United Kingdom will remain in Common Transit Convention after Brexit
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On Monday the UK authorities confirmed that that Great Britain will remain in the Common Transit Convention (CTC). Membership will ensure simplified cross-border trade for UK businesses exporting their goods regardless of the trading relationship with the EU or in case of the no deal scenario.
The fact the UK will remain a member of CTC is significant to businesses on both sides of the English channel. It will ensure „cashflow benefits to traders and aid trade flow at key points of entry into the UK, as traders will only have to make customs declarations and pay import duties when they arrive at their final destination.”
The CTC regulates the moving of goods between EU member states and the EFTA countries (Iceland, Norway, Lichtenstein and Switzerland), as well as Turkey, Macedonia and Serbia.
We are a great trading nation and our goods are in demand all over the world. That’s why we are committed to ensuring that trade can continue to flow with as little friction as possible when we leave the EU,” said Mel Stride, Financial Secretary to the Treasury.
Thanks to the continued membership, the administrative burdens for businesses will be reduced. Import/export declarations when moving between multiple customs territories will be removed. Additionally, payment of duties will only be necessary at the final destination, without having to pay each time the goods cross a border.
The #CommonTransitConvention is a gain for UK and EU customs authorities. Longer term it may well be useful for many operators too – but setting it up will take time and significant upskilling across the sector and within the trader community. @RHARichardB https://t.co/SjFGtdV5kB pic.twitter.com/3MYfYjiVUO
— RHA News (@RHANews) December 18, 2018
The deal is particularly important for the Republic of Ireland because it transports the majority of its exports to the EU across the UK “land bridge”.
Road Haulage Association Managing Director of Policy and Public Affairs, Rod McKenzie is sceptical about the news. According to him, it is a helpful step but not enough.
This isn’t a magic bullet for freight or haulage post-Brexit but at least it helps a bit,” comments McKenzie on Twitter.