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Brexit Movement of Goods and the Supply Chain

brexit-movement-of-goods-and-the-supply-chain-pdf

PROMOTING POLICIES THAT

PROMOTING POLICIES THAT LIFT PEOPLE FROM POVERTY TO PROSPERITY ABOUT THE LEGATUM INSTITUTE The word ‘legatum’ means ‘legacy’. At the Legatum Institute, we are focused on tackling the major challenges of our generation—and seizing the major opportunities—to ensure the legacy we pass on to the next generation is one of increasing prosperity and human flourishing. We are an international think tank based in London and a registered UK charity. Our work focuses on understanding, measuring, and explaining the journey from poverty to prosperity for individuals, communities, and nations. Our annual Legatum Prosperity Index uses this broad definition of prosperity to measure and track the performance of 149 countries of the world across multiple categories including health, education, the economy, social capital, and more. ABOUT THE SPECIAL TRADE COMMISSION The Legatum Institute Special Trade Commission (STC) was created in the wake of the British vote to leave the European Union. At this critical historical juncture, the STC aims to present a roadmap for the many trade negotiations which the UK will need to undertake now. It seeks to re-focus the public discussion on Brexit to a positive conversation on opportunities, rather than challenges, while presenting empirical evidence of the dangers of not following an expansive trade negotiating path. With contributions from: Keith Hobson and George Kelly, iTax UK Steve Holloway, Corporate Counsel IOR Global, former official Australian Customs Service Tate & Lyle Sugars Lorand Bartels, Reader in International Law; Fellow, Director of Studies and Graduate Tutor, Trinity Hall, University of Cambridge Sandy Moroz and Colleen Brock, former customs and rules of origin negotiators for the Government of Canada in NAFTA Find out more at www.li.com/programmes/special-trade-commission The Legatum Institute would like to thank the Legatum Foundation for their sponsorship and for making this report possible. Learn more about the Legatum Foundation at www.legatum.org. The Legatum Institute is the working name of the Legatum Institute Foundation, a registered charity (number 1140719), and a company limited by guarantee and incorporated in England and Wales (company number 7430903)

SPECIAL TRADE COMMISSION CONTENTS 1. Introduction 2 2. Executive Summary 4 3. Leaving the Customs Union 6 4. Tariff and Duties 10 5. Mitigating the Impact of Tariffs 13 6. Rules of Origin 17 7. Product Compliance 19 8. Practicalities of Customs Clearance 22 9. The Tate & Lyle Experience 25 10. The ANZCERTA Experience 27 11. The US Canada Experience 29 12. Conclusion and Recommendations 31 Appendix 1—The WTO Legality of a Duty-free Regime for Imports of Component Products used in Exported Final Product 33 Appendix 2—Note on the Canada Border Services Agency: Customs Clearance and Trade Facilitation 36 References 56 Sources 60 About the Authors 61 About the Legatum Institute Special Trade Commission 62 | 1

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