We have been told that the trade deal we will eventually get will be similar to Canada's, this is the Comprehensive Economic Trade Agreement (CETA) and many Brexiteers think it will be a good thing - although some believe we will prosper without it anyway. The only issue is how many or few pluses will follow CETA. However, the most important point is that we will become a third country.
Anyone who thinks this will make exporting to the EU easy should visit the EU Trade Help desk (HERE) to see what will be involved. To begin with it has a series of drop-down menus explaining the single market and the customs/import procedures including the Single Administrative Document (SAD) that has to be completed for all goods imported into the EU.
Depending on the operation and the nature of the imported goods, additional documents need to be declared with the SAD and presented together with it. The most important documents are:
Documentary proof of origin, normally used to apply a tariff preferential treatment
Certificate confirming the special nature of the product
Transport Document
Commercial Invoice
Customs Value Declaration
Inspections Certificates (Health, Veterinary, Plant Health certificates)
Import Licenses
Community Surveillance Document
Cites Certificate
Documents to support a claim of a tariff quota
Documents required for Excise purposes
Evidence to support a claim to VAT relief
But to complete some of the stuff you need to know the EU product classification (there are thousands), binding tariff information, duty relief and suspension, quotas and anti-dumping rules. You also need to understand Rules of Origin, duty drawback, the Direct Transport or non-manipulation rule as well as how to provide proof of origin. And this doesn't even touch on product legislation that our exporters will need to keep an eye on. It all looks horrendously complex.
Canada's trade commissioners (HERE) have helpfully produced a website to help Canadian exporters understand how to do business with the EU. It is not a small website with dozens of links to other data on classification, labelling, chemicals, animal health, product safety and so on.
Of course, Brexiteers will say we already comply with all the regulations so there won't be a problem. But we will still have to keep abreast of changes and provide proof that we are complying after we leave and put ourselves outside the EU's supervisory reach. At the moment exporters to Europe only have to provide an invoice. There will be a massive increase in paperwork not only for anyone exporting to the EU and those who supply the exporter as well. This is the "friction" in international trade and it will reduce trade to and from the EU. Many small exporters criticise the excess of paperwork already, how many will bother to export when it increases massively?
