Chemicals Alternative

Existing frameworks for how trade is facilitated between countries in this sector

75. The arrangements described in this section are examples of existing arrangements between countries. They should not be taken to represent the options being considered by the Government for the future economic relationship between the UK and the EU. The Government has been clear that it is seeking pragmatic and innovative solutions to issues related to the future deep and special partnership that we want with the EU.

76. There are a number of existing arrangements that govern the way in which non-EU Member States trade in consumer goods with the EU. Around the world, other countries have also created arrangements for trading specific categories of consumer goods.

77. Manufacturers from outside of the EU wishing to export construction products to the EU need to meet the requirements set out in the applicable EU legislation. Importers and distributors of construction products from manufacturers based in third countries must satisfy themselves that the products comply with EU legislation, including a
conformity assessment by an EU notified body. These manufacturers would also need to comply with legislative requirements in their home country, and any other countries, where they intend to market products.

78. Countries can use bilateral Mutual Recognition Agreements that allow conformity assessment bodies in either market to carry out product testing and certification to each other’s legislative requirements. The authorities in both parties agree to accept conformity assessment decisions issued by bodies recognised in one another’s
markets. Manufacturers still need to ensure that products meet the requirements set out in the legislation where they plan to market the product.

79. The EU has concluded MRAs with seven countries, covering a variety of sectors. Some of the EU’s bilateral MRAs have been integrated into FTAs, not all of which cover construction products. CETA is an example of an MRA that does cover some construction products, and offers mutual recognition of conformity assessment for eleven sectors including toys and recreational craft. CETA also contains provisions for voluntary cooperation on data exchange to support market surveillance activity and exchange of information about the development of technical regulations.

80. Other existing agreements, such as the EU-Swiss agreements and the EEA Agreement, provide for further mutual recognition. For example the EU-Swiss MRAs provide mutual recognition across around twenty product types, including those in CETA as well as personal protective equipment and are linked to an agreement that recognises Swiss lgislation as equivalent. Where legislation is deemed equivalent,notified bodies’ certificates of conformity with the product rules in the EU will be recognised as proving conformity with Swiss legislation, and vice versa. They also cover cooperation on market surveillance of products already on sale.

81. In the EEA agreement, where there is EU legislation for construction products, EEA countries adopt EU product legislation into their domestic legislation, and goods that originate from these countries are treated as products from member states. Theagreement also includes a system of surveillance and enforcement.

82. Trade in manufactured goods can be facilitated through the use of international standards, such as those developed by the International Standards Organisation (ISO) and the International Electrotechnical Commission (IEC). These are voluntaryagreements on best practice for a given process or product. These standards are voluntary, and the majority are developed purely for commercial purposes, such as tosupport the interoperability of supply chains.

Customs
83. There are many customs facilitation arrangements in international agreements. These include the EU’s agreements with a number of third countries, such as Canada, Korea,and Switzerland. These agreements differ in the depth and scope of customs facilitation offered. Examples of customs facilitations include: simplifying customs procedures, advance electronic submission and processing of information before physical arrival of goods, and mutual recognition of inspections and documents certifying compliance with the other parties’ rules.

Tariffs

84. In the absence of a preferential trade agreement, goods imported into the EU from non-EU countries must pay a tariff. Tariffs are custom duties levied on imported goods. Under WTO Most Favoured Nation (MFN), a country’s tariff schedule must be consistent for all countries it trades with, except those where a preferential trade agreement exists. EU MFN tariff rates vary depending on the good.

Rules of Origin

85. The EU includes rules of origin in all of its FTAs, which are restrictions on the originating content of products that exporters must comply with to gain tariff preferences. These rules typically reflect both the supply chains of both the EU and its FTA partner. Many of the EU’s rules of origin arrangements are based on the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin, which includes provisions that allow producers to treat content from some third countries as if it comes from their own country. Several arrangements aim to reduce the administrative requirements associated with origin certification, including the EU’s Registered Exporter (REX) system, which lets businesses register for self ertificationof origin using an online system, avoiding paper certificates.