14/09/2021 UPDATE - “Sausage Wars” postponed
Many will have heard the term ”sausage wars” in the press recently, and have perhaps seen our original article below released on 04/08/2021. This refers to the imposition of rules regarding trading between Great Britain and the EU which would effectively cease the trade in processed raw meat products such as sausages.
The actual changes are far more wide reaching than just sausages and are understood to impact on the trade in most food (where it is of an animal origin) and animal by products.
These rules were due to be implemented on 1 October 2021. However, DEFRA have announced that this date will be put back to 1 January 2022 and that the third phase that was due to be implemented on 1 January 2022 will now happen on 1 July 2022.
Whilst this is kicking the can down the road it will no doubt come as a great relief for affected business many of whom were facing considerable challenges in getting the relevant administration and process in place for the original deadline.
Any questions regarding this or any other Brexit issues please contact the RL VAT Team.
Original article from 04/08/2021:
You may have seen in the news the term “sausage wars” in relation to the Northern Ireland Protocol. But this issue is not restricted to trade with Northern Ireland and will also apply to trade between Great Britain and the rest of the EU from October this year.
Effectively although the end of the transition period was declared at 11pm on 31 December 2020 (midnight Central European time) there are still two phases left for “full Brexit” to occur.
The first is “phase 2” which is due to come into effect on 1 October 2021 (it was going to be 1 April). This will see the introduction of much more controlled imports and exports of animals, food, animal by-products, plants and plant based materials (including timber).
This phase 2 had a different implementation date for trade between Great Britain and Northern Ireland and was due to come into effect from 1 July 2021. Depending on who’s side you believe it’s either the EU being over stringent in their interpretation of the rules both parties signed up to; or Great Britain trying to keep certain food standards at a level to enable a future trade deal with the USA. One of the issues about the phase is the implementation of a ban on the movement of chilled meat products (i.e. sausages) between GB and NI.
The implementation of phase 2 on 1 October is likely to become a ban on the same trade between GB and the whole of the EU. (Although, this may be a wurst case scenario.)
The important thing to note is that if your business trades in the import and/or export of animals, food, animal by-products, germinal products etc. you will need to familiarise yourself with the new rules and administration requirements. As these become clearer we will update the RL Brexit Hub, the link for which is here , or you can call the VAT team to discuss.
The third phase (due 1 January 2022) will see the requirement to import certain goods through a Border Control Post, “full” inspections of goods being moved (HMRC are currently operating a light touch), and the removal of the six month delay in making relevant declarations.