Earlier this month, the Institute made a submission to the House of Lords inquiry into the Windsor Framework (“WF”) which has now been accepted by the Committee as evidence.
The submission focuses on the ongoing need for a permanent solution to the lack of customs intermediaries/capacity in the Northern Ireland market, the vital role of the Trader Support Service and it also highlights the importance of guidance.
Not enough detail is currently available on how the new Trade Operating Model (“TOM”) will operate on a practical level, particularly regarding customs and the operation of the new processes for red and green lanes.
It is therefore important that HM Government provides operational detail on the new TOM as soon as possible, via detailed guidance (developed in conjunction with stakeholders and containing case study examples), and underpinning legislation, so that businesses can assess before it comes into operation how this impacts on their specific supply chain and prepare accordingly, including identifying any challenges. This is especially important given disparities which have been identified between the UK and EU’s publications on the WF.
Any new processes to be introduced must also be tried and tested and some uncertainties also remain around the ‘at risk’ test which other bodies have already highlighted; these must be ironed out before the new TOM is introduced.
It is also currently unclear how the many and varied types of goods movements from GB into NI will specifically be dealt with, including goods moving from the EU to GB and onward to NI. Unless detailed guidance is available well in advance, trade disruption is likely to occur and there may be further withdrawal from the NI market by some GB traders.
Overall, the WF risks fixing problems for some supply chains only to shift new and different problems, burdens and frictions onto others. Ultimately, until accompanying legislation, detailed policy and guidance, and information on new processes is provided, it is difficult for NI businesses to fully assess and consider the practical impact on trading routes and identify any unintended or knock-on consequences.