Northern Ireland Protocol Bill

BY:

Gail Leeson
20 June 2022

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Traders in Northern Ireland may be met with more compliance challenges should the Northern Ireland Protocol Bill be implemented by the UK Government.

The proposed Red/Green channel that could replace declaring goods to be At Risk of onward supply to the EU, could mean that NI traders will need to be conversant with and compliant to both UK HMRC regulations and the Union Customs Code, the EU regulations.


Likewise, should a business wish to trade with both the UK and the EU, compliance to pertinent goods standards will need to be evidenced to support trade, in whatever direction the goods go. Further adaptation will be needed to a trader’s adherence to trade compliance if there is no regulatory harmonisation between EU and UK standards. 


Clear official guidance will be necessary to enable good compliance working practice.


Some pre-EU Exit requirements will remain the same for some goods. For example, compliance for the movement of live animals will remain in place as a given.


Some goods will remain as ‘qualifying movements’, and checks will not be necessary from GB to NI. There is provision within the legislation for the term ‘qualifying movements’ to be expanded or amended, should this be determined necessary by the UK authorities to ease the movement of trade. There is also provision for the dual regime (UK and EU regulatory compliance) to be ‘switched off’ for certain types of goods. 


The NI Protocol Bill places compliance responsibility firmly on the NI trader, although the detail of how the trader will be customs audited is detail that will filter down in due course.


Businesses will need to understand and comply with whatever standards and customs regulations they choose to follow, and if necessary, make provision for both.


A link to the proposed Bill can be found below:

https://bills.parliament.uk/bills/3182


The FCDO explanatory notes for the Bill are below

https://publications.parliament.uk/pa/bills/cbill/58-03/0012/en/220012en.pdf


EU reaction to the NI Protocol Bill: - Q&A link below

https://ec.europa.eu/commission/presscorner/detail/en/QANDA_22_3679


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