Business travel between the European
Union and its former member state the United Kingdom is set to become significantly
more complicated from Jan. 1. The UK left the EU on Dec. 31, 2019 but
little changed in the transition period that runs to Dec. 31, 2020. However,
annexes included in the 1259-page trade agreement between the EU and UK
published on Christmas Eve confirm that once the transition ends many
activities carried out by short-term business visitors will require work
permits and in some cases the passing of an economic needs test.
There are several additional new restrictions
on freedom of movement and other changes, although the ending of state
healthcare rights for visitors and the need to carry international driving
permits have largely been avoided.
Nevertheless, said Scott Davies, CEO
of the UK and Ireland’s Institute of Travel Management, “the deal which has
been struck does not appear to directly address the need to minimize friction
and paperwork for business travel to and from the EU. Previously, travel to the
EU required little thought around entry requirements and permissions. Travelers
will now potentially need to understand the conditions and rules that apply for
each country.”
Davies was also highly critical of
failure to reach an agreement until one week before the UK government’s
self-imposed deadline for ending the no-change transition period. “The late
agreement of a Brexit deal has further challenged and complicated organizations’
plans to prepare for business travel beyond the transition period,” he said. “ITM’s
buyer members have been working hard to put the necessary processes and
considerations into place, without the full knowledge of the scenario they will
be faced with.”
Based on a reading of the trade agreement
itself, plus advice from the UK government and other sources, this is BTN’s
best understanding of what changes will affect business travel between the EU
and UK as of 1 January. No actions should be taken solely on the basis of this
article, especially as more clarification can be expected on key points such as
work permits.
New Limitations on Freedom of Movement:
(Note: There are no changes to travel between the UK and the Republic of Ireland. Travel between the UK and Ireland is
excluded from the changes below because the countries are members of a Common
Travel Area predating the two countries’ membership of the EU and not dependent
upon it.)
Covid-related ban on
non-essential UK travelers: At time of writing no exception has
been announced for UK passport holders to a ban on non-essential visitors entering
the EU and the four European Free Trade Association states (Iceland,
Liechtenstein, Norway and Switzerland). Only a handful of countries with very
low coronavirus infection rates, such as New Zealand, are exempt.
New limits on length of stay: There is no limit to how long EU
citizens can stay in EU countries other than their own. This right disappears
for UK passport holders on 31 December 2020. Instead, they can visit most EU
countries plus the four EFTA states for a combined total of up to 90 days in
any 180-day period. For example, 30 days each in Belgium, France and Germany is
permitted. Thirty days each in Belgium and France plus 31 in Germany would
breach the limit. Passport will be stamped on entry to and exit from all
countries.
The exceptions to the rule above are
Bulgaria, Croatia, Cyprus and Romania. They form a separate bloc with another
combined limit of 90 days’ entry for UK passport holders during any 180-day
period.
The clear consequence for travel
managers is that they will need to track how many days their business travelers
with UK passports spend in continental Europe. Monitoring is advisable in any
case for purposes such as tax compliance.
EU passport holders can visit the UK
for up to six months at a time.
Visitors in both directions may need
to carry not only their passports but proof of a return or onward trip and
financial means to support their stay
New restrictions on visa-free
business travel: UK passport holders visiting the EU and
vice versa for business purposes will potentially need visas or work permits for
the first time since 1973. “While the rules will depend on the EU27 country being
visited, visa-free travel will generally only be possible for UK passport
holders for a limited number of permitted business activities,” said
the law firm Travers Smith.
The trade agreement lists permitted visa-free activities for
short-term business visitors between the EU and UK. These activities include
“attending meetings or conferences, or [engaging] in consultation with business
associates.” Also permitted are research and design, marketing research, the
receiving of training, attending trade fairs and exhibitions, sales trips
(although “short-term business visitors shall not engage in making direct sales
to the general public”), purchasing, after-sales service, commercial
transactions, tourism, and translation and interpretation.
There is no clarification of non-permitted activities but
early reports suggest they are wide-ranging, including conducting (as opposed
to receiving) training and any kind of artistic performance (or supporting
artists as road crew).
The trade agreement lists additional
restrictions on UK visitors imposed unilaterally by some EU member states. For
example, Cyprus, Denmark and Hungary all require a work permit, including an
economic needs test, “in case the short-term business visitor supplies a
service.” Austria imposes numerous additional conditions on activities
including research and design, marketing research and trade fairs.
If a visa is required, “visa
options available will depend on the nature of the activities to be undertaken,
the qualifications of the individual as well as the duration of the activities,”
said Travers Smith, which also advised that “even where the duration and activity
fit squarely within the business travel rules for the country being visited,
employers may wish to brief individuals to ensure they know how the new
requirements apply to them as well as providing letters to facilitate entry at
the relevant border. They may also want to review and update business
travel policies more generally to cover the new position. In some cases,
employers will need to consider whether the scope of activities can be
amended or indeed whether a work permit will be required to ensure
the activities can be legally undertaken.”
Another law firm, Brodies, recommends business people traveling
between the UK and EU carry a letter, which should outline the duration of the
trip, what activities they will carry out, who will meet the costs of travel
and subsistence and details of where they are normally employed.
Certain categories of business visitor will also need to
check whether their professional qualifications are still recognized in the EU.
Examples include lawyers and finance traders.
Special arrangements for Switzerland: Under an agreement announced on 4 December, UK professionals can
work in Switzerland for up to 90 days per year without a work permit or other
paperwork. Swiss service providers can execute contracts in the UK for up to 90
days per year. The agreement lasts until 2023.
Restricted passport validity: UK passport holders entering the EU
will be required to have at least six months left on their passport. There is
no reciprocal requirement for EU passport holders entering the UK. However, for
citizens from EU countries that issue identity cards, these will – with a
handful of minor exceptions – no longer be accepted at UK passport control from
Oct. 1, 2021
Visa-free authorization from 2022: From a date yet to be confirmed in 2022, all non-EU citizens
entering the Schengen Area without a visa will need first to have obtained
approval through the European Travel Information and Authorization System,
equivalent to the United States’ Electronic System for Travel Authorization. This
requirement will include UK citizens. The Schengen Area comprises all EFTA and
EU states except Bulgaria, Croatia, Cyprus, Ireland and Romania.
The UK has said it will introduce a similar authorization
system, but there are no details yet.
Exclusion from EU passport lanes: The UK government says UK passport holders may no longer be
able to use special passport and customs lanes reserved for EU citizens.
According to BCD Travel, quoting the website Schengen Visa Info, switching
lanes could delay travelers at airports by up to an hour, a point worth
remembering especially when flight connections are involved.
EU passport holders will be allowed to continue using
automatic gates at UK airports.
Changes to customs rules: UK passport holders will be banned from taking products
containing meat or milk into the EU. They may need to make a customs
declaration if they bring in goods for sale or business use and will have to
declare whether they are carrying more than £10,000 in cash.
Small amounts of alcohol and tobacco can now be purchased
duty-free in either direction. However, coincidentally, from Jan. 1, 2021
visitors from any country, including the EU, will no longer be able to reclaim
value-added tax on items purchased from shops in England, Scotland or Wales
(Northern Ireland is exempt).
Changes to the Right to Medical Treatment
The European Health Insurance Card guarantees EU citizens the
right to state-provided medical treatment anywhere in the EU plus the European
Economic Area (Iceland, Liechtenstein and Norway) and Switzerland. UK citizens’
existing EHICs will continue to be accepted by EU countries until they expire,
after which they can apply for a new Global Health Insurance Card, although
details have yet to be announced.
With a handful of exceptions irrelevant to business travel, EHICs
belonging to UK citizens and the replacement GHIC will be invalid in the four
EFTA nations.
There is no announcement yet on the validity of EHIC cards
for EU visitors to the UK, but it seems sensible to assume there will be
reciprocal rights.
Additional Bureaucracy for Drivers
International driving permits: The UK government had warned its citizens they could be
required to carry International Driving Permits in addition to driving licenses
in some EEA countries (the EU plus Norway, Liechtenstein and Iceland). That situation
has been avoided unless the driver only has an old-fashioned paper driving
license or it was issued in Gibraltar, Guernsey, Jersey or the Isle of Man.
Green cards: UK drivers will need to carry a “green card” to prove they
have motor insurance cover when driving through Europe. A green card will not
be needed for EU drivers in the UK.
What’s Not Clear Yet
Potential economic impact on business travel volumes and costs: In normal times, there is a clear correlation between growth
or contraction in gross domestic product and business travel volumes. The UK’s
Institute for Fiscal Studies has estimated that leaving the EU Single Market
and Customs Union at the end of the transition period with a trade deal will
hit GDP by 2.1 percent in 2021. Leaving without a deal would have weakened
growth by an additional 0.5-1.0 percent.
However, business travel is at record low levels because of
coronavirus, so any additional depressive effect caused by Brexit may be hard
to discern. The situation could become more evident as global business travel
begins to recover.
Also to be seen is whether added complexities and
restrictions will inhibit business travel between the UK and EU. There could be
a shift to more long-haul travel as UK businesses are forced to seek growth
beyond Europe. If that happens, costs per trip are likely to rise owing to
longer flights and more nights away.
Personal data transfers: Now the transition period has ended, the EU is taking six
months to assess whether the UK’s data privacy rules and processes are
adequately aligned with EU standards. If they are found wanting, then the same
problems could arise as currently trouble the transfer of personal data about
travelers from the EEA to the US. “As a
sensible precaution before and during this six month period, it is recommended
that you work with EEA organizations who transfer personal data to you to put
in place alternative transfer mechanisms to safeguard against any interruption
to the free flow of EU to UK personal data,” said the UK
government.
Reservations
systems legislation: Could the laws
governing global distribution systems change in the UK? The EU operates a code
of conduct for computerized reservations systems which, for example, places
restrictions on how GDS displays can be biased. The trade agreement specifies
the right for the UK to set its own rules on reservation systems.