Despite the on-going Coronavirus crisis discussions on a trade deal between the UK and EU continue. In addition, UK government is setting the parameters for trade beyond the EU as part of wider negotiations with other nations and trading blocks.
On the trade talks with the EU, UK government published its ambitions for the Future Relationship, which is attached They have also published a series draft Comprehensive Free Trade Agreements. There is a specific Annex on chemicals, with the ambition set out as follows:
Annex on chemicals
16.This annex should facilitate trade in chemical substances and related products and ensure high levels of protection for the environment and human and animal health. It could provide for cooperation between UK and EU authorities, including on implementing the Global Harmonised System of Classification and Labelling of Chemicals. In order to ensure high levels of protection and to support UK and EU businesses to meet the separate regulatory requirements of the two markets, the parties could agree data and information sharing mechanisms, in line with the relevant provisions set out in UK and EU regulation and existing third-country mechanisms.
17.This annex should also include a commitment to develop a memorandum of understanding (MOU) to enhance cooperation further, similar to the MOUs that the European Chemicals Agency has agreed with Australia and Canada.
I have attached the full document. More details can be found in the draft CFTA from page 68 onwards. You can find more details by following this link
General Trade and Tariffs
At the end of the transition period, a set of revised tariffs have been published for those importing goods. Under WTO rules a country must offer the same trade terms to all nations unless there is a specific trade deal in place. Should there be no specific deal between the UK and EU by 31st December these tariffs will apply to all goods you import from the EU 27 . The database can be found here.
This is very much a tidying up process, with tariffs being put in to bands and rounded down to whole numbers, but some so called “nuisance tariffs” have been deleted completely, I think the technical term is liberalised. For example:
- Air Fresheners or “Preparations for perfuming or deodorising rooms” (WTO Code 3307 49 00) have changed from 6.5% to 6.0%
- Personal Deodorants and Antiperspirants (WTO Code 3307 20 00) have moved from 6.5% to 6.0%
- Tinplate can (WTO Code 7310 29 10) used to have a 2.7% tariff, this is now zero.
- Aluminium aerosol cans (WTO Code 7612 90 20) stay at 6%
- Aerosol valves or “Mounts and heads for scent sprays and similar toilet sprays” (WTO Code 9616 10 90) have moved from 2.7% to 2.0%
If, from your experience, I have not chosen the correct tariff code please let me know.
Others have been updated to Sterling:
- Denatured Ethyl Alcohol (WTO Code 2207 20 00) was €10.20/hl this is now £8.50/hl
For those exporting I’m afraid I have no knowledge of the EU position. I would suggest, at this stage, you should consider the existing WTO tariffs as applying but I will endeavour to find out more.
Should you have any questions or queries please do not hesitate to contact me.
BAMA Chief Executive
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