This week’s bulletin covers the temporary agreement reached in the “sausage war” between the EU and UK, the Institute’s letter to HMRC seeking an update on when the tariff reimbursement scheme will be ready in Northern Ireland, as well as news that the EU has formally recognised the UK’s data protection regime as adequate. We also bring you coverage of Revenue’s assessment of the first six months of post Brexit trading.
Temporary agreement reached in “sausage war”
The UK and EU have agreed common ground on the disagreement over the importation of chilled meats into Northern Ireland from Great Britain. The EU yesterday (30 June) formally approved the UK’s request to a further three-month extension to a grace period allowing chilled meats to continue to be shipped into Northern Ireland from Great Britain until 30 September 2021.
EU food regulations allow only frozen meats to enter the EU’s Single Market. Products such as sausages and other chilled meats are banned from being imported into the EU from Great Britain or from other countries outside of the EU. Trade in these meats is allowed when it is between Member States because all Member States follow the same regulatory standards which are monitored both domestically and by the EU. As Northern Ireland continues, under the Protocol, to follow EU rules on goods, chilled meats would be banned from entering Northern Ireland from Great Britain without the current grace periods.
This grace period is designed to give additional time for supermarkets in Northern Ireland to adjust and examine their supply chains. There are conditions attaching to the current arrangements. For example, the chilled products must be sold exclusively to end-consumers in supermarkets located in Northern Ireland and cannot be sold to other food operators. The goods must also be packaged for end-consumers showing a label reading “these products from the United Kingdom may not be sold outside Northern Ireland”.
In terms of a longer-term solution, time will tell if this arrangement will suit all parties.
Read the communication from the European Commission.
Reimbursement scheme – Institute seeks further update from HMRC
EU tariffs may apply to goods brought into NI from GB if there is a risk that the goods will subsequently be moved to the EU. If it can be proven that goods stay in NI, the Joint Committee set up under the Protocol agreed that there would be measures to allow for exemptions, or a potential reimbursement of duties paid. There has been commentary and some guidance on the exemptions from duties but little in the way of guidance on how the reimbursement scheme will work.
Given the cash flow and other implications of this, over the past few months, the Institute has sought several updates from HMRC on when the scheme will be ready – no definitive date has yet been provided. This week we wrote to HMRC again asking for a published timeline for the opening of the scheme to be made as soon as possible, in addition to details of how applications will be submitted, and payments reimbursed. We will keep members updated. Read our letter to the HMRC.
Requirement to have an EEA-resident director – clarification still sought
Section 137 of the Companies Act 2014 requires an Irish-registered company to have at least one EEA-resident director, which until the 31 December 2020 could include a UK- (including NI-) resident director. Following correspondence with the CRO, we wrote to the Tánaiste Leo Varadkar to seek clarification on the impact (if any) that the Trade and Cooperation Agreement reached between the EU and UK has on this requirement, and whether NI resident directors in particular will be recognised as meeting this condition. In his response, the Tánaiste said that his Department has sought the legal opinion of the Office of the Attorney General and officials will be in contact with the CRO once the advice has been received and considered. We have not yet received an update. We are aware that this issue is of concern to many members, and we will keep you updated. Read the response from Tánaiste Varadkar.
Revenue report on trade post-EU exit
Revenue reported that over 186,500 freight vehicle movements have been made into Ireland from Great Britain via Dublin Port and Rosslare Europort since the start of 2021.
84 percent of these movements were green routed on arrival meaning they were not subject to checks from Revenue or any other State agency and therefore flowed through the port. 12 percent were orange routed which means documentary checks were required. 4 percent were red routed meaning they were required to undergo a physical inspection on arrival.
The volume of imports into Ireland from Great Britain was down by 20 percent in April compared to April 2020 figures according to recent CSO figures issued last month.
In a press statement, Revenue Commissioner and Director General of Customs, Mr Gerry Harrahill said “It’s important to note that certain goods requiring a check does not necessarily equate to non-compliance with the new formalities. Mandatory checks for certain types of goods are now simply a reality of trading with Great Britain.”
Revenue acknowledged the preparations and changes businesses have had to undergo to adjust to the new trading environment and while many have adapted, there are some businesses who are still struggling with formalities, the UK’s departure from the EU has brought about.
Revenue and the Department of Agriculture, Food and Marine, and the HSE are holding a webinar on Wednesday 7 July where they will cover “ the operation of customs controls and other formalities, provide an overview of the most common challenges experienced by businesses since 1 January and provide advice on the practical steps businesses can take to manage these challenges while at the same time complying with the necessary requirements when trading with or through Great Britain.”
EU formally recognises UK data protection rules as “adequate”
Following several months of assessment, the European Commission this week adopted two adequacy decisions for transfers of personal data to the UK, under the General Data Protection Regulation (GDPR) and the Law Enforcement Directive. This decision will allow personal data to flow from Europe to the UK safely. The Commission said that the data would benefit "from an essentially equivalent level of protection” to that guaranteed under EU law.
The decision, which includes a sunset clause, will be reviewed after four years. This means that any extension beyond four years requires a review of the UK’s data protection system.
The Trade and Cooperation Agreement reached between the two sides did not cover in detail the issue of data protection; rather it included a commitment by both the UK and the EU to ensure high levels of data protection were maintained.
Read more on the European Commission’s website.
Testing the One Stop Shop (OSS) system – participants sought
HMRC are seeking businesses interested in registering to the One Stop Shop (OSS) system to take part in research in order to help shape the OSS service in a way that meets their needs.
We have provided the communication from HMRC below regarding the research.
“One Stop Shop User Research
From 1 July, businesses that sell goods from Northern Ireland to the EU can pay VAT to all EU countries through HMRC using the VAT One Stop Shop. Over the following months, we are looking to engage in research with businesses that will be using One Stop Shop, in order to understand them and help shape the service in a way that meets their needs.
To use One Stop Shop your business must:
- Be based in Northern Ireland and sell goods to consumers in the EU
- Be registered for UK VAT
- Sell goods worth more than 10,000 euros (£8,818) a year to EU countries
If you are interested in taking part in research, please sign up to the GOV.UK research panel using this link so we can contact you:
https://signup.take-part-in-research.service.gov.uk/home?utm_campaign=OSS&utm_source=Other&utm_medium=other&t=HMRC&id=290
Please note any information will be anonymous and confidential. We’ll send you more details if you decide to take part. You can opt out of taking part at any time. We appreciate your support and expertise and look forward to hearing from you.”
Latest Trader Support Service Bulletins
The 31st, 32nd and 33rd weekly Trader Support Service (TSS) bulletins contain information about the following:
- New mandatory ‘Importer EORI’ field within the TSS Portal when submitting declarations
- Details on how to prepare for full frontier declarations which can be declared using TSS
- Linking multiple supplementary declarations to one simplified frontier declaration
- Submitting an ENS safety and security declaration without a simplified frontier declaration
- Enhancements to the TSS including the ability to copy item information between consignments for repeat declarations as well as importing item data from another supplementary declaration
- Details on the Movement Assistance Scheme which provides advice to businesses in obtaining export health certificates
- Details on the Digital Assistance Scheme which streamlines the certification and verification processes required for moving goods from Great Britain to Northern Ireland.
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