Business travel between the European Union and its former member state the
United Kingdom is set to become significantly more complicated from 1 January.
The UK left the EU on 31 December 2019 but little changed in the transition
period that runs to 31 December 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 minimise friction and paperwork for business travel to and
from the EU. Previously, travel to the EU required little thought around entry
requirements and permissions. Travellers 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 organisations’ 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 Europe’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 travellers: 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. Passports 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 travellers 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 travelling 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 recognised 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 and the passport must not be valid for more than ten years. 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 1 October 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 authorisation 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 travellers 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 1 January 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.