Technical Guidance

When the transition period comes to an end on 1 January 2021, the UK will no longer be subject to the EU Common Fisheries Policy and, therefore, certain aspects of the Fisheries Management Agreement 2012 will no longer be relevant. The need to review existing Fisheries Management Agreements between the UK and the Crown Dependencies has been acknowledged in the UK’s Fisheries White Paper and the Isle of Man is in discussions with the UK on this matter.

During the transition period, there will be no change to the access rights of Manx vessels to fish in UK waters. The provisions of the London Fisheries Convention 1964 have been preserved via a Note Verbale for the duration of the transition period. At present it is unclear what access arrangements will be in place for Manx vessels fishing in EU waters or EU vessels fishing in Manx waters beyond the end of the transition period.

To ensure continued trade with the EU, it will be essential for all Isle of Man fisheries processors to comply with the EU requirements for food marketing and labelling. Information on this can be found here. 

The Isle of Man is working closely with the UK on the development of IT systems to facilitate ongoing trade including Catch Certificates which will be necessary for the export and import of certain fisheries products to and from the EU post-Brexit.

For more information please visit http://www.gov.im/iomfisherieseuexit or contact fisheries@gov.im

This page outlines what plant breeders and businesses that trade in seeds and propagating material with the EU will need to do to apply for plant variety rights and marker plant reproductive material, seeds and other propagating material from 1 January 2021.

The Isle of Man has legislation in place to protect growers who might wish to obtain intellectual property rights in respect of plant varieties.

This page provides links to all things relating to Import, Export and Customs for business in the United Kingdom.

For Isle of Man specific advice visit Isle of Man Customs and Excise website.

This guidance relates to a specialised area of trade, which businesses on the Island have very little involvement with. As the page makes clear, these goods will require licences in order to be traded with the EU.

For individuals, for example someone moving firearms across borders in order to attend shooting competitions, the current system of temporary export of firearms used for the rest of the world will extend to include EU countries.

Any individual using this will also need to confirm that the destination country will permit re-export to allow them to bring the firearm back to the Island after the competition.

This guidance sets out how businesses and individuals can trade in plants and plant products with countries within and outside the EU from 1 January 2021. The Isle of Man does not currently export any materials that would have been part of the EU plant passport regime, as such, the Isle of Man will not be affected by changes in the way these goods are exported to the EU.

In respect of imports of plants and plant products from the EU, this guidance outlines the UK’s intended approach and the Isle of Man will work with the UK to ensure a joined up approach between our jurisdictions.

Exporting animals and animal products: In order to transport animals and animal products from the UK and Isle of Man from 1 January 2021, you will need an Export Health Certificate (EHC), and to get your goods checked at border control posts (BCP) in the first European country that they arrive to.

Importing animals and animal products:  From 1 January 2021, the UK and Isle of Man will no longer have access to the EU’s import system TRACES (Trade Control and Expert Systems), instead you will need to use the UK’s new Import of products, animals, food and feed system (IPAFFS). Health certificates and other documentation are being reviews and further guidance will follow.

Importers would be required to notify the UK (or Isle of Man if appropriate) authorities using the new import system and would be directed to an existing UK (Border Control Post) BCP where relevant checks would take place.

Live animal imports to the Isle of Man direct from third Countries will continue to be prohibited.

Importers of high risk food from the EU would be required to notify the UK Food Standards Agency (FSA) of all imports, using the new import notification system. Notifications would be made electronically in advance and would be managed by the FSA. Further details relating to this system are due to be released by the FSA.

High risk foods imported from third countries would need to be notified as above and would then be directed to an existing UK BIP where relevant checks would take place. It is not envisaged that high risk foods and animal feed will be permitted to be imported directly to the Isle of Man.

The Isle of Man is discussing how the import and export of hazardous chemicals will be regulated from 1 January 2021.

• The Export of Objects of Cultural Interest (Control) Order 2003 (as applied in the Island by the Export of Goods Etc. (Control) (Application) Order 2004); and
• The Customs and Excise Acts (Dealing in Cultural Objects) (Application) Order 2004, which applied a UK Act, the Dealing in Cultural Objects (Offences) Act 2003, but only those provisions concerned with import and export offences.

Health marks on meat, fish and dairy products

This notice explains what health and identification marks on meat, fish and dairy products will look like in a no-deal exit.

Premises on the Isle of Man producing meat, fish or dairy products for export off-Island must be approved under Regulation (EC) 853/2004 which is enforced on the Island by DEFA.

All produce from approved premises must carry the appropriate health or identification mark. Health or identification marks are currently oval in shape and state that it is produced in the EU, that it is from the Isle of Man, and carries a unique approval number.

After the UK’s withdrawal from the EU, the UK (and the Isle of Man) will no longer be entitled to use the EU abbreviation. In order to maintain trade with EU countries, any new health mark would have to meet EU ‘third country requirements’ and as a minimum the EU abbreviation would have to be removed.

The Department for Environment Food and Agriculture has published guidance on a new set Health and identification marks that will be used after 1 January 2021. These can be found in this document.

Food Labelling

Labelling provisions are set out primarily in the EU Regulation 1169/2011, certain provisions of which are enforced in the Isle of Man by the Food Information Regulations 2014. Compositional standards for certain foods (e.g. honey, chocolate products, jam) are also set out in corresponding Isle of Man Regulations.

After exit, EU based provisions will be rolled over as part of the European Union and Trade Act 2019 and specific national rules would remain unchanged.

Use of the term EU in origin labelling would no longer be correct for food/ingredients from UK or the Isle of Man. Products sold in the EU would need to provide an address for the responsible business or importer into the EU, in one of the remaining EU member states. An Isle of Man address alone will not be sufficient for products produced in the Isle of Man and sold in the EU.

Natural Mineral Waters currently recognised in the UK, as stipulated in EU Directive 2009/54/EC, may no longer be accepted in the EU and producers wishing to export natural mineral water to the EU may need to be prepared to apply for recognition of their water through an EU member state. Currently there are no businesses based on the Isle of Man which export natural mineral water into the EU market. In the future, new legislation may be required to facilitate this, should demand arise.

Trading and Labelling Organic Food

Currently, there are no businesses based on the Isle of Man which export organic food into the EU market.

Post-exit, new legislation may be required to facilitate this should demand arise.

Protecting geographical food and drink names

This notice informs UK producers about what might happen to Geographical Indication (GI) protection, and action they may wish to consider taking, should the UK leave the EU without a deal.

Applications for GI protection in respect of Manx produce are currently made through the UK, to the European Commission. There are two Manx GIs at present, for Isle of Man Queen Scallops and Manx Loaghtan Lamb.

Currently the UK is seeking to ensure the UK GIs (including those in the IOM) registered under current EU schemes will continue to enjoy protections in the EU, however, this remains subject to negotiations. The UK is also working towards creating its own register and Scheme for future protection.

In the event of a no deal Brexit, the IOM will not automatically be able to seek registration of any new GIs under the UK Scheme. It is intended, however, that inclusion of the IOM and other Crown Dependencies in the Scheme could be progressed through legislation at some point in the future. 

Should the EU not continue to protect UK (and Isle of Man) GI products after a no deal Brexit. You’ll need to be prepared to apply to the European Commission to regain:

• EU protection
• the right to use the EU GI logo

You’ll need to show that your product is protected as a GI in the UK. DEFA will support Isle of Man Companies should this scenario occur.

Exporting GM food and animal feed products

After the UK’s withdrawal from the EU, any UK based businesses that are currently authorised to export GM food and feed will have to establish in the EU or have a representative who is established in the EU in order to be allowed to continue trading with EU countries.

There are currently no businesses in the Isle of Man exporting GM food or feed.

Placing manufactured goods on the UK market

The webpage advises that if you have already placed your goods on the UK market before 31 December 2019, you do not need to do anything.

Many Isle of Man based companies export into the UK, and have needed to meet UK and EU standards to do this. It continues to be the case that Manx manufactures will have to conform to the standards of the markets which they export into.

Manufactures should check, however, which conformity marking they will need to use from 1 January 2021.

The UK currently follows EU rules and regulations under this area of company law and reflects these mainly through its Companies Act 2006. From 1 January 2021, the UK intends to maintain the same regulatory regime as far as possible, however, the fact that the UK will no longer be a Member State means that UK companies operating in the EU and EU companies operating in the UK (and their advisers) will need to be aware of the possible changes and impacts.

The Isle of Man is already a third country for these purposes (i.e. in relation to any Isle of Man businesses operating in EU Member States and vice versa) and so is unlikely to be directly affected by changes which would arise.

Isle of Man professionals including CSPs/TSPs in particular may wish to take note of this notice, however, in the context of any UK and/or business structures that they service.

Placing manufactured goods on the EU market

It advises that the results of conformity assessments carried out by UK conformity assessment bodies will no longer be recognised by the EU from 1 January 2021. This is the case even if the assessment was carried out before the UK left the EU, unless the product has already been placed on the market in an EU country.

If you are placing a good on the market that needs third-party assessment you will need to use an EU-recognised conformity assessment body.

The obligation on an Island company wishing to export goods into the EU would be the same as for any UK company. Island businesses wishing to export into the EU which use UK based agents for exports to the EU will need to find a new or additional agent based inside the EU.

There are likely to be very few businesses affected by this. The UK is the Island's largest export market and this would be unaffected.

The UK Wireless Telegraphy Act 2006 is extended to the Island by statutory instrument. Ofcom is therefore responsible for the licensing of spectrum in the Isle of Man and awards spectrum in consultation with the Commission. The UK's intention is that the way Ofcom carries out its functions in relation to spectrum would be essentially unchanged.

• the European satellite navigation programmes, Galileo and European Geostationary Navigation - Overlay Service (EGNOS)
• the Copernicus Earth Observation space programme
• the EU Space Surveillance and Tracking (EUSST) programme.

The Isle of Man was not a member of the EU, yet, has over a number of years developed a small but important space industry.

Auditing & 
Accounting

This webpage explains how companies incorporated in the UK, or where the parent company is incorporated in the UK, can comply with UK accounting and reporting requirements from 1 January 2021.

The Isle of Man is, and has been, a third country in relation to the EU for purposes of accounting regulation and audit, therefore, the principal requirements for accounting and audit (including recognition of qualifications) are governed by our own Companies Acts.

An individual is qualified for appointment as auditor of a company in the Isle of Man if the individual is a member of a recognised accountancy body. Section 14F(1)  of the Companies Act 1982 sets out the recognised accountancy bodies as

(a) the Institute of Chartered Accountants in England and Wales;
(b) the Institute of Chartered Accountants of Scotland;
(c) the Institute of Chartered Accountants in Ireland;
(d) the Association of Chartered Certified Accountants;

Furthermore, the Isle of Man Financial Services Authority (‘IOMFSA’) has the ability, under section 14E of that Act, to authorise a person as an auditor, irrespective of the qualifications listed in 14F. This power is used in only very limited circumstances.

In relation to a specific category of Isle of Man incorporated company (any that are admitted to trade on a European Union or UK “regulated market”) may undertake audit work. The IOMFSA website contains more details and a helpful flowchart.

Isle of Man accounting and other professionals including CSPs/TSPs in particular may wish to take stock of the guidance outlined on these webpages, however, in the context of any UK or EU work or structures they have an interest in.

VAT for Business

This webpage sign posts individuals and organisations to resources relevant to VAT following 1 January 2021.

The Isle of Man will not treat VAT any differently from the UK from 1 January 2021, maintaining its commitment to the Customs & Excise Agreement.

For more information on VAT, please visit see the Business Checklist following the UK’s Exit from the EU.

There will be no change for British and Irish Nationals living within the Common Travel Area.

Manx Employment rights ultimately derive from our own domestic legislation, a summary can be found here. There will be no direct effects on the rights of persons working on the Island as a result of the end of the transition period.

Manx workers working in EU countries should check their position post-transition though it should be the case that people working in a particular country would continue to be protected under the employment law of that country.

This guidance is, however, not of direct relevance to the Isle of Man.

The Island upholds its own standards in respect of environmental issues.

The EU's climate change regulations did not apply to the Isle of Man, though the Island has ratified the Kyoto Protocol on climate change.

From 1 January 2021 there is not expected to be an impact on the Isle of Man, due to the UKs departure, in relation to climate change.

The Isle of Man Government will work with the UK to ensure continuity of our current approach, and if necessary ensure a united approach to any new UK equivalent.

These conventions do not apply directly to the Isle of Man and no change is anticipated for the Island in this area.

EU countries will not be allowed to export waste for disposal, or export mixed municipal waste for recovery, to the UK under EU law. Import of controlled (household, commercial and industrial) waste into the Isle of Man is prohibited in accordance with the Public Health Act 1990. 

There is currently no manufacturing of Biocidal products on the Isle of Man for domestic use or for export, but organisations do use pesticides.

Currently the UK's Health and Safety Executive (HSE) authorises Biocidal products for the UK market on behalf of the Secretary of State and the devolved administrations.

There is currently no manufacturing of Biocidal products on the Isle of Man for domestic use or for export, but organisations do use pesticides.

Currently the UK's Health and Safety Executive (HSE) authorises pesticide products for the UK market on behalf of the Secretary of State and the devolved administrations.

The Isle of Man Interconnector is a Distribution Interconnector that is fully embedded within the Great Britain network. Because it is connected to Great Britain and not an EU country, trading over the Interconnector will continue with Great Britain 'business-as-usual'.

The Isle of Man has been working closely with colleagues in the Department of Health and Social Care in the UK to ensure that the supply of medicines and medical devices can continue as normal after 1 January 2021. The Isle of Man is part of the UK NHS supply chain for medicines and medical devices, and therefore the Island is included within all UK contingency planning in this area.

For specific information regarding, blood and blood product safety; medicines, medical devices and clinical trials; and quality and safety of organs, tissues and cells, please visit our Are You Ready For 2021 Guide.

The Isle of Man is working closely with the UK to ensure access to the new systems and this will prevent any disruption in the supply of veterinary medicines to the Island. Additionally, DEFA has updated Isle of Man legislation in respect of veterinary medicine to ensure that we are in alignment with the UK ahead of 1 January 2021.

This webpage outlines how sanctions will operate from 1 January 2021.

The Isle of Man Government policy in relation to sanctions is to maintain lists of those affected by financial sanctions so that they correspond to those adopted in the United Kingdom.

Currently the Island implements and enforces sanctions regimes agreed by the UN Security Council and applies EU Regulations in relation to sanctions using the European Communities (Isle of Man) Act 1973 to ensure Island law corresponds with UK law.

It is the intention of the Isle of Man Government to make domestic legislation to ensure that the Isle of Man Government maintains the implementation of international sanctions measures in the Isle of Man in line with such measures as have effect in the United Kingdom.

Sanctions Guidance will be updated in due course on the Customs and Excise website.

EU state aid rules only had a limited application in the Isle of Man, and any notifications which were required in respect of Isle of Man aid were made via the UK.

The Isle of Man government is working closely with the UK to confirm our obligations from 1 January 2021.

From 1 January 2021 EU trade agreements will not apply to the UK. The UK is seeking to reproduce the effects of existing EU agreements for when they no longer apply to the UK. This will ensure continuity of trading arrangements for UK businesses.

These new agreements will replicate existing EU agreements and the same preferential effects with third countries as far as possible. These "continuity agreements" will replicate the existing EU agreements' territorial scope, and they will therefore apply to the Isle of Man to the same limited extent as the existing EU trade agreements.

If the UK does not reproduce the effects of an existing EU agreement, trade with other World Trade Organization (WTO) members will take place on WTO terms from 1 January 2021.

The Isle of Man has its own independent supervisory authority and legislative regime, and although the implementing legislation is similar to the UK, the legal framework is established for all controllers and processors in the Isle of Man independently of the UK and directly imports the GDPR into domestic law. However, whilst personal data could continue to be transferred to the UK from the Isle of Man (as a jurisdiction with a current adequacy decision), additional safeguards may be required in the short term, to continue to allow that free flow of data to a jurisdiction which is neither a member state, nor a third country with adequacy.

No major change in envisaged for the operations of the Isle of Man's Civil Aviation Authority or the Island's Aircraft Registry from 1 January 2021. Both bodies seek to ensure compliance with International Civil Aviation Organisation (ICAO) Standards and Recommended Practices (SARPs). The UK's ratification of the Chicago Convention extends to include the Isle of Man and is not impacted by the UK's withdrawal.

The IOM Civil Aviation Authority can currently apply EU aviation legislation into Isle of Man law and this is based on the proactive incorporation of 'best practice' and contemporary international legislation. This is an approach designed to put the Island at the forefront of regulation, to support a thriving business climate and to promote the Island as an Aviation Centre of Excellence. The power to introduce EU and other international legislation into effect on the Island will not be affected by the UK's withdrawal from the EU.

The Isle of Man has a significant aerospace design, manufacturing and aircraft maintenance cluster which collectively has customers globally (including the UK and EU), and already supplies goods and services to the standards certified and determined by those under which their customers operate (whether or not EU or UK specified). Businesses in these sectors will need to ensure they can adapt to any changes in customer requirements as a result of changes in the corresponding oversight bodies.

Aviation security arrangements in the Isle of Man are unlikely to be changed as a result of the UK's withdrawal from the EU.

Consumers should not see any immediate differences in protection between UK law and that of EU Member States as UK and EU law is highly aligned. However, consumers should always check the terms of consumer protection offered by the seller and the Member State the seller is located in.

Most large and reputable online traders actually provide a level of consumer service that exceeds the minimum standards under EU law. Given that businesses will still want to trade into markets that become cross-border it would be unlikely that consumers will see any differences.

There may be added complexity in resolving problems if things do go wrong in cross-border transactions as there will no longer be reciprocal obligations on the UK or EU countries to investigate breaches of consumer laws or take forward enforcement actions.

Regional Development Funds; England; 
Scotland; Wales; 
Northern Ireland

Funding is not currently available for individuals and organisations based in the Isle of Man. It is not envisaged that there will be any implications for the Isle of Man from 1 January 2021.

These programmes are not currently open to organisations in the Isle of Man, therefore there will be no implication for individuals or organisations from 1 January 2021.

The provisions relating to mergers should not have any impact on the Island.

The provisions relating to anti-competitive activity are relevant, in theory, to any local business trading into the UK. In practice however because of our scale it seems highly unlikely that an Isle of Man business could be capable of producing a measurable distortion of a UK market; let alone an EU market.