What does a “no deal” brexit actually mean?
What the British government says
“In this scenario the free trade of goods between the UK and the EU would cease and trade with the EU would be on non-preferential, World Trade Organisation, terms. This means that Most Favoured Nation (MFN) tariffs and non-preferential rules of origin would apply to consignments between the UK and EU.”
What this means
In summary, the UK would operate like any non-EU country when importing and exporting goods to and from the EU. Any pre-existing trade agreements with the EU will end, and the UK will resort to “default” trade terms as directed by the WTO. For ARTA’s clients, this would mean the free movement of art and antiques between the UK and EU would cease and any imports into the UK from the EU, not imported under duty suspension, will be subject to import VAT of 5%.
What are the practical implications?
what the british government says
“Businesses trading with the EU would have to apply the same customs and excise rules to goods moving between the UK and the EU as currently apply in cases where goods move between the UK and a country outside of the EU.”
What this means
Galleries, Auction Houses and private collectors in the UK will have to change their existing operation procedures with EU countries and follow a similar model as is currently used for the likes of Switzerland, Monaco and Liechtenstein. These procedures include:
- Having a valid EORI number
- Submitting an export declaration for each shipment
- Paying, where applicable, any import duties and taxes due
We are anticipating and preparing for a situation similar to that from our blog post, The Post-Brexit Customs Arrangement Debate. Businesses should not only expect to experience delays and disruption in the months following March 29th, 2019, but should also expect to see increased shipping costs when moving art and antiques between the UK and the EU.