With talks deadlocked and a major vote scheduled for the House of Commons tomorrow (12th of March), the outcome of Brexit is as uncertain as ever.
If the vote tomorrow is rejected it looks likely that there will a vote on whether the UK should leave without a deal or not. If the “no deal – no compromise” wing of the Conservative party win out on this vote, then the chances of a disorderly Brexit increase significantly, which will have major ramifications on many Irish businesses, especially in regards their supply chains.
In preparation for a worst-case scenario and in order to minimise disruption Irish revenue have launched a series of nationwide Brexit seminars. In the worst-case scenario, the UK will be treated as a 3rd country for customs purposes. Similar customs hurdles many companies face in importing and exporting to no EU countries such as the US, will apply to the UK.
Therefore, when importing from the UK, a customs declaration will have to be made to Irish customs and your imports will generally be subject to payment of duties and VAT. Declarations are generally made by customs agent. The amount of duties and VAT payable depends on the product being imported. In addition, your goods may be inspected and could also require you getting an import licence as the UK will be no longer an EU member state.
The same type complications will be also applicable to exports, in regards VAT & Duties, Inspections, Export licenses (etc). Even if the UK is not your destination but your goods transit through the UK to the EU, you will be required to make a customs declaration and provide a financial guarantee.These in-transit goods through a 3rd country may also be subject to customs inspections.
If you wish to continue trading with the UK, you will need to apply for an EORI (Economic Operators Registration and Identification) number from Irish Customs and Revenue.
All the above could be a huge change and cost for many Irish companies. Also, if you do not provide all necessary data accurately and on time, your goods coming in from or going to the UK could be delayed.
Many Irish companies who export/import solely to UK & EU (which currently includes the UK) may not have experience in the above. Therefore, attending one of Irish Revenues Brexit seminars should be a priority in order to minimise the disruption to your business operations.