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Month: December 2022

Exporting to the EU- Understanding tariff exemptions

Posted on by fluroltd

It is no exaggeration to say that day to day operations for UK businesses that export to or import from the EU has changed enormously in the last few years. Since the UK’s exit from the EU, the task of moving goods across the border has become more involved and costly for UK exporters.

It is therefore important to know where and how the trade agreement between the UK and EU can save cost for businesses. The tariff exemptions under the UK-EU Trade and Cooperation Agreement (the “TCA”) provide one such cost saving, provided that the TCA’s requirements are met.

Under the TCA, import tariffs will not be charged on goods that are traded between the UK and the EU, so long as goods passing to the EU can be shown to have originated in the UK (or vice versa). Customs checks must still be carried out, but the monetary tariffs can be charged at zero.

It is critical therefore for businesses to know if, under the rules, their goods for export have originated in the UK – known as “originating” products. In some cases this is very straightforward, such as stone extracted from UK quarries or meat from animals born and raised in the UK. Things becomes more complex when a product is manufactured in the UK from multiple components. Some of the raw materials or pre-assembled parts may originate from the UK, others may come from overseas (known as “non-originating” items).

For example, in the automotive industry, car components from abroad might be assembled in the UK to produce a finished vehicle. The rules governing whether any product is originating or non-originating are known as the Rules of Origin (“RoO”). The RoO touch upon every aspect of manufacture and sale of a product, including how to assess origin for packing materials and fuel used in manufacture.  

Typically, an importer is responsible for paying tariffs. Where a business is looking to export a product that contains non-originating elements though, responsibility is flipped so that the exporter is responsible for ensuing compliance with the RoO.

The RoO do include a means by which non-originating products (or their components) can be transformed into originating products and subject to the zero tariff. The main two examples of how this can occur are:

  • Where the product being exported has been sufficiently transformed (for example, by manufacturing process); or
  • Where the value or weight of the non-originating material/parts falls below the threshold specified in the TCA.

As an example, if a non-originating raw material such as steel was manufactured into car parts in the UK, this may qualify as sufficient production to transform the non-originating steel into UK-originating parts.  If car parts were shipped from overseas to the UK for assembly into a vehicle, this might amount to sufficient production depending on the facts. The exporter might also be able to demonstrate that the weight of all non-originating components in the vehicle comprised less than a set amount of the net weight (excluding packaging) of the final vehicle.

This is often between 10% and 50% of the value or net weight of the finished product, depending on the product type. The RoO also include detailed rules for each specific product type, specifying whether certain components, for example screws or insulation wires, might be excluded from any of these calculations.

It is always worth remembering though that tariffs may still be payable under the TCA in certain circumstances even if the RoO are met, for example if the parties have breached customs legislation.

Navigating the RoO can be a daunting task. Blaser Mills Law can provide advice on the application of the RoO and the legal steps UK businesses should take in their commercial contracts to protect themselves when exporting their products to the EU.

For further information or advice please get in touch with Becky on rac@blasermills.co.uk or call 01494 932614.

Catch Me If You Can: Service of Proceedings by NFT

Posted on by fluroltd

In the landmark decision of D’Aloia v Person Unknown & Others [2022] EWHC 1723 (Ch), the English High Court has, for the first time, granted permission for proceedings to be served by non-fungible token (“NFT”).

The case was brought by the victim of a scam who had been conned into transferring cryptocurrency to wallets operated by fraudsters, whose identities were unknown. The claimant sought, amongst other things, permission to effect alternative service of proceedings on the persons unknown by (i) email, which is now considered relatively mainstream and has generally been permitted for a number of decades and (ii) NFT in the form of an ‘airdrop’ into the wallets used to perpetrate the fraud, which would embed the service in the blockchain. 

The Court granted alternative service of the proceedings by email and NFT. In respect of service by NFT, Mr Justice Trower went as far as saying “There can be no objection to it; rather it is likely to lead to a greater prospect of those who are behind the [fraud] being put on notice of the making of this order, and the commencement of these proceedings”.

It remains unsettled whether service by NFT alone would be permissible. Whilst the Court was not asked to consider this issue, Mr Justice Trower did note that “I do not think it is appropriate… to make an order for service by alternative means in circumstances in which it would be sufficient, without serving by email as well.” However, given that in most instances a fraud would have been preceded by some form of correspondence/contact, there will likely be rare instances where a postal address or email address for service is unavailable, even if the identity of those behind the address is unknown.

It is notable that this decision was preceded by a judgment of the New York Court which permitted service of a freezing notice by NFT against an unknown defendant in a case concerning the theft of cryptocurrency.

D’Aloia is one of a number of decisions over the course of the last two years, in which the English High Court has shown a willingness to embrace crypto assets and modernise legal mechanisms established long before the development of this technology to ensure that England remains a key legal centre for disputes of this nature (for example see our articles: Crypto Assets – No Longer a Safe Haven for Fraudsters, Crypto Currencies: Too Volatile to Provide Security).

It will be interesting to see how the use of NFTs in legal proceedings evolves, given the benefits associated with blockchain recognition as referred to the Court in this case. For example, we could foresee a particular benefit in NFTs being incorporated into the electronic signing of Court related documents.

 If you require any further information or advice please get in touch with Nick Scott on nxs@blasermills.co.uk.

High conflict personality divorces are on the rise

Posted on by fluroltd

I was recently discussing the effect of divorce with a close friend of mine who is a GP. I commented on the impact of separation and divorce on a client’s physical well-being and he pointed out that one question found in almost every health insurance application is ‘have you divorced or separated in the last two years?’. He claimed that the link between mental and physical health is indisputable.

Separating and divorcing is traumatic at the best of times. Your relationship is breaking down, your financial stability is threatened, your home might be taken away from you and perhaps most importantly you will also need to consider child arrangements.

Even in an amicable divorce, the consequences are huge but when a divorce involves a high-conflict personality the effects can be devastating. Although it’s convenient to use labels such as narcissistic personality disorder, borderline personality disorder, or coercive control, the impact is often the same.

Some researchers estimate that 15-30% of marriages end due to a high-conflict, and the rest end in a low-conflict divorce.

Managing the process of divorce or separation if one (or both) party has such a personality is challenging. Specific strategies need to be adopted to minimise the impact on both parties and most importantly on the children.

I regularly read articles that suggest that when divorcing a person with a high-conflict personality, the objective of that person is not necessarily the best financial settlement or the best solution for their children. Their wish is often simply to annihilate the other.

This makes managing the process significantly more complex than just dealing with the legal aspects of the relationship breakdown. Whilst not requiring a qualification in psychotherapy, your lawyer needs a full understanding of the impact of a relationship breakdown involving a high-conflict personality.

Joint accounts will be closed without consent, credit cards will be cancelled, and children will be taken away without the others’ consent or alienated. The tactics of an individual with a high-conflict personality are numerous and destructive. All these need to be pre-empted and dealt with effectively.

Understanding the impact of dealing with such a person inevitably makes the process easier for our clients although it is unlikely that it will ever be referred to as easy.

Get in touch with Lucinda

Lucinda Holliday works closely with a team of psychotherapists and counsellors and has extensive experience and training on how to deal with high-conflict personalities in separation/divorce.

Lucinda is also local to Marlow and is located at the Blaser Mills Law office in Liston Court.

For a confidential chat with Lucinda, you can contact her directly on 01494 478 603 or email ljmh@blasermills.co.uk.

What is the probate process and how long does it take?

Posted on by fluroltd

Dealing with the death of a family member or close friend is always difficult for those involved, having to deal with the daunting task of probate doesn’t make the circumstances any easier.

Whether you are appointed as the executor or administrator in the Will there are some steps you will need to follow. Karen Woodison, Partner in the Wills, Trusts & Probate team at Blaser Mills Law outlines key steps in the probate process.

1. Identify if there is a Will
If there is a Will in place, it will tell you who the executors are and who should be dealing with the estate. It will also outline any wishes and who is to benefit from the estate. If there is no Will there is an intestacy. You will need to look at the intestacy rules to figure out who should deal with the estate and those who will benefit from it.

2. Outline the assets and liabilities
Once you have confirmed who is dealing with the estate the next steps will be to gather information on all the assets and liabilities that are left behind by the deceased.

3. Apply for probate
The next step is to apply for probate. This involves completing an Inheritance Tax (IHT) Return and making an application to the probate registry and HMRC.

4. Collect all assets and pay any debt
Once you have obtained the grant of probate you will need to distribute the assets, prior to doing this you will need to settle any liabilities.

5. Distribute the estate
Make sure all of those who are noted in the Will receive their share of the estate. This task may be as simple as transferring money or may require a more complex process when involving land or property.

How long does the probate process take?
Provided there are no complications it usually takes between four to eight weeks to get a grant of probate after you’ve submitted the application. Once granted, the amount of time it takes to complete will depend on the complexity of the estate.

What are the biggest causes of a delayed application?
There can be various reasons why your probate process might be delayed, here are some of the most common:

Missing documents – Some applications are delayed due to missing documents that are required for granting probate. Send out all documents at the same time to reduce the risk of delays.

Missing IHT information – IHT is administered by the HMRC the IHT421 form will need to be sent to process the application.

Missing or tampered Wills – The process can also be delayed if there is a missing Will or one that has been tampered with. Tampering with a will can be seen as fraud.

Although each probate process follows the same general framework, no two probate matters unfold in the same way. In some instances, seeking help from a professional solicitor is the best solution to put your mind at ease.

Get in touch
At Blaser Mills Law we always offer a quality of service and breadth of expertise that allows our clients to face their challenges with confidence. To speak to one of our Wills, Trusts and Probate solicitors about a probate matter please contact Karen on 01494 781362 or email klw@blasermills.co.uk.