TradeLane

Brexit over Breakfast

Posted by Matt Springate

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6/24/16 11:30 AM

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I have come to quite enjoy the ‘Full English’ breakfast since moving to London last year. Packed with all the day’s calories and none of its nutrition, the full plate of eggs, bacon, hash browns, beans, and tomato has become a weekend favourite.

My breakfast on June 24th was a much more sensible choice of coffee and toast. However, it was made memorable by the Referendum results in Britain over whether or not we should stay in the European Union.

With all votes tallied, the United Kingdom had decided by referendum to leave the EU.

While I’m not quite sure that anyone is fully aware of the economic and political ramifications of this decision, we can make a comment on the short-term future of trade compliance within the United Kingdom. I had the privilege of speaking at a customs compliance event in London a few weeks ago along with an HMRC representative.

HMRC’s message is that, until repealed, replaced, or revised, the Union Customs Code (UCC) is still the law of the land in the United Kingdom. For the foreseeable future, UK traders will still be able to benefit from programs such as Authorised Economic Operator Status (AEO), a common tariff with the European Union, and duty free access to certain markets through trade agreements negotiated by the EU.

Withdrawal from the European Union will be a lengthy process. Governed by Article 50 of the Lisbon treaty, Britain must negotiate the terms of its relationship with the European Union. Based on this article, the withdrawal agreement, which is setting out the framework for the future relationship, will be concluded by the Council (acting by a qualified majority) after obtaining the consent of the European Parliament. This process will likely take years to unfold.

Until then, we’ll keep you posted on the effect on trade compliance and try to eat sensibly in the morning.

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Topics: Europe, Brexit

Written by Matt Springate

As Principal for Tradewin’s practice in Europe, Matt brings extensive experience in working with importers and exporters to perfect their compliance operations. He specializes in duty recovery programs, preferential trade agreement qualification, tariff classification, and audit support. Prior to joining Tradewin in Europe, Matt worked for Tradewin in the U.S. for four years. His most recent role was as Manager of Tradewin’s U.S. Duty Drawback practice. There, he pursued duty recovery programs for companies in every industry, including automotive, pharmaceutical, fashion and retail. Preceding that role, Matt supported Tradewin as an Import Services Consultant, where he assisted clients with first sale for export programs, prior disclosure presentations to U.S. Customs, and import declaration auditing. Matt holds a Master of Arts degree in Diplomacy and International Commerce from the University of Kentucky and a Bachelor of Arts degree in Political Science from Furman University. He is a Licensed Customs Broker in the U.S. and is IATA/FIATA Certified.