Brexit begins: UK government triggers withdrawal from EU

UK. Prime Minister Theresa May this morning signed the letter that will trigger Article 50 of the Lisbon Treaty, marking the start of the UK’s withdrawal from the EU. The letter will be delivered to the European Council today.

As it stands, the UK will exit the EU on 29 March 2019 following a two-year period of negotiation. Crucially, that should mean the return of duty free sales between the UK and the other 27 member states of the EU on the day the UK leaves.

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Theresa May today triggered Article 50 of the Lisbon Treaty, meaning EU-UK duty free could return on 29 March 2019

The duty free industry has recently stepped up efforts to recommence sales to passengers travelling between the UK and EU countries, a channel that was scrapped in 1999.

As reported in our recent extensive briefing on the issue, existing legislation will permit EU passengers to purchase duty free when travelling to the UK as soon as the country leaves the European Union. The UK will need to amend its excise duty and VAT rules to allow EU-bound travellers leaving the UK to purchase duty free post-Brexit.

Lobbying groups the UK Travel Retail Forum and the European Travel Retail Confederation (ETRC) are working hard behind the scenes to pave the way for what will be a welcome boost for the UK and EU duty free sectors.

Reacting to today’s move, the UK Travel Retail Forum (UKTRF) said: “The UK Travel Retail Forum recognises the significance of the Prime Minister invoking Article 50 to begin the process of the UK’s departure from the European Union.

“Once the UK leaves the EU it will be recognised as a “third country” and passengers travelling from EU destinations to the UK will automatically be entitled to purchase duty and tax free goods at ports and airports. UKTRF is calling upon the UK Government to amend existing legislation to extend this benefit to UK passengers travelling to EU destinations. This work begins now.

“The reintroduction of tax and duty free sales for passengers from the UK to the EU can only benefit the UK’s aviation and maritime sectors and generate positive indirect economic impacts. It will also be hugely popular with the British public who already have an expectation of a return to duty free.”

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Dufry/World Duty Free (London Stansted pictured) stands to be among the big beneficiaries from the return to a duty free regime between the UK and EU states
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