The BVRLA publishes regular updates containing the latest advice to support members as new information and guidance emerges in relation to EU Exit. Members are advised to regularly check the EU Exit Bulletins below.
Since 11pm on 31 January 2020, the UK has no longer legally been part of the EU.
Negotiations to agree future terms are underway and during this transition period, due to end on 31 December, all trading terms and regulations remain unchanged.
Keep updated
In addition to information published on this web page, members are emailed a dedicated EU Exit Bulletin highlighting the latest information to keep members informed and support compliance. All Bulletins are published below and any individual working for a member organisation can sign up to receive BVRLA updates.
Latest EU Exit Bulletin
Read previous EU Exit Bulletins here
17 September 2020
Automotive industry unites in calls for free trade deal with EU
The SMMT has joined organisations representing EU and UK vehicle and parts manufacturers to call for urgent agreement of an ambitious free trade deal before the end of the transition period in just 15 weeks’ time.
New calculations show the catastrophic impact of ‘no deal’ with World Trade Organisation (WTO) tariffs putting production of some 3 million EU and UK built cars and vans at risk over next five years.
‘No deal’ would mean combined EU-UK trade losses worth up to €110 billion to 2025, on top of around €100 billion in lost production value so far this year because of the Covid-19 pandemic.
Covering the cost of the tariffs, far higher than the small margins of most manufacturers, would almost certainly need to be passed on to consumers, making vehicles more expensive, reducing choice, and impacting demand. Automotive suppliers’ products will also be hit by tariffs. This will make production more expensive or will lead to more imports of parts from other competitive countries.
The BVRLA understands that over 70% of fleet and business car purchases are built in the EU - all of these are at risk.
The association’s members will have to pay the tariffs or pass them on to their customers. This would be disastrous for fleets and would seriously slow the decarbonisation agenda.
UK fleets are not in a position post-Covid to absorb these costs and automotive demand will stall.
It will also become more expensive for essential user fleets to operate and significantly increase the cost for fleets looking to do the right thing and replace their vehicles with Battery Electric Vehicles.
The tariffs on parts will impact the whole life cost of vehicles and have impacts on contracts that members have already signed. Orders are already in the pipeline which would land in 2021 and these must not be hit with a tariff.
The BVRLA is asking for a deal with no tariffs and ensuring an easy flow of vehicles and parts through the border.
The UK secures a Free Trade Agreement with Japan
The UK’s first major trade deal as an independent trading nation has been made with Japan. The deal will give UK businesses the benefit of tariff-free trade on 99% of exports to Japan in a deal expected to be worth an estimated £15.2 billion.
The deal is also an important step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), giving UK businesses a gateway to the Asia-Pacific region and help to increase the resilience and diversity of our supply chains.
Government writes to businesses about new trade arrangements with the EU
HMRC has written to businesses about the new trading arrangements when the UK leaves the EU single market and customs Union, highlighting actions that need to be taken now to continue trading with the EU from 1 January 2021, including:
- Make sure you have a GB EORI number
- Decide how you’re going to make customs declarations
- See if your imported goods are eligible for staged controls
- Decide how you will account for import VAT when you make a customs declaration
- Check if Import VAT is due at the border
- Check the Controlled goods list to see if you need to complete declarations from January. If your goods are not on the list you can choose to delay import declarations until July 2021
- Check the government’s tariff tables and consider how your trade will be affected
- Sign up for the new Trader Support Service, if you move goods between Great Britain and Northern Ireland or bring goods into Northern Ireland from outside the UK
Video guidance for businesses who are brand new to customs
HMRC has created a series of short videos aimed at helping those businesses brand new to customs:
- What is Customs?
- What you need to know to bring goods into the UK?
- What you need to do to send goods out of the UK?
The Government has published a list of customs agents and fast parcel operators who can help submit customs declarations from 1 January 2021.
CMA to oversee new ‘Office for the Internal Market’
The UK government has laid out plans to establish an independent monitoring body, the Office for the Internal Market (OIM), who will oversee the functioning of the UK internal market.
The body will sit within the Competition and Markets Authority (CMA) and provide independent, technical advice to parliament and the devolved administrations on regulation that may damage the UK’s internal market.
The CMA will have powers to monitor and report on the effectiveness of the internal market, and will need to report on the functioning of the internal market every 12 months, and the effectiveness of the bill’s provisions on mutual recognition and non-discrimination every five years.
Controversial UK Internal Market Bill presented to Parliament
The Government presented the UK Internal Market Bill to Parliament on 9 September, which is designed to guarantee that companies can trade unhindered in every part of the UK.
The Bill has made headlines for the controversial provision that would allow ministers to disregard parts of the Northern Ireland protocol. The Institute for Government believes that the UK Government should be prepared to compromise on the Internal Market Bill, claiming that “the stage is now set for a major stand-off between the UK government and devolved administrations.”
In a meeting of the Withdrawal Agreement Joint Committee on 10 September, Vice President Šefčovič detailed the European Union’s concerns, and requested that the UK withdraw the UK Internal Market Bill. The UK Government made clear that the legislative timetable for the Bill would continue as planned.
The Government has also published some useful EU Exit information resources to keep individuals and businesses updated:
- A dedicated UK transition website where you can answer a few questions to get a personalised list of actions and also sign up to receive alerts.
Keep informed
Trade negotiations
17 September 2020 update
The UK secures a Free Trade Agreement with Japan
The UK’s first major trade deal as an independent trading nation has been made with Japan. The deal will give UK businesses the benefit of tariff-free trade on 99% of exports to Japan in a deal expected to be worth an estimated £15.2 billion.
The deal is also an important step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), giving UK businesses a gateway to the Asia-Pacific region and help to increase the resilience and diversity of our supply chains.
20 August 2020 update
The UK Government has published a list of countries and trading blocs with whom they have a signed trade agreement that is expected to take effect when existing EU trade agreements no longer apply to the UK, from 1 January 2021.
There is also a list of countries and trading blocs with who trade discussions are still underway and EU trading terms are still in place.
If the UK Government does not reproduce the effects of an existing EU agreement, trade with other World Trade Organization (WTO) members will take place on WTO terms when EU trade agreements cease to apply to the UK. Find out more about trading under WTO terms.
13 August 2020 update
Negotiations with the EU
- 5th round negotiations continue following 6 weeks of intense discussions
- Negotiations may continue well into Autumn
- Still significant differences between what the two sides want, particularly around ‘level playing field’ and fisheries
- Businesses are being advised to prepare now as it is looking unlikely that a deal will be reached.
Negotiations with the USA
- 3rd round negotiations continue with the USA, the second largest negotiation market
- USA has said it will apply tariffs to the EU and officials are trying to remove the threat of punitive tariffs being applied to the UK
- Time isn’t as much a pressure as with EU negotiations because the UK is not losing market access at the end of the year.
Negotiations with Australia and New Zealand
- 1st round of negotiations have taken place. Nothing yet to report as it was mainly introductory, outlining what each party hopes to achieve.
Financial support and advice
20 August 2020
Be aware of mobile roaming charges from January
From 1 January 2021, the guarantee of free mobile phone roaming throughout the EU, Iceland, Liechtenstein and Norway will end. Members are advised to check with your phone operator to find out about any roaming charges that you or any employees going overseas might incur from January.
13 August 2020
EU funding
Businesses are being reminded that they can still apply for EU funding under the current spending framework and a full list of funds available is published on the Gov.UK website. The deadline for applications will depend on which fund is being applied for.
Customs declaration grants
The UK Government is offering three customs declaration grants to help businesses with funding for recruitment, training and IT improvements to enable their business to complete customs declarations. PricewaterhouseCoopers (PwC) is administering the scheme on behalf of the HMRC and applications should be made online through PwC.
Trading online
13 August
.EU domain names
From 1 January 2021, you’ll no longer be able to register or renew an .eu domain name if your organisation, business or undertaking is established in the UK but not in the EU/European Economic Area (EEA), or you live outside of the EU/EEA and are not an EU/EEA citizen. Businesses with an .eu domain name should check eligibility and, if necessary, discuss with your local domain name registrar whether to transfer your internet presence to another top-level domain.
Online activities
As of 1 January 2021, the eCommerce Directive will no longer apply to the UK and businesses are being asked to prepare for these changes now. Rules relating to online activities in European Economic Area (EEA) countries may newly apply to UK online service providers. Businesses should consider whether their services are currently in scope of the Directive, and if so, ensure compliance with relevant requirements in each EEA country they operate in.
Protecting your business and brand
13 August 2020
International trademark registrations
International trademark registrations protected in the EU under the Madrid Protocol will no longer enjoy protection when the transition period ends. To address this, on 1 January 2021, the UK Government will create a comparable trademark (IR) in relation to each international (EU) trademark designation which has protected status immediately before 1 January 2021.
Trading in the UK internal market
17 September 2020 update
CMA to oversee new ‘Office for the Internal Market’
The UK government has laid out plans to establish an independent monitoring body, the Office for the Internal Market (OIM), who will oversee the functioning of the UK internal market.
The body will sit within the Competition and Markets Authority (CMA) and provide independent, technical advice to parliament and the devolved administrations on regulation that may damage the UK’s internal market.
The CMA will have powers to monitor and report on the effectiveness of the internal market, and will need to report on the functioning of the internal market every 12 months, and the effectiveness of the bill’s provisions on mutual recognition and non-discrimination every five years.
Controversial UK Internal Market Bill presented to Parliament
The Government presented the UK Internal Market Bill to Parliament on 9 September, which is designed to guarantee that companies can trade unhindered in every part of the UK.
The Bill has made headlines for the controversial provision that would allow ministers to disregard parts of the Northern Ireland protocol. The Institute for Government believes that the UK Government should be prepared to compromise on the Internal Market Bill, claiming that “the stage is now set for a major stand-off between the UK government and devolved administrations.”
In a meeting of the Withdrawal Agreement Joint Committee on 10 September, Vice President Šefčovič detailed the European Union’s concerns, and requested that the UK withdraw the UK Internal Market Bill. The UK Government made clear that the legislative timetable for the Bill would continue as planned.
20 August 2020 update
Government sets out plans for seamless trade between UK nations
The Government has laid out plans to ensure that businesses across the whole of the UK will continue to enjoy seamless internal trade when we leave the transition period at the end of the year.
The Department for Business Energy & Industrial Strategy has conducted a four-week consultation on its plans for the UK Internal Market, in which it sets out options to protect the flow of goods and services within the UK.
Many businesses depend on trade with the home nations more than any other partner. In Scotland, sales of produce to the rest of the UK are worth £52.1 billion per year, accounting for over 60% of all exports, more than all other nations which Scotland trades with combined. Similarly, about 50% of Northern Ireland’s sales are to Great Britain and 75% of exports of Welsh goods are consumed in other parts of the UK.
From 1 January 2021, powers in at least 70 policy areas previously exercised at an EU level will flow directly to the devolved administrations in Edinburgh, Cardiff, and Belfast for the first time. This will give the devolved administrations power over more issues than they have ever had before, without removing any of their current powers.
13 August 2020 update
Northern Ireland Protocol
New guidance has been published to provide support for UK businesses moving goods into, out of, or through Northern Ireland. Businesses will need to engage in new processes under the Northern Ireland Protocol, which takes effect on 1 January 2021.
The Government states that changes for goods moving from Great Britain to Northern Ireland will be kept to an absolute minimum with a new Trader Support Service, available to all traders at no cost to provide wraparound support, alongside the published guidance.
Customs requirements for movement of goods
17 September 2020 update
Government writes to businesses about new trade arrangements with the EU
HMRC has written to businesses about the new trading arrangements when the UK leaves the EU single market and customs Union, highlighting actions that need to be taken now to continue trading with the EU from 1 January 2021, including:
- Make sure you have a GB EORI number
- Decide how you’re going to make customs declarations
- See if your imported goods are eligible for staged controls
- Decide how you will account for import VAT when you make a customs declaration
- Check if Import VAT is due at the border
- Check the Controlled goods list to see if you need to complete declarations from January. If your goods are not on the list you can choose to delay import declarations until July 2021
- Check the government’s tariff tables and consider how your trade will be affected
- Sign up for the new Trader Support Service, if you move goods between Great Britain and Northern Ireland or bring goods into Northern Ireland from outside the UK
Video guidance for businesses who are brand new to customs
HMRC has created a series of short videos aimed at helping those businesses brand new to customs:
- What is Customs?
- What you need to know to bring goods into the UK?
- What you need to do to send goods out of the UK?
The Government has published a list of customs agents and fast parcel operators who can help submit customs declarations from 1 January 2021.
20 August 2020 update
Preparing for import and export requirements
From January 2021, traders who are exporting goods to the EU will need to make export declarations and ensure they have the right certificates and licences required for entry.
In order to fulfil the import process, traders will need to:
-
Have a GB Economic Operator Registration and Identification - or EORI number before moving their goods.
-
Have the commodity Code of their goods – which will be needed to make a customs declaration and of course to calculate duties on an import.
-
Know the customs value of their goods – the rules for which are based on the WTO valuation agreement.
-
Have considered whether they are able to, and would benefit from, using any of the available simplifications or facilitations, including deferring customs declarations for standard goods.
Chancellor of the Duchy of Lancaster Michael Gove made a statement in the House of Commons confirming that in order to give businesses more time to adjust, border controls would be introduced in three stages up to 1 July 2021.
13 August 2020 update
Phased approach to new border controls for trade
As of 1 January 2021, the UK will operate a full, external border as a sovereign nation. This means that controls will be placed on the movement of goods between Great Britain and the EU. To afford industry extra time to make necessary arrangements, the UK Government has taken the decision to introduce the new border controls in three stages up until 1 July 2021.
The Border Operating Model provides clarity and certainty for the border industry and businesses, including technical detail on how the border with the EU will work after the transition period and the actions that traders, hauliers, ports and carriers need to take.
Driving abroad
The BVRLA has a dedicated Taking a Vehicle Abroad web page containing all the information that members and customers need to know.
20 August 2020
New rules for those taking pets abroad
Members may want to make customers aware that should they intend to drive abroad with a pet, new rules will apply from 1 January requiring them to act now.
The UK Government has applied to the European Commission to be listed in the EU Pet Travel Scheme and is awaiting a decision. Those taking pets abroad are advised to contact their vet at least 4 months before travelling to get the latest advice.
The updated Guidance on Pet Travel to Europe from 1 January provides full details on what steps need to be taken should the UK not be listed in the scheme.
Keep in touch
The BVRLA is keen to hear the views of members on matters relating to EU Exit policy that can support the vehicle rental, leasing and fleet industry. Members can provide input and insight by emailing the BVRLA policy team, who liaises regularly with Government to ensure that the views of the industry are heard.
The BVRLA's EU Exit Policy Asks
17 September 2020 update
Automotive industry unites in calls for free trade deal with EU
The SMMT has joined organisations representing EU and UK vehicle and parts manufacturers to call for urgent agreement of an ambitious free trade deal before the end of the transition period in just 15 weeks’ time.
New calculations show the catastrophic impact of ‘no deal’ with World Trade Organisation (WTO) tariffs putting production of some 3 million EU and UK built cars and vans at risk over next five years.
‘No deal’ would mean combined EU-UK trade losses worth up to €110 billion to 2025, on top of around €100 billion in lost production value so far this year because of the Covid-19 pandemic.
Covering the cost of the tariffs, far higher than the small margins of most manufacturers, would almost certainly need to be passed on to consumers, making vehicles more expensive, reducing choice, and impacting demand. Automotive suppliers’ products will also be hit by tariffs. This will make production more expensive or will lead to more imports of parts from other competitive countries.
The BVRLA understands that over 70% of fleet and business car purchases are built in the EU - all of these are at risk.
The association’s members will have to pay the tariffs or pass them on to their customers. This would be disastrous for fleets and would seriously slow the decarbonisation agenda.
UK fleets are not in a position post-Covid to absorb these costs and automotive demand will stall.
It will also become more expensive for essential user fleets to operate and significantly increase the cost for fleets looking to do the right thing and replace their vehicles with Battery Electric Vehicles.
The tariffs on parts will impact the whole life cost of vehicles and have impacts on contracts that members have already signed. Orders are already in the pipeline which would land in 2021 and these must not be hit with a tariff.
The BVRLA is asking for a deal with no tariffs and ensuring an easy flow of vehicles and parts through the border.
