The import market was £22.2 billion.
The import market was £19.4 billion.
The total imports was £41.6 billion.
Do you have your trade routes and product requirements ready?
CERT can provide Authorised Representation for your products in both the UK and EU market. Feel free to arrange a free 15-minute consultation to see how we can help you.
An overview explaining how CERT implements the Product Authorised Representation service:
Companies need to understand the impact on their supply chain with the new changes with Brexit. Ensuring that your business is compliant with all current customs rules and regulations is now more important than ever. Non-compliance can have a devastating impact on businesses and could make your business subject to an increased number of audits, delays in the clearance of goods and the removal of duty reliefs. When combined with the additional checks placed on international shipments, could prove disastrous.
The current Brexit terms have been agreed with the EU and approved in the UK Houses of Parliament. The UK is taking back control of their trade policy and has left the EU customs union and single market. The agreement is subject to the UK not breaching the terms of the agreement.
The Agreement is structured into 7 Parts:
- Part 1 – common and institutional provisions;
- Part 2 – trade and other economic aspects of the relationship e.g., aviation, energy, road transport, and social security;
- Part 3 – cooperation on law enforcement and criminal justice;
- Part 4 – “thematic” issues, notably health collaboration;
- Part 5 – participation in EU Programmes, principally scientific collaboration through Horizon;
- Part 6 – dispute settlement;
- Part 7 – sets out final provisions.
The key areas affecting export/import business are:
- Customs Processes
- Third country treatment for regulatory purposes
- Sanitary and Phytosanitary checks
- Recognition of qualifications
- Movement of People
Movement of People is not being addressed in this documentation.
The United Kingdom left the European Union on 31 December 2020 at 11pm.
The principle of free movement of goods in Europe has gone for the UK, and this agreement does not change that. The 1,200+ page Brexit agreement does, however, say a lot about the future of product regulation, and in it there are positive signals. The EU and the UK have, however, jointly agreed a free trade agreement (FTA), establishing zero tariffs or quotas on trade between UK / EU which is good news. However, the UK is no longer part of the European Union (EU) and so UK export business will need to address additional taxation requirements and ensure EU representation for their product.
If you have market entry queries, we are able to provide technical and legislative support along with the opportunity to provide you with EU and UK product representation depending on your requirements. Feel free to contact CERT or see below for more details on the changes Brexit will have on your business.
So how does this affect my business?
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Changes in the strength of the Pound(£) could present opportunities in both existing and new markets. A Foreign Exchange Specialist can help your business identify and take advantage of opportunities.
The UK Government also has lots of financial incentives on offer for example:
- Support for customs training and IT improvements.
- Setting up a duty deferment account.
Key points that are worth addressing are:
- Check ability to recover import/export VAT in both the UK and EU.
- Quantify the potential additional withholding taxt costs on interest, royalty and dividend payments.
- Schedule time for system updates including invoice wording and Accounts Payable/Receivable coding.
- Forecast for cashflow impacts and hedge for currency exposure.
- Map goods and service supply chains to identify the tax impacts.
- Review Financial Reporting requirements (FRC) to identify and report any Brexit risk.
- Identify additional VAT registration and fiscal representative requirements.
You need an individual guarantee or a customs comprehensive guarantee to enter goods into a customs special procedure and defer duty. An option is to have an Authorised Economic Operator (AEO) status, which is an internationally recognised quality mark that shows your business’s role in the international supply chain is secure, and has customs control procedures that meet UK and EU standards. Another option is to apply for a customs comprehensive guarantee to cover customs debts.
The other aspect you will need to address regarding the exporting of products is the taxation requirements. The link below is the guidance on this topic from the EU Commission regarding this:
European Commission – Withdrawal of the United Kingdom and EU rules in the field of Value Added Tax (VAT) for Goods
There is potential for traders who are effectively managing their trade and operational risk to do well, as you will find it easier to negotiate with suppliers and customers to avoid payment vs. delivery gaps in your contractual terms with them. This will ensure you have the facilities available to bridge any gaps that remain with affordable finance, letters of credit, and/or insurance products.
Finance and insurance can be daunting, as getting it wrong can be expensive. CERTLabel works closely with Hawk FX who are currency transfer experts and have over 25 years’ experience helping companies take control of their foreign currency activities, managing risk, budgeting and costs. Alternatively if you would like to know more about CERT representing your product on the EU market, feel free to get in contact.
If you are exporting product between the UK and EU markets either way, you will need to obtain an EORI (Economic Operator Registration and Identification) number. For the UK the code starts with “UK…”, Northern Ireland – “XI…” and for Europe it starts with “EU…”. The EORI number is needed for importing and exporting between the EU and UK. As the exporter you will need to obtain an EORI number for your country you are exporting out of and your recipient ‘The Importer’ will need to obtain an EORI number to successfully receive the goods. This is so that the tax requirements for your product are correctly captured and so both countries can keep records on stock/product movement.
Details of the UK’s new relationship with the EU are still being physically mapped out in reality based on the agreement made. What we do know is:
- Customs filings will be needed for all UK to EU export shipments
- All imports into the UK will need to have customs paperwork recorded and filed in accordance with The Border Operating Model.
European Commission – Import Control System 2 (ICS2)
ICS2 Factsheet – 2-page top line summary
European Commission – Withdrawal of the United Kingdom and EU rules in the field of Customs, including Preferential Origin
Key points worth that are worth addressing are:
- Apply for Customs Freight Simplified Procedures (CFSP) in order to simplify the declaration process as the border.
- Decide INCOterms used and agree with counterparts.
- Determine how the data needed to complete customs declarations is captured and check classification of products.
- Obtain EU/UK EORI number for customs procedures.
- Appoint a logistics or customs compliance provider to submit declarations on your behalf.
There will be new challenges and obstacles with the UK having left the EU, for example new border controls and HGV drivers needing a permit to enter Kent. The UK government did reveal its new Trader Support Service (TSS), providing £200 million of customs support for businesses trading in and out of Northern Ireland.
Points worth considering to review are:
- Mapping existing and proposed supply chains to identify and mitigate additional costs and administration.
- Confirm INCOterms if not already agreed.
- Identify critical suppliers and assess supplier readiness. This can be in the form of supplier statement or declaration.
- Engage with key stakeholders to understand commitments and expectations for example EU and UK regulations on authorisations. Ensure potential pitfalls or blockages have been addressed.
The UK government also provided summary guidance notes on how to Import and Export products between the UK and EU. The documentation addresses standard export procedures, how to deal with customs requirements, licencing requirements and completing declarations.
Below is some general shipping guidance documentation along with some transit scenarios:
INCO Terms will not be directly affected by BREXIT as these are international agreement terms Quick overview on shipping INCO Terms.
EU Commission – UK Withdrawal Business Transit Scenarios
EU Commission – UK Withdrawal Business Export to the UK Scenarios
Generic Requirements
From 1st January 2021, if manufactured goods are imported into the UK from the EU/EEA or vice versa, then the status of the company facilitating the import will change from a ‘distributor’ as it would have been previously, to an ‘importer’.
Labelling is such a diverse area as it has to cover a multitude of products. Further down are examples of product specific areas with an overview of the proposed changes, but we cannot provide the answer to all the labelling queries without creating an encyclopedia set. That’s a lot of reading, let alone a lot of work! As an example in the food we have not addressed specific food and ingredient naming that is affected by geographical location or detergents and how there is dedicated Brexit guidance that goes beyond the base chemical requirements. So if you have a specific question, or are after more detail on a section we have reported on, then feel free to get in contact and let us know how we can help.
The European Standards body, CEN, have agreed that BSI will remain a member of CEN irrespective of the UK leaving the EU without a deal. So, in the event of a no-deal scenario, British Standards Institution (BSI) standards will continue to be valid and the UK will still be involved in developing new European standards. The UK will also adopt and implement all European harmonised standards as UK designated standards.
From 1st January 2021, the Protocol on Ireland/Northern applies. The IE/NI Protocol is subject to periodic consent of the Northern Ireland Executive and Assembly, the initial period of application extending to 4 years after the end of the transition period. The EU rules apply to Northern Ireland and it is assimilated to an EU member state.
According to the EU regulations, the manufacturing country has to figure on the product label if this country is outside EU. So, UK manufactured products will require to display that they are made in the UK if sold in the EU/EEA. Some product areas have specific requirements regarding the Made In statement that is addressed in the more detailed sub-sections. You are also welcome to get in contact if you have a specific question.
Food
The decision of the UK government to postpone certain required labelling changes means that most foods that are compliant with EU food labelling rules can be placed on the market in GB until 30 September 2022. Their packaging can still contain an EU address for the Food Business Operator (FBO) and “EU” and “non-EU” country of origin claims. From 1 October 2022, the packaging of foods placed on the GB market must include a UK address for the FBO or, if the FBO is not in the UK, the address of the UK importer. Additionally, from that date the packaging may no longer bear “EU” based origin claims and must instead use “UK” or “non-UK” where the label does not list each country of origin.
It is however, important to note that the postponement is not applicable to the use of the EU organic logo. From 1 January 2021, the EU organic logo may no longer be used on any UK organic foods unless the control body is authorised by the EU to certify UK goods for export to the EU or the UK and EU agree to recognise each other’s standards.
The deadline applicable to foods exported from GB to the EU has not been postponed. All foods placed on the EU market as from 1 January 2021 must meet the EU rules for food labelling. However, as Northern Ireland will follow the EU rules, the food label can contain an EU or Northern Ireland address for the FBO or importer. Moreover, the EU emblem and “EU origin”-claims can still be used on the packaging of foods from and sold in Northern Ireland. For the avoidance of doubt, foods produced in GB and sold in the EU or Northern Ireland, on the other hand, may no longer contain these EU-specific particulars as from 1 January 2021.
The key relevant labelling areas that are subject to changes from 1st January 2021 are:
- Food Business Operator (FBO) address
- EU Health and Identification marks & use of EU emblem
- Organic products & use of logo
- Country of Origin labelling
- Protected Geographical Status Changes (GI Logos)
Exporting to the EU
Food produced from GB destined for the EU market must not be labelled as origin ‘EU’ from 1 January 2021. However, food from Northern Ireland can continue to use ‘origin EU’ from 1 January 2021. Food from NI should be labelled as ‘UK(NI)’ or ‘United Kingdom (Northern Ireland)’ where EU law requires a member state to be indicated on the label.
Goods sold in GB and NI
GB -Food produced from and sold in GB can be labelled as ‘origin EU’ until 30 September 2022. From 1 October 2022, food from GB must not be labelled as ‘origin EU’.
NI – Food produced from and sold in NI can continue to use ‘origin EU’ or ‘origin UK’ where EU law does not require an EU member state to be indicated on the label. However, where EU law requires the label to have an EU member state indicated, labels should refer to ‘UK(NI)’ or ‘United Kingdom (Northern Ireland)’.
NI into GB – Food produced from NI and sold in GB can be labelled as ‘UK(NI)’, ‘United Kingdom (Northern Ireland)’ or ‘UK’.
Foods placed on the market or labelled prior to 1 January 2021 can continue to be sold until stocks are exhausted. There are specific product areas where additional rules apply for products sold in GB and NI. Examples are Minced Meat, Fruit and Vegetables, particular types of Honey and Eggs. These are only some of the examples.
If you need further details, please get in contact mentioning this topic and we can provide you with a more detailed report. If you need further guidance on this, the team is only a phone call or email away.
The EU protected food name scheme enables consumers to identify foods with clear regional provenance, after 1 January 2021 EU protection laws will no longer apply to new UK related GI products. All existing products registered under the EU’s GI schemes by the end of the transition period will remain protected under the UK GI schemes.
The UK will set up its own GI schemes which launch from 1 January 2021. UK schemes will protect the geographical names of food, drink & agricultural products, spirit drinks, wine & aromatised wine. There will be a 3-year transition period (which ends on 1 January 2024) for producers to adopt the relevant UK logos (PDO, PGI, TSG). The UK logo will be mandatory for GB products registered from 1 January 2021 onwards. GB GI products that are protected in the EU can continue to use the EU logo in the UK, in addition to the UK logo, after the transition period.
For the complete report, please contact us and let us know the area that interests you. If you would like further guidance and support, we are only a call or an email away. It would be great to hear from you.
Household / Non-food
Specific product categories e.g. cosmetic products or products bearing a CE mark will need to have address details present on the product labelling of an authorised product representative, that is resident in the market the product is being sold in. EU and UK Responsible Persons’ information will have to appear on the label if the product is sold in both territories.
If you are looking to export into the UK or EU market, you will need to have an official market representative for your product. CERT is a registered business in both the UK and EU and has offices based in London and Berlin. This allows us the ability to technically represent your product for both markets, depending on your requirements. Please feel free to give us a call or get in contact if we can be of help.
The EU market relies on the General Product Safety Directive 2001/95/EC (GPSD) as the ‘safety net’ that all products supplied will need to comply with. Some products have dedicated Directives and Regulations that go beyond these requirements. From 1 January 2021 products being sold in the UK will have sole emphasis on compliance with The General Product Safety Regulations 2005 (GPSR). Where there’s crossover with the GPSR/GPSD, the product-specific legislation usually takes precedence.
The CE mark has been a compulsory mark on many product areas which does not confirm a product safety, but confirms the product meets EU safety, health or environmental requirements and allows free movement of products within the European market.
The CE mark for products being sold in the UK will be replaced with the UKCA mark as the CE marking is an official EU marking. Currently it matches the same regulatory requirements as the CE mark, but this is subject to change. The UKCA mark will not be recognised on the EU market and any new products being supplied on the UK market will require the UKCA mark. Existing products (for example if your good was fully manufactured and ready to place on the market before 1 January 2021) can still be sold in Great Britain with a CE marking even if covered by a certificate of conformity issued by a UK body. From 1 January 2022, the CE marking will not be recognised in Great Britain for areas covered by this guidance and the UKCA marking. However, a product bearing the CE marking would still be valid for sale in the UK so long as it was also UKCA marked and complied with the relevant UK rules.
Separate rules apply to medical devices.
Formulated products fall under 5 key areas with dedicated regulations:
- Biocides – Authorisation of biocidal substances and products
- CLP – Classification, labelling and packaging of substances and chemicals
- PIC – Prior informed consent
- PPP – Pesticides or Plant Protection Products
- REACH – Registration, evaluation, authorisation and restriction of chemicals
The UK Health & Safety Executive (HSE) have specified in the event of no deal, the EU Restriction and Evaluation and Assessment of Chemicals (REACH) Regulation will be brought into UK law by the European Union (Withdrawal) Act 2018. The Act replicates REACH in the UK while making the changes necessary to make it work outside of the EU.
Q&As related to UK based only representatives for Formulated Products
Existing REACH registrations
Only an EU/EEA-based company can register a substance under the REACH Regulation. If your company is based in the UK and has registered a substance under REACH, the registration will no longer exist after the UK withdraws from the EU. The UK will honour your registration until its expiry date, but you have until 1st January 2022 to register an authorised holder (Responsible Person) here in the UK.
If you want to continue doing business in the EU/EEA after the UK’s withdrawal, you have the option of appointing an only representative to manage your registrations. You also have the option of moving your operations related to the registered substances to a legal entity within the EU.
If you need more details on any of the 5 -key areas of formulations, please get in contact specifying your area of interest and we can send you the more detailed report. The team at CERT are also available to provide any support or technical solutions that you need. Please feel free to email: [email protected] or give us a call on the number at the bottom of the page.
A product sold on both markets will then need to be notified on the UK notification system and on the CPNP (Cosmetic Products Notification Portal). Existing products will need to be notified on the UK notification system within 90 days following the Brexit day (1 April 2021). The notification portal will be available on January 1st, 2021.
You will need distinct product information files (PIF) for the United Kingdom and the European Union. This might require relabelling those products currently registered both for the United Kingdom/European Union since the location for the RP and PIF must be identified in both cases. It is expected that qualified UK safety assessors will remain valid options for safety assessments used for UK and EU products, however this is subject to opinion. CERT uses Toxicologists based both in the EU and UK and so this is not a matter of concern.
Please get in contact specifying your area of interest and we can send you a more detailed report. The team at CERT are also available to provide any support or technical solutions that you need. Please feel free to email: [email protected] or give us a call on the number at the bottom of the page.
Apart from the change in mandatory compliance marking CE/UKCA and the Responsible Person (RP) details, the UK is going to adopt the current EU harmonised electrical standards in the short-term. Longer-term the UK standards will be controlled by the Office for Product Safety and Standards and legislation for the UK market may adapt to local requirements.
Feel free to get in contact so we can send you a more detailed report. If you need specific product support or have a specific question, please email [email protected] or give us a call on the number at the bottom of the page.
Toys will have the Generic Label changes including CE/UKCA mark and any formulations in base materials, colour will be subject to the formulation requirements (which will affect more the supporting documentation, rather than the product labelling).
Second-hand toys like most second-hand products can be sold with the existing labelling e.g. CE mark and if subject to the General Product Safety Regulations 2005, rather than the Toys (Safety) Regulations 2011 can be sold as they are, provided they are safe. The recommendation to date though is to only sell second-hand toys that are UKCA marked.
Feel free to get in contact so we can send you a more detailed report. If you need specific product support or have a specific question, please email [email protected] or give us a call on the number at the bottom of the page.
Textiles will have the necessary Generic Label changes and the current EU legislation will be adopted by the UK supported by the UK Textile Products (Labelling and Fibre Composition) Regulations 2012.
If you need specific product support or have a specific question, please email [email protected] or give us a call on the number at the bottom of the page.
If there’s one positive to come from the Brexit situation, from a business perspective, it’s that it forces a rethink of international marketing strategies focused on success in Europe. Targeting markets on the continent should be part of any international marketing strategy post-Brexit. Thankfully, the digital age has revolutionised international marketing strategies. No longer is it an absolute necessity to constantly visit foreign nations, employ marketing or sales agents based overseas and establish international offices in order to raise brand awareness. Below is a list from the EU Commission of key contacts for different markets within the EU:
National contact points or websites dedicated to UK withdrawal-related information
At the same time as a business you need to understand the markets you are entering. CERT use the services of Expandise as they have experience in working with startups through to large companies, but employ people who are local to the market and can provide an indepth view of their target market requirements. Expandise adopt a clear no nonsense approach, addressing market preparation, entry and management. Working with 100+ partners around the world and experience in over 50 markets, they are very efficient at finding a solution that matches your requirements.
As the two markets (EU and UK) diverge, there will be varying regulations and requirements coming into force. With this change, it is imperitive that you ensure that your products are safe and compliant for the markets you intend to sell in. An example of the upcoming changes for the EU market is the 2021 Work Programme that was introduced in October, addressing:
- Sustainable products policy initiative, including a revision of the Ecodesign Directive.
- Circular Electronics Initiative.
- New design requirements and consumer rights for electronics.
- Artificial Intelligence.
- Evaluation of the New Legislative Framework (“NLF”) for Products.
- Revision of Packaging and Packaging Waste Directive.
- Revision of the Machinery Directive.
- Evaluation of the EMC Directive.
A quick final checklist of points to cover:
- Undertake a regulatory assessment to understand what (if any) new labelling changes and product standards could mean for your products depending on the source and where they are being sold.
- Examine the extent to which your business transfers GDPR data from the EU to UK and where is the data being stored and processed.
- Put in place standard contractual clauses to support personal data and appropriate adequacy agreement.
- Review commercial contracts to understand and assess Brexit risk. Identify terms that could be affected and proposed response.
If you need any help with product and market regulatory requirements and the immediate actions needed to prepare, CERT are happy to provide advice and support.
The Agreement between the UK and EU confirms that the UK government is to have independence from the EU, in the field of environmental protection as well as elsewhere. Our objective is to ensure you are up to date with the requirements for your product area and target market. Whether it is dedicated product labelling information; import/export requirements; transition rules for selling existing products; trade requirements or product representation to ensure your export market continues. CERT is here to ensure you remain competitive in the market and we mitigate your business risk as much as possible.
If you export retail product to the UK or EU markets, you will need a locally based market representative for your product. Failing that, the importer will need to act as the market introducer, taking liability for your products and have their address on your product labelling.
CERT has a registered business in Berlin (EU market) and London (UK market). We can bridge the gap for you by providing representation of your product if you are exporting to either market. Providing you with an appropriate contact address for your product labelling and allowing you to obtain the necessary product registrations that you require.
If you have a product and looking to break into a new market or ensure it is compliant for the current market; CERT can support getting your products to market quickly, while upholding the most stringent technical requirements. By applying our comprehensive technical, legislative, translation and industry knowledge, we can ensure your product is safe and compliant for the markets you intend to sell in.
Small enough to care, but talented enough to produce the excellence you demand.
Feel free to drop the team a message below, letting us know in the message box the particular area you are interested in. Alternatively if you want to arrange a quick online meeting or phone call, feel free to find some time in the diary.