In preparation for the possibility of a no deal outcome to Brexit negotiations, the UK government has issued a series of technical notices giving guidance to businesses on the potential impact.
The notices, issued in two tranches and covering a range of sectors, signal that there is likely to be some disruption caused by a no deal despite the UK government’s determination that ‘frictionless’ trade continues with the EU.
One notice focuses on the trading of goods regulated under the EU’s New Approach. Currently, CE markings appear on the labels of products covered by and traded within the single market to show that they comply with EU safety, health and environmental standards. Manufacturers have a responsibility to conduct the relevant conformity assessment and distributors must check that the CE marking and related paperwork is present and correct.
The technical notice confirms that goods being marketed in the EU will continue to be marketed in the UK following a no deal. However, whilst businesses could continue to rely on CE standards for a limited period, the UK government would also seek to introduce its own equivalent conformity marking for products. Therefore, in time, businesses trading in the UK and EU would be expected to comply with two parallel assessment regimes. This scenario has raised concerns about the additional administrative burden that it could create.
Furthermore, conformity assessments by UK notified bodies would no longer be recognised in the EU following a no deal. As a result, affected products would have to be retested by an equivalent EU body before being marketed in the EU. Another difficulty is that some products will need to be relabelled to show the identity of any relevant EU-based importer and this could have a knock-on impact for distribution chains.
The notices in general highlight the need for businesses to make preparations for post-Brexit scenarios, including a no deal outcome.
Article published: 23rd October 2018
