You will be aware the UK and EU agreed a new deal on Northern Ireland this week, the Windsor Agreement. Below is a headline summary of relevant issues for retailers of the deal, with a bit more substance following. There will be more from relevant Government departments over the coming months to agree detailed implementation over the next 2 years. We will ensure you are ready for the changes and get all the relevant information.
The Agreement is a positive move forward, and we are happy to have been able to influence the outcome, having been at the heart of the government's work for nearly 3 years at the most senior level, culminating in a discussion with the Prime Minister and BRC members just before the deal was finally agreed. We have lobbied with members since the Protocol was introduced with the EU deal at the start of 2021 for a permanent arrangement with the EU that put consumers at its heart to ensure they continued to get the value and choice they expect. Although easements and grace periods have been available in those 2 years to ease the problems with the Protocol we now have a permanent deal which keeps Northern Ireland in the UK single market.
A summary of the most important developments is below:
- Simplified movement of goods from GB-NI through a trusted trader scheme
- Trusted trader scheme will be widely available
- Checks on movements light touch using forms based on commercial documentation and simplified customs declarations
- All products available in UK can be sold in NI
- Product regulations for food and non food will follow UK standards
- New labelling requirements for some food from 2023 onwards
- Parcel deliveries from GB will not require customs declarations for consumers or businesses
- Plants and trees will follow UK rules and be moved under UK plant passport scheme
- UK medicines and veterinary medicines regulated to UK standards
Further information
Background
The Windsor Agreement is a permanent deal between the UK and EU will covers how Northern Ireland functions within the UK internal market whilst respecting its border with the Republic of Ireland. It covers the movement of goods from GB to Northern Ireland, how those goods are regulated and how businesses demonstrate they are only for sale in Northern Ireland. The last point is crucial as that is required to satisfy the EU there is no risk of leakage of non EU approved goods into its single market.
The Protocol agreed as part of the original UK-EU trade deal created huge problems for the UK single market by requiring goods on sale in Northern Ireland to be produced to EU standards and for full import processes, including certification and customs declarations for products moved from GB. Most of this was never implemented but only due to temporary easements introduced by the UK Government. This Agreement provides a permanent solution to keeping Northern Ireland in the UK market.
This paper picks out the key issues for retailers but more details on the Agreement are available here and guidance notes on sector issues available here
Implementation of the Agreement including more detail on processes will be at the next UK-EU Joint Committee next month. Relevant UK Departments will also be liaising with us and retailers to ensure understanding of the changes in the coming months. In the meantime this document provides a headline summary of key changes and dates.
Moving Products from GB to NI
- Very simple trusted trader scheme open to a wide range of businesses. Existing businesses already part of the scheme will be enrolled automatically. Will be known as UK Internal Market Scheme
- Businesses do not need premises in NI to join the scheme
- Products moved under the scheme only destined for NI will just require information based on commercial documentation – these will pass through the green lane. Only products moving to the EU or the very small number of specific food products will go through the red lane
- Commercial data is shared with Government authorities before arrival in NI
- Requirement for customs commodity codes has been significantly cut, in some cases depending on movement they wont be required, where required the simplified 6 digit codes will be sufficient
- No need to confirm goods have reached destination (channelling)
- No customs checks when entering NI, just random checks to prevent smuggling
Movement and Regulation of Food
- All products eligible for the UK market are permitted (removes problem of EU ban on imports of meat preparations and other products)
- All paperwork to accompany food products reduced to single manifest and lorries need to demonstrate they are sealed when moving
- Manifest does not need to be signed by a vet
- No requirements for certification of food (as when exporting to EU) or supporting paperwork for composite products
- Goods from the RoW can also pass through green lane provided they are produced to UK/EU standards, meet UK public health standards and pose no disease risk. A very small number of products would be required to undergo checks in the red lane where this is not the case
- Food on NI market follows UK production standards, in terms of public health and safety. Those standards cover all food production, organics, marketing, labelling, genetic modification, wines, spirits and mineral water
- NI will follow EU animal and plant health regulations, but that will only create a need for checks at the border where the Government approach to tackling disease differs from the EU
- New labelling requirements for food sold in NI. These changes will be UK wide and will be introduced in stages. October 2023 all fresh meat and dairy products, October 2024 all remaining dairy products, July 2025 composite products, fruit, vegetables and fish. As these are phased in physical checks on vehicles will be significantly cut down to 5%
- As labelling changes will be UK wide, Government will need to agree form of labelling with Scottish and Welsh Governments
- The Agreement allows for requirements on labelling to change if other technological innovations are available to give information to consumers
Non Food Goods
- Produced to UK standards
- No additional labelling
Parcels
- Agreement removes the need for any customs declarations by either business or customer (this is currently the case due to a unilateral grace period from the UK Government)
- From October 2024 parcel operators will need to provide data on movements from GB-NI to combat possible smuggling, more details to follow
VAT
- NI will have same VAT and excise rates as UK
- Will be discussions between UK and EU to try and align where possible
- Businesses will not now need to register for VAT by 2025 as proposed in an EU Directive
Medicines
- UK MHRA will have full responsibility for approval of medicines for sale in NI
- Pharmacies will not be subject to checks imposed by the EU Falsified Medicines Directive
Plants, Seeds and Trees
- All plants regulated for sale in the UK will be available in NI
- Will not be a requirement for certification for each movement of plants to NI. All plants will be moved under the UK Plant Passport scheme
Veterinary Medicines
- Agreement allows for all vet meds authorised by the UK to move to NI until the end of 2025
- UK will work with EU to agree long term system beyond 2025