Belgium Prepares for ‘No-Deal’ Brexit

RAPAPORT… Belgium’s diamond industry has urged companies to prepare
for the possibility of the UK leaving the European Union (EU) without a customs
deal.




Trading between the EU and the UK will be subject to customs
checks if the two parties fail to finalize an agreement before the split, which
is scheduled for March 29. In that scenario, known as a “no-deal” or “hard”
Brexit, organizations would need an Economic Operator Registration and
Identification (EORI) number, enabling them to make customs declarations when shipping
goods across the border.



The Antwerp World Diamond Centre (AWDC) circulated a note
from the Belgian finance ministry last week calling on traders to ensure they
obtain an EORI number.



“At this moment, a hard Brexit is becoming increasingly
likely, meaning organizations that trade with the UK have to prepare themselves
to limit its impact on their trade flows, especially those who are new to the
concept of customs formalities,” the note said.



About 20,000 companies across Belgium that still don’t have
an EORI number will automatically receive one soon, Minister of Finance
Alexander De Croo said last week. Those firms must then respond by giving the
name of the person at the company who’s authorized to handle customs matters.
Customs authorities will then contact the top 5,000 companies that trade with
the UK to check they’re making progress with the application.



The possibility of a no-deal Brexit grew last week after the
UK Parliament voted against a withdrawal deal Prime Minister Theresa May had
negotiated with the EU. That agreement had included a transition period that
would have enabled customs-free trading until the end of 2020. It’s unclear
whether the UK will seek a new divorce deal, delay Brexit, or leave at the end
of March with no arrangements in place.



Brexit could create additional challenges for companies that
ship rough diamonds to Antwerp via the UK, as the country is a participant in
the Kimberley Process (KP) through its membership of the EU. The UK would have
to apply to join the KP in its own right in the case of a no-deal Brexit,
potentially resulting in a temporary halt in the country’s rough trade, the UK
Foreign & Commonwealth Office warned in October.

Image: Antwerp Port House. (Pixabay)