1. TechniShow 2018 Brexit the current state of play Leon Kanters, partner Meijburg & Co
March 21, 2018

2. Brexit Negotiations – Current Status
Phase 1 – political agreement reached in December 2017
Phase 2 – Future relationship
Transition phase agreed
UK Strategy and Wish list
Leave the single market March 29, 2019 and
Leave the EU Customs Union,
The UK should be able to conclude its own Free Trade Agreement (FTA)
Conclude a UK bespoke deal with the EU

3. Future trade deal: possible scenarios
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4. Free Trade Agreement (FTA) – Rules of Origin Requirement
What’s in a FTA?
Applies only for wholly obtained or sufficiently transformed goods
Why? To prevent FTA abuse.
The preferential rules of origin define per product when it can be considered as sufficiently transformed.
The rules may vary per FTA

5. What does this mean for the UK?
Best case: Administrative burden
Worst case: Products do not comply
UK needs “cumulating of origin” for all FTA’s
Problem: Does not exist in EU FTA’s.

6. Transition phase – clock remains ticking
Duration:
Agreed to 31 December 2020
Status quo UK remains a member as if it had not left
How will third countries react?
CETA (EU – Canada FTA) took 7 years
Customs infrastructure (channel ports) will take far longer than is acknowledged
The UK has not even started to come Brexit ready

7. RESULTS BREXIT SURVEY NON TARIFF BARRIERS KPMG - Meijburg
Import declarations increase by 752,000
Export declarations increase by 4.2 million
77,000 VAT numbers belong to businesses that supplied/received goods to/from the UK
Over 35,000 VAT numbers are currently not registered with Dutch Customs
930 new customs officers
140 new inspectors NVWA
Total additional costs customs formalities million per year, excluding duties
No law enforcement customs infrastructure available for primary route to the UK (Ferries)
Trade and law enforcement agencies are not ready in time