The European Union announced that it is to extend basic road freight and road passenger connectivity (Regulation (EU) 2019/501) until 31 July 2020.
The European Commission published its 6th Brexit preparedness Communication today, in which it calls on all the businesses of the EU27 to prepare for a ‘no-deal’ Brexit. The European Commission has also published a detailed checklist to help those businesses that trade with the UK make final preparations.
Smooth freight operations until July 2020
In order to minimise disruption to trade, all parties involved in supply chains with the UK – regardless of where they are based – should be aware of their responsibilities and the necessary formalities in cross-border trade.” – the announcement claims.
To keep on contingency after a no-deal Brexit, the EC has made some technical adjustments of some regulations. The most important of these modifications for the transportation sector is the extension of the basic road freight connectivity until the end of July 2020.
This regulation entered into force in March, to prevent severe disruptions once Britain left the EU. The EC found it necessary to establish a temporary set of measures enabling road haulage operators licensed in the United Kingdom to carry goods and passengers by road between the territory of the UK and EU and vica versa. It is a bilateral agreement, which means the United Kingdom must ensure the same rights for the EU carriers in the territory of the UK.
Checklist for businesses
The EU has made a checklist for companies doing business in the EU and/or in the United Kingdom (UK) to double-check their state of preparedness for a no-deal Brexit. The list contains detailed information on exporting goods from the EU to the UK, including required certificates, marking and labelling issues, customs procedures and duties and prohibitions and restrictions.
What’s the problem with a ‘no-deal’ scenario?
In a ‘no-deal’ scenario, the UK will become a third country without any transitional arrangements. All EU primary and secondary law will cease to apply to the UK from that moment onwards. There will be no transition period, as provided for in the Withdrawal Agreement, the EC announcement declares. This will obviously cause significant disruption for citizens and businesses and would have a serious negative economic impact, which would be proportionally much greater in the United Kingdom than in the EU27 Member States.