Brexit

1. BREXIT QUESTIONS AND ANSWERS
Question Asked Response
Business Travel
How long does a green card last for? This question is best answered by the Insurance company providing the insurance as they may have
their own specific rules.
As an example, please note information provided below by Allianz
‘Green Cards provide a guarantee of insurance cover for a minimum of 15 days and can
remain valid until the expiry date of the motor insurance policy’.
If I do get a Green Card, how long will it remain valid for? - Allianz
https://www.allianz.ie › car-insurance › faqs › how-long-is-a-green-card-vali...
Customs Procedures and Incoterms
Where can I find out more information about
Customs grants?
Please see the following link for details of grants for businesses that complete customs declarations
https://www.gov.uk/guidance/grants-for-businesses-that-complete-customs-declarations
What is a Binding Tariff Information (BTI) and how
do I obtain one?
A Binding Tariff Information (BTI) decision is a written tariff classification of the goods. Whilst it is
not a legal requirement it does provide assurance that goods have the correct commodity code.
The BTI decision is legally binding on all EU customs administrations.
A BTI can be obtained from
https://www.gov.uk/guidance/apply-for-a-binding-tariff-information-decision-notice-600
I am currently selling on ExWorks to Europe, are
there any implications from Brexit?
If businesses are selling under ExWorks Incoterms to Europe the responsibility is with the European
buyer to collect and load the goods onto the lorry at the UK seller’s premises. The European buyer
is also responsible for making the UK Customs outbound declaration.
The UK seller should make clear to the European buyer of their responsibilities, in order that the
buyer can make appropriate arrangements should they be required post Brexit.

2. 2
Question Asked Response
I am currently selling on Delivered Duty Paid to
Europe, are there any implications from Brexit?
If businesses are selling on Delivered Duty Paid (DDP) Incoterms to Europe it is their responsibility
to deliver the goods to the named place on the country of importation, which could be the
European buyer’s premises.
The UK seller bears responsibility for any tariffs applicable. It is also expected that the UK seller
clears the goods for customs clearance at both export and import. If customs declarations are
required if the UK leaves the European Union this will require the UK seller to make customs
declarations in the UK and in the European Union.
The seller will require a European EORI number and a European VAT number, obtained from a
customs authority in the European Union.
What is Inward Processing?
-will it be of any benefit to my business?
Inward processing means that non-European Union goods are imported in order that they can be
used in the customs territory of the European Union in one or more processing operations, for
example for the purposes of manufacturing or repair.
A UK business can use Inward Processing to obtain relief from Customs Duty and Import VAT for
goods that are imported from outside the EU and then exported outside the EU.
Inward Processing is subject to authorisation by HMRC.
Further information is available from
https://www.gov.uk/government/publications/notice-3001-special-procedures-for-the-union-
customs-code/annex-d
Why is it important to maintain Proof of Export?
-what is required as part of demonstrating Proof of
Export?
Businesses require documentary evidence of goods leaving the EU to zero rate their exports. This
can be commercial or official evidence. If businesses do not provide this information in time they
will have to account for the VAT on their return. Evidence must be retained for 6 years and shown
to HMRC if they request to see it.
Further information on this requirement can be found at:
https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad

3. 3
Question Asked Response
Data Flows
We get data from businesses in the UK & EU. All
our terms are GDPR compliant currently. Do we
need any additional contracts/terms for UK
customers? What about for EU customers (e.g.
must we incorporate the Standard Contractual
Clauses) for sharing EU data to the UK?
Please see link two below from the ICO providing specific details on actions required.
You must incorporate standard contractual clauses – please see links below
If you are a larger business, you may be able to implement Binding Corporate Rules. If this is the
case, please see ICO advice for larger businesses
https://ico.org.uk/for-organisations/data-protection-and-brexit/data-protection-and-brexit-for-
small-organisations/
https://ico.org.uk/for-organisations/data-protection-and-brexit/data-protection-and-brexit-for-
small-organisations/uk-businesses-and-organisations-who-send-or-receive-data-to-or-from-
europe/
GDPR and our ability to hold our Republic of
Ireland staff’s personal data in the UK if there is a
no deal Brexit - are there issues/changes?
Yes, the same issues arise for employees’ personal data as they do for the data of personal
customers in the EU. Please see guidance from the Information Commissioners Office
Regarding EU nationals that we have working for us:
if we leave on the 31st are we allowed to hold data
on them? e.g., bank account, address etc so that we
can pay them. Or will we have to do something to
be allowed to hold this information? The
information will not be shared outside of the UK.
Please see following links from the Information Commissioners Office. You need to take actions as
noted in the links and review the validity of Standard Contractual Clauses.
There are actions to take here.
https://ico.org.uk/for-organisations/data-protection-and-brexit/data-protection-and-brexit-for-
small-organisations/uk-businesses-and-organisations-who-send-or-receive-data-to-or-from-
europe/
https://ico.org.uk/for-organisations/data-protection-and-brexit/keep-data-flowing-from-the-eea-
to-the-uk-interactive-tool/

4. 4
Question Asked Response
Employee Retention and Recruitment
If a member of staff gains settled status, do we need
to physically see the document?
Please see link below with respect to employer and the EU settlement scheme
An extract of a part of the information is as follows;
Quote
It is the responsibility of the individual to make an application to the EU Settlement Scheme. There
is no requirement for the individual to inform you, as an employer, that they have applied or the
outcome of their application. Likewise, you are not required to check that an employee has applied.
Unquote
https://www.gov.uk/government/publications/eu-settlement-scheme-employer-toolkit/toolkit-
introduction-how-to-use-the-employer-toolkit-in-your-organisation-or-network
University pipeline and the fact university students
will now be allowed to stay in the UK for two years
after graduation to find a job, down from four
months. Does that apply to people graduating now
(sep/oct 2019
This applies for students commencing their courses next year in the 2020/2021 academic year.
There have also been announcements of a fast-tracking service for Scientists. We can provide further
information here if required.
Two of our staff are EU nationals who are reluctant
to apply for settled status until the terms of the
Brexit deal are clear. How do we encourage staff to
apply?
EU nationals have until the 31st December 2020 to apply to the EU settlement scheme and to date
1.5 million EU nationals have successfully applied.
In terms of encouraging EU nationals to apply there are benefits in them ensuring certainty
around having successfully applied to the scheme.
Imports
I would like info on temporary import tariffs Information on temporary import tariffs can be found at
https://www.gov.uk/government/news/temporary-tariff-regime-updated

5. 5
Question Asked Response
Intellectual Property Protection
What impact might there be with regard to
intellectual property created by collaborations
between EU and UK Universities under EU funded
projects?
In a joint venture it is important to agree on both:
-existing Intellectual Property
-initial and ongoing contributions of each party to the joint venture
Responsibilities and obligations should also be agreed
Legal advice should be considered with respect to specific contractual arrangements.
If licensing or assigning an intellectual property right, future issues may arise if the joint venture
parties do not follow legal guidance.
As always due diligence must take place on joint venture partners.
Regulation and Compliance
We import an electrical product from a third
country which is CE marked by the Manufacturer in
that third country, will we be able to sell this within
the EU without re-certification. also, to sell the
product in the UK what steps will we have to take?
Is the third country in the European Union? If not, then the CE Marking requires to be in the
European Union.
A number of UK notifying bodies have established legal entities in the European Union to enable
them to CE Mark from within the European Union.
Please see following link;
https://www.gov.uk/guidance/placing-manufactured-goods-on-the-eu-internal-market-if-theres-
no-deal#new-approach-goods
To sell the product in the UK you will need to consider the new UKCA marking. Please see the
following link with information
https://www.gov.uk/guidance/placing-manufactured-goods-on-the-uk-market-if-theres-no-brexit-
deal#new-approach-goods
Currently we self-certify some of our products for
sale in the EU. We have setup a subsidiary in the
Netherlands to deal with the importation issues for
our European dealers, could this company now
self-certify our products for EU sale?
A company based in the EU can self-certify.
There are some products however which require to be certified by a third party such as high-risk
machinery.
Please see following link
https://cemarking.net/ce-self-certification/

6. 6
Products that are currently CE approved (self-
certification) and are currently on sale in the EU do
not need further EU certification to keep them on
sale after Brexit?
I understand that new products introduced after
Brexit would need to be certificated by an EU
certification body as elf certification will cease.
Please note that in the event of the UK leaving the EU, conformity assessment carried out by UK
conformity assessment bodies will no longer be recognised by the EU. This applies even if the
assessment was carried out before the UK leaves the EU, unless the product has already been
placed on the market in a remaining EU country.
If you are placing a good on the market that requires third-party assessment you will need to use
an EU recognised conformity assessment body.
Please see following important link
https://www.gov.uk/guidance/placing-manufactured-goods-on-the-eu-internal-market-if-theres-
no-deal#new-approach-goods
how do you find out the exact % of UK content
needed for UK produced goods per tariff code?
If this relates to rules of origin and % requirements for preferential tariff purposes, then
requirements for a new UK version Certificate of Origin are awaited. Once issued this guidance
from your accredited Chamber of Commerce will be important.
The exact % content in terms of UK and acceptable EU content may depend on the terms of the
trade agreement between the UK and country, where a Preferential / Free Trade Agreement has
been agreed.
Please see following link which details the status on UK trade agreements. This link details
countries where trade agreements have been ‘rolled over’.
https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries-in-a-no-deal-brexit
As we currently use a number of Software licenses
that are from EU based countries. Are there any
issues with these digital services?
One impact to consider is the possible requirements for licenses to be subject to export control
regulations, especially for encrypted software. Please see link below
You could also check whether the license agreement is impacted by Brexit in terms of any specific
clauses (not just Brexit clauses, but any notable events), any jurisdiction clauses should also be
considered.
Any trade barriers as a result of Brexit could in theory increase the prices of software licenses
https://www.lexology.com/library/detail.aspx?g=598b6279-0653-4473-8545-1d0939871fbe

7. 7
Question Asked Response
Trade in Goods
what is the situation with regard to over hauling
customer equipment where the equipment is
removed from Eire and transported to Scotland,
over hauled and then sent back to Eire and
reinstalled?
If goods cross the border and in the event of a no deal Brexit, then tariffs will apply, and customs
declarations will apply.
Please see link below, this however is a detailed area and you would have to make an application.
We can discuss further if this would be helpful as possible use of Customs special procedures may
be beneficial
https://www.gov.uk/guidance/customs-procedures-if-the-uk-leaves-the-eu-without-a-deal
A small percentage of sales are from merchandise
(T-shirts, badges etc) where we use the Post Office
to send these abroad (EU and US are common
places). Will the EU sales be affected?
Please see link below. These goods will be subject to customs procedures, including customs
declarations.
https://www.royalmail.com/brexit/no-deal
Trade in Services
Hi Please could you provide some guidance on
impact on companies like us providing Engineering
Consulting Services to EU. There are no goods
involved but consulting. Thanks
Impacts could arise in terms of;
1) Data Protection if data is held on personal customers in the EU. Please see information
from the
Information Commissioners Office with respect to standard contractual clauses
https://ico.org.uk/for-organisations/data-protection-and-brexit/data-protection-if-there-s-no-
brexit-deal-3/the-gdpr/international-data-transfers/
2) Recognition of Professional Qualifications – are qualifications you have achieved key to
your business operation?
3) VAT on services you sell
4) Business travel to the EU
what is the impact for a business that provided
service labour in Eire? i.e site engineers sent over to
service customers equipment originally made in
UK?
The Common Area between the UK and Ireland will remain, please see following link
https://www.gov.uk/government/publications/common-travel-area-guidance
This retains the right to enter, live and work in each other’s countries
Please let us know if the service engineers are taking large equipment with them across the border,
which may require to be declared

8. 8
Question Asked Response
Trade with the Rest of the World
As a trade advisor, when I talk to potential Nordic
buyers, it would be very helpful for me to know
what tariffs will apply to different food and drink
categories in case of a hard Brexit
In the event of a hard Brexit tariffs may apply for sales to Nordic countries. As a lot of the Nordic
countries are part of the European Union the same tariffs will apply as for trade with the rest of the
European Union
For Norway they are part of EFTA (European Free Trade Association).
what about the middle east? There are no trade agreements between the EU and the Gulf Co-operation Council so tariffs will
apply for existing exports from the European Union and continue to apply.
There are however for example trade agreements with Egypt, Lebanon and North Africa
Please note trade with the Middle East and North Africa may require an Arab British Certificate of
Origin
VAT
Currently as a B2B software as a service company,
we don't charge VAT to EU customers who have an
EU VAT number and do charge VAT to EU
customers who don't have an EU VAT number.
How does this change after Brexit?
The situation with respect to VAT on Services does not change after Brexit
The place of supply rules still applies for VAT on services and you continue with respect to how you
operate today.
Please see link below which provides information on requirements, this includes information on
VAT on services and place of supply and on EC sales list
https://www.gov.uk/government/publications/vat-for-businesses-if-theres-no-brexit-deal/vat-for-
businesses-if-theres-no-brexit-deal
Can European customers postpone their VAT
payable?
European customers would be able to postpone their VAT, usually through a VAT deferment
account with their relevant Customs authority. This would normally be through a bank guarantee
supporting the VAT deferment account.
Some Customs authorities in Europe may apply Simplified VAT Accounting, for established
businesses whereby such businesses are able to defer without a bank guarantee. This however is
entirely up to the individual Customs authorities as to whether they allow such an arrangement.

9. 9
Question Asked Response
what if you are not vat registered? If a business is not VAT registered, and they require to make Customs declarations for exports and
imports they will need to register for an;
-EORI number
-Transitional Simplified Procedures
Please see links below
https://www.gov.uk/eori
https://www.gov.uk/guidance/register-for-simplified-import-procedures-if-the-uk-leaves-the-eu-
without-a-deal
Regarding VAT on exported goods; where VAT is
currently charged in B2B trade on non-EU exports,
will it be necessary to charge VAT for the same
goods to EU trade after Brexit? I have had
conflicting information, I have been told B2C trade
is VAT chargeable and NOT on B2B, can you clarify?
Please note extract below from Gov.uk (weblink also included for information
Quote
If the UK leaves the EU without an agreement, VAT registered UK businesses will continue to be
able to zero-rate sales of goods to EU businesses but will not be required to complete EC sales lists.
As UK VAT registered businesses will not be required to complete an EC sales list, there will be
changes to how these sales are recorded. Those UK businesses exporting goods to EU businesses
will need to retain evidence to prove that goods have left the UK, to support the zero-rating of the
supply.
Unquote
https://www.gov.uk/government/publications/vat-for-businesses-if-theres-no-brexit-deal/vat-for-
businesses-if-theres-no-brexit-deal