The Thoroughbred Industries Brexit Steering Group has today welcomed a change to customs arrangements making the movement of horses into Britain for racing and breeding simpler.

The change, which will serve to facilitate international competition and movement, follows significant representations by the Thoroughbred Industries Brexit Steering Group to Her Majesty鈥檚 Revenue and Customs (HMRC).

Previously, in the majority of cases, thoroughbreds entering Great Britain on a temporary basis had to be accompanied by a financial guarantee, equivalent to 20% of its value. While this guarantee would be refunded once the thoroughbred had returned home, this was posing significant cashflow challenges and acting as an inhibitor for international participation in British thoroughbred racing and breeding.

A new, industry-specific, facilitation has now been agreed by HMRC to the Temporary Admission procedure. This allows intermediaries (such as a transporter or shipper) to apply for an authorisation enabling them to move thoroughbreds under multiple ownerships, without the need for a financial guarantee to be provided on these movements.

This change follows facilitations which were enacted by the Irish Revenue for movements of thoroughbreds into Ireland for racing purposes earlier this year.

Julian Richmond-Watson, Chair of the Thoroughbred Industries Steering Group, said:

鈥淭he Thoroughbred Industries Brexit Steering Group has been engaging and offering proactive solutions on this matter, which has been causing significant industry concern, in discussions with HM Treasury and HMRC.

鈥淲e are therefore very grateful to HMRC for this industry-specific facilitation which recognises both the financial value and importance of international movement of thoroughbreds, and the challenges which the requirement for a guarantee was posing to owners and breeders looking to run their horses or breed them in Great Britain.鈥�

Although over eighteen months have now passed since the UK鈥檚 withdrawal from the European Union, the Thoroughbred Industries Brexit Steering Group has continued to meet regularly and is working on the ongoing challenges and opportunities created.

The Group鈥檚 overall objective is to secure a settled future framework in which there are reduced administrative burdens on the movement of high-health and welfare thoroughbreds, underpinned by biosecurity and facilitated by digital technology. This will enhance trade, traceability and welfare outcomes, while demonstrating international leadership for the UK and British thoroughbred industry.

Julian Richmond-Watson said:

鈥淭here remain significant challenges around the practicalities of post-Brexit thoroughbred movement, which while our industry has adapted, can be improved through Government working with industry on solutions which are clearly available.

鈥淲e are committed to improving the situation and delivering a lasting settlement under which movement of thoroughbreds for international competition and breeding, underpinned by the highest standards of equine health and welfare, is realised.鈥�

For further information on the ongoing work of the Thoroughbred Industries Brexit Steering Group, please visit the BHA Brexit webpage.

Notes to editors:

1. The HMRC guidance on the Temporary Admission Procedure can be found聽.

The Thoroughbred Industries Brexit Steering Group has today welcomed the publication of a report by the House of Commons Environment, Food and Rural Affairs Select Committee that calls on the UK Government to support the British thoroughbred sector through securing a replacement to the Tripartite Agreement and engaging with the industry on its digital solutions to support expedited thoroughbred movement.

Entitled , the cross-party report also makes clear the need for Government to do more to investigate the causes and scale of illegal horse movements, which can also be tackled through embracing the implementation of a digital identification system for horses.

Industry figures presented evidence to the Select Committee earlier this year and in today鈥檚 report, it is recommended that 鈥渢he Government should work with the EU to formulate an agreement on 鈥榟igh health status鈥� horses as quickly as possible鈥�, with British, Irish and French racing and breeding industry leaders in agreement that such a move would benefit all parties.

The report adds that the Government should 鈥渆mbrace (digital) systems or guarantee interoperability with them鈥�, and recognises the thoroughbred industry already has in place the Weatherbys e-passport system, which is capable of acting as a lifetime聽digital聽document, encompassing identification,聽vaccination,聽medical records, movement and ownership information that could interact with any new government system.

Finally, the report goes on to say that Defra should 鈥渋nvestigate non-compliant horse movements and quantify the scale and causes of the practice鈥�, with work to take place in collaboration with organisations such as World Horse Welfare and others with intelligence and expertise in the field.

Ross Hamilton, BHA Head of Public Affairs, who provided oral evidence to the Committee, said: 聽鈥淭he Thoroughbred Industries Brexit Steering Group welcomes the publication of this important report. We are very grateful to the Select Committee for its careful consideration of the evidence presented by the industry and the clear recommendations for Government, with whom we continue to work closely on improving the arrangements currently in place for thoroughbred movement.

鈥淭he implementation of a high health status for the expedited movement of thoroughbreds for racing and breeding purposes, utilising the digital solutions such as the Weatherbys鈥� E-Passport already in place in our industry, is an objective which has support across the British and European thoroughbred sector.

鈥淚t will help support our industry鈥檚 clear aim to raise animal welfare and health standards further, improve traceability of thoroughbreds throughout their lives, and help ensure that Britain鈥檚 world-leading position in the international industry, generating hundreds of millions of pounds in trade annually for the UK economy, can be boosted.鈥�

Notes to editors:

1. The聽House of Commons Environment, Food and Rural Affairs Select Committee report can be read .

The submission focuses on the economic consequences for racing and jobs in rural areas, the lack of evidence in support of the intervention and the disproportionate impact on people who bet safely and lawfully. The BHA, the Racecourse Association (RCA) and The Horsemen鈥檚 Group (HG) discussed the industry鈥檚 response at a meeting last week and believe there could be a disastrous impact on racing鈥檚 finances and its recovery from COVID-19.

Racing supports the government鈥檚 review of the 2005 Gambling Act and its intention to address the potential for harm. It agrees that gambling laws should be fit for the digital age as well as recognise the economic contribution made by the betting industry and associated industries such as horseracing. The BHA鈥檚 Members believe this is the appropriate way to consider a significant intervention such as a new affordability threshold and that Parliamentarians should examine any resulting proposals.

Industry executives also briefed Members on constructive discussions with government over the Winter Survival Fund, which includes a potential 拢40 million of loans to racing from the UK government. The Fixtures and Funding Group, which includes representatives from the BHA, racecourses and horsemen, is working on a package of proposals for May onwards that include the fixture list and minimum prize money values. Proposals for Levy Board funding of the fixture list in May and June will be considered at its meeting on 22^nd February. It is expected the fixture list will be agreed and published before the end of February.

The Members reviewed work done in recent months on the financial return to racing from the Horserace Betting Levy, which was carried out by the Levy Steering Group set up in October. It examined the revenues generated by betting on the sport, including media rights payments, as well as historic trends and the potential for future growth amidst the shift to online betting, which has been accelerated by COVID-19.

Members agreed that executives will progress discussions with the betting industry to identify potential reforms that could grow revenues on racing for all parties, in line with the sport鈥檚 commitment to responsible gambling. There is a clear willingness on racing鈥檚 part to consider innovations that will make horseracing an even more attractive proposition to betting customers. 聽In these discussions, industry executives will put forward proposals for urgent reform of the Levy based on the turnover from betting on racing, including bets on overseas racing.

With the possibility of a damaging regulatory intervention on affordability, as well as the impact of betting shop closures and the absence of spectators, racing鈥檚 leaders see the need to adopt a flexible and collaborative approach. Executives are ready to develop proposals in dialogue with betting operators, whilst providing the government with fresh evidence of market changes that have taken place since 2017, to demonstrate the case for reform.

Racing鈥檚 leaders recognise the need to engage with government in 2021 on a wide range of issues, including COVID-19, the Gambling Act review, Levy Reform and Brexit. They emphasised how the 拢4 billion racing industry can play its part in wider economic recovery, especially in rural areas of England, Scotland and Wales. Racing is also working with government to promote Britain to the world for international trade and investment.

Racing continues to engage with government and Devolved Administrations over the return of spectators to sport, and the relaxation of restrictions which currently exclude owners and limit participation to professionals. All those in the industry are strongly encouraged to continue to abide by government and industry guidelines on social distancing and other measures, whether at meetings behind closed doors, in their workplace or away from work.

Julie Harrington, Chief Executive of the BHA, said:

鈥淎 majority of our work, and of leaders across the industry, is currently focused on a range of financial issues that are vital to racing recovering from the impact of COVID. We have to plan for a range of possibilities and are working with government and other sports on the return of spectators and owners as soon as that is possible. We thank our owners for their patience and continued support amidst the current uncertainty鈥�.

David Armstrong, Chief Executive of the RCA, said:

鈥淩acing is approaching the most critical period since the beginning of the pandemic. With external regulatory issues facing us in the form of the Affordability Review, the Gambling Act Review and Brexit plus no immediate prospect of racegoers returning, the next six months will be the most crucial period on our Recovery journey. The support from the Members Committee at this time is very welcome – the industry must pull together in these challenging times鈥�.

Charlie Liverton, Chief Executive of the Racehorse Owners Association (ROA), said:

“The effect of COVID-19 continues to impact British Racing, both on and off the racecourse. The potential ramifications of Government reviews including the Gambling Act and the Affordability Review are concerning, and the support from the Members Committee in tackling these challenges is very welcome. Owners continue to support the industry week in, week out, and we extend our sincere thanks once again for their contributions. The return of owners to the racecourse remains a key objective, working with the RCA and BHA to open up racecourses to racegoers as soon as regulations allow.鈥�

As鈥痶he British and European Thoroughbred鈥痠ndustries鈥痑re highly鈥痠ntegrated,鈥痠t鈥痠s a positive step that鈥痑n鈥痑greement鈥痟as聽been鈥痳eached. We look forward to聽future trade and upholding聽horse welfare聽with our European partners.

As the transition period ends聽there will still聽be some significant change to the movement of horses from 1 January and some disruption as聽new arrangements come in to place. We can confirm that聽the EU has recognised the General Stud Book. This allows racing and breeding stock聽to be treated as 鈥渞egistered鈥� horses from 1 January, which is positive news.

Third country animal disease listing has also been granted. This defines聽the UK鈥檚 overarching status relating to animal health and will allow animal movement to and from the EU.

These confirmations recognise the high health, identification, and traceability standards聽the Stud Book and other industry measures help to facilitate and will mean there are fewer isolation, residency,聽and health requirements for thoroughbreds.

We also welcome the news of UK and Irish mutual recognition of training for competence to transport animals but recognise that some time is needed after 1 January for transporters to obtain authorisations for their people, business and vehicles to聽allow these GB transporters to move within the EU.

Therefore it remains the advice of the group not to try and move horses for聽at least聽the first two聽weeks of January unless absolutely necessary. This will allow time for agreements to聽be ratified and the new processes to be communicated to relevant officials here and聽in the EU. Industry members are advised to engage the services of a shipping agent,聽transporter and/or customs agent. Further specific advice has also been received today from the UK government relating to certain ports (see below).

The Steering Group has previously issued guidance on the likely new arrangements from 1 January. Although this industry guidance remains subject to change, participants are still urged to familiarise themselves with this information, and with the information available from the .

The easiest way to do this is via the Brexit webpage on鈥�britishhorseracing.com, where there are links to the latest government guidance as well as FAQs.聽This will be updated once we have information from the appropriate authorities.

Additionally, an e-mail address for specific queries on Brexit has been set up to assist as we approach the end of the transition period via brexit@weatherbys.co.uk.

Julian Richmond Watson, Chair of the鈥疶horoughbred Industries Brexit Steering Group, said:

鈥淣ews of a free trade agreement being reached is very welcome to the British horseracing industry, which trades extensively with our European partners. It remains important for our participants to have clarity on the fine detail of moving horses and people from 1 January 2021. We would ask our industry to be patient whilst the detail is worked through.

鈥淭he鈥痭ews that the General Stud Book will be recognised by the EU and that the UK has been listed as a third country聽is鈥痑lso鈥痯ositive,聽but there are鈥痵ome聽important matters on which we are still waiting for confirmation.鈥疻e聽hope that聽an FTA being signed will increase the chances of swift resolution to these outstanding issues. With little time between now聽1 January,聽a period of disruption聽is聽likely.

鈥淓ven though we now have an agreement in principle between the UK and EU鈥痺e want to ensure participants are aware that the process of moving horses will change significantly from鈥痶he end of the transition period.聽It鈥痺ill be more complex administratively and聽is聽likely聽to be聽more expensive.聽As such, we would ask鈥痯articipants鈥痶o ensure鈥痶hey鈥痑re as聽up to date聽as possible with the latest鈥痠ndustry and government鈥痝uidance and seek the聽assistance聽of a horse transport professional if鈥痶hey鈥痑re鈥痯lanning to move horses.

鈥淲e will, of course, continue to聽ask聽Government鈥痑nd other relevant parties for clarity and communicate any鈥痠nformation as soon as we are able to.鈥�

Welcoming the recognition of the General Stud Book,聽Weatherbys聽CEO Russell Ferris said:

鈥淲hilst there are still many matters to resolve as we move towards聽Brexit,聽we are naturally delighted that the聽Weatherbys General Stud Book will continue to be聽recognised聽by the EU from the 1st聽January 2021.

鈥淭he need for mutual recognition of a common, high-health status for thoroughbreds and its Stud Books is of vital importance for the International Thoroughbred industry.

鈥淭he Stud Book listing聽recognises聽the high biosecurity and animal health standards of the British Thoroughbred and whilst unregistered horses are still able to travel, there would have been many more additional steps required聽than聽for registered horses, which would have added unnecessary costs and operational issues.鈥�

In addition to working towards the end of the transition period on 1 January, the聽British聽racing and breeding industries continue to work with relevant parties in advance of the new EU Animal Health Law, which is currently due to be implemented on 21 April 2021. The UK has one of six seats on the EU Task Force for Brexit and the Animal Health Law which works with the EU Commission (DG聽Sante), EU government agencies, Chief Veterinary聽Officers,聽and stakeholders to negotiate聽further聽changes to horse movement to minimise disruption, both from 1 January 2021 and 21 April 2021.

Further information

Specific information regarding movement of equines from the Department for Environment, Food & Rural affairs (Defra):

“In the interest of protecting animal welfare, and with the possibility of traffic disruption in Kent after 1^st January 2021, Defra would strongly advise equine transporters to consider using vehicles with a combined weight of less than 7.5 tonnes, enabling them to proceed to the Short Straits using the Operation Brock contraflow between J8-9 of the M20.

“If you are transporting equines in a vehicle with a combined weight above 7.5 tonnes and there is traffic disruption in Kent, Defra strongly advises against travel and if you do choose to travel you plan your journey carefully, in anticipation of the possibility of delays. These vehicles will not be prioritised to use the Operation Brock contraflow. The animal welfare of equines in transit should be a priority for all equine movements. Make sure that you have the correct authorisations and certifications to transport live animals, find out more .”

With less than seven weeks to go before the transition period expires, there will be significant changes to how horses move between the UK and the EU from 1 January, irrespective of whether a Free Trade Agreement (FTA) is signed.

Whilst British racing is in regular contact with the relevant government departments to gather information and best prepare the industry for Brexit, some details remain to be fully clarified and the new travel arrangements will also be entirely dependent upon any agreement which may be made by the UK government with the EU.

The steering group remains hopeful that any such FTA that is signed will allow the outstanding points of detail to be resolved quickly, but as things stand confirmation on a number of matters is still pending:

• The UK’s status as a third country listing for animal health purposes following the end of the transition period
• Authorisations to allow British transporters to operate within the EU and EU operators to operate in the UK
• Recognition of the General Stud Book, (along with all other Stud Books and Breeding Books of all species), which identifies thoroughbreds and allows their movement as Registered horses.

Even in the event of agreements on these key areas for British racing being confirmed in the coming weeks, the Thoroughbred Industries Brexit Steering Group is of the view that there will be additional friction in moving thoroughbreds through key ports from 1 January, with the potential for initial disruption.

It is therefore advising that industry participants put off moving horses unless it is absolutely necessary within that initial two-week period, and to contact a transporter or shipping/customs agent for further guidance as a matter of priority.

Furthermore, following the confirmation of any FTA the Thoroughbred industry will need to understand the details of any equine health rules under which movements can take place as well as any replacement for the current Tripartite Agreement 鈥� originally made with France and Ireland 鈥� which currently governs Thoroughbred movements between Britain, France and Ireland.

The Chair of the Thoroughbred Industries Steering Group, Julian Richmond Watson said:

鈥淲e know that some people want to make plans for the New Year, but the picture will remain unclear until we know the terms of any new agreements between Britain and the EU.

鈥淓ven if there is an overarching trade deal, we will still need specific arrangements to be agreed covering the movement of thoroughbred horses.

鈥淚f industry members want to avoid the risk of delays or disruption, we advise them not to schedule movements in the first two weeks of 2021.

鈥淥ur message right now is 鈥楽tand By, Change is Coming鈥�. We would ask participants to keep up to date with the latest information regularly via the Brexit page on britishhorseracing.com and await direct communication from their membership body once we know the details.

鈥淲e continue to work closely with Defra and all other relevant UK government departments, who are well-informed about the needs of the racing and breeding industries. We are also in regular contact with our counterparts in Ireland and France and other EU jurisdictions.鈥�