Agreement on mobility of service suppliers

The Federal Council approved on 4 December 2020 an agreement between Switzerland and the UK on the mobility of service suppliers. The agreement provides reciprocal, facilitated market access for service suppliers to close a looming gap after the agreement on the free movement of persons between Switzerland and the United Kingdom (UK) will cease to apply as of 1 January 2021. The conclusion of this agreement is part of the Federal Council's "mind-the-gap" strategy following the UK’s exit from the EU. 

Switzerland and the UK sign trade agreement valid from January 2021

Federal Councillor Guy Parmelin and the British Secretary of State for International Trade, Liam Fox, have signed a bilateral trade agreement in Bern on 11 February. The agreement ensures the continuation of the economic and commercial rights and obligations arising from the agreements between Switzerland and the European Union (EU). It lays the foundations for the two parties to continue their sound economic and trade relations once the United Kingdom has left the EU. The new agreement was concluded as part of the Federal Council’s ‘Mind the Gap’ strategy. It replicates the vast majority of the trade agreements with the EU that currently govern relations between Switzerland and the United Kingdom.

As part of its ‘Mind the Gap’ strategy, the Federal Council wishes to ensure that the existing mutual rights and obligations in its relationship with the UK will continue to apply as far as possible after the UK leaves the EU, and to expand them in certain areas. With this in mind Switzerland and the UK have already signed agreements on road transport, air transport and insurance. In December 2018 the Federal Council adopted an agreement on citizens’ rights with the United Kingdom.

Agreement covers Liechtenstein as well

An additional agreement between Switzerland, the United Kingdom and the Principality of Liechtenstein to extend the relevant provisions of the trade agreement to the territory of Liechtenstein under the Swiss-Liechtenstein Customs Union was also signed on 11 February 2019.

Agreement between EU and UK: What it means for Swiss exporters

An agreement was reached between the EU and the UK. What does it mean for Swiss SMEs? If you have any operational questions, please contact us via exporthelp@s-ge.com so that we can provide you with precise assistance.

This step-by-step guide from the British government shows what needs to be taken into account when importing goods for UK companies.

What conditions must be met for a DDP delivery to the UK?
If you are shipping DDP to the UK, in addition to the EORI number you will also need a GB-VAT number and an indirect representative for import customs clearance.

What are the rates of duty applicable after the withdrawal? 
The standard UK tariffs for non-preferential goods, which will apply from 1 January 2021, can be found on the UK government's website here. 

A comprehensive overview of all tariff rates on agricultural products agreed between Switzerland and the United Kingdom can be found in the trade agreement starting on page 55. For industrial products, the exemption from customs duties, which is contractually agreed with the EU, will continue to apply in trade with the UK.

With which input materials may an origin cumulation be carried out?

The trade agreement between Switzerland and the UK provides for the possibility of cumulation of originating products of other Parties to the PEM Convention. Provided that the contracting party has a free trade agreement with CH and the UK and that this agreement contains identical rules of origin.

Switzerland and the UK will create the possibility to cumulate input materials from the EU and Turkey as of 9 June 2021, provided that they have obtained origin based on rules of origin identical to those of the CH-UK agreement. However, a subsequent application for preference for goods already delivered is not possible.

In what form must a proof of origin be issued?

Valid proof of origin is the movement certificate EUR 1 as well as the declaration of origin on the invoice up to a value of CHF 10,300. Authorized exporters can continue to issue declarations of origin on the invoice regardless of the amount.

The proof of origin on the invoice shall be the declaration of origin type A (EUR 1):

Type A: The exporter of the products covered by this document (customs authorization No …) declares that, except where otherwise clearly indicated, these products are of … preferential origin.

Which list rules apply from September 1, 2021?

As of September 1, 2021, the revised rules list of the PEM Convention according to Annexes 1 and 2 in Protocol No. 3 will apply.

Goods which are in transit at the time of the provisional application of the new rules of origin (September 1, 2021) will continue to be considered as preferential goods. In these cases, until August 31, 2023 (deadline of two years), it will be possible to submit a proof of origin that was issued after the date of the provisional application of the new rules of origin, as well as documents proving compliance with the transport regulations.

We have a warehouse in the EU. What needs to be considered at this point for deliveries to the UK?
You will have to export from the EU and then import into the UK. Especially important: For exports from the EU, the exporter under customs law must be based in the EU.

Goods of Swiss origin that have been definitively imported into the EU and that are stored there, will lose their preferential origin as of January 1, 2021, in accordance with the CH-UK trade agreement. However, if unprocessed goods are delivered back to Switzerland, and then re-exported from there to the UK, they will still have preferential status. Goods stored in a bonded warehouse, however, will retain their stated origin, and can be shipped directly to the UK.

What does brexit mean for customs and transport handling?
Goods that are still in transit when the transition period ends will continue to be considered as preferential goods, provided that a movement certificate from the exporting country is retrospectively issued within 12 months.

Who needs a GB-EORI number?
Anyone involved in a customs declaration for import or export in the UK requires an EORI number as before. From 1 January 2021 on, it must begin with GB; EORI numbers from EU member states are no longer accepted. Further information on the GB-EORI number and how to apply for it can be found here.

Can shipments to the UK still be processed via EU customs clearance?

EU customs clearance is now only possible for deliveries to Northern Ireland, as Northern Ireland remains part of the EU single market.

UK REACH
After the end of the transitional period, the EU REACH registration will no longer apply for sales of chemicals to the UK (with the exception of Northern Ireland). It will be replaced by UK REACH. Only UK company registrations will be transferred to UK REACH automatically; all other registrations will have to be resubmitted. UK importers are obliged to ensure registration on import. For this purpose, a “Downstream User Import Notification (DUIN)" must be applied for via the competent authority, after which registration must take place. Depending on the substances’ quantity and hazard profile, registration must be completed within 2, 4 or 6 years. Further information is available here.

Food labeling
Likewise, after following the withdrawal from the EU, the EU  labeling rules for foodstuffs will no longer apply for deliveries to the UK (with the exception of Northern Ireland). 

For information on food labeling requirements, click here.

A "UK responsible person" is required to distribute the food in the UK. This can be, for example, the importer or the distributor.

If the products are organic, additional import and labelling regulations must be observed. Information on the import regulations for organic products can be found here and information on labelling here.

From 1 January 2022, consignments of products of animal origin must be declared in advance by the importer to the IPAFFS (Import of products, animal, food an feed system). Registration must be made at least 24 hours before the arrival of the goods in the UK.

The rise in global energy costs and its impact on supply chains has prompted the UK government to postpone the implementation of import controls on goods from the EU and Switzerland, which have not yet been introduced, until the end of 2023. This affects all of the health certificate submission requirements below. For more detailed information, please refer to the press release issued by the British government.

Certain products of animal origin (e.g. meat products) must be accompanied by a health certificate from 1 July 2022. For dairy products, the health certificate will be required from 1 September 2022 and from 1 November 2022, all consignments of food products must be accompanied by health certificates.

Certain products of animal origin (e.g. chilled minced meat) may no longer be imported into the UK from 1 July 2022. An overview of the affected products can be found on the website of the British government.

The templates for the corresponding health certificates can be found on the website of the Federal Food Safety and Veterinary Office.

UKCA

For goods placed on the UK market before 1 January 2021 the CE marking does not need to be replaced.

At the end of the transitional period, the CE conformity marking will be replaced in the UK by the UKCA. For most products, CE marking will be accepted until 31 December 2024 (before 1 January 2023). On 1 August 2023, the british government announced that the transition periode for most product groups, would be extended beyond 31 December 2024. Provided that there is no adjustment to the relevant EU regulations and thus a deviation from the UK regulations.

A "UK Responsible Person" or a "UK Authorised Representative" is required for the UKCA of certain products. This can be, for example, the importer or the distributor.

For deliveries to Northern Ireland a CE marking is still required.

Further information on the application and the transition periods can be found here.

Plastic packaging tax

From April 2022, a tax on plastic packaging will be introduced in the UK. This will affect importers who import more than 10 tonnes of plastic packaging per year into the UK. 

Certain types of packaging will be exempt from the tax, including those that contain at least 30% recycled plastic. 

More information about the plastic packaging tax can be found here.

In order to give companies more time to adapt to the new conditions for importing goods, the introduction will take place in stages up until January 1, 2022. The measures are to be introduced irrespective of the outcome of the negotiations on future relations, which means they are to enter into force even if both parties agree on a free trade agreement. They will only apply to imports from the EU.

The measures differ according to the product category

From January 2021:

• Advance declarations (entry summary declarations/safety and security declarations) will be waived for a period of six months for all goods. 
• For most goods, complete import declarations can be lodged retrospectively for a period of up to six months.
• If customs duties must be paid, there is the possibility of deferring payment. Payment is due on the date on which the complete import declaration is lodged.
• For goods subject to authorization or monitoring, a complete import declaration is required at the time of import. These include tobacco, alcohol or toxic chemicals, for example. The import requirements for goods from third countries will start applying to these products on January 1, 2021.
• For live animals and high-risk plants and plant products, advance notification and health certificates are required. Although document checks will be used, they will not be carried out on the spot during the actual import. Physical checks for high-risk goods will be carried out at the place of destination of the goods or at some other authorized place of reception.

As of 1 January 2022 (old date 1 October 2021).

• Complete import declarations must be submitted at the time of import.
• Advance declarations are required for all plants and plant products and for all goods of animal origin.

The rise in global energy costs and its impact on supply chains has prompted the UK government to postpone the implementation of import controls on goods from the EU and Switzerland, which have not yet been introduced, until the end of 2023.
For more detailed information, please refer to the press release issued by the British government.

From 1 July 2022 (old date 1 October 2021): Postponed to end of 2023

• A health certificate is required for all plants and plant products as well as for certain goods of animal origin (e.g. meat products).

From 1 July 2022 (old date 1 January 2022): Postponed to end of 2023

• Advance declarations (entry summary declarations/Safety and Security Declarations) will become mandatory for all imports.
• Physical checks and sampling of SPS goods will be increased. Checks will take place at UK border inspection posts.

From 1 September 2022 (old date 1 July 2022): Postponed to end of 2023

• A health certificate will be required for dairy products.

From 1 November 2022 (old date 1 July 2022): Postponed to end of 2023

• A health certificate will be required for all goods of animal origin and composite foodstuffs.

We have a warehouse in the EU. What needs to be considered at this point for deliveries to the UK?
You will have to export from the EU and then import into the UK. Especially important: For exports from the EU, the exporter under customs law must be based in the EU.

The EU-UK agreement does not provide for movement certificates (e.g. WVB EUR 1). The declaration of origin shall be made out on the invoice. For consignments with a value of more than EURO 6,000.00, the REX number of the customs exporter must also be indicated.

Goods of Swiss origin that have been definitively imported into the EU and that are stored there, will lose their preferential origin as of January 1, 2021, in accordance with the CH-UK trade agreement. However, if unprocessed goods are delivered back to Switzerland, and then re-exported from there to the UK, they will still have preferential status. Goods stored in a bonded warehouse, however, will retain their stated origin, and can be shipped directly to the UK.

The Services Mobility Agreement (SMA) between Switzerland and the United Kingdom of Great Britain and Northern Ireland (UK) regulates the mutual access and temporary stay of service suppliers, for example of management consultants, IT experts or engineers from January 1, 2021. On the UK side, market opening vis-à-vis Switzerland is achieved through market access commitments in over 30 services sectors. In addition, the UK grants Swiss service suppliers further preferential treatment. For example, Swiss service suppliers are not subject to an economic needs test for access to these sectors in the UK and are not required to provide evidence of knowledge of English. Service suppliers from Switzerland can stay in the UK up to 12 months in any 24 month period. With these conditions, the SMA will continue to allow Swiss companies extensive market access in the UK for contract-based service provision by natural persons.

Market access to the UK under the SMA is currently limited to persons with qualifications at university or equivalent level. However, the UK undertakes, through an exchange of notes, to reassess the equivalence of Swiss vocational education and training qualifications.

The SMA is initially limited to two years. However, the contracting parties may jointly decide to extend the duration. The agreement will be applied provisionally from January 1, 2021.

There are a variety of visas for accessing the UK; the “Temporary Worker - International Agreement Visa (Tier 5)” or the “Standard Visitor Visa”. For certain business activities lasting up to 6 months, no visa is required:

• Under the SMA, a “Temporary Worker - International Agreement Visa (Tier 5)” is required for access as a “Contractual Service Supplier” or “Independent Professional”. You can find information on the topic here.
• For certain business activities, a “Standard Visitor Visa” is sufficient. You can find out which activities this applies to here.
• For certain business activities, no visa is required. You can find out which activities this applies to here.

At gov.uk, a “Check if you need a Visa” tool is available for this purpose.