Tough decisions before Brexit deadline

Manufacturers are currently facing tough Brexit decisions. Some of our customers are now moving functions from the UK to offices elsewhere in the EU to ensure continued market access should there be a no-deal Brexit on 29 March.

“If there is a hard Brexit there will be large consequences for trade between the UK and the EU, and therefore for our customers. Some of them are approaching us to ensure that certifications are moved to ensure market access to the EU in the case of a hard Brexit,” says Vice President, Energy & Environment, Jon Ivar Tidemann, at Nemko Group.

Large manufacturers are now preparing for the alternatives by determining if they can be affected by the likely outcomes. Many of those that have a UK importer or a UK Authorized Representative have moved that function into offices elsewhere in the EU.

“Some of our customers are investigating and, if possible, changing their Notified Body (NB) documentation to Notified Bodies independent of the possible deletion of UK NB on 29 March,” says Tidemann.

Jon Ivar Tidemann,Vice President, Energy & Environment, Nemko Group - Photo by Nemko/Damir Cvetojevic

 

As the Brexit drama continues, UK Prime Minister Theresa May seems intent on offering only two options for Parliament: the transitional agreement that would last until January 2021, and a no-deal Brexit which would lead to UK trading under World Trade Organization rules after 29 March. EU laws and regulation would no longer apply in the UK.

In a hard Brexit scenario, UK importers of products from third countries would no longer be EU importer or able to act as an Authorized Representative for the EU. UK manufacturers selling into the EU or the EEA would need an importer in the receiving country, with contact details labelled on the product. There could be additional import taxes, but that is not yet clear. There is also uncertainty regarding import from countries that currently sell products in the EU based upon agreements with the EU.

On the other hand, if the transitional agreement is ratified by Parliament, manufacturers would face “status quo , at least until 2021.

The BBC recently revealed that a new logo has been drawn up by the UK government, replacing the EU’s CE mark showing a product meets European safety and functional requirements. The new UK alternative would be UKCA, UK Conformity Assessed. In the case the UKCA mark is needed, companies would have to change packaging, marking and advertising.

Nemko offers advisory services to customers needing guidance in determining how to comply with European rules in any eventuality.

For more information about Nemko services related to Brexit please contact Jon Ivar Tidemann at JonIvar.Tidemann@nemko.com