ATA Carnets – Post-Brexit Possibilities
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
Email: .(JavaScript must be enabled to view this email address)
Website: http://www.blaircarnets.co.uk