Hopes of a breakthrough post-Brexit Northern Ireland Protocol between the UK and the EU have risen, with an agreement on the way forward.

The EU has agreed to start using a live information system detailing goods moving from Great Britain to Northern Ireland.

The move is seen as a breakthrough in a long-running post-Brexit trade dispute and in a joint statement, UK Foreign Secretary James Cleverly and European Commission Vice President Maroš Šefčovič said an agreement had been reached on the “way forward regarding the specific question of the EU’s access to UK  IT systems.”

The statement was made on 9 January and the pair have set a date for the next meeting.

Brexit divorce deal 

The protocol, agreed upon as part of the Brexit divorce deal, kept Northern Ireland subject to EU standards on goods post-Brexit and avoided the need for a hard border with the Irish Republic.

However, it also created a new trade border in the Irish Sea between Northern Ireland and the rest of the UK.

The EU has now accepted the protocol is causing difficulties for many businesses.

EU staff in Belfast have been asking for transparency on goods flows into Northern Ireland’s ports since early 2021, allowing them to see what goods are entering the country, and how the system is identifying and screening goods bound for the Republic of Ireland.

Route for trusted traders 

EU officials have been testing the UK’s goods data system since last year, while at the same time pressing for changes.

According to a report on the BBC website, one of the changes the UK has proposed is a green lane/red lane system for goods entering Northern Ireland from GB.

Trusted traders would use a green lane for GB goods that are destined only for Northern Ireland, meaning that would not need to be checked and would have minimal paperwork.

Goods bound for the Republic of Ireland would enter via a red lane, where they would be subject to EU controls and checks, while the EU accepts that goods which are staying in Northern Ireland should be subject to a lighter touch.

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The Government has extended the deadline for exporters to move across to the new Customs Declaration Service (CDS).

HM Revenue & Customs (HMRC) has announced that the deadline will be extended by eight months to 30 November 2023, following consultation with the border industry and exporters.

As part of the post-Brexit trade arrangements, HMRC has switched from the Customs Handling of Import and Export Freight (CHIEF) IT system to the new CDS.

Using CDS will be a requirement

Registering for the CDS is a requirement of using the Postponed VAT Accounting system. The CDS will allow you to submit import and export declarations, obtain your postponed import VAT statements or import VAT certificates and pay Customs Duty and import VAT.

The previous deadline for the move was at the end of March 2023.

After 30 November 2023, businesses will need to use CDS to make export declarations for goods they send out of the UK, as they already do for import declarations.

The CDS system for importers came into force in at the end of October 2022.

Time to prepare

Working with industry in delivering and testing critical functionality, as well as the support needed to move to the new system, were among the reasons HMRC moved the deadline.

It gives critical extra time for businesses and stakeholders to prepare their customers and software products for the November deadline.

Significant upgrade

HMRC says that CDS has been running since 2018 and is already being used for making import declarations when moving goods into the UK. The service represents a significant upgrade by providing businesses with a more user-friendly, streamlined system that offers greater functionality.

HMRC will provide further information about the timeline for CDS exports by the end of January 2023. There is more information about using the Customs Declaration Service on GOV.UK.

Need help or advice on post-Brexit international trade? Contact us today.

Under the Northern Ireland protocol agreed with the EU as part of the Brexit deal, suppliers of goods from Britain must complete customs checks.

However, hopes are rising for a solution to the problem of checking goods crossing the Irish Sea post-Brexit, according to a new report.

The optimism comes after data from HM Customs & Revenue (HMRC) showed that 85 per cent of goods from the UK mainland stay in factories or shops in the region and do not move south across the border to the Republic of Ireland.

Movement of goods tracked

Exporters are hopeful after a new HMRC database, the EU Access System, showed it could be possible for the checks to be eliminated.

The database tracked the movement of one million goods crossing the Irish Sea in 2021, according to the Guardian.

The database, which the EU has been testing since 7 November 2022, provides real-time customs and commercial data on everything from agrifood to tractor parts and manufacturing components being placed on ferries bound for Northern Ireland ports.

Customs declarations

The UK hopes it will provide EU officials with the data they need to monitor trade between Great Britain and Northern Ireland and reassure them that systems are in place to prevent the smuggling of substandard goods across the border.

Under the Northern Ireland protocol, suppliers of goods to the region from Britain must complete customs declarations to move goods to Northern Ireland in order to avoid a border on the island of Ireland.

Support for UK exporters

For those exporting to the rest of Europe, the Export Support Service is the Government’s one-stop-shop for advice on European trade.

Traders seeking to start or expand existing global trading operations can ask dedicated experts a range of questions, including:

• Specific advice on exporting to new markets
• What paperwork you will need to sell your goods abroad
• How to make supplementary, export, and customs import declarations
• How to navigate licences, certificates, and authorisations
• Guidance on recognising professional qualifications
• Queries around the rules of origin
• Rules for a specific country or product, such as food, drink, medicinal, pharmaceutical, or animal-derived goods.

How do I use the Export Support Service?

Exporters can ask a question by phone using the details below, or ask a question online here.

• Export support team
  Telephone: 0300 303 8955
  Textphone: 18001 0300 303 8955
  Monday to Friday, 8am to 6pm (excluding public holidays)
  Find out about call charges

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If you are looking to grow your business, then trading internationally can be a great solution.

But deciding to put your business on the global market can be daunting, especially with the additional complexities that Brexit has brought.

Fortunately, the Department of International Trade (DIT) has a range of support that can make the transition easier for those businesses looking to expand into new markets, including:

The UK Export Academy

Trading internationally can be complicated, so you need to make sure you have a basic knowledge before diving in.

The DIT’s UK Export Academy is a free online training programme that aims to teach you everything you need to know about selling your goods or services overseas.

You could get specialised courses that are relevant to your industry.

The Internationalisation Fund

Gearing up to trade internationally can be expensive.

If you need assistance with the initial costs, you could benefit from a match-funded grant from the DIT.

These grants are available to businesses in the UK, and range from £1,000 to £9,000.

According to the DIT’s guidelines, you could be eligible if:

• Your business is classified as an SME (with up to 250 employees)
• The annual turnover doesn’t exceed €50 million (approximately £42.9 million) or the annual balance sheet doesn’t exceed 43 million (around £36.9 million)
• You have no more than 25 per cent of capital or voting rights owned by another company, or companies, if the total ownership group is over the annual turnover or balance sheet threshold
• You own no more than 25 per cent of another company, or companies, under the same rules as above.

Need advice on expanding your business overseas post-Brexit? Get in touch.

A new survey of 500 UK businesses post-Brexit, has found that 64 per cent of SME are aiming to grow in Europe and North America over the next 12 months. 

At the same time, 34 per cent are looking toward Asia Pacific, Latin America, Africa, and the Middle East in 2023. 

The survey by financial technology company Airwallex collected data which indicates that international expansion is seen as a big opportunity for investment from 2023.  

Employee retention important 

Employee retention and investment in people to combat the declining market are also important factors for SMEs raised in the survey. 

In addition, the survey shows that 42 per cent of SMEs are migrating towards digital and fintech platforms as opposed to traditional banking strategies to optimise productivity and reduce costs. 

The report says that to finance international expansion, most businesses are reinvesting profits as a strategy (46 per cent), while the remainder plan to rely on partners (38 per cent), and bank loans (27 per cent). 

Facilitating expansion  

One third of the respondents are aiming to build new trade partnerships and a little over a quarter aim to establish channel partnerships to facilitate expansion in 2023. 

The survey also found confidence in the UK market, where despite the instability of the current market, given the cost-of-living crisis and wider inflation concerns, plans for growing abroad dropped from 85 per cent to 70 per cent when polled in May and October respectively. 

Need help and advice on international trade post-Brexit? Contact us today.