In most other times in our history the looming end of the Brexit transition period would be in the headlines almost every day, however a global pandemic which has in some way impacted all of our lives has blown everything else out of the water. If it is possible, I want to set Covid-19 aside for a moment and speak to businesses about what steps can be taken to prepare for the end of the transition period.
First of all, let us briefly recap about the circumstances in which we find ourselves. While the UK formally left the European Union back in January, we have since been in what is known as a transition period, which effectively kept our trading relationship exactly the same as if we had still been in the EU. So, if you haven’t noticed any changes, that’s because there haven’t been any - yet. However, this transition period is due to come to an end on 31 December 2020, after which point the new trading landscape will commence.
This is where it gets complicated because, under the Withdrawal Agreement - effectively the divorce deal agreed by the UK and EU - Northern Ireland will have a different relationship with the EU than will Great Britain. The Northern Ireland Protocol states that NI will continue to follow EU regulations on goods and products of plant or animal origin. In addition, unlike the rest of the UK, Northern Ireland will also follow the rules of EU’s Union Customs Code. There are still details we don’t know, as many areas are still subject to ongoing negotiation between the UK and the EU, however, the most notable consequence of these new rules will be additional requirements on businesses when moving goods from Great Britain to Northern Ireland.
In order to assist with these additional requirements the Government has established, at huge cost, a Trader Support Service. This service is optional and businesses can register free of charge. I would encourage all businesses which suspect they may require to move goods into Northern Ireland from GB to sign up. There is absolutely no harm in registering even if you then don’t end up using the service, but it could save you considerable time and effort in the future if you do. Other steps you can take include ensuring you have an EORI number, which you can apply for on the Gov.uk website. From 1 January 2021 you’ll need an EORI number that starts with XI to move goods between Northern Ireland and non-EU countries, including Great Britain. Another action is finding out the commodity codes for the goods you buy and sell and bring in from GB. For goods you are purchasing your supplier may know already and can share this with you. This is information that you will be required to input into the Trader Support Service in order to comply with customs requirements, so finding out this information will be helpful and timesaving.
A basic step which can greatly assist your business in many situations - not just in the context of Brexit or Covid - is knowing your supply chain. Understanding where your goods are sourced from, how they travel to get to you, thinking ahead to where costs can potentially increase or delays arise, or where availability may reduce in the future is a useful planning exercise for any business. Gathering evidence about where you sell your products, or where your customer sells them, will also come in handy as, post-transition, you may have to prove if goods travelled into the EU or not, and if evidence is not available a principle of ‘guilty until proven innocent’ may apply, and you could be liable for a tariff. This is not an exhaustive list of things which business must consider, and I would urge you to take a look at NI Business Info’s ten-step checklist for the key actions that your business must take to get ready for the changes at the end of this year.
While I understand completely that many businesses are facing a fight for survival, with a war on two fronts against coronavirus and the end of transition, it is nevertheless important that you take steps to prepare. It’s not too late to start planning, however, the time to act is now. While we still don’t know how all the final details regarding the UK-EU relationship will pan out, it is vital that we plan on the basis of the facts that we currently know. As former General and later President Eisenhower is thought to have said, “plans are useless, but planning is essential.”