GB-NI Trade & the Upcoming Easements

February marked two years since the announcement that the UK and EU had agreed upon the Windsor Framework, setting out the GB-NI-EU relationship in a way that was more pragmatic and sustainable than its predecessor the Northern Ireland Protocol.

The end of this month, 31st March, is due to mark the full implementation of the Windsor Framework and the introduction of easements which can potentially be utilised for goods moving from Great Britain to Northern Ireland.

Let’s explore these easements and how they can benefit you when sending parcels or freight to Northern Ireland.

The UK Internal Market Scheme

Essentially, the UK Internal Market Scheme (UKIMS) is the authorisation required to access the new simplifications that will be available for some goods moving between GB-NI.

UKIMS authorised traders will be able to benefit from facilitations such as:

• Internal Market Movement Information (IMMI): This is a simplified dataset which reduces the number of data elements by half and removes the need for a full declaration.

• UKIMS-EIDR: UKIMS traders will be eligible to apply for Entry Into Declarants Records (EIDR) authorisation for GB-NI movements.

• Trader Goods Profile: A bespoke profile where traders can store their data, which can then be accessed by intermediaries.

The authorisation allows you to declare your goods as not at risk of moving into the EU and ensures that your products are: 

• Not subjected to the same processes as other goods which enter NI 

• Moved into NI without the need for a full declaration and only require a simplified dataset which will be based on commercial information

• Not subject to customs duty charges if goods are entering NI that were already in free circulation in GB. 

If your goods are deemed to be at risk, you will be required to complete full declaration when moved into Northern Ireland and make payment of duty at the applicable EU rate (unless your goods can rely upon the UK-EU TCA due to being UK-originating).

“In a further easement, the UK Internal Market Scheme authorisation can be obtained by any business within the UK.”

As such, this goes beyond the previous requirement which simply allowed only businesses with physical premises in Northern Ireland to obtain what was then called, the UK Trader Scheme.

Also, as this authorisation can be obtained by any UK business, it does not technically have to be the buyer or the seller.

However, if someone else along the supply chain is going to obtain the authorisation, they will require the necessary information to demonstrate that the goods are not at risk of entering Northern Ireland.

Reduced data requirement and the Trader Goods Profile:

As mentioned above, once you have been authorised under UKIMS, a business will be able to benefit from providing a reduced data set (known as Internal Market Movement Information) when the goods move from GB-NI. This information can be provided either pre or post-movement depending on whether you as using the EIDR (Entry in Declarants Records) process.

As well as halving the number of data elements, IMMI allows traders to classify their goods to 6 or 8-digit commodity code level (for standard and controlled goods respectively) compared to the current 10-digit requirement.

Additionally, the new Trader Goods Profile is an optional service that can make it even easier for businesses to complete the Internal Market Movement Information.

This Profile provides businesses with the ability to upload their information (such as their commodity codes) in advance and will allows the trader to provide a simple goods description to identify the relevant information when the goods move.

As a business, all you need to do when using the Trade Goods Profile is simply share access to your agent, intermediary or the TSS.

Sending parcels to Northern Ireland

The rules on sending parcels will depend on whether you are sending to a consumer or a business.

For B2B parcel movements, the same rules apply as freight movements with businesses needing to be authorised under UKIMS in order to benefit from the simplified processes. For parcels that do not move under UKIMS, you will need to follow full customs processes and may have to pay the relevant EU duty rate.

In comparison, a new consumer route will allow B2C and C2C movements to continue to run smoothly, without a customs declaration or duty requirements. Weight limits do apply, however they are generous with a 100kg limit for single items and a 31.5kg limit if the consignment is made up of multiple items.

At Risk Goods

As we’ve mentioned throughout, the key is understanding whether your goods will be ‘at risk’ or ‘not at risk’ of moving into the EU.

Goods can be declared as ‘not at risk’ under the UKIMS if:

• They are for sale to, or final use by, end consumers located in the UK

• They are not subject to an EU trade remedy

It is important to remember that goods can be classified as ‘not at risk’ if you prove they are to be sold via a Northern Ireland store to consumers, regardless of the nationality of those consumers.

Categorising your goods

In order to benefit from the Internal Market Movements, a business needs to check the category of their goods. Goods,

are categorised as either:

Category 1: Not eligible for the simplified processes under the UKIMS and subject to full customs declaration.

Category 2: Eligible as long as they meet certain requirements and conditions. This category includes excise products and goods subject to special health, licencing or environmental controls.

Standard: Eligible For help classifying your goods, have a look at this page on the Gov.uk website.

Conclusion

As mentioned, the full implementation of the Windsor Framework is due to happen on 31st March and there are no doubts that these easements are a benefit to businesses. Also, it’s important for businesses to realise that they do not have to wait until full implementation to sign-up for UKIMS. Any business established in the UK can make sure they are ready to take advantage of these easements by signing up today by following this link.