Brexit means more than renouncing the trade deals of our 27 European counterparts. It’s also about losing the 41 EU-third country trade agreements in 72 separate countries.

As we plummet towards the end of the Brexit transition period, the focus has been on securing a trade deal with the EU to facilitate trade with those who reside in the European single market. With 43 percent of all UK exports to the EU, and 51 percent of all imports coming from the EU, it is clear why this is the primary focus.

However, EU-third country trade agreements have been neglected, with 11 percent of total UK trade coming from nations with EU trade agreements. In the case of a ‘No-Deal’ scenario, the UK stands to lose more than the trade deals directly with EU. We will also lose the 41 European trade deals, spanning across 72 countries external to the European Union.

It is imperative to consider the EUR1, a customs document used in trade between EU members and countries where specific trade agreements exist for preferential tariffs - will no longer be valid for tariff preferences on exports or imports with countries operating under the agreement leaving the UK.

The EUR1 is a movement certificate (a certificate of origin) that you need to claim a preferential rate of duty (usually zero) when moving goods between the EU and the countries on the agreement list. Countries on this list include: 

Albania, Algeria, Bosnia/Herzegovina, Ceuta and Melilla, Chile, Columbia, Egypt, Faroe Islands, Honduras, Iceland, Israel, Jordan, Lebanon, Liechtenstein, Macedonia, Mexico, Montenegro, Morocco, Nicaragua, Norway, Panama, Peru, Serbia, South Africa, Switzerland, Syria, Tunisia, Turkey, Ukraine, West Bank/Gaza Strip.

A consequence of a ‘No Deal’ scenario is the failure to produce the EUR1 document, which will result in a bill for normal customs tariffs.

However, agreements with the following countries and trading blocs are expected to take effect when existing EU trade agreements no longer apply to the UK, which have been negotiated already by the UK government from 1 January 2021:

Andean Countries, CARIFORUM trade bloc, Central America, Chile, ESA trade bloc, Faroe Islands, Georgia, Iceland and Norway, Israel, Jordan. Kosovo, Lebanon, Liechtenstein, Morocco, Pacific states, Palestine Authority, South Korea, SACUM trade bloc, Switzerland and Tunisia.

If negotiators fail to reach a deal, the UK faces the prospect of trading with the EU and their beneficiary countries under the basic rules set by the World Trade Organization (WTO).

Metro is committed to help provide clarity and transparency to our customers, and offer advice and guidance through these turbulent times

For further information, please contact Jade Barrow or Andrew White who are leading our 2021 EU withdrawal Task Team.

This essential piece of documentation is required to demonstrate to Customs (under legal provisions) that authority is granted to act in your name and on your behalf.

A ‘Power of Attorney’ (POA) - also known as a ‘Letter of Empowerment’ - refers to the authorisation required to be given to the customs broker on behalf of the importer or exporter.

It is a standard piece of documentation that gives the forwarder/broker vital information needed to begin handling “customs business” on behalf of the client. A POA must be signed by an officer of the company making the shipment.

The POA should provide supporting documentation that they are authorised to act on the business’ behalf and that document should be fully recognised by the laws of the country in which the business is licensed.

The POA will remain in effect “UNTIL REVOKED”, which gives both the entity and their forwarder / broker the opportunity to revoke the POA at any time.

When an Importer or Exporter is asked to complete the POA, there are some key points of information that must be provided in entirety to allow the broker to act on their behalf:

• The Type of Entity that encompasses the client.
• Individual.
• Partnership – has a TWO year limitation.
• Corporation.
• Sole Proprietorship.
• Limited Liability Company.
• Full legal name of the entity.
• State in which the entity is registered.
• Resident or Entity Place of Business.
• Designation of the Broker or Forwarder who is going to be handling the customs business for the importer or exporter.
• Signature, Capacity and Date of the Signor.

The POA has seen ubiquitous use throughout some of the world’s leading economies and countries, including the EU and USA. This document will only become more significant in the future.

For further information, or to attain a copy of our POA template and current Brexit brokerage update, please contact Grant Liddell or Chris Carlile for assistance.

As the end of the Brexit transition period looms large, it is crucial to consider what will happen to border controls for EU trade from 1^st of January 2021.

As we reside in turbulent times, it must be brought to light that this articles content is not absolute, and is subject to change as time progresses.

There has been much deliberation about what you can do to prepare for 1^st January, however we are going to address what will happen to the border controls for trade in EU goods after our departure from the European Union.

As a result, we have designed a preliminary timeline of what is expected to happen at specific dates, in accordance with the British International Freight Associations guidelines.

1^st January onwards:

When importing standard, non-controlled goods, traders will need to keep sufficient records of imported products, and will have up to six months to complete declarations. It is important to note that tariffs will need to be paid on all imports, however, payments can be deferred until customs declarations have been made.

There will almost certainly be checks for controlled goods at the frontier. High risk items will also involve physical checks at the terminus.

Postponed VAT accounting will be available for UK VAT registered companies.

1st April onwards:

All products of animal origins (POAO) and regulated plant products will need pre-notification, coupled with the presentation of supporting health documentation.

1st July onwards:

Customs declarations, tariff payments, safety declarations are required at point of importation by all traders. This will mean an increase in physical checks and taking samples for SPS commodities.

Checks on animals and plants will be undertaken at the appropriate border control posts outside of the British border.

Metro will continue to update and advise you on the situation as processes begin to become more transparent and further advisories and information are released by government.

For further immediate requirements please call Andrew White or Jade Barrow who are leading our EU withdrawal Task Team.