On July 18, 2018, the British government began issuing guidance to firms and individuals on what to expect if the United Kingdom (“UK”) and the European Union (“EU”) do not reach an agreement on the contours of their trade relationship after the UK leaves the EU on March 29, 2019, an eventuality known as “Hard Brexit.” The British government announced that it plans to issue 84 technical notices addressing the consequences of a Hard Brexit. It published the first 25 notices on August 23, 2018. The notices covered such topics as farming, taxation, state aid, medical regulations, and trade.

On trade matters, the British government offered the following guidance:

• Tariff Classification: If a “Hard Brexit” should occur, “trade with the EU will be on non-preferential, WTO terms. As a result, “[most favoured nation] tariffs and non-preferential rules of origin [will] apply” to trade between the UK and the EU. In this situation, the UK Treasury will establish a new trade tariff regime to replace the EU’s customs regime.

• Documentation Requirements For UK-EU Trade: If a “Hard Brexit” occurs, the rules for importing or exporting goods between the United Kingdom and the countries within the EU will be the same as the rules governing the movement of goods between the UK and non-EU countries. Accordingly, firms moving goods between the UK and the EU will need to fill out and submit the typical customs declarations and other related safety or security declarations to the appropriate EU or UK customs authority.

• Export controls: With some minor exceptions, a “Hard Brexit” will not have a significant effect on the UK’s laws governing export of controlled items.

• Trade Remedy Investigations: The British government is currently working to create an independent UK trade remedy system. The system would be run by a new Government entity, the Trade Remedies Authority (“TRA”). If the TRA becomes operational before Brexit, companies should consult with the TRA and the EU’s Directorate General for Trade on where and how to file a trade remedy complaint. After a Hard Brexit, firms will need to file trade remedy with the TRA. The TRA will review all trade remedy measures in place under EU trade law and decide whether to adjust them for suitability to the UK market, if necessary.

Although it is now planning for a “Hard Brexit,” the British government continues to believe that a “no deal” scenario is unlikely because the UK and the EU have already reached agreement on a number of significant trade issues. Nonetheless, the Government states that issuance of these notices is necessary so that “businesses and citizens [can] understand what they would need to do in a ‘no deal’ scenario” when Brexit occurs on March 29, 2019.