Briefing Paper 69 – September 2022 Download Briefing Paper 69 Peter Holmes, Anna Jerzewska and Guillermo Larbalestier Key Points Introduction Freeports and Duty Drawback Prohibition in FTAs Freeports and Origin Freeports and Subsidies How has this been addressed in other agreements? Conclusions Key Points This paper discusses some of the obstacles that goods from UK Freeports may face when exported to countries with which the UK has a preferential trading relationship. Many of the UK’s Free Trade Agreements (FTAs) contain provisions that deny preferential access to goods which, during their manufacturing process, benefited from duty drawback, i.e. the refund of – or exemption from – customs duty on imported inputs. The originating status of goods produced in free ports may be affected by rules going beyond direct provisions in FTAs. The origin of a good produced in a free port may be affected by the customs legislation of a trading partner. The tax incentives offered by the UK Freeports may be perceived by an importing partner as unfair export subsidies. Counter measures against subsidies may be taken under provisions in the FTAs, World Trade Organization (WTO) rules, or unilaterally. FTA agreements around the world treat free ports differently. [...]

Download Briefing Paper 62 Briefing Paper 62 – October 2021 Anna Jerzewska Key Points Introduction The impact and types of response to Brexit Conclusion Key points The introduction of a new regulatory and customs border has made it more difficult and more expensive to trade with the EU. This impacts UK firms who import and export from and to that market. However, the impact of Brexit on UK importers and exporters is not homogenous. The paper identifies the nine most common responses to Brexit. Confusion about the new rules has resulted in a widespread lack of compliance. Often companies that have realised that they have not been compliant choose to “put a line under it” rather than disclose it and amend the records, citing the lack of sufficient guidance as justification. Increased costs resulting from the new border impact profit margins. These additional costs need to be absorbed at some stage in the supply chain or passed on to the final consumer. […]

Download Briefing Paper 52 Briefing Paper 52 – January 2021 Yohannes Ayele, Michael Gasiorek, Peter Holmes, Anna Jerzewska, Suzannah Walmsley Key Points Introduction Tariffs Customs and Trade Facilitation Rules of Origin Mutual Recognition of Testing and Certification Fisheries Conclusion Key Points The Trade and Cooperation Agreement (TCA) offers complete elimination of tariffs and quotas providing firms can prove their goods satisfy the rules of origin requirements, and providing no measures are introduced for other purposes such as trade defence or ‘rebalancing’ measures. The rules of origin are complex, bespoke and compared to those used on other EU agreements they differ in terms of distribution and details. In some cases, they appear more liberal than those used in the Pan-Euro-Mediterranean(PEM) system, in other cases the reverse applies. Customs and trade facilitation in the TCA is comprehensive and broad and provides for the possibility of close cooperation in order to facilitate bilateral trade between the UK and the EU. There is no chapter on the mutual recognition of conformity assessment (to standards), although there are some minor elements of mutual recognition, for example, with regard to automobiles and self-certification for least sensitive products. This will raise the bureaucratic complexity and [...]

Download Briefing Paper 41 Briefing Paper 41 – June 2020 Michael Gasiorek and Anna Jerzewska Key Points Introduction Differences in emphasis and interpretation The ‘which’ Flows from Great Britain to Northern Ireland Determining Risk New UK tariffs Determining Origin Regulatory Compliance Flows from Northern Ireland to GB Imports by Northern Ireland from third countries The ‘how’ Conclusion Footnotes Key Points The UK Government’s Command Paper on Northern Ireland reveals some significant differences between the position of the UK and that of the EU with respect to operationalising the Northern Ireland Protocol. These will no doubt spill over into the on-going future relationship negotiations. Some of the differences are more to do with positioning and may not be substantive. Others, such as re-interpreting the original wording of the Protocol of goods “at risk” to goods where there is “a genuine and substantial risk”, may be more substantial. The substantive differences concern which goods will be subject to checks, on which flows, and how the checks will be carried out to the satisfaction of both the UK and the EU; and relatedly, what infrastructure and institutions are needed. Determining which goods are at risk will be challenging as the final [...]