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Scottish Government Overview of ‘No Deal’ Preparations

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And in another publication today, 08 October 2019, the Scottish Government released details of their own no-deal planning.

Our preparation for ‘no deal’ Brexit and planning work to date, and proposed mitigations to deal with the impact on Scotland of a ‘no deal’ exit from the European Union.

https://www.gov.scot/publications/scottish-government-overview-no-deal-preparations/

The Scottish Government has consistently opposed the UK’s proposed departure from the EU, in line with the clear majority of votes in Scotland in the 2016 referendum.

At the same time, we have also been willing to seek compromise – for example, by suggesting that the UK at least remains part of the single market and customs union.

While the risk of a ‘No Deal’ exit remains, as a responsible Government, we are taking appropriate steps to mitigate its potential impacts. In doing so, we are seeking to protect Scotland from the worst impacts of No Deal.

This overview of our No Deal planning sets out, in clear terms:

o the potential impacts of ‘No Deal’

o the steps we are taking, or planning to take – to mitigate those impacts as far as we can

o the actions we are demanding of the UK Government to mitigate some of the impacts

We must also recognise that, whatever preparations we make in Scotland or action the Scottish Government and its partners may take, and indeed whatever the UK Government might do, it is simply not possible to avoid all the impacts of a ‘No Deal’ exit.

It remains possible that ‘No Deal’ can be avoided. But we need to prepare proportionately now, and be as ready as we can be in case the worst happens. This overview describes how the Scottish Government is preparing as best we can for a possible No Deal exit from the EU on 31 October.

Scottish Government Overview of ‘No Deal’ Preparations (pdf)

Scottish Government Overview of ‘No Deal’ Preparations (local copy pdf)

Scottish Government advice for businesses and the public

The Scottish Government and its Agencies have published a range of information to support businesses and individuals prepare for the UK leaving the EU without a deal.

Scottish Government – https://www.gov.scot/brexit
mygov.scot – https://www.mygov.scot/brexit
Scottish Enterprise – https://www.scottish-enterprise.com/prepare-for-brexit
PrepareforBrexit.scot – https://www.prepareforbrexit.scot

Brexit readiness report – 08 October 2019

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Preparations to ensure that the UK is ready for Brexit on 31 October will be set out in a paper published today by the Chancellor of the Duchy of Lancaster Michael Gove.

The Government has put forward serious and reasonable proposals to the EU and continues to work at pace to secure a deal, but this will require movement from the EU. If we leave without a deal, the Brexit readiness report includes details of the Government’s work to make sure that citizens and businesses are ready for Brexit on 31 October.

The report also sets out the preparation underway to ensure that goods continue to flow smoothly across the UK and EU border after Brexit, with measures in place and information given to traders, businesses and hauliers on what they need to do to prepare before 31 October.

These include:

o the automatic allocation of Economic Operator Registration Indicator (EORI) numbers to 88,000 VAT registered companies across the UK that frequently trade with the EU;

o postponed VAT accounting for both EU and non-EU imports, enabling VAT-registered businesses to wait until their next VAT return to declare and recover import VAT on goods- helping their cash flow and reducing costs at the point of import;

o a Temporary Tariff Regime (TTR) for all imports, including from the EU, supporting consumers, business supply chains and those sectors in the UK economy that would most benefit from support as we leave, for up to 12 months; and

HMRC sending 220,000 businesses guidance on the steps they need to take to import and export after we leave the EU on 31 October.

The Chancellor of the Duchy of Lancaster Rt Hon Michael Gove MP said:

“It is the top priority of this Government, and principal focus of my job, to get ready for Brexit on 31 October with or without a deal. We would prefer to leave with a deal, and continue to work in an energetic and determined way to achieve one, but we must be prepared for all eventualities.

This report sets out what will change if we leave without a deal and explains what the Government is doing to get ready. Significant preparations have been underway for the last three years and these have been accelerated under the Prime Minister’s leadership. At every point, the Government will be candid about any further challenges ahead as well as clear-eyed about the opportunities. Together, government, businesses and citizens are working so that we will be ready for Brexit on 31 October– and can look forward to the future with certainty and confidence.”

In a further move to get the country ready and to help ensure the UK’s health sector is prepared, the Government is today establishing a dedicated ‘Support Unit’ for suppliers of medical goods in the health sector. This will help to ensure that companies have the necessary customs paperwork in place for border arrangements ahead of Brexit on 31 October, if we leave without a deal. These teams of specialists will be able to provide traders operating in the health and social care sector with up-to-date advice and practical guidance on the steps they need to take to prepare.

The Brexit readiness report released today outlines preparations that have been made to support businesses and citizens if we leave without a deal, including:

o significant increases in the number of customs agents at the borders;

o a new import/ export helpline to answer businesses’ questions;

o the largest ever government public information campaign to get public and business owners ready for Brexit;

o organised business readiness events with more than 800 attendees to support businesses to get ready for Brexit, with 29 additional events in the pipeline. Secured additional funding to deliver webinars for EU companies to tell them what they need to do; and

o secured additional freight capacity and worked on preparations with our suppliers and partners, to ensure the stockpile of critical medicines and goods.

https://www.gov.uk/government/news/brexit-readiness-report-published

The full report (159 pages) is available:

No-Deal Readiness Report (pdf)

No-Deal Readiness Report (local copy pdf)

Article by Dominic Raab – 11 August 2019

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Writing in the Sunday Telegraph on 11 August 2019, the Foreign Secretary Dominic Raab outlines his vision for a truly global Britain.

As we strive for a better deal with the EU, we need to view that relationship in the context of our wider vision for the UK after Brexit. Fifteen years ago, when I was posted as a Foreign Office lawyer to The Hague, I remember my counterparts from Japan, Australia, South Korea and Brazil lamenting the introverted perspective of the EU and the UK at the expense of the rest of the world.

It was a salutary warning. Today, the UK wants a strong relationship with our European partners. But Brussels isn’t the only game in town. It’s time we broadened our horizons, and my first visits as Foreign Secretary to the US, Canada, Thailand and Mexico, have shone a light on the opportunities for a truly global Britain.

In the US, President Trump told me how much America values its close friendship with Britain, his high regard for our Prime Minister, and his enthusiasm for a free trade deal with the UK. How serious are they? After our meeting, secretary of state Mike Pompeo told reporters that the US was poised “at the doorstep, pen in hand”, ready to sign a deal, which would boost business and enhance consumer choice on both sides of the Atlantic.

I also met vice president Mike Pence and national security adviser John Bolton, reflecting the fact that our relationship goes far beyond trade. Crucially, we work together to defend our shared values and to respond to security threats, whether by protecting international shipping from the menace of Iran’s Revolutionary Guard or striving to secure North Korea’s denuclearisation.

Few countries have been a better friend than Canada, which I visited earlier in the week. I spoke to business representatives, who committed to investing more in the UK, and discussed with Canadian foreign minister Chrystia Freeland the need for a smooth transition on our trade as we leave the EU.

Our vision for global Britain also involves promoting values. Ms Freeland and I pledged to work together to protect media freedoms globally. I heard about Canada’s experience of adopting a Magnitsky Act to impose visa bans and asset freezes on those responsible for gross human rights abuses. Once we’ve left the EU and regained control of our own sanctions rules, this government will implement the “Magnitsky” provisions of the UK Sanctions Act. That means human rights abusers anywhere in the world will face consequences for their actions, with any assets they hold in the UK frozen and a ban on travelling here. We will ensure that global Britain is not a safe haven for those who profit from torturing others.

Beyond old friends, we must deepen our ties with the world’s growth markets from Asia to Latin America. So last week, I was delighted to take up an invitation from the Association of South-East Asian Nations to attend their meeting of foreign ministers in Bangkok. In fewer than 20 years, the total GDP of the 10 nations in this club has expanded almost sixfold to nearly $3 trillion today. Scarcely anywhere in the world could match this rate of growth. Now is the time to bolster our commitment to the Asia-Pacific region, develop stronger trade, and work together to ensure the stability that allows us all to prosper.

The final leg of my trip again reflects the opportunities of the future. Mexico has a population of 126 million and an economy of over $1.2 trillion. UK exports to Mexico totalled £2.3 billion in 2017, up 18% in 1 year. Red London buses, built by a Scottish manufacturer, now ride along Paseo de la Reforma in Mexico City.

But we can do better in Latin America. Here’s one example. Two thirds of Mexicans have no bank accounts but half of them have a smartphone. That’s a great opportunity for innovative British businesses. With a bright future outside the EU, we will help Mexican firms trade more freely with the UK.

Wherever I travel, I take the Prime Minister’s message of optimism. We will remain strong European partners. But there is a wider world out there for us to re-discover. By the end of my first fortnight as Foreign Secretary, I have met the foreign ministers of 22 countries across the world. I am struck by how much they want to strengthen their ties with us. They too see the great benefits offered by Brexit to deepen our partnerships around the world.

Together there is more that we can and will do to enhance global prosperity and stability and defend our shared values of freedom, democracy and tolerance. So, let’s raise our game, rediscover our national self-confidence, and grasp the tremendous opportunities that lie ahead.

EU completes preparations for possible “no-deal” scenario on 12 April

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Recent Press Release from the EU indicates that the EU has completed its preparations for a possible “no-deal” scenario on 12 April.

http://europa.eu/rapid/press-release_IP-19-1813_en.htm

(Here’s the text – check the above link for all detail including embedded links)

Brexit preparedness: EU completes preparations for possible “no-deal” scenario on 12 April

Brussels, 25 March 2019

As it is increasingly likely that the United Kingdom will leave the European Union without a deal on 12 April, the European Commission has today completed its “no-deal” preparations.

At the same time, it continues supporting administrations in their own preparations and urges all EU citizens and businesses to continue informing themselves about the consequences of a possible “no-deal” scenario and to complete their no-deal preparedness. This follows the European Council (Article 50) conclusions last week calling for work to be continued on preparedness and contingency. While a “no-deal” scenario is not desirable, the EU is prepared for it.

Following a request by Prime Minister Theresa May, the European Council (Article 50) agreed on Thursday 21 March to extend the UK’s departure date to 22 May 2019, provided the Withdrawal Agreement is approved by the House of Commons by 29 March 2019 at the latest. If the Withdrawal Agreement is not approved by the House of Commons by then, the European Council has agreed to an extension until 12 April 2019. In that scenario, the United Kingdom would be expected to indicate a way forward before this date.

While the European Union continues to hope that it will not be the case, this means that if the Withdrawal Agreement is not ratified by Friday 29 March, a “no-deal” scenario may occur on 12 April. The EU has prepared for this scenario and has remained united throughout its preparations. It is now important that everyone is ready for and aware of the practical consequences a “no-deal” scenario brings.

A “no-deal” scenario

In a “no-deal” scenario, the UK will become a third country without any transitionary arrangements. All EU primary and secondary law will cease to apply to the UK from that moment onwards. There will be no transition period, as provided for in the Withdrawal Agreement. This will obviously cause significant disruption for citizens and businesses.

In such a scenario, the UK’s relations with the EU would be governed by general international public law, including rules of the World Trade Organisation. The EU will be required to immediately apply its rules and tariffs at its borders with the UK. This includes checks and controls for customs, sanitary and phytosanitary standards and verification of compliance with EU norms. Despite the considerable preparations of the Member States’ customs authorities, these controls could cause significant delays at the border. UK entities would also cease to be eligible to receive EU grants and to participate in EU procurement procedures under current terms.

Similarly, UK citizens will no longer be citizens of the European Union. They will be subject to additional checks when crossing borders into the European Union. Again, Member States have made considerable preparations at ports and airports to ensure that these checks are done as efficiently as possible, but they may nevertheless cause delays.

The EU’s “no-deal” preparedness and contingency work

Since December 2017, the European Commission has been preparing for a “no-deal” scenario. It has published 90 preparedness notices, 3 Commission Communications, and has made 19 legislative proposals (see below).

The Commission has held extensive technical discussions with the EU27 Member States both on general issues of preparedness and contingency work and on specific sectorial, legal and administrative preparedness issues. The Commission has now also completed its tour of the capitals of the 27 EU Member States. The aim of these visits was to provide any necessary clarifications on the Commission’s preparedness and contingency action and to discuss national preparations and contingency plans. The visits showed a high degree of preparation by Member States for all scenarios.

Member States have also been engaged in intensive national preparations. An overview of residency rights in the EU27 Member States is available here, as well as direct links to national preparedness websites.

Tariffs on imports after EU Exit

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The Government is publishing information on essential policies which would need to be in place if the UK were to leave without a deal.

This approach was outlined by the Prime Minister in the House of Commons on 12 March 2019 to ensure MPs are fully informed before the vote on No Deal on 13 March 2019.

https://www.gov.uk/guidance/check-temporary-rates-of-customs-duty-on-imports-after-eu-exit

The information, aimed towards business, includes the government’s approach to customs duty, which is a tax you pay when importing goods.

The rate of customs duty you pay is known as the ‘tariff’.

If the UK leaves the EU with no deal, you may need to pay different rates of customs duty (tariffs) on imports. These rates would only be applied if the UK were to leave the EU with no deal.

The UK government would set temporary rates which would:

  • apply from 11pm on 29 March 2019
  • be in place for up to 12 months from 29 March 2019

Here is a list of the temporary rates of customs duty (tariffs) on imports after EU Exit.

MFN and tariff quota rates of customs duty on imports if the UK leaves the EU with no deal

Preferential tariff rates
A preferential tariff rate would apply if the country:

  • has a free trade agreement with the UK
  • is part of the Generalised Scheme of Preferences

    • If a preferential tariff rate applies, this is the rate of customs duty (tariff) you would pay.

    Most-favoured-nation (MFN) tariff rates

    If a preferential tariff rate does not apply, this is the rate of customs duty (tariff) you would pay.

    Tariff quota rates (TRQ)

    If a tariff quota rate applies, you could apply to import a limited amount at a reduced rate of customs duty (tariff). You would need to claim for the tariff rate quota using the TRQ order number.

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