EU EXIT
EU Exit Business Advice Since 11pm on 31 January 2020, the UK legally left the EU and entered an eleven-month transition period which is due to expire on the 31 December 2020. During this time, all trading terms and regulations have remained unchanged and negotiations between the UK Government and the EU have been underway. However, with resources being diverted to the Covid-19 response, progress with negotiations has been slow.
Supporting BVRLA members.
Since July, the UK Government has been redirecting resources back to EU Exit and ramping up its preparedness activities, launching a series of communication campaigns to encourage businesses and individuals to prepare now, as regardless of the outcome of the trade negotiations, things will change for everybody who trades with and travels to the EU after the end of the transition period.
A new EU Exit Bulletin has also been launched to keep members regularly updated by email on developments affecting the vehicle rental, leasing and fleet sectors. These are also promoted via the association’s social media channels. u
On 13 August, the BVRLA launched a dedicated EU Exit Business Advice web page to support members by sharing the latest advice and guidance to help prepare for the end of the transition period.
EU Exit policy asks With 72% of fleet cars and 68% of vans estimated to be sourced from the EU, the impact of not having a free trade deal would be disastrous for the UK fleet industry. The BVRLA has written to senior Government officials warning of the estimated costs that will burden the fleet industry if the UK and EU fail to reach a free trade agreement. The BVRLA estimates that tariffs would add… £2.1 billion a year to the UK fleet sector’s car renewal costs. £310 million a year to the sector’s van renewal costs. £2.8 billion on battery electric cars over the next five years. In a letter sent to senior ministers and policymakers, the BVRLA has asked the Government to: • C ontinue to work with the EU to reach a deal
Did you know?... Anybody working for a BVRLA member organisation can sign up to receive the EU Exit Bulletin. 14
• P rotect order banks by confirming that, in the event of no EU-UK free trade agreement, there will be a waiver on the tariffs on cars, vans, HGVs and parts ordered before the end of the year which arrive after 1 January 2021.
• I mplement a tariff review process now for certain key sectors to request tariff level reviews post 1 January 2021 once their full impact is apparent. • C reate a process now for firms to apply for temporary tariff waivers on specific products when there is not sufficient UK supply. • Support the BEV market by providing additional tax incentives and grants that will maintain the supply and cost competitiveness of BEVs in the UK. u
Autumn 2020 |
