Directorate General DG TAXUD of the European Commission publishes information regarding the impact of Brexit on export control licenses

 

 

March 08th, by Dimana Todorova

On 29 March 2017, the United Kingdom notified the European Council of its intention to leave the European Union (EU), in accordance with Article 50 of the Treaty on European Union.

Official negotiations between London and the European Union began on 19 June 2017 in Brussels and resulted in a draft agreement published by the Commission on 28 February 2018.

This draft proposes a text establishing future commercial, financial and administrative relations between the two parties but also a text relating to the transition period which will begin at the date of entry into force of the withdrawal agreement and will end on 31 December 2020.

At the end of this transition period, and subject to future agreements or arrangements between the EU and the United Kingdom, the latter will no longer be subject to customs regulations and export control regulations provided in EU law.

In order to inform economic operators, the Commission has published two notices regarding customs duties and indirect taxes, as well as import / export licenses for controlled goods.

The Commission’s notice on import / export licenses provides that from the date of withdrawal, when the import / export of goods is subject to a licensing requirement under Union law, shipments from EU-27 to the United Kingdom and vice versa will require an import / export license.

In addition, licenses issued by the UK authorities prior to the exit of the United Kingdom will no longer be valid in the EU.

To help companies better identify the licenses affected by the withdrawal of the UK, the Commission’s notice lists the different existing licenses covering a wide range of goods categories, and namely goods subject to the following export control régulations:

  • Dual use goods governed by Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items;
  • Firearms and ammunition governed by Regulation (EU) No 258/2012 of the European Parliament and of the Council of 14 March 2012 implementing Article 10 of the United Nations’ Protocol against the illicit manufacturing of and trafficking in firearms, their parts and components and ammunition, supplementing the United Nations Convention against Transnational Organized Crime (UN Firearms Protocol), and establishing export authorization, and import and transit measures for firearms, their parts and components and ammunition;
  • Military technology and equipment governed by Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and Equipment.

UK and European operators should already anticipate these changes in order to obtain the relevant import / export licenses required for their transactions.

 

 

 

 

 

Categories: EU Regulations