The latest Government announcements on the UK's EU exit

The Government have recently made a number of announcements on their plans for the UK's EU exit on December 31st 2020 when the transition period ends.

The recent announcements made earlier this week are summarised in this news story, as well as links to more information from the Government.

Border Operating Model

The Border Operating model has been published with the intention of giving both traders and the border industry clarity on post-EU operations. The model expresses that the UK will operate a full, external border as a sovereign nation; meaning that there will be controls placed upon the movement of goods between GB and the EU. The Government have also taken into consideration the impact of Covid-19 on businesses in regards to their ability to prepare - therefore the introduction of border controls on imports into GB will occur in three phases; 1st January, April 2021 and 1st July 2021 to provide flexibility and sufficient preparatory time.

There are a number of formalities that importers, including suppliers to the convenience sector will have to prepare for as part of this model including;

• Applying for a GB Economic Operator Registration and Identification (EORI) number. This is required for all businesses moving goods into or out of the UK.
• Preparing to pay or account for VAT on imported goods.
• Apply for a duty deferment account. Traders who import goods regularly, may benefit from having a duty deferment account. This enables customs charges including customs duty, excise duty, and import VAT to be paid once a month through Direct Debit instead of being paid on individual consignments.
• Get a customs intermediary. Intermediaries can help traders find the information needed to complete formalities and submit the required declarations, for example customs information to HMRC systems. This simplifies the declaration processes for traders. If you decide not to use an intermediary, you will need to make declarations yourself.

In relation to the GB and Northern Ireland relationship, the Border Operating Model currently only provides an approach between GB/EU trade. The guidance on Northern Ireland will not be released until negotiations have been concluded with the EU. Initial guidance to Northern Ireland will be published in the coming weeks and will continue throughout the transition period. The Government have assured they are working closely with NI businesses, traders and ports etc. in preparation.

£705 million investment for GB-EU border

In preparation, a £705m fund has been announced for new infrastructure, jobs and technology to facilitate GB border systems being fully operational when the UK's transition period ends in December. This fund includes £470m to build infrastructure such as border control posts and £235m for IT systems and 500 more staff to ensure borders are controlled. More information on the investment fund can be found here.

‘The UK's new start: let's get going' Transition Period Campaign

These developments will be supported by the new campaign to prepare UK for the end of the transition period. The Campaign The UK's new start: lets get going will seek to ensure and help businesses and individuals prepare for the post-EU environment and will run alongside the UK's continued negotiations with the EU. This will be done through raising awareness and providing guidance surrounding travel, exports and imports and the future relationship with Northern Ireland. Further information about the campaign can be found here.

Points Based Immigration System

The Home Office published further details on the UK's Points-Based Immigration System on Monday. The Policy paper here builds on February's announcement by providing more detail to applicants and employers on the draft requirements and conditions that shape the various immigration routes into the system.

The new Border Operating Model parallels with the introduction of a UK points based immigration system in GB as part of the EU-exit process. The operation of this system will essentially work around the scoring of points. All applicants, both EU and non-EU citizens, will need to demonstrate a range of requirements including;

1. They have a job offer from an approved sponsor
2. The job offer is at a required level
3. Proof that they speak English
4. Proof that the applicant earns more than the minimum salary threshold of £20,480

A total of 70 points are required to be eligible to apply. More information can be found here.

Officials from the Border and Protocol Delivery Group will be attending a retail industry event in the coming weeks.

 

Government updates

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