Trading with the UK

The UK is no longer in the EU’s Single Market and Customs Union.

This means any business, regardless of size, that moves goods from, to, or through Great Britain (GB) is now subject to a range of customs formalities including customs declarations, routine customs checks, payment of customs duties and other regulatory requirements, including SPS controls in the case of food products.

It is vital that businesses, no matter how small, understands the impacts that these new rules and processes have on operations. Failure to implement these new requirements will hamper your ability to trade with the UK and could lead to significant delays in moving goods from, to or across GB.

It is important to note that these changes do not apply with respect to trade in goods between Ireland and Northern Ireland. The Protocol on Ireland and Northern Ireland applies from 1 January and provides that the Union Customs Code will continue to apply to and in Northern Ireland.

Government has made substantial investment in infrastructure, staffing and IT systems capacity at our ports and airports to ensure that the changeover to these new arrangements for East-West trade is as efficient as possible. The preparations that your business undertakes are a key part of this, ranging from submitting pre-declarations to ensuring accuracy of all relevant documentation.

As the transition to new systems continues, there may be delays at ports and airports for goods, particularly in GB. Businesses are advised to build this risk into their supply chain for a time, including where they use the UK landbridge to import and export to European markets. Please see the transport and logistics section for more information.

Currently, there are common customs duties that apply on imports from third countries across all EU Member States.

The EU-UK Trade and Cooperation Agreement provides the basis for tariff free trade between the EU and the UK where the origin of the goods being imported or exported can be proven. This proof can be provided by using a statement of origin from the exporter or on the basis of the importer’s knowledge. This means a preferential 0% tariff rate will apply if goods entering the EU from the UK are proven to be of UK origin, and a request for this preferential treatment has been included on the relevant customs declaration. Similarly, a preferential 0% tariff rate will apply if goods being exported to the UK from the EU are proven to be of EU origin and again the claim for preferential treatment has been included on the relevant customs declaration.

Customs duties, if any, are payable together with VAT (and excise duty if applicable) at the point of importation into the EU unless you have been approved for a simplified customs procedure or have a deferred payment authorisation in place. Likewise, for those exporting goods to GB, these may become subject to customs formalities on importation in GB. You are advised to contact the UK's Revenue and Customs authority, the HMRC, for further detail.

The UK Government's Border Operating Model, outlines details of the phased introduction of border controls on exports to Great Britain from the EU.

In addition to outlining the various elements that come on line in each phase, the paper also provides details of the models that will be used at border locations, various IT platforms for the RoRo Freight sector such as the new Goods Vehicle Movement Services and the Smart Freight System, as well as details for moving excisable goods and VAT.

Information on preparing for new UK import controls is available here.

Practical steps you can take

If you trade with the UK, there are steps outlined below that you can take now to ensure that any potential disruptions to your business are reduced:

• Look at your supply chain (including raw ingredients) and assess how it is impacted. You can read more about your supply chain here.
• Get a customs registration number, which is called an Economic Operators Registration and Identification (EORI) number. This is a common reference number for interactions with customs authorities in EU Member States and is valid throughout the EU. You can get an EORI number using Revenue’s online services section.
• Make sure you understand the customs rules, procedures and obligations that apply to you and your trade with and through GB. This includes classifying the goods that you import or export for customs purposes. You should also consider the implications of Rules of Origin, on your exports and imports. Businesses can sign up for Enterprise Ireland’s Customs Insights Course; this short online programme aims to give businesses a good understanding of the key customs concepts, documentation and processes required to succeed when trading with GB.
• Check if your products are transported using wood packaging or pallets and, if so, ensure that the wood is International Standard for Phytosanitary Measure No. 15 (ISPM15) compliant.
• Ensure you are compliant with the new customs formalities. These can be managed in-house or you can engage a customs broker or agent to act on your behalf.
• Talk to the business that moves your goods for you as they now need additional information from you to avoid delays in moving goods to and through GB. Incomplete or inaccurate information will lead to delays, which could cost you money.
• You may have to pay import duties (customs duty, VAT and excise) when you bring goods in from GB. Plan for this from a cash flow point of view. Please note that customs duties must be paid at the point of entry for goods to be released, unless you have been approved for a simplified customs procedure or have a deferred payment authorisation in place. Likewise, for those exporting goods to GB these may become subject to customs formalities on importation in Britain. You are advised to contact the UK's Revenue and Customs authority, HMRC, for further detail.
• Engage with any trade representative body of which you are a member. They can assist you adapting to the changes brought about by Brexit.
• Contact your local Chamber for information on Incoterms, an internationally recognised set of rules that are used in international and domestic contracts for the sale of goods, developed and maintained through the International Chamber of Commerce.

An overview of the key steps for moving your goods through ports in Ireland can be found here.

• Check the UK VAT requirements here.
• Check to see if you need to register for VAT in the UK or another EU Member State as a result of changes e.g. if you previously used the Mini One Stop Shop to pay VAT due in the UK you will now need to register for VAT in the UK.

• If you import excisable products from Great Britain, you must pay any charges (customs duty, VAT, excise duty) due to enable the release of your goods unless these goods are destined for a Revenue approved tax warehouse immediately after importation

• If you export excisable products to, or move them through GB, you or your agent must complete a customs declaration.

To protect human health, animal health and the environment, EU rules restrict the import of certain goods from third countries – for example, live animals and products of animal origin. Therefore, you should undertake the following:

• The person responsible for importing the consignment must register with the Department of Agriculture, Food and the Marine as well as on the EU’s Trade Control and Expert System (TRACES). You can register on TRACES by applying through the Department of Agriculture, Food and the Marine. You should contact brexitregistration@agriculture.gov.ie in relation to queries regarding registration with DAFM and TRACES.
• Check on TRACES that the exporter is approved by the EU to export the category of product required by you.
• Make sure your transporter or haulier is in possession of the required EU authorisations.
• Ensure pre-notification of imports of live animals and animal products are submitted at least 24 hours before the consignment arrives at the point of entry.
• The person responsible for importing the consignment is also required to submit copies of the relevant health certificates and any other documentation required by EU legislation to an electronic mailbox at the same time as the TRACES document is completed.
• If you are importing wild caught fish or fishery products, you must have a Catch Certificate – see the Sea Fisheries Protection Authority for further information. Where a Catch Certificate is required, you must give the SFPA at least 24 hours advance notice.

For further information, see the Department of Agriculture, Food and the Marine website or contact your sectoral representative bodies.

To protect human health, plant health and the environment, EU rules restrict the import of certain goods from third countries including some plants, plant products and wood packaging. Therefore, you should undertake the following:

• Register with Department of Agriculture, Fisheries and the Marine.
• Ensure that your supplier is in a position to supply the appropriate documentation.
• Make sure your transporter or haulier is in possession of the required EU authorisations.

For further information on these requirements, see the Department of Agriculture, Food and the Marine. Businesses are also advised to engage with their sector’s representative bodies who can provide guidance on adapting to the changes by Brexit.

In order to protect the safety and health of EU citizens and preserve the integrity of the internal market, controls are carried out on food entering the EU market to ensure they meet the requirements of EU food law. The controls carried out are dependent on the food type and can vary from a documentary check to an identity or a physical check or any combination of these checks. Some foods are considered to pose a higher risk to public health, animal health or to the environment in terms of diseases, pests or contaminants, and additional requirements are in place for these foods to control those risks. These additional requirements can include prenotification of arrival at the point of entry, specific accompanying documents and full physical checks. In most cases these foods may only enter the EU market through a specific entry point.

EU food legislation splits foods into the following broad categories:

• Foods of animal origin such as meat, dairy, fish, honey, eggs.
• Foods of non-animal origin such as fruit, vegetables, nuts, alcoholic and non-alcoholic beverages, confectionery, food additives (e.g. colours and preservatives).
• Composite products – food products that contains both processed products of animal origin and products of plant origin e.g. ham and spinach quiche, pepperoni pizza, chocolate mousse, beef sandwich, duck spring roll. However, not all foods containing processed products of animal origin and plant material are composite products.
• Food contact materials include any materials or articles that:

- Are intended to be brought into contact with food e.g. glass jug;

- Are already in contact with food e.g. milk carton; or

- Can reasonably be expected to come into contact with food e.g. paper towels.

Foods of animal origin are considered ‘high risk’ by the EU as they can transmit serious human and animal diseases. They must enter the EU through a listed Border Control Post (BCP). The list of BCPs in Ireland and their designations can be found here. Their entry onto the EU market is subject to specific requirements such as an obligation on the importer (i.e. the operator responsible for the consignment) to be registered with the Department of Agriculture, Food and the Marine (DAFM) notification of the food through the EU online system TRACES NT, and use of specific certificates that must accompany the food. Entry onto the EU market is controlled at the port of entry in Ireland by DAFM. For direct landings of fish from a fishing vessel of a third country, controls are carried out by the Sea Fisheries Protection Authority. For further information on the requirements see the Department of Agriculture, Food and the Marine for foods of animal origin and for additional requirements regarding fish or fishery products see Sea Fisheries Protection Authority.

Foods of non-animal origin are generally controlled for food safety purposes (e.g. microbiological or chemical contamination) at the point of entry to Ireland by the HSE Environmental Health Service, and for pesticide contamination by the Department of Agriculture, Food and the Marine (DAFM).

The majority of controls are carried out on imported food of non-animal origin on a risk assessed basis. Certain foods of non-animal origin that are considered ‘high risk’ are subject to an increased level of import controls at the point of entry into the EU, as they are likely to pose a serious risk to human health, animal health or the environment. The list of products subject to increased level of controls at borders is regularly updated by the EU (and is available on the FSAI website and DAFM website. Requirements for these foods including prior notification of the arrival of the foods, presentation at a Border Control Post (BCP), and identity and physical checks which could include laboratory analysis, are carried out by the relevant control authorities ( i.e. HSE, DAFM).

Food businesses importing food products of non-animal origin into Ireland should check the regulations to determine if increased controls and prior-notification of importation is required for a specific product. Products subject to increased official controls or emergency/safeguard measures must be notified to the HSE through the EU online system TRACES NT, submitting all required documentation and certificates at least one working day prior to arrival. For information on routine controls, or to contact the HSE Environmental Health Service team, email importcontroldublin@hse.ie. In the case for foods where the associated risk relates to pesticide residue contamination, importers must complete the necessary documentation on the EU online system TRACES NT and submit specified documents accompanying each consignment to pcs_icon@agriculture.gov.ie prior to arrival.

Some foods of non-animal origin such as fruit and vegetables are also subject to dual control by both the HSE and DAFM, as they are controlled by DAFM under plant health regulations and EU Marketing Standards requirements but may also be subject to controls by the HSE for microbiological contamination.

Fruit and vegetables from third countries entering the EU market are controlled at the port of entry in Ireland by DAFM. For further information, see section for traders importing plants and plant products.

Composite products are foodstuffs that contain both processed products of animal origin and products of plant origin. Specific requirements are set out in legislation for composite products particularly in regard to use of ingredients of animal origin with many composite products, subject to veterinary checks on import. For further information on the requirements regarding these foods see Department of Agriculture, Food and the Marine.

Food contact materials

Food comes into contact with many materials and articles during its production, processing, storage, preparation and serving, before its eventual consumption. Such materials and articles are called Food Contact Materials (FCMs).

FCMs placed on the EU market are subject to general rules governing food contact materials with certain food contact materials subject to additional specific measures e.g. ceramic materials, plastics. For further information on food contact materials see the Food Safety Authority of Ireland (FSAI).

Importers of certain food contact materials are responsible for the issuing of a Declaration of Compliance which must contain the information laid down in legislation and must permit an easy identification of the materials, articles or products for which it is issued. Further details are available from the FSAI.

Due to an identified risk, the EU has introduced import requirements for:

• Polyamide and melamine kitchenware from China and Hong Kong

• Polycarbonate infant feeding bottles containing Bisphenol A

FCMs entering the EU market are controlled at the point of entry in Ireland by the HSE Environmental Health Service.

For goods exported to the UK, excluding Northern Ireland, the UK is introducing further import requirements on 1 October 2021, and 1 January and 1 March 2022 on foot of a UK announcement on 11 March. The UK Government is updating its Border Operating Model and associated areas of UK legislation.

From the 1 October 2021, the UK will implement sanitary and phytosanitary (SPS) requirements on imports of:

• Products of Animal Origin (POAO) for human consumption, including meat and meat products, dairy products, fish products, honey, table eggs and composite products.
• Regulated plants and plant products.

Information on preparing for new UK import controls to be introduced is available here and on Department of Agriculture, Food and the Marine website

As a result of Brexit, from 1 January 2021, there are some changes to how trade in services operates between the EU and the UK (including Northern Ireland). EU law supporting the internal market for services no longer applies in the UK, including Northern Ireland. This includes the Services Directive, which promotes shared standards for trade in services across the EU. There are also implications for the recognition of professional qualifications which helps to support trade in services.

The Protocol on Ireland/Northern Ireland applies from 1 January 2021. However the Protocol covers trade in goods and does not significantly address services trade. For more information on the Protocol, see here.

The Common Travel Area (CTA) between Ireland and the UK remains in place. The CTA allows Irish and British citizens the right to move, reside, and work in each jurisdiction, without the requirement to request permission. It therefore helps to facilitate some aspects of trade in services by Irish and British citizens. See some FAQs in relation to Trade in Services and the Common Travel Area here.

The EU-UK Trade and Cooperation Agreement includes provisions on trade in services. The implications of these provisions vary by sector. The European Commission has produced a FAQ document on the TCA, which includes some further information on services and investment. This is available here.

Trade in services is a complex area so if you are an Irish company providing a service in the UK (including Northern Ireland), or a business in the UK (including Northern Ireland) providing a service in the EU (including Ireland), you must take account of how your particular sector is affected by these changes and act accordingly.

You should take steps to understand any impact on your own business and operations of any changes to the rules, procedures, and/or authorisations that control the provision of services in each jurisdiction.

Based on this, you should consider your own course of action to take account of this new trading environment.

For example:

• If you use UK service providers, you may need to consider any new EU market access issues your service provider may be facing.
• If you provide services into the UK market (including Northern Ireland) you should ensure that you are aware of all possible changes to market access rights there.
• This includes implications for the recognition of professional qualifications. You should contact the relevant regulatory body for your profession in the first instance (further information is available here).
• From 1 January 2021, the UK is considered a third country for data sharing purposes. The TCA includes a bridging mechanism, subject to certain conditions, which means that for six months, or until the adoption of adequacy decisions, whichever is earlier – the transmission of personal data from the EU to the UK is not regarded as a transfer to a third country. It is anticipated that an adequacy decision by the EU in respect of the UK may be adopted during this time. A draft decision has been published and is available here. All companies are advised to review their existing processes and contracts to assess whether they involve data transfers to the UK and to ensure compliance with EU data protection regulations. For more information please see the Data Protection Commission’s guidance note, available here.
• You can also avail of Government supports available for businesses affected by Brexit. More information on these supports is available on the Government Brexit Advisory, Financial and Upskilling Supports page.

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