UK/EUROPE. The European Commission has confirmed that duty & tax free sales to UK-bound passengers will be permissible from member states on 1 November in the event of a ‘hard Brexit’, the ETRC said today. However, it remains unclear whether the UK will mirror these rules for EU-bound travellers, with the government required to pass legislation to ensure a return to a duty free regime for outbound travellers.
The prospects of no deal being agreed between the UK and EU has risen sharply in recent weeks, with Prime Minister Boris Johnson pledging to leave on 31 October with or without a deal.
The ETRC said it had held meetings in Brussels today to discuss the potential for a hard Brexit and the implications for our industry.
It said that the EU Commission confirmed that in the event of a hard Brexit, duty & tax free sales to UK-bound passengers will be permissible overnight (after 31 October), and that members should plan accordingly. If the UK exits the bloc without an agreement and with no transition period agreed, it becomes a third country destination, meaning that EU Single Market rules should no longer apply.
However, the ETRC noted: “The situation for duty & tax free sales for passengers leaving the UK is still not clear and the UKTRF is still seeking clear guidance from the UK government.”
The ETRC also warned: “The European Commission strongly advised us that to take particular care to order and deliver shipments of goods to/from the UK before 31 October, as there will be considerable difficulties in clearing such products due to the immediate change in customs procedures and rules.
It added: “What must be avoided in particular is that shipments are caught in transit over the 31 October/1 November period as they could get caught up in lengthy delays due to immediate changes in procedures in rules.”
The ETRC also highlighted the potential for “significant difficulties” with excisable goods and with fresh food which will be subject to changes on how they are handled by Customs authorities and other government departments. The ETRC advised that this be factored into members’ planning and that sufficient stocks be built up to cover the immediate period post-Brexit.
In related news, emergency legislation guaranteeing slots for airlines for flights to the UK will be extended until October 2020. This means that there will be one year to find a longer term solution for airline market access.
ETRC President Nigel Keal said: “Today in Brussels, the European Commission reiterated its earlier position that duty & tax free sales will be allowed for all passengers to the UK from 1 November in the event of a hard Brexit. Furthermore the European Commission strongly advised us to prepare for lengthy delays and holdups for the delivery of stock in the immediate post-Brexit period and we must therefore plan accordingly.
“We still do not know what the situation will be for duty & tax free sales from the UK but UKTRF is engaging with the relevant government departments. Given the time it takes to prepare for this, we urge the UK government to give us clarity as soon as possible.”
