NI business concerns through the next trade phase

Some Northern Ireland businesses are worried about the next phase of implementation of the region’s Brexit deal at the end of September.

The main impact was the shipment of some parcels from the UK to Northern Ireland.

Business-to-business packages will need to go through customs for the first time, while package carriers will also need to register with the new trusted merchant scheme.

The Northern Ireland Chamber of Commerce said the government should help bring about the changes and re-engage with the wider Brexit issue in Northern Ireland.

As reported by News Letterpet food company Purina has told its customers it is ending its business-to-business sales arrangement 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 Purina pet food orders by parcel service to professional breeders in Northern Ireland.

“Purina pet food will remain available at retailers and wholesalers in Northern Ireland. We will continue to look for new opportunities to continue our breeder direct delivery service in the future.”

The Northern Ireland Chamber of Commerce’s director of public affairs, Stuart Anderson, said clarity and an important plan was needed on the movement of parcels, “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 business and keep implementation under review,” he said.

“You have made economic growth a top priority, and reducing red tape is essential to achieving that goal.”

After Brexit, Northern Ireland effectively remains in the EU’s single market for goods.

It means a number of new checks and controls have been applied to goods sent from the UK to Northern Ireland – which some have described as the Irish Sea border.

This was originally governed by a UK-EU deal known as the Northern Ireland Protocol. It was revised last year and so Windsor framework.

Under the original deal, most parcels from the UK to Northern Ireland required a customs declaration: something that was never done as a business and the UK government said it could not be done.

The Windsor framework aims to radically simplify the original proposal and also includes measures that give the EU guarantees that these goods will not enter the market.

A UK Government spokesman said it was committed to implementing the framework in good faith and protecting the UK’s internal market.

“We continue to engage with all stakeholders, including businesses and the European Union, to ensure smooth implementation,” he said.

There will be no new requirements for consumer-to-consumer parcels and consumers should see no changes when buying from Great Britain retailers.

But parcel companies carrying goods from UK companies to Northern Ireland consumers will have to be part of a new trusted trader scheme, called the UK Carrier Scheme (UCS).

It will not involve a customs declaration but the company must provide information to HMRC.

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

The main cost is for business-to-business packages that must use the UK Internal Market Scheme (UKIMS).

This includes a simplified customs declaration for non-risky goods moving to the EU.

‘At risk’ goods require full customs processing.

Any business that delivers special packages to consumers does not need to be registered with UKIMS.

The UK’s biggest parcel operator, Royal Mail, said it was working with the government, customers and others to ensure that goods from the UK to Northern Ireland continued to flow smoothly while the changes were made.

Another upcoming change is the requirement for more British food products to be labeled ‘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.

It means that UK traders who deliver food for sale to Northern Ireland consumers must undergo regular inspections and minimal paperwork.

On the flipside of this is using the ‘Not for EU’ label on GB food products, to give assurances to the EU that the product will not be mis-sold in the single market.

In the first phase, the labeling is limited to pre-packaged meat and fresh milk sent from the UK to Northern Ireland.

From October 1, all milk and milk products must be labeled individually at the product level.

The previous government had planned to extend the ‘No to the EU’ label to the rest of the UK, but then put the decision under review and held a consultation.

It is understood that the government is currently still considering the evidence from the consultation and no legislation is yet in place to implement the arrangement.

Meanwhile it has been confirmed that Republic of Ireland agrifood products sent to the UK will not undergo physical checks until next spring.

Products from other EU countries have been subject to these checks since the end of April.

When the UK leaves the EU in 2021, goods from Great Britain to the EU are directly subject to customs and regulatory processing.

However, the UK government is not ready to implement controls on EU goods and the introduction of controls has been delayed on several occasions.

Goods from Northern Ireland directly to Great Britain will not be inspected or controlled as the government has assured them they will have “unfettered access.”