On January 1, the United Kingdom confirmed its announced departure from the European Union (EU). The so-called Brexit became effective after the EU and the British reached a last-minute agreement on December 24, a principle of Trade and Cooperation Agreement to govern their relations from now on. This agreement specifies many of the issues that concern the more than 3,300 Catalan companies that export to the United Kingdom, of which 2,200 do so regularly.
Between 2019 and 2020, up to 1,800 companies have already visited the ACCIÓ Brexit Desk to resolve their doubts. Now, in year 1 of Brexit, this information and advisory service ---online, in person, and on the ground, from ACCIÓ's office in London--- is consolidated as key to helping Catalan companies adapt to the new reality of UK-EU relations.
In the short term, companies will find more complexity when importing and exporting to the United Kingdom as a result of changes in customs procedures that will involve greater bureaucracy and relevant inspections for some products. This will also lead to greater logistical complexity.
Furthermore, the lack of time to ratify the agreement between the EU and the United Kingdom before the transition period ended on December 31, 2020, meant that both parties agreed to its provisional application from January 1 of this year. The European Parliament has until February 28 to ratify and sign the agreement. Therefore, the information available today is still provisional and will need to be reviewed once the agreement is ratified.
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The most notable changes
▪ There will be no tariffs. The Trade and Cooperation Agreement signed with the EU creates a free trade area without quotas or tariffs.
▪ There will be border controls. By being outside the customs union and the single market, the movement of goods will be subject to the inconveniences of border bureaucracy, despite the fact that Brussels and London have agreed on some simplifications of controls. However, companies that want to export to the United Kingdom must inform themselves about the documentation to have prepared so that their goods are not held at the border, such as the Kent Access Permit, the EORI (Economic Operators Registration and Identification number), or general documentation (export DUA, Invoice, Packing List, etc.)
▪ New regulations. All products will be subject to UK regulations, which will not necessarily be the same as those of the EU. However, a system has been created to simplify the process by creating "self-certificates" of compliance with the rules.
▪ Included sectors. The trade agreement covers some services such as, for example, telecommunications, transport, audits and legal services, but, currently, it does not refer to others such as audiovisual or financial.
▪ Mobility of people. No visa is needed for tourism for less than 6 months (passport is needed, from October 1 of this year). As for workers, entry conditions for foreigners must be met. The British government has a "points-based immigration system" that prioritizes highly skilled workers. This does not affect Europeans residing on the British island, who will maintain their rights intact.
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Òscar Martí: "Every company with potential must have an
opportunity in the United Kingdom"
The director of ACCIÓ's Foreign Office in London, Òscar Martí, has experienced Brexit on the ground. With finally definitive conditions, the support of ACCIÓ's Brexit Window helps clarify the path for all Catalan companies interested in the United Kingdom.
--- Is the last-minute agreement good news for Catalan companies?
--- The most important thing is that we have avoided tariffs and now we have a defined framework and we know what areas we are talking about and with what impact. Internationalizing in the United Kingdom will always be somewhat more complicated than before, but it will be less so than in most non-EU countries.
--- More than 3,300 Catalan companies export to the country. What should they take into account?
--- An EORI will be required. It is a simple and quick but essential procedure when exporting outside the single market. General export documentation (DUA, Invoice, Packing List, etc.) will also need to be prepared. For any questions about these procedures, ACCIÓ's Brexit Window can help resolve them quickly.
--- A Catalan company that has not worked the British market, why should it consider going precisely now?
--- It is the fifth largest economy in the world and one of the world's leading hubs in life sciences, finance, and technology. Every company with potential must have an opportunity in the United Kingdom. From ACCIÓ's office in London, we help companies understand its particularities.
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