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1/ Northern Ireland - A 'wait, what?' thread.
The UK announced it's Northern Ireland temporary policy. It's exact words are: "The UK temporary import tariff announced today would therefore not apply to goods crossing from Ireland into Northern Ireland."
gov.uk/guidance/eu-ex…
The UK announced it's Northern Ireland temporary policy. It's exact words are: "The UK temporary import tariff announced today would therefore not apply to goods crossing from Ireland into Northern Ireland."
gov.uk/guidance/eu-ex…
2/ However, how can the UK do that if the World Trade Organisation requires it treat all WTO Members the same?
Isn't this giving one Member a backdoor into the UK, AKA special treatment?
Isn't this giving one Member a backdoor into the UK, AKA special treatment?
3/ Smart trade lawyers are telling me it needn't necessarily be a breach of the WTO's MFN (most favoured nation) rule provided the treatment at the border isn't EU specific.
In other words, if a Brazilian cow turns up at the NI border bound for London, it's tariff free too.
In other words, if a Brazilian cow turns up at the NI border bound for London, it's tariff free too.
4/ I'm... not convinced.
In order to take advantage of the NI border in this way, the Brazilian cow would have to land in Ireland and then be driven across.
My (limited) understanding is that to do this without paying EU tariffs, it would need to use transit procedures.
In order to take advantage of the NI border in this way, the Brazilian cow would have to land in Ireland and then be driven across.
My (limited) understanding is that to do this without paying EU tariffs, it would need to use transit procedures.
5/ Again, this isn't my field (help @AnnaJerzewska and @AllieRenison) but it's not clear these would actually work.
The whole point of transit procedures is that they suspend duties between two customs posts (the one where you enter the EU and the one where you enter the UK).
The whole point of transit procedures is that they suspend duties between two customs posts (the one where you enter the EU and the one where you enter the UK).
6/ The whole procedure relies on an exchange of information between these two customs posts when the consignment arrives in the EU.
Basically EU border post going:
"Hey, this cow says it's headed your way. Can you confirm?"
UK border post:
"Oh yes. That's gonna be our cow."
Basically EU border post going:
"Hey, this cow says it's headed your way. Can you confirm?"
UK border post:
"Oh yes. That's gonna be our cow."
7/ The EU's transit manual sets all of this out in mind-numbing, face-melting detail.
There are strict procedures for transiting the EU without paying duties, and they rely on there actually being something at the other end.
ec.europa.eu/taxation_custo…
There are strict procedures for transiting the EU without paying duties, and they rely on there actually being something at the other end.
ec.europa.eu/taxation_custo…
8/ Either I'm misunderstanding something (likely) or this appears MFN only at first glance.
In practice, the NI border will only be 'open' to EU goods.
Welcome the thoughts of smarter people. /end
In practice, the NI border will only be 'open' to EU goods.
Welcome the thoughts of smarter people. /end
