Further detail provided on implementation of the Northern Ireland Protocol

Brexit pulse alert: respond to the business impacts of Brexit

10 December, 2020

Brexit development

On 9 December, the Chancellor of the Duchy of Lancaster Michael Gove updated the House of Commons on the implementation of the Northern Ireland Protocol as part of the Withdrawal Agreement with the European Union.

Top Brexit impacts

From 1 January 2021 there will be no additional requirements such as export declarations placed on Northern Ireland businesses moving goods from Northern Ireland to Great Britain (except for trade in endangered species and conflict diamonds).

If there is no trade agreement reached between the UK and EU, under a ‘trusted trader scheme’ up to 98% of goods moving from Great Britain to Northern Ireland to be used or sold to consumers in Northern Ireland will be free of tariffs, with tariff rebates potentially available on the remaining 2% of goods.

Mandatory food standards checks on chilled meat moved from Great Britain to Northern Ireland, as well as on other food supplies moved from Great Britain to Northern Ireland for sale in supermarkets, will be subject to grace periods from 1 January 2021. Following the end of the grace periods, mandatory health checks will apply to animal-based products entering Northern Ireland from Great Britain, with checks applied to 30% of chilled meat and lower percentages of other tiers of goods.

A grace period of up to 12 months will also apply from 1 January 2021 for medicines and veterinary medicines moved from Great Britain to Northern Ireland in order to enable businesses to adapt to the rules under the Northern Ireland Protocol, further detail on which will be provided in due course.

Actions for business

• Businesses moving goods from Great Britain to Northern Ireland should monitor further details provided on the trusted trader scheme to determine the tariffs applicable to their goods and how the tariff rebate mechanism will apply.
• Businesses moving goods from Great Britain to Northern Ireland should consider registering with the Government’s Trader Support Service (TSS) which will provide an end-to-end service to guide traders through all import processes, including handling digital import and safety and security declarations on their behalf, at no additional cost.
• The TSS will not cover food and agricultural products. Businesses moving food or agricultural products from Great Britain to Northern Ireland should implement processes to comply with the mandatory checks which will apply after the end of any applicable grace periods.
  Businesses trading within the UK-Vietnam corridor will now be able to plan for the future with greater certainty. Once published, firms will have a short period of time to examine the legal text of the agreement, which will come into effect on 1 January 2021 after the transition period.
  

To discuss specific support with your Brexit preparations based on this latest development contact: Deloitte Brexit Insight