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Rules of Origin are causing disruption to UK traders who are having to re-think their business models and are finding out that the recently signed EU-UK Trade Cooperation Agreement (TCA) is not necessarily helping them to avoid import duties and taxes on some of the goods the exported to or imported from the EU. The New EU-UK TCA allows for goods to move tariff and quota free if they qualify under the Rules of Origin in the agreement. The TCA allows also for full bilateral cumulation which means materials originating from the EU, as well as production carried out within the EU on non-originating materials, may be considered as originating in the UK (and vice versa). Why are Rules of Origin used? Rules of Origin are applied to ensure that only goods originating in the countries that have signed the agreement benefit from reduced tariffs and other non-trade barriers covered by the agreement. If these rules were not applied, companies could simply import goods into a country that has a trade deal in place with the country they want to export the goods to, and then just export the goods even though the country of origin does not have a deal with that country. Rules of Origin can also apply when there are no trade agreements and to enable non-preferential access, in cases where importing countries require the monitoring of certain goods due to quotas, sanctions or anti-dumping rules. How do they work? Rules of Origin and cumulation principles tend to vary from trade agreement to trade agreement and from commodity code to commodity code. If at least 50% of the commodity is considered as originating in the UK, then the goods would be considered of UK origin. Naturally, this is not an issue for goods wholly originating in the UK. However, in modern supply chains parts come from countries all around the world. When the UK was a member of the EU, parts from EU countries counted towards the origin of the goods. However, although this is still possible in some agreements, it is only possible if the goods are processed in some way in the UK. This is called cumulation and is included in most trade agreements, however it only applies if the goods are processed beyond the list of minimal processes which do not change the origin of the goods. For example, repackaging a good is considered a minimal process which does not affect origin. Rules of Origin are now an added trade barrier that UK exporters did not need to consider before. Therefore, it is important to understand how these rules work to be able to know which goods can benefit from the agreement. Where can you find what Rules of Origin apply to your goods? The UK Government has launched two new online tools that can help you identify what rules apply to your specific commodity codes: How to Export Tool Trading with the UK for Imports What constitutes proof or origin? Each Trade Agreement the UK now signs will have provisions for what Rules of Origin will govern such agreement and this will include what type of proof of origin you need to consider when exporting or importing. Proof of origin can include: EUR1 or EUR-MED movement certificate origin declaration by the exporter which can be added on a commercial invoice, packing list or delivery note. importers knowledge Generalised Scheme of Preferences form A The length of time proof of origin will be valid for depends on the preference agreement and the type of proof. Need help with Rules of Origin? If you would like to acquire more in-depth knowledge on Rules of Origin, why not join us on our upcoming Rules of Origin training course which will be delivered on the 12th of February Need UK EUR1s? Take a look how the Chamber can help here Check our Brexit Hub and all the useful guidance we have compiled on Rules of Origin Check our FAQ section as we are adding more Q&As related to Rules of Origin Have more specific questions regarding Rules of Origin which require expert advice, please use our Bespoke Service and either a member of our in-house team or GMCC associate can help you clarify doubts. Sources: British Chambers of Commerce, HMRC

Five of the UK’s largest business groups, including leaders of the British Chambers of Commerce, have raised their concerns about problems at the UK’s ports. In a letter seen by the Guardian, the business groups have warned the government of a “significant loss of business” due to new customs processes and checks following the UK’s exit from the EU customs union. After the meeting with the group, Michael Gove said that “some businesses are facing challenges with specific aspects of our new trading relationship with the EU”. ‘Sizeable obstacles’ for businesses The business leaders have warned that new customs processes were leading to “sizeable obstacles” for the movement of goods between the UK and the EU. The group stated that: “A range of problems were discussed, including the substantial difficulties faced by firms adapting to the new customs processes, sizeable obstacles to moving goods through the Dover-Calais route and the shortage of informed advice from both government and specialist advisors, alongside a number of others.” Journeys with no goods ITV News reports that a large proportion (65%) of lorries travelling from the UK to France are currently empty as hauliers try to avoid unnecessary paperwork. Trade flows are predicted to return to normal, but the current situation is a cause for concern for many businesses. For the week ending 24th of January, figures show that 3,400 trucks travelled from Dover to France via the Eurotunnel each day. This is a 30% decrease when compared with normal levels. Worryingly, only one in ten Export Health Certificates at the French border were found to be correctly completed. Export Health Certificates are needed so that food and animal derived products can be shipped across borders. Delivery times slow significantly New customs requirements following the end of the transition period are having an impact on UK manufacturers, survey data released last week shows. Purchasing Managers’ Indices (PMIs) from IHS Markit, reported in Reuters, show that British factories have experienced a steep increase in supplier delivery times when compared with counterparts in France, Germany, Japan, Australia and the US. French strikes to cause further delays To add to delays, French unions confirmed that strike action is planned for Thursday to protest “disastrous government decisions” taken in tackling the pandemic. There are fears the action could affect freight into the weekend when new driving restrictions for vehicles over 7.5 tonnes begin. Do you need help with any of the above? Take a look how the Chamber is supporting members and customers: Customs Declaration Brokerage Services Training - How to Complete Customs Declarations (March 2021) Bespoke advice Need help with Export Health Certificates? Let us connect you with our approved supplier. They are chamber members and highly experienced. Email us at exportbritain@gmchamber.co.uk for an introduction. Source: Institute of Export & International Trade, British Chambers of Commerce

More than a month into the post-Brexit era, the United Kingdom is still facing nuanced, challenging trading conditions getting goods to market from the EU and to Northern Ireland. Northern Ireland Protocol The Northern Ireland Protocol, designed to maintain the integrity of the UK’s internal economic union and prevent a hard border on the island of Ireland, poses nuances which could affect the full implementation of the Free Trade Agreement. EU-based companies can move goods to the UK via Northern Ireland without customs checks, or tariffs and duties payable at the NI border (in most cases). Goods going from EU to Northern Ireland will not have VAT levied on “imports” when crossing the border in Northern Ireland, but VAT may be applied when these goods move from Northern Ireland into Great Britain. New EORI Numbers Needed Pre-Brexit, EU businesses relied on a single EORI number, but post-Brexit, both an EU and a UK EORI number are now required for EU businesses to move goods to the UK. Companies shipping through Northern Ireland may need an EORI number beginning with “XI” rather than beginning with “GB”. They also need to ensure that their VAT numbers and EORI numbers are linked to one another. B2B: Import VAT, Customs, and Accounting Schemes EU-based companies importing goods directly to Great Britain from an EU member state are required to register as a VAT vendor in the UK, resulting in additional costs associated with registration and ongoing VAT filing. For goods being sold B2B from the EU to the UK, schemes such as postponed accounting and deferment accounts suspend the upfront cash outlay of any Import VAT charged; essentially, these companies can record Import VAT expenses on their UK VAT return which will reduce the company’s VAT liability. Whilst this may benefit businesses from a cashflow perspective, there is more admin and paperwork involved with set-up, and customs documents still need to be completed. Furthermore, if the goods had additional manufacturing in the UK and then are on-sold again from GB to the EU through Northern Ireland, there may be more customs and regulatory checks on those goods. B2C: Elimination of £135 Threshold The removal of the £135 threshold for selling goods B2C into the UK is potentially the costliest change, especially for smaller sellers. Previously, low-value goods could enter the UK without VAT being charged. Now, these goods (many of which are sold via online marketplaces) would have VAT charges. The seller also now needs to register for VAT in the UK and pay the output VAT, and UK buying consumers face an additional burden of 20% UK VAT cost on their purchases. Pre-Brexit VAT registration thresholds have also been removed, posing additional barriers in the form of paperwork and costs for sellers. EU Businesses Must Act Now Achieving trade compliance from day one has proven to be difficult for many companies on both sides of the channel. To avoid delays, EU businesses need to ensure they are already set-up correctly with VAT registrations and EORI numbers by the time the goods arrive in the UK. Whilst it is possible to amend paperwork retroactively, doing so is more cumbersome and incurs time costs and financial burdens; as compliance experts, re:TRADE urges businesses to act now. Author: VAT IT The Chamber is pleased to continue and expand its partnership with VAT IT, author of the piece above and a company that has earned the reputation as the trusted and world leading service provider in tax reclaim and compliance. VAT IT launched a holistic supply chain solution named re:TRADE to help UK businesses continue trading with the EU. Need help with VAT? Join us on our upcoming free Business Clinic - Surviving Brexit - New VAT & Cross-Border Trade Requirements in partnership with VAT IT to meet face-to-face with specialists who can help you understand changes, providing clarity and guidance Book a free consultation with re:TRADE powered by VAT IT today, and select “Greater Manchester Chamber of Commerce” for the question “Where did you hear about re:TRADE?” for a special discount available for members only.

The NI Protocol is a mechanism which enabled the UK to leave the EU as a whole without imposing a hard border on the island of Ireland which could jeopardise fragile peace agreements. PM Boris Johnson has threatened to override parts of the NI Protocol unless the EU eases restrictions faced between Great Britain and the region by invoking Article 16. This comes right after the EU was planning to use the same channel when it halted the supply of vaccines at the Irish Border, although this was averted almost immediately and faced instant criticism. Business Matter Magazine reported that on Wednesday (4th Feb), the UK had submitted a request for a 2-year extension period on the core elements of the protocol, including checks on food and delivery of online shopping entering to the region from Great Britain. However, this was submitted shortly after PM Johnson had told the House of Commons (3rd Feb): 'We will do everything we need to do, whether legislatively or by triggering Article 16 of the Protocol, to ensure there is no barrier down the Irish Sea'. This has added to ongoing tensions. It is not surprising that a lot of discussions have taken place about Article 16. Anton Spisak, Policy Lead at The Tony Blair Institute, wrote about this saying: "It allows either side to act unilaterally - for example by suspending certain obligations - if there are "serious economic, societal or environmental difficulties" arising from the application of NI Protocol. By acting unilaterally, Spisak adds: it means being able to suspend certain rights and obligations, which are made under NI Protocol, without going through a usual process for resolving disputes. It is an option of last resort" He provides an insightful explanation as to why Article 16 is not a means to revoke, temporarily suspend, disapply the Protocol, or to address reasonably foreseeable consequences of applying the Protocol. Instead he says Article 16 is a channel to address issues which were not reasonably foreseen, but which could have a serious impact on society, the economy and environment as a direct result. Check the full thread of his explanation here. Are you currently trading via Northern Ireland? Key issues faced by traders: Help us understand what are the key areas where you are seeking support by completing this 1 minute survey NI/GB Border Arrangements Webinar: Join us on 15th February 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.

The Department for International Trade has opened up a public consultation to understand what businesses think about the current application process for tariff duty suspension. Many of the Chamber's members and customers are importers, and this could be a good opportunity to submit their views. The regime removes tariffs from certain goods imported into the UK. A suspension of quota can be used by any business in the UK, and it is no specific to the company which applied. The first suspension application window will open around May 2021. DIT is keen to know what businesses think about: the EU suspension application process how the UK’s independent suspension application process should look the timescales for application window cycles, including processing, objecting to and implementing suspension applications any other relevant feedback If you are a business with experience using this process, please email DIT at tariffsuspension@tradegov.uk by 12th March 11:45 p.m. Source: DIT

The International Commercial Terms or Incoterms® are terms published by the International Chambers of Commerce that are used worldwide and that dictate who is responsible for what during international transactions. Essentially, they explain all the tasks, risks and costs involved in the transaction of goods from seller to buyer. Incoterms are reviewed every 10 years with the latest version having come into effect in January 2020. One of the most used Incoterms is EXW or Ex-Works, in which the buyer assumes all costs and risks throughout the process, and the seller’s responsibility is only to make the goods accessible to the buyer. Consequently, under this term the buyer is responsible for insurance, customs clearance both at the Export and Import destinations, as well as for loading and transporting the goods, among others. Although using EXW, may seem the easiest way to avoid weighty responsibility, there are some important aspects that you may wish to consider before deciding on using this Incoterm. One of the main aspects is that under the new rules, exporters must provide irrefutable proof of export if audited by HMRC. However, under EXW, since you are not the “Exporter of Record” you are not legally entitled to the export customs declaration, a key document to prove the goods were cleared and left the country. A further important aspect to take into consideration is that if the buyer is using your GB EORI number, you are liable to HMRC for any errors. Therefore, you may wish to consider using Free Carrier or FCA instead. This would allow you to be the “Exporter of Record” and by taking on responsibility for the export customs clearance, it will leave you in control of the process and having access to the customs declaration. All in all, this step would allow you to minimise risk and remain compliant. Need help with incoterms? If you would like to acquire more in-depth knowledge on Incoterms, join us on our upcoming Incoterms training course which will be delivered on the 17th of February; or If you have more specific questions regarding incoterms, please use our Bespoke Service and either a member of our in-house team or GMCC associate can help you clarify any doubts.

The end of the Brexit Transition period on 31st December 2020 saw the new regulations and compliance requirements placed on UK firms exporting goods into the EU. The Free Trade Agreement negotiated between the UK and the EU thankfully eliminated many tariffs and quotas on goods traded. However, the VAT consequences of the UK now being outside the Single Market and Customs Union were not addressed in the FTA. The Before: VAT in the Single Market Prior to Brexit, the UK traded within the Single Market, which allowed British businesses to benefit from various EU VAT directives that effectively reduced or removed VAT liability on goods trading within the Single Market. Given that VAT rates can be as high as 21% in countries to which UK businesses often transport goods, the Single Market offered significant financial relief when it came to VAT. Overall, VAT implications on trade were minimal, and if levied, there were various simplified mechanisms for businesses to reclaim VAT. New VAT Requirements after Brexit Previously in the Single Market, an Intra-Community supply meant that VAT of 0% was applied and it was the end consumer that ultimately paid VAT. Now, UK companies face considerably more paperwork from the need to restructure their VAT set-up—including new registrations and applications. Failing to do so could result in penalties; or worse - the goods will not reach their destination. There are Incoterms where businesses could pass the Import VAT charge onto their customers; however, the financial burden could lead to losing customers or delays in customers receiving their supplies. After Brexit, goods shipped from the UK to the EU are now considered exports into the EU, therefore are subject to the same compliance requirements as exports from as any other country outside of the EU. For most British businesses, this is the first time they have had to deal with import VAT and the associated paperwork. VAT registrations are now required in one or more countries in the EU (depending on whether the transaction is B2B or B2C) because the goods are treated as 3rd party supplies. The rules that previously created thresholds whereby UK businesses could sell low-value goods without a VAT registration have also been eliminated. Other Trade Considerations Some European countries also now require a Fiscal Representative to act as their “VAT agent”. There could be several forms in different languages to complete for this requirement, adding to the costs and administrative burden of trading. Moreover, UK businesses need to obtain a new EORI number, separate to the one they already have. Incorrectly completed import documents could mean any recoverability of the import VAT is either at risk or made impossible. The key task of British businesses now is to make sure they are set up correctly for trade with the EU - and sooner rather than later. Even if businesses only start to restructure now, there are still opportunities for reclaiming any Import VAT already suffered. Author: VAT IT The Chamber is pleased to continue and expand its partnership with VAT IT, author of the piece above and a company that has earned the reputation as the trusted and world leading service provider in tax reclaim and compliance. VAT IT launched a holistic supply chain solution named re:TRADE to help UK businesses continue trading with the EU. Book a free consultation with re:TRADE powered by VAT IT today, and select “Greater Manchester Chamber of Commerce” for the question “Where did you hear about re:TRADE?” for a special discount available for members only.

Supermarkets, retail, and food bosses have told MPs that the worst of supply chain disruption from the Northern Ireland Protocol is over. Late finalisation of new trade rules and procedures have been blamed for much of the disruption to supply chains, and the lack of food on Northern Irish supermarket shelves. However, Andrew Opie, director of the British Retail Consortium, has warned that supply chains are not out of the woods yet as there is a significant shortage of qualified vets to sign Export Health Certificates. HMRC introduced a three-month grace period exempting trade of products of animal origin destined for supermarkets from full export health certification requirements. A second grace period was bought in for fresh meat products going into Northern Ireland. However, the food industry is calling for a further extension of any easements. Whilst supermarkets, retail and food businesses are confident disruptions are coming to an end, the reality is that sole traders and SMEs have also been facing disruption. Some have even taken the decision to stop sending goods to Northern Ireland over a lack of understanding of the new rules, which for an SME or sole trader can have a huge impact on their cash flow. Is your business facing issues when trading via Northern Ireland or under the new rules in general? The Chamber can help companies in several ways: Join our next free webinar which will be touching on NI/GB Border Arrangements - 15th Feb Check our Brexit Hub as we have compiled key guidance on NI Protocol, as well as the New UK Border controls and other key topics. Let us know what challenges your business is facing and how they are impacting you. Our lobbying and policy work is an important instrument at our members’ disposal to ensure your voices are heard and taken into account by local and central government.

Following the Foreign Trade Agreement signed with Chile, the Department for International Trade has confirmed that from 12 January 2021 preferential tariff rates will apply to UK exports to Chile as they are set out in the agreement. Additionally, for goods imported to Chile from the UK between 1 January 2021 and 12 January 2021, preferences can be applied retrospectively. So, businesses can claim back any additional tariffs paid since 1 January 2021 from the Government of Chile. The Government of Chile has issued guidance on this rebate scheme (Chapters III and IV). The Agreement The UK-Chile continuity agreement includes terms on: Trade of Goods - including preferential tariffs, tariff rate quotas, rules of origin and sanitary and phytosanitary measures. Trade of Services – the agreement maintains preferential market access for trade in services. Intellectual Property – the FTA protects intellectual property rights. Government Procurement – UK and Chilean companies may bid for public sector contracts in the other country, which will help in creating jobs and deliver better value for taxpayers. Rules of Origin Unless you are permitted to provide an invoice declaration, a certificate of origin will need to be filled in to claim preferential treatment. These will from now on show the UK as the place of origin instead of the EU. EUR1 forms continue to be used. EU materials or processing can continue to be used, however, the working or processing carried out in the UK must go beyond the minimal operations listed in the agreement, and all relevant conditions must be met. Transiting Goods Through the EU Goods transited through the EU will not have the same restrictions as those transited through other third countries, providing that the goods have not been entered into free circulation in the EU. Additionally, transiting through third countries is possible if the goods remain under customs surveillance and do not undergo operations other that those needed for transport ad preservation purposes. Do you want to grow your business in Chile and LATAC? Did you know the Chamber has several approved suppliers across the region who can help you grow your exports or diversify your supply chain? If you are interested in learning more visit our Market Entry Services or email our team at exportbritain@gmchamber.co.uk Source: Gov.uk

It seems that the world of international trade is currently defined by Brexit, Brexit, and more Brexit. However, focusing on one area of trade regulations alone can be to UK businesses’ peril. International trade is a global playing field, so it is important to stay aware of key updates such as the Chinese government’s draft of their new ‘Export Control Law’ (ECL) and the law’s implications. The US-China relationship One of the major political dramas to feature in the White House over the past four years has been the tension between the United States and China. From trying to ban TikTok, to sanctions and denial of export privileg es, the Americans’ relationship with China has been frosty to say the least. Some experts suggest the ECL from China is an attempt at retaliation, the law is said to streamline and harmonise procedures but crucially it can also enforce new requirements. To increase licences or not Previously China had intended to extend the extraterritorial jurisdiction of its law to cover foreign-made products with Chinese content. This ‘re-export control provision’ would require overseas businesses – including the UK – to attain Chinese export licences, even if their products are not expected to enter, transit through, or exit China. Essentially this would mean obtaining a licence from China anytime goods containing Chinese parts crossed borders, Chinese or otherwise. Luckily, the rules for the re-export of items incorporating controlled content exceeding the de minimis level that appeared in the 2017 draft were removed from the 2019 draft ECL. For now, UK-produced items with Chinese parts or technologies will not be subject to the ECL. Instead, more focused export controls may apply. A question of status Central to these controls is the status of ‘Export Business Operators’ (EBO). According to the draft of the bill, all “citizens, legal persons or other organizations exporting controlled items according to laws and administrative regulations” are EBOs. An export would be defined as a transfer of controlled items from the territory of China – including Macau, Taiwan and Hong Kong. The parties can be either Chinese nationals or foreigners. EBOs fall under this law and are subject to administrative and criminal fines for export violations. The potential for penalties Penalties for violations have increased when compared with the 2017 draft. So not paying close attention to regulations could see businesses face unwanted costs. Further fines for transactions with blacklisted entities are also included in the law. In a serious case, the business operation will be suspended, and the relevant exporting certificate could even be revoked. China’s Minister of Commerce will maintain a blacklist of exporters or end-users who are likely to endanger national security or who use the controlled items for terrorism. What constitutes ‘national security’ is up for interpretation and could very quickly lead to listings. Entities on the blacklist are restricted from being involved in any transactions related to the controlled items. This is problematic for US businesses that could get caught up in a ‘listing war’. The implications This law will affect UK firms who export dual-use items to China, and especially those with ties to the USA no matter how relevant or not they may be. UK firms will need to have effective export control processes in place to adapt to any sudden change in Chinese legislation. Need help trading with China? We work in partnership with an approved supplier who can help companies navigate the complexities of this market.If you need any support email us at exportbritain@gmchamber.co.uk

From the 1st January, the UK will become a 3rd country to the EU and as with many other areas of exporting and importing, there will be changes to our Export Documentation services: European Certificates of Origin will be replaced by UK Certificates of Origin (Non-Preferential) EUR1s will be replaced by a UK EUR1s (Preferential Document) ATRs will no longer be issued by the Chamber from 1st January. There is now a new UK-Turkey Trade deal, so for more information about accessing the Turkey market, please click here UK ATA Carnets will now be issued for temporary admissions to the EU Arab-British Certificates of Origin - no changes envisaged. To check for more detailed guidance on the changes to these documents and Q&As please click here. We continue to provide our certification and legalisations services as normal. However, please bear in mind the team continues to work remotely during this time. If you have further questions about Rules of Origin, proof of origin, claiming preferential rate and more, please check our UK Government Guidance section for more information.

Now that the UK and EU have secured a free trade agreement (FTA), it is paramount to understand what it means to us. 1. No Tariffs & Rules of Origin The FTA allows companies to trade between the UK and EU without paying duties, if the “Rules of Origin” requirements are met. Companies will need to carry out a supply chain audit to understand if their goods meet their specific rules of origin. The Agreement allows for full bilateral cumulation meaning both EU and/or UK content/processes can be included to claim origin. However, this is causing confusion in businesses. In some instances, depending on the business model, some goods may not be subject to preferential duty rate. For example, if your business imports goods from China into the UK and then re-export them (without goods being subject to any substantial transformation) to any EU market, you will soon find out that they will be subject to tariffs. Now, if the goods meet the RoO, then under the new agreement, companies will be able to self-certify the origin of their own goods. For example, an electric car made in the UK can be traded tariff-free even if a significant proportion of it was built using components imported from around the world. 2. New Customs Procedures New customs and VAT rules will apply for trade between the UK and the EU – including the requirement for customs declarations. However, the agreement includes a protocol for cooperation when it comes to combatting VAT, customs, and excise fraud. The UK can instruct the EU to recover unpaid UK tax from EU companies on its behalf and vice versa. Traders are encouraged to get up to speed with the latest guidance on the New UK Border Control and Northern Ireland Protocols. 3. Product & Regulatory Frameworks Regarding human, animal and plant life and health, the agreement states that the UK and the EU may set and implement their own independent sanitary and phytosanitary (SPS) rules and controls. As a result, companies affected – agri-food producers and grocery retailers in particular – will be required to attain new certification and comply with border checks. The agreement also limits some of the technical barriers to trade allowing businesses selling low-risk products to self-certify that their goods meet the relevant UK or EU standards, in areas where this practice already exists. The agreement though seeks to put several measures in place to minimise technical regulatory divergence and encourage the use of international standards for that matter. However, in some cases the agreement did fall short especially in the broad mutual recognition of conformity assessments, meaning that many goods may have to undergo two sets of conformity assessments instead of one - which will lead to increased paperwork, time, and costs. 4. Services are lacking detailed guidance Both EU and UK have made commitments for: Market access for services National treatment to avoid discrimination between their nationals Local presence - banning parties from demanding a local subsidiary to set up before services can be provides However, whilst all sounds good, all these provisions also come with a long list of exceptions listed in the annexes. For instance, the UK’s access to European financial markets was not finalised in the deal, with the UK still seeking ‘equivalence’ status from the EU. The EU has not yet decided whether the UK’s financial regulatory framework and implementation is as rigorous as its own. The UK and EU have stated that they will codify a framework for regulatory cooperation in a Memorandum of Understanding. For legal services, the FTA gives UK solicitors and barristers the right to advise clients across the EU on UK and public international law using their own titles and qualifications. Mutual Recognition of qualifications is one that requires further guidance and clarity. Whilst the agreement establishes a framework for recognition of qualifications, there could be some individual countries where applications may need to be submitted. This means that some UK nationals with certain professions may not be able to deliver their services in some EU countries. 5. The UK Can Set Its Own Standards The UK can now set its own rules in areas such as environmental standards or labour law. However, if the UK or EU strays too far from each other’s standards there is a “rebalancing mechanism” governed by international law, whereby one party can impose tariffs should it deem that its own businesses are put at an unfair disadvantage by the divergence. 6. Independence on State-aid The UK government can set its own subsidies for domestic industries and businesses. According to the government’s summary of the FTA: “each Party will have in place its own independent system of subsidy control and that neither Party is bound to follow the rules of the other.” However, companies in the EU can challenge government state-aid in the UK’s courts and UK companies can do the same in the EU. 8. Mutual Recognition for AEO The UK and EU will recognise each other’s AEO (Authorised Economic Operator) schemes, allowing for AEO-approved firms to move goods more easily between the UK and EU. 9. Continuity for Hauliers Road haulage operators moving goods between the UK and EU will continue to do so without new permit requirements. UK hauliers will be subject to similar standards they already comply with when operating internationally, including restrictions on driver hours, requirement for professional qualifications as well as vehicle weight and dimension limits. However, British truckers will be limited to a single drop-off and a single pick-up when in Europe – a downgrade on the three pick-ups they could do within EU countries before. 10. Rules for Business Travel Positive news, short-term business visits to the EU will be allowed for up to 90 days in any 180-day month period. The activities UK nationals can carry out include: Meetings and consultations Research and design Marketing research Training seminars Trade fairs and exhibitions Sales (taking orders, negotiating sales or entering into an agreement, but not supplying the goods or services themselves) Purchasing goods or services After-sales or after-lease service (e.g. repair and maintenance) Commercial transactions (e.g. insurers, bankers) Tourism personnel (e.g. tour operators, guides) Also no work-permit visa will be required for establishment purposes. Check the Full TCA Text here Source: Institute of Exports, EU-UK TCA, New detailed Guidance on rules of origin, Institute of Governance

Following the EU-UK Trade deal, FT has reported the UK is set to sign a Continuity Agreement with Turkey. This means that the UK and Turkey will continue to trade with each other in the same way they have done under the EU-Turkey agreement. This new trade agreement will safeguarding trade worth over £19bn, according to the Department for International Trade. To read further information about the new trade agreement, please click here

The ATA Carnet is an international Customs document which allows the temporary importation of commercial samples, professional equipment or goods going to either a trade fair or exhibition to countries which are part of the ATA Carnet system. Without an ATA Carnet it would be necessary to go through each country's customs procedures for the temporary admission of goods e.g. lodging a temporary import bond. The ATA Carnet simplifies the custom formalities by allowing a single document to be used for clearing goods through customs in the countries that are part of the ATA Carnet system. An ATA Carnet is valid for one year and allows for movement of the goods shown on the Carnet as many times as required during the 12 months to any of the destinations applied for. As from the 1st January 2021 UK ATA Carnets can be issued for temporary admission to the EU. HOW TO OBTAIN THE UK ATA CARNET Existing Customers: log into your ecert account New Customers: go to the link below and complete the simple registration process: GM Chamber ATA Carnet Registration Our system will allow you to complete the application, obtain quotes on costs and list any special requirements for the countries being visited. Once issued, the carnet can either be posted to you or it can be collected from the issuing office. If you prefer to apply manually application forms can be requested from us via email exportdocs@gmchamber.co.uk CHANGES TO THE CURRENT ATA CARNET Revised front and back covers We have produced a new ATA Carnet document with amendments to the front and back covers (where the UK was classified as an EU member) to reflect the fact that the UK has officially left the EU. The new format will be in effect as from the 1st January 2021. Ownership status The UK Carnets must only cover UK owned goods and the goods must be located and exported from the United Kingdom. Security Rates The EU is one bloc and therefore one destination for ATA Carnet goods. The single security rate we will be requiring customers to provide for the bloc is 40 per cent. COMMON QUESTIONS AND ANSWERS Q- Where can I have my ATA Carnet endorsed? A – If you are travelling via an Airport the system via the red channel will not change - HM Gov has published inland sites that will be processing Carnets to take the pressure away from the borders. Please ensure that you are aware of the inland sites and that this is incorporated into your route planning. These sites can process ATA Carnets, CITES, TIR and CTC documentation:https://www.gov.uk/government/publications/attending-an-inland-border-facility/attending-an-inland-border-facility Q - Do I Need To Make A Customs Declaration When Using An ATA Carnet? A - If the goods are hand carried then no separate Customs Declaration is usually required (other than presenting the Carnet to HMRC + foreign Customs). If the goods are freighted and are bound for an “inventory linked” port or airport they may need to be included on an Import and export: customs clearance request (C21) form using code: CPC 10 00 041 for exports and CPC 00 080 20 for re-imports. If the goods are being sent to a non-inventory port or airport you may need to complete an Import and export: presentation of goods for export (arrival) (C1601) form. Q – If I am travelling through the EU to get to my non EU destination should I get transit vouchers for each EU country ? A – You only need to apply for 1 set for each entry and exit out of the EU as a bloc. It is anticipated that you should apply for export / re-export vouchers rather than transit vouchers which come under separate rules and regulations to avoid potential problems at customs points. For more information, please email exportdcocs@gmchamber.co.uk

Nearly a week before the end of the transition period, the UK and EU agreed a deal: Michel Barnier communicated through his Twitter account 'The clock is no longer ticking. After 4.5 years of collective effort and #EU unity: To preserve peace on the island of Ireland. To protect citizens and the Single Market. To build a new partnership with the UK. Thank you all' This trade deal is estimated to be worth over £660bn a year, and the President of the European Commission Ursula von der Leyen said 'It was worth fighting for this deal. We now have a fair & balanced agreement with the UK. It will protect our EU interests, ensure fair competition & provide predictability for our fishing communities. Europe is now moving on'. David Frost, also tweeted that 'The full text of the new UK/EU Trade and Cooperation Agreement is coming soon, but meanwhile do read this Explainer, which sets out what we agreed today and how the new Treaty works'. To read the explainer of the deal click here and for the full EU-UK TCA text, please click here. BCC’s initial response to the announcement of a UK-EU trade agreement Providing an initial response to the announcement that the UK and EU have reached a trade agreement, BCC Director General Adam Marshall said: “After four long years of uncertainty and upheaval, and just days before the end of transition, businesses will be able to muster little more than a muted and weary cheer. “While firms will welcome the agreement of a new foundation for UK-EU trade, they are now faced with the gargantuan task of adapting to new arrangements with scarcely a week before they take effect. “Businesses will need to digest the contents of the deal and consider what its provisions mean for the movement of goods, people and data across borders, as well as for their supply chains and partners. “We repeat that it is the responsibility of Government to give firms clear, precise and detailed guidance so that they can make the required changes quickly. Far too many details and procedures have been left, literally, to the last minute. “Let’s not forget that many businesses are already on their knees from the impact of the Coronavirus crisis, and most will have fewer resources available to implement the necessary changes with furloughed staff and Christmas holidays. “Governments on both sides must recognise the impossible task they have set businesses and give businesses time and breathing space to adjust to new realities. It is normal for free trade agreements to come with phasing-in measures, and this one should be no different. “Now that the two sides have reached agreement, we call on them to proceed speedily to ratification to give certainty to our economies and trade, and to allow businesses to look to the future. “It is now time to bring the political drama of the last four years to an end, and to replace it with pragmatism and determination to make the new UK-EU relationship work. The agreement can and must be a starting point for deeper cooperation as we restart, rebuild and renew our economies. “With greater clarity on the terms of trade, businesses can plan, invest, and look once again toward new opportunities.”

From 1 January 2021, if you bring goods into Northern Ireland from Great Britain, or another country outside of the EU, you may be liable to pay EU customs duty. If you intend to bring goods into Northern Ireland which you know are not ‘at risk’ of moving to the EU, then you can apply for authorisation under the UK Trader Scheme. If your goods are not ‘at risk’ then you will either pay: zero duty if moving goods into Northern Ireland from Great Britain UK duty if moving goods from a country outside the EU If you do not have experience in customs or would like to find out more information, you can register with the Trader Support Service to support you with this process. For more information including how to apply, click here If you need more information about movement of goods between GB-NI and NI to EU, visit the NI Customs Trade Academy's webinars around XI EORI Numbers, VAT, Hauliers, goods considered at 'risk' and more Source: UK Gov

In the last few weeks, the Chamber has received a number of queries from members who currently sell services to the EU wondering what changes will come into place at the end of the transition period. Most of the UK Government guidance has focus on the movement of goods, however, we strongly suggest to UK companies selling services either remotely or delivering those in any of the EU27 countries checks the available guidance, and whilst a lot of details may still be missing, it is imperative you do take action on those which are known. From Business travel to how you charge/claim VAT and whether you may require an export licence if your service (e.g. software) is considered dual-use or controlled, just to mention but a few, will be some of the things your business will need to plan for if you wish to continue trading with your EU partners. The below offer some of the key guidance we know from both the UK Government and EU which may be relevant to check and action now: Selling Services to EU, Switzerland, Norway, Iceland and Liechtenstein from 1st Jan: https://www.gov.uk/guidance/providing-services-to-any-country-in-the-eu-iceland-liechtenstein-norway-or-switzerland-after-eu-exit Selling Services Guides to EEA & EFTA Countries post Brexit (Country by country): https://www.gov.uk/government/collections/providing-services-to-eea-and-efta-countries-after-eu-exit Pay VAT when you sell digital services to EU consumers from 1 January 2021: https://www.gov.uk/guidance/pay-vat-when-you-sell-digital-services-to-eu-consumers-from-1-january-2021 EU Guide to selling Services to EU27 States (including various sectors such as telecommunications, software, etc) https://europa.eu/youreurope/business/selling-in-eu/selling-goods-services/provide-services-abroad/index_en.htm GDPR /Data Transfer UK Advice: https://www.gov.uk/guidance/using-personal-data-in-your-business-or-other-organisation-after-the-transition-period International Data Transfers (from UK to EU): https://ico.org.uk/for-organisations/data-protection-at-the-end-of-the-transition-period/data-protection-at-the-end-of-the-transition-period/the-gdpr/international-data-transfers/ Checking if your service is dual-use or controlled: https://www.gov.uk/guidance/export-controls-dual-use-items-software-and-technology-goods-for-torture-and-radioactive-sources#dual-use-items-software-and-technology Need legal, accounting or VAT support? Email us at exportbritain@gmchamber.co.uk and we can introduce you to partners, approved suppliers or members who can help.

A recent report from the National Audit Office states that, despite UK government's efforts from a range of its agencies, we can expect major disruptions as some Brexit preparations see delays as the UK and the world deal with the continuing impact of COVID-19. Some areas that the NAO highlighted in previous reports, and the latest report, as being high risk were: IT systems Infrastructure Data Customs Agent capacity Trader readiness Haulier readiness Due to the pandemic, a lot of the communication aimed at traders and other key stakeholders paused, and only resumed around July 2020. The UK government also made the decision to introduced a 6-months phased approach to EU imports giving UK importers more time to prepare. This means there will not be full import controls until July 2021, so UK traders will be able to do simplified customs declarations and postponed VAT and import duty payments. This of course has a fiscal risk for the government, and only UK companies considered high-risk traders will be asked to complete customs declarations from 1st Jan 2021. The report also shows that whilst important progress has been made towards implementing a minimum operating capability by 1st Jan 2021, transit arrangements will be more challenging to deliver in its entirety for this deadline. For instance there are concerns over the delivery of: Goods Vehicle Movement Service (GVMS): as of Oct 2020 was reported to be in 'amber' status in regards to transit, but 'red' in terms of the readiness of the operator and port controls. Inland Sites required to facilitate transit movements: again as of Oct 2020, Sites were classified as either red, amber-red or amber, making it unlikely that all sites will be operational by Jan 2021. If this is true, then hauliers will need to make arrangements to use alternative sites which will have an impact on the ease of trade. New IT Systems: it is not only the government which needs to be ready, key stakeholders must ensure they are integrating their systems with those changed by the government. This has always been a very complex and high-risk, and from this report it seems there are contingency plans. But it is unlikely these will provide all the functionality envisaged in the original plans. Traders & other key stakeholders readiness: further disruptions are expected as many traders may not be prepared for the new EU controls. As a Chamber we have received an increased number of enquiries from exporters and importers which, worryingly, show that many traders have not taken necessary steps to prepare. Traders are mostly unaware of the new added customs paperwork they will need to carry out, whether we reach or a deal or not with the EU. Whilst the UK is planning a phased out approach for EU imports, the EU is not planning a similar approach for UK imports, meaning full EU importing controls are going to take place from 1st Jan. Customs Declarations: this is one of the irreversible new steps that UK & EU traders will have to deal with when trading. Currently these are only necessary when dealing with Non-EU markets, but as of 1st Jan, trade with the EU will require these too. The capacity of customs intermediaries has always been a concern, and NAO's October report indicates that this remains in 'red-rated' status. These are a handful of the areas that the report highlights as concerning. If you want to have a full picture of the current status of Brexit preparations as analysed in this report, check it out the report here

The 2025 UK Border Strategy sets out our vision for the UK border to be the most effective in the world. A border which embraces innovation, simplifies processes for traders and travellers and improves the security and biosecurity of the UK. The purpose of the strategy is to set out: our approach to working in partnership with the border industry and users of the border to design, deliver and innovate around the border a long-term Target Operating Model (TOM) for the border that describes the border we are intending to create the major transformations that government and industry will need to deliver by 2025 and beyond to implement the Target Operating Model The strategy sets out six transformations that government proposes to implement across the UK border and a series of cross-cutting, multi-year programmes that government will take forward in partnership with stakeholders. This list of programmes includes: the development of a Single Trade Window, to create a single gateway for all data from traders into government; implementation of an Electronic Travel Authorisation to speed passenger journeys through ports; and a major review of the agencies and checks that occur at the border, to rationalise these wherever possible. Underpinning this will be a new design authority for the border that will bring together all public sector bodies who design and deliver the border across the UK Government and the devolved administrations, with expert insight from industry, to take a coordinated approach to border design going forward. Check the full 2025 UK Border Strategy Paper Source: HM Government

FRIDAY 18TH DECEMBER 2020 Export Documentation Services Certification, legalisation, etc All documents which need to be sent to the Embassies / Foreign & Commonwealth Office must be with the Chamber no later than Friday 18th December 2020. We will start the process of your documents, however there will be no deliveries to us until the New Year so please make sure you send your documents in plenty of time before this date if your documents are urgent. Last date to submit customs declarations. Other International Trade Services Market entry, events, training and more Last day for out GMCC Trade team. The team continues to work remotely, and we will endeavour to reply any request for support till 4pm on the 18th Dec. Brexit Support If you completed a Brexit Readiness Survey on the w/c 14th Dec, please note you may not receive your readiness reports and/or schedule one-to-one meetings with the team but until the 1st week of January 2021. Please visit our Brexit Hub for FAQs and accessing guidance from trusted sources. We will run a Brexit Support hotline over the holiday period. See below for more details. MONDAY 21ST DECEMBER 2020 Last day to submit all paperwork related to Customs Declarations by 10:00 a.m. to ensure processing. Email: chambercustoms@gmchamber.co.uk TUESDAY 22ND DECEMBER 2020 Last day for all standard documentation applications on e-cert for postal return. WEDNESDAY 23RD DECEMBER 2020 Last day for all express e-cert applications / postal and courier deliveries to our Airport Office Last day for collection only of urgent documents from our Airport office. Hours of opening will be 10am - 1pm. TUESDAY 29TH DECEMBER 2020 Export Documentation Team Last day for submission of EC Certificate of Origin applications/ EUR1, ATR Movement Certificates Documents both standard and express submitted via e-cert will be processed remotely between the hours of 10am – 2pm. Standard postal applications will be posted on Monday 4th January 2021. No collections or deliveries will be available until the new year. IMPORTANT – As we enter 2021 we will no longer issue or accept EC Certificate of Origin applications or the current movement certificates. Any documents submitted after 2pm or in the post to us received after the 29th December 2020 will not be processed and will be rejected. We will only accept new applications on the ecert system bearing the new UK Certificate of Origin / movement certificate reference number from the 1st January 2021. No documents will or can be back dated to 2020. Brexit Support hotline The Chamber team will be available via telephone from 9:00 a.m. till 14:00 p.m for companies seeking support. Call our team at 0161 393 4321 WEDNESDAY 30TH DECEMBER Brexit Support hotline The Chamber team will be available via telephone from 9:00 a.m. till 14:00 p.m for companies seeking support. Call our team at 0161 393 4321 FRIDAY, 1ST JANUARY 2021 Brexit Support hotline The Chamber team will be available via telephone from 9:00 a.m. till 14:00 p.m for companies seeking support. Call our team at 0161 393 4321 MONDAY 4TH JANUARY 2021 All of our international trade services will resume as normal! Documentation team Documentation submitted via e-cert will be processed between the hours of 10am – 2pm Our Airport Office will be open Monday – Friday 10am – 2pm for deliveries / collection of documents International Trade team We will resume working remotely as per normal working hours 9:00 a.m. to 5:00p.m