ABOUT THIS TECHNICAL ADVICE PAPER
The information within this paper is based on the best
known currently. Since the subject of
Brexit and its potential outcomes is so volatile, even on an almost daily
basis, we must caveat this communication by stating that it represents our
current understanding and opinion only.
We accept no liability for any actions taken based on the content
herein. Nevertheless, Hellmann will
naturally make every effort to support its customers in understanding both the
opportunities and challenges Brexit doubtless presents.
This technical advice paper draws on information published by the UK government, new and nascent legislation and our own research.
The ‘no deal’ guidance [see section 27] issued by the UK government should not be taken as the whole or final picture. We have noted significant gaps in the guidance which we assume exist because giving answers may prejudice ongoing UK-EU negotiations. Equally, there should be no assumption that if a deal is struck, there will not be implications with regards to official intervention in the movement of goods between the UK and the EU post Brexit. Government announcements in early 2020 make it clear that the official position is quite the contrary.
For example, if a trade deal is struck, it may be in relation to a Free Trade Agreement [see section 16] only. The Customs Bill [see section 8] repeals ‘acquisition VAT’ [see section 9] and a mechanism for recording import and export of cargo will be required in particular to create a duty point and advise basic consignment information. As things stand this mechanism must be assumed to be a frontier Customs declaration. This would create a position similar to that which existed before the Single Market came into existence on 1st January 1993.
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