HOW WILL BREXIT AFFECT GUYANA’S TRADE WITH THE UK?

The United Kingdom’s transition period for its official departure from the EU ended on December 31st 2020. January 1, 2021 therefore heralded in a UK that is independent from the EU in the management of its trade policy. However, Guyanese exporters needed not be worried. When Guyana signed the CARIFORUMUK EPA on March 22, 2019, along with a Memorandum of Understanding to facilitate provisional application, it was with the intention of safeguarding the interests of exporters against interruptions in preferential access to the UK market. Therefore, by signing the agreement Guyana was able to maintain, with the independent UK, all preferences that were applied to Guyana’s trade with the UK when it was part of the EU.

There will however be Administrative changes that are required, both by Guyana and by the UK. On Guyana’s end, the signing of the Ministerial Order on December 30th by the Minister of Finance, Dr. Ashni Singh, paved the way for the Guyana Revenue Authority to make amendments to its tariff schedule to treat the UK separately from the EU. Therefore, importers of products from the EU can expect the same treatment as products originating from EU countries. The Ministerial Order will have to be laid before the National Assembly at the shortest time possible, so that the full amendment to the Customs Act could be facilitated. GRA may also take some time to fully sift out the UK and reflect the applicable rates in its tariff schedule. Nevertheless, the issuance of the Ministerial order paves the way for GRA to begin to apply the Agreement effective January 1, 2021.

On the UK side, a number of internet-based tools have been created to ensure transparency and predictability in access to information on trading with the UK. The rates to be applied to CARIFORUM countries will be published on www.gov.uk. In addition, from 1 January 2021, Trade With the UK tool will set out all tariff rates. In the intervening period, the UK has published a temporary tariff tool (https://www.gov.uk/look-up-

import-tariffs-1-january-2021) where all rates which will apply from 1 January 2021 can be seen.

As an illustration of how exporters can use this tool, the screenshots below show how exporters of sugar can find out what tariffs are applied on imports of sugar from Guyana. By inputting the relevant tariff code at the 10 digit level and the name of the exporting country, the tool indicates that an Agreement has been negotiated with Guyana, this is the CARIFORUM-UK Agreement. It also indicates that the rates that will be applied from 1 January, 2021 are the rates negotiated under this agreement once the agreement is in effect.

In this illustration the trade policies are reflected for sugar of tariff heading 1701131000. Exporters would notice that the tool indicates a tariff preference rate of 0.00%. This is because sugar from Guyana will continue to enter the UK on duty-free quota-free because this was afforded under the CARIFORUM-EU EPA which maintained the Sugar Protocol quotas on a transitional basis until September 2019 when duty-free quota-free access was introduced.

However, further down, exporters would also notice under standard tariffs, reference to non-preferential duty under end-use, a rate of 28 GBP/ 100kg. This is part of the UK’s new Global Tariff (UKGT) on sugar that took effect from January 1, 2021 to replace EU’s Common External Tariff (CET).

Step 1: Click here https://www.gov.uk/look-up-import-tariffs-1-january-2021

Step 2: Select the name of the exporting country

Step 2: Notice of trade agreement being in place will come up.

Step 3: Enter the 10 Digit Product code for the product you export

Step 3: You will receive information on the rates you are required to pay, and other applicable trade policies.

Apart from information on tariff duties, policymakers and traders can also obtain other general information through the Contact points established by the UK. General information on the CARIFORUM-UK EPA can be obtained from the Coordinators at the technical and senior official levels as indicated below:

 Coordinator (Article 234) – The UK’s Coordinators are as follows:

1. Technical level: Dan Hart, Regional Trade Adviser (Caribbean), dan.hart@fcdo.gov.uk, British High Commission Kingston, PO Box 575, 28

Trafalgar Road, Kingston 10, Kingston, Jamaica.

2. Senior official level: Paul Walters, Head of Trade for Development, paul.walters@fcdo.gov.uk, 3 Whitehall Place, London SW1A 2AW

Traders and policymakers needing to make inquiries on matters related to Technical Barriers to Trade and Santiary and Phyotsantiary Measures can also do so through the following focal points:

 Technical Barriers to Trade (Article 49) – The UK’s contact point on TBT is:

TBTEnquiriesUK@trade.gov.uk

 Sanitary and Phytosanitary measures (Article 55) – The UK’s Competent

Authority on SPS is: ukassurance@defra.gov.uk.

The UK also has new platforms for publishing / exchange information on procurement and other general matters.

 www.gov.uk will be used to publish general information to ensure transparency.

 Procurement (Annex VII) - the new service for the United Kingdom is Find a

Tender (FTS). The detail of the United Kingdom’s means of publication for

Procurement related information, and tender documentation can be found in the following guidance: https://www.gov.uk/guidance/public-sectorprocurement-after-a-no-deal-brexit

 List of official holidays (Annex VIII Article 1(5)) – UK public holidays are published online: https://www.gov.uk/bank-holidays

Below is also a summary of sources of information for customs authorities issuing origin declarations and other documents required to facilitate trade.

 Addresses of the customs authorities responsible for issuing and verifying movement certificates EUR.1 and origin declarations or suppliers’ declarations (Protocol I, Article 32) – EUR.1 forms are authenticated and issued by the UK’s

National Clearance Hub (NCH). These can only be applied for and issued electronically due to the impact of the coronavirus. Applications for the issue of an EUR.1 certificate must be emailed with ‘EUR1 endorsement’ in the email subject line to NCH.Movements.Digital@hmrc.gov.uk.

For reference, the postal address is: HMRC Central Issuing Office, The National Clearance Hub, Ralli Quays, 3 Stanley Street, Salford, M60 9HL, United Kingdom [please note that the NCH is only accepting communications via email rather than by post at the moment].

EUR.1 forms can also be authenticated by local Chambers of Commerce and by the Institute of Chartered Shipbrokers, however they charge for this service. Verification of EUR.1 forms, origin declarations and supplier’s declarations are carried out by the Tariff Preference Team based in Leeds. Requests for verification should be sent to: HM Revenue & Customs, Tariff Preference Team, Peter Bennett House, Redvers Close, Leeds, LS16 6RQ, United Kingdom. Email: tariff_prefs_cope@hmrc.gov.uk

 General enquiries related to customs should be directed to: customsinternational@hmrc.gov.uk

The Ministry has already circulated the information to the relevant public and private sector agencies including the Customs Authority, the Guyana Revenue Authority (GRA) and has requested Specimen of Guyana’s Customs stamps and signatures for transmission to the UK officials.