Monday, April 19, 2021

New rules and regulations for Art Business - and Artists

I'm trying to catch up on the amount of change in law and regulations impacting on both artists, art organisations and the art market in the last 18 months.

I'm creating new resource pages for:

  • international shipping 
    • rules of origin
    • export licences
  • money laundering regulations for art market participants where a transaction (or series of transactions with the same buyer) exceeds £10,000

Import and export of artwork etc

Since 1st January 2021, 

  • I've had LOTS of detailed queries about HOW to import / export art without falling foul of the new regulations
  • there has been huge traffic to my Art Business Info for Artists in relation to international shipping and the import or export of art (and other created artworks and/or art material)

As at the beginning of January, there wasn't much to go on in terms of what people needed to do post Brexit - so I held off making changes until the situation improved.

I'm now very slowly slogging my way through the HUGE amount of new documentation from HMRC and various government departments which relates to the import / export of art and art materials post 1st January 2021 i.e. post the UK leaving the EU.

My brain hurts! 

rules of origin for art business
View of the new page on Rules of Origin on At Business Info for Artists

To date:

  • I've got one new page up - on "Rules of Origin" 
    • in the SHIP ART section of Art Business Info for Artists
    • it's a dedicated page under International Art Shipping: How to ship / export art
      to other countries
  • I'm working on Export Licences - and when these are required - which will hopefully publish this week.
    • these are required in relation to specific types of art over a specific valuation
I've still got to get my head around the Northern Ireland question and the border in the Irish Sea....

Mandatory Money Laundering Regulations for all Art Market Participants

ALERT!!! Plus I know I need to create a NEW page related to Money Laundering Regulations for Artists (and Art Galleries etc.) in the MONEY section. 

This WILL impact on more than a few artists, selling exhibitions, art societies and art galleries because
  • The art market is a known target for money laundering and is officially regarded by HMRC as "high risk"
  • The EU Fifth Anti-Money Laundering Directive (5AMLD) was enacted into UK law with effect from 10 January 2020 and anti money laundering compliance has NOT BEEN OPTIONAL since 10th of January 2020
  • The new regulations require a LOT of information to be collected and formally recorded and retained in relation to purchasers of artwork valued (as one lot or an accumulation) above the equivalent of £10,000
To be exempt, an artist (or art organisation) must be 
Not trading in or acting as an intermediary involving a “work of art” in a single transaction, or a series of linked transactions of £10,000 or more.
So basically, every time you price and deal in an artwork above £10,000 you (or your agent) 
  • MUST register to comply with the Regulations and 
  • MUST maintain all appropriate records - which will be open to inspection by those monitoring compliance (think VAT records!)
Art Market Participants (AMPs) which includes any person or organisation dealing in art - have until 10th June 2021 to register to comply with the Money Laundering Regulations (i.e. it was deferred because of the Covid-19 pandemic).

See for example The Art Newspaper's article (updated in March 2021) The art market is 'high risk' for money laundering, so ignore new regulations at your peril

More on this when my new page is published in the near future.

The pages improve with age!

As always with these sort of initiatives my first published page is the best I can do at the time. HOWEVER they always improve over time as:
  • I find more information 
  • fill the gaps in advice
  • make the entire page more related to the art business - while at the same time providing the context for "what an artist needs to know" (or art gallery or art collector!)

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