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.
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
• • •
Missing some Tweet in this thread? You can try to
force a refresh
First thoughts on the new version of the Border Operating Model
Nothing has changed – it's all additions to the previous version.
We’re getting a lot more info on infrastructure – sites for transit, SPS checks etc.
/1
This is helpful as it will allow businesses and intermediaries to plan for their trade lanes. Especially for businesses planning to use transit or needing additional checks
/2
Nothing on NI - but we knew that in advance.
New info on so-called multi-functional inland infrastructure sites - their function (on 1 Jan as well as 1 July) and location.
/3
The point (TL:DR) of this longish thread was this – it’s not about becoming a hub for trade deals. It’s not about signing as many FTAs as possible – that by itself has never worked for any country. This is step 1 – creating opportunities.
Even at the most basic level, there is a second part to this - ensuring that companies can use these opportunities, they know about them and have the possibility to use them. Creating access to these opportunities.
/2
And this is where the Gov does not have a very good track record – i.e. communicating with biz regarding upcoming changes and ensuring that biz are prepared for them.
/3
There is also an interesting point around the benefits of being a free trade hub (a country that has a high number of trade deals). It's different from being a hub for trade or manufacturing and doesn't always translate.
/2
Let's say we sign all these deals, and let's put aside their relative impact on the UK economy vs impact of leaving the EU debate for a moment - we will never be a global manufacturing hub given the cost of UK labour and where we sit in the global value chains.
/3
Unfortunately, that's a "no" on cumulation. Although not unexpected. The EU was never going to agree to this although I must say if there was one industry where I thought it could be possible - it was the auto sector.
/1
So there is only one route to cumulation that remains open for the UK - and only with some countries. The good old Pan-Euro-Med agreement. Seems like the only option for anything above bilateral cumulation with the EU
/2
On the plus side, the long-awaited upgrade of PEM rules has finally been achieved.
Meaning then PEM should now be a much more attractive option for the UK than beforehand.
/3