The European Commission published on Wednesday 28th of February 2018 the draft Withdrawal Agreement between the European Union and the United Kingdom. Michel Barnier, Chief Negotiator in charge of the Preparation and Conduct of the Negotiations with the United Kingdom, held a press conference at the European Commission in Brussels, Belgium to present the document. There was an immediate reaction from the UK’s Prime Minister which, in essence, was in the form of disapproval and the “hard” border between Northern Ireland and Ireland was also a source of debate.
That said, it is a starting point for further discussions as the UK will leave the EU on 30 March 2019.
From the official document of 118 pages " TF50 (2018) 33 - Commission to EU 27 "
TITLE II - ONGOING CUSTOMS PROCEDURES
Article 43 - Union status of goods
1. Regulation (EU) No 952/2013 of the European Parliament and of the Council 21 shall apply in respect of Union goods referred to in Article 5(23) of that Regulation moving from the customs territory of the United Kingdom to the customs territory of the Union, or vice versa, provided that the movement started before the end of the transition period and ended thereafter.
2. For the purposes of paragraph 1, the presumption of the customs status of Union goods as referred to in Article 153(1) of Regulation (EU) No 952/2013 shall not apply. The customs status of those goods as Union goods, as well as the fact that the movement referred to in paragraph 1 started before the end of the transition period, shall be proven by the person concerned by any of the means referred to in Article 199 of Commission Implementing Regulation (EU) 2015/2447 22. The proof of the start of the movement shall be provided by means of a transport document relating to the goods.
3. Paragraph 2 shall not apply in respect of Union goods that are carried by air and have been loaded or transshipped at an airport in the customs territory of the United Kingdom for consignment to the customs territory of the Union or at an airport in the customs territory of the Union for consignment to the customs territory of the United Kingdom and are carried under cover of a single transport document issued in either of the customs territories concerned, provided that the movement by air started before the end of the transition period and the movement ended thereafter.
4. Paragraph 2 shall not apply in respect of Union goods that are carried by sea and have been shipped between ports in the customs territory of the United Kingdom and ports in the customs territory of the Union by a regular shipping service, as referred to in Article 120 of Commission Delegated Regulation (EU) 2015/2446 23, provided that:
(a) the voyage comprising the ports in the customs territory of the United Kingdom and ports in the customs territory of the Union started before the end of the transition period and ended thereafter; and
(b) the regular shipping service vessel called at one or several ports in the customs territory of the United Kingdom or in the customs territory of the Union before the end of the transition period.
5. When during the voyage referred to in point (a) of paragraph 4 the regular shipping service vessel calls at one or several ports in the customs territory of the United Kingdom after the end of the transition period:
(a) for goods loaded before the end of the transition period and unloaded in those ports, the customs status of Union goods shall not be altered;
(b) for goods loaded in ports called after the end of the transition period, the customs status of Union goods shall not be altered provided that it is proven in accordance with paragraph 2.
21 Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).
22 Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558).
23 Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code (OJ L 343, 29.12.2015, p. 1).
Article 44 Entry summary declaration and pre-departure declaration
1. Regulation (EU) No 952/2013 shall apply in respect of entry summary declarations that were lodged at a customs office of first entry in accordance with Chapter I of Title IV of that Regulation before the end of the transition period, and those declarations shall produce the same legal effects in the customs territory of the Union and the customs territory of the United Kingdom after the end of the transition period.
2. Regulation (EU) No 952/2013 shall apply in respect of pre-departure declarations that were lodged in accordance with Chapter I of Title VIII of that Regulation before the end of the transition period, and those declarations shall produce the same legal effects in the customs territory of the Union and the customs territory of the United Kingdom after the end of the transition period.
Article 45 Ending of temporary storage or customs procedures
1. Regulation (EU) No 952/2013 shall apply in respect of non-Union goods that were placed under temporary storage referred to in Article 5(17) of that Regulation or any of the special customs procedures referred to in Article 5(16) of that Regulation in the customs territory of the United Kingdom before the end of the transition period until the situation or the customs procedure is ended or discharged in accordance with Union law thereafter.
2. Regulation (EU) No 952/2013 shall apply in respect of any customs debt arising after the end of the transition period from the end or discharge referred to in paragraph 1.
3. Article 52 of Implementing Regulation (EU) 2015/2447 shall apply in respect of the cancellation of requests and returns of unused allocated quantities of requests to benefit from a customs quota transmitted to the European Commission in accordance with Article 50 of that Regulation by the customs authorities in the customs territory of the United Kingdom before the end of the transition period.
Article 46 Access to relevant network and information systems and data bases
By way of derogation from Article 7, the United Kingdom shall have access, to the extent strictly necessary to comply with its obligations set out in this Title, to the network and information systems and the databases listed in [Annex Y+4].
TITLE III ONGOING VALUE ADDED TAX AND EXCISE DUTY MATTERS
Article 47 Value added tax (VAT)
Council Directive 2006/112/EC 24 shall apply in respect of goods dispatched or transported from the territory of the United Kingdom to the territory of a Member State, or vice versa, provided that the dispatch or transport started before the end of the transition period and ended thereafter.
Article 48 Excise goods
Council Directive 2008/118/EC 25 shall apply in respect of movements of excise goods under a duty suspension arrangement and movements of excise goods after release for consumption from the territory of the United Kingdom to the territory of a Member State, or vice versa, provided that the movement started before the end of the transition period and ended thereafter.
Article 49 Access to relevant network and information systems and data bases
By way of derogation from Article 7, the United Kingdom shall have access, to the extent strictly necessary to comply with its obligations set out in this Title, to the network and information systems and the databases listed in [Annex Y+4].
24 Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 347, 11.12.2006, p. 1).
25 Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC (OJ L 9, 14.01.2009, p. 12).
TITLE XI - ADMINISTRATIVE COOPERATION PROCEDURES
Article 93 Administrative cooperation for customs
1. Administrative cooperation procedures between a Member State and the United Kingdom set out in [Annex y+2] that were launched in accordance with Union law before the end of the transition period shall be completed by that Member State and the United Kingdom in accordance with the relevant provisions of Union law.
2. Administrative cooperation procedures between a Member State and the United Kingdom set out in [Annex y+2] that are launched within a period of 3 years after the end of the transition period but concern facts that occurred before the end of the transition period shall be completed by that Member State and the United Kingdom in accordance with the relevant provisions of Union law.
Article 94 Administrative cooperation for matters related to indirect tax
1. Council Regulation (EU) No 904/2010 99 shall apply until 5 years after the end of the transition period in respect of cooperation between the competent authorities responsible for the application of the laws on value added tax in the Member States and the United Kingdom in relation to transactions that took place before the end of the transition period.
2. Council Regulation (EU) No 389/2012 100 shall apply until 5 years after the end of the transition period in respect of cooperation between the competent authorities responsible for the application of the legislation on excise duties in the Member States and the United Kingdom in relation to operations that took place before the end of the transition period.
Article 95 Mutual assistance for the recovery of claims relating to taxes, duties and other measures
Council Directive 2010/24/EU 101 shall apply until 5 years after the end of the transition period between the Union and the United Kingdom in respect of claims related to amounts that became due before the end of the transition period.
99 Council Regulation (EU) No 904/2010 of 7 October 2010 on administrative cooperation and combating fraud in the field of value added tax (OJ L 268, 12.10.2018, p. 1).
100 Council Regulation (EU) No 389/2012 of 2 May 2012 on administrative cooperation in the field of excise duties and repealing Regulation (EC) No 2073/2004 (OJ L 121, 8.5.2012, p. 1).
101 Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures (OJ L 84, 31.3.2010, p. 1).
[Annex y+2]
List of administrative cooperation procedures referred to in Article 93
1. Enquiry procedures for transit, and in the context of export goods exiting the customs territory of the Union or of the United Kingdom relating to the application of customs legislation (Regulation (EU) No 952/2013).
2. Administrative cooperation between the Member States related to supplier's declarations on the origin of goods, established for the purpose of preferential trade between the Union and certain countries (Articles 61 to 66 of Implementing Regulation (EU) 2015/2447).
3. Investigative and coordination actions in the area of customs including, where applicable, any subsequent legal proceedings until the related court decision becomes final, in accordance with Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council 151, Council Regulation (EC, Euratom) No 2988/95 152, Council Regulation (Euratom, EC) No 2185/96 153, Council Regulation (EC) No 515/97 154, including the exchange of information procedures and mechanisms applied regarding cash controls (Regulation (EC) No 1889/2005 of the European Parliament and of the Council 155), drug precursors (Council Regulation (EC) No 111/2005 156) and cultural goods (Council Regulation (EC) No 116/2009 157).
4. Direct cooperation and exchange of information concerning export controls on dual-use items (Article 19 of Council Regulation (EC) 428/2009 158).
5. For the verification of proofs of origin issued by third country authorities or agencies authorised by them (special non-preferential import arrangements) (Article 59 of Implementing Regulation (EU) 2015/2447) and for the verification of proofs of origin issued or made out by third country authorities or exporters (preferential arrangements) (Articles 108 to 111 and 125 of Implementing Regulation (EU) 2015/2447, Article 32 of Annex II to Regulation 2016/1076 of the European Parliament and of the Council 159, Article 55 of Annex VI to Council Decision 2013/755/EU 160 and equivalent provisions in preferential Agreements.
151 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
152 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).
153 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).
154 Council Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters (OJ L 82, 22.3.1997, p. 1).
155 Regulation (EC) No 1889/2005 of the European Parliament and of the Council of 26 October 2005 on controls of cash entering or leaving the Community (OJ L 309, 25.11.2005, p. 9).
156 Council Regulation (EC) No 111/2005 of 22 December 2004 laying down rules for the monitoring of trade between the Community and third countries in drug precursors (OJ L 22, 26.1.2005, p. 1).
157 Council Regulation (EC) No 116/2009 of 18 December 2008 on the export of cultural goods (OJ L 39, 10.2.2009, p. 1).
158 Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items (OJ L 134, 29.5.2009, p. 1).
159 Regulation (EU) 2016/1076 of the European Parliament and of the Council of 8 June 2016 applying the arrangements for products originating in certain states which are part of the African, Caribbean and Pacific (ACP) Group of States provided for in agreements establishing, or leading to the establishment of, economic partnership agreements (OJ L 185, 8.7.2016, p. 1).
160 Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas countries and territories with the European Union (‘Overseas Association Decision’) (OJ L 344, 19.12.2013, p. 1).
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