Las Vegas Review-Journal (Sunday)
Britain postpones post-Brexit border checks
U.K. again rules out any delay in the break
LONDON — The British government said Friday it will delay bringing in full border checks on goods coming from the European Union to relieve pressure on businesses hammered by the coronavirus pandemic. But the U.K. again ruled out delaying its full economic break with the bloc beyond the end of this year.
The U.K. left the now-27-nation bloc on Jan. 31 but remains part of its single market for trade and other economic structures during a transition period that lasts until Dec. 31. After that, British companies trading with the EU will face customs checks, border inspections and — unless there is a free trade deal — tariffs.
The bloc is the U.K.’s biggest economic partner, accounting for about half of Britain’s trade. In February the U.K. government announced that goods coming from the EU would require inspections and customs declarations starting in January.
But on Friday the government said border checks would be introduced in stages. Importers of most goods will be able to delay submitting customs declarations or paying tariffs for up to six months, though they will have to keep customs records. From July 2021, traders will have to make full declarations and pay tariffs at the point of importation.
The government estimates that businesses will have to fill out 200 million new customs forms a year under the new rules.
The government also announced $63 million to help set up a new border industry to deal with trade red tape, including customs brokers and freight forwarders. The U.K. has it will build customs and border facilities for all of the checks — an effort that has been set back by the pandemic.
Britain’s economy is reeling from the impact of the coronavirus pandemic. The Office for National Statistics said Friday that economic activity shrank by 20.4 percent in April, the first full month after a nationwide lockdown was introduced to slow the spread of the virus.
The U.K. and the bloc are trying to negotiate a free trade deal to kick in after that, but talks have stalled amid differences over key issues, from fishing rights to competition rules.
British Prime Minister Boris Johnson is due to hold talks with EU chief Ursula von der Leyen and other officials of the bloc by video call Monday in a bid to break the impasse over key issues, from fishing rights to competition rules.
Britain has firmly ruled out seeking an extension to the transition period, which was permitted under a U.K.-EU divorce agreement, raising the prospect of a “no-deal exit that many British businesses say could be devastating.
EU Commission Vice President Maros Sefcovic said Britain’s Michael Gove, the minister in charge of Brexit preparations, “could not be clearer” that there would not be an extension although the EU was ready to grant one. Sefcovic and Gove co-chaired an EU-U.K. joint committee meeting Friday.
“He explained that this was the promise which was given to the British citizens in the electoral campaign, and also Prime Minister (Boris) Johnson was very explicit on this issue,” Sefcovic said.
Gove said: “We have informed the EU today that we will not extend the transition period.”