Page 30 - Linkline Summer 2017

EU Most Favourable Nation applied tari s
Product description
Simple Average
Tari Range
WTO Agricultural Products
14.8%
0-197%
Animal products
20.4%
0-192.1%
Dairy products
31.7%
1.5- 164.8%
Fruit, vegetables and plants
13.3%
0-197%
Co ee, tea, and cocoa
11.6%
0-18.7%
Cereals and preparations
18.1%
0-94%
Sugars and confectionary
25.4%
0-135.3%
Beverages, spirits and tobacco
14.2%
0-196.3%
Pharmaceuticals
0%
0%
Vehicles
9.4%
N/A
Irish lorries would have to go through the customs clearance procedures twice - when entering the UK, and when re- entering the EU.
Brexit Scenarios and Impacts on
the Irish Trade
One of two Brexit scenarios may be recognised:
• A soft Brexit, where the United Kingdom remains a member of the EEA or the European Customs Union; and
• A hard Brexit, where the UK leaves both the single market and the European Customs Union, and opts to negotiate a Free Trade Agreement (FTA) with the European Union, trading on World Trade Organisation (WTO) Most Favoured Nation (MFN) terms in the interim.
The soft Brexit scenario would have the least impact on the current Irish trade and logistics patterns, however, it has been ruled out as the UK insists on regulating the movement of people, and not making financial contributions to the European Union.
bureaucratic burden for all the EU companies trading with the UK as the minimum EU documents required for the customs clearance process would have to be present. Before trading with countries outside the EU, such as the UK post-Brexit, an Economic Operator Registration and Identification (EORI) number needs to be attained. This enables the trading entity to uniquely identify itself in whatever customs activity it undertakes or plans to be involved in. Businesses also need to apply for Authorised Economic Operator status (AEOS) for trading security
and safety.
Current
Soft Brexit
Hard Brexit
Single market access
Yes
Yes
No
No
No
Duty Free trade of goods
Yes
Yes
Yes
Yes
No
Market access for services
Yes
Yes
No
Partial
No
Ability to negotiate trade agreements with third countries
No
Yes
Yes
Yes
Yes
Ability to restrict migration
No
No
Yes
Yes
Yes
EU budget contribution
Yes
Yes
No
No
No
Decision making power
Yes
No No
No No
Minimum documents required for Customs Clearance
Commercial invoice
Customs value dederation
Freight documents(depending on the means of transport):
Bill of Landing
FIATA Bill of Landing
Road Waybill
Air Waybill
Rail Waybill
ATA carnet (temporary admission)
TIR Carnet (for international transit)
Freight insurance
Packing List
Single Administrative Document (SAD); SAD is presented together with:
Documentary proof of origin(used for tariff preferential treatment)
Certificate confirming special nature of the goods
Import licenses
Community surveilance document
Cites Certificate
Documents to support a claim of a tariff quota
Documents required for excise purposes
Evidence to support a clai for VAT relief
Hard Brexit, as it currently stands, will re-design the Irish logistics and supply chain patterns. In the absence of a transitional deal covering EU-UK relations to bridge the gap between the end of Brexit negotiations and the FTA implementation, the bilateral trade between the EU and the UK will be subject to numerous tariff and non-tariff barriers.
If the trade reverts to WTO terms, EU most favoured nation tariffs would be applied for products exported from the EU to the UK and vice-versa. Tariffs vary per product group and classification; for example, the tariffs on fruit, vegetables and animal products depend on whether or not they can be harvested locally, and the quality certifications of the importer.
As a result of hard Brexit, border control will be put in place on the Irish and Northern Irish land border, and customs controls will be required for all bilateral trade. Also, all trade between the European Union and countries outside the European Customs Union require the complete Customs Clearance process. This would create an additional
While the customs checks can be minimised, they cannot be eliminated entirely. Though technological solutions and cross-border cooperation can significantly reduce the effects of a hard border, some physical checks will be required on all external borders of the EU. There have been repeated references to introducing seamless borders to facilitate trade,
30 The CharTered InsTITuTe of LogIsTICs & TransporT
INDUSTRY