Brexit – Update
As you will be aware, the UK is currently in a transitional period with the EU, due to end on 31St December 2020. No extensions to this period have yet been announced and the UK government is continuing to issue updates that will need to be consider from 2021 onwards.
This week we have seen two main updates from the UK Government.
Northern Ireland Protocol
The UK Government has published a “command paper” on its approach to the Northern Ireland Protocol, effective from 1 January 2021 until at least 2024. The Protocol intends to protect the Good Friday Agreement and is how this will be addressed in the UK leaving the EU.
The paper can be found here
The key announcements centre around:
- Unfettered access for Northern Ireland businesses to the rest of the UK;
- No tariffs on internal trade;
- No new customs infrastructure in Northern Ireland; and
- Customs declarations will be required on movements from GB to Northern Ireland.
International Trade Arrangements – Post Brexit
HMRC has recently released further details of the UK Global Tariff (“UKGT”) which will apply to the import of goods into the UK from 1 January 2021, at the end of the Brexit transition period.
The UK tariffs can be viewed here
There is likely to be much more detail published as we progress towards the end of the transitional period with the EU, but the government intends that the UK approach will aim to reduce current complexity with the EU system and also bring in cost savings. Whilst this publication provides some insight into the UK thinking, it does not take into account any future free trade deals that may be negotiated for the UK moving forward.
We are currently working through the detail on both of the above and will provide further updates in due course as the year progresses, but any immediate questions, please do get in touch.
