Belgium Prepares for 'No-Deal' Brexit

RAPAPORT... Belgium's diamond industry has urged companies to preparefor the possibility of the UK leaving the European Union (EU) without a customsdeal.Trading between the EU and the UK will be subject to customschecks if the two parties fail to finalize an agreement before the split, whichis scheduled for March 29. In that scenario, known as a "no-deal" or "hard"Brexit, organizations would need an Economic Operator Registration andIdentification (EORI) number, enabling them to make customs declarations when shippinggoods across the border. The Antwerp World Diamond Centre (AWDC) circulated a notefrom the Belgian finance ministry last week calling on traders to ensure theyobtain an EORI number. "At this moment, a hard Brexit is becoming increasinglylikely, meaning organizations that trade with the UK have to prepare themselvesto limit its impact on their trade flows, especially those who are new to theconcept of customs formalities," the note said. About 20,000 companies across Belgium that still don't havean EORI number will automatically receive one soon, Minister of FinanceAlexander De Croo said last week. Those firms must then respond by giving thename 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 withthe UK to check they're making progress with the application. The possibility of a no-deal Brexit grew last week after theUK Parliament voted against a withdrawal deal Prime Minister Theresa May hadnegotiated with the EU. That agreement had included a transition period thatwould have enabled customs-free trading until the end of 2020. It's unclearwhether the UK will seek a new divorce deal, delay Brexit, or leave at the endof March with no arrangements in place. Brexit could create additional challenges for companies thatship rough diamonds to Antwerp via the UK, as the country is a participant inthe Kimberley Process (KP) through its membership of the EU. The UK would haveto 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 UKForeign & Commonwealth Office warned in October.Image: Antwerp Port House. (Pixabay)