Summary of EU Exit Business Readiness Forum meeting on 16th May

Please find below summary notes from the EU Exit Business Readiness Forum meeting on 16^th May:

Panellists

• Donna Leong, Director of EU Exit Business and Stakeholder Engagement, BEIS
• Oliver Newton, Stakeholder Engagement Team, the Department for exiting the EU (DExEU)
• Steven Scott, Communications Team, the Home Office (HO)
• Jovan Tojagic, Senior Policy Advisor, Department for International Trade
• Ashleigh Lamming, Department for International Trade.

The Department for Business, Energy and Industrial Strategy (BEIS) held their eleventh EU Exit Business Readiness Forum meeting Thursday 16^th May at BEIS central London offices in Victoria. Due to the extended Article 50 period the BEIS Business Readiness Forum meetings will be held on a monthly basis with the next meeting scheduled for Thursday 13th June. The forum will also be available via webinar. In the meantime, BEIS will issue updates on a weekly basis as & where information has changed.

The forum was hosted by Donna Leong, Director of EU Exit Business and Stakeholder Engagement, BEIS with panellists Oliver Newton (DExEU) and Steven Scott (HO) with Jovan Tojagic (DIT) and Ashleigh Lamming (DIT).

The Forum, aimed primarily at representative organisations such as trade associations and professional bodies, has 3 main objectives - to share the information UK businesses need to prepare for EU Exit; to provide materials to association bodies to cascade to members; and to respond to and gather feedback on existing and new materials circulated in readiness for the UK’s withdrawal.

Parliamentary Update – Oliver Newton

As per the previous session, the requested extension of the Article 50 period to 30^th June by the PM was further extended to the 31^st October by the EU, who expressed doubts as to whether the UK could come to an agreement by the suggested June date. During this time period, the UK will remain a full and active member of the EU as it is now.

One of the next steps is to pass the EU Withdrawal Bill through both houses, which the government is aiming to do in early June, with a view to leaving the EU before the summer. The Bill enshrines the EU Withdrawal Agreement, including any backstop arrangements, into UK domestic legislation.

Whilst the Bill can be amended, major change is “not expected”.

As the UK has not been able to ratifying the withdrawal deal the UK is required to participate fully in EU parliamentary elections.

It is important to note that whilst the exit date has been moved, the implementation or transition period has not. This date remains as December 2020 as per the EU Withdrawal Agreement and the EU members have confirmed on multiple occasions that they will not re-open the agreement.

EU Settlement Scheme – Steve Scott

The EU Settlement Scheme is now fully open and EU/EEA citizens and their families who are resident in the UK will need to apply to remain in the UK after the UK leaves the EU, regardless of whether there is a deal or not.

The system is described as simple to use, with turnaround times typically between 1 and 3 days in cases where no further documentation is required. The record application time is just 8 minutes.

The scheme was trialled in 3 pilot stages, the first involving 1000 applicants from NHS trusts in the North West of England; followed by a second stage involving 29,987 applicants from the health, social care and higher education sectors and finally the public stage three involving the first 200,000 users. This last stage was undertaken between January and March 2019. It is estimated that around 3.5 million applications will need to be processed in the next 2 years.

To date around 95% of applicants have been successful with the department stressing that they were looking for reasons to approve, as opposed to reasons to reject.

EU/EEA Citizens already in the UK will be able to apply to the EU Settlement Scheme to continue living, working and studying in the UK. The type of status awarded, Pre-Settled or Settled status will be dependent on the amount of time that person has spent as resident in the UK.

Those with at least 5 years continuous residence (1 year continuous residence defined as at least 6 months in any 12 month period) will be eligible to apply for settled status, a stepping stone to citizen status.. Those with less than 5 years’ continuous residence will be eligible for pre-settled status, a stepping stone to settled status.

The deadline for applying to the scheme will be 30 June 2021 if the UK leaves with a deal, or 31 December 2020 if the UK leaves the EU without a deal.

In the event that the UK leaves with a deal an EU/EEA citizen will need to be resident in the UK by exit day, or resident in the UK as of 29^th March 2019 if the UK leaves without a deal.

Whilst Irish citizens do not need to apply to the settlement scheme to benefit from protected rights, they are free to do so. Non-Irish or non-British family members of Irish citizens will need to apply to the EU Settlement Scheme if they want to stay in the UK after 31 December 2020.

Regardless of whether the UK leaves with or without a deal, the current right to work checks employers are required to make apply to the end of 2020.

The Home Office has been engaged in a broad marketing campaign to ensure citizens are fully aware of and understand the new scheme. https://eucitizensrights.campaign.gov.uk/ and all available information has been translated into all EU languages.

Support and advice can be sought from the EU Settlement Scheme Resolution Centre which can be contacted either from within the UK on 0300 123 7379 or from outside the UK on +44 (0)203 080 0010.

All lines are open from Monday to Friday (excluding bank holidays), 8am to 8pm and at the weekend (both Saturday and Sunday), 9:30am to 4:30pm.

To help employers offer support to staff who may need to apply to the scheme, an EU settlement scheme employer toolkit is available at here

No-Deal Tariffs – Jovan Tojagic

Attendees were assured that the Department for International Trade is continuing to work with current partnerships to maintain trading agreements in the event the UK leaves the EU without a deal. In March, the EU agreed that the UK would continue to be treated as a full member of the EU during any transition period.

In the event that the UK leaves the EU without a deal, the EU has made it clear that the UK will be treated as a “third country” and WTO rules would apply. The UK government has prepared a Temporary Tariff Policy (TTP), which will come into effect in the event of a “no-deal” scenario and apply for up to 12 months while consultation and review of trade agreements takes place. It is important to note that to avoid challenges at the border between northern Ireland and Eire, any TTP will not apply.

Under the temporary scheme, approximately 87% of total UK imports by value would be eligible for zero-tariff rates. Currently, approximately 80% of imports are tariff free.

When considering trade agreements, the government has stressed its commitment to seeking continuity for existing EU trade agreements and is exploring a range of options in the event the UK leaves the EU without a deal. The UK has signed continuity bilateral trade agreements with non-EU countries to enable trade to continue with minimal disruption after the UK leaves the EU and these agreements have replicated the EU trade agreements as far as possible.

Further information on trade agreements can be found at here

WTO Disputes - Ashleigh Lamming

For the past 15 years the EU and USA have been locked in a dispute over development fund investment which may now be reaching a conclusion. Following adoption of the WTO’s final compliance report dispute, the EU is running a public consultation to assess the impacts of the proposed additional tariffs and business stakeholders are invited to share their views by 31 May 2019. To respond to the consultation, go to the Commission website.

Boeing dispute

• In 2004, the EU launched a dispute at the World Trade Organization (WTO) challenging US federal, state and local subsidies to Boeing.
• The WTO’s Dispute Settlement Body adopted a report on 11 April 2019 which confirms that the US has not taken appropriate action to comply with WTO rules on subsidies.
• Following this report, the EU has prepared a list of products on which it is considering imposing additional tariffs against the US in retaliation for the US compliance failures in the Boeing WTO dispute.
• The list of products on which the European Commission is considering applying additional tariffs can be found here
• In 2004, the EU launched a dispute at the World Trade Organization (WTO) challenging US federal, state and local subsidies to Boeing.
• The WTO’s Dispute Settlement Body adopted a report on 11 April 2019 which confirms that the US has not taken appropriate action to comply with WTO rules on subsidies.
• Following this report, the EU has prepared a list of products on which it is considering imposing additional tariffs against the US in retaliation for the US compliance failures in the Boeing WTO dispute.
• The list of products on which the European Commission is considering applying additional tariffs can be found here

The EU cannot apply tariffs immediately and will wait for the outcome of arbitration proceedings (taking around a year) before imposing tariffs. This is consistent with the established rules of the World Trade Organization governing retaliation following a WTO dispute.

Airbus dispute

• A parallel WTO dispute was launched by the US against the EU in 2004 challenging support provided to Airbus by France, Germany, Spain and the UK.

• In April this year, the US published a list of products on which the US is considering imposing additional tariffs against the EU as a result of the Airbus dispute. The preliminary list of products can be found here.
• Together with its European partners, the UK has complied fully with WTO rulings regarding its support to Airbus. The Department for International Trade will continue to work closely with the EU to challenge the US’s right to impose any tariffs on the UK and its partners.
• A parallel WTO dispute was launched by the US against the EU in 2004 challenging support provided to Airbus by France, Germany, Spain and the UK.
• In April this year, the US published a list of products on which the US is considering imposing additional tariffs against the EU as a result of the Airbus dispute. The preliminary list of products can be found here.
• Together with its European partners, the UK has complied fully with WTO rulings regarding its support to Airbus. The Department for International Trade will continue to work closely with the EU to challenge the US’s right to impose any tariffs on the UK and its partners.

UK position

A negotiated settlement to the Airbus and Boeing disputes remains the UK’s preferred outcome. Both the EU and the US have said that their preference is for a negotiated solution to the disputes. The Department for International Trade will continue to work closely with the European Commission and EU Member States to help to bring an end to the disputes and avoid the imposition of retaliatory tariffs.

Responding to the EU consultation

Stakeholders are encouraged to submit comments directly to the European Commission on the products proposed by the EU for additional tariffs via the Commission website.

The UK will also make representations to the Commission through its own response as a Member State and would welcome stakeholders views, as well as any queries, via email to: trade.disputes@trade.gov.uk.

Recent Announcements

NEW Update

The Government will put the Withdrawal Agreement Bill to a vote in the week beginning 3 June. Further updates will be provided in future bulletins.

Tools & Resources

NEW - Applications for Queen’s Awards for Enterprise 2020

Applications for the Queen’s Awards for Enterprise 2020 opened on 1 May 2019 and close on 10 September 2019. They are free to enter, and it is a self-nominating process. For more information and to apply, visit www.gov.uk/queens-awards-for-enterprise and don’t forget to let your stakeholders know that the applications are open.

NEW – Airbus/Boeing Dispute and the EU Consultation on Countermeasures

The European Commission has launched a public consultation on a preliminary list of products from the United States that may face countermeasures in response to the Airbus/Boeing disputes.

Further information is here.

Workforce and People

NEW - Home Office have published guidance on organisations funded to provide support to vulnerable and at-risk EU citizens applying to the EU Settlement Scheme: EU Settlement Scheme: community support for vulnerable citizens

Update - Home Office have updated the locations where you can go to get your biometric ID document scanned if you do not have an Android device with near field communication (NFC): EU Settlement Scheme: ID document scanner locations

NEW - Home Office published a report on the public test phase of the EU Settlement Scheme: EU Settlement Scheme public beta testing phase report

NEW - Home Office published a response to an inspection of the EU Settlement Scheme: Response to an inspection of the EU Settlement Scheme

Home Office updated guidance on the EU Settlement Scheme, ID document scanner locations. Updates - New ID Document scanner locations added: EU Settlement Scheme ID Document Scanner Locations

Home Office updated guidance on current expected processing times for applications to the EU Settlement Scheme. Updates - processing times: EU Settlement Scheme: application processing times

Recent Announcements

Importing and Exporting

Department for International Trade have a list of the trade and mutual recognition agreements the UK has signed with non-EU countries. Update – the Andean countries (Columbia, Peru, Ecuador) have been added to the list: Signed UK trade agreements transitioned from the EU

Getting the right licence, where you can import from, and the checks your consignment must pass at a border inspection post (BIP). Update includes link to EU Exit guidance: Importing live animals or animal products from non-EU countries

Information on the ‘Written Confirmation’ process, for active substances manufactured in the United Kingdom (UK), that will be adopted in a no deal scenario. Update published an updated Register of Written Confirmations for UK Active Substance Manufacturers: Exporting active substance manufactured in the UK in a no deal scenario

NEW - Department for International Trade published guidance explaining changes to exporting goods and services from the UK if we leave the EU with no deal - country by country guides: Exporting after EU Exit – Country by Country

Department for International Trade updated the consultation outcome to identify UK interest in existing EU trade remedy measures. Updates - Amendments to paragraph 27, 30 and table amendments: addition of Biodiesal AS644 and removal of low carbon ferro chrome: Call for evidence to identify UK interest in existing EU trade remedy measures

HM Revenue & Customs updated Notices Made Under the Customs (Import Duty) (EU Exit) Regulations 2018.

Updates – The address to send the SP1 and SP5 forms has been updated and the C&E48 form has been updated:

Notices Made Under The Customs (Import Duty) (EU Exit) Regulations 2018

Public Procurement

Cabinet Office updated guidance information for public authorities, businesses and other organisations on the outcome for public procurement policy in a no-deal Brexit scenario.

Updates - ‘Wax digital’ was added to the list under ‘what contracting authorities need to do now’ has been updated: Public-sector procurement after a no-deal Brexit

Business Support

Training Grants

As part of an £8 million investment to support training and automation in the customs intermediaries sector, a £5 million grant scheme opened in December 2018, lasting until 31 May 2019.

>span class="normaltextrun">support customs intermediaries and traders with training and IT costs ahead of the UK leaving the EU. Increased capacity in this sector will be important whatever our future relationship with the EU. Applications for the training grants are strongly encouraged and grants are available to intermediaries and traders completing customs declarations, or intending to complete customs declarations in the future.

The training grant could be used to support a business that is extending and taking on new staff, or to help train an existing employee to start completing customs declarations for the company. Training can be delivered by an external provider, or an in-house trainer. The grant can also be used towards the cost of the new modular customs declarations training course which was launched in March as part of the Government’s wider investment in the sector.

More information on how businesses can apply, and a link to the online application page are available on GOV.UK. Interested businesses are urged to register on the grant application page no later than Friday 24 May to allow time to complete their application by the deadline.

Business Support Helpline

The Government’s Business Support Helpline is a national service for all businesses or aspiring business owners in England. Their impartial advisors can answer business owners’ questions, whether starting up or already a small business based in England. The Helpline also provides complementary information to what is available on GOV.UK.

• England - the Business Support Helpline can be contacted free of charge for advice on 0300 456 3565, enquiries@businesssupporthelpline.org or via social media on webchat, Twitter, Facebook or YouTube
• Scotland - contact the Business Gateway for free advice on 0300 013 4753 or online here, they have regional offices and a live chat option available
• Wales - contact the Business Wales Helpline on 0300 060 3000 or online here
• Northern Ireland - contact Invest Northern Ireland on 0800 181 4422 or online here

The British Business Bank

The British Business Bank is a Government-owned, independently run development bank that’s helped more than 74,000 growing businesses find the right finance option to help them reach their next ambition. The Finance Hub has been created to help businesses understand and discover the finance options that could enable them to grow. Further details are available at here.

The Start-Up Loan Company is subsidiary of the British Business Bank and delivers the Government’s Start Up Loans programme, providing finance and support for businesses who struggle to access other forms of finance. Start-Up Loans, a government-backed scheme, helps individuals start or grow a business in the UK. Alongside the low-interest loan, successful applicants can access free mentoring from experienced advisers. Further details are available at https://www.startuploans.co.uk/

EU Funding

During the extension period, the UK remains a full member of the European Union and as a result certain types of funding remain available. When the UK leaves the EU, the government has guaranteed that it will cover existing funding for certain projects that would have been funded by the EU under the 2014-2020 programme period. This funding will cover programmes including Horizon 2020, Euratom Research & Training, ERDF and ESF grants. To guarantee Horizon 2020 funding companies need to register on the UKRI portal. For further details and information on how to register please see here.

Department for Business, Energy and Industrial Strategy - Sector Primers

These sector primers aim to bring together on one webpage the top 3 – 5 issues for each sector and provide guidance.

The primers link through to more detailed material elsewhere on GOV.UK.

Sectors covered include:

• Chemicals
• Construction and Housing
• Consumer Goods
• Electronics, Machinery & Parts
• Parcel Delivery Services
• Professional & Business Services
• Research & Innovation
• Retail
• Chemicals
• Construction and Housing
• Consumer Goods
• Electronics, Machinery & Parts
• Parcel Delivery Services
• Professional & Business Services
• Research & Innovation
• Retail

Association members can find details of all previous forum meetings and further information on preparations for a potential “no-deal” Brexit including links to relevant documents and sources on .Gov/ HMRC platforms, information on importing, exporting and transporting goods, trading goods covered by the “New Approach” framework (CE marking directives), trading timber products and chemicals can be found here

Links to: