Transition Period - negotiations and guidance

UKNI Product Marking

16th October 2020

Some further details of the extra marking required in Northern Ireland for some products have been provided in the Statutory Instruments below.  Most notably, the format of this new marking has been published with the letters in a square format similar to that adopted for UKCA marking.  Please note that only a small subset of products would be expected to require this form of marking, which will always accompany a CE mark.  Those products will:

  1. Require mandatory third party conformity assessment by an external test house;
  2. Have that conformity assessment carried out by a UK-based test house Approved Body;
  3. Not have had their UK tested conformity assessment re-validated by an EU test house Approved Body; and
  4. Be placed on the market in Northern Ireland.

As with all products on the Northern Ireland market, CE marking will continue to be the requirement for compliance for those products currently covered by those regulations.  If the product is self-declared or has third-party testing carried out by, or confirmed by, an EU Notified Body then the product can continue to be traded solely with the CE mark in Northern Ireland, including sales into the EU and, according to Government assurances, Great Britain.  Products requiring the UKNI marking to be applied alongside the CE will only be able to be traded in the UK, however.

From: OPSS Legislation Team

“NI Protocol SIs for both consumer & industrial goods” - Product Safety and Metrology etc. (Amendment) (Northern Ireland) (EU Exit) Regulations 2020 SI were laid 13th October - https://www.legislation.gov.uk/uksi/2020/1112/made.

For further information on the SI and accompanying Explanatory Memorandum please use the link above.

The “Affirmative Policy SI” - Product Safety and Metrology etc. (Amendment etc.) (UK(NI) Indication) (EU Exit) Regulations 2020 SI has been sifted and the following link contains the final draft version of the SI laid 13th October - https://www.legislation.gov.uk/ukdsi/2020/9780348213393/contents.

While we have sought to keep the advice clear and concise, we do appreciate you may have further queries if affected by the changes. If so, please contact [email protected] for further information

 

UK-EU Border plans for 2021

8th October 2020

UK TRANSITION: Take action to keep data flowing legally from January 2021

Unless a UK-EU FTA is agreed by December 2020 along with a decision from the EU that the UK’s data protection measures meet adequacy requirements, businesses will need to take extra steps to ensure that personal data can continue to be received from EU/EEA counterparts, e.g. customer information for sales purposes.  It is a relatively straightforward process that may have already been covered as part of your corporate GDPR compliance but you may need to agree Standards Contractual Clauses (SSCs) with your EU/EEA counterpart companies that may be sending you such data.  More information is in this government message but you can find the template clauses through the Information Commissioner’s Office at https://ico.org.uk/for-organisations/data-protection-at-the-end-of-the-transition-period/keep-data-flowing-from-the-eea-to-the-uk-interactive-tool/

The UK has left the EU and the transition period will end on 31 December 2020. If you are a UK business or organisation in the third sector that receives personal data from the EU or EEA, you may need to take extra steps to ensure that the data can continue to flow legally as we transition to our new relationship with the EU in January 2021.

Visit gov.uk to check how you can legally continue to receive personal data such as names, addresses or payroll details from organisations in the EU or EEA from January 2021. You may need to update your contracts or take other steps.

What is personal data?

Personal data is any information that can be used to identify a living person.

This type of information is regularly used in the daily running of businesses and organisations – for example, in relation to human resources, sales, purchasing or marketing.

What is an example of personal data transfer from an EU/EEA partner?

  • A UK company that receives customer information from an EU/EEA company (see which countries this applies to), such as names and addresses of customers, suppliers or partners to provide goods or services.
  • It could also be internet protocol (IP) addresses or human resources data, such as staff working hours and payroll details

Businesses or organisations that receive this kind of information from an EU/EEA company to provide goods or services should check how they can legally keep receiving the data from January 2021.

Are there additional steps I need to take to help my business or organisation prepare for January 2021?

There may be additional steps you need to take to help your business or organisation prepare for January 2021.

To understand the comprehensive changes for your business, use the simple tool on gov.uk/transition to get a personalised summary of the actions you need to take...

15th July 2020

The Government has published (on 13 July 2020) the plans for the UK-EU Border for Import & Export of Goods from January 2021.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/899991/200713_BPDG_-_Border_Operating_Model_FINAL_1320_edit.pdf

At 206 pages there’s a lot to take in but key points to remember:

  1. No customs declarations will be required to be lodged or tariffs paid for EU imports for the first 6 months, until 1st July 2021 BUT this is deferred and not removed.  All record must be kept and the declarations lodged and tariffs paid by July 2021.
  2. Any grace period for customs declarations and payments from the UK Government DO NOT APPLY on the EU border.  Expect full “third-country” processes the same as for US, Chinese or any other exporter.
  3. In a No-Deal scenario, UK tariffs have been reduced to zero for a lot of input goods (components etc) so there may not be additional amounts to pay – this does not remove the need for customs declarations and associated paperwork.  Full WTO tariffs will apply for exports into the EU in a No-Deal.
  4. As well as customs declarations, to qualify for any preferential or zero-tariffs that may be negotiated in a UK-EU FTA you will need to certify the origin of the product.  The process for this (self-certified or subject to third-party checks) and definition of what a UK product is (% of components and materials, value-add, change in product code) will depend on the FTA itself.
  5. There will also be customs declarations and potential tariffs payable for trade from Great Britain to Northern Ireland, at least if there is a risk of onward sale into Ireland or elsewhere in the EU.
  6. Some mechanisms to make Uk-EU trade possible are already available and should be checked, such as ensuring you have a UK EORI number.
  7. There is nothing new as such in terms of these border arrangements, which will generally mirror those currently in place for UK trade with most export destinations.  However, failure to follow the documentation requirements and use the IT systems that are promised could lead to both even more significant delays but other sanctions including fines.

     

Government Brexit Transition Guidance

13th July 2020

The Government has just published a dedicated section of gov.uk to assist individuals and businesses at https://www.gov.uk/transition .  This is for preparation for the end of the Transition Period and the UK’s current treatment as being the equivalent of an EU member state.

Most of the information to be found here is either what was previously available as ‘No-Deal’ guidance earlier this year or in 2019 and the rest is still under development.

Crucial guidance for manufacturers on, for example, UKCA product marking is still not available with less than 6 months to the date it is supposed to become a mandatory requirement.

BEAMA continues to press our Government contacts for the supply of the information manufacturing industry needs to maintain business.

 

EU Commission Deal or No-Deal Communication

The EU Commission has issued guidance to the other EU institutions on the changes that will arise from 1st January 2021, most of them applicable regardless of whether an FTA deal is reached between the UK and EU https://ec.europa.eu/info/sites/info/files/brexit_files/info_site/com_2020_324_2_communication_from_commission_to_inst_en_0.pdf.  Apart from the many changes to travel, transport and other practical issues, the introduction of customs formalities and rules of origin declarations is highlighted as a new requirement for trade between the EU and UK, in either direction, that will apply even with a zero-tariff FTA.  BEAMA members involved in EU trade and supply chains will need to prepare and BEAMA is pressing Government for guidance.

 

Brexit Update June 2020

As we approach the end of June we are reminded of the various statements of both the UK Government and EU Commission that unless substantial progress had been made in FTA negotiations and agreement reached on sensitive areas such as fisheries and financial services, the negotiations would stop and everyone would once again retreat into no-deal preparation.  Equally it is clear that there will be no extension to the Transition Period despite many calls for this to be agreed.  Following the conclusion of the latest rounds and a meeting between the Prime Minister and the Presidents of the EU institutions, we expect more frequent negotiation rounds, starting on Monday 29th June 2020, face-to-face in Brussels.

Download the full update here. 

 

Read a BEAMA Brexit update here

Following the May round of UK-EU FTA negotiations there were some considerable negative signs, including a letter published by chief UK negotiator David Frost which was highly critical of the EU’s general approach. BEAMA has provided a full update for members on the status of negotiations – download here.   

The UK left the EU on the 31st January 2020 with a deal and in accordance with that deal has now entered into a transition period that will last until 31 December 2020. During this period EU law will apply in the UK. This period will not be extended and from 1 January 2021 the UK will regain regulatory control over those areas previously regulated by the EU. Below we keep members informed of recent updates from Government on the progression of negotiations and important guidance for members on how to prepare. 

 

03.06.2020

Status update on the future of UK Chemicals Regulations post transition period 

Letter from Rebecca Pow MP on the future of UK chemicals regualtions .pdf 1

 

The Chairman of the Environment Audit Committee recently wrote to Rebecca Pow MP,  Parliamentary Under Secretary of State for DEFRA regarding the concerns raised by industry to the Environment committee regarding the future UK regulatory requirements for REACH post the Transition Period.

These concerns,  have been raised by BEAMA and other members of the UK REACH cross sector group. 

Attached here is the full reply from Rebecca Pow which clarifies the Government’s approach to establishing a UK REACH system and the development of the UK Chemicals Strategy, a commitment made as part of the UK resource and Waste Strategy. 

Some key points to note: 

  • She clarifies that the UK will establish its own independent chemicals regulatory framework, UK REACH, from 1st January 2021. This, combined with their position on not remaining within the jurisdiction of the European Courts of Justice (ECJ), means that they are not seeking associate membership of the European Chemicals Agency (ECHA and participation in EU REACH.  This is something BEAMA and other UK trade bodies pushed for but this letter clarifies this appears to be off the table as far as the current negotiations go. 
  • UK Government have already brought REACH into UK law, and made preparations for the systems and capacity needed to ensure the effective management and control of chemicals. They clarify UK REACH will retain the principles and fundamental approach of the EU REACH. Including aligning the ‘UK comply with REACH system’ with that of the existing ECHA IT system.
  • BEAMA appreciate the current lack of guidance regarding compliance with the new UK REACH system.  This would very much be along the same lines of the no-deal guidance we previously received,  although government removed that from the website once the withdrawal agreement was confirmed. So we are waiting for guidance and this is something we are pressing government on for REACH and a number of other areas of importance to our members.  DEFRA state in the letter they are carrying out a comprehensive review of their previous guidance for businesses so that have what they need to be ready for UK REACH.
  • The timescales for phased submission of data are also being kept under active review,  appreciating that businesses may find it difficult to obtain data within the 2 year period set out from January 2021.
  • In the letter it also states to support businesses to meet the separate regulatory requirements of the UK and EU markets, they aim to agree data and information sharing mechanisms with the EU, in line with the relevant provisions set out in UK and EU regulation and existing third-country mechanisms.
  • Further guidance will be provided for Northern Ireland traders placing certain highly regulated goods, including chemicals, on the Great Britain market.
  • Work on the UK chemicals strategy will resume as soon as possible  - but this has been delayed due to pressures surrounding COVID 19 and the delay in the Environment Bill.

BEAMA continues to keep pace with developments on this topic, and will continue to push for more guidance for our members to ensure you can prepare for these changes.  This isn’t the outcome our members wanted,  but we will work with you and DEFRA to ensure the transition to UK REACH can be made with as limited impact on your business.

If you have any comments on this please email [email protected]

 

20.05.2020

BEAMA write to Alok Sharma MP on how regualtory cooperation could be achieved  

EURIS has produced a paper with outline ideas for how regulatory cooperation structures could operate between the UK and EU for technical products, with full industry support.  This paper outlines the formation of a proposed Standing Industry and Government UK/EU regulatory committee/sub-committee to be established for Regulations affecting the electrical and mechanical manufacturing industry. For the UK this would assess any proposed EU legislation, or amendments to legislation, and recommend to UK Government whether these should lead to amendments in UK legislation or the creation of equivalent Regulations. 

In our letter to the Secretary of State we outline our feedback to the draft legal text on Good Regulatory Practice, and our dissapointment in Article 25.10 on Regulatory Cooperation, which as currently drafted presents a low level of ambition for such cooperation between the EU and UK on regulatory matters.  We are presenting our proposal as a means to establish stronger regulatory cooperation to ensure technical barriers to trade are not unecessarily created.  

EURIS - BEIS SoS May 2020.pdf EURIS Paper on Future Regulatory Co-operation May 2020.pdf

 

2020.05.22 

UK Global Tariff (UKGT) from 1 January 2021

The UK Government has published the UK’s new Most Favoured Nation tariff regime, called the UK Global Tariff (UKGT).  This will replace the current EU’s Common External Tariff from 1 January 2021.  UKGT will apply to goods exported from countries with which the UK does not have a preferential agreement.  Further details can be found in a summary of the publication here.

Use this service to check if the UK Global Tariff that will apply to goods you import from 1 January 2021. You can also check the difference between what you pay now and what you’ll pay from 1 January 2021.

The UK Global Tariff will apply to all goods you import from 1 January 2021 unless an exception applies. For example, if the goods you’re importing:

has a relief or tariff suspension that’s operated by the UK

Download the BEAMA summary and review here: 

UK Global Tariffs (002).docx

 

Northern Ireland Protocol

UK Government has published its approach to implementing the Northern Ireland Protocol, as part of meeting in full, its obligations under the Withdrawal Agreement with the European Union.

The command paper outlines how the Protocol can be implemented in a pragmatic, proportionate way: one that protects the interests of the people and economy of Northern Ireland, recognises Northern Ireland’s integral place in the United Kingdom and its internal market, provides appropriate protection for the EU Single Market, and respects the unique circumstances of Northern Ireland.  The paper sets out four key commitments that will underpin the UK Government’s approach to implementing the Protocol:

  • There will be unfettered access for Northern Ireland’s producers to the whole of the UK market and this will be delivered through legislation by the end of the year;
  • No tariffs will be paid on goods that move and remain within the UK customs territory;
  • Implementation of the Protocol will not involve new customs infrastructure - with any processes on goods moving from Great Britain to Northern Ireland kept to an absolute minimum so that the integrity and smooth functioning of the UK internal market is protected; and

Northern Ireland’s businesses will benefit from the lower tariffs delivered through our new Free Trade Agreements with countries like the United States, Australia, New Zealand and Japan - ensuring Northern Ireland firms will be able to enjoy the full benefits of the unique access they have to the GB and EU markets.

 

The UK’s approach to negotiations with the European Union

UK Government has recently published the legal texts covering its approach to our future relationship with the European Union (EU).  The “Future Relationship with the EU” document lays out a suite of proposals for our negotiations with the EU.  The draft legal texts are the legal articulation of this approach and have formed the basis of discussions with the EU.  The main element of our approach is the comprehensive Free Trade Agreement, or FTA, covering substantially, all trade.   You can view the documents here.

Existing UK trade agreements with non-EU countries

Information on the trade agreements the UK has already signed and our discussions with countries the EU has a trade agreement with has been updated.

Employing EU citizens in the UK

Information for employers on employing EU, EEA and Swiss citizens in the UK, covering: right to work checks, the EU Settlement Scheme and the UK’s new immigration system has been updated with information on temporary changes to the way you can check right to work documents because of coronavirus.

List of customs agents and fast parcel operators

Updated with additional customs agents and fast parcel operators who can help submit customs declarations from 1 January 2021.

Financial services legislation under the EU (Withdrawal) Act 2018

Updated with Trade Repository Registration Arrangements under the UK Securities Financing Transactions Regulation document.  HM Treasury’s programme of secondary legislation to ensure that the UK continues to have a functioning financial services regulatory regime in all scenarios, when the UK leaves the EU.

 

2020.03.10  BEIS clarification on the use of UKCA mark during the transition period  

A number of members have asked for clarification of the Government position regarding the use of UKCA mark during an post the transition period. See below for their full response.  This indicates that there is more certanty that the UKCA mark will be in use in the UK after the transition period on the 1st January 2021. There will be a time period (yet to be determined) that will still allow for the acceptance of CE mark in the UK post this date and this will be consulted on with industry.   

It’s theoretically possible that full mutual recognition could be agreed as part of the EU FTA, but this is looking less likely at this stage. 

BEIS update:  

The UK has left the EU and has entered a transition period until 31 December 2020 while we negotiate the future trade deal. During this period the arrangements that existed before the UK left the EU will continue to apply. This means the UKCA marking will not be required during the transition period.

However, this does not mean that a product bearing the UKCA marking is non-compliant. Products with the UKCA marking can be placed on the UK market so long as they also carry the CE marking (if required, i.e. you are also placing the product on the EU market) and the UKCA marking does not impact the visibility of this. This is because the UKCA mark cannot be used as a product conformity mark during the transition period as it has no legal effect.

The exact requirements after the end of the transition period will in part depend on the outcome of negotiations with the EU on our future trading relationship. We will publish further guidance in due course. However, the UKCA marking will come into force at the end of the transition period so you may wish to prepare now for its use.

The design of the UKCA mark won’t change (as per previous guidance) and it will be recognised as the UK product conformity marking after the transition period. The requirements for affixing the UKCA immediately after the end of the transition period will mirror those for the CE marking.

In the meantime, you can sign up to email updates about the transition period on the GOV.UK website: https://www.gov.uk/transition 

 

2020.03.04 Imigration system update from BEIS  

Ending Freedom of Movement

  • We will end free movement on 1 January 2021 and introduce a single global immigration system which prioritises the skills people have to offer and how they will contribute to the UK’s economy, not where they come from.
  • The system will require and award points for a job offer at the appropriate skill level, the ability to speak English and meeting the appropriate salary threshold, which will be set at £25,600 as recommended by our independent migration experts.
  • We have already introduced special schemes to support more scientists, graduates, NHS workers and people in the agricultural sector to come to the UK more easily
  • The points threshold will be set high to genuinely attract the brightest and the best, and 70% of EU workers currently here would not meet the new threshold.

Low skilled workers

  • The Government has listened to the clear message from the 2016 referendum and the 2019 General Election that the public wants a reduction in low-skilled immigration, so we will not introduce a general low-skilled or temporary work route.
  • Except in some limited circumstances, everyone coming to the UK for work or study will need a visa and to pay to access the NHS.  
  • And we will crack down on illegal migration and criminal activity at the border. This includes phasing out the use of insecure EU ID cards for new migrants and toughening border checks to stop serious criminals entering the UK and to remove those who abuse our hospitality.

Industry will need to adjust

  • Employers will need to join our mission to level-up skills and economic-growth across the whole of the United Kingdom. 
  • There are 8 million people economically inactive in the UK. It is time for employers to invest in the people already here and make jobs more attractive for UK workers.
  • These significant changes are vital if we are to deliver a high-skill, high-wage and highly productive economy, and by providing certainty on the new immigration system now, the economy will be given time to adjust.

Conclusion

  • Our new, fair and firm system will send a message to the whole world that Britain is open for business as we continue to attract the brightest and best from around the world, but with a system we have control over.
  • We have already guaranteed the rights of EU citizens and their families living in the UK before the end of 2020. The EU Settlement Scheme – the biggest scheme of its kind in British history - has already received 3.2 million applications and is a success.
  • For the first time in decades, the UK will have full control over who comes to this country and how our immigration system operates.

 

2020-02-19 EU ecodesign and energy labelling requirements during transition period

EU requirements that take effect during the transition period will apply automatically in the UK and will be incorporated into UK law at the end of the transition period. For example, new EU requirements for external power supplies (Regulation (EU) 2019/1782) which apply from 1 April 2020 will have automatic application in the UK and will continue to apply after 31 December 2020.

This means they will not be introducing the draft Ecodesign for Energy-Related Products (External Power Supplies) Regulations which we consulted on between September and October last year. These UK Regulations were prepared in the event the UK left the EU on 31 January without a deal (see consultation for additional information).

For further information on Ecodesign and Energy Labelling requirements during the Transition Period and from 1 January 2021, please refer to the Technical Notice here.

BEIS Stakeholder meeting - eco design and energy labelling -  6th March 10am -1pm 

Yselkla Farmer from BEAMA will be joining this meeting and will provide a full report to members following.  members are invited to join on the phone if they wish.  Trade associations will be present at the meeting with BEIS. 

Dial in Details

Dial in number : 03306068580

Conference code :4243581080

 

2020-02-19 BEIS Freeports Consultation 

See update and details from BEIS below:  

Freeports Consultation.pdf

Earlier this week, the Chancellor of the Duchy of Lancaster delivered a speech where he confirmed that from 2021, all goods entering Great Britain from the EU will be subject to the same checks and controls as goods coming from any other country in the world. For full details please see the Chancellor of the Duchy of Lancaster’s speech at the UK Border conference with industry representatives on GOV.UK.

This reiterates, as the Prime Minister set out in his speech on 3 February, that we will be leaving the customs union and single market at the end of 2020. We will not seek alignment with the EU on trade. This means that there will be new processes that exporters and importers of EU goods will have to comply with, whether we reach a new trade agreement or not. 

Businesses will need to prepare for life outside the EU and many have already done so. We recognise that putting in the same controls as we already have for the rest of the world will present significant challenge for businesses and government. We want to work with you to ensure your views are represented in this development.  

Government will continue working to design customs and other arrangements at the border that ensure legitimate goods can continue to flow into the country and delays are minimised. This will also include examining how Freeports can offer opportunity for innovative customs technologies to be trialled in controlled environments.

In addition, a public consultation on Freeports policy was launched. It will last until 20 April 2020.

Up to 10 Freeports will be introduced across the UK, which will be national hubs for trade, innovation and commerce, helping us form partnerships with old allies and new friends around the world. Freeports will unleash the potential of our proud historic ports, regenerating communities across the UK. They can attract new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country.

Customs intermediaries will be crucial in ensuring businesses are ready to make customs declarations. HM Revenue and Customs has also announced today the extension of the deadline for businesses to apply for customs support funding to 31 January 2021.

 

2020-02-13 BEAMA consultation - future of REACH under an EU FTA  

We are consulting our members on the position we take forward during the EU FTA negotiations,  and importantly outlining industry views and supporting evidence on the future REACH system in the UK. For us to take forward a robust case in the negotiations for close alignment of UK REACH with the EU system we need a lot of evidence outlining the cost implications of diverging from the existing EU system.  We are also looking to gathering a better understanding of our member's supply chains for restricted substances under REACH and how these will be affected by Brexit and a divergent UK REACH system. 

We encourage all members to read the briefing document provided below and reply to the online survey to help us in this process.  The deadline for responses in the 2nd March.  If you have any questions please email [email protected].  

https://www.surveymonkey.co.uk/r/38RTY53 

 BEAMA member consultation briefing- REACH post brexit .pdf

 

2020-12-02 CE marking and conformity assessment

During the transition period, the requirements for placing CE marked goods on the UK and EU markets will remain the same as now. This includes the arrangements for conformity assessment, marking and labelling. If you currently use a UK Notified Body, you can continue to do so during this period.

The UKCA marking, which is intended to indicate compliance with UK rules in the same way the CE marking does for EU rules, will not come into effect during the implementation period. The CE marking will continue to be required, however BEIS have clarified businesses can still place the UKCA marking on their products as long as the CE marking is also used.

For further information on using the CE marking, please refer to the following guidance: https://www.gov.uk/guidance/ce-marking

The previous proposal for a UKCA mark were set out under the no-deal planning, and we await confirmation of the UK Government’s position on these future arrangements as they will be applied at the end of the transition period, this will be dependant on negotiations with the EU

BEIS are now gathering evidence on the future CE marking and conformity assessment system to exist following the transition period.  This is an important opportunity for BEAMA member companies to input into their evidence gathering which will inform their final position. 

https://www.smartsurvey.co.uk/s/BEISPRODUCTSAFETY/

If you have any questions about goods regulation, please do not hesitate to contact us at [email protected].

 

2020-12-02 BEIS consultation on proposed UK tariff arrangements from 01 January 2021. 

https://www.gov.uk/government/consultations/the-uk-global-tariff

This consultation will close on the 5th March

This consultation is intended to apply to EU trade only if we have a no-deal scenario (non-negotiated outcome) at the end of 2020 and will not apply where the UK has a new or rolled-over FTA in place with any other country.  Broadly speaking, in contrast to previous government plans, the plan is to apply the WTO MFN tariff to imports but there will be substantial exceptions that will mean for many products in our industry sector tariffs will be removed entirely.

These exceptions will presumably simplify customs arrangements and so potentially reduce administration and delays.  In some cases, e.g. the proposal to remove tariffs on intermediate goods, it may mean that an increase in costs for UK manufacturers importing components will be avoided.  In others, e.g. removing all tariffs under 2.5%, it may mean that overseas imports from outside the EU will gain a new price advantage that could affect the competitiveness of domestic production.

We would be grateful if members could respond directly to this consultation,  and if you able to please send a copy of your response to [email protected] by the 2nd March to inform the collective BEAMA response which will be submitted to BEIS on the 5th March.  BEAMA will also be inputting into the EURIS response to this consultation.