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As a global (rather than EU) agreement, there are no current plans to overhaul the ATA Carnet system after the U.K leaves the European Union, however some minor changes may be implemented depending on the outcome of the ongoing Brexit negotiations. Preparations have been made by the London Chamber of Commerce for each eventuality, with the most likely outcomes listed below:
An agreed withdrawal process: If the U.K and EU secure a withdrawal agreement prior to the current Article 50 expiry date, the short-term impact will be minimal, with a transition period being implemented until at least early 2021. ATA Carnets will continue to be used in the current manner until the end of the transition period, and the final version of the Withdrawal Agreement will provide guidance on how exporters should process temporary import and export documentation past the transition period.
A “No Deal” withdrawal process: If the U.K leaves the EU without a deal, the U.K would trade on World Trade Organisation (WTO) rules. As part of this, it is expected that ATA Carnets would be required for temporary exports from the U.K to the EU 27 countries, with the EU member states being treated as one destination for ATA Carnet purposes. The anticipated security rate for ATA Carnets destined for use in the EU is 40% against the value of the goods, however this will be confirmed in due course.
The application process and paperwork would remain the same, however new ATA Carnet documentation would be issued with immediate effect which confirms the U.K’s revised status as a non-EU member.
The above outcomes are based on the scenario that a free trade agreement is not in place between the U.K and EU, however if a free trade agreement is implemented it may include the terms that temporary imports are given duty free status, and therefore a guarantee in the form of an ATA Carnet would not be required.
Regardless of the outcome of the ongoing negotiations, Blair has a dedicated ATA Carnet department who are closely monitoring the situation alongside the London Chamber of Commerce and are ready to support exporters with their export documentation requirements in all eventualities. Please contact us via one of the following methods for current, up-to-date assistance:
Tel: +44 (0) 1784 772959
Further to our previous update on 22nd February regarding the issues affecting the electronic payment system used by the Saudi Arabian Embassy, we are delighted to confirm that we are now able to continue to lodge Corporate Legal documents to the Embassy for legalisation. Some minor delays may still occur while the backlog is cleared.
From the Blog
The latest DHL/British Chambers of Commerce Trade Confidence Index report – which measures UK exporting activity and business confidence – shows that businesses’ confidence about future turnover and profitability is at its second highest level on record, and 40 per cent of firms are looking to hire more staff, the highest number on record.
Research revealed that export orders and sales in London increased by over 10 per cent for both manufacturing and service firms in the first quarter of 2014. The index number used to calculate the volume of trade documents, administered by Chambers of Commerce across the UK, now stands at the second highest figure on record.
The key findings from the report nationwide are:
• Confidence among exporters about future turnover (71 per cent) is at its second highest level on record
• More than one third of exporters said they expect to hire more employees over the next quarter, the highest level on record
• Half of exporters said their export sales increased, compared with only 6 per cent who claimed that they fell
• More than half of exporters (62 per cent) believe that their profitability will increase this year
• The BCC/DHL Trade Confidence Index – used to calculate the volume of trade documents administered by Chambers of Commerce across the UK – now stands at 117.03 – a 3.9 per cent jump on Q4 2013 and is the second highest figure on record
John Longworth, Director General of the British Chambers of Commerce (BCC), said “these results give us many reasons to feel cheery. There is much to be happy with in these results. Our exporters are selling more, and hiring more, showing ambition and willingness to export and grow their business. They are taking advantage of the opportunities on offer when breaking into new markets and it is great to see that the volume of exports is now at an all-time high.
There is however so much more potential to realise. The government’s target of increasing exports to £1trillion by 2020 is a difficult target, but not insurmountable. But these businesses, while making every effort to expand into new markets, cannot do it alone. Government and civil servants must also play their part so we can make real in-roads into high-growth markets. And we simply must spend far more on trade support than our current 0.02 per cent of GDP, if we are to rebalance our economy towards net exports.
The British Chambers of Commerce is doing its bit, by accrediting overseas chambers of commerce and business groups in 41 countries across the globe, so that business people have a first port of call when they step off the plane, where they can receive practical advice and support on the ground. But we can and must all do more if we are to compete on a global scale in the months and years ahead”.
The 41 markets are all included in the Overseas Business Network initiative which are considered to be key destinations for UK exports and trade partnerships. The London Chamber of Commerce is part of the initiative and has appointed a regional coordinator, Marilise Saghbini, to liaise with the overseas chambers of commerce and business groups and link them to actual and potential UK exporters.
John Bains, DHL’s London Director, put the report results into context: “Exports in the capital have risen over 10 per cent from last quarters, which is the highest increase we’ve seen in the country. It demonstrates that businesses in the capital are dynamic and driving forward London’s growth.
Looking to new markets, such as Brazil, remains key for growth. The 2014 FIFA World Cup and 2016 Olympic Games also demonstrate a huge investment in this territory’s infrastructure”.