Home WORLD NEWS British exports of EU goods to Northern Ireland incurring Brexit tariffs

British exports of EU goods to Northern Ireland incurring Brexit tariffs

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The Northern Ireland Protocol has angered Unionists who fear it is dividing the country from the UK - Reuters

The Northern Ireland Protocol has angered Unionists who fear it is dividing the country from the UK – Reuters

Businesses are paying EU tariffs on European goods sent to Northern Ireland from Britain because of the Brexit treaty that created a customs border in the Irish Sea.

The Northern Ireland Protocol keeps the country within the EU’s customs territory to prevent a hard border with the Republic of Ireland.

Border checks are carried out on goods entering Northern Ireland from Britain to ensure they meet EU standards in case they cross the invisible border into the Republic.

Manufacturers and retailers warned EU goods sent to Northern Ireland from Britain were liable for tariffs even though they were made to Brussels’ rules and regulations.

Those goods are classified as “at risk” of entering Ireland, they said. That means they cannot benefit from the UK-EU zero tariff trade deal or a waiver for British-made goods.

A government reimbursement scheme on tariffs for goods sold in Northern Ireland is not yet up and running, which risks causing additional cash flow problems for businesses.

Northern Irish businesses demanded action from London and the European Commission to spare firms burdensome administrative costs.

“In many cases it is either impossible or impractical to alter this supply chain,” said Stephen Kelly, CEO of the Manufacturing NI association.

Most UK distribution centres for EU goods are based on mainland Britain.

“The definition of ‘at risk’ goods is far too narrow to allow the flow of trade that Northern Ireland needs,” said Aodhán Connolly, director of the Northern Ireland Retail Consortium.

“We need both the EU and UK to get round the table and hammer out a pragmatic solution that removes paperwork, friction and removes the risk of tariffs,” he said. Some Northern Irish companies are now trying to source goods from Ireland to avoid the red tape, while some GB suppliers have stopped supplying Northern Ireland.

Lord Frost, the Brexit minister, said on Tuesday the chilling effect on GB to NI trade was “pretty strong” in evidence to the Foreign Affairs Committee.

“The whole concept of goods at risk was not properly worked through,” he said before calling for “pragmatism” from the EU.

British sources said they had asked the European Commission to drop the requirement in recent talks with Brussels.

The UK and EU are at odds over the implementation of the Northern Ireland Protocol, which recently led to threats of a trade war over supplies of British sausages to the country.

“Everyday some new issue comes to the fore, which shows that the Protocol is making life more complicated and more expensive in Northern Ireland,” said Sammy Wilson, the DUP’s Brexit spokesman.

The Government said it was committed to establishing the reimbursement scheme. “Further guidance on this will follow shortly,” a spokesman said.

The European Commission spokesman was asked for comment.

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