Last month, the Institute made a submission to the House of Lords inquiry into the Northern Ireland Protocol Bill which has now been accepted as evidence by the Committee. The submission highlighted the uncertainty that the Bill is creating for Northern Ireland businesses.
The submission also highlighted that despite the recent one year extension to the Trader Support Service (“TSS”), a key lobbying matter for this Institute since 2021, a longer term solution is still needed to ensure there is sufficient capacity in the Northern Ireland customs intermediaries market in future years.
The submission also highlighted concerns in respect of the Bill potentially damaging access to EU markets, potential issues arising from the proposed dual regulatory regime, the lack of detail in the Bill for different types of goods movements, including groupage, and the urgent need for a reimbursement scheme to be set up. A positive, but cautious notes, was sounded in relation to goods movements for the retail sector selling only to Northern Ireland consumers and for parcels being delivered to those consumers.
General comments were also made as follows:
·no guidance nor accompanying legislation in respect of the Bill has been provided for formal consultation. Any guidance developed must contain practical examples and case studies, on a step-by-step basis, where possible. Previously, our members have reported to us that they found it difficult applying customs theory to their practical situation. Official guidance must therefore include more usable and relatable material;
adequate time will also need to be given for any changes to be properly designed and implemented, likely to run into years. The design of new policies needs to be prepared with close engagement with businesses recognising that a system designed in theory does not always work in practice. It will also be important to embark on an education campaign for businesses in Northern Ireland and their suppliers in GB – based on previous experience, suppliers in GB have not been prepared for the changes in terms of customs paperwork and this has had significant knock-on effects for GB-NI trading. The TSS could have a vital role to play in this process;
in these uncertain times, businesses also need certainty of HMRC’s approach to compliance. If new trading arrangements are introduced, HMRC should consider automatic suspension of penalties for at least a 12-18 month period. This would mean businesses (and their agents) would not incur the cost of appealing against a penalty in that period. Handling such appeals adds to the workload and costs for businesses and HMRC alike. HMRC could, of course, seek to act if there is any evidence of deliberate behaviour.
In conclusion, Northern Ireland remains in a political vacuum of instability. The Bill further exacerbates this and brings new levels of uncertainty for the region from many perspectives.