BREXIT Update

September 16, 2019

Is the end in sight?

On October 31st, the UK should be leaving the EU, possibly without a deal. The house of commons is showing an evident split over Brexit,  party lines have been crossed, resignations rife and tempers flaring. The government are in the minority, MPs that oppose Brexit in its hardest form are in the majority, but with out numbers to agree upon, any one of the departure oprtions available are still on the table and breakthrough does not appear to be in sight. How do you overcome this? The Prime Minister, Boris Johnson, has suggested a general election, but this also deems to have little support and has been rejected twice in parliament.

There are also calls within parliament to extend Article 50 again until January 2020, however would this bring a breakthrough that will be supported by the majority? 

The European Union may not agree to any further extensions - have the United Kingdom had their last chance with their European counterparts? 

Could there be a breakthrough?

It was intimated this week that the DUP may back down on their red line positioning, so as to allow some harmonization of rules in Northern Ireland and maybe implementing checks at the Irish Sea, however, Arlene Foster regected the idea on Friday and insisted that the DUP would never accept any barriers to East-West trade. A replacement for the Irish backstop has not been determined as yet. Parliament has been pro-rogued and the pressure is on Boris Johnson to honour the law as set by parliament or to re-open parliament to allow further debate. His most recent dialogue claimed 'I'd rather be dead in a ditch than agree an extension'. 

The deadline for the United Kingdom to leave the European Union is currently set for October 31st, 2019, a date which is fast approaching. 

Questions

If you are concerned about Brexit and how this will impact your supply chain operations in Europe, please reach out to the team at Crane Worldwide Logistics, we are here to help you now. 

 


BREXIT UPDATE - How will your logistics organization be affected? 

Since the last update, we have seen Boris Johnson take over the UK Prime Minister's role following his appointment to lead the Conservative Party. His promise to the country is to lead the UK out of the EU by October 31st by any means, which included leaving the EU without a deal. However, the numbers within parliament are heavily stacked against him, his goverment and a No Deal departure, therefore, Johnson recently took the decision to close the current session of parliament early. This is referred to as 'proroguing parliament'. The idea is to bring in a new Parliament which commences with a Queen's speech, outlining the Government's plans for the the new parliamentary session. 

By proroguing parliament, it also reduces the number of sittings in the House of Commons and therefore reduces the possibilitiy of adding further business to the already busy schedule, such as blocking a No Deal exit from the EU. The opposition parties consider this as unconstitutional and undemocratic. If No Deal was kept on the table, the ultimate plan would be to outline to the EU that they should renegotiate certain aspects of the current deal created by the former Prime Minister. 

The situation therefore could lead to the UK walking away from the EU if the deal is not accepted. Boris' claim that taking No Deal off the table then reduces the ability to renegotiate. 

On September 3rd, parliament voted to take over business in order to prevent the UK leaving the EU without a deal in place. This would then see the option of article 50 being extended until January 2020 and provide an opportunity to renegotiat a deal that is accepted by all parties concerned. In response, the Prime Minister has announced that he will consider a general election to take place in October. 

What now? The stakes are still high, law passed by the UK parliament preventing a no deal outcome may not prevent a No Deal exit on October 31st. The decision of an extention lies with the EU. With the USA - China trade war also pressing down on the global economy, Brexit with No Deal exit could lead to yet more uncertainty.

At this stage, there is not one foreseeable outcome that is most prominent. Crane Worldwide Logistics will keep you updated with all the latest information, please don't hesitate to reach out if you have concerns for your business. We are here to help! 

 

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H.M Customs & Excise are pleased to announce a new EU Exit service for EU Exit questions, covering Customs, VAT and Excise. 
 
The service uses a dedicated mailbox (negotiationstechnical.customs@hmrc.gov.uk). It's available to business organizations only - we are not offering a general Q&A service to all customers, as we would like to encourage use of the wide range of resources on the Gov.uk website.
 
When sending a question, help us to help you by:

  • Telling us which Gov.uk guidance pages you've already consulted - we continually improve our webpages so if you have any comments or suggestions please let us know
  • Letting us know whether this query has already been submitted to HMRC via a different route
  • Giving a clear statement of your question, so we can give as comprehensive an answer as possible

There are just a few areas that we don't handle:

  • Operational activity at the UK border - this is a Border Force responsibility.  HMRC sets policies but does not have a border presence
  • Quotas (apart from first come first served) or licensing - these are not HMRC matters
  • Income tax, corporation tax and other direct taxes
  • Progress chasing applications - please contact our helpline on 0300 200 3700, or for EORI,  0300 322 7067 (Mon - Fri, 8am - 6pm)

We aim to answer questions within five working days. If this isn't possible for any reason, we'll let you know.

This is a temporary service designed only for EU Exit issues. We will therefore review its operation when the UK has left the EU.

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