Business Planning for Brexit guide

IoD Brexit Guide August 2019

Business Planning for Brexit

Contents | IoD Brexit Guide August 2019

Contents “ While it is clear that many IoD members feel they can only sufficiently plan once the terms of the UK’s departure and subsequent new relationship with the EU are clear, there are steps businesses can and should be taking now to help understand the scenarios they should be planning for and how to prepare accordingly.”

Allie Renison Head of EU and Trade Policy

Introduction 3 Key Milestones Timeline (Recent and Future) 5 Goods 6 Services 19 Trade with the Rest of the World

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Northern Ireland

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Funding 29 People 30 Brexit Checklist

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IoD Resources

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Glossary 35 Index of Useful Links

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Introduction | IoD Brexit Guide August 2019

Introduction The Government’s intention is for the UK to formally leave the EU on 31st October 2019, with or without a bilateral agreement to provide for an orderly exit. This guide (which looks primarily at planning for a no-deal Brexit) is now in its third edition, and has been updated to take account of developments since mid-March. Regardless of where parliamentary procedural wrangling gets to in the autumn, it is clear from political events that a potential no-deal exit has significantly increased in likelihood.

In light of Parliament’s continued unwillingness to ratify the Withdrawal Agreement (WA) negotiated between the EU and Theresa May’s government, businesses should be mapping out their potential exposure points and drawing up appropriate contingency plans if needed. Without a WA, which the vast majority of IoD members say is important to secure before the UK leaves the EU, there is unlikely to be any transition or adjustment period where the status quo continues (such a period is legally provided for in the current agreement).

Being able to fully prepare is of course supremely difficult to do in advance of some sweeping changes, and subject to having sufficient information from Government and the EU on the range of cross-cutting as well as sectoral issues in question. Much of this information has been collated, summarised and linked to in this guide, although there are still details yet to be filled in such as the exact processes for businesses and end users to engage with that will underpin the Government’s unilateral approach to avoiding any controls or checks at the Irish border. While departments across Whitehall are stepping up no-deal preparedness communications in August, a further wave of information is likely to ensue in September and October, and this document will be updated accordingly. However, to simplify and minimise any complexity, the IoD’s Navigating Brexit hub online will contain a weekly rolling tracker for all new UK Government notice updates in reverse chronological order.

We also strongly encourage directors and businesses to register for weekly bulletins and readiness events being run by the Department of Business, Energy & Industrial Strategy (BEIS) by contacting sed@beis.gov.uk.

The UK Government and the European Commission have helpfully issued guidance across a number of sectors for what would be required to carry on trading with or in the EU as a standard third country (i.e. without a new formal/preferential relationship in place), which is referred to throughout this guide. The Government and the Commission are releasing guidance on no-deal planning on a regular basis and it is therefore worth keeping abreast of any new documentation which is published. Directors are also advised to visit the cross-government Brexit planning portal at https://www.gov.uk/prepare-eu-exit. This portal allows business and other stakeholders to filter advice specific to their sector by category and keyword search. The full range of no-deal notices by sector/policy area from the EU can also be found on the European Commission’s “preparedness” website 1. Finally, the Government has also recently begun publishing individual sectoral 'primers' for no-deal planning - a link to these collated pages can be found here2. https:// assets.publishing.service.gov.uk/government/uploads/ system/uploads/attachment_data/file/826070/7239_EU_ Exit_Simplified_Trader_Checklist_one_pager_v12_Access_ KJ_ _2_.pdf We also strongly encourage members who export to the EU and/or EEA (those countries in the Single Market but outside the EU – Norway, Iceland etc) to check relevant national authorities’ pages to understand how your goods, services, and indeed even travel may be treated in a no-deal situation. Practical implementation can at times differ between countries, particularly on third country service supply and movement of people, where the rules are not harmonised across the EU for how a third country is treated. Even when it comes to trade in goods, where regulations are pan-European, how customs officials in the EU treat your products at the border may differ given the variation in exposure and readiness in respect of a no-deal Brexit across EU countries;

1 https://ec.europa.eu/info/brexit/brexit-preparedness_en 2 https://www.gov.uk/find-eu-exit-guidance-business?parent=&keywords=%22and+preparing+for+EU+Exit%22&order=topic

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Introduction | IoD Brexit Guide August 2019

some may be more efficient or facilitative than others. A list is provided at the end of this guide to all of the existing Brexit websites and portals that are run by national governments in the EU. While it is clear that many IoD members feel they can only sufficiently plan once the terms of the UK’s departure and subsequent new relationship with the EU are clear, there are steps businesses can and should be taking now to help understand the scenarios they should be planning for and how to prepare accordingly. There are of course many known unknowns, as well as unknown unknowns, given the unprecedented ‘nature of Brexit’. But this guide aims to provide a minimum list of the areas companies should be checking over in mapping out their potential exposure, and a set of steps they should consider taking to maximise their preparedness. We also hope you will check out our online Navigating Brexit hub and register your interest in receiving targeted Brexit updates by dropping us a line at brexitpolicy@iod.com. The hub contains information about our Brexit webinars, events, sectoral summaries, media statements and ways of engaging with our small but dedicated team as well as to help you find the right people in government if we can’t answer your questions directly.

A clear majority of IoD members say that a no-deal Brexit will have a negative effect on their organisation, and we will continue to convey this message to Government.

Nonetheless, as we have stated, it remains a distinct possibility, which making it crucial to take as many steps as possible to outline how company directors can try to mitigate the impact. We believe this work will benefit all our members, including even the significant minority who feel they will not be affected. The more that can be done to mitigate the operational consequences of a potentially disorderly Brexit, the more funding and bandwidth will be available in the economy and in Government to address the many other fundamental domestic needs that our membership report.

The IoD publicly communicates the strength of feeling among most members regarding the risks of no-deal to business, but also must take as many steps as possible to mitigate the impact. Naturally no two businesses will be affected in the exact same way, and there is a notable minority who feel they won’t be impacted whatsoever.

But our case for speaking out against such an outcome, even while lobbying for a number of facilitations to help manage the consequences, is as much borne out of concern for the unaffected as it is for those who are. The last thing business needs is a government distracted by dealing with the operational consequences of a disorderly exit for months if not years, while engaging in new unpredictable negotiations with its largest and closest trading partner.

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We do not want to see this continue to crowd out the focus on fundamental domestic economic needs, as has seemingly been the case for some time now.

But the only thing worse than such a scenario is hurtling into it without doing our utmost to prepare where possible, so our twin track focus where Brexit and no-deal is concerned will continue well into this second half of 2019.

“ The last thing business needs is a government distracted by dealing with the operational consequences of a disorderly exit for months if not years, while engaging in new unpredictable negotiations with its largest and closest trading partner.

No-deal will mean little bandwidth or capacity for focusing on many of business' more pressing needs.”

Allie Renison Head of EU and Trade Policy

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Key Milestones Timeline (Recent and Future) | IoD Brexit Guide August 2019

Key Milestones Timeline (Recent and Future) December 2017 UK Government and EU issue a Joint Report agreeing a “backstop” to form part of the divorce agreement.

It outlines that while they intend to address the Irish border in the future trade relationship, if this does not prove possible, the UK will propose specific technical means to address the border.

As an insurance policy option, in the absence of any agreed solutions either way, the UK will maintain alignment with EU Customs Union and Single Market rules that would prevent border controls or checks at the land border.

This is the “backstop”.

June-July 2018 EU summit (28th-29th June) where the “backstop” to ensure the avoidance of a hard border between the Irish Republic and Northern Ireland was discussed by the UK and EU. UK Government also published a detailed paper outlining its proposals for the future economic partnership (FEP) following the summit in July.

The “Chequers” document1 proposes remaining broadly aligned with EU rules for goods but allowing more scope for divergence in rules governing services.

November 2018 UK and EU conclude bilateral negotiations on a withdrawal agreement (WA) and subsequent political declaration (PD) on the future relationship framework 2. Opposition MPs express dismay at lack of clarity/ detail on the future deal in the PD, while the DUP and a number of Conservative backbench MPs criticise the ‘backstop’ (Irish protocol) in the WA. Link to an IoD briefing on the package deal can be found here3.

December 2018 The Prime Minister fails to secure further assurances on the Irish backstop at EU summit. She pulls the Commons vote on the deal at the last minute, before subsequently winning a no-confidence vote triggered by her own MPs. She confirms she will seek further reassurances from the EU on the duration of the backstop.

January 2019 The Commons votes (15th) against the Government's Withdrawal Agreement by 432 to 202 and the next day (16th) the Prime Minister survives a noconfidence vote tabled by Labour.

MPs consider amendments to a motion which gives steer on their preferred next steps. They vote (29th) in favour of the UK not leaving the EU without a deal and in favour of the Government seeking "alternative arrangements" to Irish backstop.

March 2019 At the second meaningful vote (12th) the Commons rejects the WA again, this time by 391 to 242. The following day (13th) MPs vote in favour of rejecting no-deal by 321 to 278, and also by 312-308 in favour of the so-called Spelman Amendment which categorically rejects no-deal under any circumstances. The Commons votes (14th) in favour of a motion as tabled by the Government, which states that if the WA has not been ratified by 20 March, the Government would seek an extension of Article 50 to 30 June.

March 25-27 2019 MPs vote (25th) in favour of the so-called Letwin Amendment which instructs the Commons to hold a series of indicative votes on the future relationship which the Government should pursue. Options include a no-deal, “Common Market 2.0” and EFTA membership. All eight options are rejected.

February 2019 The Prime Minister promises that if she has not brought a deal back to the Commons by the 26th, she will table another motion on next steps by the 27th. PM then announces final vote to approve withdrawal agreement will happen by March 12 to allow further time for negotiations with the EU on the 'backstop'. She also commits to a vote on no-deal if her deal fails a second time, as well as a subsequent vote on extending Article 50 if Parliament votes against going for no-deal.

March 29 2019 MPs vote for a third time on the WA, although this time without the accompanying Political Declaration as the Speaker asserts "the same proposition or substantially the same proposition" could not be brought back in the same parliamentary session.

It is rejected by MPs by 344-286.

April 1 2019 The Commons holds a second round of indicative votes but none of the motions – which include a customs union and the revocation of Article 50 to avoid a no-deal – are passed.

1 https://www.gov.uk/government/publications/the-future-relationship-between-the-united-kingdom-and-the-european-union 2 https://ec.europa.eu/commission/sites/beta-political/files/draft_withdrawal_agreement_0.pdf 3 https://www.iod.com/news/navigating-brexit-for-business/articles/the-brexit-withdrawal-agreement-what-does-it-mean-and-what-next

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Key Milestones Timeline (Recent and Future) | IoD Brexit Guide August 2019

April 3 2019 Votes by MPs on whether to hold further indicative votes results in the first tie (310-310) in the Chamber since 1993. The Speaker breaks the tie by voting “No”.

April 10 2019 After Theresa May writes to EU Council President Tusk to ask for an extension to June 30, EU leaders convene for a special summit on April 10. They agree to delay Brexit until October 31 at the latest so long as the UK participates in European Parliament elections in May. They also agree that if the UK fails to hold the elections it will leave the EU on June 1.

May-June 2019 Theresa May announces (24th May) that she will resign as Prime Minister on 7 June. European parliamentary elections take place (23rd-26th May) with the UK taking part and a new European Commission (which is officially responsible for negotiating the FEP) is appointed, with former German defence minister Ursula von der Leyen at the helm. Tory leadership contest kicks off.

July 24 2019 Former Foreign Secretary Boris Johnson is sworn in as Prime Minister, having won the Conservative Party leadership ballot the day before by 66.4% of the vote. His first speech as Prime Minister sees him declare that the UK will leave the EU “do or die” come October 31, adding “the ports will be ready and the banks will be ready and the factories will be ready and business will be ready” for EU exit.

August 24-26 2019 The G7 summit in Biarritz and the first time Boris Johnson met EU leaders as Prime Minister.

August 28 2019 The Prime Minister confirms the Queen has agreed to prorogue Parliament in the second sitting week in September and the Queen’s Speech will take place on October 14. He says the move is due to the long duration of the current session and the need to begin a new legislative agenda. Critics – including MPs from all sides – condemn the action, arguing the Government is attempting to minimise any chances for Parliament to table anti-no deal legislation.

September 3 2019 MPs return to the Commons after summer recess.

September 29 – October 2 2019 Conservative Party conference begins.

October 14 2019 The State Opening of Parliament and the Queen’s Speech takes place. The latter outlines the Government’s legislative agenda.

October 17 - 18 2019 European Council summit takes place in Brussels – the last such meeting before the Brexit deadline. At this summit it should be clear whether or not the UK is leaving with or without a deal.

October 21 - 22 2019

October 31 2019 UK formally leaves the EU under current legislative provisions. If the Withdrawal Agreement is passed by this date, the “implementation period” begins immediately, providing for transition continuity. Current Government position is that it would be preferable to exit the EU with a deal agreed, but it is prepared to leave on this date “do or die” – with or without a deal.

July 1 2020 The Withdrawal Agreement states that, should the Joint Committee representing the UK and EU agree to extend transition beyond December 31, 2020, they can only do so once and that decision must be taken before this date. The extension can only be one or two years maximum.

December 31 2020 Currently-envisaged transition period as provided for under the WA formally ends and the new FEP takes effect.

Current UK Prime Minister has suggested this may not be when new customs arrangements come into force depending on how quickly the FEP is agreed and infrastructure that may be needed to implement these can be ready. The Withdrawal Agreement sets out – in the event of no FEP – exact cut-off dates for access to certain EU customs and VAT databases / procedures that in some cases would extend beyond the conclusion of this provision transition period1. If the future relationship agreement is not agreed and ready to be implemented at this point, either the backstop will come into effect or the UK can request to extend transition instead.

The Prime Minister has promised Parliament a vote on the Queen’s Speech and the outcome of the European Council summit.

1 https://ec.europa.eu/commission/sites/beta-political/files/joint_statement.pdf

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Goods | IoD Brexit Guide August 2019

Goods In some respect, firms have more clarity around the changes to trade in goods, chiefly because there is more clarity and uniformity laid down on what trading goods with the EU as a third country looks like compared to services.

The Single Market in goods is relatively complete and a known quantity, whereas for services it is more fragmented.

Even now operating in one part of the Single Market compared to another can be unpredictable and variable, particularly in terms of how UK service suppliers are treated regarding domestic regulatory compliance. Conversely, procedures laid down for trade in goods are uniform across the Single Market and the EU’s Customs Union. Effectively, areas and sectors where there is more harmonised EU law will see the biggest changes under no-deal.

HMRC has published guidance on likely cross-border procedures that would be applicable to UK-EU trade in the event of a no-deal scenario, including this technical notice1.

The Government has written several times to the 145,000 VAT-registered businesses that trade solely with the EU to outline the changes to customs, excise and VAT arrangements that would take place in the event of a no-deal outcome. These letters and future ones can be found here2. Currently the Government's wider contingency measures/guidance for trade in goods in a no-deal situation with the EU do not apply to trade across the land border on the island of Ireland. A separation section looks at this further below.

Customs duties The UK has signalled its intention to leave the EU’s Customs Union, and to also seek a tariff-free quota-free trade agreement with the EU. In the agreed Political Declaration accompanying the WA – the text which sets out the framework for negotiations on the long-term trade relationship – a spectrum of outcomes is provided for in terms of alignment/divergence with EU rules and thus differing levels of EU market access. Helpfully, negotiators have confirmed that the UK will remain part of the Common Transit Convention regardless of whether there is a deal or no deal, which would reduce some of the financial and administrative burdens for goods in transit3. This allows goods to be moved between the UK, EU and other CTC signatories like Norway, Turkey Switzerland, without customs duty needing to be declared at every border along the route - rather this and full customs declarations only need to be done when goods reach their final destination.

Use of the CTC is often more relevant to logistics operators, unless as a trader you are going to be handling/managing the transport of your goods yourself.

What is definitively agreed to in the PD at a bare minimum is a commitment to no tariffs or quotas between the UK and EU. This would mean that goods traded between the UK and EU would not be subject to any new customs duties or tariff-rate quotas (which permit a maximum level of goods to be traded tariff-free before normal EU Most-Favoured Nation tariff rates 4 kick in) – including on agricultural products.

However, it is important for firms to understand for no-deal planning what potential tariff and related quotas they could face in exporting their products to the EU. As with most other countries, the EU has Most-Favoured Nation (MFN) tariff rates by product line set through the World Trade Organisation (WTO). These fall in two categories – bound and applied rates. The former sets a ceiling for what the EU can charge on imported goods, but the applied rate is the duty that is actually charged on an import on a day to day basis. The UK has decided to replicate the EU’s tariff ceilings (i.e. maximum possible levels) and has published its own provisional list of tariffs that would apply to the UK in the event leaving the EU without a deal.

1 https://www.gov.uk/government/publications/trading-with-the-eu-if-theres-no-brexit-deal/trading-with-the-eu-if-theres-no-brexit-deal 2 https://www.gov.uk/government/publications/no-deal-brexit-advice-for-businesses-only-trading-with-the-eu 3 https://www.gov.uk/government/news/uk-to-remain-in-common-transit-convention-after-brexit 4 http://ukandeu.ac.uk/wp-content/uploads/2017/09/No-Deal-The-WTO-Option-Fact-sheet-1.pdf

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Goods | IoD Brexit Guide August 2019

No deal tariffs In March, shortly before the UK was originally due to leave the EU, the Government published its temporary regime for how all import tariffs would change on goods coming in from around the world, including the EU. Under WTO rules, these cannot legally discriminate between EU imports and non-EU imports without having a preferential trade agreement or customs union in place to allow this. It is for this reason legally, as per international trade rules, that “no deal” means there cannot be any continued special preference for EU goods to continue entering the UK to help with trade and cash flow.

There has been talk amongst some politicians that the UK could rely on a specific part of the General Agreement on Tariffs and Trade (Article 24) to keep trade as it is for a standstill period with the EU even with a withdrawal agreement. This is very legally and politically dubious as an alternative to the current Brexit deal, and there is no current legal basis for a standstill transition other than through the Withdrawal Agreement. In any event, this absolutely should not be relied upon by businesses and organisations for planning purposes to act as an adjustment period buffer to no-deal; the UK’s access to EU IT systems which facilitate trade with Europe is due to end on or the day after October 31st 2019.

The Government’s approach to no-deal tariffs is intended to be strictly temporary, unless a change is applied henceforth, with provision being made for up to 12 months. A summary guide with a link to the new tariff rates can be found on the Government’s pages here 1.

The UK plans to rollover the EU’s current tariff approach to less developed countries, under its Generalised System of Preferences (GSP). Traders importing goods from the Republic of Ireland to Northern Ireland under no-deal would not face any tariffs, although this could have implications for NI producers (as well as some in Great Britain indirectly through transport routes) in terms of competitiveness.

The Northern Ireland trade in goods section expands on the Government’s proposals.

It is important to check whether you have any products being imported into the UK from outside the EU which is currently subject to EU trade remedy measures such as safeguards and added defensive customs duties. Under a no-deal situation, the Government has only committed to rolling over 43 of these trade defence measures on certain products2.

This means that while UK importers of these products would continue to pay special (EU) increased tariff rates, all other products currently subject to EU trade remedy measures would no longer face any such special measures.

This is important also for domestic producers of these products to note, that their import competitors in a number of areas would no longer be afforded such tariff or quota protection. The Government is however taking another call for evidence on further EU trade remedy rollover measures, as well as providing the findings of the earlier consultation on which to keep in place and which to dispense with.

This can be found here3.

Tariff code classification (currently organised by the EU but information retained on HMRC pages) will remain much the same as now to help with continuity. The Government also plans to consult on a longer-term import tariff regime, so please get in touch with the IoD to express your views on what you think this should be if you either import goods into the UK or have a producers view on how changing the current tariff could potentially affect your goods’ price/cost competitiveness.

The Government states that 87% of total imports into the UK by value would be eligible for tariff-free treatment, while 13% of all imports would still face customs duties. The latter extends to key parts of agriculture - beef, lamb pork, poultry and some dairy. For cheddar for example, while exporters to the EU would now face the EU tariff of €1671 per tonne, under the Government’s temporary no-deal tariff regime, cheddar imports into the UK (without a preferential trade arrangement - this includes the EU) would face a tariff rate of €221 per tonne4.

Tariff rates of 10%-16% on finished vehicles would be retained on all imports (including the EU), though these would not apply to car part/component imports. Duties up to 12% on both ceramics/fertiliser/fuel would remain as well as on certain textiles/homeware/clothing items. Even if you do not import directly, it is worth checking the origin and component parts of your goods as their price may be affected once passed on by a business which does import and/or process an imported good then sold to you. More widely, companies (smaller traders especially) should check or explore creating Incoterms for any contract with a supplier or customer in the EU or rest of the world if your business does import, to make sure all parties are crystal clear on whose responsibility paying for customs duty and/or transport cost - including if those prices are subject to change as a result of changes to import tariffs (or delay) as a result of a no-deal Brexit.

1 https://www.gov.uk/guidance/check-temporary-rates-of-customs-duty-on-imports-after-eu-exit) 2 https://www.gov.uk/government/news/trade-remedies-measures-to-protect-uk-businesses-and-cut-prices 3 https://www.gov.uk/government/consultations/call-for-evidence-to-identify-uk-interest-in-existing-eu-trade-remedy-measures/provisional-findings-of-the-call-for-evidence-into-UK-interest-inexisting-EU-trade-remedy-measures 4 https://dairy.ahdb.org.uk/news/news-articles/march-2019/cheddar-filling-the-brexit-void/#.XUl70o5KjIU

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Goods | IoD Brexit Guide August 2019

Rules of origin The UK Trade Policy Observatory has authored a useful summary of some of the comparative changes between current import arrangements and changes under the temporary no-deal tariff regime. This can be found here1.

It is important generally to understand what commodity classification code the products that you sell fall into for trading purposes. Firms trading only with the EU will have never needed to have this information before. This is based on the international Harmonised System. HMRC has a how-to website here2 that helps businesses begin this process. However, for the purposes of legal certainty, classification can be procured through a Binding Tariff Information (BTI) ruling. The European Commission provides information on this here3, although they are issued by national customs authorities (HMRC). While there is some degree of uncertainty over whether currently-issued BTIs would be valid after Brexit, if you want maximum legal protection, it is generally advised that you should secure one in advance of the UK leaving the EU. Once you have your relevant commodity code, consult the EU’s TARIC database here4 to determine what level of customs duty your product would face going into the EU under a no-deal scenario. This also asks for the origin of the good – as the UK has not left the EU, the level of duty would be negligible.

Some countries have preferential trade arrangements with the EU that allow goods being exported to the EU to face reduced or zero-rated tariffs that diverge from the normal standard MFN rate. Assuming the UK would have no such tariff preferences under a no-deal scenario, you should select a country such as the US or China, where no preferential tariff arrangements exist, to establish a comparable level of duty your product would face.

However, you should also be aware that some goods originating from these countries may face special safeguard or anti-dumping duties, so it is also worth consulting the information about the EU’s MFN tariff rates and related quotas on the WTO’s website here 5. This uses the general HS codes as the basis for assessment.

N.B. Preferential rules of origin are only applicable if there is a free trade agreement; not applicable under no-deal.

However, given the likelihood of negotiations beginning at some point after no-deal on a free trade agreement with the EU (as opposed to a customs union), traders should familiarise themselves in advance with origin/calculation issues to qualify for tariff preferences as this will stand you in good stead in advance should any changes to supply changes be required as a result.

The Government has signalled its intention for the UK to leave the EU’s Customs Union and not pursue a new customs union arrangement as part of the FEP. One of the biggest differentiators between a customs union and a pure free trade agreement is the application of preferential rules of origin on trade in goods between the contracting parties.

In order to avoid transshipment of goods, and to ensure that only goods originating in the contracting parties benefit from any preferential tariff rates, rules are set out under a free trade agreement establishing criteria for what constitutes as "originating". HMRC provides a detailed explainer6 on current third country (i.e. non-EU) imports for firms wishing to take advantage of existing EU tariff preferences extended to third countries.

For goods being exported to the EU which are not “wholly obtained” in the UK, and which have undergone processing in another third country as part of their production, understanding the supply chain of components going into the product is essential. Above a certain threshold, goods with components coming from non-UK countries will mean that product is not able to benefit from continued zero-tariff trade with the EU unless cumulation arrangements are put in place between the EU and UK. While preferential rules of origin can be an issue for agricultural products (e.g. spices, animal feed), they have particular widespread relevance for manufacturing and industrial goods – from the automotive industry to textiles and chemicals.

The customs/transit procedures section further below sets out some of the facilitating measures HMRC intends to introduce under no-deal, such as providing for an extended duty deferment scheme.

1 https://blogs.sussex.ac.uk/uktpo/publications/deal-or-no-deal-the-economic-consequences-of-the-uks-no-deal-tariffs/ 2 https://www.gov.uk/guidance/using-the-trade-tariff-tool-to-find-a-commodity-code 3 https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/what-is-common-customs-tariff/binding-tariff-information-bti-apply_en 4 http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en 5 https://www.wto.org/english/thewto_e/countries_e/european_communities_e.htm 6 https://www.hlb.global/dutch-vat-preparations-in-case-of-a-hard-brexit/

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Goods | IoD Brexit Guide August 2019

The cost and complexity involved in applying preferential rules of origin to UK-EU goods trade (where there are currently none) is why the IoD has proposed1 a limited customs union for industrial goods as part of a wider preferential trade framework, as the burden can outweigh the benefit of duty-free sales to the EU. We are concerned that the time and cost burden involved – if compliance requires firms to not only trace but make significant changes to their inbound supply chains – will mean many businesses feel there is no alternative but to simply pay the EU’s normal import tariff instead.

Chambers of commerce provide the documentation required to prove that the correct origin has been assessed.

These certificates of origin accompany the goods being exported. Intermediaries such as freight forwarders and customs agents can help with processing and checklists for this kind of paperwork. However, it is critical for companies actually selling or manufacturing goods for export to the EU to understand that all responsibility for ensuring the paperwork is correct and that the origin has been correctly assessed based on information provided by them lies solely with themselves. Should HMRC or other customs authorities query the paperwork either at the time of importation or thereafter (they can do so for up to three years after the certificate issuance) and find it to be incorrect, the importer would be liable for backpay of the correct and full MFN import duty rate.

Whether you import from or export to the EU, it is important to have a discussion with your customer or supplier to determine whether the relevant preferential rule of origin for your product (on the basis that there would be a free trade agreement and using existing EU agreements as a guide) is worth the added paperwork. It may be that – particularly from an exporter’s point of view – it is easier and more predictable for all to have the importer pay the import duty rate, depending on the level of the normal MFN tariff for the product(s) in question. However, making such a judgment may need to wait until there is more clarity about the future economic partnership between the UK and EU.

“ It wasn't until I started looking at rules of origin that I suddenly realised a 'free trade agreement' doesn't always end up being so free.”

IoD Member Manufacturing, Northern Ireland

Under its trade agreements, the EU sets preferential rules of origin for goods being imported into the EU that are product-specific (rather than by general regimes or sectors as some other countries). While we cannot say for certain that the same criteria and thresholds for local originating content and/or cumulation rules under its existing agreements would apply with the UK, it is worth examining the EU’s existing preferential trade arrangements with third countries for examples. A good starting point is the European Commission’s Trade Helpdesk 2 on rules of origin.

There are also standard non-preferential rules of origin that apply to goods being imported into the EU under normal MFN tariff rates or for products that are under specific measures where anti-dumping or countervailing duties have been applied. More information on this can be found here3.

1 https://www.iod.com/Portals/0/PDFs/Campaigns%20and%20Reports/Europe%20and%20trade/IoD-Customising-Brexit.pdf 2 https://trade.ec.europa.eu/tradehelp/ 3 https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/rules-origin/nonpreferential-origin/introduction_en

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Goods | IoD Brexit Guide August 2019

VAT (please check the services sections for VAT changes separately) Currently, goods being traded between the UK and EU are not subject to import VAT as the UK is part of the EU’s VAT area. For VAT purposes, ‘exports’ to the EU are treated as 'despatches' and ‘imports’ from EU countries as 'acquisitions'.

VAT-registered businesses can account for VAT on goods being bought from another EU country on their next VAT return.

However, as a third country outside the EU's VAT area (not even those in the Single Market like Norway are inside the EU VAT area), bringing goods into the UK from the EU means this becomes import VAT, which must be paid before the good crosses the border. This would generally be set at 20%, and goods being exported to the EU would also face VAT from destination EU countries, which differ in accordance with national VAT rate regimes. Distance-selling thresholds, which allow private online and mail-order retailers to sell goods to EU consumers using their UK VAT numbers up to a certain distance threshold, would no longer be applicable.

Those companies would therefore need to register for VAT in each EU country where the goods are supplied to – or stop trading with customers there. This is particularly important for e-commerce traders to be aware of and ensure they have taken action on ahead of October 31st.

For B2B trade in goods between the UK and EU under no-deal, traders would no longer be able to make use of the “reverse charge” mechanism/procedure – whereby VAT is dealt with on the buyer’s VAT return. It would also mean businesses trading with the EU lose access to the existing VAT-related simplifications such as triangulation and “supply and install”. It is possible to still zero rate B2B goods supplies in the UK but when goods are imported into the EU, UK exporters should consider comparative implications - for this reason among others, it is STRONGLY advised that you and your EU customer/supplier and check and revise contractual Incoterms accordingly (if you don't already have them in place, you may want to explore doing so).

While pan-EU guidance to VAT on no-deal from the European Commission is helpful, businesses sending goods to any EU countries are strongly advised to check individual national government pages on these areas, as well as the rules for customs and VAT on imports from third countries - which the UK will become. Several EU countries apply their own simplifications for import VAT either for postponement or deferral.

Some member states’ tax/revenue ministries have more detailed information on how UK goods will be treated at their borders in terms of changes. Others like the Dutch government have their own special arrangements for mitigating cash flow around VAT such as their own version of postponed accounting called the “Article 23 permit”.

While of not direct mitigating benefit to UK exporters, those selling goods on a routine basis to Dutch firms should reference this took in discussions with their customers and/or logistics providers to help facilitate a smoother (albeit new) process overall for shipment delivery1.

The Government has sought to mitigate adverse cash-flow implications by introducing postponed accounting for import VAT on goods brought into the UK from both EU and non-EU countries. However, there is no guarantee that other EU customs authorities would reciprocate for import of UK goods. Businesses are therefore advised to speak to EU authorities and may need to appoint a fiscal representative in the EU countries that they are trading with. This is because as a third country outside the EU VAT Area, the UK is no longer automatically following European VAT legislation and so different European country's VAT rules apply. Approximately 19 out of 27 remaining EU countries have requirements for third country businesses to appoint a fiscal representative where those businesses have in-country VAT registrations. Some European governments have begun to contact UK firms with European VAT registrations to warn them they will need to have this local fiscal representation2.

The Goverment is also planning to eliminate Low Value Consignment Relief on all third country imports for goods in value of £15 or less which would apply to the EU as well (similar to the closure of this option to products coming from the Channel Islands). This means all goods coming inbound to the UK as parcels would be liable for VAT. Overseas senders can pre-pay the VAT for low value items, though if this is pre-paid then the recipient will have to pay import VAT upon receipt - another reason for you to check Incoterms with your customer or supplier in the EU. For those up to the value of £135, HMRC is now introducing an online registration service for businesses based overseas or with another branch overseas to be compliant in paying

1 https://www.hlb.global/dutch-vat-preparations-in-case-of-a-hard-brexit/ 2 https://www.avalara.com/vatlive/en/vat-news/belgium-warns-uk-businesses-to-appoint-brexit-fiscal-representative.html

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import VAT. The registration link can be found at here 1.

Businesses in receipt of such parcels from overseas suppliers should discuss to determine whether this means a change in Incoterms is needed. For more information on this, see HMRC's page here2. For those companies which bring goods in to the UK for re-export to the EU (“temporary storage”) however, there are also existing special procedures which could be applied that will suspend VAT and customs duty payment such as inward processing and customs warehousing. These combined measures can help with cash flow management. UK businesses with EU VAT registrations should also explore setting up a warehouse in the EU if they want to continue distance selling under the current VAT regime. If you are a UK business currently registered for VAT in another EU country and have your UK EORI number linked to your EU VAT number, this will not be valid in a no-deal scenario and you need to ensure your business has an EU EORI number as well.

Product Regulation/Compliance Assuming that the UK is outside the Single Market (technically known as the EU’s Internal Market) unlike countries such as Norway – and in the absence of knowing what bespoke arrangements on regulatory alignment it may strike with the EU – regulatory compliance will become a significant new variable in UK-EU goods trade. Unlike with tariffs, there are no internationally-set baselines for how rules on product regulation should be followed.

The EU sets its own guidelines for how imports from third countries outside the Single Market should be treated at the border. These fall broadly into two categories – technical regulations and sanitary & phytosanitary (SPS) related rules.

The first are more relevant to manufactured goods such as pharmaceuticals, automotives and chemicals.

Below are two industry examples.

For the future relationship negotiations, the Government has not yet confirmed whether it is proceeding on the basis of the UK being a third country for VAT purposes or whether it wishes to ask for a special arrangement that would allow it to remain part of the EU’s VAT area (but remove the scope for new flexibility on setting VAT rates). Survey research indicates that more IoD members would prefer the first of these two options. However, under the terms of the withdrawal agreement, deploying the Irish backstop would see Northern Ireland remaining aligned to the EU's VAT area. The Government published a paper in January 2019 to underline its commitment to keeping Great Britain aligned to any EU regulations for commerce Northern Ireland would need to follow if the backstop ever comes into force, to avoid the scope for new intra-UK bilateral regulatory barriers3.

Currently, exports to the EU from third countries benefit from optional low value consignment relief on VAT for parcels ranging in value between €15 and €22, with flexibility for Member States to set the exact figure (the UK’s is £15). While UK outbound parcels to the EU (small low-value parcels) could theoretically avail themselves of this relief if and when the UK becomes a third country for VAT purposes after Brexit, the European Commission in 2015 proposed ending this exemption – although it will likely take several years for this to be agreed and implemented.

1 https://www.gov.uk/guidance/register-for-import-vat-on-parcels-you-sell-to-uk-buyers 2 https://www.gov.uk/government/publications/partnership-pack-preparing-for-a-no-deal-eu-exit/traders-with-the-eu-and-the-rest-of-the-world-what-to-expect-on-day-one-of-a-no-deal-scenario 3 https://www.ema.europa.eu/documents/regulatory-procedural-guideline/practical-guidance-procedures-related-brexit-medicinal-products-human-veterinary-use-within_en.pdf

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Conformity Assessment A manufacturer can only place a good on the EU market if it demonstrates it has met all the relevant requirements related to performance, safety and environmental parameters. A declaration of conformity is a document declaring that the product meets the specific EU requirements and does have to be made available by manufacturers or importers for many goods even within the EU (it has to be available on request rather than included with the goods themselves). A certificate of conformity is for products that require assessment by a Notified Body, and where EU law says a notified body needs to assess a product that is equally true for manufacturers within the EU. Currently, while manufacturers can choose between the relevant conformity assessment procedures for certain products, under a no-deal Brexit this will change markedly for those products being sold into the EU which require the intervention of a qualified third called “notified bodies”. This is addressed further below in the CE marking section. There is a ‘presumption of conformity’ while in the Single Market which means product documentation relating to conformity or related inspection controls at EU/EEA borders is not routinely needed at present when sending goods between the UK and Single Market members (EU + Norway etc). Under a no-deal Brexit, the range of methods accepted by the EU and recognised in the UK for demonstrating product conformity will change, particularly for those products currently regulated under the EU’s “New Approach”.

Marketing Authorisation For the life sciences sector(s), placing goods onto the EU market also critically depends on securing marketing authorisation from the appropriate agencies. Currently, pharmaceutical products and medical devices can receive these either through the UK’s MHRA agency or directly from the European Medicines Agency – which will be relocating from London to Amsterdam after Brexit. In the absence of a deal which sees complete continued regulatory harmonisation with EU rules and UK participation in the EMA, existing marketing authorisation holders (MAH) will need to transfer the authorisation to an MAH located in an EEA country (EU and Norway, Iceland and Liechtenstein). The Government has said that it is working on a portal functionality which would allow UK pharmaceutical businesses to submit regulatory information such as Marketing Authorisation and clinical trial applications – for more information see here3. Pharmaceutical companies can take advantage of a slew of information published by the EMA, although it is important to note that there is little mention of the possibility of a transitional period from the point of a no-deal Brexit which would at the very least delay the practical application of third-country status and rules to the UK until the end of 2020.

The EMA updates its own guidance pages on no-deal Brexit planning for authorisations, which can be found here4.

Certifications issued by UK bodies which currently assess products against UK regulations like Notified Bodies and the Vehicle Certification Agency would no longer be valid and recognised as equivalent by the EU and would require re-certification upon entering the EU for goods entering the EU market on or after Brexit. Full Government guidance on placing goods onto the UK Market under a no-deal scenario can be found here 1 while guidance to placing UK products onto the EU’s Single Market can be found here2.

1 https://www.gov.uk/guidance/placing-manufactured-goods-on-the-uk-market-if-theres-no-brexit-deal#new-approach-goods 2 https://www.gov.uk/guidance/placing-manufactured-goods-on-the-eu-internal-market-if-theres-no-deal 3 https://www.gov.uk/guidance/making-submissions-to-the-mhra-in-a-no-deal-scenario 4 https://www.ema.europa.eu/en/about-us/uks-withdrawal-eu/brexit-related-guidance-companies

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The chemical industry in the UK is currently governed by – among other pieces of legislation – the Registration, Evaluation, Authorisation & Restriction of Chemicals regulation (REACH), in addition to being overseen by ECHA – the EU’s chemicals regulator. While the UK’s Health & Safety Executive carries out some functions in relation to oversight of the rules governing the industry, ECHA is chiefly responsible for UK chemicals regulation.

The Government has committed to creating a regulatory framework which replicates REACH as well as signalled its desire to have associate membership of the ECHA. In the absence of REACH, a UK system would likely require companies trading with the EU to have a physical footprint in an EEA country to maintain their ability to sell within the EU market. ECHA keep an updated page on information relating to the UK’s withdrawal from the EU here 1 also issued guidance2 on a worst-case scenario planning basis. The Government has stated this in a no-deal scenario the Health and Safety Executive would act as the lead UK regulatory authority and domestic legislation would preserve REACH as far as possible.

The HSE has now stated that a new online service is being made available for-deal scenario to allow relevant businesses and stakeholders to register for a UK REACH equivalent online service. Information about this platform and application processes can be found here3. The HSE has also created a mini-toolkit for organisations to check what they need to do in this area depending on where they are in the supply/value chain.

Finally, companies in the agri-food sector(s) should familiarise themselves with what SPS controls are in place for trade between the EU and third countries. Full SPS controls for trade with the EU as a third country would not be similar to nearly-negligible amount which apply to trade with countries in the Single Market like Norway and Switzerland, given – albeit through different agreements – they follow EU rules relating to plant & animal health, food safety and veterinary standards.

While the UK is hoping to reach a similar outcome, if it insists on the right to diverge from EU rules in these areas (even without actively diverging to begin with), checks and controls will be needed at UK-EU borders. The EU has now granted the UK official third country listing, without which all products of animal origin would not have been allowed into the EU/Single Market at all after exit day. Types of SPS controls and checks at (as well as behind) the border vary significantly depending on the product, and are most stringent for products of animal origin, covered further below.

Businesses in these industries looking at contingency planning should become acquainted with how Border Inspection Posts (BIPs) operate, as any Products of Animal Origin (POAO) would need to enter through these coming into the UK or EU. BIPs are managed by Port Health Authorities, and consignments clearing them are required to present relevant veterinary certificates and other paperwork inspection. This is separate to customs-related clearance, which proceeds after. Given the sensitivity of the products in question, delays can often result from these checks, and building a longer time-frame into supply chain management will be essential, as well as retaining larger stockpile reserves.

While for some businesses – such as those in Northern Ireland – planning may be easier in respect of opening up a subsidiary or sister operation in the EU, it is also important to exercise caution in making too many active costly changes prematurely.

Investing time into exploring shadow supply chains may be a good alternative to pre-emptively replacing suppliers now.

It is also prudent to take this time – particularly in the event that there is a transition period – to map out as far as possible where your business sits in a current supply and/or value chain. UK-based retailers should consider sourcing from cheaper non-EU countries as well as leveraging the weaker exchange rate as part of their marketing strategies to new markets overseas.

1 https://echa.europa.eu/uk-withdrawal-from-the-eu) 2 https://echa.europa.eu/advice-to-companies-q-as/general 3 https://www.hse.gov.uk/brexit/uk-reach-it-guidance.pdf

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Life sciences and chemicals

CE marking

In the event of a no-deal Brexit, the UK medicines regulatory framework would no longer be managed by the European Medicines Agency (EMA). The Medicines and Healthcare products Regulatory Agency (MHRA) would take on the functions of the EMA in medicines1.

The CE mark is an EU safety symbol which demonstrates that the product has undergone testing and is compliant with EU legal requirements. CE marking is mandatory for many products but not all – read the Commission’s preparedness notice on industrial products for more details here7. Some CE-marked products must be assessed by third parties before being placed/sold on the EU market.

Accredited organisations within the EU called Notified Bodies are tasked with carrying out conformity assessments prior to goods being placed on the market. A full list of EU Notified Bodies can be found on the Commission’s NANDO database here 5. Many products can be assessed internally by manufacturers without any external testing, although they may wish to have it tested by a lab if they don't have the internal capability to do so themselves.

The Government is automatically converting all medicines that came on to the UK market via the EMA-administered Centrally Authorised Products (CAPs) licensing route into UK Marketing Authorisations (MAs) by 29 March. Most medicines on the UK market will already have a UK MA. Immediately after exit day, applications for MAs will initially need to be submitted to the MHRA and will be subject to national assessment. The MHRA is launching a consultation in the autumn on the regulation of medicines, medical devices and clinical trials, after which the Government has committed to publishing more guidance in the field of life sciences.

The EMA has launched an online hub with Brexit preparedness information here2.

If the UK leaves the EU without a deal, the UK would establish a new regulatory framework that replicates the EU’s REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals). The UK’s Health and Safety Executive will take on functions as the UK’s chemicals regulator3.

UK companies registered with REACH would no longer be permitted to sell into the EEA without transferring their registrations to an organisation (such as an affiliate) based in the EEA. Similarly, UK firms importing from the EU would be obliged to register their chemicals on the UK system.

The UK intends to carry across existing REACH registrations already held by UK businesses into the UK regime. In order for your firm to benefit from this so-called grandfathering, you should validate these authorisations with the HSE on an IT system which is scheduled to be ready from March 2019.

The process will involve setting up an account and providing some information on your existing registration within 120 days, and on your existing authorisations within 60 days, within the UK’s exit. Once these registrations have transferred onto the UK system, companies will have a period of two years from exit to submit a more detailed data package to the HSE. If you wish to place chemicals on both the UK and EEA markets, a no-deal event would necessitate you making two separate registrations although the data sets required for both would be the same. The ECHA has a helpful online tool with guidance on Brexit impacts here4.

In the event of a no-deal outcome, the EU will no longer recognise certificates issued by UK Notified Bodies, and goods requiring this which are covered by such UK certificates would then require re-certification before being sold in the EU. In practice this means the EU would no longer recognise certificates issued by UK Notified Bodies and goods for export to the EU would require re-certification upon entering the bloc. Goods already placed on the market prior to 29 March will be permitted to circulate in the UK. Goods already made and assessed against EU regulatory requirements will be able to be placed on the UK market after 29 March for a time-limited period, although the Government has not made clear how long this period of time would be.

In cases where the manufacturer self-certifies as a form of conformity assessment (i.e. prior to putting the CE marking on), they will continue to be able to do so after Brexit. If the product requires third-party conformity testing, under a no-deal scenario the manufacturer will likely need to use an EU-recognised notified body before being placed on the EU market.

Products that fall within a certain scope will see UK notified bodies granted a new UK ‘approved body’ status (see Annex A here 6). These bodies will have the ability to assess products for the UK market against UK essential requirements which, immediately after exit day, will be the same as EU essential requirements.

The Government has announced it will introduce a UK Conformity Assessed (UKCA) marking which, subject to approval in Parliament, will be applicable for certain goods being placed on the EU market in a no-deal event.

1 https://www.hse.gov.uk/brexit/uk-reach-it-guidance.pdf 2 https://www.ema.europa.eu/en/about-us/united-kingdoms-withdrawal-european-union-brexit 3 https://www.gov.uk/guidance/import-of-products-animals-food-and-feed-system-ipaffs-guidance 4 https://echa.europa.eu/uk-withdrawal-from-the-eu 5 https://ec.europa.eu/growth/single-market/goods/building-blocks/notified-bodies_en 6 https://www.gov.uk/government/publications/trading-goods-regulated-under-the-new-approach-if-theres-no-brexit-deal/trading-goods-regulated-under-the-new-approach-if-theres-no-brexit-deal 7 https://ec.europa.eu/info/sites/info/files/file_import/industrial_products_en_1.pdf

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Products of animal origin Most products currently covered by CE marking will fall within the scope of the new UKCA marking. The rules for the UKCA marking will mirror those which currently apply to CE marking. There are a number of rules which apply for placing and using the UKCA marking, which can be found in the Government’s technical notice here 1.

The British Standards Institution explains some possible negotiating outcomes and their implications for CE marking here2.

The BSI suggests the best negotiating outcomes in this area (in the interests of UK business) would be a mutual recognition option or a partial recognition option (the latter would see UK Notified Bodies playing a role in only some sectors). In June 2018 the Secretary of State for Business said the UK intends to apply to stay in the European standards system.

If you wish to continue to sell your products to the EU you will need to have an EU Notified Body (re)test them.

Alternatively, manufacturers may arrange for their files to be transferred to an EU Notified Body prior to exit day so that conformity certificates issued by a UK Notified Body continue to be valid. In each of these cases, products that have been tested by a third party would need to be re-marked with the four-digit number of the new EU Notified Body.

It may be worth contacting regulators or Notified Bodies as well as border control authorities in relevant EU member states to ascertain their approach to imports of UK industrial products in a no-deal scenario.

Products of animal origin (POAO) covers food groups such as meat, eggs and egg products, milk and milk products. A detailed list is provided by the Food Standards Agency here 6. In the event of a no-deal outcome, UK businesses trading in products of animal origin will no longer have access to the EU’s TRACES system for imports into the UK. It is in light of this that the Government is creating its own import system called the ‘Import of products, animals, food and feed system’ (IPAFFS), which will be relevant for both EU and non-EU imports3. The Department for Environment, Food and Rural Affairs (Defra) is releasing IPAFFS in phases and a significant proportion of its functionality will not be available until summer 2019. It will be possible, however, for businesses to register for IPAFFS from early March, and create notifications for consignments arriving after 29 March.

Given it will not be possible to use IPAFFS for live animal imports from the EU until summer 2019, the Government sets out the step-by-step notification process for businesses engaged in this activity here4. You will need to notify authorities – using a form on gov.uk – about animals and germplasm imports at least 24 hours prior to arrival.

UK importers of EU food that is not deemed ‘high risk’ (for example, products that do not contain salmonella) will not be subject to any additional controls, nor will a notification have to be made through IPAFFS. UK importers of EU live animals and germplasm must notify the Animal Plant and Health Agency (APHA) about the arrival of the consignment at least 24 hours in advance. One day’s notice must also be given to the APHA for EU-derived products of animal origin and animal by-products travelling on Intra-Trade Animal Health Certificates (ITAHCs) or commercial documents. As a transitional measure, ITAHCs issued by the EU will be valid in the UK for a period of six months after exit.

The UK must be legally listed as a third country with the EU for any UK products of animal origin to even enter the EU market. While this was granted shortly before the UK was due to leave this past March, the process must begin again with a new exit date of October 31st. This is not due to happen until mid-October, so traders in this sector should be mindful of the remote possibility this may not happen (although it had done so previously), particularly in considering any contingency stockpiling requirements.

1 https://www.gov.uk/government/publications/prepare-to-use-the-ukca-mark-after-brexit/using-the-ukca-marking-if-the-uk-leaves-the-eu-without-a-deal 2 https://www.bsigroup.com/LocalFiles/en-GB/Brexit/Brexit-product-conformity.pdf#_blank 3 https://www.bsigroup.com/LocalFiles/en-GB/Brexit/Brexit-product-conformity.pdf#_blank 4 https://www.gov.uk/guidance/importing-animals-animal-products-and-high-risk-food-and-feed-not-of-animal-origin-after-eu-exit#new-notification-process 5 https://www.gov.uk/guidance/exporting-animals-animal-products-fish-and-fishery-products-to-the-eu-after-eu-exit 6 https://www.food.gov.uk/business-guidance/importing-products-of-animal-origin

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Customs/Transport procedures As for trade in animal products going into the EU, the Government sets out the requirements for UK businesses exporting animal products here 5. As a first step it is necessary to apply for an export health certificate (EHC), a process which involves nominating an authorised signatory to inspect the product and ensure it meets the health specifications of the destination country. UK firms exporting products of animal origin to the EU must be listed with the bloc, as well as those UK firms/organisations who may only supply others with these products (who are then going on to directly export to the EU. These firms can submit their details and ask to be listed via an email address at Defra listed here 6.

The products will only be permitted entry into the EU via a BIP designated for that particular consignment. At present there is no BIP at Calais but French authorities are planning for one to be operational there by the end of March. You may find it useful to consult the full list of EU BIPs and consider whether rerouting is necessary1. You must give notice to your EU import agent that the consignment is arriving, so that they can notify the BIP through TRACES. Note that BIPs in the EU require at least 24 hours advanced notification of arrivals.

It is strongly advised to check whether your product will need veterinary certificates before entering the EU, as well as examining your supply chain and discussing with customers/suppliers to check whether products you handle require this further up/down the supply chain in order to anticipate any knock on effect for or from delays for those which may be held up at borders to comply with this new requirement. This is essential to avoid needing to secure vet certificates at the last minute in a no-deal scenario, as there may be a backlog due to capacity issues.

The UK must be legally listed as a third country with the EU for any UK products of animal origin to even enter the EU market. While this was granted shortly before the UK was due to leave this past March, the process must begin again with a new exit date of October 31st. This is not due to happen until mid-October, so traders in this sector should be mindful of the remote possibility this may not happen (although it had done so previously), particularly in considering any contingency stockpiling requirements.

The Government has announced the creation of Transitional Simplified Procedures (TSPs) for customs (and VAT) purposes in the event of a no-deal outcome. The procedures would reduce the amount of information that importers are required to fill in on a customs declaration when goods are crossing into the border. Importers will be able to defer providing a full declaration until after the goods have crossed the border. They can also defer the payment of any duty until the month after the import. The Government has said the scheme would be in place for an initial period of one year and this period will be subject to review2. Businesses wishing to take advantage of TSP must register here3.

It is essential to note that as a prerequisite for doing so, and as a BASIC minimum after no-deal, UK-based traders must have a UK EORI number (which begins "GB") to continue trading internationally anywhere. If you trade outside the EU you should already have this. If you ONLY trade with the EU currently, HMRC has just recently announced (mid-August) they are automatically issuing UK EORI number to firms trading only with the EU, and have written to all VAT-registered businesses with this information.

A copy of the standard letter can be found here4. However, businesses which are not VAT-registered (under the VAT threshold) and wish to continue trading with the EU will need to contact HMRC to ensure they are assigned one.

The letter also contains key information about ensuring firms who trade with the EU also have an EU EORI number as well to carry on in a no-deal scenario.

There has been some confusion recently about which UK firms also need an EU EORI number under a no-deal scenario. This depends to an extent on whether and how your businesses imports from the EU and also what your organisational structure is (i.e. if you are trading goods with a subsidiary or local branch). The European Commission sets who out who needs an EU EORI and how to check its database here (https://ec.europa.eu/taxation_ customs/business/customs-procedures/general-overview/ economic-operators-registration-identification-numbereori_en). Traders are alsostrongly advised to read the Commission's Brexit preparedness note on customs and discuss with their customers or suppliers in the EU whether all parties have correct EORI documentation/registration.

If your company interacts with both UK and an EU customs agency, you will need both sets of EORI numbers. The Commission's customs note on EORI numbers can be found here 5.

1 https://ec.europa.eu/food/animals/vet-border-control/bip_en 2 https://www.gov.uk/guidance/register-for-simplified-import-procedures-if-the-uk-leaves-the-eu-without-a-deal 3 https://www.gov.uk/guidance/register-for-simplified-import-procedures-if-the-uk-leaves-the-eu-without-a-deal 4 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/826682/HMRC_letter_to_traders_-_EORI_auto-enrolment_-_GB.pdf?_ ga=2.132509196.342062838.1566499264-1341878160.1556631185 5 https://ec.europa.eu/info/files/guidance-customs-matters-case-no-deal_en

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The Government has also announced that it will waive entry summary declarations for EU imports for six months under a no-deal scenario, as would be expected once the EU becomes a third country import/export destination.

However, customs declarations will still need to be lodged for EU trade, although the Government is reducing the amount of information importers need to provide on a declaration when goods are crossing the border, allowing a full declaration to be deferred until after they have done.

HMRC has said that the general TSPs are intended to be temporary, however would require a 12 month withdrawal notice period – so that these are unlikely to be overhauled at short notice. They would be reviewed 3-6 months after implementation. All traders wishing to take advantage of any TSPs under or in anticipation of a no-deal scenario would need to ensure they have a UK EORI number, regardless of whether they are VAT registered or not.

Customs/logistics intermediaries are not allowed to take part in TSPs, however they can use this in your behalf as long as you, the trader, have registered for TSPs. Either way, it is in the interest of individual businesses' importing goods from the EU after Brexit to explore this option directly.

To take account of the April 2019 extension, the Government has extended the process for registering for TSPs – more information for companies looking to avail of these on this update can be found here 1. Similarly, the process for obtaining access to the Government's Brexit customs training grants - allowing both normal traders and transport/logistics intermediaries to benefit from support in customs compliance and employee training/IT improvements has also been extended here4. At the time of writing, HMRC has not yet produced a link to apply but in mean time please contact them to enquire (or let us at the IoD know and we will pursue this for you).

On duty deferment, HMRC have announced measures to allow duty on EU and non-EU imports to be paid up to one month after the point of importation. Availing of this easement requires setting up a payment by direct debit in order to have a ‘deferment account’. For goods subject to excise control, the Excise Movement and Control System (EMCS) would no longer be used for UK-EU movements.

EMCS would however still apply for duty-suspended excise goods trade within the UK. A useful summary of the TSPs can be found here2. It is advisable that all traders engaged

in import/export with the EU review their “Incoterms” in contracts governing any cross-border trade which touches the EU directly or indirectly. These generally allocate the division of risk and responsibility for goods that cross international borders, effectively establishing in detail who the importer and exporter is. For pan-EU contracts, the lack of Incoterms to date may lead to confusion over responsibility for customs duties (and other costs) in contracts governing trade with the EU going forward, particularly under a no-deal scenario.

The UK's successful negotiation to access the Common Transit Convention in its own right will help alleviate pressure on key ports of entry while also mitigating cash flow for some companies managing their own transport and transit.

As referenced earlier, using the common transit procedure allows for customs duty suspension until the final destination, without the need for full customs controls every time a border (belonging to any of the CTC signatories) is crossed in between. To minimise duty loss/fraud, traders and those using the CTC system must post a financial guarantee.

Transit declarations, in place of full customs declarations, are electronically processed and shared through the NCTS. If you wish to make/manage transit declarations through your own company rather than have an intermediary do this and want to avoid queues, it's recommended to apply now to become an authorised consignor/consignee.

More information on this process can be found here3.

Generally speaking, many companies may approach this end of preparation wanting to manage it in-house, but intermediaries like customs brokers, shipping agents and/or freight forwarders can manage much of the routine compliance -even the new areas after Brexit- on your behalf.

However, it is strongly advised that you as a trader familiarise yourself with the new information you will need to submit to both relevant UK and EU authorities. They will take the information and input it, but any controls, delays or penalties incurred down the line arising from incomplete, insufficient or inaccurate product/customs/tariff information are almost entirely the responsibility of the trader supplying intermediaries with the information. This is where having someone in the company take advantage of HMRC's customs training grants, as it can help your business adjust and adapt their own trade managements systems and be in control of how to make efficiencies in supply chains.

1 https://www.morley-consulting.co.uk/news.html 2 https://www.gov.uk/government/news/hmrc-outlines-extension-of-transitional-simplified-procedures 3 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/783999/Customs_processes_to_prepare_for_leaving_the_EU_without_a_deal.pdf 4 https://www.gov.uk/government/news/chancellor-announces-billions-to-turbo-charge-no-deal-preparations

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Services | IoD Brexit Guide August 2019

Services While the Single Market in services is underpinned by some key consistent and enforceable legal principles, such as non-discriminatory treatment and the ability to tender for public service contracts in every participant country, it is far from complete in a number of sectors. This makes comprehensive certainty on what to plan for on Brexit more challenging. It may also, however, mitigate in certain areas the impact of the UK’s departure from the Single Market in some service sectors relative to goods because of the national barriers to intra-EU movement of services which already exist.

There are harmonised rules relating to financial services, broadcasting, public procurement, some aspects of company law (such as capital requirements, shareholders rights, audit/accounting and M&As) data flows/privacy and transport. Notably, although potentially of less immediate concern for Brexit business planning, there is also considerable harmonisation of competition law and policy.

However, the EU’s push to develop the full free movement of services within the Single Market has been primarily aimed at breaking down existing national discriminatory measures to trade. In contrast, there has been far more centrallydriven harmonisation of rules at the Single Market level for goods. As referenced earlier, companies should familiarise themselves with the regulations covering services for third country trade in individual EU countries, as they can range in requirements/facilitations depending upon the sector.

The Government has published individual EU/EEA country briefings for this purpose. The landing page for all those published can be found here 1.

Financial and related professional services For many financial services firms, contingency planning will already be in its advanced stages – if not already in active deployment. The Bank of England set a requirement for the UK’s biggest companies engaged in cross-border activities to submit details of their plans to the Prudential Regulation Authority (PRA) by July 2017. The Financial Conduct Authority (FCA) also made a similar request of the UK’s largest asset managers and issued guidance for financial institutions here2.

A number of companies in the finance sector are and should be looking at licensing requirements in other EEA countries, in light of the likelihood that UK access to “passporting” disappears outside the Single Market. The timescales needed to complete this process, depending on the country, can run from 12-24 months. Many national authorities across the EU are also making clear that firms should expect to put forward plans for a substantial material presence in order to obtain a license, rather than simply transferring some back office staff. The criteria demands are often – though not always – commensurate with the level of pre-existing financial service activity in the country.

In certain areas, some of the need to relocate or expand operations to an EEA location may also be driven by future EU regulatory developments – particularly once the UK has left the EU. A notable example is in euro-denominated wholesale banking (clearing, FX and derivatives trade), where the Commission has already unveiled proposals which could incentivise the shift of these activities to be located inside the Eurozone.

Subsidiaries of European parent companies should be looking at how they will respond to an outcome that requires a physical branch location inside the EEA to continue trading, while ascertaining how compliance with new rules such as MiFID II might evolve once the UK is outside the EU. Looking at pricing strategies, communicating response plans to all corners of the business (clients, shareholders, key staff etc.) is important. Assessing the potential impact on capital requirements (which could be either negative or positive depending on the negotiation outcome) and how loss of market access could affect the ability to raise capital from EU investors are also critical.

1 https://www.gov.uk/government/collections/providing-services-to-eea-and-efta-countries-after-eu-exit 2 https://www.fca.org.uk/firms/preparing-for-brexit#uk-firms

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Services | IoD Brexit Guide August 2019

Reviewing contracts is also a particularly important dimension for financial and related professional services firms because of the relatively high number of cross- border contracts which rely on passporting rights and other EU-regulated activities – which in turn have at their heart clear and detailed legal underpinnings relating to the Single Market. The termination of these rights, as many expect, would make fulfilling certain contracts agreed pre-Brexit day (i.e. loan servicing) after the UK’s formal departure date unlawful. While not applicable in every situation, some contracts with banks may need to be restructured, transferred or terminated.

Reviewing contract portfolios and engaging with national supervisors where your firm has operations or clients should be prerequisites if firms don’t wish to bank on the transition period allowing these to continue being carried out. For worst case scenario planning, the UK Government and the European Commission have issued a range of stakeholder notices for companies across the sector that are available here1 and here2.

The UK and other EU member states may independently agree to grandfather existing contracts under their national licensing regime on a case by case basis. The Bank of England and the FCA have sought to provide their own assurances in stating that any firm using passporting rights to operate in the UK can continue to rely on existing authorisations until at least the end of 2020 if there is a Brexit deal.

Importantly, the UK Government has legislated to introduce a Temporary Permissions Regime (TPR) which would give UK regulators the power to grant EEA firms and funds passporting into the UK permission to continue doing so for a maximum of three years, subject to HM Treasury’s power to extend the duration of the regime by increments of twelve months, while they apply for new authorisations from UK regulators3. EEA firms wishing to take advantage of the TPR must ‘notify’ the Financial Conduct Authority of this before the end of 30 October, although it is important to note that for PRA-regulated firms this window has already closed. The FCA has advised businesses not to wait until there is (clarity on) an implementation period to make this notification and confirmed that businesses which haven’t submitted a notification will not fall under the TPR4.

The Government’s no-deal preparations include legislating for temporary transitional powers for relevant UK regulators.

These would essentially allow the Bank of England, the PRA and the FCA to grant relief – for example, by waiving or altering businesses’ regulatory requirements – to firms whose UK regulatory obligations change due to Brexit5. The regulators have published general approaches to how they intend to use the temporary transitional powers6. If your business operates in the financial services sector it is worthwhile reading these guidance pages as there are exceptions to the transitional reliefs – for example, the FCA makes clear it expects firms to comply with MiFID II transaction reporting by exit day, which indicates this is an area that will not be subject to transitional relief.

Financial regulators confirmed some changes in light of the extension of Article 50 to 31 October. The FCA announced it intends to extend the proposed duration of the directions issued under the temporary transitional power to 31 December 2020. It is worth noting that, aside from the extended duration, the FCA’s approach remains unchanged7. Since the Article 50 extension, the Bank of England and the PRA have launched a consultation on the proposed use of the temporary transition power. The consultation closes on 18 September and the regulators have confirmed that they will publish final transitional directions and accompanying guidance prior to exit day. For more information on this consultation, click here 8 .

UK financial services companies passporting into the EEA will no longer be able to do so in the event of a no-deal. As of yet the Commission has not committed to providing the same degree of transitional guarantees to UK firms as the UK Government has done for EEA firms. It is advisable that UK firms passporting into the EEA contact authorities and regulators in relevant member states to ascertain what steps to take to mitigate the impacts of no-deal. Official government guidance states that many UK financial services firms who currently passport into the EEA are taking steps to ensure that they could continue to operate after exit, for example by establishing a new EU-authorised subsidiary.

1 https://www.gov.uk/government/publications/banking-insurance-and-other-financial-services-if-theres-no-brexit-deal/banking-insurance-and-other-financial-services-if-theres-no-brexit-deal 2 https://ec.europa.eu/info/publications/180208-notices-stakeholders-withdrawal-uk-banking-and-finance_en 3 https://www.gov.uk/government/publications/banking-insurance-and-other-financial-services-if-theres-no-brexit-deal/banking-insurance-and-other-financial-services-if-theres-no-brexit-deal 4 https://www.fca.org.uk/brexit/temporary-permissions-regime 5 https://www.gov.uk/government/publications/proposal-for-a-temporary-transitional-power-to-be-exercised-by-uk-regulators/proposal-for-a-temporary-transitional-power-to-be-exercised-by-uk-regulators 6 https://www.bankofengland.co.uk/eu-withdrawal/temporary-permissions-regime 7 https://www.fca.org.uk/news/press-releases/fca-announces-extension-its-use-temporary-transitional-power 8 https://www.bankofengland.co.uk/prudential-regulation/publication/2019/uk-withdrawal-from-the-eu-changes-following-extension-of-article-50

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Services | IoD Brexit Guide August 2019

Contracts for other service providers

VAT and Services Trade

Reviewing contracts generally should be an absolute essential for any and all companies with operations or activities which extend to other parts of the EU/EEA. Any part of a contract that rests – explicitly or implicitly – on the free movement of services/freedom of establishment (as provided for under Single Market rules) needs close examination.

EU VAT rules also apply to cross-border service provision as well, most notably in the digital trade sphere. There are a number of reliefs which apply to VAT on the supply of electronic services within the EU that would no longer be available as currently constructed to UK eBusinesses if the Government does not seek an arrangement to stay tied to the EU’s VAT areas.

If disruption relating to Brexit could be significant, inserting a “force majeure” or “material adverse change” that would allow for either the renegotiation of terms or – in extreme circumstances – termination of an existing contract with suppliers/providers and other clients or customers may be advisable. Making clear who would be responsible for any new costs arising from customs formalities, changes to VAT or other new obligations is also worth considering.

Clarifying the meaning of “territory” relating to licensing or distribution in contracts may also be desirable where there is an explicit reference to the EU or EEA, given the UK will likely no longer be a member of either – legally speaking – after exit day in March (even if trade terms stay the same).

While some supply of services may rely on EU rules and regulations to operate, there may be other legal bases which can be relied on to continue trading. For example, with some aspects of broadcasting, there is also the Council of Europe Convention on Transfrontier Television that is worth examining. On a wider point, companies should be looking at all the relevant sets of rules that apply to their sector: bilateral between countries, EU/EEA, WTO, plurilateral and sectoral bodies at the international/intergovernmental level which govern standards as well as issuing intellectual property protection.

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These include the VATMOSS system that removes the need for firms to register to pay and declare VAT in each EU country where their customers are based when selling digital services (i.e. e-courses, gaming services). In order to continue availing themselves of VATMOSS, UK sellers would have to register for VAT in one of the remaining EU27 countries. This is the only way to continue having access to the EU's VATMOSS portal to remove any further need to register in multiple EU countries to access the VATMOSS system. However, this must still be done by registering for the "Non-Union VATMOSS" scheme, although the general principles behind both are the same. Unfortunately, this cannot be done until after the UK has formally left the EU, so online sellers of digital services will need to do so quickly - time now would be best be spent checking which EU country's VAT system is quickest to use.

For those firms making use of VATMOSS, identifying which EU countries account for the most customer revenue and setting this against the cost of registering for VAT in those countries would be an ideal place to start planning. Unlike with import VAT, there is no current equivalent for deferred payment/ postponed accounting when it comes to taxing digital services trade.

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Public procurement The principles of transparency, equal treatment and nondiscrimination are important pillars when it comes to EU law on tendering for public sector contracts. All tender calls across the Single Market (including Norway, Iceland and Liechtenstein) must be published in the EU’s Official Journal.

Under the terms of the current Withdrawal Agreement, the existing public procurement regime will remain broadly unchanged for the duration of the implementation period1.

In a deal scenario, the procurement rules we have today will be preserved and will operate as they do today. Both sides have expressed a willingness to see this level playing field maintained, although the devil will be in the detail – particularly as regards enforcement and flexibility to adopt and amend EU procurement rules in future.

In February 2019 the Government announced it had successfully negotiated the UK’s accession to the global Government Procurement Agreement which maintains existing non-EU global trade provisions on public procurement1.

There tends to be less room for manoeuvre in restructuring or renegotiating contractual terms in public procurement procedures, and clarifying this with relevant public sector bodies / authorities across the Single Market should happen now. The IoD is currently liaising with the Government and European Commission to secure public clarity on this from the latter. Future restrictions on free movement of persons may also constrain firms’ ability to win or fulfil public sector contracts in other EU/EEA countries.

The enforcement and future dispute resolution dimension to future UK-EU arrangements will be important for firms to consider here, particularly, if they wish to bring a claim of discrimination in relation to the tender process after exit day.

This uncertainty extends to both new tenders and existing public sector contracts being fulfilled by UK companies across the EU, and firms should consider the potential for any delays to major projects as a result of any arising legal uncertainty. Businesses should also examine or clarify what scope there is for variations permitted under the current public sector contracts if there are significant changes arising out of Brexit – from currency fluctuations, to company base jurisdictions.

As for a no-deal scenario, the main immediate change would be the contracting authorities would then have to send notices to a new UK-specific e-notification service called 'Find a Tender Service' (FTS). This would replace the current requirement to do this with the EU’s Publications Office and Tenders Electronic Daily. The Public Contracts Regulation 2015 is not expected to change in the short term even under no-deal. The Government has said that the new UK e-notification service will be ready for use by exit day.

1 https://www.gov.uk/guidance/public-sector-procurement-under-the-eu-withdrawal-agreement

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Services | IoD Brexit Guide August 2019

Data flows One of the most important aspects of the negotiation between the UK and EU centres around the continued free flow of personal data between both sides.

Arrangements to continue facilitating this are crucial not only for the future economic partnership but also for a new security relationship once the UK is outside the EU. The vast majority (estimated at 75%) of the UK’s data flows are with EU countries, underpinning the transmission of everything from payroll and patient data to financial information between bank branches and the deployment of capital.

In order to allow these transfers to continue seamlessly, as a third country outside the Single Market, the UK will have to demonstrate to the EU that its protection of the treatment of EU citizens' data is adequate to be deemed as equivalent to the EU's regime. This should be significantly aided by the fact that the UK is currently complying in full with the EU’s new General Data Protection Regulation (GDPR), however the decision is an intensely political and often protracted one.

The onward transfer of personal data to other countries which are not deemed equivalent may complicate the process. The current draft of the Political Declaration states the EU will seek to adopt a decision on data adequacy by the end of 2020.

Beyond this, firms may wish to explore setting up data processing centres in an EU country (some European countries have more additionally onerous criteria at the national level to establish these - particularly Germany and France). A number of ICT companies in the UK have already done so, although this option relates primarily to handling EU citizens' personal data (such as payroll information or data for marketing/advertising purposes) in/across the EU. Establishing such a data processing centre will not provide protection for moving that data back to the UK. A more drastic alternative may be to block all European users from their company servers based on IP location. Appointing an EU representative in place of setting up an EU centre/office may be an alternative although you should update your company’s privacy notices to include their contact details.

Under a no-deal scenario, the speed of any potential side agreement on data adequacy cannot be relied upon from day one. The EU has set out what safeguards as a third country the UK could rely on in the GDPR to be lawfully importing personal data from EU citizens from day one. These include Binding Corporate Rules (BCRs), Standard Contractual Clauses (SCCs, often referred to as model contract clauses), certification and codes of conduct, and derogations (the latter applying to EU data exporters only). The UK’s Information Commissioner’s Office explains these options in more detail here1. Both can be costly and complex to erect, and we would strongly recommend consulting a (data privacy) lawyer to ensure these are being done correctly. Please contact the IoD policy team in the first instance about any uncertainty relating to drafting these.

1 https://ico.org.uk/for-organisations/data-protection-and-brexit/standard-contractual-clauses-for-transfers-from-the-eea-to-the-uk-interactive-tool/

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Intellectual Property Covering both goods and services, the effect of Brexit on intellectual property (IP spans a range of areas for consideration. These include EU Trade Marks (EUTMs), Geographical Indications, Registered Community Designs, Plant Variety Rights (PVRs) and Supplementary Protection Certificates. While many aspects of intellectual property rights (IPR) derive and benefit from EU legislation and related enforcement provisions, there are a number which do not. Distinguishing between these is important to ascertain what businesses need to be looking at for continuity purposes.

Any patents granted under the European Patent Office (EPO) will not be affected by the UK’s exit from the EU – as the EPO is not an EU-based entity – nor will applications be made under the Patent Cooperation Treaty. UK patents granted by the UK Intellectual Property Office (UK IPO) will also not be impacted by Brexit. It is also worth noting that the UK’s participation in the new Unified Patents Court (UPC) and implementation of the Unitary Patent is not expected to be affected by leaving the EU – while the Government has ratified the UPC agreement, the implementation of the system is dependent on ratification of the agreement in Germany1. If there is no-deal and the establishment of the UPC goes ahead, the nature and extent of any UK participation in the system is unclear2.

The draft Withdrawal Agreement gives considerable continuity of cross-border protection to provisions such as Geographical Indications, and the IoD’s briefing on the WA goes into more detail here3. EU-wide rights under the WA are replaced / recognised in the UK and provisions are given for pending applications. While the WA will provide a base level of provision to allow for continuity, the future of both the domestic IP landscape and agreements on IPR between the UK and EU after the transition ends relies on what dispute settlement provisions are agreed, and on the detail of the FEP. Under no-deal, a UK national trade mark will be available from the point of departure, so European mark-holders will need to be in possession of both to continue operation and enforcing these cross-border. The UK IPO is establishing procedures for those holding EU trade marks and registered design rights to refile in the UK for equivalent protection.

Details on completing the application – which can be done via post or online – can be found here4 for trade marks and here 5 for registered designs. These rightsholders not wishing to refile in the UK can opt out of this process. The IPO has already announced its numbering system for new UK trade marks6.

Businesses wishing to be represented by a trade mark attorney or law firm on EU registered designs and trade marks will need to use one established in the EU. However, they can continue to apply for these themselves without needing an EU commercial establishment.

Copyright is unlikely to be disrupted significantly by no-deal, but EU-derived legislative rights such as database rights may no longer be enforceable by UK database right holders in the EEA. Indeed, UK Government guidance states that certain cross-border copyright mechanisms will no longer function in the way they are intended and future arrangements depend on negotiations with the EU7.

Exhaustion is the loss of the right of control distribution and resale of a product once it has been placed on the market inside a specified territory by, or with the consent of, the right holder. The UK is at present part of the regional EEA exhaustion scheme which means IPR are considered exhausted once they have been put on the market anywhere in the EEA with the rights holder’s permission. In the event of a no-deal outcome, the UK will continue to recognise the EEA regional exhaustion scheme from exit day, which means there will no change in the immediate term for imports of goods into the UK. However, goods placed on the UK market by or with the consent of the right holder after Brexit may not be considered exhausted in the EEA. This means that businesses exporting these goods from the UK to the EEA may require the right holder’s consent to export IP-protected goods that have been legitimately put on the market in the UK to the EEA. Businesses in this situation may wish to seek legal advice on how this arrangement might affect their business model or IP rights.

This 8 guidance from the Law Society explains the current state-of-play in regards to IP rights under no-deal, as does this 9 shorter legal briefing.

1 https://www.gov.uk/government/publications/patents-if-theres-no-brexit-deal/patents-if-theres-no-brexit-deal 2 https://www.gov.uk/guidance/intellectual-property-after-brexit 3 https://www.iod.com/news/navigating-brexit-for-business/articles/the-brexit-withdrawal-agreement-what-does-it-mean-and-what-next 4 https://www.gov.uk/how-to-register-a-trade-mark 5 https://www.gov.uk/apply-register-design 6 https://www.gov.uk/government/publications/numbering-system-for-comparable-uk-trade-marks/numbering-for-comparable-uk-trade-marks 7 https://www.gov.uk/government/publications/ip-and-brexit-the-facts/ip-and-brexit#copyright 8 https://www.lawsociety.org.uk/support-services/advice/articles/no-deal-brexit-intellectual-property/ 9 https://www.slaughterandmay.com/what-we-do/publications-and-seminars/publications/newsletters-and-briefings/2018/deal-or-no-deal-ip/

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Trade with the Rest of the World | IoD Brexit Guide August 2019

Trade with the Rest of the World The IoD’s briefing1 on the withdrawal deal summarises its provisions for how, under the transition period, formal trade arrangements with third countries would be conducted.

The UK would be free to sign and ratify its own external agreements in areas such as trade policy, but not bring them into force (unless agreed to by the EU). However, it would also continue to be part of and benefit from EU trade agreements signed and brought into force during this period – subject to third countries agreeing with this approach.

However, a more imminently pressing issue, particularly looking ahead to a no-deal scenario, is the continued application of current EU trade and related technical agreements to the UK on a standalone basis. As has been reported, there are up to 759 of these, ranging from aviation and fishing agreements with the rest of the world to wine & spirits deals along with a large number of existing EU preferential trade agreements.

The Department for International Trade has a large chunk of responsibility for transitioning these, although DFID, DEFRA and the FCO also have a hand in helping to do this at a political and sectoral level. If the current Withdrawal Agreement is eventually passed, with or without the backstop, then a transition period will follow where the expectation from both sides is that these agreements will all "roll over" into this period, whereupon they can then become full UK trade agreements thereafter.

A no-deal scenario presents much bigger challenges for transitioning all these deals by March 29. The Government have announced they have reached agreement with a limited number of countries to transition their EU trade arrangements over with the UK in a no-deal scenario.

The most recently-updated list from DIT on progress can be found here2. This also extends to several mutual recognition agreements with the US, Australia and New Zealand.

However, there are likely to be changes to some key areas in these continuity deals, given time constraints from no-deal, intersections with EU areas of competence in trade, and the limitations of Brussels in being able to legally negotiate trilaterally while the UK is still a member of the EU. Indeed we can already see some of these changes such as how origin is calculated for traders to continue obtaining tariff preferences in the EU-South Korea deal 'rollover', and the fact that much of the services access the UK currently has to Single Market member Norway is not covered or maintained in the transitioned UK agreement. A brief explanation of these issues by the UKTPO can be found here4.

The Swiss government has provided the most detailed information to date on what its rollover deal with the UK encompasses (these cover a number of different bilateral agreements)3. DIT has also begun publishing comparisons between EU agreements and signed UK 'rollover' deals with third countries to isolate where and what the differences are that traders need to know. However, a number of key country markets which the UK currently has preferential access to through EU trade agreements are not close to finalisation and may be unlikely to be by October 31st if there is no withdrawal deal with the EU. These include Japan, Canada, and Turkey among others. Some governments have judged that they could simply obtain equal or better preference to the UK simply through the UK's temporary no-deal tariff regime instead of negotiating to roll their deals over. Businesses trading with these countries should check their contracts with suppliers or customers in these countries to determine whether they are making use of any of these agreements, and discussing any potential delay or loss in market access as well as contingency measures to pre-empt this ahead of time.

However, a number of others are in doubt, and businesses using these agreements to trade with the countries in question should be discussing potential loss of access under these and contingency measures with suppliers/customers in-country.

1 https://www.iod.com/news/navigating-brexit-for-business/articles/the-brexit-withdrawal-agreement-what-does-it-mean-and-what-next 2 https://www.gov.uk/government/publications/existing-trade-agreements-if-the-uk-leaves-the-eu-without-a-deal/existing-trade-agreements-if-the-uk-leaves-the-eu-without-a-deal 3 See Swiss Government factsheets on rolling over EU trade/technical agreements with the UK which can be found here – https://www.seco.admin.ch/seco/en/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaftsbeziehungen/brexit.html 4 https://blogs.sussex.ac.uk/uktpo/2019/03/29/the-uks-continuity-trade-agreements-is-the-roll-over-complete

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Trade with the Rest of the World | IoD Brexit Guide August 2019

It is important to review all Incoterms and contracts generally covering trade with affected countries in case they make provisions for relying on preferential terms of some of these agreements. Anecdotal conversations with some IoD members trading with/in Turkey for example reveal that not every director knows whether their company is using preferential EU trade arrangements. Companies relying on ATR forms for import/export with Turkey are in fact using the EU’s customs union agreement with the country, and this may be only completely understood by intermediaries which companies have relied on for logistics of moving their products, such as customs brokers or freight forwarders.

This is particularly the case for those who are shipping or in supply chains with companies that are sending out products for shipment to the Far East etc, where lead/transportation times could mean a different set of requirements are needed if/when arriving in-country on or beyond October 31 should there be no EU withdrawal deal. For exporting companies in particular, it would be advisable to ask customers in affected countries to check with their customs, transport and regulatory authorities about changes or contingency measures their own governments are putting into place for imports from the UK if there is no rollover of the current EU trade arrangements by the end of October.

It may be that, depending on how much your company trades with certain third countries, it may no longer be worth the cost of complying with what's needed to obtain tariff preferences for export to a customer (or vice versa) under the new continuity deal in place there. Moreover, the forms your firm uses to send goods or tender for certain services abroad may no longer be valid or may change after a no-deal exit based on those being unique or specific to EU trade schemes with other countries (such as Rex system or the aforementioned ATR form). Alternatively, increased awareness of these preferential trade arrangements may make directors aware of efficiencies they could make in how they trade with certain third country markets under the terms of these agreements that they currently are not taking advantage of.

DIT has begun issuing country-specific guidance for exporting outside the UK where there is no-deal on its main documents/publications page, which are most relevant where this is a preferential trade agreement in place. However, it may be more useful to consult with these authorities directly to understand how the way your goods are treated at the border may change, which is information country embassies in the UK can provide upon request (or through their UK-based trade/investment agency where these exist). Please contact the IoD's policy team if you would like to expedite any such requests for information, as we regularly meet with their government's commerce representatives in London.

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Northern Ireland | IoD Brexit Guide August 2019

Northern Ireland Owing to its unique circumstances and deep integration with the all-island economy in connection with the Republic of Ireland, some Brexit guidance is particularly different for firms and organisations operating in Northern Ireland.

Much, though not all, of this is connected to trade in goods across the land border, which we will return to further below.

Also of note is the Common Travel Area (extending beyond the UK and ROI to include the Crown Dependencies).

This provides not only for free, reciprocal unrestricted movement between each other’s territories for British and Irish citizens, but also reciprocal access to social security, employment, healthcare and education.

Both the UK and Ireland have committed to upholding this regardless of any Brexit outcome, as it predates the EU membership of both countries. Citizens do not have to take any pro-active action to protect or guarantee these rights in preparation for a potential no-deal outcome.

The UK Government’s guidance makes clear that “other nationalities travelling within the CTA remain subject to national immigration requirements [and such] individuals arriving into the UK from Ireland should ensure they meet UK immigration requirements” 1. However, concerns have abounded over the practical intersection between the CTA and free movement for all EU nationals after Brexit, so the Government has inserted a clause into its new Immigration Bill which puts on statutory footing for the first time a firm exemption for Irish citizens from UK immigration controls. A useful summary of the issues can be found here2.

Naturally, the Irish Government (as a continuing member of the EU) will continue to allow full free movement for all remaining 26 EU countries, while the UK Government has made clear that free movement for EU citizens will come to an immediate end with Brexit. The “People” section of this document goes into more details about such requirements under any no-deal scenario. This should be assessed carefully by those UK or Irish directors who have other EU nationals as staff who may not possess either citizenship but are residents, although the UK’s settled status scheme should ensure this does not present any issues for travel or employment.

The Irish Government earlier this year introduced a “Brexit Omnibus Bill” (now an Act) to draw up contingency powers/decisions for deployment under a no-deal scenario, which - while not comprehensive (it remains largely silent on land border trade) - does deal with many other areas of cross-border trade.

On the CTA, it envisages amending several laws to ensure continued student support and access to education, welfare access, protection of consumers and employers – particularly for UK citizens. This also extends to [continued] mutual recognition of professional qualifications between not only British citizens but also residents and nationals.

More widely, the Omnibus legislation makes amendments to a number of areas around VAT and wider tax relief measures to provide for continuity of access for all-island firms and UK businesses operating in Ireland. It also provides some baseline measures to help keep the all-island Single Electricity Market (SEM) functioning, although both the UK and the Irish Governments state in their guidance that the seamless continued operation of SEM in a no-deal scenario will require intense bilateral work – particularly in the context of EU energy legislative frameworks - to do this. Useful summaries of the Omnibus provisions can be found here3 from the Hansard Society, and a practical collation of all key areas from KPMG here4. The Irish Government’s information here5 is particularly relevant for directors who have operations or business on both sides of the border.

While passenger transport services between NI and ROI should remain unaffected, the same cannot be relied upon for commercial freight and transport. Hauliers can continue to use EU Community licenses until 31st December 2019, but thereafter they will have to apply for ECMT permits, and NI hauliers have received 15% of initial permit applications.

Those who rely on trade in goods across the land border should ensure they should continue speaking to logistics providers to ensure they know what their contingency plan in connection to this is, so that any potential delays in (and after) a no-deal scenario as a consequence of such transport issues can be worked in ahead of time.

This could also well be compounded by complications arising from EU-based commercial lorry drivers who may not have the necessary new documentation in time to allow them to move as easily into NI and the UK in a no-deal scenario as they do currently. Last year, driver shortage was already an issue for freight transport around the Christmas shopping period. Taking into account the October 31st deadline for leaving the EU with or without a deal from the current government, and the stockpiling rounds which are likely to gather pace again, it is imperative that traders and retailers are factoring this in when discussing contracts and delivery times with suppliers and customers now.

1 https://www.gov.uk/government/publications/common-travel-area-guidance/common-travel-area-guidance 2 https://www.freemovement.org.uk/how-will-brexit-affect-irish-citizens/ 3 https://www.hansardsociety.org.uk/blog/irish-parliament-completes-legislative-preparations-for-a-no-deal-brexit 4 https://assets.kpmg/content/dam/kpmg/ie/pdf/2019/02/ie-ireland-brexit-omnibus-bill-legislation-22-february-2019.pdf

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Northern Ireland | IoD Brexit Guide August 2019

The UK Government has issued its proposals for avoiding a hard border/checks and controls at the land border under no-deal, although this is a strictly unilateral and time-limited approach (no estimate as yet on the duration). It firstly proposes waiving tariffs on all goods coming into the UK via the Republic of Ireland – which means products from ROI and *all* EU member states coming into Northern Ireland would be tariff free, including any goods from third countries which have customs cleared upon entry elsewhere into the EU. Effectively, this approach only deals with (what will become) imports into NI via ROI. Goods coming into NI via Ireland would still then be subject to VAT and excise, although this becomes an actual border impediment once outside of the EU’s VAT area. The Government has proposed that VAT-registered businesses in NI would then continue to account for VAT on their normal VAT returns (this has not been provided for reciprocally at present).

Small firms trading across the land border who aren't VAT registered will need to sign up for a voluntary online declaration service.

On the compliance processes (online or otherwise) to underpin these proposals for businesses and end-users to engage with, along with full information on how to ensure controls on agrifood products coming into NI from ROI are dealt with away from the border, the guidance is silent. At the time of writing, no further detail has been provided from government beyond this press release 1. The IoD is a member of the Northern Ireland Border Delivery Group (BDG), and has been pressing the new government hard to urgently issue further details that will underpin any new processes.

While there has been some speculation that the UK Government’s approach to NI tariffs could be illegal under WTO rules, there has been no move away from these proposals to date. The Irish Government has not published any substantive information as yet for its own plans on border management or related checks and controls on goods, and many of the areas covered on customs and regulatory controls are managed by the EU, although customs cooperation is routinely bilateral.

Companies in NI who only trade across the land border do not need to register for a UK EORI number (begins with “GB” and is needed to allow imports/exports with the EU after Brexit) – if you don’t already have one. However those who sell to or buy goods from other EU countries should ensure they have an EORI number and are exploring the third country customs facilitations, like customs training grants and transitional simplified procedures, for no-deal imports mentioned earlier in this document.

Our Head of EU and Trade Policy, Allie Renison, represents IoD NI on the BDG and is also a member of the technical panel exploring how to replace the “backstop” with alternative arrangements. She spends much of her time in Northern Ireland engaging with members on Brexit planning – please get in touch with her or IoD NI to pass on your views and planning questions.

While not a catch-all solution and a costly one for some firms, opening an office or transferring operations to the Republic (particularly for goods often subject to controls – agrifood, products of animal origin, excise) may be the best mitigating route to minimising uncertainty in planning for unknown disruption at or around the border.

Allowing for inter-company transport via an ROI (and therefore EU) subsidiary can assist with managing and planning cash flow in a no-deal scenario. The Companies Registration Office website2 has information on the requirements for establishing a commercial presence in Ireland, as well as an updated section on Brexit preparation.

Finally, for those directors looking for financial support to help prepare, those who already trade with or in ROI can benefit from a number of existing schemes. One, run by InterTrade Ireland, offers vouchers3 to offset the cost of professional planning advice up to €2000/£2000, while Enterprise Ireland offers grants up to €5000 in support for SMEs who are existing clients for the same purpose – information available here4. The Irish Government is also running a Loan Scheme5 with amounts between £25,000 and £1.5 million to fund business change/adaptation or future working capital requirements relating to Brexit for any SMEs established and operating in the Republic.

1 https://www.gov.uk/guidance/eu-exit-avoiding-a-hard-border-in-northern-ireland-in-a-no-deal-scenario 2 https://www.cro.ie 3 To find out more on Intertrade vouchers, visit https://intertradeireland.com/brexit/brexit-funding/brexit-start-to-plan-vouchers/ 4 https://www.enterprise-ireland.com/en/funding-supports/Company/Esetablish-SME-Funding/Be-Prepared.html 5 Full information on the Loan Scheme can be found at https://sbci.gov.ie/schemes/brexit-loan-scheme

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Funding | IoD Brexit Guide August 2019

Funding There are various different strands to looking at the impact of a no-deal Brexit on funding. The most talked-about area relates to participating in Horizon 2020 research/ development/innovation programmes (bidding for and continuing existing participation) and thereafter. In a deal-scenario, under the Withdrawal Agreement, the UK and EU had agreed that the UK’s rights in all such participation would be protected and guaranteed for the lifetime for Horizon 2020 projects.

For a no-deal scenario, the Government committed under Philip Hammond as Chancellor that the Treasury would guarantee competitive bids from UK stakeholders for EU funding projects submitted before exit. This extends to those bids which are deemed successful after the point of exit, and is being ported over by Boris Johnson’s government.

This would run until 2020, and those who are or have been successful in their Horizon bids should register their relevant projects on UK Research & Innovation’s online portal. This is the obligatory first step towards any further provision of a funding guarantee. More information on this can be found here1.

Some IoD members have reported finding themselves already being or feeling frozen out of (consortia) new bids for funding and/or had to make a bid using another EU-based location for their organisation. If this is the case, we strongly urge you to get in touch with the policy team so we can take up advocating on your behalf, as until we leave the EU, the European Commission and other EU institutions/ agencies are obliged to continue treating UK-based bidders in a non-discriminatory manner. Alternatively you can contact research@beis.gov.uk directly to report any related issues.

The Commission has also issued a notice on UK partner eligibility on p.1 of this update to Horizon 2020 work here2.

The Treasury has also recently announced a new £200 million funding addition for the British Business Bank to disburse to UK small businesses for innovation and growth development purposes, in tandem with the UK’s likely departure from the European Investment Fund3. While under a no-deal Brexit, organisations will no longer be able to apply for loans from the European Investment Bank (Group), existing Brexit legislation has ensured that any funding granted under existing EIBG funding and related contracts will be protected so no action is deemed necessary4. The Government has also set out no-deal guidance relating to delivering overseas aid

programmes here 5 – private contractors are not expected to be affected but other organisations may be if the EU terminates funding to ongoing programmes as it has warned may happen.

Directors are strongly advised to review any contracts regardless of where they are in any chain where EU funding may be provided – including checking if any of your clients currently benefit from or are planning to apply for any funding. More widely, the Government has not yet made any firm commitments on support measures or compensation for companies adversely affected by a no-deal exit, likely owing to the complicated intersection with WTO rules in this area (particularly relating to subsidies and/or compensation for tariffs).

The new Chancellor has announced a significant funding boost for no-deal preparations, and set aside £108 million of this for business readiness, but at the time of writing there is still no substantive detail on the allocation or implementation of this. The announcement can be found here 6. The IoD has met recently with the Chancellor of the Duchy of Lancaster to discuss its longstanding proposals to help directors and their organisations plan for Brexit by issuing vouchers to offset the cost of professional/legal/accounting advice or making Brexit preparation by companies tax deductible. A recent article from our Head of EU and Trade Policy sets out the reasoning here7.

Finally, as referred to earlier in this guide, HMRC is extending the deadline for firms to apply for its customs training grants to prepare for any no-deal outcome.

In addition to the financial assistance programmes for those (in the first instance in Northern Ireland) trading with or in Ireland, the devolved Scottish government has also begun issuing grants for Scotland-based firms for Brexit planning and adjustment, both for VAT-registered and VAT exempt businesses. More information on its grant programme can be found at https://www.prepareforbrexit.scot/updates/ brexit-support-grant.

1 https://www.gov.uk/guidance/horizon-2020-funding-after-brexit 2 https://ec.europa.eu/research/participants/data/ref/h2020/wp/2018-2020/main/h2020-wp1820-intro_en.pdf 3 https://www.british-business-bank.co.uk/extra-200-million-backing-for-british-businesses/ 4 https://www.gov.uk/government/publications/european-investment-bank-group-financing-if-theres-no-brexit-deal/european-investment-bank-group-financing-if-theres-no-brexit-deal 5 https://www.gov.uk/government/publications/delivering-overseas-aid-programmes-if-theres-no-brexit-deal/delivering-overseas-aid-programmes-if-theres-no-brexit-deal#what-you-need-to-do-to-receive-funding 6 https://www.gov.uk/government/news/chancellor-announces-billions-to-turbo-charge-no-deal-preparations 7 https://www.telegraph.co.uk/business/2019/07/30/government-should-make-brexit-planning-tax-deductible/

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People | IoD Brexit Guide August 2019

People

EU nationals in the UK and “settled status” in a deal scenario

The rights of EU nationals currently resident in the UK, UK nationals working in the EU, and future access to EU workers regularly top the negotiation priority list for IoD members. These issues are not just important in isolation, but also integral to trade continuity in both goods and services with the EU. The success of companies with pan-European operations (as well as those expanding across the EU) and commercial contracts often hinges on the ability of workers to move around Europe freely.

As evidenced in Part Two of the draft Withdrawal Agreement text2, the UK and EU have made significant headway on a deal to guarantee rights for EU/EEA nationals currently living and working in the UK, as well as vice versa. A few important issues remain outstanding, such as the onward movement rights for UK citizens living in the EU. EU citizens in the UK have been able to apply for “settled status” – the new scheme intended to replace the permanent residence for EU nationals – since 21 January 2019 and the scheme has been open fully since 30 March 2019. The Government has also reached a parallel agreement with Norway, Iceland, Liechtenstein and a separate agreement with Switzerland (which also currently benefit from free movement rights). Citizens from those countries will also be able to apply for settled status from 30 March 2019. Irish citizens will not have to apply for settled status as their right to reside in the UK is unaffected by Brexit as it is covered by the Ireland-UK Common Travel Area agreements and the 1949 Ireland Act. The Immigration and Social Security Bill – which is currently on its passage through Parliament – also clarifies the situation of Irish citizens, as well as confirming that they do not need immigration permission post-Brexit.

The Government under Theresa May had made clear that freedom of movement as currently constituted will come to an end after Brexit (and the implementation period that immediately follows, if a withdrawal agreement is passed), while stating that the Government wants EU nationals already here to be able to remain in the UK after Brexit.

The Government published the long-awaited Immigration White paper in December 2018, which set out its proposals for future immigration policy. The main change in approach is creating a ‘skills-based’ system, rather than the existing one which is based on nationality. EU nationals will have no more preferential treatment than people coming from other parts of the world.

Other proposals include: • A consultation on a minimum salary threshold of £30,000 for skilled migrants seeking five-year visas • A commitment that EU nationals will not require visas to visit the UK

EU nationals who qualify (by arriving in the UK before 31 December 2020) will still be able to apply until 30 June 2021.

EU citizens and their close family members arriving during the implementation period between 29 March 2019 and 31 December 2020 will still be entitled to free movement rights and be able to apply for temporary – and subsequently settled – status. Home Office guidance on the application process and rules for settled status are available here3.

• A commitment to phasing in the new system from 2021 The Government also published a policy paper setting out the full details of citizens’ rights arrangements here1.

The new Government with Boris Johnson at the helm has not yet stated in detail its proposed approach to the future immigration system, although it is unlikely that it would be radically different to that of the previous one. After his appointment as Prime Minister, Johnson emphasised his commitment to “supporting the freedom of people of talent” to come to the UK. Specifically, he has called on the Migration Advisory Committee to conduct a review of the Australian-style points system.

In the meantime, businesses should familiarise themselves with Home Office guidance that is continually being updated on its website on applying for settled status, as well as encouraging their workforce to read through the information.

Anyone who is an EEA citizen – and living in the UK lawfully – will be able to apply for settled status, regardless of whether they currently have permanent residence. This also extends to their family members (spouses, civil and unmarried partners, dependent children and grandchildren and parents and grandparents). Those with permanent resident documentation already must have it converted into a settled status document through the same process free of charge.

1 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/790570/Policy_Paper_on_citizens_rights_in_the_event_of_a_no_deal_Brexit.pdf 2 https://ec.europa.eu/commission/sites/beta-political/files/draft_agreement_coloured.pdf 3 https://www.gov.uk/settled-status-eu-citizens-families

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People | IoD Brexit Guide August 2019

EU nationals in the UK and “settled status” in a no-deal scenario People who by the end of 31 December 2020 (the end date of the expected Brexit implementation period) have been continuously living in the UK for 5 years will be able to apply for and receive settled status. They will be able to live and work freely, have the same access to UK social security and public services entitlements that UK nationals have, and apply for UK citizenship. For those who will have been here less than 5 years continuously, an application can be made for ‘pre-settled status’ – a temporary permission to stay – until they have reached the 5-year threshold. After that point, they can apply for the permanent settled status category.

While the Government had initially said there would be an application fee to apply for settled status, Theresa May subsequently announced that the government had taken the decision to waive the fee and reimbursements have been issued since 30 March 2019 to those who had already paid.

The application will be available to complete online and in paper form, as well as on a smartphone app. Note that not all parts of the application can be completed on Apple iPhones, though they can on other smartphones.

If the UK leaves the EU without a deal, there will be some tweaks to the scheme outlined above. The Government has announced a scheme that, in the event of a no-deal, will apply to EEA nationals arriving in the UK after exit day and wishing to stay in the UK longer than 3 months after exit day. European Temporary Leave to Remain allows EEA citizens to live, study and work in the UK and is valid for a period of 36 months from the date of application, on top of the 3 months’ initial leave they will be granted on entry into the UK. It is worth noting that this status does not lead to indefinite leave to remain and it is separate from the aforementioned settled status scheme.

We would encourage IoD members and business leaders more widely to proactively engage with their employees on this guidance rather than waiting for them to address it on their own. Good staff communication will help everyone in the workplace feel ready for this part of Brexit. However, employers should be mindful of their legal limitations in this regard. You are not permitted under law to assist applicants in the actual application process or do the application for them.

You should also be aware that doing so may expose you to liabilities should that person’s application prove unsuccessful.

Supporting documents for applying for settled status include: • Proof of identity (e.g. a passport or ID card) and a recent photograph (if applying via the ‘EU Exit: ID Document Check’ app, you will be able to take a photograph using your phone) • A declaration of any criminal convictions – there is no need to provide any documentation although it involves ticking a box You don’t need to do the following: • Account for every trip you’ve taken out of the UK • Show evidence that you held comprehensive sickness insurance (as was previously required for students and self-sufficient people seeking a permanent residence document) • Provide any fingerprints or biometric data (unless you are the non-EEA national family member of an EEA national)

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Nevertheless, as part of the communications process, an internal audit to identify who is an EU, EEA, and/or Swiss national will help assess who needs to take what steps to secure continuity. It is important to be mindful that some members of staff who appear to be non-EU nationals may in fact be resident in the UK by virtue of an EU passport (for example, US-born staff who have dual Irish and American citizenship).

Other steps that firms can take in terms of assessing and limiting the impact of Brexit on their workforce and access to talent include: • Drawing up a communications plan to employees (as well as to other parts of the business such as shareholders, management and suppliers) to discuss updates to Home Office guidance and the application procedures • Where possible, look ahead to staffing requirements over the next 2-4 years • Quantify the cost of having to retrain new staff to replace or fill identified potential staffing gaps

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People | IoD Brexit Guide August 2019

• Consider drawing up an in-house Brexit team or assign these responsibilities to someone within HR (if applicable) • Monitor developments on future immigration policy such as the passage of the Immigration Bill in Parliament and any updates on right to work check documents in a no-deal scenario The arrangements for UK nationals in the EU are managed by individual member states rather than the Commission.

The UK Government has updated its ‘Living In’ guides1 to reflect Brexit-related developments in EU27 countries.

1 https://www.gov.uk/government/collections/overseas-living-in-guides

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Brexit Checklist | IoD Brexit Guide August 2019

Brexit Checklist We hope you have found the information so far useful, and while there is never enough time and space to go through every detail, a checklist of questions is provided below as a final reminder of what your business should be contemplating as the UK’s EU exit draws near:

1.

Have we mapped out all of our potential pinchpoints of exposure to Brexit – from financing and tax liabilities to regulatory compliance requirements and an EU employee audit?

11.

Have we looked at intermediaries such as freight forwarders, shipping agents and customs brokers to help relieve some of the burden of new transport and customs challenges?

2.

Have we discussed the company’s Brexit plan and risk assessment with the board and shareholders?

12.

3.

How long would we need to make adjustments to cross-border operations and activities under a new economic arrangement between the UK and EU?

Is there a need to look at regulatory/licensing requirements in other EU countries and assess what the most cost-effective place to open up a subsidiary/ local branch would be?

13.

Have we clarified delivery terms with my customers?

Do all parts of the business have correct EORI numbers (both UK -where numbers start with "GB"- and EU EORI)? Have we explored HMRC's no-deal simplifications (i.e. TSPs) and training grants for customs?

14.

Have we quantified the cost of goods sitting in EU or UK customs for each extra hour or day?

15.

If we are looking to raise finance as part of a mediumterm strategy, have we factored Brexit into this?

What are the cash flow implications of continued volatility in the exchange rate and have we made any plans to mitigate this – through hedging/ forward contracts or setting aside enough cash/ capital reserves?

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Should we review or revise forecasts and cash flow predictions?

17.

Are we using the weaker pound as part of our exports sales marketing strategy?

6.

Have we conducted a review of our supply chain – upstream and downstream – to assess the potential for indirect impacts of Brexit changes and looked at alternative suppliers?

18.

7.

Can my business absorb the range of potential cost increases, and/or can we pass any of these on to my customers?

Can we look into existing EU free trade agreements or those currently being negotiated to see if there are preferences for new or existing markets we could make use of to cut entry costs? (By the same token, can we review what agreements or trade preferences my business may be already using in case these are not successfully rolled over after Brexit).

19.

8.

What discussions have we had with existing customers, clients and suppliers to discuss different Brexit scenarios and whether contracts should be reviewed now or in the future? (This includes Incoterms, which clarify who is an importer or exporter, and assigns relevant financial responsibilities accordingly)

Have we considered how any intellectual property will continue to be protected in the EU after Brexit?

Does the business have any EC trademarks that will need to be converted into UK ones?

20.

Do we supply any services or have any training/ expertise that we could capitalise on to help other companies with their Brexit planning?

4.

5.

9.

Does my business or that of any of my clients benefit from EU funding – directly or indirectly?

10.

Has anyone in the company been assigned responsibility for Brexit maintenance/planning, and if not should someone be tasked with this?

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IoD Resources | IoD Brexit Guide August 2019

IoD Resources As a cross-sector business membership organization, the IoD strives to ensure that we represent and project the interests of directors from a wide variety of industries to the Government in relation to Brexit planning. We sit on numerous business councils and advisory groups chaired by the Prime Minister and other Ministers that meet regularly to discuss business’ priorities for the negotiations, as well as sitting on planning committees in relation to customs, regulation and immigration policy. A collection of our latest Brexit activity – which includes press releases, policy papers and factsheets – can be found on the Navigating Brexit hub of our website 1. In addition, we have a series of resources that IoD members can make use of in mapping out their Brexit preparation: • Information & Advisory Services (IAS). For more information, click here2 • Navigating Brexit event series – draws together experts to discuss negotiation updates and planning strategies for business. Summaries and footage on the IoD’s website.

• Bi-monthly Brexit surgery webinar hosted by the IoD’s Head of Europe and Trade Policy Allie Renison

Below is a selection of factsheets currently available via the IoD’s Information & Advisory Services: • What will happen to EU Nationals living and working in the UK as a result of Brexit4 • The potential VAT consequences of Brexit5 • The impact of Brexit on your business6 • Brexit – the implications for cyber security and data protection7

Business Information Service – including access to market research reports and forecasts, and information about employment law and doing business abroad. For more information, click here 8 .

Directors' Advisory Service – members can book a confidential one-to-one session for advice from experts including data protection solicitors, employment lawyers, career advisors, marketing specialists and more. For more information, click here 9.

• Legal Helpline • Tax Helpline • Monthly Policy Voice survey – where the IoD collects data on member views relating to Brexit to present to Government for the negotiations. If you're a member and you'd like to be involved, sign up here3

IoD members are eligible for a 20% discount for use of the Institute of Export's helpline. IoD members wishing to take advantage of this benefit should contact the IAS for details by phoning 020 7451 3100, emailing businessinfo@iod.com or via iod.com/ias10.

• IoD Regional branch Brexit events and roundtables

1 https://www.iod.com/news-campaigns/brexit 2 https://www.iod.com/information 3 https://www.iod.com/news/influence-government 4 https://www.iod.com/services/information-and-advice/resources-and-factsheets/details/Settled-Status--What-will-happen-to-EU-Nationals-living-and-working-in-the-UK-as-a-result-of-Brexit 5 https://www.iod.com/services/information-and-advice/resources-and-factsheets/details/vat-brexit 6 https://www.iod.com/services/information-and-advice/resources-and-factsheets/details/The-impact-of-Brexit-on-your-business 7 https://www.iod.com/services/information-and-advice/resources-and-factsheets/details/brexit-cyber-security-data-protection 8 www.iod.com/research 9 http://www.iod.com/advisory 10 https://www.iod.com/services/information-and-advice

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Glossary | IoD Brexit Guide August 2019

Glossary Future economic partnership (FEP):

TARif Intégré Communautaire (TARIC):

The term used by the UK Government to describe the long-term post-Brexit trading relationship between the UK and the EU.

A multilingual database administered by the EU which explains the measures relating to the EU customs tariff.

A 10-digit TARIC code must be used in customs and statistical declarations when trading with third countries.

Political Declaration: A statement that contains the framework for future UK-EU relations, accompanying and referred to in the Withdrawal Agreement. The political declaration is not legally binding but it is expected to serve the basis for negotiations on the future relationship.

Marketing authorisation (MA): An authorised status provided to pharmaceutical companies, provided by the European Medicines Agency upon successful application. The marketing authorisation holder (MAH) can market medicine and make these available to customers throughout the EU.

EU Withdrawal Bill: The piece of legislation designed to repeal the European Communities Act of 1972, which brought the UK into the European Economic Community (now the European Union).

Authorised Economic Operator (AEO): An internationally-recognised quality assurance status and a trusted trader scheme which indicates a company’s supply chain is secure and its customs procedures are compliant.

Single Market: The EU’s common market territory which removes regulatory barriers, allowing for the free movement of goods, capital, services and labour.

Certificate of Origin: A declaration which proves goods are wholly obtained, manufactured or processed in a particular country. It can be obtained from a chamber of commerce for a fee.

EU’s Customs Union: The EU’s common trade area whereby all participating states are subject to the Common Commercial Policy. Countries share the EU’s Common External Tariff and goods moving between states can move without additional customs checks.

Transports Internationaux Routiers (TIR) Carnet: An internationally-recognised permit which simplifies administrative procedures for road transport operators.

The EU’s Single Market means the TIR system has become obsolete among Member States.

Most-favoured nation (MFN): A non-discriminatory clause based on the idea that all countries should treat one another equally in international trade.

Binding Tariff Information (BTI): A ruling determined by the EU which provides legal certainty for the tariff classification of goods.

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Single Administrative Document (SAD): The main customs form used by businesses for trade to and from the EU. Traders must fill out the details of the form, including: what the goods are, where the goods are going, the commodity code of the goods and the Customs Procedure Code, which determines how customs authorities treat the goods upon import. The document is not necessary for intra-EU goods movements.

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Glossary | IoD Brexit Guide August 2019

Transit Accompanying Document (TAD or T1): A transit document which allows for goods originating outside of the EU to move freely within the EU. No customs duties or taxes are payable as the shipment moves from one country to the next within the European Union.

Economic Operator Registration and Identification (EORI) number: A number assigned by HMRC to importers and exporters used in the process of customs entry declarations and customs clearance for shipments travelling to and from the EU as well as countries outside of the EU.

Passporting: An EU regulation that allows a business within the European Economic Area to carry out activities in another EEA state without needing further authorization.

MiFID (Markets in Financial Instruments Directive) II: An EU regulation designed to increase competition, consumer protection and transparency into the trading of all asset classes. It came into effect in January 2018.

Council of Europe Convention on Transfrontier Television: An EU treaty allowing for the free circulation of transfrontier television programmes.

VAT Mini One Stop Stop (MOSS): An EU-administered way of paying VAT in those cases where a business supplies digital services to other EU countries.

Common Travel Area (CTA): A special travel zone established in 1923 comprising the UK and Northern Ireland, Ireland, the Isle of Man and the Channel Islands. Both the UK and EU have committed publicly to the preservation of the area.

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Index of useful links | IoD Brexit Guide August 2019

Index of useful links Official Government papers and Brexit negotiation documents: The Withdrawal Agreement agreed at political level on 19 March 2018: https://ec.europa.eu/commission/sites/beta-political/files/ draft_agreement_coloured.pdf Guidelines adopted by the European Council on 23 March 2018 for negotiations on the future relationship: http://www.consilium.europa.eu/media/33458/23-eucoart50-guidelines.pdf UK Government's paper on The Future Relationship between the United Kingdom and the European Union – otherwise known as the 'Chequers' document – published 12 July 2018: https://assets.publishing.service.gov.uk/government/ uploads/system/uploads/attachment_data/file/725288/ The_future_relationship_between_the_United_Kingdom_ and_the_European_Union.pdf

Guidance for traders: UK Government EU Exit Business Campaign: https://euexitbusiness.campaign.gov.uk/ UK Government Sector Primers on preparing for no-deal: • Steel: https://www.gov.uk/guidance/steel-and-other-metalmanufacturing-and-preparing-for-eu-exit • Chemicals: https://www.gov.uk/guidance/the-chemicals-sector-andpreparing-for-eu-exit • Professional & Business Services: https://www.gov.uk/guidance/the-professional-andbusiness-services-sector-and-preparing-for-eu-exit • Electronics, Machinery & Parts: https://www.gov.uk/guidance/the-electronicsmachinery-and-parts-sector-and-preparing-for-eu-exit • Space Sector: https://www.gov.uk/guidance/the-space-sector-andpreparing-for-eu-exit • Consumer Goods: https://www.gov.uk/guidance/the-consumer-goodssector-and-preparing-for-eu-exit • Automotive: https://www.gov.uk/guidance/the-automotive-sectorand-preparing-for-eu-exit • Aerospace: https://www.gov.uk/guidance/the-aerospace-sectorand-preparing-for-eu-exit • Retail: https://www.gov.uk/guidance/the-retail-sector-andpreparing-for-eu-exit • Oil and Gas Production: https://www.gov.uk/guidance/oil-and-gas-productionand-preparing-for-eu-exit

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Index of useful links | IoD Brexit Guide August 2019

• Gas Markets: https://www.gov.uk/guidance/gas-markets-andpreparing-for-eu-exit • Electricity incl. Renewables: https://www.gov.uk/guidance/the-electricity-sector-andpreparing-for-eu-exit • Research & Innovation: https://www.gov.uk/guidance/the-science-research-andinnovation-sector-and-preparing-for-a-no-deal-eu-exit • Construction and Housing: https://www.gov.uk/guidance/the-construction-sectorand-preparing-for-eu-exit • Nuclear: https://www.gov.uk/guidance/the-nuclear-sector-andpreparing-for-eu-exit • Parcel Delivery Services: https://www.gov.uk/guidance/parcel-delivery-servicesand-preparing-for-eu-exit • Pharma and Medical Devices: https://www.gov.uk/guidance/the-life-sciences-sectorand-preparing-for-eu-exit UK Government Triage tool (answer seven questions about your business to see guidance pages relevant to you): https://www.gov.uk/business-uk-leaving-eu

Guidance from HM Revenue & Customs on rules of origin for imported and exported goods and help identifying which qualify for lesser customs duty: https://www.gov.uk/guidance/rules-of-origin Guidance from the European Commission on how to apply for a BTI decision: https://ec.europa.eu/taxation_customs/business/ calculation-customs-duties/what-is-common-customstariff/binding-tariff-information-bti-apply_en The European Commission’s TARIC database which helps traders to determine the level of customs duty their products would be subject to upon importation to the EU as a third country: http://ec.europa.eu/taxation_customs/dds2/taric/taric_ consultation.jsp?Lang=en Guidance from the European Commission on its Economic Partnership Agreements including links to guidance on the associated rules of origin: http://trade.ec.europa.eu/tradehelp/list-arrangements-andrules-origin Guidance from the European Commission on nonpreferential rules of origin rates that apply to goods being imported into the EU under standard MFN tariff rates: https://ec.europa.eu/taxation_customs/business/ calculation-customs-duties/rules-origin/nonpreferentialorigin/introduction_en

No-deal Brexit preparedness notices published by the European Commission: https://ec.europa.eu/info/brexit/brexit-preparedness/ preparedness-notices_en

Guidance from the European Commission to help the banking and finance sectors prepare in the event of a no-deal scenario: https://ec.europa.eu/info/publications/180208-noticesstakeholders-withdrawal-uk-banking-and-finance_en

No-deal Brexit technical notices published by the UK Government: https://www.gov.uk/government/collections/how-toprepare-if-the-uk-leaves-the-eu-with-no-deal

Guidance from the World Trade Organisation about the EU’s MFN tariff rates and related quotas: https://www.wto.org/english/tratop_e/tariffs_e/tariff_ data_e.htm

Guidance from HM Revenue & Customs on how to classify imports and exports using the UK Trade Tariff: https://www.gov.uk/guidance/classification-of-goods

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National Brexit information in Member States Guidance from the World Customs Organisation on the process of accumulation / cumulation of rules of origin provisions thereby broadening the definition of originating products: http://www.wcoomd.org/en/topics/origin/instrument-andtools/comparative-study-on-preferential-rules-of-origin/ specific-topics/study-topics/cum.aspx Guidance from the World Customs Organisation on rules of origin including the distinctions between preferential and non-preferential rules of origin: http://www.wcoomd.org/-/media/wco/public/global/pdf/ topics/origin/instruments-and-tools/guidelines/guidelineson-certification-endorsed-july-2014-en.pdf?db=web Guidance from the British Standards Institution about the impact of Brexit on regulated product conformity assessment: https://www.bsigroup.com/LocalFiles/en-GB/Brexit/ Brexit-product-conformity.pdf

You can find links to official guidance in different EU Member States here: https://ec.europa.eu/info/brexit/brexit-preparedness/ national-brexit-information-member-states_en The content of these sites does not reflect the official opinion of the European Union. Responsibility for the information and views expressed therein lies entirely with their authors.

Alternatively, you can use the collapsed list below:

Austria • Austrian Federal Chancellery (German) https://www.bundeskanzleramt.gv.at/brexit • Austrian Federal Chancellery (English): https://www.federal-chancellery.gv.at/brexit

Guidance from the European Medicines Agency for MAHs about the impact of Brexit on medicinal products for human and veterinary use: http://www.ema.europa.eu/docs/en_GB/document_library/ Regulatory_and_procedural_guideline/2017/11/ WC500239369.pdf

Belgium

Guidance from the European Chemicals Agency to help the chemicals sector prepare in the event of a no-deal scenario: https://echa.europa.eu/advice-to-companies-q-as/general

• Customs/Excise: https://finances.belgium.be/fr/douanes_accises/ entreprises/brexit

Guidance on intellectual property rights post-Brexit, including a list of what has been agreed so far: https://academic.oup.com/jiplp/advance-article/ doi/10.1093/jiplp/jpy075/5033029

• Economy: https://economie.fgov.be/fr/themes/entreprises/brexit

Guidance on intellectual property rights post-Brexit, including practical steps businesses should take: https://www.slaughterandmay.com/media/2536734/ brexit-essentials-ip-rights-post-brexit.pdf

Federal government • Federal Poral: https://www.belgium.be/en/brexit

• Labour/Employment: http://www.emploi.belgique.be/lebrexit/ • Social Security: https://socialsecurity.belgium.be/fr/activitesinternationales/brexit Federal entities • Flanders (for businesses): https://www.flandersinvestmentandtrade.com/export/ internationaal/dossiers/brexit

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• Flanders (for citizens): https://www.vlaanderen.be/nl/economie-enondernemen/vragen-over-brexit • Wallonia: http://www.awex-export.be/fr/marches-et-secteurs/ royaume-uni/brexit

Cyprus • National Brexit Platform https://brexit.com.cy/en

Czech Republic

• Wallonia/Brussels: http://gouvernement.cfwb.be/home/presse--actualites/ publications/brexit--quels-impacts-pour-lesfrancophones-et-les-competences-de-la-federationwallonie-bruxelles--le-gouvernement-fait-le-point.html

• Government office: https://www.vlada.cz/cz/evropske-zalezitosti/Brexit/

• Brussels: http://invest-export.brussels/fr_FR/-/le-brexit-et-lesentreprises-bruxelloises

• Ministry of Trade and Industry's toolbox: https://www.mpo.cz/cz/zahranicni-obchod/brexit/ default.htm

Bulgaria

• Ministry of Foreign Affairs (consular services): https://www.mzv.cz/london/cz/konzularni_a_vizove_ informace/brexit/index.html

• Bulgarian Embassy in London: http://bulgarianembassy-london.org/brexit/ • The Government adopted on 30.01.2019 two Action Plans, one on the implementation of the Withdrawal Agreement and one for the no-deal scenario: https://www.bnt.bg/en/a/bulgaria-adopted-an-actionplan-in-the-event-of-no-deal-brexit • Action plan in case of deal: https://www.mfa.bg/upload/35044/План за действие със Споразумение-последен.docx • Action plan in case of no deal: https://www.mfa.bg/upload/35043/План за действие без споразумение-последен.docx

Croatia • Ministry of Finance (Customs): https://carina.gov.hr/vijesti/povlacenje-ujedinjenogkraljevstva-iz-clanstva-eu-brexit/6356 • Ministry of Foreign and European Affairs: http://www.mvep.hr/hr/ostalo/brexit/ • Ministry of the Interior: https://mup.gov.hr/vijesti/information-concerning-thefuture-relations-between-the-united-kingdom-and-theeuropean-union/283273

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• Interior Ministry: https://www.mvcr.cz/clanek/brexit.aspx

• Customs Authority: https://www.celnisprava.cz/cz/Stranky/INFORMACE-OVYSTOUPEN%C3%8D-SPOJEN%C3%89HOKR%C3%81LOVSTV%C3%8D-VELK%C3%89BRIT%C3%81NIE-A-SEVERN%C3%8DHO-IRSKA-ZEVROPSK%C3%89-UNIE.aspx • Businessinfo.cz Portal: https://www.businessinfo.cz/cs/clanky/special-brexitocima-exporteru-81706.html

Denmark • Danish government’s central Brexit and preparedness website: http://um.dk/da/Udenrigspolitik/brexit/ • Citizens’ rights: http://um.dk/en/travel-and-residence/brexit • Business checklist: https://startvaekst.virk.dk/brexit-tjekliste • Veterinary and Food administration – information to businesses: https://www.foedevarestyrelsen.dk/brexit/Sider/default. aspx

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Index of useful links | IoD Brexit Guide August 2019

Estonia

Finland

Ministry of Foreign Affairs

Prime Minister's Office

• What do you need to know with regard to Brexit? https://vm.ee/en/what-do-you-need-know-regard-brexit

• Tietoa brexitistä: https://vnk.fi/tietoa-brexitista

• Mida on vaja teada seoses Brexitiga? https://vm.ee/et/tegevused-eesmargid/mida-vaja-teadaseoses-brexitiga

• Information about Brexit: https://vnk.fi/en/information-about-brexit

• Estonian Embassy in London: https://london.mfa.ee/et/events/kusimused-ja-vastusedseoses-brexitiga/ • Ministry of Interior (Estonian) https://www.siseministeerium.ee/et/eesmark-tegevused/ kodakondsus-ja-ranne/brexit • Ministry of Interior (English) https://www.siseministeerium.ee/en/activities/ citizenship-and-migration/brexit • Taxation (Estonian) https://www.emta.ee/et/ariklient/tulu-kulu-kaive-kasum/ kuidas-muutub-maksustamine-kui-uhendkuningriikastub-valja-euroopa • Taxation (English) https://www.emta.ee/eng/business-client/incomeexpenses-supply-profit/how-taxation-rules-will-changeafter-withdrawal-united • Customs (Estonian) https://www.emta.ee/et/ariklient/toll-kaubavahetus/ brexiti-moju-tollivormistusele-ja-kaubavahetuseleuhendkuningriigiga

• Information om brexit: https://vnk.fi/sv/information-om-brexit

France • Portail internet du gouvernement: https://brexit.gouv.fr/sites/brexit/accueil.html

Germany • Government Brexit page: https://www.bundesregierung.de/breg-de/themen/ europa/brexit • Federal Foreign Office: https://www.auswaertiges-amt.de/de/aussenpolitik/ europa/Brexit/brexitvorbereitungenbundesregierung/2153016

Greece • Government website: https://brexit.gov.gr/

• Customs (English) https://www.emta.ee/eng/business-client/customstrade-goods/brexit-and-its-effects-customs-clearanceand-trade-united

Hungary

• Ministry of Economic Affairs and Communications: https://www.mkm.ee/et/brexit?fbclid=IwAR2smWEC75L EQzQ2pv3uCEuOwF3gAhU3zrNX-8I5P2_ pkxuiOIzNR6TxgJI

• Hungarian Embassy in London: https://eu.kormany.hu/brexit

• Hungarian Brexit website: http://eu.kormany.hu/brexit

• Brexittel kapcsolatos tájékoztató: https://london.mfa.gov.hu/page/brexit-tajekoztato • Gyakran Ismétlődő Kérdések (GYIK): https://london.mfa.gov.hu/page/gyakran-ismetlodokerdesek

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Index of useful links | IoD Brexit Guide August 2019

Ireland

• Information for UK citizens living in Lithuania: https://vrm.lrv.lt/en/brexit-updated-2019-04-09

• Government Brexit website: http://gov.ie/brexit

• Department of Foreign Affairs and Trade: https://www.dfa.ie/brexit/

Luxembourg

Italy

• Citoyens: https://gouvernement.lu/fr/dossiers/2019/brexit.html

• Ministry of Foreign Affairs: https://www.esteri.it/mae/en/politica_estera/politica_ europea/dossier/brexit.html

Latvia • Ministry of Foreign Affairs: https://www.mfa.gov.lv/arpolitika/eiropas-savienibaarpolitika/brexit

Lithuania • Ministry of Foreign Affairs: http://urm.lt/default/lt/uzsienio-politika/uzsieniopolitikos-prioritetai/lietuva-europos-sajungoje/del-espilieciu-teisiu-jungtineje-karalysteje

• List of contacts for consultations to business sector (exporters and start-ups): https://www.verslilietuva.lt/analitika/brexit/konsultacijosbrexit-klausimais/ • Migration Information Centre "I Choose Lithuania": https://www.renkuosilietuva.lt/lt/brexit-informacija/ Hotlines: 8-800 22922 (calling within Lithuania) +44-8000-318521 (calling from UK) +370 525 14352 (calling from outside Lithuania)

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• Citoyens et entreprises: https://guichet.public.lu/fr/support/faq-brexit.html

Malta • Prime Minister’s office: https://www.gov.mt/en/Pages/brexitfactsheet.aspx • Deputy Prime Minister: https://deputyprimeminister.gov.mt/en/cpsu/Pages/ News/Brexit.aspx • Medicines Authority: http://www.medicinesauthority.gov.mt/brexit?l=1 • Customs: https://customs.gov.mt/bus/what-does-brexit-mean-formy-business-

Inquiries by email: rm@urm.lt

• Enterprise Lithuania: https://www.verslilietuva.lt/analitika/brexit/

Inquiries by email: brexit@vrm.lt

• Public services: https://publicservicecms.gov.mt/mt/Pages/ News/2016/20160628_FreephoneBrexit.aspx

Netherlands • Nederlands: http://www.rijksoverheid.nl/brexit • English: http://www.government.nl/Brexit • Ministry of justice: https://ind.nl/en/Pages/Brexit.aspx

Inquiries by email: mic@iom.lt

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Index of useful links | IoD Brexit Guide August 2019

• Government support for entrepreneurs: https://business.gov.nl/brexit/ • Brexitloket: https://www.brexitloket.nl/

Poland • Ministry of Entrepreneurship and Technology: https://www.biznes.gov.pl/pl/aktualnosci/brexit-jak-sieprzygotowac • Customs: https://www.podatki.gov.pl/clo/brexit/ • Excise duties: https://www.podatki.gov.pl/akcyza/wyjasnienia/ brexit-informacja-w-sprawie-opodatkowania-akcyzawyrobow-akcyzowych-i-samochodow-osobowych-wprzypadku-braku-umowy-wyjscia-tzw-twardy-brexit/ • General Veterinary Inspectorate: https://www.wetgiw.gov.pl/handel-eksport-import/ brexit---wazne-informacje

Portugal • Portal Diplomático do Ministério dos Negócios Estrangeiros - BrexitPlano de Preparação e Contingência do Governo Português para a Saída do Reino Unido da União Europeia: https://www.portaldiplomatico.mne.gov.pt/images/ noticias/Jan_2019/17012019_BREXIT_Plano_ Preparação_e_Contingência.PDF • Folheto_Brexit_Direitos de Residência_EN.PDF: https://www.portaldiplomatico.mne.gov.pt/images/pdf/ Folheto_Brexit_EN.PDF • Folheto_Brexit_Direitos de Residência_PT.PDF: https://www.portaldiplomatico.mne.gov.pt/images/pdf/ Folheto_Brexit_PT.PDF

• Página de Facebook do Consulado Geral de Portugal em Londres https://www.facebook.com/ConsuladoPortugalLondres-619176831526397/ • Página do Consulado Geral de Portugal em Manchester sobre o Brexit: https://www.manchester.consuladoportugal.mne.pt/pt/ viver-no-reino-unido/brexit • Portal das finanças sobre Brexit: http://info.portaldasfinancas.gov.pt/pt/apoio_ contribuinte/Brexit/Paginas/default.aspx • Página da Direção-Geral das Atividades Económicas do Ministério da Economia sobre o Brexit: http://www.dgae.gov.pt/brexit.aspx • Portugal IN: http://www.portugalin.gov.pt/ • Seminário AICEP – BREXIT: Oportunidades e Desafios para o setor Alimentar, Leiria, 17 de outubro de 2018: http://www.portugalglobal.pt/PT/Acoes/ SeminariosConferencias/Paginas/brexiit-portunidadesdesafios-para-o-setor-alimentar.aspx • Seminário AICEP – BREXIT: Oportunidades e Desafios para a fileira Moda, Leça da Palmeira, 18 de outubro de 2018 http://www.portugalglobal.pt/PT/Acoes/ SeminariosConferencias/Paginas/brexiit-portunidadesdesafios-paraa-fileira-moda.aspx • Apresentação do Estudo “Brexit – As consequências para a economia e as empresas portuguesas”, Lisboa, 31 de outubro: http://cip.org.pt/apresentacao-do-estudo-brexitprograma/ • Seminário AICEP – BREXIT: Oportunidades e Desafios para o setor Automóvel, Aveiro, 28 de novembro: http://www.portugalglobal.pt/PT/Acoes/ SeminariosConferencias/Paginas/brexiit-portunidadesdesafios-para-a-fileira-automovel.aspx

• Página do Consulado Geral de Portugal em Londres sobre o Brexi: http://www.cgportugalemlondres.com/brexit.html

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Index of useful links | IoD Brexit Guide August 2019

Romania

Spain

• Ministry of Foreign Affairs: http://www.mae.ro/brexit/pregatiri

• Spanish Government - Information to citizens and business (Spanish): http://www.lamoncloa.gob.es/brexit/Paginas/index.aspx

• Customs: http://www.customs.ro/info-publice/resurse-umane/ info-publice • Ministry for Business, Commerce and Entrepreneurship: http://www.imm.gov.ro/brexit-implicatiile-scenariului-nodeal/ • Ministry for Labour and Social Justice: http://www.mmuncii.ro/j33/index.php/ro/2014-domenii/ munca/mobilitatea-fortei-de-munca Governmental information campaign: "Romania in the context of the withdrawal of Great Britain from the European Union"

• Spanish Government - Information to citizens and business (English): http://www.lamoncloa.gob.es/lang/en/brexit/Paginas/ index.aspx

Sweden • Government Brexit preparedness website (Swedish): https://www.regeringen.se/regeringens-politik/brexit--storbritanniens-uttrade-ur-eu/ • Government Brexit preparedness website (English): https://www.government.se/government-policy/brexit/

• România în procesul Brexit: https://www.youtube.com/watch?v=1TW1N8Ix6k&feature=youtu.be • Spotul video realizat de MAE referitor la stadiul negocierilor privind ieșirea Marii Britanii din UE: https://www.youtube.com/watch?v= M3QMHZaQXrE&version=3&hl=en&fs=1&rel =0&ap=&fmt=18

Slovakia • Ministry of Foreign and European Affairs: https://www.mzv.sk/europske-zalezitosti/brexit

Slovenia • Government of the Republic of Slovenia: http://www.vlada.si/en/projects/the_united_kingdoms_ decision_to_leave_the_eu_brexit/

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IoD online resources

Author

IoD briefing: 'The Withdrawal Agreement: What does it mean and what next?': https://www.iod.com/news/news/articles/The-BrexitWithdrawal-Agreement-what-does-it-mean-and-what-next IoD Guidance on Government's Brexit 'no deal' technical notices: https://www.iod.com/news/navigating-brexit-for-business/ articles/iod-guidance-on-governments-brexit-no-dealtechnical-notices The IoD’s proposal for a partial customs arrangement with the EU covering all industrial goods and some limited processed agricultural goods: https://www.iod.com/customisingbrexit The IoD’s information and advice service hub for members: https://www.iod.com/services/information-and-advice The IoD’s Navigating Brexit hub detailing the Institute’s Brexit work and activities: https://www.iod.com/news-campaigns/brexit#tab-Events

Allie Renison Head of Europe and Trade Policy Allie leads the IoD’s work putting forward the members’ priorities for Brexit, and explores methods of expanding the UK’s global reach in trade and investment.

The IoD’s Legal Helpline service for its members: https://www.iod.com/services/information-and-advice/ legal-helpline The IoD’s Tax Helpline service for its members: https://www.iod.com/services/information-and-advice/ tax-helpline The IoD’s new Policy Voice hub: https://policyvoice.iod.com/hub The IoD’s list of upcoming events: https://www.iod.com/events-community/events The IoD’s latest campaigns and positions on Brexit: https://www.iod.com/news-campaigns/brexit

Claudia Catelin EU and Trade Analyst Claudia’s focus is on advancing IoD members’ interests in the areas of Brexit and international trade.

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Institute of Directors For further information on this report, please contact: Claudia Catelin EU and Trade Analyst +44 (0)20 7451 3282 claudia.catelin@iod.com

The Institute of Directors The IoD has been supporting businesses and the people who run them since 1903. As the UK’s longest running and leading business organisation, the IoD is dedicated to supporting its members, encouraging entrepreneurial activity and promoting responsible business practice for the benefit of the business community and society as a whole. iod.com

Training Events Networks Mentoring Research Influencing

Disclaimer: This guide has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You may wish to consult your own tax, legal and accounting advisors in respect of the subject matter of this guide.