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London – For businesses, the UK-EU trade deal is a relief as it mitigates some of the worst shocks they face, but will not completely replace bloc membership.
As the UK is no longer part of the EU customs union and single market, trade will not flow as smoothly as before. Companies will have to present new procedures and their products run the risk of being detained at the border. Financial companies will lose their passport to offer services throughout the EU; and consumers will see their rights to live and stay on the other side of the channel restricted. Even bringing a pet dog to the mainland will get more complicated.
This is what will change on December 31st.
customs
Companies exporting to the EU must submit customs declarations. To move goods from Dover to Calais, the UK’s busiest crossing point with the EU, truckers will need a government-issued permit showing that they have proper documentation and that they will not be held by French officials.
Faced with the threat of border delays, automakers, aviation companies and other manufacturers that depend on parts arriving just in time have built up their reserves. Food manufacturers run the risk of fresh produce spoiling in waiting lines.
The trade in animal products, in particular, will be subject to new procedures. The goods must pass through designated border inspection posts and will require export health certificates issued by a veterinary professional.
While goods leaving the UK will face checks from December 31, 2020, Britain has postponed full import checks on goods from the EU until July 2021. But companies will still need to keep records of your transactions and file customs declarations in July.
City of London
Regardless of the deal, financial companies will lose their passport to offer services across the EU, forcing them to change staff and strengthen their operations in the bloc. Access to the bloc’s clients will depend on whether the EU considers the UK’s rules to be equivalent to its own in 40 areas, something that has not happened so far. Companies cannot be sure that the permit will be granted, and the EU will still be able to withdraw it without prior notice.
Services
Services, which represent 80% of the British economy and include sectors such as auditing, architecture and consulting, will face new restrictions. Companies may need to establish an EU office to continue trading and may require local approval for their professional qualifications.
Rules of origin
To take advantage of duty-free trade under the agreement, companies will need to submit documents proving the origin of their products. Only products that contain a sufficient amount of UK or EU inputs will be eligible for zero-fee treatment.
Rules
Companies may have to comply with two separate regimes for product standards and regulations, needing approvals from UK and EU bodies to be entitled to sell in both markets. For example, some products will need to carry a new United Kingdom Conformity Assessment (UKCA) mark from 1 January, instead of the EU CE mark, to be sold in Great Britain.
Passports and pets
British visitors to the EU will need more than six months on their passport to travel. Staying in the EU for more than 90 days may require a visa.
Motorists may need an international driving license. Bringing a pet to the mainland will require the British to obtain vaccinations and a health certificate, a process that could take several weeks.
Immigration
Free movement between Britain and the EU will end. The UK plans to use a “point-based” immigration system, whereby foreign workers must show that they meet certain criteria before they are allowed to go to Britain to work. The criteria include speaking English, having an existing job offer and earning more than £ 20,480 a year.
Wine and cigarettes
British travelers heading to the EU will be able to benefit from duty-free shopping at ports and airports. However, it will no longer be possible to bring back unlimited quantities of products such as alcohol and tobacco from the EU, subject to the payment of the corresponding taxes. Instead, buyers will have duty-free allowances: 200 cigarettes, 18l of wine, and 4l of spirits.
Bloomberg
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