BRPPA give their view on BREXIT and how it will affect the industry.
CBI research on the need for regulatory convergence
The Confederation of British Industry (CBI) has published research on the regulatory needs of 23 UK industry sectors. In over 100 pages, the Smooth Operations report is based on the views of thousands of UK businesses and aims to provide Ministers with an evidence-based approach to Brexit negotiations. An important finding of Smooth Operations is that changes to rules in one sector have knock on effects for companies in other business sectors and throughout supply chains. CBI concludes that where regulatory rules ‘are fundamental to the trade or transport of goods, the UK must negotiate on-going convergence’ post-Brexit.
Click here to read the CBI research (the Chemicals section is after page 41)
Standards: Future after Brexit
Since the UK voted to leave the EU in June 2016, the British Standards Institution (BSI), in its capacity as the UK’s National Standards Body, has consulted its members and stakeholders about the possible implications of Brexit for standards. As a result, BSI’s post-Brexit position is to continue to provide UK experts with the standards development framework to support trade in the UK, across Europe and globally. To enable this, their stakeholders are clear that BSI should remain a full member of the European Standards Organizations.
BSI has produced a paper setting out its position which is based in eight key principles. These principles are supported by statements from a range of BSI’s stakeholders, including industry associations and individual companies, consumer groups, users of standards and professional institutions. This can be found here.
REACH and Brexit
The UK’s ‘divorce’ from Europe also throws into question how legislation – much of which is stipulated by the European Union – will affect us if we are no longer a part of it. One of the major legislative regulations affecting our industry is REACH, which concerns the Registration, Evaluation, Authorisation and restriction of Chemicals. It exists to provide a high level of consumer health protection and safeguard the environment as well as driving innovation in the EU chemicals industry. Only Representatives (ORs) must be located in an EU member state to register chemicals under REACH. After Brexit that means UK Companies exporting to the EU will need to create an office in a member state, if they do not already have one, unless a different arrangement can be negotiated.
The Government is considering on a contingency basis a bespoke UK system equivalent to REACH under which all imported chemicals must be registered in the UK. Underpinning it would need to be an IT system to enable registration and regulation of chemical substances placed on the UK market which is currently regulated by EU REACH. Work on this IT project is now in train so that, not only will this new system and function be in place for the beginning of a transition period, it will also be ready to use should the negotiations result in no deal with the EU. This is a fall-back option only since the Government has expressed a strong preference to remain in as close an alignment with REACH as possible.
Rules of origin and Brexit
The application of rules of origin is one of the most complex challenges which companies will have to face if they trade into the EU and (as is the intention of the Government) the UK is not in a customs Union with the EU. The Department of Business, Energy and Industrial Strategy specific concerns which (BEIS) is consulting with individual sectors on particular issues and concerns that the latter may have and have invited us to participate if we wish to do so. If you have any concerns or indeed you would like to act as a case study for our sector please let John Dorken know. Read below for an extract from a BEIS paper which provides QAs on the main elements of the issue
What are rules of origin?
Why are they important?
Why don’t I know about them / use them now?
What is the difference between preferential and non-preferential rules of origin?
Will we remain in a customs union with the EU?
Are customs arrangements, tariffs and rules of origin linked?
How will rules of origin apply in future trading relationship?
Does the Government have any objectives for a future rules of origin regime?
In a future agreement on rules of origin, the Government’s objective is to ensure:
a) UK goods can continue to qualify for preferential access to the EU market.
b) The continuation of robust enforcement mechanisms to prevent non-compliant goods entering the market.
c) Burdens placed on business are reduced as far as possible.
If this is industry led how does BEIS intend to engage with business?
BEIS has consulted with a wide mix of stakeholders to consider a range of tools and models to engage business on this issue.