Publication
Brexit - Adapting to the New Rules
From Department of Agriculture, Food and the Marine
Published on
Last updated on
From Department of Agriculture, Food and the Marine
Published on
Last updated on
Even if the European Union and the United Kingdom conclude a highly ambitious partnership covering all areas agreed in the Political Declaration by the end of 2020, the United Kingdom’s withdrawal from the internal market and the Customs Union at the end of the transition period will inevitably create barriers to trade and cross-border exchanges that do not exist today.
There will be consequences for businesses and citizens as of 1 January 2021, regardless of the outcome of negotiations. These changes are unavoidable and stakeholders must make sure they are ready for them.
Those exporting to the UK should monitor the latest guidance from the UK government. Please note that these guidance papers represent the UK government position and are subject to change without notification.
Brexit poses enormous challenges for the agri-food and fisheries sectors by virtue of their exposure to the UK market. The possible longer-term impacts relate to import controls on animals, plants and products of animal and plant origin, as well as the certification of Irish agri-food exports to the UK in accordance with any UK requirements in this regard. The fact sheet below describes the value of our trade with the UK in the agri-food sector.
EU Customs Rules of Origin are used to determine whether a product exported to a third country can avail of preferential (reduced) tariff rates under the Free Trade Agreement (FTA) agreed by the EU and that third country. If the product cannot prove that it originated in the EU, under the terms set out under the applicable rule of origin for that product in the relevant FTA, then it cannot avail of the preferential tariff rates.
The UK left the EU on 31 January 2020 and entered into a transition period. When the transition period ends on 31 Dec 2020 goods imported from the UK, including Northern Ireland, will no longer have Union origin under Customs rules.
Using goods from the UK as inputs in your products may mean that you will not be able to avail of the preferential tariff rate available under an FTA agreed between the EU and another country. Whether the preferential tariff rate applies or not will depend on the applicable rules in the FTA regarding the use of non-originating materials for that product.
If the EU and the UK agree an FTA before the end of the transition period, it will be possible to claim the preferential tariff rate available under that FTA. Contrary to the trading situation with third countries, for the purposes of determining origin it will be possible to count UK inputs as if they originated in the EU for the EU-UK Free Trade Agreement.
Note that Rules of Origin have specific rules that vary according to product, country, and FTA. It would be prudent to consider now, in advance of the end of the transition period, if you think that this change might affect your operations. Further information is available on the Revenue website .