Brexit – deal or no deal?

On 19 July 2018 the European Commission has adopted a Communication outlining the ongoing work on the preparation for all outcomes of the United Kingdom’s withdrawal from the European Union. Shortly, the message is that on 30 March 2019, the United Kingdom will leave the EU and become a third country. This will have repercussions for citizens, businesses and administrations in both the United Kingdom and the EU. These repercussions range from new controls at the EU’s outer border with the UK, to the validity of UK-issued licences, certificates and authorisations and to different rules for data transfers.

While the EU is working day and night for a deal ensuring an orderly withdrawal, the UK’s withdrawal will undoubtedly cause disruption – for example in business supply chains – whether or not there is a deal. As there is still no certainty that there will be a ratified withdrawal agreement in place on that date, or what it will entail, preparations have been ongoing to try to ensure that the EU institutions, Member States and private parties are prepared for the UK’s withdrawal. And in any event, even if an agreement is reached, the UK will no longer be a Member State after withdrawal and will no longer enjoy the same benefits as a member. Therefore, preparing for the UK becoming a third country is of paramount importance, even in the case of a deal between the EU and the UK. Having said that, preparing for the UK’s withdrawal is not only the responsibility of the EU institutions. It is a joint effort at EU, national and regional levels, and also includes in particular economic operators and other private parties – everyone must now step up preparations for all scenarios and take responsibility for their specific situation.

Stakeholders, as well as national and EU authorities, therefore need to prepare for two possible main scenarios: If the Withdrawal Agreement is ratified before 30 March 2019, EU law will cease to apply to and in the UK on 1 January 2021, i.e. after a transition period of 21 months. If the Withdrawal Agreement is not ratified before 30 March 2019, there will be no transition period and EU law will cease to apply to and in the UK as of 30 March 2019. This is referred to as the “no deal” or “cliff-edge” scenario.

SA-TU Logistics is closely following the negotiations and preparing to serve all companies having business between the UK and Finland, as well as all international freight forwarders, in customs clearance issues, regardless of the results of the negotiations.