The UK is set to remain in the Common Transit Convention (CTC) after Brexit, ensuring simplified cross-border trade for UK businesses exporting their goods, according to news from the UK government, The CTC is used for moving goods between the EU member states, the EFTA countries (Iceland, Norway, Liechtenstein and Switzerland) as well as Turkey, Macedonia and Serbia.
The UK is currently a member of the CTC while it is in the EU, and has successfully negotiated membership in its own right after Brexit. This would apply to any new trading relationship with the EU or in the unlikely event of a no deal.
Membership of the CTC will help ensure that trade moves freely between the UK and other CTC members after the UK leaves the EU. It will provide cashflow benefits to traders and aid trade flow at key points of entry into the UK, as traders will only have to make customs declarations and pay import duties when they arrive at their final destination.
We are a great trading nation and our goods are in demand all over the world. That’s why we are committed to ensuring that trade can continue to flow with as little friction as possible when we leave the EU. Membership of the convention will support traders both under a new trade agreement with the EU, or in the unlikely event of no deal. This gives businesses the continuity and certainty they need to plan for the future.
– Mel Stride, Financial Secretary, HM Treasury
Whilst most of us aren’t familiar with the Common Transit Convention, and it is quite a technical issue, this should be news that offers some reassurance to ecommerce merchants who trade within the European Union. One of the risks of a hard or no deal Brexit is the fear that there will be a traffic and transport backlog at UK exit points such as the port of Dover. A great number of issues are yet to be determined but this does offer a glimmer of hope that a no deal Brexit won’t be too disruptive to exporting and importing online merchants.
