Radio Kerry Interview
1. When are the UK leaving the EU & what happens in the meantime?
Under the Withdrawal Agreement negotiated between the UK and EU, they will leave on the 31st December 2020. There is a transition period agreed during which time there will be no change to the existing trade arrangements, which means the UK will still trade with the rest of the EU as if it is still a member (but it won't have any say in future EU policy decisions).
This transition period is there to give the EU and UK time to agree a Free Trade Agreement. The UK can look to extend the transition period by 1-2 years but will have to apply to do so by 30th June.
2. What is a Free Trade Agreement?
A FTA is a bilateral agreement between two parties that usually focus's on the elimination of tariff's and barriers to trade. A recent FTA negotiated between the EU and Canada is mooted as a template to be followed for the UK. Under that FTA it eliminated tariffs on up to 99% of goods traded between Canada & the EU including up to 92% of agricultural products. However an FTA won't eliminate import & export declarations, VAT Reporting or the need for customs checks.
3. Will there be a Hard Border on the Island of Ireland?
The Withdrawal Agreement allows for the free movement of people and goods across the border with no tariffs, duties or paperwork. This will apply regardless of whether a FTA is in place or not. So effectively, there will be little to no change in how we interact North/South of the Border.
4. What will trade look like with the UK post December 2020?
For Northern Ireland an all-Ireland economy is preserved with no Tariffs, customs controls or border checks applied to trade in goods. For England sale of goods should be treated as exports with no Irish VAT chargeable however an import VAT will be chargeable and vice versa for goods bought from the UK. Customs controls will apply to the movement of goods between Ireland & GB when the transitional period expires.
This means completion of Custom Declarations and possible customs checks. It will also mean Tariffs unless relieved under the FTA. So, in summary it will mean more redtape, more cost and possibly delay's in getting delivery of goods.
5. What impact might this have on movement of People?
No change during the transition period however after December 2020 EU Nationals will have to make an application under the EU Settlement Scheme if they wish to continue to live and work in the UK. For Irish citizens living and working in England and for UK citizens living and working in Ireland, the Common Travel Area allows for the free movement of citizen's of both countries between each other and this will continue post December 2020.
6. What can we do now to prepare for Brexit?
Ensure that you have registered with Revenue for an EORI number. Won't be able to import or export without one. Can apply online and takes about 3 day's to get it processed. No cost and no implications in having one and not using it. Try to source alternative customers or suppliers in the broader EU area. There are grants available from Intertrade Ireland and EI to assist with businesses finding alternative markets and to assist in preparing for Brexit.
Check with your logistic company regarding customs declarations post December 2020 and ensure that you have a relationship with a customs agent. Understand what your Taric code is. A Taric code is an unique code used within the EU and that helps to identify the specific good or service traded, allows them to track same and also allocates the appropriate custom or tariff to the product. Book an appointment with your Brexit Advisor in the Local Enterprise Office.
