TradeLane

Since the Brexit referendum was held, the UK government has focused significant time and energy on establishing a negotiating position for the separation. The policy was outlined in an early February 2017 whitepaper entitled, “The United Kingdom’s Exit from and new partnership with the European Union.” While not delving into significant detail on the referendum’s impact on trade, nor the UK’s negotiating tactics, the policy document outlines the ultimate goals for the separation.

This is one of those scenario’s we see all the time:

Asia Customs Broker: Hello, Mr. Ahmad, we are sorry. The customs manual documentation cannot be completed because we are missing the HS codes. Can you provide us with the correct one so that we can proceed with the permit application and import declaration, please?

Logistics Employee: Can’t you check our previous shipments? This is not the first time we have imported similar materials into our warehouse! You should have all the details!

Recently there have been a lot of headlines about who will do what when it comes to trade. In the U.S. a big piece of the recent election turned to “protection” of industries, workers, etc. In fairness, I’m a free trade kinda guy. It directly pays my salary. I’m willing to bet there are a number of people who don’t realize their salary, in part at least, is also subject to free trade.

Free trade agreements don’t just work for goods that cross borders, they also play in a lot of other arenas. For instance, the service sector, which includes remediation of disputes, human rights, fair labor standards and practices.

Ever wonder why we haven’t had any “major” conflicts in the past 70 odd years? Trade in general and free trade specifically have a lot to do with it. Why would you want to go to war with your biggest customers?

Binding rulings allow an importer to get a determination on the correct classification and duty rate for their products in advance of importation.  A binding ruling request can be submitted electronically or in a letter to the CBP Information Exchange, National Commodity Specialist with a detailed description of the product along with relevant specifications, descriptive literature and samples. The importer generally receives a response within 30 days. Once Customs issues the ruling, the classification is binding for all US ports.  

A lot has happened since the June 24^th referendum in the UK to leave the European Union. Surprisingly, there may be more uncertainty now than there was immediately following the vote three months ago.

We’ve since gotten a new Prime Minister, Theresa May, who has formed a government department to manage the negotiation process with the European Union - dubbed “The Three Brexiteers.” The principle architects for the Brexit negotiation are David Davis, the Secretary of State for Brexit; Liam Fox, the International Trade Secretary; and Boris Johnson, the Foreign Secretary.

So, now that we have some clarity on who will be in charge of negotiating the terms of Britain’s exit from the European Union, we should know how the process will unfold and what impact this will have on UK, European, and global businesses, right?