24 October 2019

Brexit Update – Friday 25 October 2019

With less than a week before the UK is due to leave the EU, the EU is expected to respond today to the Prime Minister's (albeit unenthusiastic) request for an extension. A delay to the end of November will give the PM more time to try and get his Brexit deal through Parliament. A longer delay will see the Government table a motion early next week to try for a General Election before Christmas. Two thirds of MPs need to support an election for it to go ahead. The proposed date is 12 December, making it the first December election since 1923.

What's in the new deal?

The new deal struck on Thursday 17 hinged around replacing the controversial Irish backstop which scuppered Theresa May's attempts to make Brexit happen.

The new deal will see a legal border between Northern Ireland and the Republic of Ireland. But in practice the customs border will be between Great Britain and the island of Ireland, with goods being checked at 'points of entry' in Northern Ireland.

Duty won't automatically have to be paid on goods coming into Northern Ireland from Great Britain. But if a good is at risk of then being transported into the Republic of Ireland (i.e. the EU), then duty will have to be paid. It's likely that if a good is deemed at risk of entering the EU, the importing firm in Ireland will pay the tax, but if the good ends up staying in Northern Ireland, the tax will be refunded by the UK.

On the matter of regulation, Northern Ireland would keep to the rules of the EU's single market, rather than UK rules. This means product standard and safety checks won't have to be carried out at the border between the Republic of Ireland and Northern Ireland. It will, though, add to checks between the rest of the UK and Northern Ireland, as the rest of the UK won't be sticking to EU single market rules. The deal gives the Northern Ireland Assembly - assuming it's sitting again - a vote, no earlier than January 2025, on all of this.

The Transition Period, during which the UK will need to abide by EU rules and pay into the EU budget, but will lose membership of its institutions, is still set to last until the end of December 2020.

To read the new deal, please click here.

Get ready for Brexit - live webinar with HMRC

This live webinar provides an overview for UK businesses involved in the movement of goods between the EU and the UK.

- Why it's important to apply for an Economic Operator Registration and Identification number (EORI)
- What Transitional Simplified Procedures are
- How to prepare to make customs declarations
- What Entry Summary Declarations are
- How to pay the correct Customs Duty and VAT

You'll have the opportunity to ask questions during the webinar using the on-screen text box.

Next webinar - Tuesday 29 October, 9-10am or 3-4pm

Register for the webinar.

Keeping you updated

As usual, our next Brexit Bulletin will be circulated at the end of the month. Make sure you and your colleagues are on the mailing list by logging into the members’ area of the BPIF website or contacting your Regional Director.

Remember, you can read all our previous monthly Brexit Bulletins online on our website, and find information relevant to you in the following sections:

Importing & Exporting

Northern Ireland

No-Deal Scenario

Employment

Running Your Business

Funding

Other Resources