On 29 May, we updated you on key messages from a recent meeting with the Northern Ireland Joint Customs Consultative Committee on the Windsor Framework (“WF”). Today we provide more details on the matters discussed including NI-GB unfettered access, more on both the UK Internal Market Scheme and the Reimbursement Scheme, news about the treatment of mixed loads, and an update on XI EORI numbers. HMRC has since updated a number of publications which are referenced below.
Unfettered NI-GB access
Officials confirmed that there will be no changes to goods movements from NI-GB, hence unfettered access will continue to be available and protected with, as it is currently, no export requirements needed other than for exceptional goods such as endangered species, hazardous chemicals, etc.
UK Internal Market Scheme (“UK IMS”)
It is confirmed that the new UK IMS, which will replace the UK Trusted Trader Scheme (“UK TTS”) from 1 October 2023, will include a higher commercial processing threshold and broader sectoral exemptions.
As the scope of UK IMS is wider than the current UK TTS, there will be some additional authorisation requirements. In addition to company directors, HMRC will check whether senior employees responsible for the movement of goods under the scheme have any serious criminal offences recorded in relation to economic crime. There will also be more detailed questions on record keeping and internal controls. HMRC will also undertake checks to ensure that traders are “of good financial standing.”
HMRC will also provide new guidance on obligations when moving goods under the scheme with traders required to sign a declaration to confirm they have read and understood the guidance, and that they understand their obligations under the scheme.
Traders currently holding authorisation under the UK TSS will be contacted by HMRC in order for re-authorisation to commence for the UK IMS and will need to login using their Government Gateway to complete enrolment onto the UK IMS. This should be done within six weeks of receiving contact from HMRC about re-authorisation, to ensure UK IMS enrolment before 30 September 2023.
The new UK IMS is now open to apply for authorisation.
The reimbursement scheme
The reimbursement scheme will allow for reimbursement of tariffs paid on goods classed as being at risk which later become/became not at risk under the original Protocol and on goods which move in the new red lane which should originally have been green lane movements under the WF.
This includes the following scenarios:-
- Final sale of goods takes place in NI;
- Goods are consumed in NI;
- Goods are destroyed in NI;
- Goods are moved back to GB from NI; and
- Goods exported to RoW (Rest of World).
In order to claim, the trader must gather evidence to support the claim and submit this to HMRC where a caseworker will consider the application.
Mixed loads
It was confirmed that mixed loads (green and red lane movements in the same container) will be possible under the WF, however red lane goods within mixed loads will be subject to full customs and SPS checks, hence this will slow down such movements.
Miscellaneous
A number of questions were taken away for more detailed consideration including the treatment of different goods movements such as EU/Ireland-NI-GB, NI-Ireland-GB and GB-NI-EU/Ireland. We will share the responses to all queries when available.
A query was also raised in respect of how goods movements under the WF interact with the proposed Border Trade Operating Model. Post and parcel movements (C2C, B2C, B2B) are to be covered in a separate meeting but will not switch on until 1 October 2024 and new quotas are in place for categories 7 and 17 of UK steel.
XI EORI number
HMRC has recently written to businesses with a GB registered business address who hold an XI EORI number to confirm if they have a permanent business establishment (“PBE”) in NI or if they still need their XI EORI number for the limited customs purposes for which this is provided. Businesses meeting the criteria to retain their XI EORI number for the limited list of other customs purposes do not have to be established in NI.
This validation exercise letter invites traders to upload evidence of a PBE in NI or to select on the G-form that they meet the criteria to retain their XI EORI number.
Updated guidance and publications
HMRC has also published and updated a number of guidance documents as follows:-
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