By Ciarán McConigley and Martin Agnew – Directors, Across Borders Consulting Ltd.
Though Brexit has been a legal reality since the 31st of January 2020, people and business in Ireland have largely been insulated from the consequences because of the existence of the 11-month long transition period taking us to the end 2020. This continues to bind the UK to the EU customs union, single market and rules meaning little has practically changed.
The 31st of December will mark the beginning of a new trading reality for business in Tipperary that they will need to adapt to moving forward. While we await the outcome of negotiations at the time of this article, there are steps businesses in Tipperary can and should be taking now to prepare for a “Deal” or “No-Deal” outcome.
The EU and UK are engaged in ongoing Free Trade Agreement negotiations, and at the time of writing this article we await a decision on these negotiations for the end of the year. It is important for businesses to be aware that a Free Trade Agreement would minimise tariffs but will not mean customs controls will not be introduced. There will be controls regardless.
In addition, a Free Trade Agreement does not necessarily mean all customs tariffs will be removed for products moving between Great Britain and Ireland. These details are subject to line by line agreement of product classification duty rates in negotiations.
Given these facts, companies need to make the same preparations, regardless of whether or not a Free Trade Agreement is in place from the end of this year.
Who will be affected?
The end of the transition period will mean business in Ireland that are:
What companies need to do
With such a small-time frame left to prepare, the one certainty we know is that goods moving between the UK and Ireland will be subject to customs control from 01 January 2021.
Companies must prepare now.
Irish Companies receiving products from and sending products to/through Great Britain should take the following critical actions:
About Across Borders Consulting Ltd.
Across Borders Consulting specialises in providing customs and trade advice to companies preparing for Brexit and have a presence in Tipperary. Please contact us around any aspect of your preparations for the new trading reality and for assistance to access Brexit financial supports.
Across Borders Consulting Ltd.