spiritsNEWS February 2019

BREXIT - Urgent answers needed on how to deal with no-deal

Time is slowly running out until the UK leaves the Union, and – still – there is no certainty as to what will happen. We all say that a no deal should be avoided, but will this be the case in the end? Producers need to prepare and be ready for any of the scenarios on the horizon. To do this, we need answers now to a number of urgent questions we have on what might happen if we cannot enjoy a transition period as foressen by the Withdrawl Agreement.

We fully adhere to our colleagues’ list of unilateral contingency measures to be adopted by the Union, yet would like to emphasise specifically those related to labelling, customs & taxation as well as to the protection of Geographical Indications (GIs):

On labelling - in the UK, DEFRA has already published guidance on how EU27 food and drink products will be treated in the UK in case of a no-deal scenario. Products displaying an EU-27 business name and address on the label to comply with Regulation 1169/2011 will not need to have a UK name and address up until December 2020, even in the event of a no-deal scenario. This is a welcome reassurance for those exporting to the UK market. Authorities also confirmed that products placed on the market before 11 pm on 29 March 2019 may continue to be sold  until those stocks become exhausted. We call on the EU27 to reciprocate those measures.

On Customs & Taxation - Movements of goods around Brexit date are a cause of great concern. In the case of no-deal, the Excise Movement and Control System (EMCS) which is a computerised system for monitoring the movement of excise goods like ours under duty suspension in the EU will be disconnected. This is cause of huge concern for operators, in particular those SMEs who are not trading outside the internal market. We are expecting further guidance from the Commission and Member States in the coming weeks. The clock is ticking!

We are a sector with more than 240 Geographical Indications (GIs) such as Cognac, Polish Vodka, Palinka, Irish Wiskey, etc. They bring jobs and growth to the region they are rooted in and generate 2/3 of our exports outside Europe in value. In the Withdrawal Agreement, the EU and the UK have agreed that those GIs recognised under EU law will be granted the same level of protection in UK law without the need for re-examination. However, in case of a no deal, and until the UK establishes its own GI scheme, EU GIs will not be protected in the UK market. As said by our colleagues, “GIs right holders will need the support from the European Commission to protect their GIs under the general trade mark legislation and/or to submit their application for GI status under the future UK GI scheme”.

STAY CONNECTED: Keep up-to-date with spiritsEUROPE’s activities via our Twitter & Newsletter
Subscribe