The United Kingdom issued a guidance Dec. 16 on how it will manage export restrictions when the U.K. experiences supply shortages. The U.K. said it may introduce “temporary” export controls if there are certain shortages or a “risk of a shortage.” Those restrictions may include license requirements, export quotas and limits or bans on exporting a certain product.
The United Kingdom suspended import tariffs on a range of goods used to fight COVID-19, including face masks, gloves, hand sanitizers, face shields and other protective equipment, the U.K. said Dec. 16. While the U.K. had already removed import tariffs from certain protective equipment, it said it “is now going one step further and ensuring there are no additional costs on any items on the World Health Organisation’s latest list of critical goods.” The new suspensions will also extend to “private sector organisations,” the U.K. said, including “care homes” that were paying tariffs pf between 2% and 12% on the goods. The suspensions will take effect Jan. 1, 2021, and will remain in place for one year, the U.K. said.
The United Kingdom’s Department for International Trade issued a guidance Dec. 11 on how the U.K.’s departure from the European Union will affect certain export controls and SPIRE, the country’s online export licensing system. EU regulations for strategic export controls will continue to apply in Northern Ireland, the guidance said, and certain rules for controlled exports will depend on whether they were exported from Britain or Northern Ireland.
The United Kingdom’s Department for International Trade on Dec. 11 updated its guidance on trading with Japan post-Brexit. The guidance, to take effect Jan. 1, now includes an updated statement of origin value threshold “after Japan notified the UK of their waiver limit” under the two countries’ trade deal.
Some United Kingdom exporters may be experiencing delays in applications for three specific open general export licenses (OGEL) because of incorrect information submitted by the applicant, the U.K. said in a Dec. 7 notice. When applying for certain OGELs that require exporters to first obtain an approval letter from the Ministry of Defense (MOD), the applicants must include in their submission the “full contact details” of the Ministry of Defense Project Team that has awarded the exporter its contract. That information must include a telephone number and email address, the U.K. said. “Without this information [the U.K.’s Export Control Joint Unit] MOD will be unable to process the request which will be returned to the requester to provide the missing information,” the notice said. “This will lead to a delay in the exporter being able to use the OGEL.”
The European Council adopted amendments to its value-added tax regulations to allow member states to suspend VATs on certain products and services related to treating the novel coronavirus, the council said Dec. 7. The decision will allow member nations to temporarily exempt VATs or apply a “reduced rate” on COVID-19 vaccines, testing kits and “closely related services.” The measures apply only to vaccines authorized by the European Commission or member states and test kits that comply with European Union regulations. EU member states unanimously adopted the new rules, the commission said, which will give members “better and cheaper access” to the products. The amendments will apply until Dec. 31, 2022.
The United Kingdom on Dec. 1 published its report on the country’s “strategic export controls work” during 2019, detailing export licensing data, relevant legislation, industry outreach activities, enforcement information and case studies. The annual report is normally published by summer but was delayed this year due to the COVID-19 pandemic, the U.K. said.
The United Kingdom Dec. 2 published guidance for European Union companies importing from or exporting to the U.K. after Brexit. The U.K. also issued guidance on how tariffs and taxes will apply to EU businesses. The guidance has information on trading animal products, plant products, energy-related goods, manufactured goods, chemicals, controlled goods and other items. The U.K. stressed EU companies should review import procedures with their country’s customs authority before importing U.K. products next year, and said EU exporters will need to follow “new traffic management processes at ports to avoid delays.”
The European Parliament released a November report on extraterritorial sanctions and their “legality under general international law.” The report includes an overview of U.S. sanctions and their impacts on the EU and member states -- including U.S. designations on Iran, Cuba and the Nord Stream 2 project (see 2007150021) -- and how the EU can protect itself against those impacts. The report recommends that the EU help European companies find “recourse” through arbitration and national courts and to consider challenging the legality of some U.S. sanctions through the World Trade Organization’s dispute settlement system. The EU should also consider countermeasures to U.S. sanctions, the EP said, but stopped short of asking the EU to follow through with those measures. “At this stage, the application of such measures could hardly be recommended,” the report said. “However, it might be helpful to clearly state that the EU is aware of this option and will consider it.”
The European Union's equivalent of secretary of state is calling for coordination with the U.S. on regulatory conformity, choosing a new director-general at the World Trade Organization and restoring the appellate body there, in a policy paper released Dec. 2. High Representative of the Union for Foreign Affairs and Security Policy Josep Borrell Fontelles said they need to intensify trilateral work between the EU, Japan and the U.S. on how to address market-distorting practices that WTO rules aren't effective in addressing. “We should also work together to bring forward the WTO e-commerce negotiations,” he said.