‘NO-DEAL’ BREXIT CHECKLIST KEY IMPLICATIONS FOR …

1 NO-DEAL' BREXIT CHECKLIST . KEY IMPLICATIONS . FOR BUSINESS. Key IMPLICATIONS for business As the deadline for the UK's withdrawal from the EU. approaches, and BREXIT negotiations continue, it is vital for companies to address the challenges to their business. We have identified the key areas that If you would like help navigating the will be impacted by a no-deal BREXIT complicated, evolving landscape, and outlined recommendations of what please contact a member of our to consider for each of these areas. dedicated team of specialists (contact Forward planning in each of these areas details below) or your usual Baker is essential.

2 McKenzie contact. The global nature of our Firm and the clients we represent means that we have a number of experts who can provide advice that is tailored to your organisation and the challenges that you face. 3. Customs Product Regulatory Key issues Recommendations Key issues Recommendations Tariff impact Understand supply chains, where UK companies currently qualifying as Assess supply chain for risk of goods are moved from and to EU importers for product regulatory EU and UK distributors acquiring The UK and EU will trade as third (including third countries, UK and EU), purposes will lose that status, with importer status with related product countries (on WTO terms).

3 Introduction and what manufacturing takes place in related obligations, liabilities and compliance obligations and liabilities. of duties on goods shipped from the the EU/ UK. labelling requirements transferring UK to the EU (and vice versa). Make arrangements to transfer to to current EU distributors. In the Calculate additional duties and EU-27 conformity assessment bodies, Loss of duty relief under EU Free Trade same way, UK distributors will have financial impact on supply chains and authorised representatives and Agreements (FTAs) on import into and UK importer status (with associated consider how to mitigate this.)

4 Responsible persons. export from the UK. obligations) for product regulatory Consider Incoterms and who is purposes if they are bringing products Plan to transfer chemical registrations Non-tariff impact from the EU/EEA into the UK for the responsible for any additional duties and compliance ( only representative'). and customs-clearance requirements. UK market. roles from UK to EU entities. Administrative burden of customs declarations on goods shipped from UK conformity assessment bodies lose Consider which entities will act as Verify EU and UK supply chains the UK to the EU (and vice versa). their status as accredited entities for importers into the UK/ EU and whether (including where REACH registrations any formalities need to be completed EU product conformity assessments.

5 Are currently held) to determine Risk of delays in getting goods customs cleared through the EU/ UK border. for this. whether action is required to ensure UK-based authorised representatives continued EU and UK compliance. Consider whether to stock pile' or and responsible persons will no longer move existing stock in advance of be recognised by the EU. Consider whether UKCA marking is BREXIT to weather any risks of delays in needed for new products placed on UK companies can no longer hold EU. getting goods through the border. the UK market. chemical (REACH) registrations and Scale up customs team/expertise. companies will need to comply with the new UK REACH regime.

6 The new UKCA conformity assessment mark must be applied from the date of BREXIT to certain products for the UK. market. In most cases, the CE mark can still be used for products for the UK. market, although this will be for a time- limited period only. 4 5. Immigration Key issues Applicants will be subject to identity, criminality and security The details of this scheme which isn't due to begin until 2021 have yet to be a time limited period of up to one year, but they will then be subject to Recommendations The UK Government has set out how checks before being granted announced, but it is anticipated that it will a cooling off period and prohibited Employers should consider reviewing/.

7 It intends to deal with EEA nationals permission to stay be similar to the current arrangements from returning to the UK for 12 amending their HR processes to ensure (including all EU citizens and Swiss that apply to non-EU nationals. months. these are fully compliant with the Non-EEA family members wishing nationals) coming to the UK post- obligations arising under a sponsor to accompany an EEA national under In its White Paper in December, the BREXIT in the event of Britain crashing licence in case the business has to fall these arrangements will need to government set out its plan to devise out of the EU with no deal.

8 Individuals back upon the Points Based System apply in advance for a family permit a single immigration system for here before BREXIT day will have their arrangements when hiring EU nationals. skilled talent that will be equally right to remain protected by the new EEA nationals will be able to enter applicable to non-EU and EU migrants It is still possible that if a wider trade EU Settlement Scheme. However, if and leave the UK as they do now, alike at the end of the transition deal is agreed with the EU, this may there's no deal, EEA nationals and using e-gates when travelling on a period. The aim is to create a system include some preferential treatment their family members arriving after biometric passport where it is workers' skills that matter, for EU nationals coming to the UK or BREXIT won't benefit from this scheme.

9 EEA nationals will be granted the not which country they come from . British citizens going to the EU, but Instead, for a limited period, they will initial 3-month period of leave free This is very much in line with the failing that, we will fall back upon the be able to come to the UK for visits, of charge, but there will be an as yet recommendations earlier in the year local immigration requirements in each work or study in much the same undisclosed fee to apply for European of the Migration Advisory Committee, jurisdiction (as there is no EU wide way as they do now but crucially Temporary Leave to Remain but this is likely to cause difficulty system of immigration control for third they will only be able to remain here for some employers that are reliant country nationals).

10 In that capacity for three months. In These provisions fall outside of the upon low-skilled migrants from the this respect, if they wish to remain special arrangements that exist EU. The government plans to expand for a longer period, they will need between Ireland and the UK. Therefore, the current scheme to also include to apply for and obtain European Irish citizens won't have to apply for medium-skilled roles (in addition to Temporary Leave to Remain. Under European Temporary Leave to Remain highly skilled workers) although this this new category of leave, which has and will continue to have the right won't resolve the issue in relation to been created specifically for a no-deal to enter and live in the UK under the low skilled-migrants.