This week’s bulletin examines the detail of the changes the UK would like to make to the Northern Ireland Protocol following the issuing of its command paper. We also bring you information from a meeting that the Institute attended with HMRC to discuss the proposed changes. In other news, HMRC has sent letters to VAT registered businesses trading goods between Great Britain and the EU and we also bring you the latest Trader Support Service Bulletin.
UK sets outs proposals to change the Northern Ireland Protocol
The UK government has set out in a command paper the elements it would like changed in the Northern Ireland Protocol. In a document entitled “Northern Ireland Protocol: the way forward”, the UK wants goods from Great Britain that are destined to be consumed in Northern Ireland to be able to move freely without paperwork, tariffs, or checks. Currently these goods require customs formalities because of risks they might pass into Ireland or the wider EU.
The paper is clear in its message: the Protocol is not working in its current form and is disrupting supply chains resulting in goods not getting to their desired destination on time or at all. However, the UK’s Brexit Minister, David Frost stopped short of suspending parts of the Protocol by invoking Article 16, saying it was not the right time to do so.
Instead, to resolve the situation, the UK government wants to “remove the burdens on trade in goods within the UK” while respecting the integrity of the EU’s Single market.
To do this, the UK is proposing the following:
- Goods from Great Britain that are destined to be consumed in Northern Ireland should be able to move freely without paperwork, tariffs, or checks.For goods that move through Northern Ireland from Great Britain into Ireland (or the rest of the EU), full customs checks, and EU SPS checks would be carried out by UK authorities.
- For agri-food, EU SPS requirements would apply for goods going from Great Britain to Ireland via Northern Ireland and the UK would enforce them. There would be no certificates or checks for agri-food to be consumed in Northern Ireland.
- For live animals and certain plants, checks would still be required; however, the UK is seeking an “appropriately designed SPS agreement… setting out where UK and EU SPS legislation provided for the same high standards.”
- Data exchange between the UK and EU to improve policing of trade issues would be promoted.
- An international arbitration system would be put in place. The Protocol gives the European Court of Justice and other EU institutions the right to enforce some of its measures and the UK wants to change that.
- For medicines, the UK argues that the most straightforward way forward may be to remove medicines from the scope of the Protocol.
- In terms of VAT, the UK is seeking more flexibility to set its own VAT and excise rates and rules in Northern Ireland but with appropriate safeguards where “changes would introduce significant distortions on the island of Ireland.”
The proposals would of course have to be agreed by the EU. During a meeting attended by the Institute yesterday with HMRC’s Joint Customs Consultative Committee (“JCCC”), to discuss the command paper, officials acknowledged that the detail of the proposals needed to be worked out and negotiated with agreement from the EU.
UK Prime Minister Boris Johnson and European Commission President Ursula Von der Leyen spoke by telephone yesterday after which Ms Von der Leyen said on Twitter that the EU would “continue to be creative and flexible within the Protocol framework. But we will not renegotiate.”
The UK has sought a “standstill period” to negotiate the changes to the Protocol, acknowledging that certainty and stability for businesses were of paramount importance.
Officials at the meeting of the JCCC clarified to this Institute that the “standstill” provisions within the paper mean that current processes and requirements will continue as normal. However, the UK has asked that the current grace periods, including those that apply to the importation of chilled meats into Northern Ireland from Great Britain, do not expire until the Protocol is renegotiated. This will ensure businesses do not face any further cliff edges.
UK PM speaks to German Chancellor about Protocol
Yesterday afternoon, the UK Prime Minister Boris Johnson and German Chancellor Angela Merkel spoke by telephone about the Northern Ireland Protocol. During the call, Mr Johnson said that the Protocol in its current form was failing to deliver on its intended objectives and was causing disruption for the people and businesses in Northern Ireland and the position was not sustainable.
Noting the need to preserve the delicate balance in the Good Friday Agreement, the Prime Minister explained why he has set out proposals to significantly change the Protocol by way of Command Paper. Mr Johnson urged the Chancellor and the EU to collectively engage in a constructive and detailed discussion on the proposals contained within the command paper.
Read more on GOV.uk.
Letters to businesses about importing and exporting goods between GB and the EU
HMRC has sent letters to VAT-registered businesses in GB trading solely with the EU, or the EU and the rest of the world. They explain what businesses need to do to comply with the new rules for importing and exporting with EU countries including:
- making sure they have a UK Economic Operator Registration and Identification (“EORI”) number.
- ensuring they are ready to make customs declarations.
- checking if their goods are eligible for the preferential zero duty rates: and
- preparing for the end of staged import controls on 1 January 2022.
New HMRC campaign
HMRC has also launched a new campaign aimed at helping UK businesses prepare for the customs changes coming into force from January 2022. Over the coming days more than 160,000 businesses will receive a letter from HMRC explaining the steps they need to take to continue trading in the EU. In particular, the letter highlights guidance on making supplementary declarations, appointing a customs intermediary and the requirements for Export Health Certificates which are needed for animal products. HMRC will continue to contact businesses over the coming months with more information on the introduction of full customs declarations. The Command Paper which sets out suggested changes to the Protocol proposes that certain grace periods be extended; however, status quo remain for now.
Latest Trader Support Service Bulletin
The latest Trader Support Service (“TSS”) bulletin 36 is available. This features the following:
- how to access NI Customs and Trade Academy guides and support within the TSS portal.
- Automatic Licence Verification System – coming soon to TSS.
- A reminder about the updated Goods Vehicle Movement Service.
- Updated Customs Declaration Service error code guidance; and
- Find out if you need to pay a tariff on your goods brought into NI from GB.
New personalised supplementary declaration planner
If you’ve chosen to delay making customs import declarations on non-controlled goods that you have brought in from the EU this year, you have to make a supplementary declaration within 175 calendar days of your shipment arriving in GB. A new planner has now been published which sets out the key actions you need to take to complete your supplementary declaration within 175 calendar days of importing your goods.
See www.charteredaccoutants.ie/brexit for information relating to the UK’s departure from the EU.
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