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According to updated guidance provided by HMRC, in order to maintain the UK’s biosecurity and food safety standards, all Products of Animal Origin (POAO) imported to the UK for human consumption must arrive at a point of entry with a designated Border Control Post (BCP) for the specific commodity. This includes POAO that have transited through the EU as EU BCP checks on those consignments will not be recognised by DEFRA. These new rules came into force on 8th April, however, shipments dispatched before this date will be allowed to arrive at any point of entry into GB as long as they have been checked at their first point of entry to the EU and evidence of clearance can be provided. A fee must be paid to have a consignment checked at a BCP. Please see the BCP fees table or contact the relevant BCP for information on the fee you will be charged. Find a designated BCP for your commodity here, and ensure that the importer has informed the relevant BCP of the good’s arrival using the IPAFFS pre-notification system in order to avoid delays and being charged an additional fee. Consignments that have undergone full animal and public health checks and have been cleared for circulation on the EU market, will continue to follow the phasing of import controls. Please find here more detail on the phasing of SPS controls for EU imports. Need further support? Visit our Brexit Hub Contact GMCC International Trade Team at exportbritain@gmchamber.co.uk

For many decades now, the UK has been in trade deficit, meaning the country imports more than it exports. Although Trade in Services has enjoyed a year-on-year growth and positive trade balance, our trade in goods, which still makes up most of the country’s trade remains negative. Recent statistics from ONS released in January 2021 indicated that exports and imports fell by 40.7% and 28.8% respectively – the biggest declines since these figures started being recorded; and yet the UK has embarked upon a journey of signing new trade agreements to ensure both UK exporters and Importers can continue to trade and capitalise on the opportunities the world has to offer. When companies think about exporting, many can only relate to the movement of goods. However, the UK is the second largest exporter of services in the world after the USA. One of our strongest exporting service sectors is Financial and Legal services. The UK exports a wide range of expertise ranging from manufacturing and engineering to fintech, education and more. So, whilst companies remain very much focused on adapting to the new way of trading with our most important economic bloc trading partner, the EU, the reality is that by 2050 most of the world’s GDP growth will be fuelled by developing and emerging markets; although it is also important to highlight that we will continue to develop strong commercial and investment ties with our neighbour markets. If you are a Micro or SME who has not considered exporting or has done so occasionally, take a look at why exporting can be a true catalyst for growing your business. Increasing your sales and your competitiveness By expanding your vision of the market, you will boost your sales potential and avoid saturated local market. An expanded market may allow you to increase your profits and expand your business. Additionally, by exporting you can be exposed to new ideas and marketing techniques, which can propel your business to a better position in order to increase competitiveness. Extending the products' lifecycle and selling excess production First, if your products are approaching the end of their life in the domestic market, you should know that there might be potential customers out of this market, so exporting would be a solution to continue selling your products. Moreover, excess production is also a good reason to export goods, avoiding deep discounts or the disposal of surplus products. Reducing vulnerability When you are no longer depending on sales within the domestic market, you will be better able to adapt to economic changes. In case of unfavourable economic conditions in the local market, the impact on your business activity might not be as significant if you are exporting to foreign countries. Benefits the UK economy In addition to increasing your profits, it helps the UK economy. In fact, UK companies, which export contribute to national productivity growth. Ready to Go Global but need some help? Take a look how the Chamber and our partners can help you in your exporting journey! Register for our free Bitesize Session New Rules: Export Basics this week - 8th of April, which looks at the processes involved in exporting a product from the UK. First time or occasional exporter seeking to grow through your exports and don’t know how ‘export ready’ you are? Complete our free international trade readiness assessment and receive a free report about your level of readiness. Want to attend some Export training and access some funding? Click here for more info. Need help writing your Export Plan? Why not use our Free Export Guide? Need help identifying your next export market and don’t know where to start? Check our Market Identification Service Check our wide range of international trade services here

In line with the changes brought by the UK’s exit from the EU, we are pleased to bring two new training courses to help traders continue trading and adapting to the new rules: Trading with Turkey Training Course - June 2021 When the UK was an EU Member State, the relationship with Turkey was governed by its trading agreement with the European Union. On 28th December 2020, the United Kingdom and Turkey signed their own Free Trade Agreement which came into place on 1st January 2021 once the UK officially left the EU. The way UK businesses have been shipping goods to and from Turkey is now subject to new rules and new processes. It is estimated that without a deal, 75% of Turkish exports to the UK would have been subject to tariffs, leading to losses amounting to an estimated $2.4bn in 2021. Our training course will provide you with the tools and knowledge on how to capitalise on this Trade Agreement - from Documentation to Import Tariffs and more. For more information and to book your place, click here Understanding Free Trade Agreements - June 2021 Trade relationships between the UK and many countries is governed by a set of rules covered in Free Trade Agreements. Since the UK left the European Union, the British government has been working on securing new trade deals or continuity agreement with its major trading partners. Trade agreements set out the rules that cover trade between two or more countries. They aim to make trading easier between those countries and they do this by reducing the restrictions on imports and exports between them. Our half day course will help companies understand the importance of Trade Agreements and how rules of origin will enable you to access worldwide markets on preferential or non-preferential basis. For more information and to book your place, click here

The Free Trade Agreement signed at the end of 2020 made very little mention of the impact of VAT on businesses trading within the EU. Zero Tariffs and Zero Quotas were the most pressing concerns for companies looking to see minimal disruption to their trading activities. However, the complexities of VAT legislation and application for businesses are a stark reminder that difficulties remain when trading both out of and with the UK. One of these difficulties relates to the concept known as VAT Triangulation, essentially a transaction and supply of goods where there are three or more EU member states involved and the supply chain is not as simple as 1,2,3. Most importantly, however, is that the UK is no longer able to benefit from the VAT Triangulation simplification offered by the EU, which will therefore result in the need for UK businesses to have to register for VAT purposes when making sales into the EU. If, however, all businesses to the transaction are established within the EU then cross border transactions within the EU may involve successive intra-EU supplies of goods involving three parties in three different Member States (MS) whereby there are two sales transactions, but one transport transaction. In other words, Company A (MS1) sells to Company B (MS2) who sells to Company C (MS3), but Company A supplies the goods directly to Company C. The goods which do not pass through MS2 are transported directly from MS1 to MS3. In this case, three different EU countries are involved in the sale transaction, but only two in the supply of the goods. These types of transactions are referred to as triangular transactions and, when they occur, an EU VAT simplification method can be applied. Without this simplification, the intermediate supplier, Company B would otherwise have to register for VAT in either MS1 or MS3. This simplification, therefore, dispenses with the need for multiple VAT registrations, which is a boon for businesses already overburdened by the increased admin and costs due to Brexit. The Simplification In order to minimise the paperwork and cash out lay at each stage of the sale, Article141 of EU VAT Directive 2006/112 provides that in triangulation transactions VAT is only due in MS 3, the country where the goods are received by the final buyer (Company C). Therefore, Company A issues an invoice without charging VAT to Company B, who in turns issues an invoice to Company C without charging VAT. The only cash that changes hands at each stage is the actual purchase amount. Businesses are thus saved from having to account for both input and output VAT in their local returns and it is the final customer, Company C, who must account for VAT in their local return under the reverse charge mechanism on the supply made to it by Company B. Condition of Application For the simplification to apply, Article141 holds that the following conditions need to be met: 1. There are three different parties who are VAT registered in three different Member States 2. The first supply/acquisition is made for the purpose of being on-sold 3. There is a single movement of the goods from MS1 to MS 3, i.e., bypassing MS2 4. The final customer, Customer C must be liable for the payment of the VAT in MS 3 If any of these conditions are not met, the simplification will not apply, and Company B will have to register for VAT in either MS 1 or MS 2 and account for VAT accordingly. Conclusion Triangulation is a VAT simplification method that removes the burden of multiple VAT registrations. It is therefore important in the extent that it applies to EU VAT registered businesses, who can take advantage of it to simplify their intra-EU VAT transaction obligations. Co-authored by: Marc Sevitz and Simeon Adebolajo, VAT IT Need Help Navigating through the complexities of VAT? Our Strategic Partners VAT IT are hosting a free business clinic on the 7th, 8th &9th April. Book your place here Join our free Bitesize session on VAT Triangulation in a Post-Brexit World, 3rd June 2021 Want to know what other Bitesize sessions and courses we have coming up? Click here

Faisal Islam, Economics Editor at the BBC, reported recently that the US has warned the UK about putting tariffs of up to 25% on a number of UK goods in response to the tax the UK has introduced for Tech firms. Companies such as Google, Amazon and Facebook could see a 2% tax on their UK revenues. The US Administration has calculated this new tax will raise over £235.8m. The sectors which could affect British companies include clothing, footwear, ceramics, beauty products and furniture. The Office of the United States Trade Representative (USTR) published a list of products to consult on for potential tariff action and the USTR’s notice can be accessed here As expected, some sector trade associations in the UK have already expressed their disappointment over this prospect and are monitoring closely these developments. The UK Government has also responded and said the UK will consider its options to defend UK’s interests and industry. Potentially affected by these developments? Whether or not you are a Chamber member, we want to hear from you. We will be monitoring the situation and working closely with the Department of International Trade providing feedback directly from the business community. Send us your views at exportbritain@gmchamber.co.uk Sources: BBC, Institute of Exports and Int. Trade

The Department for International Trade (DIT) is setting up four major new trade and investment hubs in Scotland, Wales, Northern Ireland, and the North of England. The hubs will be established in Edinburgh, Cardiff, Belfast and a new second major DIT site in Darlington, as part of the government’s wider ‘levelling up’ agenda to boost exports and spread the trade activity throughout the country; as well as taking advantage from possible future free trade agreements with the US, Australia, New Zealand and CPTPP. A team of experts will be appointed at each hub to provide business with advice and support in order to help them to maximize their export potential and access major overseas trade markets. The hubs will also support the launch of high-profile export campaigns that will seek to maximise export potential and boost UK enterprise in global markets. Export firms will also have a direct feed into UK trade policy and make the most of opportunities in fast-growing markets. International Trade Secretary Liz Truss said: “I’m determined to use UK trade policy to benefit every part of the UK. These trade and investment hubs will help this country to an export and jobs-led recovery. “They will mean we can channel investment into all corners of the country, and that exporters – whether they’re selling Scotch beef, Welsh Lamb or cars made in the North of England – have access to the expertise they need to sell into the fastest growing markets.” Last year, goods exports from the North of England, Scotland, Wales, and Northern Ireland were £98. 4bn. The four hubs are expected to have 550 members of staff by 2025, with an ambition to increase this to 750 staff by 2030. Government-led research shows exports support 6.5m jobs across the UK, 74% of which are outside London. The report also shows that jobs directly and indirectly supported by exports pay around 7% higher than the national median, with Office for National Statistics estimating that goods exporting businesses are also 21% more productive. Sources: GOV.UK Do you want to start your export journey? Start by completing our free International Trade Readiness Assessment to know where your business stands. Make the most of our Market Identification Service and choose the right market from the start. Find out more about our Market Entry Services Register to attend our International Trade training courses including Understanding Exporting and Export Documentation.

Subrahmaniam Krishnan-Harihara, Head of Research at Greater Manchester Chamber of Commerce, presented the latest QES results last week. The QES continues to show the impact of Brexit on international trade as traders continue to face challenges in the ability to move goods seamlessly across the border. International trade in services with EU partners has also been impacted, as more companies are realising the restrictions they may now face when delivering services in the EU – from a business visit to short or longer-term assignments. The survey showed that nearly 80% of internationally active respondents reported that they were having difficulties in fulfilling the new paperwork and compliance requirements imposed by the EU–UK Trade and Cooperation Agreement. We know it is not only Brexit that has had an impact and many traders are still dealing with the impact of COVID19. According to HMRC, between 2019 and 2020, the North West region saw a decline of 11% and 13% in exports and imports of goods respectively. The largest contractions in exports registered in markets such as North America (24%), Sub-Saharan Africa (21%), and 12% to the EU; and in relation to Imports, Eastern Europe (excluding EU) dropped the most with a 31% contraction, followed by Middle East & North Africa (26%) and Sub-Saharan Africa (19%). Imports from the EU fell by 16%. The ONS also reported the largest drop in both exports and imports in Q1 2021 since records began. Most companies did stockpile before the end of 2020 and many also consciously decided to stop trading until they had a better understanding of the new requirements. Since then, we have seen trade to start to pick-up, but companies are facing various issues at the border. The Chamber Team has dealt with more than 500 queries since December last year, supporting businesses through a number of challenges – from rules of origin to new requirements for exporting and importing such as customs declarations to triangular trade and VAT to mention but a few. The Chamber has also been in regular contact with HMRC and DIT providing feedback on these issues, and we were pleased to hear about the new £20 million funding available to SMEs aimed at helping them adapt to the new rules on trading with the EU. Companies can apply now and will be able to get up to £2,000 to cover the costs of training and professional services. Need Help with the New Rules? Chamber has put together some packages so companies can access our courses and bespoke advice consultancy services. For more information, click here Join our free Bitesize sessions touching on Export, Import, Updates on New UK Border Control and NI Protocol, VAT and more. Book now Need to speak to someone? Call 0161 393 4321 or email benefits@gmchamber.co.uk

After the second and third national lockdowns, the success of the vaccination programme and expectations about end of the Covid-19 restrictions have contributed to a degree of cautious optimism amongst business owners, according to the findings of this quarter's Economic Survey conducted by Greater Manchester Chamber of Commerce. The QES based composite indicator for our city region, the Greater Manchester Index™, moved into positive territory for the first time since April 2020 as all three sector groups – services, manufacturing and construction show some signs of recovery after the economic shock of 2020. The survey of nearly 300 businesses reveals that customer demand has increased in this quarter and improved businesses confidence. The Greater Manchester Index™ now stands at 6.1, an increase of 24 points from the previous quarter’s results. Led by construction sector activity, current sales and advance orders from domestic customers increased relative to Q4 2020 but some clear divergence is emerging in the performance of different sectors. Whilst nearly half of construction sector respondents reported improved sales, under a third of businesses from manufacturing and services reported that their sales to UK customers had increased in this quarter. As against this, a third of manufacturing sector respondents and 40% of service sector respondents reported decreases in sales in this quarter. Services sectors account for well over 80% of the city region’s economy, which means a further upturn is needed in services for the overall economy to start growing again. The balances relating to international trade reflect the impact Brexit has had on the ability to move goods seamlessly across the border. International trade in services with EU partners has also been impacted. Nearly 80% of internationally active respondents reported that they were having difficulties in fulfilling the new paperwork and compliance requirements imposed by the EU–UK Trade and Cooperation Agreement. Subrahmaniam Krishnan-Harihara, Head of Research at Greater Manchester Chamber of Commerce, said: “It will be a relief to both Greater Manchester’s business community and political leadership that a sense of optimism is returning after the historic economic collapse in 2020. After a long period of Covid-19 related restrictions, Greater Manchester’s business community seems buoyed by the Prime Minister’s roadmap out of lockdown and the extension of Covid-19 support measures that the Chancellor announced in the Spring Budget. This, of course, does not mean that we are ‘out of the woods’ yet. The services sector, which includes the worst affected sectors of retail, hospitality and leisure is still suffering and recovery from COVID-19 is going to be slow and difficult.” “The survey results also showed that cash flow positions are still negative for all three sector groups, which means that more businesses reported a reduction rather than an improvement. Capacity utilisation also remains low with only 28% of businesses reporting that they are operating near full capacity. Without a substantial improvement in customer demand, businesses will not be able to raise revenues, cash reserves and operational capacity. Nonetheless, business confidence has improved considerably since December 2020. “It is now incumbent upon the government to build on the current improvement and optimism by providing absolute clarity on its roadmap out of lockdown so that firms, especially those in the worst affected sectors, can buy in new stock or make plans for how they will operate. The roots of recovery that we are seeing now are too precious to be squandered away. Source: GMCC Research Team

The European Union launched legal action against the British Government over its decision to unilaterally postpone new post-Brexit checks on goods coming into Northern Ireland. On March 3, the UK decided unilaterally to delay the full application of the Protocol on Ireland and Northern Ireland concerning the movement of goods and pet travel from Great Britain to Northern Ireland. The European Commission sent Britain two letters on Monday launching the legal action. Firstly, a formal notice for breaching the substantive provisions of the Protocol on Ireland and Northern Ireland, as well as the good faith obligation under the Withdrawal Agreement. Secondly, a political letter to the U.K.'s Brexit minister David Frost, "calling on the UK government to rectify and refrain from putting into practice" the announced extension of the grace period for border checks between Northern Ireland and the British mainland. In a statement, the EU's co-chair of the Joint Committee, Vice-President Maroš Šefčovič, said: “The Protocol on Ireland and Northern Ireland is the only way to protect the Good Friday (Belfast) Agreement and to preserve peace and stability, while avoiding a hard border on the island of Ireland and maintaining the integrity of the EU single market. The EU and the UK agreed the Protocol together. We are also bound to implement it together. Unilateral decisions and international law violations by the UK defeat its very purpose and undermine trust between us. The UK must properly implement it if we are to achieve our objectives. That is why we are launching legal action today. I do hope that through the collaborative, pragmatic and constructive spirit that has prevailed in our work so far on implementing the Withdrawal Agreement, we can solve these issues in the Joint Committee without recourse to further legal means.”. The UK, for its part, says extending a grace period for relaxed rules on goods arriving in Northern Ireland from Great Britain is not a breach, and the decision to act unilaterally is justified by the fact that a joint action would be too slow on the grounds that the grace period expires at the end of March. This political letter allows the two sides to hold mediation talks in the EU-UK join Committee, and Brussels’ aim is that the EU and UK quickly restart talks on resolving problems on the ground. On the other hand, the UK has been given one month to submit its observations to the letter of formal notice. If the UK fails to enter consultations in the Joint Committee in good faith, with the aim of reaching a mutually agreed solution by the end of this month, the EU may launch a dispute settlement procedure under provisions in the Brexit Withdrawal Agreement that could in turn lead to British goods being hit with tariffs if the UK refused to comply with any decision. Are you currently trading via Northern Ireland? Let us help! GMCC Bitesize Session - New Rules: UK Border Control & NI Protocol Webinar : Join us on 22nd April 2021 as we bring experts to provide insights into the current arrangements. It is free for members and non-members. Click here to register. Check the NI Customs Academy for useful resources, webinars and guides. Need further support? please email us at benefits@gmchamber.co.uk or call 0161 393 4321. Our in-house team supported via a network of associates are at hand to help. Source: Financial Times, Politico, and European Commission

On Monday 15th March, the government opened the SME’s Brexit Support Fund for applications. Businesses can now apply for a grant of up to £2,000 to pay for practical support that helps them adapt to new customs and tax rules with the European Union. With about £20 million available, UK businesses can use the grant for training and/or professional advice: The training grant can be used to receive training on how to complete customs declarations, how to manage customs processes and use customs software and systems and any other import and export related aspects including VAT, rules of origin, licences, etc. The grant for professional advice can be used to receive consultancy advice to enable you to meet your customs, excise, import VAT or safety and security declaration requirements with HMRC. To be eligible, businesses must have been established in the UK for at least 12 months and must import or export goods between Great Britain and the EU (or Northern Ireland). To find out more about the eligibility criteria, please see here. Since we left the European Union, our International Trade team has been supporting businesses adapt to the new rules. To help you make the best use of the grant, we have created packages to allow you to access training and consultancy at best value. To find out more about training available, please see here. Our packages can be found on our website here. For more information on consultancy, please see here. If you have any questions about this, please email the team at exportbritain@gmchamber.co.uk or call 0161 393 4317.

With the UK leaving the EU and now acting as an independent nation signing new trade deals to enable UK exporters and importers to access new markets across the world, it is more important for traders to understand in more depth what rules of origin are and how these can enable either preferential or non-preferential access in those markets based on whether those goods meet their specific thresholds percentages for content. Most of the current queries our International Trade team is receiving from traders revolved about whether their goods meet these rules and thus if they can claim preferential duty rates. The reality is that Rules of Origin may vary from Trade Agreement to Trade Agreement as well as the principle of cumulation, which also play an important role in all this. So take a look at some of the basics: What are Rules of Origin? Origin is essentially the economic nationality of goods. All internationally traded goods are required to have an origin when declared to customs at the point of import. Rules of origin enable to establish the origin of the goods. There are two types of origin: preferential and non-preferential. Preferential Origin Preferential origin grant members access to domestic market at preferential tariffs. Thus, rules of origin help to determine whether goods qualify for the nil or reduced tariffs. They are a set of criteria that the goods need to comply with to be considered originating in the territory of the trade agreement when exported to an FTA partner. These rules are based on the HS Classification and are in most cases specific to a product. Rules of origin are negotiated separately for every FTA and are attached to the main agreement in the form of a protocol or an annex on product specific rules of origin. Therefore, rules of origin vary significantly across agreements. How can you determine the origin of your goods? You can use one of the following options: a) Wholly obtained products are goods obtained entirely in the territory of an FTA party without the addition of any non-originating materials. In some agreements, there is also a wholly produced category goods which are produced or manufactured exclusively from wholly obtained inputs and are treated a wholly obtained products. b) Substantial transformation is a type of rule of origin that requires goods to undergo a certain process in order to be considered originating in a given country. This transformation can be expressed in three different ways. Change in tariff classification: a rule that requires non-originating materials to have undergone a change in HS Classification in order to obtain originating status. Value added calculations: a rule that requires a certain percentage of the total value of the final product to be added in the FTA territory. Specific processing: a rule that requires that a specific processing be undertaken at a particular stage of the production process. The three types of substantial transformation can be used in combination with one another. Additionally, different types of exceptions and allowances can be used within each of the three types. In addition to the product specific rules, each agreement also includes general provisions related to the administration of rules of origin and claiming preferential tariffs. These rules cover additional relaxations such as cumulation or de-minimis as well as administrative provisions around the proof of preferential origin. Non-preferential Origin Non-preferential origin applies to goods traded between countries whether there is or not a trade agreement in place, and whilst it does not lead to a reduction in tariffs, it is used by importing countries to safeguard their local industry and also for monitoring purposes such as quotas, anti-dumping and countervailing duties. It is also used for trade statistics and for the purpose of labelling. Non-preferential rules of origin are decided by each country and are based on two criteria. a) Wholly obtained – similarly to preferential rules, wholly obtained products are goods obtained entirely in the territory of one country without the addition of any non-originating materials. b) Last substantial transformation – in a case where more than one country was involved in the production of the goods, the country where the last substantial transformation took place determines the origin of the goods. If you would like to obtain product specific guidance on rules of origin you may refer to Gov.uk. Additionally, for more information from the EU perspective refer to the Access to Markets database. Proof of Origin Whether you are or not claiming preferential market access, the trader is responsible for keeping evidence about the origin of their goods. Need help understanding Rules of Origin in more detail? Join our next Rules of Origin: Preferential and Non-preferential training course that will be delivered on the 9th of February. We still have places available! Need Certificates of Origin ( UK / Arab) or UK EUR1s as a way to prove origin? Check our Export docs services here Need more guidance on Rules of Origin, check our brand new section on RoO in our Hub as we compiled a series of useful guidance links including the new EU-UK TCA. Have more specific questions regarding your business model? Why not used our Bespoke Service? Sources: GMCC, Institute for Government, UK Government guidance

On 11th March, Cabinet Office Minister Michael Gove announced in a written statement, that import controls have been delayed at the British borders for at least six months in order to provide businesses with more time to prepare for the new regulations. This has come as a response to businesses’ concerns related to the new rules and Covid-19. "We have listened to businesses who have made a strong case that they need more time to prepare”, he said. The delays announced in the government’s revised timetable, will impact key areas such as checks on Agri-food and Feed (delayed until 1st October 2021), Entry Safety and Security (ENS) declarations, and checks on live animals and plant products (delayed until March 2022). Customs Declarations Businesses currently have 6 months after the goods have been imported to submit the full import customs declaration, up until 1st July 2021. Import declarations will continue to be required, however, the deferred declaration scheme will be extended until 1st January 2022. From 1st January 2022 businesses will have to submit a full import customs declaration prior to the goods arriving in the UK. Business Concerns Andrew Opie, policy director of food and sustainability at the British Retail Consortium, told the Guardian last week that the delays had come “in the nick of time”. He emphasised: “Until the infrastructure is in place, with IT systems ready and established processes for checks and paperwork, it would be foolhardy to introduce full requirements for export health certificate documentation, pre-notification of imports, physical checks and more”. Business imports and exports have been impacted significantly by the new regulation since January 2021. The Manufacturing organisation Make UK said, “almost three-quarters (74%) of companies have experienced or are experiencing difficulties in the past 3 months”. Among these, “over half (51%) say this has led to increased costs and over a third (35%) have lost revenue with one in five losing potential business”. Make UK’s CEO Stephen Phipson also raised concerns: “The government needs to move smooth out difficulties at UK ports so that shipments can easily be delivered. We are encouraged that the government is already working to train more high-quality customs officials and to give more assistance with customs paperwork, but this needs to be driven forward at speed to give the quickest possible assistance to British companies already struggling to get back to normal as trade recovers from the Covid pandemic”. Government support Michael Gove said that the government would "continue to engage extensively with businesses to support them to adjust to the new requirements already in place and to prepare for the new requirements”. In the next couple months, it will be critical for border and business to take action, in order to be ready for the new timetable. GMCC Support The Greater Manchester Chamber of Commerce is also committed to helping businesses overcome the current challenges, and thus we are offering the services bellow: Customs Declarations Brokerage Services “How to do Customs Declarations” Training Course (25th March) GMCC Bitesize session on New UK Border Control & NI Protocol – updates following recent news (22nd April) Need a bespoke training and/or advice? Get in touch with our team. For further information please contact the team at exportbritain@gmchamber.co.uk Sources: Make UK and The Guardian

According to the European Commission, “a Customs Declaration is an official document that lists and gives details of goods that are being imported or exported.” Before Brexit, declarations only needed to be completed for transactions outside of the EU, however, despite having signed a Foreign Trade Agreement, Customs Declarations are now a new requirement when exporting to and importing from the EU. As a result, the number of Customs Declarations processed in the UK has been increasing. It is forecasted that the increase will be from 50 million annually to nearly 270 million in the future, according to the National Audit Office. There are two options to get your Customs Declarations completed: In-House – You can do your own Customs Declarations either using the Export National System or purchasing specialised customs software. However, you must ensure that your staff is fully knowledgeable to be able to do this accurately and efficiently. Through a customs intermediary – A customs intermediary can be a freight forwarder, a fast parcel operator or a customs agent/broker such as the Greater Manchester Chamber of Commerce. These intermediaries can act either directly or indirectly on your behalf. However, as a trader you are always responsible for providing full and correct information, and bear liability for any errors. It is important for companies to be knowledgeable in Customs Declarations to ensure compliance. In order to do this, you may wish to train your staff on a Customs Declarations training course or other relevant courses such as Incoterms, export procedures, and Rules of Origin. HMRC has launched a flexible training grant of up to £1,000, on a first come first served basis, which is open to applications until the 31st of January 2021. For more information on how to apply, please click here. Finally, for more information on the Chamber’s Customs Declaration’s service please click here.

New Rules of Origin Resources and Guides Following our constant feedback to UK Government on how many UK SMEs continue to struggle understanding how rules of origin work, specially under the framework of the EU-UK Trade Cooperation Agreement, we have decided to create a brand-new section in our Brexit Hub dedicated to Rules of Origin compiling in one place all the relevant guidance from both the UK Government and EU. Please take a look at the recent guides and resources produced by BEIS and HMRC answering some of the most common questions. We have also added links to useful webinars touching on this topic either delivered by ourselves, in partnership with the British Chambers of Commerce or other strategic partners. Also, do not forget to check our Frequently Asked Question in our Hub, as we have included more content on rules of origin. Need more tailored support? Lastly, if you are still finding difficult to navigate and understand how rules of origin are affecting your current business model, consider our Bespoke Advice Service, or training courses and events.

The UK Government is postponing the full implementation of all controls and procedures until the 1st of October. In his first meeting since being appointed minister for UK-EU relations, former Brexit negotiator Lord Frost informed EU Commission Vice-President Maros Sefcovic last Wednesday that the British government would extend NI Protocol grace period for a further six months for checks on agri-food products and parcels moving between GB and NI – an action that according to the EU breaches international law. Grace Period Extension Frost explained that such operational measures were “well precedented” and “entirely consistent with our intention to discharge our obligations under the protocol in good faith” and to provide more time for businesses such as supermarkets and parcel operators to adapt to and implement the new requirements in the Protocol. Northern Ireland is part of the EU’s single market; and many businesses have been pressing for an extension to avoid empty shelves. Indeed, should the grace period have finished at the end of March as per protocol, supermarkets would have had to produce export health certificates for all shipments of animal products. Parcel Movements On parcel movements, the government has now published guidance on a “continued temporary arrangement” that states that customs declarations will continue to not be required for parcels send from GB to NI, with the exception being parcels containing prohibited, restricted and business-to-business goods worth over £135. Response from the EU As a result of the decision, the EU has responded by delaying the ratification of the trade deal and condemning the UK’s unilateral decision to extend the grace period describing it as "a violation" of the so-called Northern Ireland Protocol, with the serious risk of undermining the mutual trust between the two parties. On Twitter, Sefcovic said "I'll be speaking to Lord Frost tonight on the implementation of EU-UK agreements. I'll be raising our strong concerns on the respect of the IE/NI Protocol, following today's announcements". Are you currently trading via Northern Ireland? Key issues faced by traders: Help us understand what the key areas are where you are seeking support by completing this 1 minute survey Check the NI Customs Academy for useful resources, webinars and guides Need further support?, please email us at benefits@gmchamber.co.uk or call 0161 393 4321. Our in-house team supported via a network of associates are at hand to help. Sources: Gov.uk and The Financial Post

The trade deal signed last December with Kenya is now likely to be extended to all members of the East African Community (EAC) trade area, as reported by British and east African media. As a result of this extension, Burundi, Uganda, Rwanda, South Sudan and Tanzania would also benefit from preferential no-tariff, no quota terms. Economic Disruption Within the Block According to local MPs and the UK’s House of Lords, signing the deal with only one member of the EAC has created disruption on the regional economic unity, as reported by City AM. This comes after the other EAC countries had demanded a one-year extension of the negotiations period to sing the agreement as a block. Currently, the deal provides duty-free access for Kenyan businesses to the UK market, and prevents disruption to UK businesses by maintaining preferential arrangements. Additionally, it aims to support job creation and economic development. According to The Standard, last year Kenya was the UK’s 71st trading partner and in 2019 the trade between the two nations was worth approximately £1.4 billion. Trade Deals with Africa Since leaving the European Union, the UK has been able to reach independent agreements with several other countries among which are included 16 African countries, the latest being Ghana. These agreements account for approximately £21.4 billion, and have been rollovers from EU trade terms which provide reduced or zero tariffs for exports into the UK. Additionally, speaking at the Africa Investment Conference Boris Johnson said that his goal was “for the UK to be Africa’s investment partner of choice. The AfCFTA The African Continental Free Trade Area (AfCFTA), which includes 54 countries has become a growing market for the UK. However, the agreement is still in the process of being ratified in many of the countries. According to the Economic Commission for Africa (UNECA) this agreement has the potential to boost trade between African countries by 52.3% through the removal of import duties and the reduction of non-tariff barriers. Do you want to explore new markets? Start by completing our free International Trade Readiness Assessment to know where your business stands in the internationalisation journey Make the most of our Market Identification Service and choose the right market from the start Find out more about our Market Entry Services Source: Adapted from the Institute of Export

The European Commission will allow data to continue flowing freely between the EU and the UK after concluding that British rules and provisions provide sufficient protection for customer’s personal information. A draft of the decision, seen by the Financial Times, is expected to be approved this week, greatly benefiting business in the health, insurance and technology sectors. This relatively speedy decision has been possible because the UK already has a system that aligns with the EU’s. Additionally, the agreement is also set to include cooperation on policing, allowing for data transfers on matters such as search warrants and the interception of communication. Future Prospects The agreement will be reviewed every four years by the commission and is open to legal challenges at the European court of Justice to ensure that UK rules do not compromise the privacy of EU citizens as stated by Vera Jourova, EU vice-president for values and transparency. BCC welcomes European Commission data adequacy ruling. Commenting on the decision by the European Commission to grant the UK data adequacy, BCC Co-Executive Director Hannah Essex said: “With the free flow of data critical to their operations, businesses will be greatly relieved at the granting of data adequacy which removes a costly cliff edge at a time when many are already struggling due to the pandemic and post-Brexit trading conditions. “However, it should not distract from the need to address the many practical difficulties that are currently stifling trade between us. More needs to be done to fix these problems otherwise many firms may simply give up on doing business with the EU. “This should include pushing back the dates for introducing additional scientific checks on animal and plant goods from April and full customs checks on imports from July and increasing the support available for businesses who need time to adapt to the new trading conditions.” Do you want to know more about post-Brexit changes in data and services? Join us on our upcoming “UK/EU Trade Relations: Services and Data” webinar in partnership with the British Chamber of Commerce. For more information and to register click here. Source: Adapted from the Financial Times

Seven weeks into 2021, and the Chamber has dealt with hundreds of emails and calls from exporters and importers who are clearly struggling to understand and adapt to the new rules. In a recent survey conducted by the British Chambers of Commerce, it was not surprising to see that 49% exporters and 51% of manufacturers reported they have found it difficult to adapt to the new rules. Unlike UK importers, EU exporters have not been able to tap into any easements or a phasing out approach, and must contend with full customs declarations, processes and other key documentation from day one. The UK did implement a phased out approach for UK importers and from Jan to July of 2021, companies can benefit from simplified customs procedures and postponed VAT accounting on top of the standard deferment VAT accounts. Many members have reported to us having issues with documentation – from minor mistakes to EU customers requiring documents that the new UK Government Tool ‘Export Checker’ did not flag up as a requirement. Others have been shocked to understand how the Rules of Origin and bilateral cumulation agreed on the TCA is now seriously affecting their business model, not to mention difficulties in understanding they can no longer benefit from EU VAT Triangulation. As a Chamber of Commerce, one of our key roles is to represent the interest of our members, ensuring their voices are heard by local, regional and national government bodies. We are constantly asked by HMRC, DIT, BEIS and other key government departments to provide feedback on several areas, including the UK Trade Strategy, the GM International Strategy, Brexit and more. If your business has been affected by the new rules, we want to hear from you! Send your concerns to Chris Fletcher, our Director of Policy and Marketing at chris.fletcher@gmchamber.co.uk and Head of International Trade: Susana.cordoba@gmchamber.co.uk

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Last Thursday, the UK government announced a £20 million support package for SMEs facing Brexit challenges. The fund’s intention is to help SMEs adjust to new customs, Rules of Origin, and VAT rules when trading with the EU. Businesses who trade with the EU and the EU alone will be encouraged to apply for grants of up to £2000. Traders are encouraged to take up opportunities to train their staff in key skills that will help them become more confident exporters and importers. This announcement comes ahead of, and to prepare businesses for, the new import controls coming into force from April and July, as set out in the Border Operating Model. Commenting on the announcement of the fund, Suren Thiru, Head of Economics at the BCC, said: “This is a welcome first step in dealing with some of the major issues that small businesses trading with the EU are facing. With their finances already under a significant squeeze firms, particularly those which export, are inevitably encountering difficulties in adapting to the complexities of the new arrangements. “It is now crucial that the grants provide sufficient funds to make a real difference and the government should stand ready to increase their size if needed.  We will continue working closely with government to make sure this scheme is delivered as quickly and smoothly as possible for firms still adapting to the new EU trading arrangements and the impact of the pandemic. “The BCC will also continue to offer as much direct support as we can to SMEs especially through ChamberCustoms - our dedicated customs advisory, training and brokerage service.” However, the question remains – will this support from the government be enough? In a recent survey caried out by the Chamber on behalf of the BCC our Research team found that Three-fourths of businesses that are currently trading with EU markets reported serious difficulties in preparing for the new rules. Of these, 15% are preparing to scale down EU trade because they find the new procedures too complex or costly to comply with. Evidently, the impact of Brexit will not be fading into the background for businesses anytime soon, and a finite amount of support may not be enough. Commenting on the results of the survey Subrahmaniam Krishnan-Harihara, Head of Research at the Chamber, said “It is now clear the trade deal secured in the eleventh hour is not the silver bullet it was touted to be. The devil is in the detail and compliance is not easy. Indeed, commonly cited concerns for scaling back EU trade included increased paperwork and administration costs, border delays and confusion about what rules to follow. Over half of survey respondents have taken on more debt compared to a year ago. A quarter of businesses have cash reserves to see them through for less than three months. That being the case, many businesses do not have the firepower to invest in Brexit preparation. It is imperative that the UK government does not rush into introducing full customs checks on imports in July. The timescales need to change, and additional support should be made available for businesses who are battling to adapt to new trading conditions. Without flexibility and support, there is likely to be further damage and the path to recovery will remain long and thorny.” Additionally, this week Chris Fletcher, Policy, Campaigns & Communications Director, spoke with Dave McNamara the Director of Advanced Supplies a typical SME, with customers in the EU as well as in other parts of the world. Advanced supplies’ concerns echo those found in the Chamber’s recent survey findings. The business is running into problems with goods stuck in Spanish ports due to ‘incorrect paperwork’ and a costly overhaul on its distribution model in France. As Brexit costs and the time spent dealing with it piles up, Dave must ask, “How long before these people decide it’s too much trouble and cost to deal with the UK?”. Read more about Advanced Supplies’ story here. As a business, you do not have to face the challenges of post-Brexit trade alone. The Chamber has a qualified team of international trade experts and the support of our Membership team to advise, guide, and listen to your Brexit concerns. Please call us on 0161 393 4321, or email benefits@gmchamber.co.uk for more information.