The ‘final few hours’ of the post-Brexit trade talks took place throughout December, until an agreement was struck, amid the crisis in Kent, amid COVID-19 restrictions, on Christmas Eve 2020. A year set to change the course of history.
The conclusion of a free trade agreement on the 24th of December was welcomed by the transport industry, including Peter Ward, CEO of the UK Warehousing Association and RHA chief executive, Richard Burnett.
But both warned that many details were yet to be finalised, and vast amounts of paperwork, processes and border checks were still ahead. Burnett was also pleased to report: “there will be no 10% tariff on new lorries…”
It’s a relief to know that taxes will not be added to goods, and that there won’t be a limit on the number of goods that can be traded between the UK and the EU moving forward.
Having this long-awaited deal in place, means (hopefully) that we’ve avoided goods becoming more expensive.
The BBC reported “Businesses will still need to prepare for new procedures at ports, and if new paperwork is incomplete, it could lead to disruption.”
The following key points from the British Industrial Freight Association offer further indication of what this means for the road transport profession.
- From the 1st January 2021 the UK will phase in customs entry requirements and SPS checks (Sanitary and Phytosanitary Controls) over a six month period up until 30th June 2021.
- The EU will implement full formalities with immediate effect from the 1st January 2021.
- The Agreement does not provide information regarding detailed frontier procedures including customs entries, transit licences and SPS checks.
- For border procedures when compared to “No deal”, the “Deal” changes very little in terms of border procedures. Whilst there may be tariff free and quota free access for goods moving between EU Member States and the United Kingdom all other border controls and customs procedures, as detailed in legislation and international convention (e.g. CITES and Transit), remain in place.
- The border in the Irish sea between NI and GB mainland became operational on the 1st January 2021.
- UK companies will no longer hold an EU licence or be able to perform transport services within the EU as part of the Single Market.
- The draft EU-UK Trade and Cooperation Agreement provides for quota-free point-to-point access for operators transporting goods by road between the EU and the UK. This means UK lorries would be able to reach the EU and return from the EU, including when not loaded. The same rights are conferred to EU hauliers travelling from any point in the EU to the UK, and back from the UK to anywhere in the EU. UK and EU trucks will also be able to perform up to two additional operations in the other party’s territory, once they have crossed the border. This will allow EU hauliers that carry a load to the UK to perform two cabotage operations in the UK (cabotage is the right to operate sea, air, or other transport services within a particular territory), thus limiting the risk of having to travel back to the EU without a load.
- For UK hauliers, these additional operations can be composed of two cross-trade operations or one cross-trade and one cabotage operation. Special provisions are made in the case of Ireland, as Northern Irish hauliers will be able to perform two cabotage operations in Ireland. The Agreement also provides for full transit rights across each other’s territories (to reach third countries or other parts of their own territory).
Of course, the agreement is only the first step. At HGVC, we’ll be keeping an eye on Brexit developments to ensure our services match what’s required within the UK’s new system.
As transport professionals continue to be tested, HGVC – the UK’s leading provider of professional truck driver licence acquisition – is here to ensure the UK has the drivers to keep UK transport moving.