Update on Brexit Mark Johnson – KN UK - Director Customs and Trade Control Nov 2018

The Position as of 15 Nov 2018

The UK Prime Minister has secured agreement from the Cabinet for the “Draft” Withdrawal agreement What happens next:-

• UK Prime Minister will present it to Parliament in the House of Commons - 15 Nov 2018

• Then it needs to go to the European Parliament – now 25 Nov 2018 confirmed by Michel Barnier The politic declaration to support the agreement needs to be constructed between now and 25 Nov 18

• Then it is back to the UK parliament for a meaningful vote – Due Dec 2018 –TBC

Statement within the agreement “Until the future relationship becomes applicable, a single customs territory between the Union and the UK shall be established (Single Customs Territory). Accordingly, Northern Ireland is in the same Customs Territory as the GB; the Customs territory of the GB” Any extension to the transition period from Dec 2020, needs to be agreed before 1 July 2020- It will be at a cost! 15

Important Note

The information contained in this guidance is valid only at the time of writing and is only to be regarded as an

opinion offered by Kuehne + Nagel Ltd.

Nothing contained herein is legally binding on Kuehne +

Nagel Ltd. and shall not be considered as such

Current version: Nov 2018

Nothing is agreed until everything is agreed

Soft or Hard Brexit

Brexiteers and Pro-EU

FTA Agreement & WTO Rules

NI Border

From “The” to “A” Customs Union

Single Market

Brexit Terminology

Transition Agreed and Ratified

Article 50 (March 2017)

Negotiators

Customs & International Trade Considerations The UK will exit the EU on 29 March 2019 (Brexit Day)

- The current UK Government has secured the principle of a transition period to 31 December 2020

What are the issues? - The transition will only be in place if an overall withdrawal agreement is signed and ratified - The role of the European Court of Justice and the future of the Irish Border - Backstop Dec 2021 ?

Hard Brexit (29.03.19) Soft Brexit (End of Transition) + All imports and exports to the EU will require full customs

declaration – How, where and when?

+ All Imports from EU become dutiable in the absence of a Trade deal/reversion to WTO rules

+ Goods will be required to be cleared at port of entry and fiscal collection needed

+ The UK is likely to apply same external tariff as the EU

+ AEO will be of use theoretically. No other Trusted Trader mechanism in place/AEO lite!

+ Transit through EU & excise goods: time-consuming procedures; high potential fiscal and double-duty risk.

+ A trade deal would mean no or reduced impact on duties on intra-EU traffic.

+ The UK will likely remain in “some form” of Customs Union

+ An extension to the current EU declaration process maybe an option

+ The desire to retain in the EMCS/Common Community Transit Convention in some form

+ The transition period would most likely not be enough to agree on a comprehensive trade deal

+ CHIEF replacement CDS will be in place

“Nothing is agreed until everything agreed”

Transition Deal – 23 March 2018

The key aspects of the agreement announced in Brussels are:

The transitional period will last from ‘Brexit Day’ on 29 March 2019 to 31 December 2020 [ the hard stop is the next EU Budget period starting January 2021 which they do not want the UK to be part of.]

EU citizens arriving in the UK between these two dates will enjoy the same rights and guarantees as those who arrive before Brexit. The same will apply to UK expats on the continent

The UK will be able to negotiate, sign and ratify its own trade deals during the transition period

The UK will still be party to existing EU trade deals with other countries Northern Ireland will effectively stay in parts of the single market and the customs union in the

absence of other solutions to avoid a hard border with the Republic of Ireland

Kuehne + Nagel: Taking Action

A dedicated Brexit team has been created with representation from across the business.

Their role:

Monitor the progress of the negotiations

Understand what the new arrangements mean for KN & our Customers

Maximise opportunities and reduce business risk

We’re doing this by:

Scenario mapping

Working with industry and Government bodies

Create and deliver a clear communications strategy

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Brexit Relationship Matrix

Pawel Jarza

Policy and Compliance

Advisor

Zoe Ryan

Senior Policy Advisor

Road

Richard Thompson

Senior Policy Advisor

Maritime

Alison Lockyer

Sam Watts

Senior Policy Advisor

Maritime

Kraig McCarthy

Aaron Dunne

Customs EU Exit

Policy Team

Lara Robinson

Principal policy adviser,

EU negotiations

Richard Burnett

CEO

Kevin Richardson

CEO

Duncan Buchanan

Deputy Policy

Director

Robert Windsor

Executive Director

Charlie Elphicke

Dover

Chris Grayling

Secretary for State

Transportation

Mark Johnson

UK Customs and

Trade Control Director

Mark Corby - UK

National Customs &

Trade Control Mgr

Flo Saulnier

Strategic Business

Support

Jim Hedderwick

Rail & Road Director

Christopher Kingshott

Strategic Programmes

Director

Marc Wynne

UK Intermodal

Manager

Phil Hayes

Office Manager -

Dover

Karen Wheeler

Director General

Border coordination

John Keefe

Director of Public Affairs

Jeanette Burton

Head of HR – Food

services

Recruitment

Temp agencies

Santa Fe

Tony Thomas

Border Coordination

Chris Seaton

Head of Public

Affairs

Chaz Walia

Had of business

engagement

James Clarke

Policy Advisor - EU

Exit Roads

James Cooper

Chief Executive

Members of Parliament

Andrea Cranfield

Imp Project Mgr

Frank Dunsmuir

HMRC A/C Mgr

Fujitsu

Software Provider

James Hookham

Deputy Chief

Executive

In Summary

• We are connected, front and centre with the government and industry bodies

• KN Brexit team of 15 senior managers from all business and functional units to ensure all potential aspects of the Brexit negotiations are closely monitored

• Recognition there are only speculations and political intentions

• Technical Notices (23 Aug ‘18 , 13 September ’18 and 12 oct ’18 – Partnership Packs 23 Oct 18)

• What can you do today?

• Full description of goods on your EU commercial invoices

• A Letter of Empowerment

• EORI Registration Number

• Paying For Any Duty & VAT

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Finally - Study June 2018

• Baker Mc Kenzie – Multi-National law Firm established 1949 – Ranked as the 2nd largest Law Firm in the world

• Commission a survey of 800 Businesses across six major EU27 Markets (FR,DE,ES,NL,SE,IE) • Business with at least GBP 250 Milo or equivalent of T/O, 32% were more than GBP 1 Bilo in T/O

• They asked a number of questions relating to:-

The businesses about the impact of Brexit to date, Business preparedness for the future and sentiment towards the UK

15

• However……..

• Here are some High Lights:-