Hard Brexit Impact Analysis

Page 81 of 106 Category If no agreement is reached: Consequence EU Document Trade Customs As of the withdrawal date, the EU preferential trade arrangements with third countries in the field of the common commercial policy and customs no longer apply to the United Kingdom. As of the withdrawal date UK products, goods, components, ingredients etc. are no longer considered of EU origin for preferential trade situations (import and export). WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF CUSTOMS AND EXTERNAL TRADE Trade Customs Goods exported from the EU: These may benefit from preferential tariff treatment in an EU FTA partner country when they have EU preferential origin. As of the withdrawal date, an EU FTA partner country may consider that goods having an EU preferential origin before the withdrawal date no longer qualify at the moment of their importation in that third country, due to United Kingdom inputs not being considered as ‘EU content’. As of the withdrawal date, in case of verification of the origin of goods exported to a third country under preferential treatment, the exporters in the EU 27 may, upon request from that third country, have to prove the EU origin of the goods taking into account that United Kingdom inputs no longer account as ‘EU content’. Irish goods or products with UK sourced or produced content or ingredients that have not left the EU for their destination by the withdrawal date will have to provide additional proof of origin for the UK content which is no longer covered by preferential origin agreements. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF CUSTOMS AND EXTERNAL TRADE Trade Customs Goods imported into the EU from third countries with which the EU has preferential trade arrangements receive preferential tariff treatment if they comply with preferential rules of origin. The origin of the goods is certified either by governmental authorities (‘certificates of origin’) or by the exporters themselves (subject to prior authorisation or registration), through 'declarations’ or ‘statements’ on origin made out on commercial documents. The origin of goods may be subject to verification by the exporting party, upon request from the importing party. To provide evidence of compliance with origin requirements, the exporter obtains from its suppliers supporting documentation (such as ‘supplier’s declarations’) that allow for the traceability within the EU of the production processes and supplies of materials until the export of the final product. As of the withdrawal date United Kingdom inputs incorporated in goods obtained in third countries with which the EU has preferential trade arrangements and imported into the EU will be ‘non- originating’, in particular in a context of cumulation of origin with the Non EU Goods or products with UK sourced or produced content or ingredients that have not left for the EU by the withdrawal date will have to provide additional proof of origin for the UK content which is no longer covered by preferential origin agreements. WITHDRAWAL OF THE UNITED KINGDOM AND EU RULES IN THE FIELD OF CUSTOMS AND EXTERNAL TRADE