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]