Northern Irish businesses concerned about next phase of trading

Some businesses in Northern Ireland are concerned about the next phase of the Brexit deal’s implementation in the region, scheduled for the end of September.

The main impact will be on the shipping of some parcels from Great Britain to Northern Ireland.

Business-to-business parcels will require customs procedures for the first time, while parcel carriers will also have to register with a new trusted merchant system.

The Northern Ireland Chamber of Commerce has said the government must contribute to the impending changes and re-engage on the wider issues surrounding Brexit in Northern Ireland.

As reported by the NewsletterPet food company Purina has already informed customers that it is ending a business-to-business sales agreement in Northern Ireland.

The company said: “We are sorry to confirm that from Friday 6 September 2024 we will no longer be able to deliver orders of Purina pet food via parcel services to professional breeders in Northern Ireland.

“Purina pet food will remain available from retailers and wholesalers across Northern Ireland. We will continue to look for new opportunities to resume a direct delivery service to farmers in the future.”

Northern Ireland Chamber of Commerce public affairs director Stuart Anderson said clarity and an urgent plan were needed on parcel movements, “as well as other issues including the operation of the trader support service beyond 2024 and access to veterinary medicines”.

“The government must continue to listen to businesses and constantly review implementation,” he continued.

“Economic growth has become a top priority and cutting red tape is essential to achieving this goal.”

After Brexit, Northern Ireland remained de facto within the EU’s single market for goods.

This means new checks have been applied to goods sent from Britain to Northern Ireland – which some have described as the Irish Sea border.

This was originally governed by an agreement between the UK and the EU known as the Northern Ireland Protocol. It was revised last year and became The Windsor Frame.

Under the original deal, most parcels going from Britain to Northern Ireland would have required customs declarations: this was never implemented because businesses and the British government said it would be impractical.

The Windsor framework aims to radically simplify the original proposal while including measures that give the EU confidence that goods will not enter its market illicitly.

A UK government spokesperson said it was committed to implementing the framework in good faith and protecting the UK internal market.

“We continue to work with all stakeholders, including businesses and the EU, to ensure its implementation is as smooth as possible,” they added.

There will be no new requirements for consumer-to-consumer parcels and consumers should not notice any changes when shopping from UK retailers.

However, parcel companies transporting goods from UK companies to consumers in Northern Ireland will have to be part of a new trusted trader system, called the UK Carrier Scheme (UCS).

This will not involve customs declarations, but businesses will need to provide information to HMRC.

For example, they will need to demonstrate that they have a process in place to determine whether their customer’s goods are being sent to an individual or a business.

The biggest charges will be for business-to-business parcels which will have to use the UK Internal Market System (UKIMS).

This is a simplified customs declaration for goods that are not likely to enter the EU.

“At risk” goods will require full customs procedures.

Any business that exclusively sends parcels to consumers will not need to be registered with UKIMS.

Royal Mail, the UK’s largest parcel operator, said it was working closely with the government, customers and others to ensure goods from Great Britain to Northern Ireland continued to flow smoothly when the changes were implemented.

Another upcoming change is the requirement for a wider range of British food products to be labelled ‘Not for EU’ when sold in Northern Ireland.

Under the Windsor Framework, UK public health and safety standards, rather than EU standards, apply to food and drink sold by retailers in Northern Ireland.

This means that UK traders sending food for sale to consumers in Northern Ireland should face few routine checks and minimal paperwork.

The flip side of this is the use of ‘Not EU’ labels on British food products, to assure the EU that the products will not be mis-sold in its single market.

In the first phase, this labelling was limited to pre-packaged meat and fresh milk shipped from Great Britain to Northern Ireland.

Starting October 1, all milk and milk products will need to be individually labeled at the product level.

The previous government had planned to extend the ‘Not for EU’ label to the rest of the UK, but later reviewed the decision and held a consultation.

It appears that the current government is still studying the results of the consultation and that no legislation to give effect to these provisions has yet been adopted.