UK Plans to Drop N. Ireland Protocol

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The UK government is planning to unilaterally change it’s border relationship with N. Ireland, which could have significant consequences for UK exporters to the European Union (EU).

Overview
Since leaving the EU, the UK-EU has been operating the “Northern Ireland Protocol”. To uphold a borderless Island of Ireland, crucial to the Good Friday Peace Agreement, the Protocol allows goods to flow freely between N. Ireland and the Republic, with checks on goods from Britain.

However, the UK Foreign Secretary, Liz Truss, says the protocol is preventing the formation of N. Ireland’s Government, and diverting GB trade away from Ireland. The Secretary believes the best solution is an EU co-operative one, but without progress, unilaterally plans to drop parts of the Protocol by removing checks on goods between GB-NI, scrapping the sea border.

EU leaders have indicated they will see this act as a lack of good faith, and could impose trade restrictions on UK goods.

Impact on Traders
The EU has said “respond with all measures at its disposal” to such a move. This will likely mean tariffs on all UK Exports to the Union, regardless of origin or Trade Agreement preferences. If so, EU importers will have to pay duty on goods from the UK, making UK exports less competitive in EU markets.

Brexit Opportunities Minster, Jacob Rees-Mogg, claims the UK will not retaliate with duties on UK imports from the EU, and it is unlikely there will be any change to the customs process on either side.

CDS

Custom processes between Great Britain and N. Ireland are processed through the new Customs Declaration Service (CDS), a new customs platform coming online for all UK goods in September. The current TSS platform for Irish Movements will be retired by 2024.

ChamberCustoms, the Chamber’s Brokerage service, are early adopters for CDS and can help maintain the smooth flow of your goods with our service based compliance, confidence and clarity.

For more information, please contact: [email protected]

Exporter/Importer of Record

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This article aims to clarify the role of the Exporter of Record (EOR), and the Importer of Record (IOR). It will discuss why their roles are important, why businesses trading internationally use them, and what their status allows them to do.

What is an Exporter of Record (EOR)?

An EOR is the legal exporting entity for goods leaving the country. They carry out a valuable service because they help businesses meet trade compliance rules and regulations while exporting.

In many cases, the EOR is also the shipper, and may also be the owner of the goods too, but they don’t have to be. If the EOR is not the owner, then they could be a licensed and knowledgeable third-party export service provider.

Why is an Exporter of Record needed?

Businesses use an EOR for their expertise and knowledge of the export process. Using a third-party EOR could help them avoid making mistakes. They could also avoid potential financial/legal consequences that come with those mistakes.

What are the responsibilities of the EOR?

The EOR is responsible for adhering to the customs processes required in a country for the export of goods. So, their responsibilities might also include:

  • the obtaining of all the necessary documentation for export clearance (such as licenses and permits)
  • ensuring that a clear and accurate description and value of the goods being exported is present
  • the forwarding of any detailed information about a shipment to the forwarding agent (if one is involved)

If goods don’t arrive at their destination either on time or whatsoever, the EOR is also responsible for any financial consequences to the recipient.

These responsibilities are legally binding. If a breach in compliance procedures occurs, the EOR can face severe penalties. These could be financial penalties, criminal liability, or both. This is regardless of whether the OER is aware of the negligence, or if they were aware that a violation had occurred and did not take steps towards resolving or reporting it.

Importers of Record (IOR)

In a similar manner to the EOR, the IOR is responsible for all supporting documentation and compliance that goes along with an import. Their responsibilities might include:

  • Organising import licenses, permits, and local rules and regulations paperwork
  • The payment of duties, taxes, tariffs, and fees

The IOR must be compliant with all necessary rules, regulations, and statutes in the importing country. The same punishments for misconduct against EORs are present for IORs.

For more information on documents used in international trade, visit the Trade Toolkit section of our website at https://www.neechamber.co.uk/preparing-to-trade/.

Chamber says new trade figures show major challenges for exporters

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North East England Chamber of Commerce analysis of the latest Office for National Statistics (ONS) export figures for Quarter 3 2021 show a significant drop in international trade.

Jack Simpson, Chamber international services executive said: “For the third quarter in a row, we have seen a decline in North East export figures, while the UK average continues to recover from the double shock of pandemic and EU Exit. We need practical and committed action to stop this trend.

“The ONS figures lay down the gauntlet for Government to commit to a global Britain and North East. Exporting is a sure way to business growth, but over the last 12 months new barriers and restrictions have made trading overseas more complex and disruptive.

“The Chamber was founded on international support and we continue to offer accredited training, customs brokerage and in-country market support for businesses. But as we enter our second year as an independent trading nation, more must be done to ensure the benefits of international trade are open to all.

“We are calling on Government to increase the practical support available to exporters to tackle trade barriers and reduce the burden of risk for new exporters and markets. With new border changes this month, this support must also be expanded to importers grappling with new processes and in need of advice or support.”

The Chamber is part of the British Chambers of Commerce which today, 18 January, launched a manifesto to tackle growing problems with international trade, help recruit a new generation of exporters and support increased overseas trade growth.

UK Trade Statistics – April 2021

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ONS data released today showed that total UK exports fell marginally in April 2021, by £0.1bn (0.6%), to a value of £26.6bn. This decrease was driven primarily by a drop of £0.4bn in exports to non-EU countries, while EU exports grew by £0.3bn, or 2.0%, on the previous month. This is the third straight month that EU exports have increased following a record fall of over 40% in January.

The value of imported goods increased by a significantly larger £1.4bn, with both EU and non-EU imports increasing on their March figures. EU imports grew by 3.9%, or £1.4bn, which is more than 6 times larger than the respective export growth. The overall goods trade deficit widened by £0.3bn to £5.4bn in April.

Trade with non-EU countries continues to be higher than from EU member states, as EU trade continues to recover and businesses adapt to the new UK-EU trading relationship. Exports and imports from EU countries valued £12.9bn and £18.4bn respectively, while the same figures for non-EU markets were £13.6bn and £20.1bn. This figure for goods imports from non-EU countries (£20.1bn) is the highest since records began in January 1997.

In the 3 months to April 2021, total imports of goods fell by 2.8bn or 2.5% when compared with the three months to January 2021. This was primarily caused by a 12% drop in imports from the European Union. The three months to January 2021 did see a significant level of stockpiling of EU goods, which may be behind this drop in the subsequent months.

When compared to April 2020, the height of the first COVID wave, exports and imports were respectively 31% and 37% higher in April 2021. Exports are still below pre-pandemic and pre-brexit levels, however, as goods export value in April 2021 were still £1.0bn or 3.5% below their level from April 2018.

In July, statistics are set to be released to show the regional breakdown of international trade in the first Quarter of 2021. When this data is made available, we will be able to see whether the North East’s historic reliance on EU markets for trade has meant that the drop in EU trade has been seen disproportionately in our region. Government is aware of the challenges that the new UK-EU relationship has presented to businesses, and should continue to work alongside traders in improving business knowledge and reducing friction between the UK and the European Union.

Two new roles to boost North East exporters

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Two specialist advisers have been appointed by the Department for International Trade and Industry to encourage more North East businesses to export in growing sectors around the world.

Len Taylor, from Ingleby Barwick, is a specialist in offshore wind and renewables and will work with companies to help increase their international competitiveness as well as support overall growth in export trade.

He was a former CEO of Whessoe in Darlington, before that Head of UK Engineering and Projects for DONG Energy (now Orsted). He has also held the Business Unit Director role at AMEC plc where he grew a Clean Energy business.

In his role he will promote the range of opportunities for offshore companies through webinars and advice sessions as well as develop a strategic approach to the region’s offshore offer for overseas markets. He will also grow a network of companies in this sector across the Northern Powerhouse area, to help identify mutually beneficial areas of interest.

Joining him is Scott Duncan from Newcastle who will specialise in the North East’s defence and security sector.

His role will be aimed at helping to increase companies in the sector’s competitiveness and look for opportunities for growth in international markets.  He will also develop a strategic plan for the defence and security sector, which will identify regional strengths, weaknesses, opportunities and threats, as well as develop a roadmap to increase North East exports to the sector

He has worked in various business support roles across the North East having worked for One NorthEast the Regional Development Agency, as well as sector skills councils and more recently as Regional Membership Manager for Make UK (formerly EEF). Whilst at EEF he spent time working within their NDI membership division which delivers supply chain sourcing and business development services to businesses across the defence and security sectors.

North East England Chamber of Commerce is the current Delivery Partner for the Department for International Trade services in the region. Julie Underwood, Executive Director of International Trade at the North East England Chamber of Commerce said: “The Prime Minister’s announcement about increased investment in offshore energy in particular, is extremely timely for these new roles. These sector specialists will help to attract investment to our region and, importantly, ensure our tremendous offshore and defence companies are able to maximise any opportunity to trade overseas.

“The overarching aim of the appointments is that they will help us better understand the breadth and depth of what we have to offer across the wider North and what we need to do to make sure our capabilities are recognised nationally and internationally.”

Norwegian Ambassador addresses Chamber global members

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North East businesses which trade internationally heard at first hand the opportunities to develop closer links with Norway from the country’s Ambassador.

Speaking at a North East England Chamber of Commerce Global members’ virtual lunch, H.E. Wegger Strommen stressed the UK was a key market for his country with 20% of Norwegian goods coming across the North Sea.

The ambassador also outlined a breakdown of his country’s primary export sectors, with the main one being oil and gas and then the fishing industry. This reliance on fisheries isin part due to the Norway’s length of coastline, 90% of Norwegians living by the sea and a factor in the long-standing close economic collaboration with the UK.

In 2019, the North East did £421m worth of trade with Norway, sharing in each other’s primary products, cars from the North East, petroleum from Norway. However, the development of the North Sea power link andDogger Bank Offshore Windfarmwill deliver more opportunities between us.

He also touched on Brexit and Norway’s experience of international trade as it is outside the EU. The Ambassador noted that they have negotiated new market access and consultations on priority areas, like fish, and the UK should identify its own priority sectors.

His speech explained therewere 16k British people in Norway and said they were an important part of their workforce and explained there were also mutual strong links withNorwegian nationals in the UK.

In his view the future links with the North East would remain strong, “If you like someone you are already in business. We make our living on the sea which we share with the North East region. What is good for you, is good for us.

He said: “We have a history with the North East that stretches back over 1,000 years and see the UK as a strong ally and neighbour. The sea binds people together, in the olden days in Norway the only way to see each other was often by boat. Sometimes people describe the sea as a divider but there is usually a much easier way to see someone via a boat than over a mountain range!”

The Ambassador also talked about the importance of Norwegian students attending our North East Universities as they very often returned to do business in the North East as a result.

As a final note he added how much this region was a magnet for Norwegian tourists who came for sporting, musical and entertainment events.

The Chamber global lunch was held in association with the Norwegian British Chamber of Commerce, through the Global Chamber Network.

Chamber Response to Latest Export Statistics

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Chamber director of international trade, Julie Underwood, said “The new export figures highlight the strengths and also the current challenges such as Brexit and global uncertainty, for the region’s export community.

“The export figures show our trade with the rest of the world outside the EU has increased, led by a 42% export increase to the Middle East. While this is good news but we should treat these results with a hint of caution, with global activity plagued by volatility. Our surveys show this will continue. Government must look to provide stability and support for international trade as a priority.

“However, the Chamber will continue championing the global ambitions of its members in the new decade through our Global Business Network, which is geared to promote Chamber to Chamber member trade across the world”.