Northern Ireland

Europe draws up proposal against border smuggling

An old customs post at Ballyconnell near the Cavan/Fermanagh border Picture Mal McCann.
An old customs post at Ballyconnell near the Cavan/Fermanagh border Picture Mal McCann. An old customs post at Ballyconnell near the Cavan/Fermanagh border Picture Mal McCann.

A PROPOSAL to identify `goods at risk' of cross border smuggling has reportedly been drawn up by the European Commission as Brexit negotiations continue.

The seven page paper identifies the way any differential between an EU tariff and that of the UK on a product can be assessed to as having the potential to cross the land border into the single market after arriving in Northern Ireland, according to RTÉ.

It suggests a higher EU tariff would make it the more likely that goods would be smuggled into the Republic and with those subject to a `significantly higher' tariffs should be deemed "at risk".

The broadcaster said the commission's document was shared with the UK negotiating team "before the summer".

Yesterday the ninth round of formal negotiations resumed, with fisheries and the level playing field among the items on the agenda as time runs out on the transition period.

The Northern Ireland Protocol deems goods moving from Great Britain to Northern Ireland as being at risk of crossing the border into the EU's single market, unless it can be shown otherwise.

The Joint Committee, formed by the Withdrawal Agreement, is supposed to be designing a system defining exactly what "goods at risk" are.

However, the British government is understood to be planning fresh legislation to allow its ministers the power to unilaterally decide which goods to the north should face customs duties.

Without a free trade agreement by the end of next month, the Northern Ireland Protocol would be regarded as legally binding as part of an international treaty - with a full range of tariffs on goods between Great Britain to the north.

RTÉ reports the British government "has been cool on the Commission's idea", with one source telling the broadcaster the proposal was "unacceptable".

However, EU officials argue that, unless safeguards are in place, then the market will adapt over time, and the single market will be at risk of lower tariff goods being smuggled across the border because they are cheaper.

Getting agreement at the level of the Joint Committee on the "goods at risk" issue is an important aspect of the Protocol. According to the European Commission, the Protocol holds that if agreement is not reached by the end of the year, then the default is that all goods are at risk of crossing the border, and would thereby attract tariffs.

It is understood that a forthcoming UK finance bill will, like the Internal Market Bill, give the UK the unilateral right to determine which goods face tariffs when moving from Britain to Northern Ireland.

Following publication of the Internal Market Bill, Prime Minister Boris Johnson appeared to conflate the goods at risk issue with the allegation - strongly denied - that the EU was threatening to block GB food imports from entering Northern Ireland.

Writing in the Daily Telegraph on September 11, Mr Johnson said: "We are now hearing that, unless we agree to the EU's terms, the EU will use an extreme interpretation of the Northern Ireland protocol to impose a full-scale trade border down the Irish Sea."

EU sources insist that the tariff differential idea is still being discussed, among other ideas. The issue is expected to be taken up by the technical working group, known as the Specialised Committee, next week.

"Technical work is continuing on this matter, building on the work over the summer. It is for the Specialised Committee to continue this now and then revert to the Joint Committee," said an EU official.

"The default is that on 1 January all goods are at risk [if no agreement is reached by the Joint Committee]. In approaching the discussions in the Joint Committee/Specialised Committee, the protection of the integrity of the Customs Union will be essential," the official said.