Policy paper

Goods market access: enforcement

Updated 17 November 2020

This was published under the 2019 to 2022 Johnson Conservative government

What are we going to do?

The UKIM Bill establishes a system in which compliance with requirements to sell a given product in one part of the UK enables that product to be sold in other parts of the UK. The Bill specifies what set of regulations (English, Scottish, Welsh or Northern Ireland regulations) should apply for the purposes of regulatory compliance, which provides opportunities for traders and will be taken into account by regulators as they perform their normal functions.

Regulatory enforcement in this context is about ensuring that the new principles created by UKIM are given effect, that they can be operationalised and that there is an appropriate balance between the interests of consumers, businesses and regulators.

Part 1 of the Bill does not introduce new enforcement bodies, powers or penalties but instead relies on enforcement provisions in existing goods regulation to ensure that enforcement of regulatory compliance takes account of the opportunities offered by the market access principles of mutual recognition and non-discrimination, and in so doing, gives effect to those principles.

Traders do not have to rely on mutual recognition (or non-discrimination) – they can choose to sell goods that comply with the regulations of the part of the UK in which they are sold. If they do choose to rely on mutual recognition (or non-discrimination), the aim is for this to be evidenced by traders and recognised by regulators in an effective and efficient way.

How are we going to do it?

Although the existing enforcement regime will be familiar, we want to ensure all traders are familiar with the concept of the Bill.

We have therefore included powers to issue statutory guidance. This guidance could cover how the existing enforcement provisions in goods regulation apply to the market access principles in Part I of the Bill, including how this affects the roles and responsibilities of regulators and what it means for traders in terms of regulatory compliance.

We will provide guidance for regulators on how to check whether a good qualifies for mutual recognition. This will be done by determining where the product was produced or imported, should they need to do so as part of their existing work.

This guidance will also provide further details on how traders can demonstrate that their goods qualify for mutual recognition and what existing documentation they can rely on to prove this. This will look to make use of existing documentation to avoid placing additional burdens on traders. For example, for goods from outside the UK, existing paperwork should specify the port of entry, which could evidence where a product was imported.

As the location of production is a new legal concept in the Bill, guidance will set out how traders can demonstrate this through documentation.

The UK Internal Market Bill provides the certainty to businesses, investors, and consumers that internal trade will continue seamlessly after the end of the transition period. This guidance will support traders and regulators to understand and make use of the market access principles in the Bill.

Background

Regulators monitor compliance with both UK wide legislation and devolved legislation across the UK. Because of the mutual recognition principle, regulators may in future encounter products which do not seem to comply with the requirements which apply in one nation of the UK. Regulators will therefore need to identify whether goods may qualify for mutual recognition which allows goods to be sold in that nation if they have been lawfully produced in or imported into another nation whose requirements they do meet.

Who will the guidance be issued to and what will it say?

The guidance could, for example, include information on what traders can rely upon to show that goods are compliant if they wish to rely upon mutual recognition, which regulatory rules apply and how to find them, what existing evidence might be suitable to substantiate reliance on market access principles, and how the regulator of those goods might be expected to enforce the compliance requirements in their area.

The Secretary of State has the power to issue guidance on any matter relating to the market access principles to the right audience. This is important so that the government can address issues through guidance as and when they arise.

We will assist regulators and traders in understanding the principles.

When and where will the guidance be published?

Following the Bill receiving Royal Assent, any guidance will be published on the GOV.UK website as soon as possible for stakeholders to understand and make use of the market access principles in the Bill.

We will engage with all relevant stakeholders, including devolved administrations, to ensure that any guidance is fit for purpose and disseminated appropriately to enable it to be effectively utilised by traders and regulators.

Who will be responsible for enforcing the UK internal market for goods?

The UK already has an effective enforcement regime in place which ensures that goods on the market in a territory comply with the relevant regulatory requirements.

We will use existing regulators and their powers contained in existing goods legislation to give effect to mutual recognition in the UK internal market.

Existing regulators have different responsibilities, for example, Local Authority Trading Standards may come across goods being sold under the mutual recognition principle as part of their work.

We have looked to strike an appropriate balance between the interests of consumers, businesses and regulators, and we will therefore be drawing on the existing enforcement regime for goods which is already familiar to those dealing in goods governed by Part I of the Bill.

Will additional labelling be required?

In order to avoid placing additional burdens on traders, the Bill does not require traders to use particular methods, or labelling, to demonstrate that their goods benefit from the mutual recognition principle.

Any guidance would indicate the types of evidence a trader may wish to use to demonstrate their goods benefit from the principle. The intention is for traders to be able to make use of existing documentation.