We have just been informed that on the occasion of Eid al-Fitr the Arab British Chamber of Commerce will be closed on Friday 15 June 2018 and will return for business as usual on Monday 18 June 2018.
Please also note that the Embassy of Saudi Arabia will be closed from 13 June 2018 returning to business as usual on Monday 25 June 2018. Most other embassies will be closed for several days during this week.
We would just like to pre-warn you that you should expect some delay with your legalised documentation. We usually advise 3-4 weeks for the documents to be returned, but during this period it could take up to 6 weeks.
Leaving aside any transition period, the UK will withdraw from its membership of the EU on 29 March 2019.
At that point – or on whatever date is finally agreed between the two sides – it will become what the EU calls a “third country” (a non-member).
One of the consequences of that new status will be that UK businesses will no longer benefit from preferential trade arrangements agreed by the EU with other countries, as it presently does.
In particular, both importers and exporters will have to get to grips with Rules of Origin (ROO) requirements, explained by the European Commission in a recent notice.
Among the points made by the Commission are that UK materials or processing operations (aka “inputs”) will be considered as “non-originating” under a preferential trade arrangement for the purpose of determining whether the goods incorporating them are entitled to preferential tariff treatment.
For goods exported from the EU, an EU free trade agreement (FTA) partner country might consider that goods having an EU preferential origin before the UK’s withdrawal date no longer qualify, due to UK inputs no longer being considered as EU content.
Similarly, for goods imported into the EU, UK inputs incorporated in goods obtained in third countries with which the EU has preferential trade arrangements and imported into the EU as of the withdrawal date will be considered non-originating.
Exporters in third countries might, therefore, have to prove the EU preferential origin of the goods they wish to send to the EU.
Is that a problem? This may sound very technical but the Dutch Government has already advised its manufacturers who buy components from the UK that they might want to start looking at suppliers from within the EU27 to ensure that they do not fall foul of ROO rules after Brexit.
In a useful article on Rules of Origin (ROO), Professor Catherine Barnard and Emilija Leinarte of the University of Cambridge suggest that the rules seem to place a big question mark next to the UK Government’s “frictionless trade” objective.
“Every exporter – small or large – will have to determine whether their goods originate in the UK or abroad according to the complex technical and legal rules,” they write.
Customs delays are likely to appear as the application of ROO will require checks – something that could become a hurdle to manufacturers who often work on a precise, and often last minute, schedule to avoid storage.
UK ports do not currently have technical infrastructure to ensure an efficient application of ROO, they warn, and the requirement will also impact on the Ireland/Northern Ireland border issue.
The Family business, once a staple of British industry, is disappearing. Although two thirds of UK industry is made up of family business, fewer than 13% survive beyond the second generation.
A generation ago, family firms were thriving and the heirs were jumping at the chance of income, job security and ultimately the sense of pride of taking over the family legacy. But nowadays the future of family businesses is not so certain, children are choosing to follow their own career paths and are more reluctant to carry on the legacy and tradition of the family business.
Each year 30,000 businesses close because they can’t find someone to take over. With the help of leading business expert Alex Polizzi, the second series of this hugely successful programme, will guide and advise family businesses through some of the trials and tribulations a family run company can face – whether it’s how best to plan for the future and preserve the legacy of previous generations, or looking at ways to improve profitability and diversification and developing the business to make sure it’s a success for years to come.
Twofour want to hear from struggling family businesses who are finding it tough in the current economic climate and who are uncertain about the future of their business. To find out more please contact Celia 0207 438 1918 or email [email protected]
Norfolk Chamber holds a regular series of evening networking where we like to take Norfolk businesses to new and upcoming venues in the Norwich area. On Thursday 14 June we took a trip to the Bowling House, which opened its doors in March this year. Our delegates joined us after work, grabbed their bowling shoes and commenced the evening with drinks and networking. The evening got into full swing as we took over the 5 intimate lanes at the Bowling House, perfect for building relationships with teammates and competitors. There were some interesting bowling techniques on the lanes, but at least one player from each team made a strike, with plenty of cheering and celebration. Our high scorer for the evening was Ross Taylor from Towergate Insurance who scored 157 with 3 strikes from his 10 bowls! This was followed closely by Alexandra Lynch from the UEA with a score of 155. Following the bowling, all delegates sat together to enjoy the amazing food served by the Bowling House. We were spoilt for choice with so many delicious dishes, including their famous nachos and crispy jalapeños. Our next evening networking event is Cocktails & Pizza! We’ll be taking you to the hottest new cocktail bar in Norwich: Chambers Cocktail Company! You can enjoy making a cocktail with one of their expert barmen, as well as enjoying a fresh pizza delivery from Brick Pizza! More details.
Six in ten businesses (59%) tell BCC that they would feel more confident in securing finance if Britain had a government-backed business bank or finance agency
Announcement of £1bn funding by Vince Cable an important step in journey toward a fully-fledged British Business Bank
Significant achievement for BCC campaign for creation of a business bank similar to those in other countries
Responding to the news that Vince Cable will announce a £1bn government commitment toward the creation of a business bank, Caroline Williams CEO Norfolk Chamber of Commerce, said:
“The government has taken a decisive step toward the creation of a British Business Bank by committing real money to get it off the ground.
“We are pleased that ministers are heeding the Chamber Network’s call to create a business bank that goes well beyond a re-badging of existing schemes. The funding announced by Vince Cable is the first step in a journey toward a British Business Bank that enables new and growing companies to get access to capital in the same way that they do in Germany, South Korea, and the USA.
“Six in ten Chamber members*, including those from Norfolk, told us just last week that they would feel more confident in securing finance if Britain had a government-backed business bank. So many companies will be encouraged by today’s news.
“However, there are a number of challenges that need to be addressed to ensure the business bank can support the real economy. At least initially, the business bank will have to work through existing lenders, which could put off some companies who still do not believe that the high-street banks will help them access the capital they need to grow. We also need to better understand how taxpayers’ cash will be used to unlock additional funds for business lending from the markets. And given the fact that growing companies need access to capital for the long term, the funding announced today must be the first, not the last, sum destined to support business lending at this new institution.”
On the day that the National Living Wage comes into effect, The British Chambers of Commerce calls on the government to act cautiously as it increases the wage – or risk business investment, productivity, and growth.
Given that companies face a number of up-front costs, there is a risk that some firms could be forced to divert money away from investment in skills and infrastructure, which could hurt the UK’s productive potential.
Caroline Williams, Chief Executive of Norfolk Chamber said:
“It is important that all Norfolk businesses, both large and small, understand the new National Minimum Wage regulations to ensure they are compliant with the new regulations which are now in effect. Low pay and low social mobility are challenge to the Norfolk economy, but they won’t be solved just by driving up wage rates. The best way to get a high-wage economy is through better education, training, and investment, by schools, universities and businesses alike.”
Dr Adam Marshall, Acting Director General of the BCC, said:
“As a member of the Living Wage Commission, I saw first-hand how a decent wage can transform people’s lives, as well as their performance at work. So we should celebrate every business that can, and does, make the commitment to pay each and every employee a living wage. That includes a significant majority of Chamber of Commerce members all across the UK.
“However, the government’s new National Living Wage will apply a ratchet effect to all companies’ pay bills, and sits alongside a raft of other high employment-related costs. It is unclear whether the NLW will spur productivity or strengthen businesses, communities or the economy as a whole. While many companies have the ability to increase pay, others will struggle to do so alongside pensions auto-enrolment, the apprenticeship levy, employer National Insurance contributions, and other up-front costs. Some will have to divert money from training and investment to increase pay, which could hurt their productivity. Others may stop hiring altogether.
“In the face of these concerns, the government must make a clear commitment to avoid over-burdening firms when it comes to future increases in the National Living Wage. Future increases must be proportionate, take account of other employment-related costs, and be based on clear and unequivocal evidence.
Hear a quick policy update from Adam Marshall, Executive Director of Policy & External Affairs at the British Chambers of Commerce (BCC). He outlines the work that is being done by the BCC in lobbying for further cuts to red tape and regulations that affect the business community. The government are looking at a new initiative to cut £10 billion in red tape over the lifetime of this Parliament.
If you have any feedback on onerous regulations please contact Nova Fairbank on email: [email protected] and we will pass your comments to the British Chambers of Commerce.
Three well-known faces will be making an appearance at Norfolk Chamber’s B2B Autumn 2012 business exhibition on 18 October including Formula One and 2012 Olympic Games presenter Jake Humphrey, Anglia Tonight presenter Emma Baker, and Norwich City Football Chief Executive David McNally.
All three personalities will be appearing at the free-to-attend flagship event to show their support for local business and give a boost to the popular event, which is the largest business exhibition in Norfolk.
An experienced and knowledgeable Television and Radio broadcaster, Jake Humphrey, originally from Norfolk, is at the forefront of much of BBC Sport’s coverage for many national and international events. He was part of the team hosting an incredible Summer of sport, broadcasting at the European Championships in Poland and Ukraine, hosting Summer Olympics coverage for BBC One and BBC Three, as well as continuing to anchor the BBC’s award-winning Formula One coverage, a role he has performed since the sport’s return to the broadcaster in 2009.
Jake will be the studio face of BT Vision’s Barclays Premier League programming from the start of the 2013/14 season. BT won the rights to show 38 live games a season for three seasons, including 18 of the best quality ‘first pick’ games, which is the first time anyone but Sky has won any of the prime live Premier League matches. As a patron for the Break Charity, Jake is also an Ambassador for the ‘Go Go Gorillas’ project, where a parade of painted gorilla sculptures will appear on Norwich city streets. Horatio the gorilla will be being painted live at the B2B Autumn 2012 exhibition and you can hear from Jake at 2.20pm on the day.
B2B Autumn 2012 will be held at Norwich city football Club on 18 October between 10am and 5pm. For more information or to book a stand, go here
In spite of the volatility caused by the international financial crisis, developing nations remained the key drivers of growth in international trade for 2011, according to the International Chamber of Commerce (ICC).
South Asia exports, driven by soaring Indian trade with China, outperformed other developing regions in the first three quarters of 2011, but subsequently plummeted.
This year’s ICC Global Survey on Trade Finance, Rethinking Trade and Finance, notes that, after a year of upheavals, annual trade volume growth for 2011 was 6.6%, slightly above forecasts by the World Trade Organization.
However, after positive growth prospects at the beginning of the year, a series of global shocks, including the Arab Spring, the tsunami in Japan and the continuation of the global debt crises, resulted in an uneven performance for the year.
The ICC survey, which provides some of the most important international data on trade finance, suggests that the current environment is dampening prospects for 2012, with annual trade growth forecast at 5.2% this year, increasing to 7.2% in 2013.
The report – in which representatives of 229 banks in 100 countries took part – reveals that China’s trade experienced particularly volatile growth throughout the year, and exports from East Asia have fallen.
Many major developing countries in the region are experiencing a slowdown in growth due to a tightening of domestic policy initiatives introduced between late 2010 and early 2011 to combat high inflation.
The eurozone meanwhile was strongly affected by the financial and economic crises and, down 5.85%, had the highest annual decrease in export traffic.
Commenting on today’s Monetary Policy Committee (MPC) decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The £50bn increase in Quantitative Easing (QE) announced by the MPC may have only marginal benefits to the real economy. Arguments for increasing QE have been strengthened by the threat posed by the eurozone crisis to the UK’s financial system, but there are other policies that could help boost economic growth.
“While the increase in QE may produce some modest benefits, the policy is not risk-free, and could be counter-productive. It may limit the decline in inflation in the long term. It may limit the decline in inflation in the long term, at a time when we need falling inflation to underpin real incomes and boost demand in the UK economy. QE was the right response in earlier years, but at the present time its benefits for the real economy are at best likely to be marginal.
“There are better and more effective ways to tackle the challenges faced by the UK financial system and the real economy. For example, we believe the government and Bank of England should implement the lending and liquidity schemes recently announced at the Mansion House swiftly. To boost lending to businesses, the MPC must agree to purchase private sector assets, and the government must initiate moves towards the creation of a business bank.
With the new President at odds with the military council and parliament being suspended by the country’s Supreme Constitutional Court, outside observers could be forgiven for thinking that trade is low on Egypt’s list of current concerns.
However, the country clearly cannot afford its political upheavals to stand in the way of moves to facilitate and secure its international trade, and plans have been announced for Egypt to join the TIR Convention “in the very near future”.
The International Road Transport Union (IRU) has reported that major public and private stakeholders have met recently to discuss a concrete action plan aimed at speeding up the efforts needed to join the Convention.
The meeting was attended by the country’s Customs Commissioner as well as representatives from the import and export control authority and from the transport industry.
They unanimously agreed on the vital need for Egypt to join, as soon as possible, the major UN trade and road transport facilitation and security instruments, including the Harmonisation and TIR Conventions, to further develop the country’s international trade and to enable it to become a logistic hub for the region.
Adhesion to the TIR Convention would be particularly timely for Egypt, the IRU has pointed out, given the recent launch of regular ferry lines allowing RO-RO (roll-on, roll-off) transports from Turkey to Egyptian ports.
TIR stands for Transports Internationaux Routiers (International Road Transport) and is an international harmonised system of Customs control intended to facilitate trade and transport whilst effectively protecting the revenue of each country through which goods are carried.
The deadline for agreeing a new EU budget for the next seven years is fast approaching; and if anyone harboured any hopes that this budget would be reoriented towards growth, they will be sorely disappointed. Farm ministers of France and Germany argued that CAP spending between 2014 and 2020 should be frozen, and not cut as some countries had demanded. If this position is maintained there will be no headroom in the budget for the EU’s policy priorities to be matched with more EU spending. France and Germany are arguing that the CAP can be a catalyst for growth, employment, innovation – rather than allowing opponents to portray the CAP simply as a social security scheme for farmers. The UK Government will undoubtedly regret this development but may not choose to fight it as it will need to use its political capital to defend its budget rebate.
The Commission consults on VAT
Last week the Commission launched a consultation on reduced VAT rates, as part of a wider exercise to reform the EU VAT system in order to make it simpler, more efficient and more robust. The consultation focuses on 3 specific areas where reduced VAT rates need to be reviewed: the impact of reduced rates on competition within the Single Market; the choice of goods and services which can benefit from a reduced rate; and the impact of technological developments on the VAT treatment of similar goods and services (which was agreed by Member States many years ago, and EU policy has developed and evolved since). Therefore, respondents are asked whether certain reduced VAT rates now contradict EU policy objectives. Here, answers should be concentrated on the reduced rates for water, energy, waste management and housing.