News

North's businesses will have to declare goods bound for Britain under Brexit deal

A sign in Surrey warning drivers that EU freight papers may change following Brexit. File picture by Gareth Fuller, Press Association
A sign in Surrey warning drivers that EU freight papers may change following Brexit. File picture by Gareth Fuller, Press Association A sign in Surrey warning drivers that EU freight papers may change following Brexit. File picture by Gareth Fuller, Press Association

NORTHERN Ireland businesses will have to submit export declaration forms for goods heading to Britain, the British government has confirmed.

Under the government's Brexit deal, businesses will need to submit information on goods bound for Britain.

Brexit Secretary Steve Barclay confirmed the details during his evidence to the House of Lords' Exiting the EU committee on Monday.

If the Brexit deal is passed, Northern Ireland will continue to follow many EU rules on goods after the UK leaves the union, while Britain will not.

The deal aims to prevent a hard border.

However, an impact assessment on the deal, published late on Monday, has found it is impossible to guess how much this extra work will cost businesses.

According to the assessment, published by the Department for Exiting the European Union, the government has not been able to outline any extra costs "due to data limitations".

The assessment has warned that the deal could have a negative effect on the north and potentially lead to a reduction in investment and consumer spending.

But it also did not consider the deal's potential benefits of allowing the north to retain access to both the European single market and Britain.

As part of the withdrawal agreement, traders from Britain who want to export to the north will have to make customs declarations which will cost between £15 to £56 per declaration.

Jim Harra, interim chief executive of HMRC, yesterday told a Treasury committee that it is "impossible to be definitive" about any new arrangements because they still have to be discussed and agreed with the EU during a Brexit transition period.

However, Ann McGregor, chief executive of the Northern Ireland Chamber of Commerce and Industry, said the deal includes a "de facto customs border in the Irish Sea, bringing with it the concept of export summary declarations".

"It is still unclear what exactly these will look like, they will be discussed and agreed by the Joint Committee during the transition period should the Prime Minister’s deal pass," she said.

"It is however clear that there will be some paperwork for goods going both ways (NI to GB and GB to NI). Whatever these forms turn out to be, it will be very different from what we have now – adding a further administrative burden to businesses and slowing down the on-time delivery model that many companies operate."

HOW WILL IT AFFECT BUSINESSES?

Businesses in the north will need to submit forms for goods bound for Britain, and vice versa.

The government said this change will incur "additional costs" but it cannot gauge exactly how much "due to data limitations".

The change will lead to extra costs for businesses based in Britain.

HMRC has estimated that, based on prior trade, businesses will have to pay between £15 to £56 per declaration from Britain to the north.

Goods sent to the north but eventually bound for the EU will have to pay duties.

WHAT AFFECT WILL IT HAVE ON CONSUMERS?

It remains unclear whether the extra costs associated with British businesses to the north will mean price rises for customers.

Since many northern customers buy online from Britain, it is possible they could be asked to pay increased charges. But this could vary from business to business.

The government's Treasury committee yesterday asked if the export forms would affect, for example, a customer in the north buying shoes on eBay from a seller in Britain.

Jim Harra from HMRC told the committee that "by and large" consumers would be excluded from the new regulations.

"The kinds of costs that we have mentioned are costs really for businesses moving to other businesses... (say) if a company in Newcastle sends shoes to a shop in Northern Ireland," he said.

WHAT WILL BE THE AFFECT ON AGRI-FOOD?

Live animals moving from Britain to the north are already subject to some checks for bio-security purposes.

Under the agreement, extra checks will be needed to comply with EU regulations.

British businesses exporting animal products to the north will have to pay a minimum of €55 per consignment.

However, the impact assessment warned that agri-food businesses may have to face higher overall costs, including greater storage costs.

Because many agri-foods are perishable and must be transported quickly, any extra checks could see delays to shipments. This will also have a knock-on effect on costs, which could see price rises for consumers.