Brexit news: EU exit 31st of January
Dear Sir / Madam,
Great Britain’s withdrawal from the EU is moving forward, and therefore we would like to inform you about the current developments.
Within the next days, it is expected that Prime Minister Johnson’s ratification law will take the last hurdles within the House of Commons and the House of Lords. After that, it also needs to be approved by the European Parliament, presumably on the 29th of January. As a consequence, the United Kingdom will leave the EU on the 31st of December 2020. After Brexit, the so-called transitional phase will begin, which should last until the end of this year. During this time, London and Brussels should negotiate the terms of a future partnership, including trade relations.
During this transitional phase, we expect no or only minor changes in the processing of goods- and service transactions. Therefore, we will continue to process your shipments and transports as usual.
A crucial aspect of the transitional phase is the development of a free trade agreement between the EU and the UK. However, experts consider the given period as too short to finalise such an arrangement.
As a result, a “no-deal-Brexit” remains a possibility and would come into effect on the 1st of January 2021. This scenario would mean prolonged lead times caused by customs clearance as well as rising costs due to additional import- and export-processing.
Alternatively, an extension of the transitional phase until 2021 or 2022 also remains a possibility.
We have summarized for you all the important information see here.
We will keep you informed about further developments in this matter. In the meantime, please refer to your contact person at Geis, should any questions remain.
Your Geis team