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It's somehow halfway through the year, so welcome to the June edition of the BPIF's Brexit Bulletin!
In this month's Bulletin - the carnet system, tariffs and views of the wider manufacturing industry. Plus, we'll look at the two Prime Ministerial hopefuls and their views on Brexit.
You can add colleagues to our mailing list by logging into the members' area of the BPIF website or contacting your Regional Director. ( https://www.britishprint.com/login/ )
In this month's Bulletin:
1. Brexit update
2. Tariff news
3. Carnet system
4. MakeUK manufacturers' survey, June 2019
5. British Chambers of Commere risk register
6. Latest publications
Brexit update
Tory MPs have voted five times in order to whittle their candidates down to the final two, Boris Johnson and Jeremy Hunt. The wider Conservative Party, with its 160,000 or so members, will now decide their next leader - and everyone's next Prime Minister - over the course of July.
On the whole, the Brexit process remains at a standstill while a new Prime Minister is awaited. The continuing uncertainty remains a frustration within the print industry (and many others) as the potential for further delay and a no-deal Brexit remain on the table. According to Printing Outlook Q2 2019, over half of you are unconfident in the outlook for the UK economy. Key concerns remain the security of supply chains, non-tariff barriers and general cost inflation.
So, where do the candidates stand on Brexit?
Jeremy Hunt
- Would leave the EU with no-deal, but it's not his preferred option.
- Wants changes to the Irish backstop and proposes sending a new negotiating team to Brussels.
- Wants to make changes to the withdrawal agreement and thinks it's possible to get them done by 31 October, but has not ruled out an extension.
Boris Johnson
- Has pledged to get the UK out of the EU on 31 October, thinks the chances of a no-deal Brexit happening are a ‘million to one'.
- Would like to leave on the basis of a new withdrawal agreement negotiated with the EU, with the backstop removed and replaced with ‘alternative arrangements'.
- Says he would demonstrate "creative ambiguity" over when the UK will pay the £39bn "divorce" payment it is due to give the EU as part of the negotiated deal. He has also said the money should be retained until there is "greater clarity about the way forward."
Want to compare the candidates? The BBC has a useful page which allows you to compare the two's policies on tax, immigration, education and so on. Plus, a timeline of their (strikingly similar) lives and careers to date.
Carnet system
If you move items temporarily within the EU (for example, materials for trade shows or exhibitions, samples etc) you may currently use the ATA carnet system. Organisations which issues carnets charge a fee for the carnet and require the holder to provide them with a guarantee, or other security, in case the goods are incorrectly used or not re-exported from the country visited. The carnet must be presented to customs each time the goods are imported, exported or pass through a country.
To read more on the carnet system, please click the link below.
Tariff news
We've previously published information about the Temporary Tariff Regime ( https://www.gov.uk/government/news/temporary-tariff-regime-for-no-deal-brexit-published ) on imports that will come into force if the UK leaves the EU without a deal. Under this regime, 87% of imports will be eligible for tariff free access for at least a year following a no-deal Brexit.
Boris Johnson claimed this month that a provision under the General Agreement on Tariffs and Trade - known as Gatt 24 - could be used to avoid tariffs on both imports and exports under World Trade Organisation (WTO) rules for up to 10 years.
To read more tariff news, please click the link below.
MakeUK (formerly EEF) anufacturers' survey, June 2019
The MakeUK recent survey of manufacturers across industries found that:
- 50.7% of manufacturers surveyed identified ‘more risks than opportunities' in 2019.
- Almost three-quarters (72%) of companies agree that Brexit is their main source of uncertainty for 2019.
- Significant exchange rate movements and delays at customs are highlighted as the most significant risks.
- Exchange rate movements top the ranking of risks to manufacturers with just 19% not seeing significant currency movement as a risk in 2019. Of the 81% worried about the value of sterling, three-quarters associate this risk with Brexit.
It seems the manufacturing industry at large echoes the confidence and concerns of print when it comes to Brexit.
British Chambers of Commerce risk register
The British Chambers of Commerce publishes a risk register, updated this month, of Brexit progress. It assesses business-critical issues and uses a red/amber/green system to rate the level of risk across a number of business areas, from staffing to tax. Currently only three risks are rated green, with 15 areas remaining in red - high risk/low progress.
To view the latest update, please click the link below.
Latest publications
We've trawled through the latest publications about Brexit of particular relevance to the printing industry.
Contact
For more information please contact Carys Davis at [email protected]
29 July 2019
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