Commission Launches 4 New Infringement Proceedings Against UK

The European Commission has announced it is launching four new infringement proceedings against the UK

• Official statement announcing proceedings:https://ec.europa.eu/commission/presscorner/detail...
• Q&A on why the EU is launching proceedings:https://ec.europa.eu/commission/presscorner/detail...

1. Failing to comply with the applicable customs requirements, supervision requirements and risk controls on the movement of goods from Northern Ireland to Great Britain
2. Failing to notify the transposition of EU legislation laying down general EU rules on excise duties,
3. Failing to notify the transposition of EU rules on excise duties on alcohol and alcoholic beverages
4. Failing to implement EU rules on Value Added Tax (VAT) for e-commerce, namely the Import One-Stop Shop (IOSS). The IOSS is a special scheme that businesses can use since 1 July 2021 to comply with their VAT obligations on distance sales of imported goods.

EU states that following the launching of proceedings today, UK has 2 months to reply before 'further measures'. In terms of these further measures, the Commission states "the Commission will consider taking the UK to the Court of Justice of the European Union...the Court of Justice has full powers provided for under the Treaties, including the possibility to impose a lump sum or penalty payment. Other remedies are possible, including in relation to the Trade and Cooperation Agreement."

• Threat to TCA, the free-trade deal between the UK and EU risks trade war developing should all or parts of the agreement be disapplied.
• In the ongoing Conservative leadership contest, the issue of the Northern Ireland protocol has had little discussion by candidates Rishi Sunak or Liz Truss. Today's announcement could see this change.