a standstill with zero tariffs & no additional barriers, giving time for the activation of Canada+++. In return, the UK would make a payment of £20b” 

Jacob Rees-Mogg. The Daily Mail

My piece with Iain Duncan Smith on how existing technical and administrative processes can ensure frictionless borders are maintained after Brexit, not as a cobbled-together “backstop” but as a long-term arrangeme  

Owen Paterson MP and Iain Duncan-Smith MP  . The Times

BREXIT NEWS FOR SATURDAY 10TH NOVEMBER 2018

Saturday 10th November 2018

Brexit News Today is all about the possible fallout from the resignation of Jo Johnson, and its consquences, while negotiators are still locked in “the Tunnel” according to Alberto Nadelli. Peter Foster of the Telegraph has published an interesting timetable of Brexit Today. Robert Peston has sombre words about Brexit on Facebook. However, the good news is that some Cabinet Leavers have prepared an alternative No Deal scheme, as a way of resolving the impasse. Watch this space!

  Retweeted

Brexit latest: EU27 diplomats were told today that EU and UK negotiators are exploring a backstop architecture that sets out three options to review in July 2020. The three options: 1) The backstop becomes superfluous because a hard border will have been avoided through a trade deal 2) The transition period is extended 3) The backstop is activated, and the UK enters into a customs union with the EU

Upshot of Jo Johnson’s resignation: ‘no deal’ is more likely. It’s currently the default, MPs need to agree on something to replace it. If moderate Remainers like JoJo join Soubryites in voting down May’s plan (as do 50+ members of BoJo StandUp4Brexit crew) default kicks in

BREXIT NEWS FOR FRIDAY 9TH NOVEMBER 2018

Friday 9th November 2018

A controversial leaked letter from PM Theresa May in the morning press and the resignation of Jo Johnson, Minister of Transport and Minister for London, in the afternoon has led to a busy day on the media. Plus excellent Podcasts from The Spectator and The Telegraph

 

Times exc Here are (long) extracts of The leaked letter from Theresa May to Arlene Foster and Nigel Dodds. The Times

  1. 1. But reason DUP are worried is it implies May is poised to accept an arrangement that would tie NI more closely to the EU than GB – backed up by Cabinet source who told me No 10 solution inc arrangement like ‘customs partnership’ for GB and ‘customs union’ for NI
    2. This is NOT what No 10 is saying right now – they say PM would never accept arrangements that hive off NI and negotiations still ongoing
    3. But the letter raises the possibility of ‘specific alignment solutions’ for NI – so potentially different regimes on the two sides of the Irish Sea – that’s why DUP are so cross – remember PM needs their votes desperately

    4. If it’s enrage the DUP or lose the chance of the withdrawal deal – what does the PM do? Recent conversations with senior sources suggest it might be the former – (and increasing checks have been on table for ages) but high, high stakes

Am hugely proud of my honourable and principled brother Jo who has put the interests of the country ahead of his political career.

I very much doubt Jo will be the last Remainer to resign from the Govt to vote for a 2nd referendum. At least four others in the mid ranks have been on the verge for several months.

Jo Johnson: May’s backstop would offer “a boundless transition period… a con on the British people”

Boundless admiration as ever for my brother Jo. We may not have agreed about brexit but we are united in dismay at the intellectually and politically indefensible of the UK position 1/2

Will Jo Johnson’s exit shift Brexit balance? – BBC News

Jo Johnson’s damning criticism of May’s deal “When we were told Brexit meant taking back powers for Parliament, no one told my constituents this meant the French & the German parliament …The proposals will see us out of Europe, yet run by Europe.”

Apparently Sabine Weyand has briefed Coreper 27 that no progress has been made on the backstop because of political difficulties in U.K. Might square with your take on NI Customs territory. Also fish LPF issues plus exit mechanism?

Michel Barnier’s deputy Sabine Weyand tonight briefed EU ambassadors that there has been no significant progress on the Irish border – the last remaining issue in the talks – due to political deadlock in London.

So just how calamitous would a no-deal Brexit be? The transport minister involved in planning it – who resigned today – says this

JoJo story by and me. NEW: Dominic Grieve on prospect of other ministers resigning: “I know there are many other people who are troubled by what has been happening and have come to same analysis that … Jo’s come to.

  Retweeted

Podcast: Jo Johnson resigns and calls for a second referendum. What happens next? As usual, Coffee House Shots has the latest. Here. 

  retwitted

Sorry to see resign. He’s right that the Government’s current proposals are “a travesty of Brexit” and represent a huge democratic deficit – out of Europe but run by Europe. However, a 2nd referendum is not the way forward and is not supported by the public.

  Retweeted

The latest épisode of  with features Housing Minister and self-confessed ‘relaxed Brexiteer’ with his positive take on how Brexit is going and what it means for the UK housing market. Listen here:.

BREXIT NEWS FOR THURSDAY 8TH NOVEMBER 2018

Thursday 8th November 2018

No big news on Brexit today, other than rumours that PM Theresa May will try to finalise her deal with the Cabinet next week over the backstop. Much opposition from Brexiters who see the proposals as worse than no deal, ie the UK will more than likely end up after the end of the transition period in an indefinite customs union with the EU, paying moneys, unable to negotiate proper free trade deals, full free movement of EU citizens and having no say in the rules. It was pointed out today that Turkey has been in a “temporary”customs union with the EU since 1992. Much criticism of Theresa May and her Cabinet today for their complete lack of negotiating skills and weakness and failure to stand up to the EU. Many will be asking what on earth was the point of Brexit if the UK( under this Government) is unable to leave the EU.

A fine summary. But remember the Cabinet eagerly signed off everything May did, every painful step of the way. A collective and epic failure of Government.

The challenge for May is to make sure that the backstop doesn’t turn out to be worse than no deal at all

Brexit is served – and neither option is palatable | The Spectator

When the Lisbon Treaty was signed in 2007, the inclusion of Article 50 was hailed as a concession to British Eurosceptics. For the first time there wa…

spectator.co.uk

  Retweeted

Liam Fox: UK must have ability to end “backstop” arrangement after

Minister Liam Fox says the UK must have the ability to end any post-Brexit "backstop" arrangement.

Fox: UK must be able to end backstop

International Trade Secretary Liam Fox says the UK must have the ability to end any post-Brexit “backstop” arrangement.

bbc.co.uk

David Davis says it is “looking like a probability” that May’s Brexit deal will fail in Parliament.

  retwitted

Don’t think there is a single Leave voter or MP who could read this by and not conclude the government has completely ruined what they thought they were voting for,

 retwitted

The Cabinet and Parliament must be able to make a fully informed decision on any future relationship with the EU. Earlier, on , I reiterated the need for the Government to release the full legal advice provided by the Attorney General.

  retwitted

On this week’s (coming tomorrow), joins at the Red Lion pub (the scene of his post-resignation shandy) to discuss a ‘no-deal’ Brexit and why MPs should be given full legal advice on Theresa May’s Brexit deal. Watch this space.

Grim reading. The ineptitude and feebleness of our negotiators make Barnier look like Talleyrand. Why did we accept the EU’s legal text of last December’s agreement as holy writ? Where was ours? It’s Negotiation 101.

  Retweeted

The inadequacies of our political and civil service elite are impossible to ignore. Radical, sweeping changes in Westminster and Whitehall are due. ⁦

Austrian newspaper reports EU officials in Helsinki expect a Brexit deal to be agreed ‘in the next few days’. It says Donald Tusk is expected to convene a special November summit on the 25th.

 

 

BREXIT NEWS FOR WEDNESDAY 7TH NOVEMBER 2018

Wednesday 7th November 2018

Today has been a day of rumours and rumours. Concern about the Backstop continues with Government backbenchers as well as the Opposition wanting full sight of the Legal Advice given to PM Theresa May by Geoffrey Cox , the Attorney-General.

It may be there will be a Cabinet meeting to discuss the Backstop tomorrow, but this cannot be confirmed.

BREXIT LATEST: Cabinet ministers are being invited to read the full text of the Withdrawal Agreement in private — but it doesn’t yet include the crucial Irish border backstop.   Bloomberg.com

  Retweeted

Arriving in Brussels, said the government should voluntarily publish its legal advice on the Irish backstop and if they didn’t then Labour would consider mechanisms to compel them. Although he didn’t specify which .

Times / Brexit live It doesn’t sound like No10 intend to share the most contentious elements of the Withdrawal Agreement – the text of the NI backtop – with cabinet ministers today

UK goods exports to the 11 fellow founding members of the Single Market have grown between 1993-2015 at just 1% pa. Over the same period, UK goods exports to the 111 countries with which it trades under rules have grown at 2.88% pa, nearly three times faster.

BREXIT NEWS FOR TUESDAY 6TH NOVEMBER 2018

Tuesday 6th November 2018.

Brexit Headlines today include Reports of the Cabinet Meeting about the Backstop, M Barnier´s Comments, and a purported leak of UK Media plan to publicize and gain support for the Brexit Deal, although the legitimacy of this has been denied by the Government.

Twitter has the best Brexit News on these topics today

  1. 4. In short term, ministers told be ready for another Cabinet meeting, maybe even at end of this week, because there might be enough movement by then to push button on a deal

  2. 3. Some ministers did urge PM to be hardline on need for limit to backstop +ability for UK to get out of it on its own, but s no big confrontation – ministers were presented a paper that set out difference btw November deal or waiting til December – it was confiscated at the end

  3. 2. Geoffrey Cox, the Attorney General, said there as a spectrum of what was possible for mechanism for escaping the backstop – ie not being trapped in neither in nor out limbo for ever – ministers say he softened his position from last week which has made a difference

  4. Lots more on today’s cabinet later on but a quick thread of what was discussed 1. Cabinet agreed horror of missing a November deal deadline – not impossible but deeply undesirable

    Stand by for a cabinet meeting on Friday, maybe, to “push button” on a deal, Cabinet told. Sounds wildly optimistic given briefings by Team Barnier to and others. Clear signals, it seems, that TF50 not that keen in a rush job.

     The Huffington Post has the disputed story of the proposed PR Plan to sell the Brexit Deal to the UK.

    Without any apparent irony, Michel Barnier has just said: “Backstop means backstop”. Brexit has truly begun to eat itself.

    1. Just imagine if the Tories go into the next general election with the UK still in the customs union – with the EU setting our tariffs and other trade barriers with 3rd countries – and with no unilateral right ever to be free of it. I almost pity Tory campaigners out on the door

    2.   retwitted

      Remaining in a customs union beyond 2020 would be unacceptable to many Conservative MPs – and here’s why, writes (former Trade Minister; voted to Remain, which makes his critique all the more powerful) This story is in Conservative Home

 

BREXIT NEWS FOR MONDAY 5TH NOVEMBER 2018

Monday 5th November

“We want to see that commitment honoured. I believe PM May is approaching this issue in good faith, but in order for that commitment to be honoured, the government and the European Union need to see a backstop in place that can cater for changes that might happen in the future.”

Dr Liam Fox at the First International Trade Dinner held in the City of London on 17th October 2018

  1. Concluding his speech at the International Trade dinner emphasises the “once in a generation chance to shape a better future for our own people and realise the highest ambitions of our businesses.” Have your say on prospective free trade deals 👉

    0:27
    214 views
  2. 90% of global growth in the next five years is predicted to come from outside of the EU. explains how 🇬🇧‘s exports reflect this global trend 👇

  3. Speaking to business leaders, reiterates our ambition to increase exports from 30% to 35% of GDP – putting us toward the top of the G7. 📖 Read the export strategy in full 👉

  4. .: “Government has a role to play in facilitating enterprise – creating the optimum conditions for our businesses to succeed and thrive. And thrive they have.” 👇

  5. 👉 Economic dividend: : “Fiscal balance is not solely about whether to raise taxes/cut spending – it’s also about how to generate more revenue by growing the economy domestically and selling more of our goods & services abroad.”

  6. 👉 The security dividend: ⚖️ Prosperity underpins social cohesion 👫 Social cohesion underpins political stability 👨‍👨‍👧‍👦 Political stability is the building block of our collective security

  7. 👉 The human dividend of free trade : “At a fundamental level, free & open trade allows people to improve their own lives, allowing the individual to access global opportunities. It delivers employment, goods and services, often where they are needed most.”

  8. . is speaking at the inaugural International Trade dinner at Mansion House. He outlines the positive effects of free trade – the trade dividend: 👉 the human dividend 👉 the security dividend 👉 the economic dividend

  9. Putting finishing touches on my speech ahead of international trade dinner at Mansion House – I’ll address business leaders on the benefits of the Trade Dividend

  10. Delighted to welcome to Mansion House for the first International Trade Dinner. Huge opportunities for the UK to strengthen links across the globe.

BREXIT NO DEAL TECHNICAL NOTICE NO 113 on Taking horses abroad if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice explains the actions those involved in moving horses and other equines from the UK to countries within the EU, for example for racing, competition or breeding, would need to consider if the UK leaves the EU in March 2019 without a deal.

Before 29 March 2019

The movement of horses and other equines between the UK and other EU countries is subject to EU rules, mostly detailed in Council Directive 2009/156/EC and Commission Implementing Regulation (EU) 2015/262. These govern the movement and import of equines and establish guidelines for equine identification.

They require, in general terms, that equines travel with two documents: an ID document (passport) which also includes details of their health status; and either an Intra-Community Trade Animal Health Certificate (ITAHC) or a veterinary attestation. These documents confirm fitness to travel and absence of disease. Which of the two additional documents are required depends on the purpose of the movement and perceived health risk associated with that equine type (for example racing, competition, or breeding). It is currently not necessary for equines moving between member states to do so via a Border Inspection Post (BIP).

Under a separate Tripartite Agreement (TPA), movements of certain types of horse between the UK, Ireland and France are further streamlined. For movements between the UK and Ireland, only an ID document is required. For movements between the UK and France, an ID document and commercial document (DOCOM), along with an entry on the TRACES system, is required. There is no requirement for the equines to move between member states via a BIP.

In the UK, equine ID documents (passports) are produced by private bodies, known as passport issuing organisations (PIOs), which can include breed societies. Applications for ITAHCs are made to the Animal and Plant Health Agency (APHA) and the certificate is then completed by an authorised Official Veterinarian (OV). OVs also produce the veterinary attestation, where required. APHA provides this service in England, Scotland and Wales. In Northern Ireland the Department of Agriculture, Environment & Rural Affairs’ Veterinary Service is responsible. This would continue to be the case in a ‘no deal’ scenario, with the changes outlined in this technical notice accommodated for.

After March 2019 if there’s no deal

If the UK leaves the EU in March 2019 with no deal in place, the UK would be treated as a ‘third country’ and therefore any movement of equines to countries within the EU would be subject to EU third country rules. In order to travel from the UK as a listed third country, a horse or other equine would need an appropriate ID document and appropriate health documentation. These are mostly contained in Council Directive 2009/156/EC, Council Directive 91/496/EEC (the latter covering veterinary checks applied to imports) and Commission Implementing Regulations 2015/262 and 2018/659 (covering conditions applied to all EU equine imports).

We are seeking discussions with the European Commission to allow the UK to become a listed third country on the day we leave the EU. However, to allow effective contingency planning, in the event that the UK is not a listed country equine movement to the EU could not take place. We are confident however, that the UK meets the animal health requirements to secure listing, as other countries such as Australia and New Zealand have done.

The import of equines from the EU into the UK will not change immediately after exit as we are replicating current systems.

ID document

Equine ID (passports), issued by industry, would continue to be used in the UK, as they contain information relating to identification and veterinary procedures undertaken that could help to maintain a robust national equine health and traceability regime.

These industry-issued passports would continue to be valid for EU travel for horses registered either on a studbook or pedigree register; or with a national branch of an international organisation for racing or competition.

All other horses and equines travelling from the UK to the EU would have to travel with a new government-issued ID document which is expected to contain very similar information to that in existing passports. This is a requirement of the EU in relation to movements from third countries.

Export certification

As the UK would be a third country, an Export Health Certificate (EHC) would be required to move equines, on a permanent or temporary basis, to the EU.

The EU currently imposes additional requirements on third countries dependant on their perceived level of disease risk. The UK could expect to be subject to fewer additional requirements in a ‘no deal’ scenario, given its current low disease risk profile, meaning a less burdensome process for certification.

However, EU certification would require additional action from vets to confirm the absence of equine disease. This new process would require more planning from the equine owner and could involve increased cost if additional blood tests are required, estimated to be between £200 and £500 depending on the third country category the UK is placed in after leaving the EU.

The Export Health Certificate (EHC) would replace the veterinary attestation or Intra-Community Trade Animal Health Certificate (ITAHC) currently required. In addition, equines entering the EU from the UK would have to pass through a Border Inspection Post (BIP) in an EU member state.

Tripartite Agreement

The Tripartite Agreement would no longer be valid if the UK leaves the EU with no agreement, as it operates as a derogation to current EU rules and only named EU member states are eligible to use it.

Implications

In the event of a ‘no deal’, those wishing to move equines from the UK to countries within the EU would need to:

  • apply to the APHA in GB or the Department of Agriculture, Environment & Rural Affairs’ Veterinary Service in Northern Ireland both for the new export certification required by the EU; and
  • if their horse is not registered either on a studbook or pedigree register or with a national branch of an international organisation for racing or competition, apply for a new government-issued ID document.

An Official Vet (OV) could deal with the veterinary elements of both of these in a single visit. This process is the same as that currently in place for the production of Intra-Community Trade Animal Health Certificates (ITAHCs). Consequently, it is not anticipated that significant additional time would be needed to produce the required documentation, although additional veterinary time to complete the necessary blood tests will need to be factored in.

Training packages for operational staff and OVs across the UK would be updated to reflect any new arrangements.

More information

If you are involved in exporting horses and other equines to the EU we recommend you also refer to the technical notice on Exporting animals and animal products if there’s no Brexit deal.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 112 on Sanctions policy if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice explains how the UK would implement sanctions if the UK leaves without a deal.

Sanctions, often known in the EU as “restrictive measures” are a foreign policy and national security tool which impose immigration, trade, financial and transport restrictions. We use sanctions to fulfil a range of purposes, including as part of our efforts to maintain international peace and security, and to prevent terrorism.

The UK and other countries and international organisations implement sanctions through sanctions regimes. A sanctions regime is a collection of sanctions targeted for a specific country or group, or with a specific purpose. The most frequently applied measures within sanctions regimes include:

  • trade sanctions: controls on the import, export and movement of goods, the provision and supply of services and the involvement of UK people in those activities
  • banning the travel of specific people
  • financial sanctions, including freezing the financial assets of specific people

Before 29 March 2019

At present, we are legally required to implement and enforce sanctions regimes agreed by the UN Security Council and, as a member of the EU, by the EU.

The detail of sanctions regimes are set out in EU law, in European Council Decisions and Regulations. The UK implements sanctions through EU Regulations and associated UK domestic legislation, such as the Export Control Order 2008 and the Immigration Act 1971.

After March 2019 if there’s no deal

As international law requires, we will implement UN sanctions in UK domestic law after the UK leaves the EU.

If the UK leaves the EU without a deal, we will look to carry over all EU sanctions at the time of our departure. We will implement sanctions regimes through new legislation, in the form of regulations, made under the Sanctions and Anti-Money Laundering Act 2018 (the Sanctions Act). The Act will provide the legal basis for the UK to impose, update and lift sanctions after leaving the EU.

We propose to put much of this legislation before Parliament before March 2019, to prepare for the possibility of the UK leaving the EU without a deal. Any sanctions regimes that we did not address, through regulations under the Sanctions Act by March 2019, would continue as retained EU law under the EU (Withdrawal) Act 2018. This means there will be no gaps in implementing existing sanctions regimes.

We expect that the UK’s sanctions regulations will include:

  • the purposes of the sanctions regime (what the UK hopes will be achieved through imposing sanctions)
  • the criteria to be met before sanctions can be imposed on a person or group
  • details of sanctions, such as trade and financial sanctions
  • details of exemptions that may apply, such as exemptions which allow people to trade with a certain country that would otherwise be prohibited by the regulations
  • how we will enforce the sanctions measures
  • other areas, such as circumstances in which information about sanctions may be shared

We would publish the names of sanctioned persons or organisations. Regulations would be published as normal.

After the UK leaves the EU, in addition to implementing UN sanctions, and looking to carry over existing EU sanctions, we will also have the powers to adopt other sanctions under the Sanctions Act. We will work with the EU and other international partners on sanctions where this is in our mutual interest.

What you would need to do

UK sanctions measures can apply to action taken by any person in the UK (or its territorial waters, and to action taken by a UK person anywhere else. A UK person includes both UK nationals and companies incorporated in the UK.

If the UK leaves the EU without a deal, if you are affected by UK sanctions you should refer to the Sanctions Act and the UK regulations made under it.

If we have not yet made regulations for the sanctions regime in question, you should refer to any EU Council Regulations retained under the EU Withdrawal Act 2018, which may be modified under that Act.

You should not assume that all aspects of existing EU sanctions will be replicated exactly. Check new legislation and ensure you comply with its requirements, and check future guidance when we publish it.

If the UK leaves the EU without a deal, we will publish further guidance on sanctions. If you are seeking information about licences or exemptions from sanctions, contact the Office for Financial Sanctions Implementation and the Export Control Joint Unit. If you are undertaking activity which is currently exempt from EU sanctions, you should check UK sanctions regulations to see whether they contain relevant exemptions to cover that activity.

More information

Over the coming months, we will contact and engage with key stakeholders, including those who implement sanctions, to outline and discuss our future approach to sanctions.

For guidance on export controls and trade sanctions, view the Export Control Joint Unit, email: eco.help@trade.gov.uk or call the helpline +44 207 215 4594.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 111 on Trading electricity if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it is our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until the UK can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a ‘no deal’ scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

The government is engaging with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice informs industry participants and other stakeholders about changes to the cross-border trading and supply of electricity in the event that the UK leaves the EU in March 2019 with no agreement in place.

Before 29 March 2019

The UK’s electricity markets are currently integrated (‘coupled’) into those of the EU, with common rules governing their operation. Significant cross-border flows of electricity take place between continental Europe and Great Britain; between Great Britain and the island of Ireland; and between Northern Ireland and Ireland. These flows, and the domestic markets, are currently governed through EU legislation relevant to the functioning of the EU’s Internal Energy Market.

The Northern Ireland electricity market is separate from Great Britain and different considerations apply. Northern Ireland shares a wholesale electricity market with Ireland, the all-Ireland Single Electricity Market, an example of North-South cooperation that has benefited consumers and the economies of Northern Ireland and Ireland.

The Single Electricity Market involves significant cross-border flows of power between Ireland and Northern Ireland and operates within the framework of common EU rules on electricity markets. Reforms to maximise efficiencies and bring the Single Electricity Market in line with the requirements of the EU’s Third Energy Package came into effect on 1 October 2018. Negotiators have already made good progress on a legal provision to underpin the Single Electricity Market in the Withdrawal Agreement and the UK will work with Ireland and the EU to ensure that the Single Electricity Market is maintained in any future economic partnership.

After March 2019 if there’s no deal

European energy law will no longer apply to the UK and the UK’s electricity markets will be decoupled from the Internal Energy Market.

Cross-border flows across electricity interconnectors will no longer be governed by EU legislation which provides for efficient trade and cross-border cooperation in operating the electricity system. Without these arrangements, alternative trading arrangements will need to be developed. This will need to involve regulators in the UK and EU approving new access rules, which set the terms and conditions for this trade. There are no plans to change either the domestic approval process or the requirements for access rules in the UK. The government and Ofgem are already working with interconnectors to ensure new access rules are approved in Great Britain and are providing support to interconnectors engaging with EU Member State authorities.

The EU’s Regulation on Energy Market Integrity and Transparency (REMIT) prohibits insider trading and energy market manipulation and makes provision for monitoring of the market by regulators. Market participants will need to register with an EU regulatory authority to avoid a disruption to cross-border trade, trade within EU wholesale energy markets, or trade within the Single Electricity Market.  The majority of the existing Regulation on Energy Market Integrity and Transparency regime will be maintained domestically with minimal changes. Market participants will need to make use of the alternative arrangements developed for purchase and sale of power cross-border.

The government will lay statutory instruments to ensure the UK’s energy laws continue to work on day one of exit in a ‘no deal’ scenario.

It is likely that changes will be required to domestic industry codes (the technical rules of the domestic electricity system) and licences. More information on these changes and how the process will be managed will be provided by Ofgem for Great Britain and by the Utility Regulator for Northern Ireland. In Great Britain, government has worked with Ofgem and National Grid to ensure existing measures are in place to deliver continuity of supply. Consumers need to take no action, but trade on interconnectors will be less efficient.

The EU rules will cease to apply in Northern Ireland leaving key elements of the Single Electricity Market – trading with Great Britain and cross-border governance arrangements – without any legal basis. Given the benefits to consumers and the economy of the more efficient, shared market, it is strongly in the interests of all parties to agree to a means to avoid the split of the market. Recognising this, the government will therefore take all possible measures to maintain the Single Electricity Market. The government is keen to work with the Irish Government and European Commission to seek agreement that the Single Electricity Market will continue in any scenario, including no deal.

However, if such an agreement cannot be reached, there is a risk that the Single Electricity Market will be unable to continue, and the Northern Ireland market would become separated from that of Ireland. Separate Ireland and Northern Ireland markets will be less efficient, with potential effects for producers and consumers on both sides of the border.

If this situation arises government, the Northern Ireland Utility Regulator and SONI, the Northern Ireland Transmission System Operator, will take action to mitigate the risks in Northern Ireland. Contingency planning work is considering how best to establish a separate Northern Ireland market, if the Single Electricity Market cannot be maintained. SONI may need to rely on fall-back arrangements to ensure power is able to flow over the Great Britain-Northern Ireland interconnector, in the absence of reliable rules for cross-border trading. Government or the Northern Ireland Utility Regulator will act to seek to ensure adequate generation capacity is in place, as far as possible through a competitive procurement process involving existing generation and new generation investment alongside demand side measures.

Government will use existing, energy-related legal powers where available and maintain market operation as far possible. However, it may be necessary to seek additional powers to preserve security of supply. The government would work with industry and the Irish Government to move as quickly as possible to a settled long-term state supported by sufficient levels of generation and interconnection to deliver long term energy needs.

Actions for businesses and other stakeholders

Interconnectors, code administrators and UK market participants will need to carry out contingency planning for a ‘no deal’ scenario. Although it will be a matter for individual businesses to work out what steps they might need to take, the government anticipates these are likely to include:

  • Interconnector owners/operators will need to work with their stakeholders to prepare alternative trading arrangements and updated rules. These alternative trading arrangements will need to be as efficient as possible and provide each connected market with the necessary information to ensure the trades will work. In developing these, the interconnectors will need to work with their customers, regulators and other stakeholders in both connected markets. New arrangements will need to be in place for 29 March 2019.
  • Interconnector owners/operators will need to engage with the relevant EU national regulators to understand their processes for the potential reassessment of their Transmission System Operator certifications. Ofgem, and where appropriate, the Northern Ireland Utility Regulator will seek to support the interconnectors in this process. Domestically, government will retain existing Transmission System Operator certifications and will ensure that EU Exit will not create any new domestic administrative requirements in this regard. The government will also make any small changes or clarifications necessary to the Transmission System Operator certification process to make sure it continues to function efficiently post-exit.
  • The administrators of the various domestic industry codes (the technical rules of the domestic electricity system) will need to work with relevant industry parties to ensure that the codes are updated. Ofgem will lead the licence change process in Great Britain and has recently issued a document to industry outlining the process it will follow: Preparing for EU exit: licence and industry code modifications; the Utility Regulator will take similar action in Northern Ireland.
  • UK market participants will need to register under the Regulation on Energy Market Integrity and Transparency (REMIT) with an EU regulatory authority for the purposes of market monitoring to avoid a disruption to cross-border trade, trade within EU wholesale energy markets, or trade within the Single Electricity Market.
  • UK regulatory authorities will provide stakeholders with further information on the contingency requirements for domestic market monitoring later in the year.
  • In Northern Ireland, electricity market participants should continue using the Single Electricity Market processes and arrangements. However, market participants should be aware of the risk that the Single Electricity Market may not be able to continue, in which case government and the Northern Ireland Utility Regulator will take action to seek to ensure continued security of supply and market stability.
  • Market participants should engage with their Regulatory Authority where their preparations identify significant concerns. Market participants should also check the status of contracts, and licences held in EU Member States, which may be impacted by the UK’s departure from the EU.

More information

Government and regulatory authorities will continue to work closely with businesses, trade associations and stakeholders on the implications of a ‘no deal’ and communicate information and updates online.

Ofgem has issued information to industry on licence and industry code modifications: Preparing for EU exit: licence and industry code modifications

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 110 on Trading gas with the EU if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice provides gas market stakeholders with an explanation of how the trading of gas with European states will operate in the unlikely event that the UK leaves the EU in March 2019 with no agreement in place.

Before 29 March 2019

The UK has gas interconnectors (direct pipelines) with Ireland, the Netherlands, and Belgium.

After March 2019 if there’s ‘no deal’

In a ‘no deal’ scenario, EU energy law will no longer apply to the UK, and the UK will no longer play a role in the EU organisations that support the implementation of these laws, such as the Agency for the Cooperation of Energy Regulators (ACER).

However, UK domestic law relating to energy, the licences and industry codes that are used to implement these laws, will remain in place. Some changes and clarifications to the licences and industry codes may be required to ensure they remain operable.

Implications

In a ‘no deal’ scenario, the mechanisms of cross-border trade are not expected to fundamentally change. National Grid (Great Britain’s Transmission System Operator), Premier Transmission Limited (Northern Ireland’s Transmission System Operator) and the UK’s interconnector operators currently use the PRISMA gas capacity trading platform to allocate capacity at interconnection points. PRISMA is a privately-owned gas capacity trading platform that provides services for a range of EU and non-EU countries. National Grid and Premier Transmission Limited are both PRISMA shareholders and currently hold commercial contracts for PRISMA’s services; their intention is to continue using the PRISMA platform.

There will be some implications for the way gas is traded with the 27 EU Member States. These are described below.

There will be changes to access rule approval and trading arrangements. Interconnector operators’ access rules are approved by regulatory authorities both in the UK and in interconnected Member States (i.e. Ireland, the Netherlands, and Belgium). The trading of gas across EU borders under these rules is governed in part by the EU Network Code on Capacity Allocation Mechanisms, which establishes the rules for capacity allocation on interconnector pipes, and how adjacent transmission system operators should cooperate in order to facilitate capacity sales. The approval of regulatory authorities in interconnected Member States is needed in order to continue using Capacity Allocation Mechanisms Code processes.

In the UK, there are no planned changes to either trading arrangements or the approval processes or requirements for access rules. However, interconnector operators should engage with the relevant EU national regulators (in Ireland, the Netherlands, or Belgium) in good time ahead of the UK’s exit from the EU to confirm whether those countries intend to continue using the Capacity Allocation Mechanisms Code as the basis for their trading with the UK and understand any requirements for the reassessment of their access rules. Ofgem and the Utility Regulator of Northern Ireland will support the interconnectors in this process.

There will be changes to Transmission System Operator certification. The operators of UK interconnectors should engage with the Irish, Dutch or Belgian national regulators to understand whether their existing Irish, Dutch or Belgian Transmission System Operator certification – i.e. their EU law approval – will need to be reassessed and, if so, the process for this reassessment. Ofgem will seek to support interconnectors in this process.

Great Britain will retain existing Transmission System Operator certifications domestically and will minimise additional administrative requirements. The government will make any changes or clarifications necessary to the Transmission System Operator certification process to make sure it continues to operate effectively.

There will be changes to other gas network codes. Many of the EU’s gas network rules are implemented in the UK in the form of the Great Britain Unified Network Code and the Northern Ireland Network Gas Transmission Code and other industry documents. These are used by Ofgem (in Great Britain) and the Utility Regulator (in Northern Ireland) in their roles as gas market regulators. These rules will remain in place in a ‘no deal’ scenario. The government will work with regulators and industry to make any necessary amendments to industry codes.

The EU’s Regulation on Energy Market Integrity and Transparency prohibits insider trading and energy market manipulation and makes provision for monitoring of the market by regulators. Market participants will need to register with an EU regulatory authority to avoid a disruption to cross-border trade and trade within EU wholesale markets. The majority of the existing Regulation on Energy Market Integrity and Transparency regime will be maintained domestically with minimal changes.

Actions for businesses and other stakeholders (gas market participants)

Interconnectors, code administrators and UK market participants will need to carry out contingency planning for a ‘no deal’ scenario. Although it will be a matter for individual businesses to work out what steps they might need to take, the government anticipates these are likely to include:

  • Interconnector owners/operators: will need to engage with the relevant EU national regulators to confirm whether gas can continue to be traded on the basis of the rules in the Capacity Allocation Mechanisms Code, and to understand any requirements for re-approval of their access rules.
  • Interconnector owners/operators: will need to engage with the relevant EU national regulators to understand their processes for the potential reassessment of their Transmission System Operator certifications. Ofgem, and where appropriate, the Utility Regulator, will seek to support the interconnectors in this process. Domestically, the government will retain existing Transmission System Operator certifications and will ensure that EU Exit will minimise any new domestic administrative requirements in this regard. The government will also make any small changes or clarifications necessary to the Transmission System Operator certification process to make sure it continues to function efficiently post-exit.
  • The administrators of the various domestic industry codes: (the technical rules of the domestic gas market) will need to ensure that the codes are updated. Ofgem will lead the licence change process in Great Britain and has recently issued a document to industry outlining the process it will follow and the Utility Regulator will take similar action in Northern Ireland.
  • UK market participants: will need to register under the Regulation on Energy Market Integrity and Transparency (REMIT) with an EU regulatory authority for the purposes of market monitoring, to avoid a disruption to cross-border trade, trade within EU wholesale energy markets,
  • Market participants: should engage with their Regulatory Authority where their preparations identify significant concerns. Market participants should also check the status of contracts, and licences which may be impacted by the UK’s departure from the EU.
  • UK regulatory authorities: will provide stakeholders with further information on the contingency requirements for domestic market monitoring later in the year.

Further information

Government and regulatory authorities will continue to work closely with businesses, trade associations and stakeholders on the implications of a ‘no deal’ and communicate information and updates online.

You may also like to read Preparing for EU exit: licence and industry code modifications, published by Ofgem.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 109 on Meeting climate change requirements if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice aims to support the contingency planning of UK operators of installations (for example, power stations and oil refineries) and UK-administered aircraft operators that currently participate in the EU Emissions Trading System, and other organisations and individuals with accounts within the UK section of the Consolidated System of European Registries which also includes the UK’s Kyoto Protocol National Registry.

It clarifies the implications of the UK leaving the EU on the licensing regime for the geological storage of carbon dioxide; whilst this is not a direct component of the EU Emissions Trading System, the licensing regime for the geological storage of carbon dioxide partly relies on EU Emissions Trading System legislation.

It also outlines the impact on energy-using products that fall under the ecodesign directive and/or energy labelling regulations.

Climate change regulations and mechanisms

Before 29 March 2019

The UK is a global leader in the fight against climate change and we are proud to be the first country to set legally binding targets to reduce greenhouse gas emissions. The UK’s Climate Change Act requires us to reduce emissions by at least 80% against 1990 levels by 2050. We have put clean growth at the centre of our modern Industrial Strategy and our Clean Growth Strategy sets out a comprehensive set of policies and proposals that aim to accelerate the pace of clean growth, i.e. deliver increased economic growth and decreased emissions.

The UK is deeply committed to domestic and international efforts to tackle climate change. The UK is a Party, in its own right as well as through the EU, to international climate change agreements, including the Doha Amendment to the Kyoto Protocol and the Paris Agreement.

EU Emissions Trading System

The EU Emissions Trading System is an international, greenhouse gas emissions trading system which applies to multiple sectors. There are around 1,000 installations in the UK which participate in the EU Emissions Trading System, including:

  • power stations
  • oil refineries
  • offshore platforms
  • industries that produce iron and steel, cement and lime, paper, glass, ceramics and chemicals.

In addition, approximately 140 UK-administered aircraft operators take part in the EU Emissions Trading System.

Participating operators are required to develop plans to monitor their emissions in accordance with the European Commission’s Monitoring and Reporting Regulation. They are also required to produce annual emissions reports that are verified independently in accordance with the Accreditation and Verification Regulation.

EU Emissions Trading System operators hold EU Emissions Trading System Union Registry accounts which provide them with access to their emissions allowances. At the end of each compliance year, operators must give up from their account one allowance for each tonne of verified carbon dioxide (or equivalent) emitted. Operators who are considered at risk of carbon leakage receive allowances through free allocation (if eligible) from their Member State of predetermined amounts agreed by the EU Commission. Other operators buy allowances on the carbon market or via a government administered auction.

Some UK-based operators falling within the scope of the EU Emissions Trading System Directive are excluded from the scheme through their inclusion in the UK Small-Emitter and Hospital Opt-Out Scheme. Instead of receiving and needing to give up allowances these operators are given emissions targets, these excluded installations pay only for emissions which exceed their target. Targets for excluded installations are set based on the allocation they would receive for free had they remained in the EU Emissions Trading System. Aircraft operators with total emissions below 25,000t or intra EEAemissions below 3,000t may use a simplified verification procedure.

The Kyoto Protocol

The Kyoto Protocol established three market-based mechanisms, emissions trading, the Clean Development Mechanism, and Joint Implementation. The Clean Development Mechanism and Joint Implementation provide for the development of projects which are credited with emission reduction units for offsetting greenhouse gas emissions. The UK has established regulatory functions, the Designated National Authority for Clean Development Mechanism projects and Designated Focal Point for Joint Implementation projects, responsible for issuing letters of approval for Clean Development Mechanism and Joint Implementation project activities respectively.

The UK’s National Kyoto Protocol Registry is located within the Consolidated System of European Registries and facilitates the trading of Kyoto Protocol emissions units. Holders of accounts within the Registry include:

  • actors who trade in Certified Emission Reductions and Emission Reduction Units generated under Clean Development Mechanism, and Joint Implementation
  • project developers who secured approval for Clean Development Mechanism projects from the UK’s Designated National Authority

After March 2019 if there’s no deal

There is no change to the UK’s deep commitment to domestic and international efforts to tackle climate change. The UK’s Climate Change Act is domestic legislation and will be unaffected by exiting the EU. The UK will remain a party to international climate change agreements and its commitment to them will remain as strong as ever and will be unaffected by EU exit. The UK will therefore continue to take ambitious steps to reduce greenhouse gas emissions, and the UK’s Clean Growth Strategy highlights our policies and proposals for doing so.

EU Emissions Trading System

The UK will be excluded from participating in the EU Emissions Trading System in a ‘no deal’ scenario. This means that current participants in the EU Emissions Trading System who are UK operators of installations will no longer take part in the system and flights within the UK will no longer be covered by EU Emissions Trading System obligations. Flights between the UK and the European Economic Area (EEA) are not expected to be covered by EU Emissions Trading System obligations.

The UK will no longer be responsible for managing the EU Emissions Trading System requirements for the aircraft operators it currently administers. If those aircraft operators continue to fall within the scope of the EU Emissions Trading System (for example, if they operate intra-EEA flights after exit), these requirements will need to be administered by an EU Member State.

In a ‘no deal’ scenario, UK government will therefore remove requirements relating to the surrender of emissions allowances. However, to retain as much continuity as possible, UK government intends to maintain Monitoring, Reporting and Verification arrangements.

The European Commission Regulation 389/2013, as amended by Commission Regulation 2018/208, will invalidate any allowances issued by the UK in 2019 such that they will not have any value on the carbon market.

The UK will not have guaranteed access to the Consolidated System of European Registries which includes the EU Emissions Trading System Union Registry and the UK’s Kyoto Protocol National Registry.

Implications

EU Emissions Trading System

The government has taken steps to provide certainty to UK operators in meeting their compliance obligations for the 2018 compliance year. To ensure this will not be affected in a ‘no deal’ scenario, the government brought forward the 2018 compliance year deadline in domestic legislation for operators to report their 2018 emissions and surrender allowances for those emissions from 30 March 2019 and 30 April 2019, to 11 March 2019 and 15 March 2019 respectively.

Any EU Emissions Trading System allowances issued by the UK for the 2019 compliance year cannot be used by UK operators to meet their 2018 compliance obligations. Operators will want to consider this when planning to meet their 2018 compliance obligations.

The government will retain the existing financial penalty for failure to surrender allowances for the 2018 compliance year.

As noted above, in a ‘no deal’ scenario the UK will not have guaranteed access to the Consolidated System of European Registries which also includes the EU Emissions Trading System Union Registry. UK operators will not have guaranteed access to the UK section of the EU Emissions Trading System Union Registry.

There will be no requirement to surrender EU Emissions Trading System allowances after the 2018 compliance year – the surrender deadline for 2018 emissions is 15 March 2019.

The UK government intends to maintain Monitoring, Reporting and Verification arrangements to ensure continuing transparency over Greenhouse Gas emissions. The Monitoring, Reporting and Verification framework requires all operators to monitor and report on their annual greenhouse gas emissions and produce a verified annual emissions report. Monitoring, Reporting and Verification falls under the devolved competence of environmental policy.

UK operators of stationary installations will continue to report on their emissions. Aircraft operators who will be registered in the UK after exit day will continue to report their emissions on the same flights as required on exit day. Operators in the Small Emitter and Hospital Opt-Out scheme will also continue to report.

There is no immediate action for aircraft operators who will be registered outside the UK after exit day, even if they are currently administered by the UK (but not registered in the UK), as the UK government will not initially place Monitoring, Reporting and Verification requirements on these operators in a ‘no deal’ scenario.

The current UK regulators will continue to have powers to enforce non-compliance with these ongoing requirements.

Carbon pricing

The UK government currently sets a Total Carbon Price, created by the EU Emissions Trading System and the (Great Britain only) Carbon Price Support mechanism. The UK government announced at Autumn Budget 2017 that the Total Carbon Price was set at the right level and that it would target a similar Total Carbon Price until unabated coal is no longer used.

In a ‘no deal’ scenario, the UK government will initially meet its existing carbon pricing commitments via the tax system, taking effect in 2019. A carbon price will apply across the UK, including Northern Ireland. The Single Electricity Market is being accounted for in all options.

The UK government will publish more details of how it will initially apply a carbon price in a ‘no deal’ scenario at Budget 2018 and legislation will be included in the Finance Bill 2018-19.

Consolidated System of European Registries

As noted above, in a ‘no deal’ scenario the UK will not have guaranteed access to the Consolidated System of European Registries which also includes the UK’s Kyoto Protocol National Registry. Loss of access would affect the UK’s ability to provide routine and essential administrative support to account holders.

Geological storage of carbon dioxide

Geological storage of carbon dioxide is not a direct component of the EU Emissions Trading System, but there is a legislative link between the licensing regime for the geological storage of carbon dioxide and the EU Emissions Trading System. In a ‘no deal’ scenario, the licensing regime for geological storage of carbon dioxide would become inoperable as legal consent to undertake storage could not be granted.

The government is planning to restore functionality in areas where the Oil and Gas Authority licenses storage. Elsewhere (that is, in Scotland and Northern Ireland) restoring functionality would require devolved administrations to modify their respective licensing regulations.

Actions for businesses and other stakeholders

Operators and traders with EU Emissions Trading System

Operators and traders with EU Emissions Trading System allowances in their account in the UK section of the Registry should plan for a loss of registry access and consider taking action to manage the risk of this happening. Such action might include opening a second account in another Member State’s Registry as part of their contingency planning for a ‘no deal’ scenario. The risk of loss of registry access should similarly be considered in relation to any open futures, options or other derivative contracts and hedging positions for any allowances in the Registry.

Operators should continue to comply with the EU Emissions Trading System Directive whilst the UK remains a participant. Operators should be prepared to leave the System in the event of a ‘no deal’ scenario, but plan to comply with Monitoring, Reporting and Verification requirements into the future.

Energy intensive industry relief schemes participants

Businesses that currently benefit from energy intensive industry relief schemes for the indirect policy costs of carbon pricing should continue to comply with the requirements set out in the government guidance for these schemes.

Kyoto Protocol National Registry

As the UK may not be guaranteed access to the Consolidated System of European Registries in a ‘no deal’ scenario, the UK may not have the ability to provide routine and essential administrative support to holders of accounts in the UK Kyoto Protocol National Registry which is located within the consolidated European system.

The UK government is considering contingency measures for this scenario and will issue further advice later this year. In the meantime:

  • account holders who use their accounts to trade Certified Emission Reductions and Emission Reduction Units may want to consider opening an account in another country’s registry for this purpose
  • Clean Development Mechanism project developers should consider the information in this notice carefully before approaching the UK’s Designated National Authority for new letters of approval
  • Clean Development Mechanism project developers who have previously received a letter of approval from the UK Designated National Authority may want to consider whether to reapply for a letter of approval from a different Designated National Authority and the timescales for securing this

Geological storage of carbon dioxide

Developers of facilities for geological storage of carbon dioxide in areas where the Oil and Gas Authority is the licensing authority may contact the Oil and Gas Authority for further information about its implementation of changes to the licensing regime, once these changes come into force. Installations do not need to be located inside this area, to access geological storage facilities within this area.

Elsewhere (that is, in Scotland and Northern Ireland) developers should contact the relevant devolved administration to confirm when regulatory updates would be implemented.

More information

BEIS and regulatory authorities will continue to work closely with businesses, trade associations and stakeholders on the implications of a ‘no deal’ and communicate information and updates online.

Information on the EU Emissions Trading System and Monitoring, Reporting and Verification is available on the European Commission’s website.

Immediate queries on the EU Emissions Trading System sections can be directed to the team at BEIS: eu.ets@beis.gov.uk

More information on geological storage of carbon dioxide will be made available on GOV.UK.

More information about climate change generally will also be provided on GOV.UK.

Energy-using products: ecodesign and energy labelling

Before 29 March 2019

In the UK, the Department for Business, Energy and Industrial Strategy (BEIS) has lead responsibility for improving the sustainability and energy efficiency of energy-using products in households and the commercial sector. This is achieved by EU Ecodesignand Energy Labelling measures which are enforced under domestic law (Ecodesign for Energy-related Products Regulation 2010 and Energy Information Regulations 2011.

Each EU Member State must appoint a Market Surveillance Authority (MSA) for control and enforcement activities. In the UK, for ecodesign, this is the Office for Product Safety and Standards, and for energy labelling, both the Office for Product Safety and Standards and Trading Standards (in GB) and the Department for the Economy (in NI).

The EU product database is a new online portal that will come into force from 1 January 2019. It will have an ‘open’ section for consumers to view product-related information and a ‘closed’ compliance section for Market Surveillance Authorities to view technical product-related information.

Suppliers are required to input relevant information into the database:

  • from 1 January 2019 for energy-using products placed on the EU market from this date
  • by 30 June 2019 for energy-using products placed on the EU market (including the UK market) between 1 August 2017 and 1 January 2019

A re-classification of energy labels is scheduled and new labels with A – G energy rating classes (instead of A+++ – G energy rating classes) will be phased in over time as planned.

After March 2019 if there’s no deal

For ecodesign and energy labelling regulations which will enter into force and apply before the point of exit, regulatory alignment will be maintained by bringing relevant EU regulations into domestic law.

After the point of exit, the UK will keep step with equivalent standards wherever possible and appropriate, or even exceed them where it is in the UK’s interest to do so.

Implications

There will be no immediate change to trading practices.

Enforcement activities will continue as normal, carried out by the Office for Product Safety and Standards, Trading Standards and the Department for the Economy (NI) which will maintain their roles as Market Surveillance Authorities.

Actions for businesses and other stakeholders

In terms of the EU product database:

  • all consumers will still have access to the ‘open’ section of the database
  • however, the UK’s Market Surveillance Authorities will no longer have access to the ‘closed’ compliance section of the database.

There will be changes for UK and EU suppliers regarding the EU product database. UK and EU suppliers placing relevant energy-using products:

  • on the EU market will have to enter relevant information into the database.
  • on the UK market will not be required, under domestic law, to enter relevant information into the database, including for those products placed on the market between 1 August 2017 and 1 January 2019 after the point of exit.

UK and EU suppliers must ensure that relevant energy-using products:

  • placed on the UK market comply with minimum UK ecodesign and energy labelling standards.
  • placed on the EU market comply with minimum EU ecodesign and energy labelling standards.

UK and EU retailers must ensure that relevant energy-using products:

  • placed on the UK market comply with minimum UK energy labelling standards.
  • placed on the EU market comply with minimum EU energy labelling standards.

There will be no immediate impact on UK or EU consumers in regard to ecodesign and energy labelling standards.

More information

For additional information regarding goods, please refer to technical notices:

More information on the Office for Product Safety and Standards can be found on its website.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including ‘no deal’. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 108 on Consumer rights if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice provides guidance to businesses and consumers setting out the UK approach to the consumer legislative framework if the UK leaves the EU in March 2019 with no agreement in place.

If the UK leaves the EU in March 2019 without a deal, find out how this would affect:

  • consumer protection and cross-border protection
  • alternative dispute resolution and online dispute resolution;
  • package travel
  • timeshare
  • textile labelling
  • footwear labelling

Consumer protection and cross border enforcement

Before 29 March 2019

EU consumer protection legislation ensures consumers across the EU can buy goods and services from other EU countries, knowing that the protections and safety standards are the same or similar in every EU Member State.

The consumer protection regime is supported by a reciprocal cross-border consumer enforcement framework and the civil judicial cooperation framework (covered in the Technical Notice on civil judicial cooperation). The former allows cooperation between EU Member State consumer enforcement authorities, and the latter provides access to redress for consumers when their rights have been breached. For example, if a UK consumer buys an item from an EU based trader and the item does not arrive or there is a problem, the UK consumer can use UK law and the UK courts for redress, and judgment will be recognised in the EU Member State in question. The frameworks include the ability for consumers to gain access to advice and guidance on their rights and who to contact in order to make a complaint or take action through dispute resolution mechanisms to resolve issues.

After March 2019 if there’s no deal

The government is taking steps to ensure that after exit UK consumers will retain the protections they currently have when buying from UK businesses. This means making certain changes in UK legislation through the EU Withdrawal Act to ensure that the law operates effectively after exit.

As the UK will no longer be a Member State, there may be an impact on the extent to which UK consumers are protected when buying goods and services in the remaining Member States. The laws of those states are similar but may differ in some areas to UK law both as respective laws evolve over time as well as due to differing levels of harmonisation between Member States in some areas. UK consumers will also no longer be able to use the UK courts effectively to seek redress from EU based traders, and if a UK court does make a judgement, the enforcement of that judgement will be more difficult as we will no longer be part of the EU. In addition, there will no longer be reciprocal obligations on the UK or EU Member States to investigate breaches of consumer laws or take forward enforcement actions.

The UK government will continue to work with the Scottish Government, Welsh Government and the Northern Ireland Civil Service to ensure the future consumer protection regime works across the UK.

Implications

UK consumers should not see any immediate differences in protection between UK law and that of EU Member States as UK and EU law is highly aligned. However consumers should always check the terms of consumer protection offered by the seller and the Member State the seller is located in to confirm if the level of protection is different from the UK level of protection. UK consumers would need to seek redress through the courts of that state rather than UK courts. For further help and advice UK consumers can continue to contact the UK’s European Consumer Centre.

Actions for businesses and other stakeholders

Businesses selling into EU countries should keep apprised of any future changes in EU Member State laws.

More information

Explanatory Memoranda will be published during the autumn alongside the Statutory Instruments to make the necessary changes to UK legislation. This will provide further information on the UK government approach to the consumer legislative framework.

Alternative Dispute Resolution and Online Dispute Resolution

Before 29 March 2019

Alternative Dispute Resolution is a process that enables disputes between a consumer and business to be settled via an independent mechanism outside the court system. The Alternative Dispute Resolution procedures ensure that consumers have access to high quality, transparent, effective redress mechanisms, regardless of where they reside in the EU.

There is currently guidance written by Chartered Trading Standards Institute which provides guidance to businesses. This is likely to be updated to reflect changes to the Online Dispute Resolution platform.

After March 2019 if there’s no deal

In relation to Alternative Dispute Resolution the government is taking steps to ensure that consumers and businesses will still be able to use the Alternative Dispute Resolution process in the same way when buying and selling in the UK.

The UK government will continue to work with the Scottish Government, Welsh Government and the Northern Ireland Civil Service to ensure the future Alternative Dispute Resolution works across the UK.

The Online Dispute Resolution platform is run by the European Commission for Member States so the UK will no longer have access to the platform.

Implications

The obligations around Alternative Dispute Resolution for businesses will not change as a result of a no deal. However, UK-based Alternative Dispute Resolution organisations will no longer be required to act in cross-border disputes. UK competent authorities, who approve Alternative Dispute Resolution providers, will no longer be required to report to the European Commission on the status of their Alternative Dispute Resolution activity.

Consumers may no longer be able to use Alternative Dispute Resolution organisations to resolve their cross-border disputes.

Businesses and consumers will no longer be able to access and use the Online Dispute Resolution platform.

Actions for businesses and other stakeholders

Businesses should continue to provide Alternative Dispute Resolution as per their current obligations.

When purchasing goods and services from a Member State, consumers may wish to check the Member State’s protection legislation prior to purchase.

Businesses should remove references to the Online Dispute Resolution platform from their websites.

UK consumers will be able to contact the UK’s European Consumer Centre (ECCN) for help and advice. (The government has committed to funding the ECCN for one year (from April 2019 – March 2020) if no deal is reached in March 2019).

More information

An Explanatory Memorandum will be published during the autumn alongside the Statutory Instrument to make the necessary changes to UK legislation. This will provide further information on the status of alternative dispute resolution and the inoperability of online dispute resolution.

Package travel

Before 29 March 2019

The Package Travel and Linked Travel Arrangements 2018 Regulations (PTR 2018) requires, in line with the EU Directive, that the UK must accept insolvency protections put in place under the rules of the relevant Member State by traders established in other Member States. In turn, traders established in the UK benefit from recognition of their insolvency protection by other Member States.

After March 2019 if there’s no deal

The insolvency protections remain the same for UK consumers buying a package holiday and/or a Linked Travel Arrangement from UK based traders. However, the mutual recognition element of insolvency protection will cease, as the mutual recognition requirements of the package travel Directive will not apply to the UK with the consequence that other Member States are unlikely to recognise the UK’s insolvency protection.

In consequence, our exit Statutory Instrument will amend the PTR 2018 so that, after exit, EU traders selling packages or Linked Travel Arrangements in the United Kingdom, or directing such activities to the UK, will be required to comply with the insolvency protection requirements under the PTR 2018 (ATOL protection, insurance, trust fund or bond) in the same way as all other traders.

Implications

Consumers should therefore be protected when purchasing packages / Linked Travel Arrangements from those traders required to comply with the PTR 2018 insolvency protection requirements. However, it will not protect consumers who purchase packages from EU based traders which are not targeting business activities at the UK. As a result, consumers should ensure that they are provided with clear information, including on the applicable insolvency protection (if any), before their purchase. Furthermore, in practice, taking enforcement action against any seller based outside the UK is likely to be more difficult than is currently the case.

Consumers can continue to contact the UK’s European Consumer Centre for help and advice.

Businesses should be aware that remaining Member States are unlikely to recognise UK insolvency protection. Traders may therefore need to comply with multiple insolvency regimes across the EU and will have to make themselves familiar with the regime of the country they are selling into.

Actions for businesses and other stakeholders

Providers will have to obtain insolvency protection in the Member State where they are established, rather than in each Member State where they do business. Therefore, travel providers will have to comply with multiple insolvency regimes across the EU and will have to make themselves familiar with the regime of the country they are selling into. EU-based organisers that actively market and sell packages in the UK will be required to comply with the UK insolvency protection rules.

No action is needed if buying from a UK based business. When consumers purchase travel from EU businesses they will be covered by the insolvency protection legislation of that Member State.

If a package travel organiser is not based in the UK, or does not direct its business to the UK, consumers should ensure that they are provided with clear information, including on the level of insolvency protection, before their purchase.

More information

An Explanatory Memorandum will be published during the autumn alongside the Statutory Instrument to make the necessary changes to UK legislation. This will provide further information on the UK package travel and Linked Travel Arrangements regime.

Timeshare

Before 29 March 2019

Currently, UK consumers are protected in the same way by the timeshare protections wherever they are buying their timeshare from in the EU, and wherever the timeshare property itself is based in the EU.

After March 2019 if there’s no deal

The government is taking steps to ensure that the protections UK consumers currently have when buying timeshares remain the same if the contract is made under UK law.

Consumers that enter into a contract which is not governed by the law of the UK and instead is governed by the law of a Member State, will be subject to any timeshare protections offered to non-EU citizens by that Member State.

Implications

Consumers entering into contracts not governed by the law of the UK will be subject to the Member State’s protections which could differ in each Member State depending on how that Member State has implemented the EU directive relating to Timeshare.

EU law specifies that timeshare contracts must be written in the language of the consumer’s Member State. As the UK will no longer be a Member State, UK consumers will not be able to specify having the contract in English.

Actions for businesses and other stakeholders

UK businesses operating in the UK but selling timeshare based in EU Member States, may wish to stay apprised of UK and EU member state law.

Consumers interested in purchasing a timeshare should consider ensuring they understand the timeshare protection offered to them by the governing country of the contract.

More information

An Explanatory Memorandum will be published during the autumn alongside the Statutory Instrument to make the necessary changes to UK legislation. This will provide further information on the UK approach to timeshare.

Textile labelling

Before 29 March 2019

The current requirements to label or mark textile products with their textile fibre composition and indicate the presence of non-textile parts of animal origin in textile products are found in Regulation (EU) No 1007/2011 on textile fibre names and related labelling and marking of textile products.

The current process for approving new textile fibre names and manufacturing tolerances for the EU market under Regulation (EU) No 1007/2011 is carried out by the European Commission.

The Textile Products (Labelling and Fibre Composition) Regulations 2012 is a piece of UK law that provides UK enforcers with powers to investigate and carry out enforcement action against breaches of Regulation (EU) No 1007/2011.

After March 2019 if there’s no deal

Regulation (EU) No 1007/2011 will be retained into UK law through the EU Withdrawal Act. It will then be amended to ensure it functions effectively. The requirements the retained regulation sets out will only apply to textile products when these are placed or made available in the UK market, rather than the EU.

The effects of these proposed amendments are as follows:

The requirements the retained regulation sets out will only apply to textile products when these are placed or made available on the UK market, rather than the EU.

The Secretary of State will be responsible for approving a new textile name or manufacturing tolerance for the UK market.

A UK Secretary of State will be able to modify, through secondary legislation, the same requirements of the regulation that the European Commission is currently able to modify through delegated acts. These requirements are as follows:

  • the list of approved textile fibre names
  • minimum requirements for the technical file submitted when a manufacturer applies for a new textile fibre name
  • special provisions for the labelling and marketing of certain textile products such as corsets and embroidered textiles
  • the list of textile products for which labelling or marking is not mandatory.
  • the list of textile products for which inclusive labelling is sufficient set out in ANNEX VI of Regulation (EU) No 1007/2011 as retained into UK law.
  • the list of items not to be taken into account for the determination of fibre composition
  • the methods for the quantitative analysis of binary and ternary textile fibre mixtures
  • the agreed allowances (testing tolerances) used to calculate the mass of fibres contained in a textile product

Implications

The requirements the retained regulation sets out will only apply to textile products when these are placed or made available on the UK market, rather than the EU.

Actions for businesses

The economic operator (usually a business or retailer) placing textile products on the UK market will be responsible for complying with the existing requirements to label or mark textile products with their fibre composition and as such should consider taking steps to ensure compliance.

Businesses wishing to introduce a new textile name or manufacturing tolerance should make their application to the Secretary of State.

More information

The government will publish guidance on the process for economic operators to apply for new textile fibre names and new manufacturing tolerances, and the process by which the Secretary of State will assess these applications.

An Explanatory Memorandum will be published during the autumn alongside the Statutory Instrument to make the necessary changes to UK legislation. This will provide further information on the labelling or marking textile products.

Footwear labelling

Before 29 March 2019

The Footwear (Indication of Composition) Labelling Regulations 1995 (the “1995 Regulations”) mandate a labelling system to provide symbols to inform consumers about the materials used in the main components of footwear. The 1995 Regulations also impose different legal obligations on the ‘responsible person’ (i.e. the manufacturer, their agent established in the Community, or the person who first makes the footwear available on the Community market) and the ‘retailer’.

The 1995 Regulations implement an EU Directive: Directive 94/11/EC of the European Parliament and of the Council of 23 March 1994 on the approximation of the laws, regulations and administrative provisions of the Member States relating to labelling of the materials used in the main components of footwear for sale to the consumer.

After March 2019 if there’s no deal

The definition of a ‘responsible person’ in relation to footwear products included in the 1995 Regulations will be changed to the following:

  • the manufacturer (this has not changed from the 1995 Regulations);
  • the manufacturer’s authorised agent established in the UK (instead of the EU)
  • the person who first places the footwear on the UK market (instead of the EU market)

The obligations of the 1995 Regulations will only apply to footwear when they are placed on the UK market, rather than the EU market.

As a result of this amendment, some UK-based businesses previously only responsible for meeting the obligations of a ‘retailer’ will now have to meet the legal obligations of the ‘responsible person’ under the UK regulations. This will mostly affect retailers that sell footwear imported from an EU based business. See Footwear Regulations here.

The impact of a UK-based retailer becoming a ‘responsible person’ is that they would become responsible for:

  • the accuracy of the footwear label
  • supplying the labelling to be conveyed upon the footwear

The obligations conferred on ‘retailers’ under the 1995 regulations are to ensure the footwear is labelled in accordance with the requirements of the 1995 Regulations when it is offered to sale for consumers – in practice this means ensuring a label is present.

Implications

The common labelling system for footwear will remain the same. However the responsibility for ensuring the accuracy of the labelling of footwear imported from the EU will, in future, fall to UK-based businesses.

Actions for businesses

All UK and EU businesses which know that they will begin placing footwear on the UK market once the UK exits from the EU should consider checking the presence and accuracy of footwear labels.

More information

An Explanatory Memorandum will be published during the autumn alongside the Statutory Instrument to make the necessary changes to UK legislation. This will provide further information on the legal responsibilities of manufacturers and retailers to indicate the main components of footwear.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

Annex A

Relevant legislation

Consumer Rights Act 2015 Parts 1 & 2 Provides essential contractual rights and remedies for consumers – covering the sale of goods, services and digital content to consumers by business; outlaws unfair terms in standard consumer contracts.

Consumer Rights (Payment Surcharges) Regulations 2012 Preserves essential consumer rights which prohibits traders in England, Wales, Scotland and NI from charging consumers more than the direct cost borne by the trader for the use of a given means of payment, for credit and debit cards. This will now only apply where the payment service provider is located in the UK.

Consumer Protection from Unfair Trading Regulations 2008 Sets the ground rules for business-consumer relationship by outlawing misleading and aggressive practices likely to affect transactional decision by the average consumer.

Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 Regulates pre-contractual information for in-store, distance and off-premises contracts (goods and services); includes right to return goods sold at a distance and 14-day cooling-off period for off-premises contracts (right to cancel).

Crystal Glass (Description) Regulations 1973 Outlaws misleading application of specified descriptions to glass products and sets standard test for the fineness of glass.

Enterprise Act 2002– Consumers Part 8 and Schedule 13 & Schedule 5 Consumer Rights Act 2015 Sets a regime whereby enforcement authorities may apply to the courts for an injunction against infringements of domestic or EU legislation which harm the collective interests of consumers.

Regulation (EC) No 2006/2004 on Consumer Protection Cooperation Sets out co-operation and enforcement framework to allow national authorities from all EU to jointly address breaches of consumer rules when the trader and consumer established in different countries.

Alternative Dispute Resolution and Online Dispute Resolution

This notice provides guidance to businesses and consumers on the implications of EU exit on the status of alternative dispute resolution and the inoperability of online dispute resolution following the UK’s departure from the EU, in a no-deal scenario.

The notice covers changes to the following legislation:

Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 (as amended) Regulates the setting of an Alternative Dispute Resolution infrastructure, including a national single point of contact via the recognition by competent authorities of Alternative Dispute Resolution providers.

Regulation Online Dispute Resolution (ODR) for consumer disputes – Regulation (EU) No 524/2013 Provides for the establishment by the European Commission of an Online Dispute Resolution platform.

Package Travel

This notice provides guidance to businesses and consumers on the implications of a no deal EU exit in respect of UK Package travel and Linked Travel Arrangements regime.

This notice covers changes to the following legislation:

Package Travel Regulations (The Package Travel and Linked Travel Arrangements Regulations 2018) Regulates information provision, contractual rights, trader liability and consumer protection against organiser insolvency.

Timeshare

This notice provides guidance to businesses and consumers setting out the UK approach to timeshare if the UK leaves the EU in March 2019 with no agreement in place. The notice provides guidance on changes to the following legislation:

Timeshare, Holidays, Resale and Exchange Contracts Regulations 2010 Provides for extensive pre-contractual information, bans accepting any payment prior to end of 14-day cooling-off period and provides for annual choice to renew long-term holiday product contracts.

Textile labelling

This notice provides guidance to businesses about changes to the legal requirements regarding labelling or marking textile products with their textile fibre composition and an indication of the presence of non-textile parts of animal origin e.g. fur or feathers.

It also seeks to inform business how current EU processes for approving new textile fibre names and manufacturing tolerances will be repatriated to the UK.

The notice provides guidance on changes to the following legislation:

Textile Products (Labelling and Fibre Composition) Regulations 2012 Provides for domestic enforcement of the above Regulation (EU) No 1007/2011.

Footwear labelling

This notice informs businesses about changes to the legal responsibilities of economic operators (manufacturers and retailers) to indicate the main components of footwear.

The notice provides guidance on changes to the following legislation:

Footwear (Indication of Composition) Labelling Regulations 1995 Requires labelling of footwear as to its composition through the use of pictograms by the importer to the EU or the manufacturer if in the EU.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 107 on Geo-blocking of online content if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to provide clarity to consumers, business customers, traders and regulators on the UK government’s plans in relation to the Geo-Blocking Regulation in the event of a ‘no deal’ scenario.

Before 29 March 2019

The Geo-Blocking Regulation will apply from 3rd December 2018. The Geo-Blocking Regulation will prohibit the following activities:

  • blocking access to, or forced redirection away from, a website on the basis of an internet user’s EU nationality or place of residence within the EU
  • discrimination by traders on the basis of the customer’s nationality or place of residence when they are purchasing (i) goods online, (ii) electronically supplied services (such as web hosting or cloud storage, but excluding copyrighted material such as ebooks and streamed movies), or (iii) services provided in a specific physical location (such as a theme park)
  • discrimination by traders against a means of payment solely on the basis of its place of issue within the EU

After March 2019 if there’s no deal

In a ‘no deal’ scenario, the UK version of the Geo-Blocking Regulation will cease to have effect in UK law. The original EU Regulation will continue to apply to UK businesses operating within the EU, and indeed all other non-EU businesses selling goods and services into the single market.

Implications

Following repeal of the Geo-Blocking Regulation in the UK, traders from the UK, EU and third countries would not be prohibited from discriminating between EU customers and UK customers in the respects set out above. For instance a UK trader would be able to offer different terms to a UK customer compared to a French customer.

The Geo-Blocking Regulation will continue to operate in the EU. UK traders who wish to continue operating in the EU will continue to be bound by the provisions of the Geo-Blocking Regulation when dealing with EU customers. This means that a UK trader will not be able to discriminate between customers in different EU member states, for instance between a French and a German customer, in the respects set out above.

Actions for businesses and other stakeholders

UK businesses and traders who wish to continue selling goods and services into the EU will need to continue to comply with the Geo-Blocking Regulation after exit, to the extent that the Geo-Blocking Regulation (which comes into force from 3rd December 2018) prohibits discrimination as between customers in different EU member states. However, traders who are already complying with the Geo-Blocking Regulation prior to exit should not need to take any additional steps to comply with the Geo-Blocking Regulation after exit.

Further information

Further information on traders’ ongoing obligations in relation to EU customers are available on the EU Commission’s website.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 106 on Structuring your business if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice explains the implications for businesses which are legal entities operating across the UK-EU border, or who have taken the form of a European specific entity, in the unlikely event that the UK leaves the EU in March 2019 with no agreement in place. For the purpose of this notice, ‘UK company’ means a company incorporated in the UK and includes a subsidiary incorporated in the UK regardless of the nationality of its parent but does not include a UK branch of a company incorporated elsewhere. An ‘EU company’ means a company incorporated in the EU regardless of the nationality of its parent but does not include an EU branch of a company incorporated elsewhere. This notice covers:

  • cross border business operations
  • European specific entities

Before 29 March 2019

The UK currently follows the EU rules and regulations that fall under the area of company law, which set out how companies and other legal entities operate within the Single Market, how they register and how they operate across country borders in the EU.

This is reflected in UK law mainly through the Companies Act 2006 and regulations made under that Act. For other types of legal entities which have their own specific legislation, this generally mirrors the legislation for companies (albeit with modifications) and therefore much of this notice will be relevant to these entities also.

However, this notice is expressed in terms of the effect for companies as this is the most commonly used corporate form.

EU law also provides frameworks for certain EU specific entities to form and operate: European Economic Interest Groupings, European Public Limited-Liability Companies (or Societas Europaea), and European Groupings of Territorial Cooperation.

After March 2019 if there’s no deal

The government will ensure that the UK continues to have a functioning regulatory framework for companies and that, as far as possible, the same laws and rules that are currently in place continue to apply. This will be done by using the powers in the EU Withdrawal Act 2018 to correct deficiencies in our statute book arising from our exit from the EU.

The UK government will continue to work with the Scottish Government, Welsh Government and the Northern Ireland Civil Service, to ensure the future company law regime works across the UK.

Cross-border business operations

For companies incorporated in countries outside of the EU, operating by way of branches within the UK, the regime applying to them will remain substantially the same. Such companies are currently third country businesses in relation to the EU, and that will remain the case. In the UK, such companies are currently subject to the overseas companies regime and the requirements relating to them as non-EU companies will not change. The overseas companies regime is in the Overseas Companies Regulations 2009, SI 2009/1801.

However, there will be changes to the cross-border regimes for UK companies operating in the EU, because the UK will no longer be an EU member state. These companies will become third country businesses in relation to the EU.

European specific entities

The European Economic Interest Groupings and European Public Limited-Liability Companies (or Societas Europaea) frameworks require that the entities are registered within an EU member state. On exit day the UK will no longer be an EU member state and the consequences of this are set out in the sections below.

Implications

Cross-border business operations

There will be no change in who can be an owner, senior manager or director of a UK company, as the UK doesn’t apply any nationality restrictions to owners or managers of UK companies.

EU companies that operate branches in the UK are currently subject to the overseas companies regime, but the requirements applicable to them will change. They will become subject to the same information and filing requirements as any other third country’s companies’ branches. However, those additional requirements are minimal. Guidance on the current requirements can be found here.

An EU company with a branch in the UK that is required by its parent law to prepare, have audited and disclose accounts will be required to file in the UK accounting documents which will include the accounts, any annual report of the directors, any report of the auditors on the accounts, and any report of the auditors on the directors’ report. Parent law in this context will be the law of the EEA state where the company is incorporated.

An EU company with a branch in the UK which does not meet this description will, after exit day, have to comply with the provisions of Part 15 of the Companies Act 2006 that have been applied (with modifications) to overseas companies by the Overseas Companies Regulations 2009.

UK citizens may face restrictions on their ability to own, manage or direct a company registered in the EU, depending on the sector and EU member state in which the company is operating. This could involve meeting additional requirements on the nationality or residency of individuals allowed to act as senior managers or directors and/or limits on the amount of equity that can be held by non-nationals.

Further information on the requirements in EU member states can be found via the European e-Justice Portal. Information on restrictions in particular service sectors in other countries including EU member states can be found via the Organisation for Economic Co-operation and Development.

UK businesses that own or run business operations in EU member states will likely face changes to the law under which they operate, depending on the sector and EU member state. For example, this could involve meeting additional requirements in order to acquire real estate and/or requiring additional approvals to operate. Restrictions may be more burdensome for branches or representative offices, as opposed to subsidiaries which have their own legal identity and are incorporated in the EU member state concerned.

UK companies and limited liability partnerships that have their central administration or principal place of business in certain EU member states may no longer have their limited liability recognised. This is the case in certain jurisdictions that operate the ‘real seat’ principle of incorporation.

Cross-border mergers involving UK companies will no longer be able to take place under the EU Directive 2005/56/EC – cross-border mergers of limited liability companies (although they can be structured through private contractual arrangements). As the UK will no longer be an EU member state, the remaining EU member states will no longer be required to give effect to cross-border mergers that do not complete prior to the UK exiting the EU.

UK investors in EU businesses (whether these are individuals, businesses or investment funds) may face restrictions on the amount of equity that they can hold in certain sectors in some EU member states. For example, a UK audit firm could no longer be the majority owner of an EU audit firm because it would no longer be recognised among the majority of qualified owners or managers that an EU audit firm is required to have under EU law.

European specific entities

European Economic Interest Groupings, European Public Limited-Liability Companies (or Societas Europaea) and European Groupings of Territorial Cooperation will no longer be able to be registered in the UK. Those that remain registered in other EU member states after exit will still be able to trade in the UK as now.

UK members of European Economic Interest Groupings registered in other EU member states will be unable to continue to participate in the European Economic Interest Grouping unless the contract under which they are formed allows them, or is amended to allow them, to do so.

For Societas Europaea and European Economic Interest Groupings that are registered in the UK and have not made alternative arrangements before exit, the government will put in place a way of automatically converting them into a new UK corporate structure so that they will have a clear legal status post exit. For Societas Europaea this will include maintaining the employee involvement provisions.

The European Groupings of Territorial Cooperation regime already has an option allowing public authorities of non-EU countries to participate and the government will keep this.

Actions for businesses and other stakeholders

Cross-border business operations

UK citizens operating in the EU may wish to seek professional advice or contact the government of the country in which they own, manage, or direct a company for more information.

UK businesses operating in the EU may wish to seek professional advice or contact the government of the country in which they operate for more information.

UK companies and limited liability partnerships that have their central administration or principal place of business in an EU member state may wish to consider whether they need to restructure to satisfy the requirements for incorporation in that EU member state.

Any UK companies that are undertaking a cross-border merger will need to ensure that they can complete the merger before exit and may want to seek legal advice on their individual case.

UK investors in EU businesses may wish to make themselves aware of any restrictions that might be placed on them within the EU member state in which they are operating.

Further information on the requirements in EU member states can be found via the European e-Justice Portal. Information on restrictions in particular service sectors in other countries including EU member states can be found via the Organisation for Economic Co-operation and Development.

European specific entities

Before exit, European Economic Interest Groupings registered in the UK may want to consider transferring their official address to another EU member state and should make themselves aware of the timeframes for so doing. European Economic Interest Groupings with their official address in other EU member states can have an establishment in the UK; they will need to ensure that they comply with the registration requirements within the regulations.

Societas Europaea have the option of converting to a UK public limited company (plc) provided they have been registered as a Societas Europaea for at least 2 years or have had 2 sets of annual accounts approved. They may also want to consider whether they wish to move their seat of incorporation to another EU member state. They will need to consider the relevant timeframes for either course of action.

Owners of Societas Europaea and European Economic Interest Groupings may wish to maintain awareness of the further information that will be published on the automatic conversion of their entities to a new UK structure by ensuring that the contact details held by Companies House are up to date.

After exit, Societas Europaea registered in EU member states will need to register their existing and any future UK establishments/branches with Companies House.

More information

For further information, please also see:

Companies House for information on companies and other corporate entities, including how to set up company, filing requirements and publication requirements

Overseas Companies in the UK Registration and Disclosure Obligations for information on the registration and disclosure requirements for overseas companies in the UK

The technical notice on Accounting and audit

The technical notice on Providing services including those of a qualified professional

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 105 on Providing services including those of a qualified professional if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Recognition of professional qualifications

Before 29 March 2019

The Mutual Recognition of Professional Qualifications (MRPQ) Directive is a reciprocal arrangement which enables European Economic Area (EEA) nationals to have their professional qualifications recognised in an EEA State other than the one in which the qualification was obtained. It provides several routes to do so, including:

  • automatic recognition based on EEA-wide standards or professional experience (recognition based on EEA-wide standards applies to: doctors, nurses, dental practitioners, veterinary surgeons, midwives, pharmacists and architects)
  • the ‘general system’ under which, subject to certain exceptions, regulators must not refuse, on grounds of inadequate qualifications, applicants who seek to practise a regulated profession in the UK if they hold the qualifications required by an EEA State. In certain cases, regulators may require an applicant to complete either an aptitude test or an adaptation period before allowing the applicant to practise the regulated profession in the UK
  • a mechanism for those who want to work on a temporary or occasional basis in another EEA State, including the role of the regulator and the procedures and formalities with which an applicant must comply

The Directive applies in general to regulated professions unless otherwise stated. A non-exhaustive list of professions covered by the Directive is available in the database of regulated professions.

The Directive also provides rules for recognition of non-EEA qualifications held by EEA nationals.

The current version of the MRPQ Directive (Directive 2005/36/EC as amended by Directive 2013/55/EU) has been implemented in the UK by the European Union (Recognition of Professional Qualifications) Regulations 2015 (MRPQ Regulations). This is supplemented by sector-specific legislation.

After March 2019 if there’s no deal

The MRPQ Directive will no longer apply to the UK and there will be no system of reciprocal recognition of professional qualifications between the remaining EEA states and the UK.

The UK will ensure that professionals arriving in the UK from the EEA after the exit date will have a means to seek recognition of their qualifications. However, this will differ from the current arrangements. For example, specific mechanisms and functions linked to EU membership, such as automatic recognition, or temporary access to regulated activities on the basis of a declaration, will no longer be applicable. Tools such as the Internal Market Information system will also no longer be available in the UK.

The government will continue to work with the Scottish Government, Welsh Government and the Northern Ireland Civil Service as well as regulatory bodies to ensure the future system for the recognition of professional qualifications works across the UK. These arrangements are without prejudice to the rights and privileges accorded, by virtue of the Common Travel Area, to Irish and UK citizens when in each other’s state.

The government will share details of the new procedure in due course and applicants should contact the relevant regulators at the appropriate time.

Implications

There are implications for all the professions named in this notice as well as businesses.

For EEA professionals (including UK nationals holding EEA qualifications) who are already established and have received a recognition decision in the UK, this recognition decision will not be affected and will remain valid.

EEA professionals (including UK nationals holding EEA qualifications) who have not started an application for a recognition decision in the UK before exit will be subject to future arrangements, which will be published before exit day.

EEA professionals (including UK nationals holding EEA qualifications) who have applied for a recognition decision and are awaiting a decision on exit day will, as far as possible, be able to conclude their applications in line with the provisions of the MRPQ Directive.

Individuals with UK qualifications seeking recognition to offer services in the EEA should check the host state national policies. The EU Commission has stated that decisions on the recognition of UK qualifications in EU countries before exit day are not affected.

Actions for businesses and other stakeholders

EEA professionals (including UK nationals holding EEA qualifications) who are already established and have received a recognition decision in the UK do not need to take any action as the recognition decision will not be affected by the Withdrawal Act or the Statutory Instrument.

Further guidance will be issued to provide professionals and employers with more details concerning recognition decisions pending on exit or issued after exit.

More information

In 2015, the government published guidance for regulatory bodies of professional qualifications. It sets out the obligations placed upon them by the revised Mutual Recognition of Professional Qualifications Directive 2005/36/EC. In the scenario where the UK leaves the European Union on 29 March 2019 without a formal agreement, the published guidance will be updated to reflect the changes that are made to the MRPQ Regulations.

The Lawyers’ Establishment Directive and the Lawyers’ Services Directive

Before 29 March 2019

The qualification recognition arrangements under the MRPQ Directive cover a wide range of lawyers. In addition to this framework, there is a specific framework setting out rights for listed lawyers to provide legal services and to establish on a permanent basis in EEA States other than the one in which the qualification was obtained.

This framework takes the form of two Directives:

  • The Lawyers’ Services Directive (Directive 77/249/EEC) – which allows specified lawyers to provide legal services on a temporary basis in a Member State other than the one in which they qualified. It clarifies the professional and regulatory rules applicable, the professional title they should use and the conditions for providing services
  • The Lawyers’ Establishment Directive (Directive 98/5/EC) – a reciprocal arrangement which allows specified lawyers in one Member State to establish and practise permanently in another Member State, under their existing title, and the conditions for doing so (Registered European Lawyers). It also allows lawyers that are practising in another Member State to be admitted to the profession in that Member State, after 3 years of practice without having to go through the usual qualification routes

After March 2019 if there’s no deal

If we leave the EU without an agreement, the Lawyers’ Services Directive and Lawyers’ Establishment Directive will no longer apply to the UK and there will be no system of reciprocal arrangements under which EEA lawyers (including UK nationals holding EEA qualifications) can provide services and establish on a permanent basis. We will therefore revoke the implementing legislation and EEA lawyers will be treated in the same way as other third country lawyers.

EEA lawyers will be able to practise in England and Wales under the regulatory arrangements and rules that apply to lawyers from other third countries. However, this change will mean:

  • EEA lawyers will no longer be able to provide legal activities normally reserved to advocates, barristers or solicitor under their home state professional title in England/Wales and Northern Ireland. (Reserved activities are: the exercise of a right of audience, the conduct of litigation, reserved instrument activities (conveyancing), probate activities, notarial activities and the administration of oaths)
  • EEA lawyers will no longer be able to seek admittance to the English/Welsh or Northern Irish profession based on experience

As outlined above, the UK will ensure that professionals arriving in the UK from the EEA after the exit date will have a means to seek recognition of their qualifications. This will include lawyers. We will share details of the new procedure in due course and applicants should contact the relevant regulators at the appropriate time.

There will be transitional arrangements for Registered European Lawyers.

Scottish regulatory arrangements for EEA and third country lawyers are different to those in England and Wales, or Northern Ireland.

These arrangements are without prejudice to the rights and privileges accorded, by virtue of the Common Travel Area, to Irish and UK citizens when in each other’s state.

Implications and actions for individuals and businesses

EEA lawyers who have already been admitted to the legal profession, allowing them to use the professional title of solicitor or barrister in England/Wales or Northern Ireland on the exit date will be able to continue to practise under that title and provide regulated legal activities, in accordance with the relevant regulator’s rules. They will not need to take any action.

EEA lawyers who have applied for admission to the English/Welsh or Northern Irish legal profession prior to exit day (through routes available under either the MPRQ Regulations or European Communities (Lawyer’s Practice) Regulations 2000), and are awaiting a decision on the exit date, will, as far as possible, be able to complete their recognition process under pre-exit rules.

Registered European Lawyer status – which allows EEA lawyers to practise permanently in the UK under their existing title – will cease on the exit date. From exit day, EEA lawyers will be treated in the same way as other lawyers qualified in any other third country jurisdiction.

Existing Registered European Lawyers will need to consider whether they intend to provide regulated (‘reserved’ in England and Wales) legal activities. If so, they will need to take steps to transfer into the profession of the relevant UK jurisdiction (England/Wales or Northern Ireland) to continue providing those services and should contact their UK regulator for advice.

Employers of Registered European Lawyers and other EEA lawyers providing services in England/Wales and Northern Ireland will need to consider whether their employees will provide regulated (‘reserved’) legal activities. If so, they will need to take steps to make sure their employee can continue providing those services, for example by transferring into the profession of the relevant UK jurisdiction, or working under the supervision of a lawyer qualified to undertake those activities, subject to regulatory rules.

Employers of Registered European Lawyers and other EEA lawyers should contact their regulator for advice.

EEA lawyers who own or manage legal businesses in England/Wales or Northern Ireland will need to consider whether their business model is compliant with the relevant regulatory rules, once Registered European Lawyer status ceases, and should contact their regulator for advice.

More information

Further information, including arrangements for third country lawyers, is available from the relevant regulatory bodies: the Solicitors Regulation Authority, the Bar Standards Board (England and Wales), The Law Society of Northern Ireland and the Law Society of Scotland.

Provision of Services Regulations

Before 29 March 2019

The EU Services Directive (2006/123/EC) makes it easier for businesses to establish themselves in other Member States, and to provide services cross-border on either a temporary or permanent basis. The Services Directive is implemented into UK legislation by the Provision of Services Regulations 2009.

The Regulations simplify the rules for, and prevent unjustifiable barriers to, the provision of services. They ensure that Competent Authorities, including government departments, Devolved Administrations, local authorities and other licensing and authorisation bodies, comply with a set of regulatory principles.

The current Regulations set out the following requirements:

  • the Regulations ensure Competent Authorities cannot impose discriminatory, disproportionate or unnecessary requirements on EEA businesses who are providing services on either a permanent or temporary basis in the UK
  • the Regulations set out the duties of businesses, detailing the requirements for contact details and other information to be made available for service recipients
  • the Regulations require Competent Authorities to notify the Secretary of State for Business, Energy and Industrial Strategy of new measures
  • the Regulations set out obligations on Competent Authorities to ensure effective administrative cooperation with their counterparts in other Member States
  • the Regulations require the government to establish an electronic assistance facility to operate as the UK’s Point of Single Contact, which is GOV.UK

After March 2019 if there’s no deal

When the UK leaves the EU, EEA businesses will be treated like other third country service providers as the Regulations will need to be amended to comply with the UK’s commitments under World Trade Organisation rules.

The Regulations will continue to ensure that businesses in the UK are not subject to disproportionate or burdensome regulation. For example, businesses and consumer rights will be protected as UK Competent Authorities will continue to regulate service provision in line with the general principles of open competition.

The government will continue to work with the Scottish Government, Welsh Government and the Northern Ireland Civil Service and Competent Authorities to ensure future arrangements for provision of services work across the UK. These arrangements are without prejudice to the rights and privileges accorded, by the Common Travel Area, to Irish and UK citizens when in each other’s state.

Implications

The scope of the UK Regulations will be amended to apply to UK nationals established in the UK and UK-established businesses. EEA businesses will no longer have preferential access rights and protections provided for by the Regulations. Competent Authorities will regulate EEA businesses in the same way they regulate third country service providers. The UK services market is highly liberalised and it is not envisaged that EEA businesses will face additional barriers to entry to the UK Services market.

UK businesses providing services in the EEA would no longer be covered by the EU Services Directive. As a result, countries in the EEA could treat them in the same way as they treat third country service providers. In many EEA countries, the regime for third countries has different requirements. This could result in additional legal and administrative barriers for UK firms, such as requirements based on nationality, re-submitting information to regulators and potential loss of access to any online portal to complete mandatory applications and licenses where this is only available to EEA nationals. The tangible impacts this would have on businesses will likely vary depending on sector and the Member State.

A ‘No Deal’ scenario will also mean changes for UK nationals providing services in person into EEA countries, whether on a short term ‘fly in, fly out’ basis, longer term movement to provide services to clients, or placements within other parts of the business. Businesses should check whether a visa and/or work permit is required and otherwise comply with the immigration controls in place in each Member State where the service is being provided in person. This would vary depending on the Member State in question. If the provision of services relies on a UK qualification being recognised by a Member State regulator, individuals should check the host state national policies. The EU Commission has stated that decisions on the recognition of UK qualifications in EU Member States before exit day are not affected.

Actions for businesses and other stakeholders

UK businesses will continue to be obliged to provide the required information for service recipients and to maintain a complaints procedure. Businesses looking to provide services in the UK will continue to benefit from the Regulations as Competent Authorities should continue to design authorisation schemes and licensing requirements that are proportionate and justified in the public interest.

Competent Authorities will be able to regulate EEA service providers as third country service providers. Regulators will have the choice to impose more restrictive requirements on EEA service providers, in line with their new status as third country service providers. Individual Competent Authorities will be responsible for advising businesses on any future changes to their processes and any changes are likely to be subject to consultation allowing businesses time to make necessary preparations.

More information

In 2009, the government published guidance providing businesses and Competent Authorities (who set licensing requirements and authorisation schemes for businesses) with detailed advice on the principles and suggested direction for the application of the Services Directive. In the scenario where the UK leaves the European Union on 29 March 2019 without a formal agreement, the published guidance will be updated to reflect the changes that are made to the Provision of Services Regulations 2009. It would provide further information on the restrictions requirements that may be imposed on EEA service providers.

SOLVIT

Before 29 March 2019

The SOLVIT network was established in 2002 following a European Commission Recommendation of 7 December 2001. SOLVIT Centres in each EU and EEA Member State work with each other to try to resolve informally complaints that arise following a decision issued by a public authority or regulator that affects the EU single market rights of EU businesses and citizens. SOLVIT provides an informal alternative to filing a court case, submitting a formal complaint to the European Commission or putting forward a petition.

People who encounter a problem exercising their rights apply to their ‘Home Centre’, usually in their home country. The Home Centre prepares the case and sends it to the SOLVIT Centre in the country where the problem occurred (the Lead Centre), which then deals with the authority or regulator in question.

After March 2019 if there’s no deal

When the UK has left the EU, it will no longer have access to the SOLVIT network. The UK will close its SOLVIT Centre, will not accept any new cases and will close any unresolved open cases after exit day.

Implications

As the UK SOLVIT Centre will close, there are implications for UK citizens and business as well as EU and EEA citizens and business in terms of raising concerns.

Actions for businesses and individuals

UK citizens and businesses will have to raise concerns directly with the national authorities of the relevant EU or EEA Member State.

EU and EEA citizens and businesses will have to raise concerns directly with UK national authorities.

More information

Stakeholders will be able to find further information on rules and rights after the UK exits the EU on www.gov.uk and in other technical notices.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the EEA and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 104 on Accounting and audit if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a ‘no deal’ scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice explains the implications for accounting, corporate reporting and audit in the unlikely event that the UK leaves the EU in March 2019 with no agreement in place. For the purpose of this notice, ‘UK company’ means a company incorporated in the UK and includes a subsidiary incorporated in the UK regardless of the nationality of its parent but does not include a UK branch of a company incorporated elsewhere. An ‘EU company’ means a company incorporated in the EU regardless of the nationality of its parent but does not include an EU branch of a company incorporated elsewhere. This notice covers:

  • accounting and corporate reporting
  • audit

Before 29 March 2019

The UK currently follows the EU rules and regulations that fall under the areas of accounting, corporate reporting and audit. These rules and regulations set out how companies and other legal entities report on their financial activity, corporate governance arrangements and how those reports are audited. This is reflected in UK law mainly through the Companies Act 2006 and regulations made under that Act.

For other types of legal entities which have their own specific legislation, this generally mirrors the legislation for companies (albeit with modifications) and therefore much of this notice will be relevant to these entities also. However, this notice is expressed in terms of the effect for companies as this is the most commonly used corporate form.

After March 2019 if there’s no deal

The government will ensure that the UK continues to have a functioning regulatory framework for companies and that, as far as possible, the same laws and rules that are currently in place continue to apply. This will be done by using the powers in the EU Withdrawal Act 2018 to correct deficiencies in our statute book arising from our exit from the EU.

The UK government will continue to work with the Scottish Government, Welsh Government and the Northern Ireland Civil Service, to ensure the future company law regime works across the UK.

Accounting and corporate reporting

The corporate reporting regime will be unchanged in many respects; however, certain changes are necessary to reflect that the UK is no longer a Member State.

Audit

The rules relating to audits of UK companies operating solely within the UK will be unchanged, but there will be additional requirements relating to the audits of UK companies operating cross-border, and to the provision of audit services cross-border.

The UK will unilaterally provide a transitional period in the field of audit until the end of December 2020. During this transitional period individuals will be able to continue to apply for their EU audit qualifications to be recognised in the UK and EU auditor registrations will continue to be recognised in the UK. Additionally, EU audit firms will continue to count towards the majority of appropriately qualified persons test for owning UK audit firms. These arrangements are set out in more detail in the sections below.

Implications

Accounting and corporate reporting

UK incorporated subsidiaries and parents of EU businesses will continue to be subject to the UK’s corporate reporting regime. However, certain exemptions in the Companies Act 2006 relating to the preparation of individual accounts will no longer be extended to companies with parents or subsidiaries incorporated in the EU. For example, a UK company is currently exempted from having to prepare individual accounts if it is dormant, and part of a group of companies with an EU parent company that prepares group accounts. This exemption will only continue to apply after exit if the parent company is established in the UK.

UK businesses with a branch operating in the EU will become third country businesses and will be required to comply with specific accounting and reporting requirements for such businesses in the Member State in which they operate. Complying with the accounting and reporting requirements of the Companies Act 2006 may no longer be treated by those Member States as sufficient.

UK companies listed on an EU market may also be required to provide additional assurance to the relevant listing authority that their accounts comply with International Financial Reporting Standards as issued by the International Accounting Standard Board. This will need to be done in accordance with EU third country requirements. In the short term, this could lead to changes to the compliance statements which are required within the annual accounts submitted to listing authorities.

As set out above there will be changes to reporting requirements which will have implications for how UK accounting and company secretariat service providers interact with their clients. This could lead to a need for changes to systems to capture additional information for reporting purposes as well as obtaining additional agreements and assurances from the relevant listing authorities ahead of their reporting date.

Audit

In order to be able to sign audit reports on behalf of an audit firm approved in the UK, the auditor must be in possession of a qualification recognised in the UK.

The UK will provide individual auditors with EU qualifications with a transitional period, from exit until the end of December 2020, during which they can apply to be recognised as auditors in the UK subject to passing an aptitude test. At the end of the transitional period EU auditors will cease to benefit from automatic recognition of their qualifications in the UK and may no longer be offered an aptitude test. However, EU qualified auditors who were recognised as a result of an aptitude test process, which is begun before the end of the transitional period, will continue to be recognised.

Auditors with Irish qualifications will not need to take an aptitude test as the Republic of Ireland uses audit qualifications granted by UK qualifying bodies.

As is currently the case, those with EU qualifications will count towards the required majority of appropriately qualified owners or managers of a UK audit firm, but only during the transitional period. After the end of the transitional period, only owners or managers with qualifications recognised in the UK will count towards the majority of appropriately qualified owners or managers of a UK audit firm. However, EU qualified individuals who were recognised as part of the management body before exit will continue to be recognised.

Audits of EU businesses seeking to raise capital by issuing shares or debt securities on a regulated market in the UK will need to be undertaken by an auditor registered with the Financial Reporting Council. The audits will need to be included in a cycle of inspections, in which the Financial Reporting Council will visit the registered auditor in the EU Member State where the business is incorporated until that Member State is recognised in the UK as having an equivalent audit regulatory framework.

EU audit firms will not be recognised among the required majority of suitably qualified owners as from the end of December 2020.

In a ‘no deal’ scenario an individual’s UK audit qualification may no longer be recognised in an EU Member State. There are exceptions such as Ireland where qualifications used are those offered by UK qualifying bodies and so they will continue to be recognised as professional qualifications. Similar arrangements may apply for some UK qualifications in some other Member States.

Audits of UK businesses seeking to raise capital by issuing shares or debt securities on a regulated market in the EU will need to be undertaken by an auditor registered as a ‘third country auditor’ in the EU Member State in which the market operates. The audit will then be in scope of a cycle of inspections by the recognised authority for that market.

A UK audit firm that wishes to own part of, or be part of the management body of, an EU firm will no longer be recognised among the required majority of EU qualified owners or managers.

Actions for businesses and other stakeholders

Accounting and corporate reporting

Subsidiaries and parents of EU companies established in the UK will need to make themselves familiar with the exemptions in the Companies Act 2006 relating to accounting and reporting requirements that will no longer be extended to UK companies with parents or subsidiaries incorporated in the EU.

Branches of EU companies established in the UK will become subject to additional requirements under the overseas companies regime, and after exit will be subject to the same accounting and reporting requirements as non-EU companies that have a branch here. The management of such branches should familiarise themselves with the additional reporting requirements that will be applicable to them.

UK businesses may wish to make themselves aware of the specific accounting and reporting requirements of any Member State in which they operate.

UK businesses listed on an EU market may wish to make themselves aware of EU third country requirements for listed entities.

UK legal, accounting and company secretariat service providers to UK or EU businesses with operations and listings in both the UK and the EU will need to ensure that their clients are aware of the additional reporting requirements as well as the need to obtain additional agreements and assurances.

Audit

Individuals with EU qualifications who are not yet recognised by the UK will want to make themselves aware of further details on the transitional period for automatic recognition of audit qualifications and the continued availability of the aptitude test, as referenced above. The test is available from recognised supervisory bodies for auditors the Institute of Chartered Accountants in England and Walesthe Institute of Chartered Accountants of Scotlandthe Association of Chartered Certified Accountants and Chartered Accountants Ireland. Individuals who are already recognised do not need to take any further action.

EU businesses operating in the UK seeking to raise capital by issuing shares or debt securities on a regulated market in the UK may wish to consider securing the services of an auditor registered with the Financial Reporting Council.

An EU audit firm wanting to be an auditor of an EU business with debt or equity traded on a UK market will need to register as a ‘third country auditor’ in the UK.

Holders of a UK audit qualification who want to provide audit services in a Member State will need to understand how their qualifications will be recognised in that Member State. This will govern their ability to sign audit reports on behalf of an audit firm approved in that Member State, and their ability to be recognised as part of the required majority of EU qualified members of the ownership or management body of an audit firm.

UK businesses who wish to raise capital by issuing shares or debt securities on a regulated market in the EU may wish to consider securing the services of a ‘third country auditor’ registered in the relevant Member State.

An audit firm wanting to be an auditor of a UK business with debt or equity traded on an EU market will need to register as a third country auditor in the Member State in which the securities market is situated or operates.

More information

For more information, please also see:

Companies House for information on companies and other corporate entities, including how to set up a company, filing requirements and publication requirements.

Overseas Companies in the UK Registration and Disclosure Obligations for information on the registration and disclosure requirements for overseas companies in the UK.

The technical notice on Structuring your business

The technical notice on Providing services including that of a qualified professional

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 103 on Export and import of hazardous chemicals if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to outline the arrangements that would come into force to regulate chemicals in the unlikely event the UK leaves the EU on 29 March 2019 with no agreement in place, with respect to the Export and Import of Hazardous Chemicals Regulation (known as the PIC Regulation).

Before 29 March 2019

The directly-applicable PIC Regulation (Regulation (EU) No 649/2012) implements in the EU the international Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, but goes further than the Convention in applying the provisions to chemicals considered to be banned or severely restricted in the EU under other chemicals law, principally the Plant Protection Products Regulation, the Biocidal Products Regulation and the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH). The PIC Regulation requires exports of listed chemicals to be notified to the importing country and for some chemicals the consent of the importing country must be sought before export can proceed.

The European Chemicals Agency (ECHA) facilitates the operation of the PIC Regulation through its ePIC IT system.

After March 2019 if there’s no deal

The UK would establish an independent standalone PIC regime so that the UK can continue to meet its international obligations under the Rotterdam Convention. This would initially be based on the existing EU regime, with amendments to enable functions presently carried out by the EU to continue. UK exporters would continue to notify exports of listed chemicals via the Health and Safety Executive (HSE) as the UK PIC Designated National Authority (DNA) (appointed jointly with the Health and Safety Executive for Northern Ireland).

UK-based companies exporting or importing listed chemicals (including to or from EU countries) would need to comply with the requirements of the UK PIC Regulation.

Implications

Although much of the existing system would continue to apply, there will be changes:

  • UK-based companies would no longer have access to ePIC and would need to use the UK’s new system that would be operated by the HSE (as the PIC DNA) to notify exports of listed chemicals from the UK. New UK procedures for notifying exports will be in place ahead of exit day so that UK businesses will use them for exports leaving the UK after 29th March.
  • The UK PIC Regulation would apply to the export of listed chemicals that are exported from the UK, including to EU countries. Companies that currently only move listed chemicals within the EU single market and do not export them outside the EU would have to start to notify these to HSE (UK DNA) under UK PIC.
  • The intention would be to recognise UK export notifications for 2019 that are already in place when we leave the EU, with no requirement to re-submit the notification for that year (export notifications are only valid in any calendar year). Where the first export in 2019 of the chemical falls after 29 March 2019, UK companies would need to notify these to UK DNA using the new UK system.
  • Where explicit consent has been given by an importing country to another EU country under the current EU PIC arrangements, it may be necessary to seek the consent of that country for UK exports of the chemical after 29 March 2019.
  • Exporters and importers would need to include in the information they submit to the UK DNA in the first quarter of each year, details of the quantities of listed chemicals exported to or imported from EU countries, as well as other countries.

More information

Further information and instructions will be published in the coming months. We aim to give businesses and individuals as much certainty as possible as soon as we can, and to ensure that any new requirements are not unduly burdensome.

Here is existing guidance on the export and import of hazardous chemicals from and into Europe under the PIC Regulation.

We also recommend reading the following technical notices:

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 102 on Health marks on meat fish and dairy products if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice provides information to certain businesses on action they would need to take before EU exit to ensure that trade can be maintained in a ‘no deal’ scenario. It is specifically aimed at UK businesses that use the health and identification marks for food products of animal origin such as meat, eggs, fish, cheese and milk.

Before 29 March 2019

If you produce meat, fish or dairy products, you must be approved to operate by a competent authority. Approval is under Regulation (EC) 853/2004 Article 4 (2).

In England, Wales, and Northern Ireland, the Food Standards Agency (FSA) is the competent authority that approves slaughterhouses, meat cutting plants, and game handling establishments. Food Standards Scotland (FSS) carries out similar functions in Scotland.

Local authorities are the competent authorities responsible for all other relevant establishments in England, Wales and Scotland.

In Northern Ireland, the FSA is also the competent authority that approves liquid milk dairy establishments and egg packers. The Department of Agriculture, Environment and Rural Affairs (DAERA) carry out hygiene official controls (on behalf of the FSA) in slaughterhouses, meat cutting plants, game handling establishments and liquid milk dairy establishments and egg packers.

You cannot produce or process meat, fish or dairy products for sale unless your establishment is approved. Your produce must carry an appropriate health or identification mark. These are requirements under Regulation 853/2004, Articles 4 and 5.

The health or identification mark must be oval in shape and state:

  • that it’s produced in the EU
  • the EU country it’s from
  • your unique approval number

The above are described respectively in Regulation (EC) 854/2004, Annex I, Section I, Chapter III and Regulation (EC) 853/2004 Annex II.

After March 2019 if there’s no deal

The FSA is not planning to change approval numbers, but the health and identification marks would need to change after 29 March 2019 if there’s no Brexit deal.

The UK would not be entitled to use any abbreviation in the health and identification marks that implies membership of the EU. The form of the health and identification marks would therefore need to change. This is a requirement under Regulation (EC) 853/2004, Article 6 (1), Regulation (EC) 853/2004 Article 5 and Annex II and Regulation (EC) 854/2004 Annex I, Section I, Chapter III.

The FSA recently wrote to industry about what the new health and identification marks should look like.

The aim is to keep any change to the health and identification marks as simple as possible, minimise the impact on industry and ensure continued recognition by consumers in the UK, EU and countries that we export to outside the EU. The new health mark design would need to meet the EU’s requirements for a third country health and identification mark to ensure recognition by EU countries. As a minimum, the EU abbreviation would have to be removed from the health and identification marks.

The FSA in England and Wales, FSS in Scotland and DAERA, in conjunction with FSA in Northern Ireland, are taking steps to ensure that operational staff will be equipped with new health marks from 29 March 2019, so they can be deployed on this date if necessary.

Local authorities will be kept informed of developments regarding proposed changes to the health and identification marks.

A consultation period will give stakeholders the chance to comment and respond to our proposals. After this, industry will be notified as soon as possible regarding the new health and identification marks. If you export meat, fish or dairy products to the EU or other countries you would need to use the new marks.

If you don’t export, the FSA is currently considering proposals that may allow the continued use of the old identification marks on domestic produce for a limited time after 29 March. This would help to minimise the impact on industry by allowing businesses to use up old stocks of packaging.

What you’d need to do

When the consultation process has been completed, you will be told what changes you will need to make to health and identification marks. These changes will be communicated by November 2018. You will need to change health and identification marks to continue exporting meat, fish and dairy products.

Defra, which has responsibility for international trade in food and feed products, will inform other countries that receive UK exports about the changes to UK health and identification marks.

More information

This guidance should be read in conjunction with Defra’s guidance on live animal and animal product exports, and on food labelling.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 101 on Classifying, labelling and packaging chemicals if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to outline the arrangements that would come into force to regulate chemicals in the unlikely event the UK leaves the EU on 29 March 2019 with no agreement in place, with respect to the Classification, Labelling and Packaging of substances and mixtures regulation (CLP) (Regulation (EC) No 1272/2008).

Before 29 March 2019

The directly-applicable CLP regulation adopts, throughout all EU countries, the UN Globally Harmonised System (GHS) for the classification and labelling of chemicals.

Under CLP chemicals are classified based on their intrinsic hazards – eg, carcinogenic, toxic for reproduction, mutagenic, flammability, toxic for the aquatic environment (not exhaustive). Consideration of the risks or regulatory consequences arising from a hazard are not part of the decision-making process on classification. If a chemical is classified as meeting one of the hazard classes, it must be labelled and packaged accordingly. The process of classification at EU level is dynamic, with changes and revisions being made through Adaptations to Technical Progress (ATPs) at least once a year, to reflect the latest scientific and technical data.

Hazard identification, through CLP, is required to apply a combination of legislative measures through the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), Biocidal Products Regulation and Plant Protection Products Regulation to deliver the necessary control measures. Technical Notices have been published for each of these regulations.

Under CLP, suppliers of hazardous chemicals are required to classify (identify the intrinsic hazardous properties), label and package the chemicals they place on the market. Manufacturers and importers are also required to notify details of their classifications to the European Chemicals Agency (ECHA) for inclusion in the Classification and Labelling Inventory.

After March 2019 if there’s no deal

The UK would establish an independent standalone chemicals regime. At the time of exit, as the UK would effectively adopt the GHS in the same way as the EU, the UK classification and labelling regime would be based on the existing EU regulatory regime in order to provide continuity for businesses, with amendments to enable functions presently carried out by the EU (including those performed by ECHA), instead being carried out in the UK by the Health and Safety Executive (HSE). This would mean companies operating in the UK dealing with HSE in place of ECHA.

The majority of CLP would continue to be applied in the UK, so the main duties and obligations on suppliers to classify, label and package hazardous chemicals placed on the market would remain in place. This means the duties on UK manufacturers, importers and downstream users to classify, label and package the substances and mixtures they place on the UK market will remain. This would also be the case for the obligations on those suppliers to identify, examine and evaluate available scientific and information on substances and mixtures where it relates to the possible physical, health or environmental hazardous properties of those chemicals to ensure all the requirements of classification are fulfilled. Suppliers must also comply with mandatory classification and labelling.

All the labelling requirements would remain in place too including the principles of precedence for the different labelling elements, the location of the label on packaging, and exemptions where available. The arrangements for dealing with both transport and CLP labelling are unchanged. You can find an overview of CLP labelling and packagingon the HSE website and on transport labelling in the moving dangerous goods section on GOV.UK.

The packaging requirements stay the same, including those for child resistant closures and tactile warning devices.

The testing arrangements, including the prohibition of testing on humans or non-human primates for the purposes of CLP, will still apply.

Manufacturers and importers will also continue to comply with the duty to notify details of the self-classifications for the substances and mixtures they place on the market. Currently, these notifications are made to the European Chemicals Agency (ECHA). In future, these notifications will be made to HSE.

Implications

Although the existing arrangements would continue to apply, there would be changes, in particular:

  • Companies importing chemicals into the UK from EU countries would become importers under CLP and would need to be sufficiently competent to comply with the duties and obligations on an importer, just as they would if importing chemicals into the UK from a non-EU country.
  • Companies would interact with HSE for UK CLP functions, for example submission of notifications of classifications of chemicals.
  • HSE would act as the CLP competent authority for the UK, on behalf of the Secretary of State and the devolved administrations. Existing harmonised classification and labelling for named substances or groups of substances would continue to have legal effect in the UK. Once we leave the EU, HSE would have the ability to put in place new arrangements for mandatory classification and labelling. These arrangements would allow new and revised classification and labelling to be proposed, considered in liaison with the devolved authorities and adopted for the UK.
  • Companies would be required to use new UK arrangements and IT tools provided by HSE. These IT tools would be a UK mandatory classification and labelling list (of substances) and a UK notification database. The new arrangements will be operational after 29 March 2019, if there’s no deal.
  • Responsibility for chemicals being imported into the EU from the UK would rest with whoever is the EU-based importer – the importer may therefore need details of the chemicals involved from the UK-based company.
  • In future, the UK will be free to make its own decisions about chemical hazard classification, including whether or not to align with decisions made in the EU or other countries.

More information

More information and instructions will be published in the coming months. We aim to give businesses and individuals as much certainty as possible as soon as we can, and to ensure that any new requirements are not unduly burdensome.

We also recommend reading the following technical notices:

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 100 on Regulating biocidal products if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to outline the arrangements that would come into force to regulate chemicals in the unlikely event the UK leaves the EU on 29 March 2019 with no agreement in place, with respect to the Biocidal Products Regulation (EU) No 528/2012 (BPR).

Before 29 March 2019

Biocidal products control harmful or unwanted organisms through chemical or biological means. The BPR regulates the EU biocides market.

BPR puts in place a two-stage process for authorising biocidal products. First, active substances (the active ingredients in biocidal products) are approved at an EU level. The evaluation work for active substances is shared amongst EU countries.

Once an active substance is approved for a specific product type, companies may apply for biocidal products of that product type, and containing that substance, to be authorised in individual EU countries.

Businesses wishing to place biocidal products on the market in more than one EU country have two options. They can either apply for EU-wide ‘Union’ authorisation, or authorisation in a ‘lead’ EU country followed by authorisation in other EU countries by a ‘mutual recognition’ process.

The Health & Safety Executive (HSE) authorises biocidal products for the UK market on behalf of the Secretary of State and the devolved administrations.

The process is facilitated by a central IT system, known as the ‘Register for Biocidal Products’ (R4BP3) that is run by the European Chemicals Agency (ECHA).

After March 2019 if there’s no deal

The UK would establish an independent standalone biocidal products regime.

The UK would put in place a stable regulatory framework for biocidal products from the point of exit, by retaining the BPR and its subsidiary regulations in national law using the provisions of the EU Withdrawal Act. At the time of exit, the national regime would be essentially the same as the current EU framework, with changes made only where they are required to enable the regime to operate effectively in a national context.

This would ensure continued levels of protection for human health and the environment and give certainty to UK businesses putting biocidal products on the market.

Implications

HSE would continue to act as the competent authority for the UK on behalf of the Secretary of State and the devolved administrations, building on its existing capacity and capability.

Companies wishing to apply for an active substance to be approved or for a biocidal product to be authorised in the UK would apply to HSE, instead of ECHA. Active substance approvals and biocidal product authorisations would be UK-specific. Companies wishing to apply for active substance approvals or product authorisations in the EU-27 would continue to apply to ECHA.

HSE would take on the functions that ECHA currently performs, where these are still relevant in the UK. For example, HSE would co-ordinate the UK-specific active substance evaluation process, in liaison with the various administrations of the UK, and would undertake technical equivalence assessments (determining whether a new source of an active substance, or material produced by a different manufacturing process, is sufficiently similar to one that has already been evaluated, so that the evaluation conclusions remain valid).

HSE would introduce its own processes and systems for receiving and processing applications. Companies would use these instead of ECHA’s systems. In the longer term HSE would build an IT system for handling applications, with interim arrangements for receiving and processing applications put in place from exit day while it is developed.

HSE would store the information and data required to support biocidal product authorisations and active substance approvals, replacing ECHA’s databases. To enable HSE to operate the biocides authorisation regime on a UK-only basis, companies may need to submit supporting data or other information to HSE that had previously been submitted to ECHA. This would be the same information as was previously submitted and HSE would not impose additional charges.

If you hold a biocidal product authorisation that is valid in the UK on exit day, it would remain valid in the UK after exit day until its normal expiry date. Active substance approvals would also remain valid until their normal expiry date.

If you have a biocidal product being processed by HSE on exit day, HSE would, where possible, continue to process this to grant a national authorisation. HSE may, however, need to ask you to re-submit the information supporting original application to enable it to complete its evaluation.

If you have an application being processed by another EU country on exit day as part of an EU-wide authorisation process (for example, a mutual recognition or union authorisation application), you would need to re-apply to the UK for a national authorisation. However, the date of your original application would be recognised for the purposes of meeting any application submission deadlines.

A UK version of the EU list of approved active substance suppliers (the so-called ‘Article 95’ list) would be established. It would operate the same way as the current EU list. Companies already on the EU list would, on exit day, be included in the UK’s list. However, to remain on the list they would need to submit supporting information to HSE. This would be the same information as was submitted to ECHA, for example, an active substance dossier or a letter of access. Companies would also have to ensure they are established in the UK. A phase-in period would be provided to give businesses time to meet these requirements.

Under the BPR authorisation holders have to be established in the EU. In the standalone national regime, authorisation holders would need to be established in the UK. There would be a phase-in period to give businesses time to make any necessary arrangements.

These arrangements will ensure there would be minimal changes at the time of exit from the current system, and that the transition will be as smooth for businesses as possible.

More information

Further information and instructions will be published in the coming months. We aim to give businesses and individuals as much certainty as possible as soon as we can, and to ensure that any new requirements are not unduly burdensome.

We also recommend reading the following technical notices:

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

 

BREXIT NO DEAL TECHNICAL NOTICE NO 99 on Control on persistent organic pollutants if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice outlines the arrangements that would come into force to regulate Persistent Organic Pollutants (POPs) if the UK leaves the EU in March 2019 with no deal.

POPs are organic compounds that are resistant to environmental degradation through chemical, biological, and photolytic processes. They persist in the environment for long periods, are capable of long-range transportation, bioaccumulate in human and animal tissue and biomagnify in food chains, and have potentially significant impacts on human health and the environment.

Exposure to POPs can cause serious health problems including certain cancers, birth defects, dysfunctional immune and reproductive systems, and greater susceptibility to disease.

Before 29 March 2019

The POPs regulations implement, manage and enforce the international Stockholm Convention agreement on POPs and the Protocol to the 1979 Convention on Long-Range Transboundary Air Pollution on POPs (CLRTAP). Competent authorities in the four UK countries manage permits and inventories. They are also responsible for some monitoring and enforcement of the regulations.

The competent authorities are:

After March 2019 if there’s no deal

The UK is a party to both the Stockholm Convention and the CLRTAP in its own right and as such would be bound by their obligations and retain existing protections. This will not change after leaving the EU.

The competent authorities would remain the same as currently.

Control of production, placing on the market and use

The criteria for managing existing substances and new substances exhibiting characteristics of POPs would remain the same. Future updates would be in accordance with Stockholm Convention decisions and agreed scientific and technical progress. The Secretary of State, Scottish Minister, Welsh Minister and Department of Agriculture, Environment and Rural Affairs in Northern Ireland are responsible for ensuring that these substances are not produced and do not reach the market once identified in accordance with restrictions set out in the annexes to the legislation. Competent authorities in the relevant country should be contacted if there are any concerns about a substance.

Exemptions from control measures

Exemptions from the restrictions agreed by the Stockholm Convention and set out in the current EU regulation would remain the same.

Polychlorinated Biphenyls (PCB) Inventories

Each competent authority is responsible for keeping a record of PCB equipment still to be destroyed. They would continue to keep this record and should be informed if any equipment is identified as containing PCBs or when they have been safely destroyed.

Annexes

The list of substances in the annexes to the current EU regulation that are controlled and monitored would be unchanged. Waste management methods and concentration limits for individual substances set out in the annexes to the EU regulation would remain unchanged. Future updates would be in accordance with Stockholm Convention decisions and an agreed scientific and technical progress.

New POPs substances

Identification of potential new POPs substances, with the exception of pesticides, may come from any source but would be managed initially through the UK chemicals regulatory regime that would replace REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals). If all the characteristics of a POP emerge from the evidence gathering, the UK would develop a dossier to present to the Stockholm Convention’s POP Review Committee (POPRC) for assessment.

We also recommend reading the following technical notices:

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 98 on Control on mercury if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice outlines the arrangements that would come into force to regulate mercury and mercury compounds and mixtures, if the UK leaves the EU in March 2019 with no deal.

Anthropogenic releases and emissions of mercury and mercury compounds are recognised internationally as global pollutants, causing harm to the environment and human health. Although all humans are exposed to mercury to some degree, some groups are at a higher risk, in particular foetuses, breast-fed babies and infants exposed through seafood consumption, either directly or through their mother, and people who are chronically exposed to high levels of mercury, for instance due to subsistence fishing or work. As a result, mercury is listed by the World Health Organization (WHO) as among the ‘ten chemicals of major public health concern’.

Before 29 March 2019

The use, disposal, storage and movement of mercury in the UK is currently regulated through a framework based on EU Regulation 2017/852 on mercury. This legislation allows the implementation of the UN Minamata Convention on Mercury, a global effort to protect human health and the environment from the adverse effects of mercury.

For business operators, the EU Regulation places restrictions on mercury-added products and industrial processes, as well as establishing an authorisation process for new mercury-added products and mercury using industrial processes that were not being manufactured or used prior to 1 January 2018.

It also requires that interim storage of mercury and mercury compounds for industrial activities is carried out in an environmentally sound manner and in line with guidance produced under the Minamata Convention.

The regulation also addresses movement and storage of mercury waste and requires operators in the chlor-alkali, natural gas cleaning, non-ferrous mining and smelting industries to report annually to the competent authorities on their mercury waste.

After March 2019 if there’s no deal

The competent authorities would remain the same as designated under the Control of Mercury (Enforcement) Regulation 1200/2017.

Exports

Currently under the EU Regulation, it is prohibited to export mercury, mercury waste, the mercury compounds/mixtures listed in Annex I of the Regulation and mercury-added products listed in Annex II, outside the EU with certain derogations.

The UK will be leaving the EU customs union, deal or no deal.

As a result, business operators should take into account that the movement of the above mercury materials, including mercury waste, from the EU to the UK would newly be classified as exports, and therefore prohibited under the current EU Regulation.

Under the EU Regulation and EU waste shipments regulation, member states would continue to be able to accept mercury waste from the UK for disposal after the UK leaves the EU. This would be subject to the conditions of the derogation for the import of mercury waste for disposal i.e. where the exporting country has no access to available conversion capacity within its own territory.

For the UK, our plans for a no deal scenario would seek to replicate the current situation for the materials listed above by allowing export from the UK to the EU only.

Imports

The restrictions and derogations on the import of mercury, mixtures/compounds of mercury, and mercury-added products listed in Annex II of the EU Regulation would continue to be the same in a no deal scenario as currently set out under Articles 4 and 5 of the EU Regulation.

Operators will be aware that, as mentioned above, export of the listed mercury materials outside the EU is prohibited under the current EU Regulation. As a consequence, operators would not be able to receive shipments from the EU. In 2017, only a small quantity of commodity mercury came to the UK from EU member states so we believe this change should have a limited impact on business.

The current requirement for business operators to obtain written consent to import mercury or the mixtures of mercury for a use allowed in the UK would continue if no agreement were reached. This would be obtained at a national level from the competent authorities, as is currently the case.

Storage

The requirements on the interim storage of mercury and mercury mixtures/compounds would continue to be the same for business operators in the UK in the case of a no deal scenario. Regulations on the technical requirements for such interim storage would be made jointly by the Defra Secretary of State and devolved ministers, whilst continuing to be based on decisions adopted under the Minamata Convention. The requirements for the storage of mercury waste, as currently set out in the EU Regulation, would also continue to be the same.

New mercury-added products and processes

The UK will continue to be a party to the Minamata Convention in its own right in a no deal scenario. EU Regulation 2017/852 on mercury would be retained in UK law under the EU Withdrawal Act 2018. In a no deal scenario, the process of providing the initial notification of a new mercury-added product or process to the competent authorities would continue to be carried out at the national level in the UK, following the same procedure.

Whilst the criteria for authorisation would also continue to be the same as those stipulated under the EU Regulation and Minamata Convention, the duty to assess and decide on whether a new mercury-added product or process is authorised would be exercised jointly by the Defra Secretary of State and devolved ministers.

This would also mean that for operators to manufacture or use new mercury-added products or processes in both the UK and EU, these would have to be authorised independently by both.

We also recommend reading the following technical notices:

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU member states. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario

 

 

 

BREXIT NO DEAL TECHNICAL NOTICE NO 97 on Importing high-risk food and animal feed if there’s no Brexit deal

Published by HMG on 12th October 2018

scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the Government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice provides information to certain businesses on action they would need to take before EU exit to ensure that trade can be maintained in a ‘no deal’ scenario. It’s specifically aimed at UK businesses that import food and animal feed both from EU and rest of the world. The notice informs them of:

  • changes to the IT system for pre-notifying the import of high-risk food and feed from outside the EU
  • changes to the import requirements for high-risk food and feed transiting through the EU from a non-EU country to the UK
  • a new requirement for the pre-notification of the import of high-risk food and feed originating within the EU

Before 29 March 2019

The current regime for importing high-risk food and feed into the UK is regulated by EU legislation.

‘High-risk’ means:

  • all products of animal origin (POAO)
  • specified food and feed not of animal origin (FNAO)

Checks are made at the border on high-risk food and feed from third countries. There are no routine checks on the import of food and feed from other EU countries.

Imports to the UK from outside the EU (third country trade) – notification of imports using TRACES

Consignments of high-risk food and feed from countries outside the EU must be pre-notified at their point of entry into the EU, using the import module of the EU Trade Control and Expert System (TRACES) system.

This means that, where a consignment from outside the EU enters the EU, the UK port or airport is made aware of the consignment’s expected arrival to ensure the appropriate safety checks are carried out before its release onto the market.

Information on the EU’s TRACES system can be found at the European Commission’s website.

Imports to the UK from within the EU

Pre-notification is currently required only when high-risk food and feed from third countries is being imported into the EU.

Import controls – Transit consignments

High-risk food and feed products originating in countries outside the EU, destined for the UK, which enter the EU to transit onwards to the UK (transit consignments) are subject to relevant imports controls at the first point of entry into the EU. Once they have entered the EU, these products can then enter the UK by any route and no additional controls are required.

After March 2019 if there’s no deal

Currently, the EU determines what FNAO is to be considered high-risk. In future, on any imports to the UK from the EU and third countries, this will be for the UK to decide. Import controls would be risk-based. Broadly, because the risk does not change on day one, no new controls are planned for imports from the EU of food and feed currently categorised as high-risk.

Pre-notification for TRACES users

If the UK leaves the EU in March 2019 with no deal in place, it is anticipated the UK would no longer have access to the EU import notification system, TRACES. This means importers to the UK from the rest of the world will no longer be able to use TRACES to notify the UK about those goods. To ensure those importing high-risk food and feed could continue to do so, a new import notification system is being developed to take the place of TRACES. More information on the new system will be published in the autumn.

Imports from the EU

The UK would also lose access to the systems for exchanging intelligence about food incidents between EU countries and the reciprocal obligations between those countries and the European Commission. In order to respond to food safety incidents effectively, the Food Standards Agency (FSA) intends to require all importers of high risk food and feed from the EU to pre-notify them using the new UK import notification system.

Currently no EU FNAO is designated as high risk.

Import controls – consignments transiting the EU

If the UK leaves the EU in March 2019 with no deal in place the UK will no longer be able to rely on the EU undertaking full import controls on high-risk consignments transiting through the EU to the UK. The goods will therefore need to be checked as they enter the UK.

Implications

General

Broadly, because the risk is not expected to change on day one, no new controls are envisaged in relation to imports of high-risk food and feed from the EU for a time limited period after Exit.

Pre-notification for TRACES users

Anyone currently using the TRACES system to pre-notify the UK about high-risk food and feed product imports from the rest of the world will need to start using the UK’s new import notification system, ahead of March 2019.

Updates will be issued to the industry between now and March 2019 to assist users to prepare for this change and ensure their own businesses are ready for imports on the day the UK leaves the EU. Representatives from key user groups are involved in the design, testing and preparation of the system.

Guidance and training material will be available several months in advance of March 2019 clearly setting out any differences from the existing system, although these will be minimal as it has been developed to replicate TRACES functionality.

Pre-notification for importers from the EU

In order to maintain high levels of food safety, the UK would require importers of high-risk food and feed to pre-notify the FSA of their imports from the EU. The FSA is working closely with Defra to establish when this requirement could be satisfactorily introduced. There would be no change on the day the UK leaves the EU to current import controls or requirements for notifications of imports of live animals and animal products for imports direct from the EU.

This requirement is not expected to have direct impact at the border or for port health authorities. Pre-notifications would be made electronically, in advance, by those introducing high-risk foods and feed into the UK, and would be managed by the FSA. As noted above, currently no EU FNAO is designated as high risk.

Import controls – transit consignments

Importers wishing to transit high-risk food and feed through the EU to the UK would need to recognise that the requirements differ depending on whether these are POAOor FNAO.

EU food law provides a clear provision for POAO. For this purpose, POAO would need to transit the EU under seal and land in the UK at a location with a Border Inspection Point (BIP) so that UK officials can perform the necessary import controls on these products.

However, there is not an equivalent transit provision within EU food law for high-risk FNAO. Therefore, to ensure that the UK’s imported food control regime remains sufficiently robust with no increased risk to public health, high-risk FNAO (as identified by country and by commodity), currently controlled under EU legislation must enter the UK via a Designated Point of Entry (DPE) so that UK officials can perform the necessary import controls on these products

For information about which locations have BIPs please go to the European Commission’s website. For information on locations that have DPEs, please go to the FSA’s website.

More information

For more information, please read Importing animals and animal products if there’s no Brexit deal. The FSA will continue to engage with stakeholders as we develop processes in the lead up to March 2019.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 96 on Existing free trade agreements if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For 2 years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to inform businesses and other interested parties about the government’s plans to ensure continuity for the UK’s existing trade agreements with partners outside the EU if we do not reach agreement with the EU on the terms of our withdrawal prior to 29 March 2019.

While the UK government is confident that it will agree a deal and a time-limited implementation period, as a responsible government it will continue to prepare for all scenarios, including the unlikely outcome that the UK leaves the EU on 29 March 2019 without a deal.

This is contingency planning for a scenario that the UK government does not expect to happen, but people should be reassured that the government is taking a responsible approach.

Before 29 March 2019

As a member of the EU, the UK currently participates in around 40 free trade agreements with over 70 countries. These free trade agreements cover a wide variety of relationships, including:

  • Economic Partnership Agreements with developing nations
  • Association Agreements, which cover broader economic and political cooperation
  • trade agreements with countries that are closely aligned with the EU, such as Turkey and Switzerland
  • more conventional free trade agreements

In 2017, ONS data showed that trade with third countries with EU free trade agreements accounted for around 12% of the UK’s total trade. Businesses in the UK, EU and partner countries are eligible for a range of preferential market access opportunities under the terms of these free trade agreements. These can include, but are not limited to:

  • preferential duties for goods. This includes reductions in import tariff rates across a wide range of products, quotas for reduced or nil rates of payable duties, and quotas for more relaxed rules of origin requirements.
  • enhanced market access for service providers.
  • access to public procurement opportunities across a range of sectors.
  • improved protections for intellectual property.

For continuity and stability for businesses, consumers and investors, we are committed to ensuring these benefits are maintained, providing a smooth transition as we leave the EU.

We are currently working with partner countries to prepare for a range of possible scenarios to maintain existing trading relationships.

After March 2019 if there’s no-deal

During any implementation period, arrangements would be put in place with partner countries so that the UK is treated as an EU member state for the purposes of international agreements, including trade agreements.

In the event of a ‘no deal’, there will be no implementation period. In this scenario, the government will seek to bring into force bilateral UK-third country agreements from exit day, or as soon as possible thereafter.

These new agreements will replicate existing EU agreements and the same preferential effects with third countries as far as possible, whilst making the technical changes needed to ensure the agreements operate in a bilateral context. Ministers and officials are engaging regularly with partner countries to complete this work. When we reach final agreements with partner countries will depend on our ongoing discussions with them.

Should arrangements to maintain particular preferences in a no deal scenario not be in place on exit day, trade would then take place on a ‘Most-Favoured Nation’ (MFN) basis, which is sometimes referred to as ‘World Trade Organization (WTO) Terms’, until such a new arrangement has been implemented. Under WTO rules, the principle of MFN treatment means that the same rate of duty, on the same good, must be charged to all WTO members equally. This principle is subject to certain exceptions, including if a free trade agreement is in place. For services, the MFN principle means WTOmembers are required to grant treatment no less favourable to services and service suppliers of any other WTO member, than that which they grant to like suppliers from any other country.

In leaving the EU, the UK is regularising the terms of our WTO membership because our commitments are currently contained within the EU schedules. We are working closely with WTO members to ensure a simple, fair, and transparent transition in establishing the UK’s independent WTO schedules, in a manner that minimises disruption to our trading relationships.

The UK is already a full member of the WTO, and negotiations are ongoing for us to become independent members of the WTO Agreement on Government Procurement, on the basis of its current commitments as a member of the EU. Separate to seeking continuity for existing free trade agreements, powers in the Taxation (Cross-border Trade) Act 2018 enable the UK to put in place a UK unilateral trade preference scheme for developing countries as the UK leaves the EU. In the first instance, it is intended that this will provide the same level of access as provided by the current EU trade preference scheme. This will maintain tariff free access for Least Developed Countries and continue to offer generous tariff reductions to around 25 other developing countries.

Implications

In the event of a ‘no deal’, EU trade agreements will cease to apply to the UK when we leave the EU.

Our intention is that the effects of new bilateral agreements will be identical to, or substantially the same as, the EU agreements they replace. However, users of current EU free trade agreements should be aware that, in contrast to the current situation and during any Implementation Period, there may be practical changes to how they make use of preferences under these new agreements. For example, UK and EU content will be considered distinct, and each new agreement will individually specify what origin designations may be used to qualify for preferences. We will aim to limit these changes as far as possible, but the final form of new agreements and any resulting changes will depend on ongoing discussions with our trading partners. The Trade Bill contains a reporting requirement stating that the government will publish a report before these new free trade agreements are ratified on any significant changes to the new trade-related provisions.

Where arrangements to maintain particular preferences in a no-deal scenario are not in place by exit day, trade would take place on WTO terms. Under such terms, traders would pay the applied MFN tariff. This is the tariff applied equally to all countries in the absence of preferential arrangements. In the event of no-deal, the government will determine and publish a new UK MFN tariff schedule before we leave the EU. Information on the current tariff rates are freely available to view in the UK’s applied goods schedule and can be found on the UK Government’s Tariff Look Up tool. Further practical information on arrangements for the border and relevant contact information for guidance can be found in:

The specific commitments for services trade that WTO members apply to trading partners, independently of any preferential arrangements, are set out in each Member’s schedule of commitments under the General Agreement on Trade in Services. Some countries have liberalised beyond these specific commitments.

For more information on the WTO, visit the WTO website.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 95 on Maintaining the continuity of waste shipments if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice sets out for businesses involved in the import or export of waste how the UK government will maintain the continuity of waste shipments between the UK and the EU in the unlikely event the UK leaves the EU without a deal.

Before 29 March 2019

Under the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, international shipments of waste are controlled through a process of prior written consent. This allows countries exporting hazardous waste to verify that the authorities in destination countries are content to accept the proposed shipment and that the waste can be managed in an environmentally sound manner at its final destination. An Organisation for Economic Co-operation and Development (OECD) decision (C (2001)107) provides the control framework for the transboundary movement of waste between OECD countries for energy recovery and recycling.

The EU Waste Shipment Regulation (WSR) implements the provisions of the Basel Convention and the OECD decision into EU law and provides a system to control the movement of waste into, within, and from, Europe for energy recovery or recycling. It prohibits the shipment of waste for disposal, by landfill or incineration, to countries outside the EU and the European Free Trade Area (EFTA) (Iceland, Liechtenstein, Norway, and Switzerland) and the export of hazardous waste to countries that are not members of the OECD.

The UK has national legislation on waste shipments: the Transfrontier Shipment of Waste Regulations (2007) designates the UK competent authorities and sets out offences and penalties. The UK Plan for Waste Shipments prohibits shipments of waste for disposal to or from the UK unless they fall under specific exceptions. For example, Ireland and Greece were granted an exception to allow the shipment of hazardous waste to the UK for disposal by High Temperature Incineration in August 2017 because the UK has specialist facilities for disposal that the exporting countries did not have.

After March 2019 if there’s no deal

Validity of approvals to ship notified waste to, from and through the EU

On 25 January 2018 the European Commission issued a notice to stakeholders stating that if the UK leaves the EU without a deal, import/export licences issued by the UK would no longer be valid for shipments of waste to the 27 remaining EU countries, and licenses issued by the EU would no longer be valid for shipments to the UK, from the day the UK leaves.

This means current approvals to ship notified waste between the UK and the EU that extend beyond the 29 March 2019 would be subject to a re-approval process to ensure continuity. The same applies to waste shipments transiting the EU. There is currently no process set out in the EU Waste Shipment Regulations on how notified shipments that have already been approved by UK and EU competent authorities should be re-approved. Defra is contacting other EU countries to discuss arrangements. UK and EU exporters of notified shipments will be advised before the end of November 2018 on next steps.

Waste shipments from the UK to the EU

When we leave the EU, the UK will remain a party to the Basel Convention and a member of the OECD, and will continue to implement the international rules contained in these agreements.

In the unlikely event the UK leaves the EU without a deal, the UK would be treated in the same way as any other OECD country, or any country that is party to the Basel Convention, looking to export waste to an EU country. UK exporters would need to familiarise themselves with the customs guidelines the EU has laid down for imports of waste from outside the EU.

Under the WSROECD countries wishing to export waste to the EU for disposal must submit a duly reasoned request (DRR) to the relevant EU competent authority, explaining why the country does not have and cannot reasonably acquire the appropriate disposal facilities. The UK government would need to submit DRRs for any exports to the EU of waste for disposal, before a notification to export could be submitted by a UK exporter to the relevant UK competent authority. In most cases the export of UK waste for disposal is already prohibited so the impact of this additional step is unlikely to be significant.

There would be no changes to the procedure for exports of waste for recycling that are eligible to be shipped under the Green Control procedure as laid down in the OECDdecision and the WSR.

Waste shipments from the EU to the UK

In the unlikely event the UK leaves the EU without a deal, the UK would be treated in the same way as any other OECD country looking to import waste from an EU country and would continue to apply the procedures laid down in the Basel Convention and the OECD decision.

The WSR prohibits the export of waste for disposal, and the export of mixed municipal waste for recovery, to states other than EU and EFTA states. EU states would be prohibited from exporting waste for disposal, or exporting mixed municipal waste for recovery, to the UK under EU law.

There would be no changes to the procedure for imports of waste for recycling that are eligible to be shipped under the Green Control procedure as laid down in the OECDdecision and the WSR.

Further information

The UK government’s website on the import and export of waste provides general information concerning shipments of waste.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 94 on Trading and moving endangered species protected by CITES if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice sets out how people who trade in, or travel with, endangered animals or plants, or their products, would be affected if the UK leaves the EU in March 2019 without a deal.

It outlines how the UK would continue to comply with its international obligations under the Convention in International Trade in Endangered Species of Wild Fauna and Flora (CITES) if no deal is reached with the EU. CITES is an international treaty which protects wildlife from unsustainable trade.

Before 29 March 2019

Global trade and movement of endangered animals or plants, or their products (for example skin, fur, teeth, shell, feathers, blood or seeds) is controlled under CITES. In the EU, CITES is implemented via the EU Wildlife Trade Regulations, which set requirements for trade in certain species within, to and from the EU and the rest of the world.

All CITES-listed species are contained within Annexes A to D of the EU Wildlife Trade Regulations. The Species+ database includes details of all CITES-listed species.

Annex A species have the highest level of protection – in the EU, their commercial use is prohibited except where a certificate has been issued for a specific prescribed purpose, for example for an antique-worked artefact. The Animal and Plant Health Agency (APHA) is responsible for issuing permits and certificates.

Annex B, C and D species can currently be freely traded in the EU. Commonly traded Annex B items include caviar, snowdrops, orchids, corals, reptiles (for example pythons), and many animal skins used in the manufacture of bags and watch straps (for example alligator skin). Permits are currently needed to move or trade Annex B, C and D species outside the EU.

As the UK is a party to CITES in its own right, it will continue to be bound by the obligations of the Convention after leaving the EU, regardless of the outcome of negotiations. Through transferring the EU Wildlife Trade Regulations into UK law, the UK will continue to comply with its international obligations under CITES.

After March 2019 if there’s no deal

If the UK leaves the EU without a deal, species that are currently freely moved and traded between the UK and the EU (those listed in Annexes B – D) would require a CITES permit or import/export notification. This would mean movement of all species controlled under CITES between the UK and the EU would need to follow the same processes as those currently in place for movement between the UK and non-EU countries.

The exact process would depend on the Annex under which the species is listed.

Businesses or individuals trading in or moving endangered species outside the UK would need to check the specific requirements with the intended import or export country on the Global CITES website, and either apply to the Animal and Plant Health Agency (APHA) for a CITES permit or request and complete an import notification form.

For Annex A and B listed species:

  • imports to the UK from the EU would need an export permit (or re-export certificate) from the EU country the item is moving from, and an import permit from APHA.
  • exports from the UK to the EU would need an export permit (or re-export certificate) from APHA and an import permit from the relevant EU member state.

For Annex C listed species:

  • imports to the UK from the EU would need an export permit (or re-export certificate) from the relevant EU country and an import notification on entry to the UK.
  • exports from the UK to the EU would need an export permit (or re-export certificate) from APHA and an import notification on entry to the EU country.

For Annex D listed species:

  • imports to the UK from the EU would need an import notification on entry to the UK.
  • exports from the UK to the EU would need an import notification on entry to the EU member state.

Those importing species from the EU would need to consider the routes and points of entry to the UK that are allowed for import and export of species, including making sure that suitable facilities are in place for handling live animals and ensuring they use an appropriate land, sea or air port for the shipment. Further information and instructions will be published around border entry points in due course.

In certain prescribed circumstances, there are exemptions from needing to comply with CITES regulations, meaning a simplified process. For example, a permit is often not required for captive-bred and artificially-propagated plants, personal and household effects and exchanges between scientific institutions.

Further information

Details of how to obtain a CITES permit in the UK are available on GOV.UK, as are current details of fees for CITES permits and designated CITES points of entry.

Information on Border inspection Posts (BIPs), which are approved facilities for carrying out checks on animals and animal products from third countries, can be found here.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario

BREXIT NO DEAL TECHNICAL NOTICE NO 93 on Exporting objects of cultural interest if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

This notice clarifies the procedures for export licensing for objects of cultural interest in the unlikely event that the UK leaves the EU in March 2019 with no agreement in place.

Before 29 March 2019

At present there are no licensing requirements for objects of cultural interest for import into the UK or EU.

There are currently two licensing regimes in place for the export of cultural goods from the UK:

  1. UK law applies for exports to any foreign destination;
  2. EU regulations apply to objects travelling outside the EU.

Although licences are often required under both regimes for objects intended for export outside the EU, the UK system has been adapted so that exporters usually only need to obtain one specific individual export licence (which may cover more than one object).

Both licensing systems are administered by Arts Council England (ACE) and you can read ACE’s Procedures and Guidance for Exporters. This guidance advises you which licence to apply for and outlines the lead times for issuing licences.

With limited exceptions, these are:

  • 5 working days where an object has been imported into the UK within the last 50 years
  • 28 working days where the object has not been imported within the last 50 years

Licences are applied for and issued on paper, and at present potential exporters should contact ACE for licence application forms and further guidance on current processes.

Current policy normally grants an export licence for any object which has been imported into the UK within the last 50 years.

If an EU licence is required, this is subject to sufficient evidence being provided to show that any export of the object from a member of the European Customs Union on or after 1 January 1993 was lawful and definitive.

After 29 March 2019 if there’s no deal

What you need to do to export from the UK to the EU and the rest of the world

In autumn 2018 a Statutory Instrument will be laid that would revoke the relevant EU regulations in relation to the cultural objects export licensing system on exit day.

From that date, if there’s no deal, you would need only a UK licence to export cultural objects from the UK to any destination, and we will stop issuing EU licences. ACE will distribute guidance on any changes to the UK licensing system to reflect new procedures.

Further information will follow in the New Year about whether and how the UK export licensing system will have regard to legal and definitive dispatch from other countries.

EU licences issued by ACE before exit day would be valid for export at UK borders after exit day for the duration of their validity (the period of validity for EU export licences cannot exceed 12 months).

Likewise, the offences, rights, obligations, and restrictions relating to licences will continue to apply after exit day. For example, if a person is granted an EU licence in the UK before exit day on the condition that the object be returned to the UK within one year, and after exit day acts under the authority of the licence by removing the item from the UK but fails to comply with that condition by not returning the object, that will still constitute an offence under UK legislation in the same way as it would have before exit day.

At present there are no licensing requirements for objects of cultural interest for import into the UK or EU.

What you need to do to export from the EU to the UK and the rest of the world

If you hold an EU licence issued by the UK authority before exit day, and hope to use it to authorise the export of objects of cultural interest to destinations outside the EU after exit day, you should also take any further steps to ensure uninterrupted compliance with the EU and individual EU countries’ licensing regimes, as appropriate for your individual circumstances.

Individuals and businesses moving objects of cultural interest from the EU to the UK will already be familiar with domestic export licensing systems of various EU countries. After EU-exit, these movements may also be subject to the EU export licensing system. In some cases, this may mean that you would have to fulfil further administrative requirements. You would be encouraged to consult the licensing authorities in the country of export.

At present there are no licensing requirements for objects of cultural interest for import into the UK or EU.

Early in the New Year the Export Licensing Unit at ACE would announce a cut-off, after which they would not process and issue EU licences before exit-day. There would be two cut-off dates: one for applications that need to be referred to expert advisers, and a later one for applications that do not. Please refer to the Statutory Guidance and the Procedures and Guidance for Exporters for further details on this distinction.

After these dates, applicants would be required to send in applications for all exports on UK export licence forms.

More information

A Statutory Instrument revoking the EU regulations governing the EU export licensing regime will be published in autumn 2018.

Details on how the UK licensing procedures will be adapted to reflect changes arising from EU exit will also be published in autumn 2018. This will include changes to the Statutory Guidance.

Find out more about the Statutory Guidance and current Procedures and Guidance for Exporters.

More information and instructions will be published in the coming months. We aim to give businesses and individuals as much certainty as possible as soon as we can, and to ensure that any new requirements are not unduly burdensome.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario

 

BREXIT NO DEAL TECHNICAL NOTICE NO 92 on Exporting GM food and animal feed products if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The aim of this notice is to provide information to certain businesses on action they would need to take before EU exit to ensure that trade can be maintained in a ‘no deal’ scenario. It’s specifically aimed at UK businesses:

  • holding or seeking authorisations for genetically modified (GM) food or feed
  • holding or seeking authorisations for animal feed additives
  • exporting animal feed products to the EU
  • that have applications to update the list of feed for particular nutritional purposes (PARNUTS) pending at the time of EU exit
  • that represent companies that are based in non-EU countries which rely on UK representation for EU trade

This notice provides an explanation of the relevant legislative requirements, including having a representative or being established in one of the countries of the European Union or European Economic Area (EEA). The EEA includes Iceland, Liechtenstein and Norway. The role of the representative is to provide assurance that the non-EU establishment complies with EU legislation.

Before 29 March 2019

EU legislation as it applies to certain categories of food and feed (including GMfood/feed, animal feed, feed additives etc.) includes conditions on where businesses can be established. Details of current requirements which apply are detailed below.

GM food/feed

EU GM food/feed authorisation holders, or those in the process of seeking authorisation, must be established in the EU or EEA (Regulation (EC) No 1829/2003, Article 4(6)). Businesses not based in the EU will need to designate a representative who is based in the EU or EEA.

Animal feed

In 2018, the Commission advised that all businesses importing feed products from non-EU countries to the EU now require a representative within the EU or EEA. Previously, this requirement applied only to certain feed products from non-EU countries (Regulation (EC) 183/2005, Article 24, which refers to the conditions for imports of feed laid down in Article 6 of Directive 98/51/EC).

For feed additive authorisations linked to a specific authorisation holder, the holder must either be established in the EU or EEA, or designate a representative established within the EU or EEA (Regulation (EC) No 1831/2003, Article 4(3)) – these are authorisations relating to zootechnical, coccidiostats and histomonostats, and GMadditive categories.

Updates to the list of uses of PARNUTS can only be initiated by an application to the European Commission from either a natural or legal person established in the EU or EEA or from an EU country (Regulation (EC) No 767/2009, Article 10).

After March 2019 if there’s no deal

If the UK leaves the EU in a ‘no deal’ scenario, businesses within the scope of this notice will need to be established in the EU or EEA, or have a representative that is established in the EU or EEA if they wish to trade in the EU. Businesses should also consider the implications below where the business currently acts as representatives for companies in non-EU countries or are not established in the EU or EEA.

Implications

UK exporters of feed products to the EU will require representation in the EU or EEA. As a guide only, current UK procedures on becoming a representative are available on the Food Standards Agency website. EU countries will each have their own systems for this and businesses should consult with the relevant competent authority in the EU country for further advice on gaining recognition for their representative.

The requirement for non-EU country representation would apply to all feed products exported to the EU. This follows the European Commission’s announcement of a revised interpretation of Regulation (EC) 183/2005, Article 24. The Food Standards Agency is currently seeking clarity on this interpretation but companies should nevertheless anticipate this revised interpretation and consider designating a representative within the EU or the EEA.

UK businesses holding EU authorisations for GM food or feed, or for animal feed additives, will need to designate a representative established in the EU or EEA. You will need to provide details of the representative to the European Commission. This could be a branch of your business which is established in the EU or EEA or another business.

Changes to holder-specific authorisations for GM food or feed or for feed additives require amendments to EU legislation which would need to be in place by 29 March 2019. Businesses in the process of such changes would need to approach the European Commission without delay.

UK businesses that have applied for EU authorisation of GM food or feed; feed additives; or updates to the list of PARNUTS, and whose application is still being processed at the time of a UK ‘no deal’ exit from the EU, if they wish for the application(s) to continue, will need to designate a representative established within an EU country or the EEA. The business would also need to provide details of the representative to the European Commission. For feed additives, this applies to both generic authorisations and those linked to a specific authorisation holder.

UK businesses acting in the role of a representative(s) for establishments in non-EU countries to enable them to export feed product to the EU, will need to inform the establishments they represent that they will no longer be able to act as their representative and advise them that they will need to appoint a representative based in an EU country or the EEA.

Appointing a representative

When appointing a representative, UK businesses should ensure that the potential representative is based in one of the 27 EU countries, or an EEA country, and that the potential representative is able to provide the necessary assurance to act as such. When appointed, the representative needs to submit a request to the appropriate competent authority in the EU country or EEA state in which they are based. The UK business should obtain confirmation that they have done so and, finally, that the competent authority has informed the European Commission.

More information

If you require more information or have questions on this technical notice, please email the Food Standards Agency: euexit@food.gov.uk

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

 

BREXIT NO DEAL TECHNICAL NOTICE NO 91 on Breeding animals if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice provides information to help breed societies recognised under zootechnical legislation and related breeders and businesses get ready for changes they may need to make if the UK leaves the EU in March 2019 without a deal.

The legislation applies to purebred equines, cattle, sheep, pigs and goats, hybrid breeding pigs and their germinal products.

Before 29 March 2019

Zootechnical legislation facilitates trade in purebred breeding animals and their germinal products. Separate species-specific legislation is being replaced by a new streamlined regulation in November 2018. It allows breed societies to apply to be recognised and have their breeding programme approved by a member state competent authority if they meet zootechnical standards.

Once recognised they are entitled to certain rights. For example, a pedigree bull from a recognised UK breed society can be automatically treated as a pedigree by an equivalent breed society in another EU member state.

Purebred animals being traded and entered into another breed society register or breeding book must be accompanied by a zootechnical certificate.

UK breeding programmes can also be extended into the territory of another EU member state.

After March 2019 if there’s no deal

In the unlikely event the UK leaves the EU without a deal, the UK would become a third country from March 2019. UK-recognised breed societies and operations involved in the trade and movement of purebred livestock and germinal products would no longer be recognised societies or operations in the EU.

A recognised UK breed society or breeding operation would no longer be automatically entitled to enter their pedigree breeding animals into an equivalent breeding book in the EU and would have no right to extend a breeding programme into the EU.

Existing EU legislation allows for trade with third country breed societies and operations. This provides for the European Commission to maintain a list of breeding bodies in third countries that meet certain requirements relating to equivalence of their breeding programmes and rules of procedure to those in the EU. As the Commission indicated in a notice to breeders of 21 November 2017, in a ‘no deal’ scenario UK zootechnical businesses that meet these requirements would be treated as third country breeding bodies by the EU.

This would allow them to enter pedigree breeding animals into equivalent EU breeding books or registers as they can now, provided the animals are accompanied by a zootechnical certificate in accordance with the existing EU legislation. Defra will shortly contact Zootech stakeholders directly to discuss the steps they need to take to plan for March 2019, including providing any information needed to enable Defra to submit their applications for listing as third country breeding bodies to the Commission.

Zootechnical certificates would continue to be issued by breed societies and breeding operations as now.

The arrangements for EU-recognised breed societies and operations operating in the UK would not change initially. They would continue to have access to the UK in the same way as they do now.

More information

You may also want to refer to separate technical notices on exporting and importing animals and animal products.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 90 on Plant variety rights and marketing of seed and propagating material if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice sets out how trade in seed and propagating material between the UK and the EU would be affected if the UK leaves the EU in March 2019 without a deal, and how plant breeders would be able to protect their intellectual property.

Before March 2019

Plant variety rights

Plant variety rights are a form of intellectual property that allow the rights holder to control seed and propagating material and collect royalties. They are available for all species of plants and are essential for the economic success of plant breeding.

EU legislation provides a framework for protection of plant variety rights in all 28 EU countries, largely superseding the UK’s longstanding national system. EU plant variety rights are managed by the Community Plant Variety Office (CPVO), an EU agency.

Seed and propagating material

EU legislation for seed and propagating material assures the quality of material on the market. It applies mainly to food crops but also provides quality assurance for ornamental, amenity and forestry plants (forest reproductive material, or FRM). All crops must comply with the legislation, but the level of detail required varies with the type of crop.

For the main food and feed crops, the variety must first be registered on a National List. Officially controlled certification of seed and propagating material then takes place to assure identity and quality through testing and labelling.

Variety registration in the UK is led by the Animal and Plant Health Agency (APHA), which coordinates almost all testing. Two types of testing are carried out by a number of organisations across the UK:

  • variety performance and quality
  • distinctness, uniformity and stability (DUS). The EU allows mutual recognition of DUS testing between EU countries

Once a variety is registered on a National List, it is added to the EU’s ‘Common Catalogue’, allowing it to be marketed across the EU.

After March 2019 if there’s no deal

Plant variety rights

If the UK leaves the EU in March 2019 without a deal, EU plant variety rights granted up to that point, including those held by UK businesses, would continue to be recognised in the remaining 27 EU countries. Those rights would also automatically be recognised and given protection under UK legislation, without rights holders needing to take any action.

Where EU rights have been applied for, but not granted before 29 March 2019, an application for rights in the UK would need to be made to APHA, following the normal process for UK plant variety rights, and using the same priority date and DUS test.

For new varieties, breeders would need to make two applications, where currently they make one, to achieve the same geographic coverage, as separate protection would be required in the UK and the EU. APHA is reviewing its processes to mitigate the resulting increased costs for plant breeding businesses, by increasing efficiency and where reasonable accepting DUS tests from the EU, see below.

For protection in the UK, an application would need to be made to APHA, following the normal process and payment of fees for UK plant variety rights.

For protection in the EU, an application would need to be made to the Community Plant Variety Office, following the normal process and payment of fees.

Marketing seed and propagating material in the EU

Varieties registered solely via UK National Listing would no longer be listed on the EU Common Catalogue and would not be marketable in the EU. UK certified seed and propagating material and UK DUS testing of plant varieties would no longer be accepted in the EU.

In order to market UK seed and propagating material in the EU, businesses would need to meet two requirements:

  • The variety would need to be listed on the Common Catalogue – breeders would need to add them to the EU Common Catalogue through registration in an EU country.
  • Seed would need to be certified, and the certification would have to be from the EU or from a third country recognised by the EU as equivalent for seed certification.

In the event of a no deal, the UK would apply to the EU to recognise its certification processes as equivalent, but we cannot guarantee this recognition would be in place at the point the UK leaves the EU. Approval can take a minimum of 12 months so we are exploring approaches to speed up this process. There will be further communications on this in the coming months.

The UK has applied to join the international scheme for FRM that will allow the UK to apply to the EU for recognition of its certification process and marketing of FRM in the EU.

Through these actions, Defra is attempting to reduce the impact on businesses looking to export seed to the EU.

Marketing seed and propagating material in the UK

Varieties that are already registered on the EU Common Catalogue, but not on the UK list, are currently being added to the UK National List, which would allow them to be marketed in the UK. Any business wanting to add varieties to the National List in this way should contact APHA. Email and phone numbers are on GOV.UK.

In a ‘no deal’ scenario, Defra intends to allow varieties on the EU Common Catalogue to be marketed in the UK for an interim period of two years after the UK leaves the EU, and to apply the same interim period to the marketing of EU certified seed and propagating material.

After this, businesses would need to comply with new UK arrangements. The main food and feed crop varieties marketed in the UK would need to be on the UK National List. The normal process and fees for National Listing would apply. Seed and propagating material from outside the UK would need to comply with normal international requirements. APHA is reviewing its processes to reduce costs and mitigate the impact.

For forest reproductive material (FRM), the intention would be to recognise EU standards as equivalent to UK standards and allow material to be marketed in the UK. Existing national schemes would continue to be used to register and certify material within the UK.

DUS testing

Defra plans to continue to accept EU DUS reports, providing they are of comparable quality to UK DUS reports. The exception will be agricultural species currently tested by the Agri-Food and Biosciences Institute (AFBI), NIAB and Science and Advice for Scottish Agriculture (SASA). For these species, only DUS reports from approved UK science organisations will be accepted.

More information

Current guidance, application forms and protocols for plant breeder’s rights, national listing and seed certification can be found here.

For more information on importing and exporting of plants if there’s no Brexit deal, please see the technical notice on this area.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 89 on Commercial fishing if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice sets out how the commercial fishing industry (the commercial catching of fish, as well as the marketing of fish and seafood) would be affected if the UK leaves the EU without a deal in March 2019.

Before 29 March 2019

The commercial catching of fish and marketing of fish and seafood, including the farming of fish, crustaceans, molluscs, aquatic plants and algae (aquaculture), is regulated by the European Union’s Common Fisheries Policy (CFP). The European Maritime and Fisheries Fund (EMFF) provides money, including industry grants, to member states for certain fisheries activities.

After March 2019 if there’s no deal

When we leave the EU, the UK will formally leave the CFP and introduce our own fisheries policies. The government’s White Paper, Sustainable Fisheries for Future Generations, published on 4 July 2018, sets out a clear direction for a sustainable and profitable fishing industry. The White Paper also states the government’s intention to move away from the “relative stability” towards a fairer and more scientific method for quota allocation, regardless of exit scenario.

The EU Withdrawal Act 2018 will ensure EU law is transferred into UK law and continues to have effect so that we have a functioning statute book from the day we leave. Defra, together with the Devolved Administrations, is currently preparing secondary legislation (under the Withdrawal Act) to ensure the law works in the UK after we leave.

The UK will assume the rights and obligations of an independent coastal state under the UN Convention on the Law of the Sea (UNCLOS) relating to our territorial waters (out to 12 nautical miles) and Exclusive Economic Zone (out to 200 nautical miles or the median line with other states). We will be responsible for managing natural marine resources in these areas, and be able to control and manage access to fish in UK waters. We will meet our international obligations under UNCLOS to cooperate with other coastal states over the management of shared stocks. We will ensure that appropriate fisheries control and enforcement measures continue.

Access to waters

  • Access to fish in UK waters: While non-UK-registered vessels will no longer enjoy automatic access to UK waters (subject to any existing agreements relating to territorial waters), there will be no change to the rights and responsibilities of UK-registered vessels fishing in UK waters. They must continue to abide by the relevant legislation and licence conditions, including the economic link criteria.
  • Access to fish in EU and third country waters: There will be no automatic access for UK-registered vessels to fish in EU or third country waters (subject to any existing agreements relating to territorial waters).
  • Fishing opportunities for UK vessels in UK waters: UK Fisheries Administrations will tell UK quota holders what their quota allocation will be. The government will also confirm arrangements for those who fish for non-quota shellfish (scallops and edible/spider crabs) and demersal species under the Western Waters effort regime. UK Fisheries Administrations inform quota holders of their allocations in March each year and will seek to do so in 2019 to minimise disruption to fishing and allow fishermen to plan for the year. There will be no automatic access to exchanging fishing opportunities with EU member states, and no automatic access for EU member states to exchange fishing opportunities with the UK.

Access to ports

UK-registered vessels landing into EU and third country ports

UK-registered vessels will no longer have an automatic right to land fish in any EU port. Access will be permitted to EU designated ports for port services, landings, transhipment and the use of market facilities where vessels meet EU requirements governing illegal, unreported and unregulated fishing. UK-registered vessels will have to notify their intention to visit an EU designated port and present information relating to the vessel and catch on board. UK vessels may be subject to inspection: this could include a full document check, inspection of the catch and, where information has been provided electronically, database checks.

Access to EU and third country ports by UK-registered vessels will be permitted without prior notice in cases of distress or force majeure.

In anticipation of our joining the North-East Atlantic Fisheries Commission (NEAFC), UK-registered vessels wishing to continue fishing in the NEAFC Convention Area and landing into the EU will have to complete Port State Control 1 forms, available on the NEAFC website.

EU and third country vessels landing into UK ports

Access to UK ports for non-UK vessels, including EU vessels, will be subject to equivalent requirements to those outlined above. They will be required to provide notice of the intention to land into a designated port in the UK, except in cases of distress and force majeure.

EU vessels fishing in the NEAFC Convention Area and landing into the UK would need to complete a Port State Control 1 form.

Regional fisheries management organisations (RFMOs)

The UK will no longer be a member of RFMOs through EU membership. As an independent coastal state, we will join all relevant RFMOs as quickly as possible.

The process of joining RFMOs and ratifying their conventions may take up to 6 months: there may, therefore, be a short gap in our membership. During this time, UK vessels may not be able to fish in international waters covered by RFMOs.

European Maritime and Fisheries Fund (EMFF)

The UK government has guaranteed that in a ‘no deal’ scenario all structural and investment fund projects, including EMFF projects, approved before 31 December 2020 will be fully funded.

Labelling and marketing of fishery and aquaculture products

All common marketing standards for fish sold for human consumption – whether in the UK or the EU – will remain the same, including those governing quality, size, weight, packing, presentation or labelling and minimum marketing sizes. All labelling requirements for fish and aquaculture products for onward sale in the UK or EU will also remain the same (whether they were whole, filleted, or processed). This will include the requirement to show on labels the name of the fish, the date and method of its capture (fishing gear or farming method), whether it was wild or farmed, defrosted or fresh.

The responsibilities of Producer Organisations to promote sustainable fishing activities, market members’ products, build relationships with the supply chain, and where appropriate, manage quota, will remain unchanged.

Import and export of fishery products

Trade in fishery products obtained from illegal, unreported and unregulated fishing will remain prohibited. Most fish and fish products will require a catch certificate for import or export between the UK and EU. A catch certificate is not required for trade in some aquaculture products, freshwater fish, some molluscs, fish fry or larvae. Specific additional measures relevant to the import and export of fishery products from and to the EU are listed below:

  • Exports of UK-caught fish and fishery products to the EU: The EU will require exporters to issue a catch certificate with each consignment of fish or fishery products exported to the EU. It will be the responsibility of the exporter to complete a catch certificate. If the consignment were sourced from more than one UK vessel, a Multiple Vessel Schedule would need to be completed and submitted alongside the catch certificate. Vessel owners or skippers making direct landings of UK vessels into EU ports will also need to issue a catch certificate. The content of a catch certificate will need to be verified by the UK fisheries authority where the vessel is licensed before being submitted to the competent authority in the EU country of import. The UK fisheries authorities are the Marine Management Organisation in England, Marine Scotland, the Department of Agriculture, the Environment and Rural Affairs in Northern Ireland and the Welsh Government. The UK fisheries authorities are developing an IT system to facilitate the increase in export catch certificates.
  • Imports of EU-caught fish and fishery products to the UK: Each consignment or direct landing of fish or fishery products imported into the UK from the EU will require a catch certificate. The exporters will have to submit the certificate to the Port Health Authorities or relevant fisheries authority to be checked at least three working days before the estimated arrival time into the UK. This deadline could be adapted to take into account the type of fishery or distance from fishing ground to port, for example.
  • Eels and eel products: Trade in the European eel (Anguilla anguilla), within and outside the EU, will remain subject to the Convention on International Trade in Endangered Species (CITES) and allowed only where it is shown not to be detrimental to the wild population. As there is currently no non-detriment finding for the population, the UK will not be able to import or export European eel. Most of the eel (Anguilla japonica) consumed in the UK is imported from China and so the impact on consumers should be limited.

Anyone importing or exporting fish or fishery products should also reference the relevant technical notices relating to the import and export of animal products.

More information

The European Commission maintains a list of designated ports for third country landings on its website. Further information on access to EU ports and the laws on Illegal, Unreported and Unregulated (IUU) fishing can be found in Regulation (EC) No 1005/2008, Chapter II, Section I.

You should also refer to guidance on catch certificates and advice on food labelling. Importers and exporters of fish and fishery products should also refer to other relevant technical notices.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU member states. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 88 on Regulating pesticides if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice outlines the arrangements that would come into force to regulate pesticides in the unlikely event that the UK leaves the EU in March 2019 with no deal.

Plant Protection Products (PPPs) (also known as “pesticides”) are treatments that protect valuable plants such as crops against pests and diseases or prevent the growth of unwanted plants such as weeds. They benefit society by helping UK farming to provide a supply of high quality, affordable food and aid in keeping transport infrastructure, public and amenity spaces and gardens clear of unwanted plants. However, pesticides can also pose risks to the environment and human health and therefore it is essential to have effective regulation in place.

Before 29 March 2019

Currently, PPPs are subject to EU regulations. The EU regime relies on centralised EU processes, EU institutions and the sharing of responsibilities between all EU countries. It comprises of three main measures:

  1. Regulation of the placing of PPPs on the market, including the approval of active substances, authorisation of products and the management of associated risks. (EU 1107/2009)
  2. Regulation of Maximum Residue Levels (MRLs) of an active substance contained in plant protection products permitted to remain in marketed foods, reflecting the residue arising from the authorised use of PPPs. (EU 396/2005)
  3. A framework of action to ensure the sustainable use of pesticides.

After March 2019 if there’s no deal

In a no deal scenario, the UK would establish an independent standalone PPP regime, with all decision making repatriated from the EU to the UK. We would ensure that a stable regulatory framework for pesticides is put in place from the point we leave the EU by retaining the two main directly applicable EU regulations in national law, through the provisions of the EU Withdrawal Act.

This would ensure continued levels of protection for human health and the environment, as well as making it straightforward for businesses to put products on the market, and ensuring UK businesses and individuals can continue to access a range of pesticides.

The EU Withdrawal Act ensures that there will be no change to policy. However, in order for the regime to operate in a domestic setting, we are preparing secondary legislation to make some technical corrections.

In the short-term, the UK regime will make changes from the EU regulatory framework only where they are required to operate in a UK-only context. In a ‘no deal’ scenario the UK would not be legally committed to medium or long-term regulatory alignment with the EU. Divergence from developing EU legislation would be possible in due course.

The technical requirements of the regime would remain the same as they are in current EU legislation, maintaining existing standards of environmental and health protections.

All current active substance approvals, PPP authorisations, and MRLs in place on 29 March 2019 would remain valid in the UK after we leave, so businesses could continue to trade and products would continue to be available.

After we leave the EU, all applications for products to be authorised in the UK, and all active substances and MRLs would be considered under the national regime. The format of applications and basic data requirements would remain the same as under the current regime. Applications for EU approvals would need to be submitted separately to the EU for their consideration (more information on the EU regime can be found at https://ec.europa.eu/food/plant/pesticides_en).

The Health and Safety Executive (HSE) would continue to operate as the national regulator, building on its existing capability and capacity. Applications under the national regime after the UK’s departure from the EU would need to be made to HSE, in the same way as now.

The processes currently carried out at EU level, including by the European Food Safety Authority (EFSA), would be converted into national processes and retained as part of the national regime if they are relevant in a UK only context. These would include functions such as considering specific technical issues as specified in the regulations, public consultation, provision for consultation with independent specialists where appropriate, and final decision making. New arrangements for independent scientific assurance would be put in place. Elements of EFSA’s role which are designed for an EU context would no longer be required in a national regime, for example the additional layer of process to review EU countries’ risk assessment conclusions, to ensure harmonisation across all EU countries.

Currently decisions on active substance approvals and MRLs are given effect through EU tertiary legislation. This would be replaced in the UK by using a new statutory register in the form of a publicly available online database, making it simple to check the official record.

To ensure that processes run smoothly, there would be an extension of three years to active substance approvals which are due to expire in the three years after we leave the EU. This would provide time for establishment of national renewal arrangements (a national renewals programme would need to be developed after exit and put in place by means of further secondary legislation to be made using the powers within the main regulations).

Applications which are being considered by the UK at the point of exit will be progressed to completion under the national regime.

Elements of the current regime, which rely on EU membership, would no longer be able to operate in a no deal scenario e.g. the arrangements whereby EU countries can choose to mutually recognise product approvals and also parallel trade permits. To address this, parallel trade permits in force at the point of exit would remain valid for a transitional period of two years after the date of exit, or the extant expiry date (whichever is sooner). After expiry, businesses would need to obtain authorisations for marketing and use of their products in the UK.

We would also provide a transitional period for seeds which have been treated with PPPs authorised for that use in other EU countries so that they could continue to be lawfully marketed at the point of departure from the EU and could continue to be placed on the UK market for a period of three years after we leave the EU.

Action for business:

  • No immediate action is required in respect of current active substance approvals, PPP authorisations, and Maximum Residue Levels (MRLs). These will all remain valid in the UK and EU after exit day as now.
  • Start to consider what new applications businesses might wish to make under both the UK and EU regimes in the period after EU exit, and to plan ahead for any applications under each regime relating to renewals of existing approvals and authorisations as they expire over time.
  • Keep in touch with HSE as the regulator with respect to any current applications.

Overall these measures ensure that the UK will have a national PPP regulatory regime in place at the point of our departure from the EU. There would be minimal change from the current regulatory system, providing stability as we leave the EU.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

We also recommend reading the following technical notices:

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 87 on Meeting rail safety and standards if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This guidance explains how leaving the EU without a deal would affect:

  • rail safety rules
  • technical standards
  • authorisations and certificates
  • train driver licences

For rail specifically, as set out in the government’s recent White paper on the future economic partnership, we are seeking bilateral arrangements with France, Belgium, and the Netherlands, as well as Ireland, to facilitate the continued smooth functioning of cross-border rail services.

Beyond those cross-border services, we will have the flexibility to shape our own domestic railway legislation to meet the needs of our passengers and freight shippers, and reflect the unique characteristics of the rail network within the UK.

In any scenario, most of our services are domestic, so much will continue as it always has in practice. Above all, the UK’s exit from the EU will not affect rail safety, which will remain the number one priority.

As with all of our EU exit work so far, we remain committed to working closely with the industry and other stakeholders. This is an essential part of planning for all eventualities.

There are a number of cross-cutting issues, such as goods in the supply chain, and we know from our engagement with industry that these issues are of particular importance to them. This notice should be read in conjunction with:

This notice is not designed to cover border infrastructure or checks.

Before 29 March 2019

Most of the rules on technical standards, interoperability and safety are contained in EU law. No matter the scenario we remain committed to sharing best practice with our European partners to ensure that safety continues to improve across the EU rail network, particularly given our proud record as one of the safest railways in Europe.

In order to run either a domestic or cross-border service legally, rail undertakings (i.e. the train operators) must obtain the correct licences, certificates and authorisations from an EU rail regulator and in certain cases from the safety authority in an EU country.

In the UK the safety authority is the Office of Rail and Road (ORR), or the Department for Infrastructure in Northern Ireland, or the Intergovernmental Commission for the Channel Tunnel.

For safety purposes the railway operator must obtain a safety certificate and train drivers must be licensed. Applicants seeking to use vehicles for the first time must also obtain an authorisation from the safety authority.

Certification of conformity by assessment bodies is required under the EU’s Interoperability Regime. This includes certificates of verification for subsystems and certificates of conformity for interoperability constituents that are defined in the Technical Specifications for Interoperability.

After March 2019 if there’s no deal

If there’s no deal, we would still be able to pursue bilateral agreements with EU countries to maintain cross-border services. We are also seeking mutual recognition of all necessary documentation so that operators from the UK and the EU can continue to operate cross-border services without disruption after exit. Given the large amount of trade and citizens travelling on these services it is everyone’s interests to continue such arrangements. Passengers using cross-border services are responsible for ensuring that their insurance and ticket terms and conditions are sufficient to cover possible disruption.

Through the European Union (Withdrawal) Act 2018 we will bring EU law onto the UK statute book on exit day. The act, and some minor amendments we are making to the retained legislation, will ensure that the statute book works effectively after exit day.

We would also continue to meet our obligations as a member of the Convention concerning international carriage by rail (COTIF) in all scenarios. COTIF establishes uniform rules that govern international rail transport. The EU and the UK are parties to COTIF and these uniform rules.

For the vast majority of domestic passenger and freight services currently operating in either the UK or the EU, operators tend to establish subsidiaries in the relevant country.

They rely on documentation issued there under EU law. It is possible to rely on documentation issued in one EU country when operating in another. However, a technical notice issued by the European Commission indicates that if there is no deal – certificates and licences issued by ORR (Britain’s national safety authority) to operators currently running train services in the EU would not be valid there after exit.

We want to provide businesses with greater clarity and certainty and are therefore proposing to recognise certain documentation, such as safety certificates, and train driver licences, issued by another EU country for a limited period after exit day if there’s no deal.

The sections of this notice relating to interoperability constituents and vehicle authorisations should be read in conjunction with the technical notice on Trading goods regulated under the ‘New Approach’ if there’s no Brexit deal. This sets out general principles for the recognition of EU goods documentation for a time-limited period. The implications will be covered later in this notice.

The technical specifications for interoperability and the safety regime have been developed by the EU Agency for Railways (EUAR) in conjunction with EU countries and stakeholders. As new rules and standards are developed by the EU after exit, as a third country, the UK will have the flexibility to align with or diverge from these as it wishes. We will only diverge where there are clear arguments for doing so and after fully engaging with industry to assess the impact – particularly the commercial and cost impact to industry.

To enable this flexibility, we do not intend to seek formal participation in the European Union Agency for Railways (EUAR) if there’s no deal. However, we encourage UK industry to participate with EUAR at technical and working level.

Arrangements for cross-border services will be subject to any bilateral arrangements that the UK negotiates with individual EU countries.

In the absence of any bilateral or multilateral arrangements between the UK and relevant EU countries before March 2019, cross-border operators would be subject to the same recognition principles in relation to certificates and licences covered in this notice.

What you need to do

Safety certificates

For UK-based operators who only operate domestically and have ORR-issued Part A and Part B safety certificates, your certificates would remain valid if there’s no deal.

Any non-UK based operators operating a domestic-only service in GB with a Part A safety certificate issued in another EU country, would be able to continue using these certificates for up to 2 years from exit or until they expire – whichever is earlier. At this point you would need to apply to the ORR for a UK Part A certificate and renew the UK Part B safety certificates to continue operating. However, you would not be required to be established in the UK.

ORR-issued Part B safety certificates would be valid until they expire and will not be subject to a time-limited period. The exception to this is where a Part A certificate issued in an EU country expires or is subject to the 2-year limit, in which case the associated ORR-issued Part B certificate would also need to be renewed at the same time.

The Commission’s notice indicates that if there’s no deal, UK-based operators running domestic services in another EU country who hold a Part A safety certificate issued by the ORR would need to re-apply for a Part A safety certificate in an EU country. This also applies to UK-based operators seeking to run new domestic services in an EU country.

In order to ensure certainty, we encourage those who need to re-apply for a Part A safety certificate to begin this process as soon as possible.

Arrangements for cross-border services would be subject to any bilateral arrangements that the UK negotiates with individual EU countries.

Entities in charge of maintenance certificates

For Entities in Charge of Maintenance (ECM) that hold an ECM certificate issued in the UK by the ORR or a recognised body, if there’s no deal their validity would be unchanged for freight vehicles operating purely on the UK mainline.

ECMs that hold a certificate issued in another country would be able to continue using these certificates for UK operations. These certificates would be recognised indefinitely as required by our international obligations under COTIF.

The Commission’s notice indicates that ECMs that hold a certificate issued in the UK by the ORR or a recognised body, and maintain freight vehicles in the EU, would need to apply for a new ECM certificate from a national safety authority in an EU country. The UK’s position is that the EU and UK recognition of the certification of ECMs after exit must be consistent with our international obligations under COTIF.

Interoperability constituents

In the UK, interoperability constituents with certificates of conformity from an EU notified body would continue to be recognised after exit unless the applicable UK technical standards diverge from the standards set by the EU.

Where there is divergence in respect of a specific interoperability constituent, a reassessment against the divergent standard would be required by a UK conformity assessment body. The same principle would apply to certificates of verification for subsystems.

The Commission’s notice indicates that if there’s no deal, an interoperability constituent placed on the EU market before exit with a certificate of conformity from a UK notified body could still be used for the period of validity of that certificate in subsystems or vehicles authorised before exit day. Certification from a UK notified body would not be valid for interoperability constituents placed on the EU market after EU exit.

Vehicle authorisations

In the event of a no deal exit, vehicle authorisations already issued within the UK before exit would retain their validity in the UK.

An additional authorisation to place into service would be mandatory for vehicles for first use in the UK after exit, if those vehicles were first authorised outside of the UK. This system would be operated in accordance with the UK’s COTIF international obligations. We do not envisage this requirement to cause disruption as it is effectively formalising current practice. Additional vehicle authorisation is generally always sought to ensure compliance with the UK’s non-harmonised technical rules.

The Commission’s notice indicates that vehicle authorisations delivered in the EU prior to EU exit would remain valid. After the withdrawal date, authorisations for placing in service in the EU would be based on certificates of verification issued by notified bodies in the EU countries.

Train driving licences

For operators in the UK, operating with licences and certificates issued in the UK, there would be no impact if there’s no deal.

For operators in the UK, drivers using licences and certificates issued in another EU country would be able to continue using this documentation for up to 2 years from exit day or until they expire, whichever is earlier. At this point drivers working for a UK operator would need to apply to the ORR for a GB licence to continue operating in GB. The validity of certificates in the UK is unaffected by changes to the licence, however operators must ensure that certificates held by newly re-licensed drivers and their registers of those certificates refer to the new licence.

If you currently drive trains into an EU country on a UK licence, you would need a new EU licence and certification documents from the national safety authority of the country you wish to drive into. You should apply for this as soon as possible.

Arrangements for operators of cross-border services would be subject to any bilateral arrangements that the UK negotiates with individual EU countries.

More information

Find out more about:

The department would like to thank all our stakeholders for all their engagement and input to date. We value the rail supply chain in the UK and we will continue to work closely with them and all our industry stakeholder regarding the appropriate preparations.

We will publish more information in the coming months. We aim to give businesses and individuals as much certainty as possible as soon as we can, and to ensure that any new requirements are not unduly burdensome.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s on-going programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU countries. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 86 on Rail transport if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This guidance explains how leaving the EU without a deal would affect rail travel and what it would mean for:

  • rail passenger and freight operators
  • rail passengers

For rail specifically, as set out in the government’s recent White paper on the future economic partnership, we are seeking bilateral arrangements with France, Belgium, and the Netherlands, as well as Ireland, to facilitate the continued smooth functioning of cross-border rail services.

Beyond those cross-border services, we will have the flexibility to shape our own domestic railway legislation to meet the needs of our passengers and freight shippers, and reflect the unique characteristics of the rail network within the UK.

In any scenario, most of our services are domestic, so much will continue as it always has in practice. Above all the UK’s exit from the EU will not affect railway safety, which will remain the number one priority.

As with all of our EU exit work so far, we remain committed to working closely with the industry and other stakeholders. This is an essential part of planning for all eventualities.

There are a number of cross-cutting issues and we know from our engagement with industry that these issues are of particular importance to them. This notice should be read in conjunction with the technical notices on:

This notice is not designed to cover border infrastructure or checks.

Before 29 March 2019

EU law sets out:

  • rules for how the rail market can be structured, for example, the procurement of rail franchise contracts
  • the rights that passengers have when travelling by rail

Much of this law has been informed by the UK’s experience over the past 25 years – as the UK has led the way on areas such as competitive tendering of franchises. In addition, UK industry has shared its knowledge and expertise with European partners.

In order to operate a service legally, either domestic or cross-border, an operator must obtain certain licences, certificates and authorisations from an EU rail regulator and, in certain cases, from the safety authority in an EU country.

In the UK the safety authority is the Office of Rail and Road (ORR), or the Department for Infrastructure in Northern Ireland, or the Intergovernmental Commission for the Channel Tunnel.

For market access purposes, the most important document is a European operator licence issued by the ORR under rules set by the EU.

After March 2019 if there’s no deal

In the event of ‘no deal’ on leaving the EU, we would still be able to pursue bilateral agreements with EU countries to maintain cross-border services. We are seeking mutual recognition of all necessary documentation so that operators from the UK and the EU can continue to operate cross-border services without disruption after exit. Given the large amount of trade and citizens travelling on these services it is in both sides’ interests to agree to such arrangements. Passengers using cross-border services are responsible for ensuring that their insurance and ticket terms and conditions are sufficient to cover possible disruption.

Through the European Union Withdrawal Act 2018 we will bring EU law onto the UK statute book on exit day. The act, and some minor amendments we are making to the retained legislation, will ensure that the statute book works effectively after exit day. We would also continue to meet our obligations as a member of the Convention concerning international carriage by rail (COTIF) in all scenarios.

The vast majority of domestic passenger and freight services operating in the UK or the EU have subsidiaries in the relevant country and an operator licence issued there under EU law. Operators can also use documentation issued in one EU country to run services in another.

The technical notice issued by the Commission indicates that, if there’s no deal, operator licences issued by the ORR (as the UK’s licensing authority) to operators currently operating in the EU would not remain valid in the EU after EU exit.

We want to give businesses greater clarity and continuity and are therefore proposing to recognise operator licences in the UK that have been issued by another EU country for 2 years following exit day in a ‘no deal’ scenario. At this point an operator wishing to run services in the UK would need to apply to the ORR for UK documentation. We are already aligned with EU law in this area, so we anticipate that this would have a minimal impact on business and we would work with the ORR to ensure the application process is reasonable and proportionate.

Arrangements for cross-border services would be subject to any bilateral arrangements that the UK negotiates with individual EU countries. In the absence of any bilateral or multilateral arrangements between the UK and relevant EU countries before 29 March 2019, cross-border operators would be subject to the same recognition principles in relation to operator licences as outlined in this notice.

What you would need to do

Operator Licences

For GB-based domestic operators operating on ORR-issued licences, there will be no impact from a ‘no deal’ scenario. This also includes subsidiaries of EU and non-EU owned operators where they use ORR-issued licences.

For operators in GB using licences issued by another EU country, your licenses will remain valid for up to 2 years from exit day. At this point you would need to apply to the ORR for a GB licence to continue operating, although you would not need to be established in the UK.

For operators running domestic services in another EU country who hold an ORR-issued licence, the Commission’s technical notice states that you would need to re-apply for an operator licence in an EU country. This also applies to UK-based operators seeking to run new domestic services in an EU country.

In order to ensure certainty, we encourage those who need to re-apply for an operator licence to begin this process as soon as possible.

Arrangements for operators of cross-border services would be subject to bilateral arrangements that the UK negotiates with individual EU countries. In the absence of any bilateral or multilateral arrangements between the UK and relevant EU countries before March 2019, cross-border operators would be subject to the same recognition principles in relation to licences covered in this notice.

Rail passenger rights

As a rail passenger in the UK, using either domestic or cross-border services, your rights would remain unchanged.

Most of your rights as a UK domestic rail passenger come from requirements set out in domestic franchising and licensing arrangements. These domestic protections will not change when we leave the EU. Passengers on cross-border services will continue to be protected by the EU regulation on rail passengers’ rights, which will be brought into UK law by the European Union (Withdrawal) Act 2018.

Rail freight corridor

A rail freight corridor (RFC) is constituted of railway lines, linking 2 or more terminals along a predefined principal route crossing more than one EU country. For each RFC, a dedicated governance structure is established. The UK will no longer be a member of the North Sea – Mediterranean rail freight corridor. The impact of this, however, will be minimal as the corridor has only ever been used once in the UK.

More information

Find out more about:

The department would like to thank all our stakeholders for all their engagement and input to date. We value the rail supply chain in the UK and we will continue to work closely with them and all our industry stakeholder regarding the appropriate preparations.

We will publish more information in the coming months. We aim to give businesses and individuals as much certainty as possible as soon as we can, and to ensure that any new requirements are not unduly burdensome.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s on-going programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

 

BREXIT NO DEAL TECHNICAL NOTICE NO 85 on Funding for British Overseas Territories if there’s no Brexit deal

Published by HMG on 12th October 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice provides an overview of how the UK government’s guarantee for EU-funded programmes applies to the British Overseas Territories, if the UK leaves the EU with no deal.

It covers all British Overseas Territories governments and organisations that are eligible to bid into the following EU funding programmes:

  • European Development Fund
  • Horizon 2020
  • Erasmus+
  • Voluntary Scheme for Biodiversity and Ecosystem Services in EU Outermost Regions and Overseas Countries and Territories (BEST)

For Gibraltar, it also covers:

  • EU Structural Funds, specifically the European Regional Development Fund (ERDF)
  • the European Social Fund (ESF)
  • European Territorial Cooperation programmes

This notice should be read in conjunction with the notices relating to individual funding programmes.

Before 29 March 2019

Until the UK leaves the EU, the UK remains a member state, with all the rights and obligations that includes. The UK and our Overseas Territories, including Gibraltar, will continue to participate in EU programmes while the UK remains a member of the EU.

As agreed as part of our financial settlement with the EU, we will continue to take part in all EU programmes after 29 March 2019 for the rest of the 2014 to 2020 Multiannual Financial Framework. The financial settlement has been agreed by both UK and European Commission negotiators in a draft Withdrawal Agreement and welcomed by the other 27 EU countries at the March European Council.

After March 2019 if there’s no deal

In the unlikely event of a no deal, the UK will leave the EU Budget in March 2019. Without further action, this would mean governments and other organisations in our Overseas Territories could lose future funding for existing projects under EU programmes. However, the Chancellor has agreed that the UK government will guarantee funding for specific EU projects. This will provide certainty for British Overseas Territories governments and participating organisations over the course of our EU exit.

This guarantee covers:

  • Full territorial allocations to the British Overseas Territories governments from the European Development Fund (EDF) that have been agreed while we remain in the EU. It also includes projects agreed under the EDF regional and humanitarian allocations. The exceptions are the finance interest subsidies and technical assistance through the European Investment Bank’s Overseas Countries and Territories Investment Facility, which are not covered by this guarantee.
  • Paying awards under the Horizon 2020, Erasmus+, and BEST, where Overseas Territory participants successfully bid on a competitive basis while we remain a member of the EU.
  • Funding successful bids where Overseas Territory organisations are able to participate as a third country in competitive grant programmes from exit day until the end of 2020. This would only apply to programmes that Overseas Territory organisations already participate in, and if the European Commission agrees that the Overseas Territories are eligible to participate from exit day until the end of 2020 in a particular programme.
  • As set out in the notices on the Horizon 2020 and Erasmus+ programmes, the government is seeking discussions with the European Commission to agree how consortia and projects with UK participants can continue after our exit. These discussions would also cover the UK’s and Overseas Territories’ continued participation in these programmes, for example as a third country.
  • EU Structural Funds that Gibraltar receives as part of the 2014-20 Multiannual Financial Framework allocation – the European Regional Development Fund (ERDF) and the European Social Fund (ESF), and European Territorial Cooperation programmes (a sub-fund of Structural Funds that involves cross-border projects). The notices issued by BEIS provide further detail.

Implications

The government’s guarantee ensures that British Overseas Territory participants, such as governments and organisations, will continue to receive funding over a project’s lifetime if they successfully bid into EU-funded programmes while the UK remains a member of the EU, and, where access (for example as a third country) is available, before the end of 2020.

Over the coming months we will set out the precise arrangements for how our guarantee will operate for British Overseas Territories for the specific programmes outlined in this notice. These will include administrative and governance arrangements.

More information

Contact the Foreign & Commonwealth Office if you have any questions.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

Daniel Hannan says the Eurocrats in Brussels do not understand the English

Conservative Home report on this story today from MEP Daniel Hannan

“EU leaders calculate that, if they hang tough, we might drop the whole idea of Brexit. Hence the choreographed appeals to think again from the prime ministers of countries with strong historical claims on our affection, such as Malta and the Czech Republic. The notion that we might come crawling back displays a colossal misreading of our character….We are a bloody-minded people. When someone asks us the same question again, we repeat ourselves with added emphasis.” – Daniel Hannan, The Sunday Telegraph

Michael Gove is open to Canada-style free trade option

Conservative Home report on this story from Michael Gove as reported in the Mail on Sunday today.

“Michael Gove last night signalled that Theresa May is under growing pressure from her Cabinet to ditch her ‘no deal is better than a bad deal’ mantra and consider a Canada-style free trade deal with the EU if Brussels rejects her Chequers plan.

The Environment Secretary, who has been steadfastly loyal to the Prime Minister over Chequers, offered carefully worded public support for Foreign Secretary Jeremy Hunt’s stance last week that he was ‘not dismissing’ the Boris Johnson-backed Canada option.

Mr Hunt’s remarks infuriated Downing Street, which is sticking to Chequers despite the opposition of both the EU and Brexiteers.” – The Mail on Sunday

David Davis criticises Downing Street officials for undermining negotiations

Conservative Home today report the following from David Davis

“When David Davis resigned from the Government in July, he was careful not to attack Theresa May personally over her handling of the EU negotiations. While furious with the way her Chequers plan was foisted on him as Brexit secretary, his quarrel, he has repeatedly said, is with the policy itself rather than the Prime Minister. Now he has unleashed a previously pent-up stream of criticism of Mrs May’s advisers, describing a failure to adequately grasp the “practicalities” of the negotiations, and tendencies to believe EU claims “that are simply exaggerations” and “quail” in front of arguments from Brussels….Last summer, he tried on three occasions to “strike out” the “new customs partnership” plan that he feared would prevent the UK from striking free trade deals with non-EU countries after Brexit. “I thought at first it was the Treasury being difficult,” he says. “It turned out it was No 10. They said we’ve got to keep it in for ‘negotiability’ reasons.” He adds: “That’s not the way you design your policies. You design your policies, then sell them, then amend them if you do have to do that but not the other way around.” – Interview with David Davis, The Sunday Telegraph

Chequers Plan is deranged says Boris Johnson

 

Conservative Home write today

“Boris Johnson sets out his manifesto today for the Tories to win the next election, arguing that the government should stop trying to copy Jeremy Corbyn if it wants to defeat Labour. In an interview with The Sunday Times — his first with a newspaper since resigning from the cabinet — the former foreign secretary questioned whether Theresa May believes in Brexit and branded her Chequers plan “deranged”. Johnson also called for the government to be “proud” to advance Conservative ideas and far bolder in building houses and infrastructure. He said Britain should build a bridge to Ireland and put the HS2 scheme on hold so a high-speed rail link can be built across the north of England instead.” – The Sunday Times

Theresa May warns her critics on the eve of Conference

The Sunday Times reported today 30th September 2018

“In an interview with The Sunday Times on the eve of her party conference, the prime minister confronted her critics, accusing those who refuse to back her Chequers blueprint for Brexit of “playing politics” with Britain’s future and undermining the national interest. In an attempt to show that she has ideas beyond Brexit.

May announced that foreign buyers will face a higher stamp duty rate to stop them driving up house prices. People and businesses who do not pay tax in Britain will face a surcharge of between 1% and 3% when they buy a property, with the proceeds pumped into a scheme to combat rough sleeping.

May took a swipe at Jeremy Corbyn but also warned Tory critics such as Boris Johnson that they have a patriotic duty to support her plan or see Brexit potentially betrayed.”

 

Free trade is the foundation of modern economies & modern prosperity, says new IEA report

27 SEPTEMBER 2018

IEA releases a primer on free trade

Brexit and pharmaceuticals – separating fear from reality VICTORIA HEWSON

26 SEPTEMBER 2018

Without an independent trade and regulatory policy Brexit is just an exercise in damage limitation

24 SEPTEMBER 2018

Shanker Singham talks to BBC Radio 4 Today

Prior to the launch of his latest paper, Plan A+: Creating a prosperous post-Brexit UK, Shanker Singham talks to BBC Radio 4’s Today programme.

Shanker, and his co-author Radomir Tylecote, argue that Brexit has so far been approached from the wrong end of the telescope. Rather than being treated as a localised European event, Brexit is global and the UK’s trade relationships with the EU and beyond must be considered as such.

Plan A+ suggests that we must take a step back and focus on what Theresa May called the Brexit Prize in her Lancaster House speech. For Shanker and Radomir, this prize is an independent trade and regulatory policy.

Read Plan A+ here, and listen to Shanker’s full segment from 2:37:00.


Published by brexit.app with the kind permission of The Institute of Economic Affairs

IEA Report – Plan A+: Creating a prosperous post-Brexit U.K.

 

The Ideal US-UK Free Trade Agreement

18 SEPTEMBER 2018
This paper is intended to serve several related purposes. First, it is to persuade policymakers and the public in both the United States and the United Kingdom that it is in their respective national interests to enter into a comprehensive bilateral trade and investment agreement. Specifically, the goal is to establish that the type of agreement that will have the greatest positive effect on the economies of both countries is one that removes border barriers and behind-the-border barriers to trade across all sectors of both economies without exception.

Second, this paper is intended to provide the intellectual foundation for what limited-government, free-market supporters would consider the ideal free trade agreement (FTA). Third, and ultimately, the objective is to produce the text—the specific language, terms, and provisions—of an FTA that would be more “liberalizing” than any other FTA in the world, and that would be attractive and open to other countries to join.

—————————————————————-
Published byhttp://brexit.app brexit.app with the kind permission of The Institute of Economic Affairs.London

Debate – what kind of immigration policy should Britain adopt after Brexit?

Free movement of labour across the EU has become a controversial issue in recent years, and was a key factor in Britain’s decision to leave the European Union in the 2016 referendum. But how should we approach this issue after Brexit? Colleagues Adam Bartha and Catherine McBride weigh up the arguments on the IEA blog – with Adam making the case for EU-wide freedom of movement continuing after Brexit, and Catherine for a system of points-based, controlled migration, the policy in her native Australia.

Should free movement continue after Brexit? 

Adam Bartha, Director of EPICENTER, says YES

“Take back control”, argued the Leave campaign during the referendum. A laudable idea when it comes to paring down red tape and increasing international trade, but we should be careful what we wish for. If the government attempted to further tighten its grip on immigration, this could prove a major set-back for liberalism.

It is hardly surprising that politicians aim to crack down on migration, given that 20% of people cited it as the most important issue determining their vote —after 21% who stated the economy as the most important factor. Yet, as free-marketeers know all too well, what is popular is not always right – just consider the majority of the British public wanting to nationalise transport and utility companies.

Out of the EU’s four freedoms (free exchange of goods, services, capital, and people) all have benefited the UK – but only the last one is not viewed as an unambiguous success story.

Moreover, free movement within the EU is not just about welcoming foreigners to the UK, but also about being able to emigrate to other countries. At the moment, 1.2 million Britons live in other European countries, where they have equal rights and benefits to the local residents. Opponents claim that Britons overseas benefit their host country more than they cost them. This is certainly true in most cases, and is, of course, equally true for Europeans living in the UK. It’s not only pensioners in Mallorca who have a much higher quality of life abroad, but also British students, who can graduate from top universities — and pay significantly less for their education than they would have in the UK – or professionals, who don’t need to spend valuable working hours complying with visa requirements and bureaucracy. In short, even if some people (wrongly) believe that accepting migrants represents a net loss to the UK, this could well be worth the trade off, since Brits abroad benefit from the same opportunities.

Free-marketeers believe that individuals are the most capable of making free choices that represent their best interests. They understand that state-controlled attempts to assess and plan the needs of their citizens, or to interfere in voluntary transactions, usually end in failure.

For instance, Tesco can determine the number of apples that it needs to import, and it can equally determine the number of employees, and the kind of employees it wants to hire. Few on the liberal side would claim that putting extra tariffs on apples would be a laudable protectionist measure, or that government should be able to assess each and every apple coming into the country to ensure compliance with UK regulations.

Economists and free-market liberals, always keen to defend international trade, risk forgetting that the free movement of people is just another form of trade – only instead of exchanging goods, different nations exchange skills. The British government should hold domestic apples (and British born residents) to the same regulations and legislation as they hold foreign apples and foreign nationals. Free movement within Europe is a first step towards this – which can and should be extended to other parts of the world after Brexit.

NO, says Catherine McBride, Senior Economist for the IEA’s International Trade and Competition Unit

We live in a world of taxpayer-funded unemployment benefits, in-work tax credits, housing benefits, the NHS, and education. So encouraging immigrants who will require the use of these services but not produce enough tax revenue to pay for them, cannot make economic sense. Choosing the immigrants the country needs and wants will surely produce a much more prosperous and sensible economy.

For non-EU immigrants there are 5 tiers of Visas for living and working in the UK.

Tier 1 applies to entrepreneurs and independently wealthy people. Tier 2, for skilled non-EU migrants, Tier 3, for seasonal and low skilled labourers, while Tiers 4 and 5 include students, artists, musicians, and charity workers.

Qualifying for the Tier 2 scheme requires a job offer worth at least £30,000 a year. Since 2015, the holder must also pay an annual £200 NHS surcharge, despite already contributing to the NHS though their UK taxes. An employer willing to import workers on a Tier 2 Visa must prove that no UK national could do the job. So besides adding at least £6,219 to HMRC in Income Tax and National Insurance, Tier 2 workers bring experience and skills to the workforce. The only thing I would change about this system would be to increase the limits, which seem incredibly low at just 20,700 people each year. Bidding for these visas has now become so fierce that, in practice, the required income level can reach up to £60,000 when there is an excess of applications. Great news for the Exchequer, if not for business. An employee on £60,000 will be paying £17,187 income tax and NI each year.

Meanwhile, the Tier 3 Visa for low skilled and seasonal workers has been suspended. Why? Because despite a common tendency to overestimate the skill levels of EU migrants, in reality, the majority are employed in low-skilled or seasonal jobs – even though 40% are over-qualified for this work.

Why is this a problem? Well, earning the minimum wage for 40 hours a week, 52 weeks a year, an over 25-year-old will earn a maximum of £16,286 annually, on which they would pay £1,860 in income tax and NI. This is about the same cost per capita of last year’s NHS budget and certainly won’t cover housing, schools, police, transport etc. EU nationals in the UK are also eligible for tax credits and housing benefits – and are more likely to report receiving tax credits than UK-born residents. It has been estimated that every minimum wage employee costs the taxpayer £6000 in subsidies. So why would any country with high social provisions import a minimum wage workforce?

The employers of low-skilled workers will say “full steam ahead”. They will tell you they can’t get the UK staff. But what they really mean is that they can’t attract staff who will work as hard, for such a low price. The Great Brexit Sandwich Shortage is not about running out of bread but rather about running out of cheap, human, sandwich makers, subsided by the UK taxpayer. Some might argue that subsidised takeaway food is good for productivity – but, in general, the consumer has not benefited from the lower labour input costs of most products. Despite wages for builders’ labourers in London falling by 20-40% in the last two decades, London houses have not become cheaper. Nor, for that matter, have takeaway coffee or sandwiches.

Britain should, of course, welcome the best and brightest – but it is hard to justify the unlimited import of cheap labour, which undercuts UK wages and lowers productivity.  Eventually turning the UK into a low wage economy will weaken the population’s purchasing power, leading in turn to lower economic growth. And that is before we even consider the political discontent that undercutting your own population has caused. But that issue is best left for another debate.

SENIOR ECONOMIST

Catherine McBride is an economist with 19 years’ experience working in financial services, primarily trading financial, equity and commodity derivatives. Before joining the IEA, she worked for the Special Trade Commission at the Legatum Institute and ran Financial Research for the Financial Services Negotiation Forum (FSNForum), developing ideas about financial service governance and policy to support growth and prosperity after the UK leaves the EU. Catherine has previously worked in derivatives with ADM Investor Services International, Chase Manhattan, Baring Securities, Bain & Co Securities part of Deutsche Bank Australia and as a financial analyst for IBM.
===============================================
Published by brexit.app with the kind permission of The Institute of Economic Affairs.London.

Anti-competitive regulations and the harm they cause (Part 8)

Published by brexit.app with the kind permission of The Institute of Economic Affairs.London

Brexit is sexist” by Madeline Grant

“No Deal” Fear-checker
No 6, 14th September 2018

The claim (1 of 3)

Brexit risks turning back the clock on women’s rights, according to the Fawcett Society, the Trade Union
Congress (TUC), and, most recently, the People’s Vote Campaign. Freed from the constraints of the EU, it is
claimed that UK politicians will be able to weaken women’s rights legislation and workplace protections.

 

The reality

The EU has created or strengthened a number of pieces of legislation on women’s rights, but many of
these rights are replicated in domestic legislation, while other key UK provisions precede the existence of
EU instruments altogether. The first Equal Pay Act (1970) predates the UK’s accession to the EU by several
years, as do the Abortion Act (1967), the Divorce Reform Act (1969) and the decision to make the
contraceptive pill free on the NHS (1961). The Sex Discrimination Act of 1975, though implemented shortly
after accession, was not driven by any EU imperative. Female Genital Mutilation has been illegal in Britain
since 1985, yet the EU only passed legislation addressing it in 2012.

Assumptions that Brexit will automatically mean the repeal of equalities legislation also overlook many
areas where current UK protections exceed statutory EU requirements. For example, Britain’s 52 weeks of
statutory maternity leave (39 of which are paid) are considerably more generous than the 14 weeks
guaranteed by EU law. The TUC has warned that women’s paid holiday entitlements could come under fire
after Brexit – but this is also unlikely, given that UK holiday legislation pre-dates accession to the EU by 35
years, and more recent government decisions have taken the entitlement for holiday up to 28 days
minimum, compared to the EU minimum requirement of 20. There is also a tendency to ignore femalefriendly
policies which could be pursued after Brexit, such as deregulation of the labour market to make it
more flexible. Even the so-called “tampon tax”, which levies a 5% VAT on sanitary products and
contraception, is required under an EU directive which the government could choose to reject.

Both the TUC and the Women and Equalities Select Committee have called for the UK government to
specifically enshrine EU-related women’s rights into domestic law, to ensure there is no deterioration after
Brexit. Yet the EU Withdrawal Bill already does this, and any changes that a future government might
make will have to be approved by parliament anyway – making the proposed amendments both
meaningless and unnecessary.

Indeed, the current government is clearly moving in the direction of strengthening women’s rights. For
example, in 2018, the UK became one of the first countries in the world to require private and publicsector
employers with 250 or more employees to publish their company-wide gender pay gaps. Whether
you like this measure or not, the fact is that UK lawmakers implemented it entirely of their own volition.
Finally, focusing on EU legislation that has advanced women’s rights as examples of the way in which
Brussels is allegedly more committed to gender equality ignores the important counterfactual question of
what legislation an independent UK might have introduced. We are invited to assume that an
independent UK would have remained frozen in a time warp from 1973 and taken no further steps to
promote gender equality at its own initiative. That’s clearly nonsense.

The claim (2 of 3)

Women will disproportionately bear the burden of any Brexit-related economic downturn. The Fawcett
Society is one of several organisations to have made this claim, arguing that a “projected downturn in GDP
is likely to result in further cuts to government spending which will have a disproportionate impact on
women.”

The reality

This statement hinges on a chain of (debatable) assumptions. Firstly, that Brexit would leave the economy
far worse off. Secondly, that this would trigger significant cuts in public spending, and, thirdly, that women
would disproportionately suffer under these cuts.
The first link in this chain depends on the validity of economic forecasting – an area in which the UK
economics establishment has a generally poor record. The Fawcett report references several forecasts
examining a range of Brexit scenarios, including estimates that the level of GDP could be as much as 9.5%
lower in the long run than it would otherwise have been. However, even the Cross-Whitehall briefing cited
several studies where the impact on GDP is much smaller, or actually positive.
The second assumption, that any Brexit-related weakness in the economy would trigger another round of
austerity, is also highly tenuous. The pessimistic forecasts in the Whitehall briefing, for example, were
presented relative to a baseline where GDP is expected to increase by around 25%. So even if these
forecasts are right, the economy would still be growing at a decent pace – in contrast to the steep
recession of 2008 and the sharp deterioration in the public finances that followed. There would be no
need for ‘further cuts in government spending’.

The third assumption rests on the common view that austerity impacts women more than men. Several
proponents have referenced the influential statistic that “86% of public spending cuts have been borne by
women since 2010”. Yet this calculation takes a cavalier view of spending cuts as ‘gendered’, and, indeed,
what constitutes ‘austerity’ in the first place.
Few would consider the removal of child benefit from relatively well-off families ‘austerity’ in its truest
sense, yet part of the 86% figure derives from child benefit reductions – since, it is argued, such payments
are overwhelmingly claimed by women. Of course, just because mothers are more commonly nominated
as recipients of child benefit doesn’t mean its removal will not affect fathers too. Many of these studies
also often factor in the raising of female retirement age to 65. First announced in 1995, this change was
based on principles of equality and widely supported by economists as a proportionate response to the
ageing of the population, unrelated to ‘austerity’.
In short, claims like those of the Fawcett Society rely on highly dubious interpretations of the link between
‘austerity’ and gender.

The claim (3 of 3)

Many have suggested that Britain’s departure from the EU will adversely impact women “as users of public
services”, following similarly flawed logic to the austerity proposition outlined above (Brexit -> recession ->
cuts to services used more by women). The Fawcett report goes further still, playing heavily on fears of
deteriorating food standards and an American takeover of the NHS in the event of a US/UK trade deal.

The reality

Though trade agreements with third countries may mean that more NHS contracts currently being
awarded to private British or EU companies go, in future, to private companies from the US (or elsewhere),
there is no inherent reason the nationality of providers of goods and services to the NHS should
undermine the fundamental principles of our health service. On the contrary, increased competition from
suppliers would be more likely to improve standards and drive down costs. Unless the UK government
decided otherwise, healthcare would remain universally available and free at the point of delivery.

The Fawcett Society also suggests that women would disproportionately feel the effects of deteriorating
food standards after Brexit, in particular, a feared influx of certain products in the event of a US/UK trade
deal. They partly base this claim on the fact that women are the biggest purchasers of domestic products,
tending to manage household budgets and do more of the shopping than men. This is correct, but their
subsequent conclusion that women would suffer “disproportionately”, seems highly disingenuous,
implying that the entry of new products into the market after Brexit will somehow prevent female
consumers from deciding their own shopping habits.
What’s more, even if you do accept the flawed argument that chlorinated chicken, for example, is
“unsafe”, it is nonsense to argue that women are somehow more at risk just because they are more likely
to do the family shopping. This ludicrous argument confuses buying a chicken with eating it!
It has also recently been argued that restrictions on freedom of movement after Brexit will lead to a
shortage of care workers, which in turn will force thousands of women to quit their jobs to care for elderly
relatives. Putting aside the sexism inherent in the view that only women can apparently care for their
families, this outcome seems predicated on the government doing nothing to address or prepare for
potential shortages of care workers. It is not obvious why UK lawmakers could not, or would not, act
unilaterally, e.g. by exempting care workers from the Tier 2 (General) limit after Brexit, as is already the
case for doctors and nurses.

Conclusions

Although the EU has been influential in the development of equalities legislation, Brexit would be unlikely
to put these rights in jeopardy. Historically, the UK has led the way when it comes to women’s rights and
workplace and family protections, and this will surely continue. The worry that undermining women’s
rights is part of a secret Brexit agenda is verging on the paranoid.
What’s more, even if a future UK government did want to ‘turn back the clock’, it would require the
support of parliament and, ultimately, those responsible have to answer to the public at the polls. It is very
unlikely that any future administration would be able to roll back women’s rights in the ways feared.
Likewise, claims of a link between Brexit, austerity and women simply do not stand up to scrutiny. The
argument that public spending cuts are “sexist” is already inherently questionable – but to claim the same
will be true of Brexit depends on absolute worst-case scenarios, flawed logic, and an assumption that
recession-level spending cuts would automatically follow our departure from the EU. Take these
assumptions away and there is very little left at all.

Madeline Grant
Editorial Manager, IEA


Published by brexit.app by the kind permission of The Institute of Economic Affairs.London.

 

“Grand National would be hit by a No-deal Brexit”

“No Deal” Fear-checker
No 4, 10th September 2018

The claim.

Next year’s Grand National could look very different if the UK leaves the EU without a deal, warns the British
Horseracing Authority. This would see the end of the Tripartite Agreement, which allows horses to be
moved easily between the UK, France and especially Ireland, putting the participation of Irish horses at risk.

The problem

A Tripartite Agreement (TPA) does makes it a little easier to move thoroughbred racehorses (and others
used in equestrian sports) between the UK, France and Ireland. Eligible horses moving between Ireland and
the UK only need an EU equine passport. The rules were tightened in 2014 so that horses moving to and
from France also require a certificate called a DOCOM. However, the TPA still removes the need for the
additional veterinary documentation required for horses moving elsewhere within the EU. What’s more,
horses from outside the EU are subject to further checks and customs barriers, potentially including tariffs.
The TPA is an agreement between the Chief Veterinary Officers of the three countries and has been
incorporated into domestic law. However, it is based on exemptions granted to ‘Member States’ under
Article 6 of Directive 2009/156/EC which normally governs the movement of horses. While the UK could set
its own rules for Irish or French horses coming here, the EU would have to add the UK to an approved list of
non-member states for them to be allowed home again. The EU would also need to agree that Ireland and
France could continue to deviate from its rules in dealings with a non-member state (in any Brexit scenario).

The potential solutions

Nonetheless, this issue should not be as big a deal as the headlines suggest. For a start, horses from
countries outside the TPA still manage to jump the additional hurdles without much difficulty. The main
reasons why more horses do not regularly travel to and from, say, the UK and the US, are the transport
costs and welfare concerns in moving animals long distances, rather than the administrative burden. The UK
itself is unlikely to erect any new barriers, whether to horses from Ireland or further afield.
What’s more, Ireland has potentially most to lose and would lobby hard in favour of continuing the current
arrangements. There is no obvious reason why the EU would stand in the way. The rationale for the TPA is
that racehorses are much healthier than the general equine population. This would not change after Brexit,
especially if the UK committed to maintain veterinary standards comparable to those in the EU. Indeed, as
the UK already meets the standards required to qualify as a safe country, it would probably be a violation of
WTO rules to withhold that approval. There is a particularly strong case for continuing to allow the relatively
free movement of horses between the UK and Ireland, which has long been treated as a single unit for
equine health. (The original TPA dates from the early 1970s.) France then wouldn’t want to lose out either.

Conclusion

There are some valid concerns over the future of the TPA, but the Grand National (first run in 1839) was a
runaway success well before the EU came along and is unlikely to be unseated by Brexit.

Julian Jessop, Chief Economist & Head of the IEA Brexit Unit


Published by brexit,app by the kind permission of  The Institute of Economic Affairs

“GDP already hit 2.1% – and it will only get worse”

“No Deal” Fear-checker
No 5, 14th September 2018

The claims
According to a report from investment bank UBS, the UK economy is already 2.1% smaller than it would
have been without Brexit. And because the UK has not even left the EU yet, the damage will only increase.

The evidence

The UBS report was only the latest of several papers using the same methodology, starting with an academic
blog in November 2017. The clearest (and best) is a recent study by the Centre for Economic Reform (CER),
published this June, which also put the hit to GDP at 2.1%. In short, these studies use a computer algorithm
to select a weighted combination of countries whose growth best matched that of the UK economy before
the EU referendum. This actual performance of the UK economy since the poll is then compared to this
synthetic ‘doppelganger’, and the difference taken as a proxy for the impact of the Brexit vote.

Our Assessment

The UK economy has probably grown more slowly due to the additional inflation prompted by sterling’s fall,
and the heightened uncertainty. Indeed, many Brexiteers acknowledged that the immediate impact of a
vote to leave might be negative. But the figure of 2.1% for the hit to GDP looks far too high.
For a start, the ‘doppelganger’ methodology is unreliable, especially over relatively short periods. In this
case, the US economy (weighted 24% in the CER model) has benefited from the Trump boost, which may
well be temporary. Continental Europe was also due a period of catch up after several years of underperformance
(flattered further by the surprisingly high weight of 23% on Hungary). What’s more, sterling
was already looking over-valued and UK consumer spending was unsustainably high before the referendum.
In other words, the UK would have slipped down the growth league table anyway, regardless of Brexit.
Other estimates in the same ballpark are questionable too. For example, Bank of England Governor Mark
Carney noted in May that the level of UK GDP was between 1.5% and 2% lower than the path implied by the
Bank’s pre-referendum forecasts. But to call this the Brexit impact you have to assume that those earlier
forecasts would otherwise have been right, and that all the shortfall was due to the vote to leave.
For what it’s worth, my own estimate is that the level of GDP is now around 1% lower than it would
otherwise been (still bad, but far smaller than the hit that many, including HMT, had predicted). It is hard to
argue that there has been a much larger shock than this when unemployment has continued to tumble.
The more important point, however, is that whether the initial hit has been 1%, 2%, or something else, it is
wrong to assume that it can only get worse. The fact that the UK has not yet left the EU might mean that the
bulk of any costs are still to come, but also the bulk of any benefits. (Look out for a forthcoming FearChecker
on the long-run economic impacts.) Even the initial hit will be partially reversed if investment
rebounds as uncertainty clears, and exporters feel more confident in taking advantage of the weaker pound.

Conclusion
The CER will be updating its estimates regularly and it will be interesting to see whether these show the
‘cost’ of Brexit rising, or falling. But they don’t tell us much about where the economy will eventually end up.

Julian Jessop, Chief Economist & Head of the IEA Brexit Unit


This Article is published by brexit.app by the kind permission of The Institute of Economic Affairs.London.

“Generators on barges in the Irish Sea”

“No Deal” Fearchecker No3
7th September2018
The Claim
Northern Ireland (NI) relies on the Single Electricity Market (SEM) that operates across the island. In a ‘no deal’ scenario the SEM would no longer function and NI would face severe power disruptions requiring thousands of electricity generators to keep the lights on.
The problem
The SEM was implemented in 2007 and created a wholesale electricity market across NI and Ireland (ROI).
It is designed to be a competitive and efficient market that delivers reliable and affordable energy.
The SEM is operated by the Single Electricity Market Operator (SEMO), a joint venture between EirGrid plc
(the state-owned operator for the ROI) and SONI Limited (the operator for NI and part of the EirGrid group).
SEMO is licensed and regulated cooperatively by the Commission for Energy Regulation in ROI and the Utility
Regulator for Northern Ireland in NI.
The SEM allows free trade of power across the island, with all generators and suppliers trading through a
central, mandatory wholesale market. It involves the physical sharing of electricity across the NI and ROI
grids, with commercial sharing of the same pool of power by all industry participants in both jurisdictions.
The Integrated Single Electricity Market (I-SEM), which goes live on 1st October 2018, is the next iteration of
the SEM. This will align the SEM with EU energy regulation, specifically the EU Target Model, so electricity
market regulation would be derived from EU law. Once functioning, the Commission and CJEU would have
jurisdiction to oversee and enforce these regulations in Ireland.
The problem is not that NI’s participation in the SEM will be ended on the day of Brexit simply because NI
will be part of a third country. The real concern is the potential for divergence in the regulation of electricity
markets. Given that SEM is a joint venture, the electricity regulations governing NI must not diverge from those governing the market in ROI such that the Irish market will be distorted. If this were to happen, the
integrity of the SEM would be compromised, and the Irish government could be forced to terminate the
arrangement or be in breach of its obligations under EU law.
The potential solutions
The problem here is exaggerated. The UK and ROI governments could seek to withdraw from the SEM, but
neither has any desire to do so. What’s more, as the laws in the UK and Ireland stand, there is no need for
them to do so either. Indeed, it is not even clear whether there has ever been a serious plan for barges in
the Irish sea.
While consistent with EU law, the SEM was not the product of EU laws. The SEM developed from a bilateral
desire to co-operate in this field, in keeping with the cooperation envisaged under the Belfast (Good Friday)
Agreement. It is mandated and maintained by national laws in NI and ROI. As a result, the foundations and
legal basis of the SEM would remain unchanged on the UK’s exit from the EU.
Following the EU referendum in 2016, the SEM Committee (the decision making authority for all SEM
matters) voiced its continuing support for I-SEM, noting that “there are good economic reasons for the all
island market which exist independently of European Union law or policy”. Both the operators and the UK
and Irish Governments have been explicit in their desire for continued cooperation.
In order to maintain this, the participation of the NI side must not distort the SEM as a whole (either in the
operation of the market directly or by way of state aid and competition distortions) as this would cause ROI
to be in breach of its obligations under EU law.
In the longer term, to protect the stability of the SEM, the UK Government might agree with the EU that NI
will follow EU energy regulation, with relevant powers devolved to NI, on the assumption that a new
government can be formed there. Although this may raise concerns over a perceived division of NI from the
rest of the UK, in reality the NI energy market is already separate from the mainland, and has its own
regulator, the Utility Regulator for Northern Ireland.
Indeed, legislation implemented by the UK Government has been criticised in the past for failing to consider
potential adverse impact on the SEM. For example, when the carbon price floor was introduced in 2013, the
original proposal was that it would apply equally to NI. This would have meant that NI would have been
unable to maintain the SEM. As a result, NI regulators and companies obtained an exception for NI.
A devolved solution for NI is therefore a logical step in all circumstances and continued regulatory
cooperation is in line with the Belfast (Good Friday) Agreement. In any event, many of the EU’s Third Energy
Package requirements mirror the UK’s energy strategy as a whole, and the UK has already announced the
prioritisation of the Third Energy Package as part of its own energy strategy, so substantive differences
would be limited in practice.
Finally and importantly, agreements on electricity provision are not limited to the SEM. The UK currently
benefits from two major initiatives with France and the Netherlands. Dating from 1986, the Interconnexion
France-Angleterre (IFA) is a joint venture between the French operator RTE and the National Grid. BritNed,
the venture between TenneT and the National Grid was commissioned in 2011. These are different from the
SEM as they provide for the wholesale supply of electricity to the UK grid, rather than participation in a joint
electricity market, and should also be unaffected by Brexit.
Conclusions
Governments and operators on both side s of the border are committed to maintain the SEM. This is also in
keeping with the EU’s stated commitment to deliver competitive energy market and value to consumers, as
its termination would be prejudicial not just to NI but to consumers in the ROI. Given the success of the SEM
and the obligations of cross-border cooperation under the Belfast Agreement, there is no good reason not
to expect it to continue.
Even when the I-SEM becomes operational, the prospect of eventual divergences in market regulations that
would seriously distort the Irish market, causing the Irish Government to withdraw in the future, would still
be remote.
As with other UK-EU electricity joint ventures, it is in the economic interests of all involved to maintain the
SEM. As noted by Irish foreign minister and deputy prime minister Simon Coveney, it is important to keep
the stories about generators on barges in context: the SEM is “one of the great North/South successes that
all are determined to protect”
Victoria Hewson
Senior Counsel, International Trade and Competition Unit
———————————————————————-
Published by brexit.app by kind permission of The Institute of Economic Affairs.

BREXIT NO DEAL TECHNICAL NOTICE NO 84-Travelling in the Common Travel Area if there’s no Brexit deal

Published by HMG on 24th September 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to provide clarity on the Common Travel Area (CTA) arrangements and the associated rights and privileges of British and Irish citizens in the other jurisdictions.

Before 29 March 2019

If you are a British or Irish citizen you can travel freely within the Common Travel Area (CTA) without seeking immigration permission from the authorities. For other nationalities, the CTA’s internal borders are subject to some immigration restrictions but not, or only to a minimal extent, border controls.

As a British citizen in Ireland or an Irish citizen in the UK, to facilitate moving to and working in each other’s jurisdictions you can enjoy associated rights and entitlements including access to employment, healthcare, education, social benefits, as well as the right to vote in certain elections. For nationality purposes, as directed in the British Nationality Act 1981, the Crown Dependencies are treated as if part of the United Kingdom: they do not have separate nationality laws.

The CTA is a long-standing arrangement between the UK, the Crown Dependencies (Jersey; Guernsey; Isle of Man) and Ireland. It has its origins in the 1920s and ensures that British and Irish citizens can move freely between and reside in these islands. The CTA is not reliant on membership of the EU, formed before either the UK or Ireland were members, but based on domestic legislation and bilateral agreements.

The CTA established cooperation between the immigration authorities of its members to provide a pragmatic response to the movement of people within it, including other nationalities who remain subject to immigration control. Central to the UK’s legal framework is that there are no routine immigration controls on journeys from within the CTA to the UK, including on the Northern Ireland-Ireland land border.

The UK’s approach to the CTA is set out in the Immigration Act 1971 and subsequent secondary legislation. These legislative arrangements are extended to the Crown Dependencies. Protocol 20 to the Treaty on European Union and the Treaty on the Functioning of the EU recognises the cooperation between members, confirming that the UK and Ireland can ‘continue to make arrangements between themselves relating to the movement of persons between their territories (the Common Travel Area)’. More recently the Commission has acknowledged that the CTA arrangements can continue, as confirmed in paragraph 54 of the Joint Report from the negotiators of the European Union and the United Kingdom (2017).

The rights of Irish citizens in the UK are rooted in the Ireland Act 1949 but provided for in subsequent legislation and bilateral agreements as the nature of these rights has evolved over time.

The CTA arrangements are deeply embedded within our shared history and are central to our close social and cultural ties. These arrangements complement the provisions of the Belfast (Good Friday) Agreement.

After March 2019 if there is no deal

If you are an Irish citizen you would continue to have the right to enter and remain in the UK, as now. You are not required to do anything to protect your status.

In addition, you would continue to enjoy the reciprocal rights associated with the CTA in the same way that British citizens in Ireland would if there is no deal. These rights include the right to work, study and vote, access to social welfare benefits and health services. Where required domestic legislation and agreements would be updated to ensure that the CTA rights continue to have a clear legal basis.

There would be no practical changes to the UK’s approach to immigration on journeys within the CTA: as now there would be no routine immigration controls on journeys from within the CTA to the UK. The legislation governing this approach will remain unchanged when the UK leaves the EU. So too will the legislative framework of integrated immigration laws between the UK and the Crown Dependencies. The CTAarrangements would be maintained, promoting the benefits of migration between these islands.

If you are not an Irish or British citizen you will be required to continue to meet relevant domestic entry clearance requirements as set out in the Immigration (Control of Entry through the Republic of Ireland) Order 1972 (as amended). The UK will continue to work with Ireland and the Crown Dependencies on the movement of people between these islands, ensuring the effective functioning of the CTA and its external border.

The CTA holds special importance to people in their daily lives: it goes to the heart of the relationship between these islands. The UK government is firmly committed to maintaining the CTA arrangements after the UK leaves the EU, an objective shared by the Crown Dependencies. The Irish Government has been clear also in its commitment to the continuation of the CTA. The CTA has proven to be resilient over the years and would continue to endure if there is no deal.

What you would need to do

If you are a British or Irish citizen in another part of the CTA you are not required to take any action to protect your status or rights associated with the CTA.

When travelling to the UK from within the CTA you should continue with your journey as you do today, meeting any travel requirements set by your carrier.

Irish citizens in the UK and British citizens in Ireland will continue to enjoy the same associated rights and entitlements to public services, including access to employment, healthcare, education, social welfare and benefits, as well as the right to vote in certain elections.

If you are a non-Irish or British citizen arriving in the UK from Ireland you should ensure that you follow UK entry clearance requirements. Find out more about entry clearance requirements.

More information

Find out more about the CTA and rights of Irish citizens in the UK as the UK leaves the EU.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 83-Taking your pet abroad if there’s no Brexit deal

Published by HMG on 24th September 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice sets out how the arrangements that allow pet owners to travel to and from the EU with pets (cats, dogs and ferrets) would change if the UK leaves the EU in March 2019 without a deal. It explains what pet owners would need to do to prepare their pets for travel, and what Official Veterinarians (OVs) would need to do to ensure UK pet owners travelling with their pets continue to meet the requirements of the EU pet travel scheme.

Before 29 March 2019

Under the EU Pet Travel Scheme, owners of dogs, cats and ferrets can travel with their animals to and from EU countries provided they hold a valid EU pet passport.

Before a pet can travel from the UK to an EU country for the first time, it must be taken to an Official Veterinarian (OV) at least 21 days before travel. The OV will ensure the animal has a microchip and rabies vaccination, before issuing an EU pet passport, which remains valid for travel for the pet’s lifetime or until all of the treatment spaces are filled.

On its return to the UK, the pet has its microchip scanned (to confirm its identity) and passport checked (to ensure it corresponds with the microchip and treatment requirements are met). Dogs returning to the UK from countries that are not free from Echinococcus multilocularis (a type of tapeworm) must have an approved tapeworm treatment administered by a vet between one and five days before entering the UK.

After March 2019 if there’s no deal

If the UK leaves the EU in March 2019 with no deal, it would become a third country for the purposes of the EU Pet Travel Scheme.

Pets would continue to be able to travel from the UK to the EU, but the requirements for documents and health checks would differ depending on what category of third country the UK becomes on the day we leave the EU. Within the Pet Travel Scheme, there are three categorisations of ‘third country’, linked to a country’s animal health status: ‘listed: Part 1’, ‘listed: Part 2’, or ‘unlisted’.

Third countries apply to the European Commission to be listed under Part 1 or Part 2 of Annex II to EU Pet Travel Regulations. A small number of countries and territories are Part 1 listed, which means they operate under the same EU Pet Travel Scheme rules as EU member states. The majority of countries are Part 2 listed, which means additional conditions, such as the use of temporary health certificates. If a country has not applied or been accepted as a Part 1 or Part 2 listed country, it is an unlisted third country, and owners must take some specific actions several months before they wish to travel.

We are seeking technical discussions with the European Commission to allow the UK to become a listed third country on the day we leave the EU. We will continue to press the Commission to discuss this option with us. However, to allow effective contingency planning, this notice explains the impacts of all three different types of third country status in terms of the EU Pet Travel Scheme.

If the UK is a listed third country

Should the UK become a Part 1 listed country, there would be little change to the current pet travel arrangements, with only minor changes needed to documentation for travel between the UK and EU and no change for pet owners from what they currently need to do in terms of health preparations.

Should the UK become a Part 2 listed country, there would be some new requirements, but they would not be as burdensome as those for unlisted status. There would be no requirement for a blood titre test, which would remove the three month waiting period before travel, although pet owners would still need to ensure rabies vaccinations were kept up to date. Before a pet could travel from the UK to an EU country for the first time, it would still need to be taken to an Official Veterinarian (OV) at least 21 days in advance. The OV would ensure the animal has a microchip and rabies vaccination.

Pet owners would still need an OV to issue a health certificate confirming the pet was appropriately identified and vaccinated against rabies, as in an unlisted no deal scenario. This document would differ from the current EU pet passport. It would be valid for ten days after the date of issue for entry into the EU, and for four months of onward travel within the EU. Health certificates would have to be issued for each trip to the EU.

On arrival in the EU, pet owners travelling with their pet would still be required to report to a Travellers’ Point of Entry as set out above.

If the UK is an unlisted third country

Should the UK become an unlisted third country, pet owners intending to travel with their pet from the UK to EU countries would need to discuss preparations for their pet’s travel with an Official Veterinarian (OV) at least four months in advance of the date they wish to travel. This means pet owners intending to travel to the EU on 30 March 2019 would need to discuss requirements with their vet before the end of November 2018.

Rabies vaccinations

Pet owners would need to prove animals are effectively vaccinated against rabies before they could travel with their pet to EU countries. This would require a blood titre test to demonstrate sufficient levels of rabies antibody, which would need to be carried out a minimum of 30 days after any initial rabies vaccination.

  • Pets that have previously had a blood titre test, and whose rabies vaccinations are up to date, would not be required to repeat the blood test before travel.
  • Pets that have not previously had a blood titre test, but whose rabies vaccinations are up to date, would be required to have the blood test carried out prior to travel. If the result shows sufficient levels of antibody, a three-month waiting period before travel would still be required from the date the blood was drawn to ensure no rabies symptoms develop. If the result shows insufficient levels of antibody the pet will be treated as if the rabies vaccination were not up to date as described below.
  • Pets that have not previously had a blood titre test, and have never had a rabies vaccination, or the vaccination is not up to date, would be required to have a rabies vaccination before the blood titre test. There must then be a 30 day waiting period before the blood sample is drawn for the titre test, to allow time for sufficient rabies antibodies to develop. Once a blood titre test shows sufficient levels of antibody, there must be a three-month waiting period between the date the blood is drawn and the date of travel.

In both the second and third cases, pet owners would need to visit their vet to discuss health preparations at least four months before they intend to travel with their pet.

The lifespan of the vaccination will depend on the brand of vaccination used. The majority last for around 3 years. Provided a pet’s rabies vaccinations are kept up to date once a test has shown a satisfactory blood titre, the blood test does not need to be taken again.

Pet owners travelling from the EU to the UK would need to ensure their pets had a satisfactory rabies antibody blood titre test to re-enter the EU. This would need to be administered prior to leaving the EU but there is no requirement for a three month wait period before travel.

Health certificates to travel to the EU

Once the rabies vaccination and (if required) blood titre test shows sufficient levels of antibody, pets would need to be taken back to an OV, who would then issue a health certificate confirming the pet was appropriately identified and vaccinated against rabies. This document would be different from the current EU pet passport. It would be valid for ten days after the date of issue for entry into the EU, and for four months of onward travel within the EU.

Health certificates would have to be issued for each trip to the EU. For repeat journeys, where proof of vaccination history and a satisfactory blood titre test were available, the pet owner would only have to visit an OV and obtain a new health certificate at some point within ten days before travel.

Arriving in the EU

On arrival in the EU, pet owners travelling with their pets would be required to report to a designated Travellers’ Point of Entry (TPE). At the TPE, the pet owner would be asked to present proof of microchip, vaccination and the blood test result alongside their pet’s health certificate.

Further information

More information on the documents that would be required to enter or re-enter the UK if the UK leaves the EU without a deal will be made available for pet owners and their vets in due course. The documents required to enter or re-enter the UK would be the same in both an unlisted or Part 2 listed country scenario.

Further information and instructions would be shared with OVs authorised to deal with pet travel, pet carriers and the industry in advance of the November preparation deadline.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario

BREXIT NO DEAL TECHNICAL NOTICE NO 82-Regulation of veterinary medicines if there’s no Brexit deal

Published by HMG on 24th September

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to outline the arrangements that would come into force to regulate veterinary medicines in the unlikely event the UK leaves the EU on 29 March 2019 with no agreement in place, with specific reference to:

  • Marketing Authorisation Holder (MAH) – legal presence requirements
  • Veterinary ‘Generic’ Marketing Authorisations – reference products
  • Marketing Authorisation for Parallel Import (MAPI)
  • Maximum Residue Limits (MRLs)

Before March 2019

The UK is currently part of the EU regulatory framework for medicines and is a member of the European Medicines Agency (EMA).

The Veterinary Medicines Directorate (VMD) is the UK authorising body for assessing veterinary medicine Marketing Authorisation (MA) applications. Currently, an MAH can be based anywhere in the EU.

There are several different legal bases upon which an application for an MA may be submitted. These reflect the type and content of the data submitted in support of the application. Two of these include:

  • Generic: The MA is based on safety and efficacy aspects of data from an existing approved veterinary medicine authorised within the UK, EU or EEA, which is known as the “reference product”.
  • MAPI: This is when an EU authorised veterinary medicine is imported and marketed in the UK. The veterinary medicine to be imported (known as the “parent product”) must be “essentially similar” or identical to a UK authorised veterinary medicine.

UK MAs can be granted for use in food-producing animals. To ensure consumer safety, and facilitate trade in animal food products, maximum residue levels (MRLs) are set by the European Commission. MRLs are scientifically determined highest levels of pharmacologically active substances that are allowed in food derived from farmed animals (including game) following treatment with veterinary medicines. These foods include lean meat, offal, fat, skin (pigs, poultry and fish only), milk, eggs (poultry only), and honey.

After March 2019 if there’s no deal

The UK government is committed to negotiating a future relationship with the EU which, for veterinary medicines, would include the UK exploring the terms on which we could remain part of the EMA.

However, in a ‘no deal’ scenario, where we are no longer part of the EU regulatory framework for veterinary medicines, the UK would need to carry out functions nationally, which are currently undertaken centrally through the EU.

Sharing of common systems, and exchange and recognition of data submitted for regulatory activities, between the UK and EU countries would cease.

This would require changes to the Veterinary Medicines Regulations with some implications for veterinary medicine pharmaceutical industry stakeholders.

Implications

In order to ensure the VMD could retain full control of UK marketed veterinary medicines and could take swift, appropriate legal action to protect public health, the MAH would need to be established within the UK. This would enable the UK to accept Qualified Person (QP) release and Qualified Person Responsible For Pharmacovigilance (QPPV) to be based elsewhere outside of the UK.

Actions: Pharmaceutical companies would need to ensure they have an established location within the UK. Further details regarding a timescale for this will be published in due course.

Veterinary ‘Generic’ Marketing Authorisations – Reference Products

The VMD would not have access to the data packages provided in support of EU approved reference products. Whilst this data would have been assessed by another authorising body, the VMD takes full responsibility for a new generic MA application assessment and would need to have confidence that suitable data are available to support the approval of the new MA. Therefore, new generic applications would need to be restricted to those based on reference products authorised in the UK. However if a specific EU product, not authorised in the UK, was required for the treatment of an individual/group of animals, this could be obtained from a veterinary surgeon through the current Special Import Scheme.

Existing generic-based UK MAs, which cite an EU authorised reference product, would still remain authorised after the UK leaves the EU. Any changes to the MA would require the original data to be submitted to the UK for approval.

Actions: For new generic applications, pharmaceutical companies would need to ensure these are based on UK reference products.

For currently authorised generic applications which cite an EU reference product, if future changes were to be made these may need to be supported by proprietary data, as appropriate.

MAPI (Marketing Authorisation for Parallel Import)

MAPI applications require assessment to confirm the proposed EU authorised parent product is ‘essentially similar’ or identical to a UK MA. In a ‘no deal’ scenario, the UK would continue to accept veterinary MAPI applications, but original data from the parent product would not be available from the authorising EU country. The responsibility for obtaining necessary parent product data would pass to the MAPIapplicant who would need to contact the regulatory authority for the parent product.

Actions: Pharmaceutical companies wishing to submit MAPI applications would need to ensure they would be able to obtain the parent product data from the regulatory authority for the parent product.

Maximum Residue Limits (MRLs)

Existing EU MRLs would become UK law via the EU Withdrawal Act. This would ensure the UK can continue to trade animal food products with the EU and the majority of third countries that recognise the EU process.

After this, the UK would need to set new MRLs and modify existing MRLs on a UK domestic basis. In order to assess MRL applications, the VMD would need to have access to supporting data. To maximise flexibility, the Secretary of State for Defra would have the power to set MRLs based on data from a range of sources, including other MRL setting bodies. UK exporters of products of animal origin to the EU would need to ensure they comply with EU MRLs, including those which may diverge from UK MRLs.

Marketing veterinary medicines in the EU

The EMA has published guidance on its website as to the approach EU/EEA/EFTAcountries will take on human and veterinary medicines certified by a UK-based Qualified Person. Please refer to the EMA website for this advice if relevant to your organisation.

Actions: New MRL applications need to be submitted to the UK with the full supporting data, as appropriate.

UK exporters of products of animal origin to the EU would need to ensure they comply with EU MRLs, including those which may diverge from UK MRLs.

Further information

Please see the other two technical notices relating to the regulation of veterinary medicines for further information, and the information stated within this technical notice is subject to matters addressed in other technical notices.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 81-Registration of veterinary medicines if there’s no Brexit deal

Published by HMG on 24th September 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to outline the arrangements that would come into force to regulate veterinary medicines in the unlikely event the UK leaves the EU on 29 March 2019 with no deal in place, with specific reference to:

  • batch testing of veterinary medicines
  • Qualified Person (QP) batch certification and release of veterinary medicines
  • Wholesale Dealer’s Authorisations
  • Manufacturing Authorisation requirements for imported medicinal products from the EU/EEA
  • centralised veterinary medicine authorisations

Before 29 March 2019

Under EU law, batch testing by manufacturers that hold a UK manufacturing Authorisation for veterinary medicines can be undertaken anywhere in the EU, EEA, or other countries with whom the EU has made appropriate arrangements (Australia, Canada, New Zealand and Switzerland).

A UK manufacturing authorisation is required for veterinary medicines manufactured in the UK; and a Qualified Person (QP) based in the EU (including the UK) or EEA must certify that each manufactured batch of product complies with its marketing authorisation. The batch testing may be undertaken in the EU (including the UK) or EEA, or a country with appropriate arrangements (for veterinary medicines, Australia, Canada, New Zealand, and Switzerland). These medicines can then be marketed anywhere in the UK/EU/EEA without further certification.

For veterinary medicines manufactured in another EU member state/EEA the batch testing and certification/release must be carried out by a QP based in the EU (including the UK)/EEA, which allows the batch to be marketed (subject to the Marketing Authorisation) in any other EU/EEA country, including the UK, without the need for any further certification. However, a Wholesale Dealer’s Authorisation (WDA) is required to supply these veterinary medicines in the UK.

For veterinary medicines manufactured in a non-UK, non-EU, non-EEA country (third country), batch testing is generally required by the importer located within the UK/EU/EEA, except where third countries have made appropriate arrangements with the EU (Australia, Canada, New Zealand, Switzerland). The importer requires a manufacturing (import) authorisation.

However, all veterinary medicines manufactured in a third country require a QP based in the UK/EU/EEA to certify that the veterinary medicine meets all the required standards, and meets the specification of its Marketing Authorisation, before it can be released from the importer to be marketed in the EU and EEA (including the UK).

A centrally authorised veterinary medicine is one that has been assessed on an EU wide level involving all EU and EEA Member States (MS). A centrally authorised medicine has a pan-European authorisation issued by the European Commission permitting the marketing, distribution and supply of the product in all EU MSs including the UK.

After March 2019 if there’s no deal

In the unlikely event there is no agreement between the UK and EU regarding future arrangements, mutual recognition of batch testing of veterinary medicines between the UK and EU / EEA would cease on the date the UK leaves the EU. The mutual recognition of batch testing of veterinary medicines between the UK and third countries with which the EU has made appropriate arrangements would also cease, as would mutual recognition between the UK and EU/EEA Member States of batch certification of veterinary medicines by a QP.

In this unlikely event, in order to deliver a smooth transition and ensure continuity of supply of veterinary medicines, the UK would for a time limited period continue to accept batch testing of veterinary medicines carried out in EU/EEA or any third countries with whom the EU has made arrangements.

The UK would also accept batch certification of veterinary medicines by a QP based in the UK/EU/EEA. The UK would have the option to change these arrangements in the future.

Any veterinary medicines imported into the UK from any other third country would continue to require batch testing in the UK and certification / release from a QP based in the UK/EU/EEA, except where third countries and the EU have made appropriate arrangements with each other.

For industry, all of the above options would mean no change to their normal operating procedures. Products that meet EU requirements could continue to be placed on the UK market without any need for retesting or re-marking. This would apply for a time-limited period and sufficient notice would be given to businesses before that period ends.

For medicines manufactured in the UK with the view to exporting these to the EU and European Free Trade Association (EFTA), the EMA has produced guidance which can be found on their website.

Although the Veterinary Medicines Directorate (VMD) does not directly issue a marketing authorisation for veterinary medicines authorised by the EU centralised procedure, the product is authorised for use in the UK and would therefore automatically become nationally authorised when the UK leaves the EU. This would prevent the need for re-authorisation at a UK level.

Implications

Implications for the pharmaceutical sector differ depending on whether veterinary medicines are marketed in the UK or EU/EEA market.

Marketing veterinary medicines onto the UK Market

After March 2019, the UK will continue to accept batch testing of veterinary medicines undertaken in the EU, EEA and the countries the EU has made appropriate arrangements, in the same manner as today.

In addition, the UK will accept batch certification by Qualified Persons of veterinary medicines undertaken in the EU and EEA.

Finally, EU centralised marketing authorisation holders will be required to inform the VMD if they would prefer not to have these European authorisations converted to UK authorisations. We will then confirm UK expiry of the veterinary medicine authorisation.

Marketing veterinary medicines onto the EU Market

After March 2019, in the unlikely event there is no agreement between the UK and the EU, the European Medicines Agency (EMA) has published guidance on its website as to the approach EU/EEA/EFTA countries would take to human and veterinary medicines certified by a UK-based Qualified Person. Please refer to the EMA website.

More information

Please see the other two technical notices relating to the regulation of veterinary medicines for further information, and the information stated within this technical notice is subject to matters addressed in other technical notices.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 80-Accessing animal medicine IT systems if there’s no Brexit deal

Published by HMG on 24th September 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

The purpose of this notice is to inform key stakeholders of the actions they will need to undertake to continue to submit regulatory and notification information to the UK, via the Veterinary Medicines Directorate (VMD), in the event that the UK leaves the EU in March 2019 with no agreement in place.

Before 29 March 2019

Under the current EU membership, the UK is integrated in European regulatory networks for veterinary medicines. These regulatory networks have, over time, developed shared processes and systems. Several regulatory activities make use of common methods for submitting and exchanging information throughout the Union. These common systems, in the case of veterinary medicinal products, include, but are not limited to:

  • Common European Submission Portal (CESP)
  • Gateway (Pharmacovigilance)
  • EudraLink
  • WebTrader (Pharmacovigilance)

After March 2019 if there’s no deal

In the unlikely event that the UK leaves the EU in March 2019 with no agreement in place regarding future arrangements, the UK would no longer be part of EU veterinary medicine regulatory networks. The sharing of common systems, and exchange and recognition of data submitted for regulatory activities, between the UK and EU Member States would cease.

The VMD would have independent processes and systems to manage UK veterinary medicines and regulatory activities end-to-end. To enable this, new systems will be in place ready for March 2019.

Implications

After exit, regulatory information relating to veterinary medicines would need to be submitted and processed via separate routes for the EU and UK. The VMD would provide a service to allow for the submission and exchange of information for veterinary medicine activities, including, but not limited to, the following types of submissions:

  • Marketing Authorisation (MA) Applications
  • Periodic Safety Update Reports
  • Qualified Person for Pharmacovigilance (QPPV) and Pharmacovigilance System notifications

Applications to both the EU and the UK would require submission of application dossiers through EU channels as well as submitting directly to the UK. In addition the VMD would ensure suitable solutions are in place to facilitate the submission and sharing of pharmacovigilance reports and data.

The VMD aims to adhere to the following principles in developing independent processes and systems for regulatory activities:

  • Minimise impact where possible. For example: VMD would continue to accept EU standards for submission of data; The current electronic format, VNeeS, would still be the underlying format required for submission of regulatory documents related to a Marketing Authorisation (MA), with the exception of Active Substance Master Files (ASMFs), which can be in either VNeeS or e-CTD format.
  • Avoid unnecessary complexity, for example by replicating established processes.
  • Ensure systems are available for March 2019, with these then being further developed over time.

Development of new solutions

In advance of leaving the EU, the VMD will provide suitable communications and guidance to stakeholders to inform them of new processes and systems. We are planning for this to be provided later this year. It is our intention that where these systems are outward facing there will be some stakeholder testing; where required, training will also be provided.

If stakeholders need to modify their own systems to allow direct exchange with new VMD systems, we aim to provide notice and support to enable the implementation of any connections later this year.

Industry interaction with the EU

UK industry should be able to continue interacting with the EU regulatory network as per EMA and EU guidance.

More information

Please see the other two technical notices relating to the regulation and registration of veterinary medicines for further information, and the information stated within this technical notice is subject to matters addressed in other technical notices.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 79-Trading in drug precursors if there’s no Brexit deal

Published by HMG on 20th September 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it’s our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until we can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

We are working with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

If the UK leaves the EU in March 2019 without a deal, find out how this would affect you if you are handling and trading in drug precursor chemicals.

Drug precursors are chemicals that can be used in the illicit manufacture of narcotic drugs. They also have legitimate commercial uses and are legally used in a wide variety of industrial processes, such as medicines, flavourings and fragrances.

They are divided into four categories, which are:

  • category 1: the most sensitive substances (the ‘main’ drug precursors)
  • category 2: less sensitive substances and pre-precursors
  • category 3: bulk chemicals that can have different types of uses in the manufacturing process, for example as feedstock, solvents or impurities removers
  • category 4: covers medicinal products for human and veterinary use containing ephedrine or pseudoephedrine

Before 29 March 2019

If you’re trading in drug precursor chemicals outside the EU you must hold a domestic drug precursor chemical licence (for category 1 substances) or registration (for all category 2 and in some cases category 3 substances).

If you’re a UK company trading in drug precursor chemicals with another EU country, you don’t need an import or export licence and the substance can be shipped immediately.

If you want to trade outside the EU you may need to apply for an import or export licence and you’re required to provide a pre-export notification (PEN) for some categories of chemicals. This means that the substance cannot be shipped for 15 days while the importing authority considers the export. The application fee for an individual export or import licence is £24.

After March 2019 if there’s no deal

In the unlikely event the UK leaves the EU with no deal, EU regulations would no longer apply to the UK and the UK would be treated by the EU as a ‘third country’. This means that the current rules that apply for trading in drug precursor chemicals with countries outside the EU will apply for UK-EU trade. This is an established regime which derives from the requirements of wider international obligations under the UN International Drug Conventions.

The UK is transposing the relevant EU regulation into UK law, to enable the drug precursor chemicals regulatory system to operate.

If you are handling drug precursor chemicals in the UK, or you are already trading with non-EU countries, there will be no change to the licensing and registration requirements.

What you need to do

In the unlikely event of a no deal, you would need the same licences and registration to trade with the EU as you currently need to trade with non-EU countries.

For category 1 substances you would need a domestic drug precursor chemical licence. For category 2 substances and some category 3 substances, you would need to make an application for a ‘registration’ with the Home Office.

You will need to apply for an import and/or export licence when trading with EU countries in certain categories of drug precursor chemicals.

You may also need a pre-export notification (PEN) to trade in certain drug precursor chemicals. The PEN requirement will depend on the category of chemical and individual country’s requirements i.e. a country may request a PEN for certain drug precursor chemicals if there’s an increased risk of diversion in their country.

The licensing/registration and PEN requirements are outlined below:

Domestic Licensing/Registration Requirements

  • If you currently trade with the EU in Category 1 drug precursor chemicals – No change to domestic licence requirements – A domestic licence is always required if you are using drug precursors in the UK (end user), trading within the EU and exporting/importing with third countries.
  • If you currently trade with the EU in Category 2A drug precursor chemicals – Change in requirements – You will need to register with the Home Office if you want to trade within the EU regardless of volume (currently you are only required to register if more than 100L per annum). If businesses are only handling drug precursors in the UK then there will be no change to requirements.
  • If you trade with the EU in Category 2B drug precursor chemicals – Change in requirements – You will need to register with the Home Office if you want to trade within the EU regardless of volume (currently only required to register if it exceeds certain volumes). If businesses are only handling drug precursors in the UK then there will be no change to requirements.
  • If you trade with the EU in Category 3 drug precursor chemicals – Change in requirements – You will need to register with the Home Office if you want to trade within the EU and are exporting quantities which exceed certain volumes (depending on chemical but between 20kg – 100kg per annum). If you are only handling drug precursors in the UK then there will be no change to requirements.
  • If you are trading with third countries in all categories of drug precursor chemicals – No change in requirements.
  • If you only handle drug precursors in the UK – No change in requirements.

Fees are payable for all ‘domestic’ licences/registrations and range from £109 to £3,655, depending on whether an applicant already holds a licence with us.

Import and Export Licensing/Registration Requirements

  • If you are trading within the EU in Category 1 drug precursor chemicals – Change in requirements – You will need to apply for an import and export licence and PEN.
  • If you are trading within the EU in Category 2A drug precursor chemicals– Change in requirements – You will need to apply for an export licence and PEN. No change to import licences.
  • If you are trading within the EU in Category 2B drug precursor chemicals – Change in requirements – You will need to apply for an export licence and a PEN may be required depending on the importing country’s requirements. No change to import authorisations.
  • If you are trading within the EU in Category 3 drug precursor chemicals – Change in requirements – You will need to apply for an export authorisation and a PEN may be required depending on importing country’s requirements. No change to import authorisations.
  • If you are trading within the EU in Category 4 drug precursor chemicals – Change in requirements – You may need to apply for an export licence and a PEN may be required depending on importing country’s requirements. No change to import authorisations.

The fee for an individual export or import licence is £24.

More information

The UK is a signatory to the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988 (“the UN Convention”), which establishes controls on these substances to prevent the illicit manufacturing of drugs while also allowing for legitimate trade.

EU legislation implements the UK’s international obligations under Article 12 of the UN Convention through:

  • Council Regulation (EC) No 273/2004 of the European Parliament and of the Council, which controls and monitors trade in drug precursors within the EU
  • Council Regulation (EC) No 111/2005, which controls trade in drug precursors between EU and third countries

You can find out more about drug precursor chemical licensing, how to apply for licences and registrations and the associated fees online.

Making an application to the Home Office – Domestic Licences/Registrations

As part of contingency planning for a no deal scenario, you may apply for a domestic licence and registrations for drug precursor chemicals online now, although a fee will apply.

If you already hold a domestic licence/registration in order to trade with non-EU countries, you will not be required to apply for a separate licence for trade with the EU. Please note however that an individual licence or registration is required for each site. Please note that import-export licences can only be issued to holders of a valid domestic licence, where one is needed. Domestic licences are valid for a period of one year.

Making an application – Import and Export Licences/Registrations

Should a deal not be agreed with the EU, the import and exporting licensing requirements will come into place at 23:00 on 29 March 2019. The Home Office will process applications in date order – you should plan on the basis of a 7 working day processing time.

All import licences are normally valid for 3 months and export licences will be valid for 2 months or in line with the importing country’s permit, whichever expires first. Please note that import or export licences cannot be issued until such time as the relevant domestic licence is held, should one be needed.

If you are a UK business you must register for a National Drugs Control System (NDS) account to apply for any import or export licences in order to facilitate international trade. The NDS is used to administer the import and export licensing regime of the UK.

Registered NDS users can then apply for a licence online. Individual import and/or export licences are required every time a shipment takes place.

This notice is meant for guidance only. You should consider whether you need separate professional advice before making specific preparations.

It is part of the government’s ongoing programme of planning for all possible outcomes. We expect to negotiate a successful deal with the EU.

The UK government is clear that in this scenario we must respect our unique relationship with Ireland, with whom we share a land border and who are co-signatories of the Belfast Agreement. The UK government has consistently placed upholding the Agreement and its successors at the heart of our approach. It enshrines the consent principle on which Northern Ireland’s constitutional status rests. We recognise the basis it has provided for the deep economic and social cooperation on the island of Ireland. This includes North-South cooperation between Northern Ireland and Ireland, which we’re committed to protecting in line with the letter and spirit of Strand two of the Agreement.

The Irish government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU Member States. The UK would stand ready in this scenario to engage constructively to meet our commitments and act in the best interests of the people of Northern Ireland, recognising the very significant challenges that the lack of a UK-EU legal agreement would pose in this unique and highly sensitive context.

It remains, though, the responsibility of the UK government, as the sovereign government in Northern Ireland, to continue preparations for the full range of potential outcomes, including no deal. As we do, and as decisions are made, we’ll take full account of the unique circumstances of Northern Ireland.

Norway, Iceland and Liechtenstein are party to the Agreement on the European Economic Area and participate in other EU arrangements. As such, in many areas, these countries adopt EU rules. Where this is the case, these technical notices may also apply to them, and EEA businesses and citizens should consider whether they need to take any steps to prepare for a ‘no deal’ scenario.

BREXIT NO DEAL TECHNICAL NOTICE NO 78-Generating low-carbon electricity if there’s no Brexit deal

Published by HMG on 24th September 2018

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.

Negotiations are progressing well and both we and the EU continue to work hard to seek a positive deal. However, it is our duty as a responsible government to prepare for all eventualities, including ‘no deal’, until the UK can be certain of the outcome of those negotiations.

For two years, the government has been implementing a significant programme of work to ensure the UK will be ready from day 1 in all scenarios, including a potential ‘no deal’ outcome in March 2019.

It has always been the case that as we get nearer to March 2019, preparations for a no deal scenario would have to be accelerated. Such an acceleration does not reflect an increased likelihood of a ‘no deal’ outcome. Rather it is about ensuring our plans are in place in the unlikely scenario that they need to be relied upon.

This series of technical notices sets out information to allow businesses and citizens to understand what they would need to do in a ‘no deal’ scenario, so they can make informed plans and preparations.

This guidance is part of that series.

Also included is an overarching framing notice explaining the government’s overarching approach to preparing the UK for this outcome in order to minimise disruption and ensure a smooth and orderly exit in all scenarios.

The government is engaging with the devolved administrations on technical notices and we will continue to do so as plans develop.

Purpose

This notice explains to electricity generators and suppliers, installers of certain microgeneration technologies, and renewable electricity suppliers and generators how the following will apply in the unlikely event that the UK leaves the EU in March 2019 with no agreement in place:

  • how rules for Guarantees of Origin for electricity generated from high-efficiency cogeneration will apply in the UK
  • getting a Renewable Energy Guarantees of Origin certificate from the Gas and Electricity Markets Authority or the Northern Ireland Authority for Utility Regulation, and where certificates will be recognised
  • how the UK and European Economic Area states will recognise installer certification for installers of certain microgeneration technologies
  • the implications for support for generating low-carbon electricity, including support schemes like Feed-in Tariffs, Contracts for Difference and the Renewables Obligation

Guarantees of Origin of electricity produced from high-efficiency cogeneration

Before 29 March 2019

Guarantees of Origin are required to meet international obligations on fuel mix disclosures (a public statement setting out the different types of energy sources contributing to the overall fuel mix). They are certificates that identify the origin of generated electricity from combined heat and power. Combined Heat and Power Guarantees of Origin are issued and recognised across EU countries. If a combined heat and power generator sells electricity to an electricity trader or supplier in any EU country, Guarantees of Origin enable its origin to be identified for electricity suppliers’ fuel mix disclosure obligations.

In the UK, regulations provide for combined heat and power Guarantees of Origin to be issued by the Secretary of State for Business, Energy and Industrial Strategy for electricity generated from combined heat and power sources in Great Britain. The Department for the Economy fulfils this function in Northern Ireland.

The powers to issue Guarantees of Origin for electricity generated from combined heat and power are devolved to Northern Ireland. The government will continue working, in the absence of an Executive, with the Northern Ireland Civil Service to ensure the new rules for Guarantees of Origin work for the whole of the UK.

After March 2019 if there’s no deal

In a ‘no deal’ scenario, the government will ensure that Great Britain will continue to recognise Guarantees of Origin issued in Northern Ireland and EU countries. This will allow electricity suppliers in Great Britain to continue to use EU and Northern Ireland Guarantees of Origin to comply with their fuel mix disclosure obligations and ensure that existing supply contracts are not compromised, in so far as these contracts depend upon Guarantee of Origin. This position will be kept under review.

Implications

Guarantees of Origin from combined heat and power issued in Great Britain and Northern Ireland will no longer be recognised in the EU. This will mean that existing contracts with EU countries’ electricity suppliers or traders may be compromised if the contract terms require the transfer of a Guarantee of Origin recognised by the EU.

Actions for businesses and other stakeholders

Electricity suppliers will not need to take any specific actions, as Great British, Northern Irish and EU countries’ Guarantees of Origin will continue to be recognised for their fuel mix disclosure obligations in Great Britain in a no deal scenario. Generators will not need to take any action where they are selling to suppliers in Great Britain (as Guarantees of Origin will still be issued and recognised in Great Britain). If generators wish to sell to EU suppliers, then they may wish to consider how they market their exports.

More information

The UK government is working to amend the relevant regulations to ensure that they remain legally operable in Great Britain after the point the UK exits the EU.

Further information will be available in this guidance on combined heat and power.

Renewable Energy Guarantees of Origin: reporting renewable electricity if there’s no Brexit deal

Before 29 March 2019

In the UK, Renewable Energy Guarantees of Origin are used to track and account for electricity generated by renewable energy sources.

Regulations currently provide for the Gas and Electricity Markets Authority (in Great Britain) and the Northern Ireland Authority for Utility Regulation (in Northern Ireland) to issue Renewable Energy Guarantees of Origin for renewable electricity generated in the UK, when requested to do so by generators. The Regulations also require recognition of Renewable Energy Guarantees of Origin issued in the EU.

The powers to issue Renewable Energy Guarantees of Origin are devolved to Northern Ireland. The government will continue working, in the absence of an Executive, with the Northern Ireland Civil Service to ensure the new rules for Guarantees of Origin work for the whole of the UK.

After March 2019 if there’s no deal

In a ‘no deal’ scenario, the government will ensure that Renewable Energy Guarantees of Origin issued in EU countries will continue to be recognised. This will allow electricity suppliers to continue to use EU Renewable Energy Guarantees of Origin, and will ensure that existing supply contracts are not compromised, in so far as these contracts depend upon Renewable Energy Guarantees of Origin. This position will be kept under review.

Implications

Renewable Energy Guarantees of Origin issued in the UK will no longer be recognised in the EU. This will mean that existing contracts with EU countries’ electricity suppliers or traders may be compromised if the contract terms require the transfer of a Renewable Energy Guarantee of Origin recognised by the EU.

Actions for businesses and other stakeholders

Electricity suppliers will not need to take any specific actions, as Great Britain, Northern Ireland and EU countries’ Renewable Energy Guarantees of Origin will continue to be recognised in the UK. Electricity generators will not need to take any action where they are selling to suppliers in the UK, but where generators are selling to EU suppliers, they may wish to consider how they market their exports.

More information

The UK government will amend the relevant regulations to ensure that they remain legally operable after EU exit.

Further information will be provided on the Ofgem website and on the relevant GOV.UK page.

Certification of installers of certain microgeneration technologies

Before 29 March 2019

‘Microgeneration technologies’ are small-scale installations used