Thread by @AnnaJerzewska

Another IRISH SEA BORDER update. Heads up for all NI and Irish businesses - on mandatory transit and clearance in NI.

This one is a bit technical but bear with me.

(h/t @tconnellyRTE for helping me look into this a bit deeper)

/1

Having spoken to a number of organisations including BIFA and BCC, most of us assumed that under the NI Protocol once the goods arrive in NI that's it:

goods at risk pay EU tariffs and they are cleared and can move south to the ROI.

/2

In hindsight, it was probably wishful thinking but it did seem like that was the point of having the "at risk" category in the first place.

Well, that's not how it's going to work. This will be much more of a hard border.

/3

Basically, customs clearance in NI will not be the same as EU clearance.

It has a number of implications but in simplest terms, it means that if a product is going from Scotland to ROI via NI it shouldn't be customs cleared in NI - it needs to go under transit.

/4

Such product needs to "enter the EU" somewhere and it turns out Larne cannot be that place.

There is another unknown here as well - would it even be technically possible - can an ROI importer import into NI?

/5

Or would they need a representative to act on their behalf?

Would there need to be another transaction in between involving an NI company?

/6

So for companies that means one thing - transit. A lot of transit.

So goods from Scotland to ROI via NI will now need to move under transit.

Yes, 👇 transit.

/7

https://twitter.com/AnnaJerzewska/status/1095656921892339713

One caveat here - this is something we've heard from the Irish Revenue. It was initially mentioned at a couple of their Brexit training sessions.

I've personally not heard that from HMRC and would be very interested to know their view on this

/8

The worry is - this is an expectation from the ROI side but not something HMRC agrees with and as a result traders might not be made aware.

/9

If such movements will indeed require transit, if a ROI importer cannot clear in NI, this will have a number of implications for ROW trade too - it will basically mean that the border is much harder than we initially thought.

/10

Adding so much additional burden and admin for traders (mandatory transit, additional NI transactions).

Awaiting the confirmation of the Irish Revenue understanding of this from HMRC.

/ends