BCF Annual Handbook 2019/2020 handbook 2019 2 | Page 26

BREXIT Brexit Brexit has kept the BCF incredibly busy. Member companies will be impacted in every way by the divorce, from regulatory compliance to customs and VAT and movement of people. At the time of writing, it wasn’t known when exactly the UK will leave the EU, even though the original deadline of March 29th had been extended to the end of October. The wait is on to hear what process will resolve the Brexit gridlock in Parliament. BCF has presented the industry’s supply chains and products to government, who has a deeper understanding of the wider chemical industry than ever before, and how interlinked we are to the EU. Government have been engaging with BCF on a regular basis and, as a result, BCF have increased member engagement - asking questions about the origins of their raw materials, and plans for a “no deal” Brexit. Chemical regulations In the event of a hard Brexit, or no deal Brexit, one of the biggest concerns is the UK’s chemical regulatory framework, with fears that companies will have to comply with two different sets of chemicals regulations. The BCF’s Ellen Daniels continues to chair the REACH Cross Sector Group for a second year, which consists of downstream users of chemicals. The group meets three times a year and has attendance from government departments including Defra, BEIS, DExEU and HSE. The group has been a vital sounding board for government ahead of planning for the UK REACH regulations. Likewise, the Alliance of Chemical Associations (ACA), of which the BCF is a member, wrote to Defra Minister Therese Coffey, highlighting concerns around the proposed legislation, with issues around data submission for registrations. Similarly, on BPR and CLP, the BCF has been attending HSE- led workshops, to feed into the drafting of the regulations post-Brexit. The CLP regulations include Poison Centres, which was copied across from the EU legislation, and will be highly burdensome on industry. This is one of the few areas the BCF 26 can see a benefit to Brexit, as countries outside the EU do not have to comply with such onerous legislation. The BCF has written to the UK’s Health and Safety Executive highlighting major concerns for the coatings and printing ink industries, following publication of an independent study of new EU Poison Centre legislation that demonstrated that the costs of implementation will put the coatings and printing inks sectors out of business, if it is not fundamentally altered. The business impact In 2018, Ellen Daniels and Tom Bowtell met with Richard Harrington MP, the then Minister for State in BEIS, with responsibility for chemicals. They discussed the various business impacts of Brexit on the industry, including rules of origin, VAT changes and WTO tariffs. BCF also sit on BEIS’ CEEG, which explores the consequences of various Brexit policies on businesses in the chemicals sector. The CEEG is a cross-departmental group with 3 ministers, several senior civil servants and a handful of key industry people. The group is co- chaired by Calum McLean, CEO of Synthomer, and the Business Minister for Chemicals and includes only two trade bodies - CIA’s CEO Steve Elliott, and BCF’s Tom Bowtell. The group is an excellent forum for intelligence sharing and also used by government to get feedback from industry on proposed Brexit policy positions. Brexit has introduced the potential for changes to customs and VAT rules. The BCF has been working with BEIS to try to ascertain rules of origin for members’ products, and as a result, the BCF set up a Trade and Customs Sounding Board, to gain evidence and case studies from coatings, inks and wallcoverings manufacturers. Establishing product journeys for coatings, inks and wallcoverings is key to avoiding World Trade Organisation (WTO) tariffs in the future, as to classify a product as British, it has to be proven that 60% of its value has come from the UK. BCF ANNUAL HANDBOOK 2019/20