The U.K. continues to prepare for the possibility of a no-deal Brexit by making sure its clearing houses and customs procedures can still do business without interruption.
The Bank of England and the European Securities and Markets Authority (ESMA) announced that they are teaming up to avoid any disruption at clearing houses so that stock, bond and derivatives transactions will proceed even if a Brexit deal is not reached by the March 29 deadline.
“ESMA aims to complete the next steps for the recognition of the U.K. CCPs and the U.K. CSD, and to adopt the recognition decisions well ahead of Brexit date,” ESMA said, according to a press release.
As Reuters pointed out, this agreement supports the EU’s earlier decision to “recognize” UK-based clearing houses so they can continue to serve customers in the bloc.
And HM Revenue and Customs has revealed simplified importing procedures that will make importing easier in the event of a no-Brexit deal.
Once businesses are signed up for its Transitional Simplified Procedures (TSP), they will be able to transport goods from the EU into the U.K. without making a full customs declaration at the border, as well as postpone paying any import duties for an initial period of one year.
The new procedures will reduce the amount of information needed in an import declaration when goods cross the border.
“We anticipate TSP will remain in place for more than a year to give businesses time to prepare to use the full customs processes that already apply to imports from non-EU countries,” the company wrote in a press release. “We’ll review the policy 3 to 6 months after it’s introduced on 29 March 2019 to see how it’s working. We’ll consult with businesses and give them at least a 12-month notice period before withdrawing the easements in TSP and applying the usual customs processes to imports from the EU. This will give businesses enough time to prepare.”
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More