Post-Brexit Costumes Implications could be dire for the UK, as revealed in Irish Parliament Draft Report of September 2017!

The Republic of Ireland Parliament has started their works and their initial searching for solutions Post-Brexit. This September Draft report from the Irish Parliament is more structured and more explained than any of the ones offered the public from the United Kingdom counterparts. The Irish government clearly are open within their troubles and possible hurdles in the new state between Republic of Ireland as a Member State in the European Union and United Kingdom on the outside. This will significantly change the prospects of trade, movements of goods and direct costumes operations within Ireland and in the United Kingdom. The Brexit agreement between the EU and UK will be vital to the borders and trade between the neighbor states.

Out of the report, this is for me, the vital quotes, that significantly says what it means for both parties. They are really explaining clearly the impact and being direct in the problems that are coming with Brexit. Something certainly the British should look into, if they wants to have good trade and movement of goods to and from Ireland. This will not happen as it is done today, since the United Kingdom will need new regulations and new sorts of security checks. Since they are not a member state and in the new system need to follow other protocols of movement than of today.

Brexit implication:

There are two distinct processes in the e-manifest procedure, depending on whether the goods are non-union or union goods. Currently goods coming from the UK are union goods and, while a manifest is required for the enforcement of national prohibitions and restrictions, there are no systematic controls imposed on these goods. However, post Brexit these goods will be non-union goods and as a result the manifest will be fully processed and the goods in question will not be released until all customs formalities have been completed” (Oireacthas, P: 8, 2017).

Goods to the UK:

Goods to be exported to the UK will need to be presented to customs at the customs office of exit11 and be made available for examination if required. This extra layer of formalities for movements that are currently intra-union movements will not only place a considerable administrative burden on traders it will also have a negative impact on trade flows and delay the release of goods” (Oireacthas, P: 10, 2017).

Goods passing through UK:

Under transit, it is possible for goods to proceed directly to an inland location before customs formalities need to be completed. Where a trader wishes to move goods arriving from or through the UK directly to their premises they will need to be approved as an authorised consignee and also have the appropriate premises approved as a Temporary Storage facility as the goods will have the status of non-union goods. Where traders are not approved as authorised consignees then those goods declared for the transit procedure would be required to be presented at the declared customs office of destination for control purposes and in order to end the transit procedure. This in effect would require that current Revenue offices not assigned the function of a customs office of destination in NCTS would need to be assigned that status and be in a position to provide suitable examination facilities where necessary controls can be performed. Providing suitable facilities and associated human resources may prove difficult for Revenue” (Oireacthas, P: 13-14, 2017).

If this isn’t seen as important for the British, the United Kingdom and their possible trading operations with Ireland and the whole European Union. Than they better come up with solutions. If not they have to trade Yorkshire Tea with themselves and Tetley can be sold just within the Kingdom. Since it will be expensive with routine checks and costumes arrangements to fix the new hurdles for people who orders their stocks into their shops. They rather pick up another brand with similar flavor of their tea, than ordering the famous British tea suppliers. Why take Lipton, when you can order a French Tea without any problems and time consuming costumes and tax-operation. This is what that can appear, as well as sudden extra time in storage and other new need of expenses. That will mean the costumers will have to pay the extra prices for the same product, as well as pay for the added time it takes before the products hit the market.

This is just between Ireland and the United Kingdom. If you we’re too consider all member states of the Union, you know the issue becomes more dire for the United Kingdom. That these issues will hit their trading partners, the producers and the ones that produced and exported products for decades. Will be hit or have to become more expensive abroad, this may even make the consumers in outside markets pick other products than the British. Why pay more for British, when the French has a similar tasting product? Why buy an extra expensive British Cheese, when the Belgian one taste as good?

So if the Costumes and added taxes between UK and EU Members States grows, that will make the products less worth as it will be more luxurious and less of common product in the shelves. Also, that the time consuming import together with the cost of transit, manifests and checks of the products. Will also hurt the bottom-line and the profitability of imports from British producers. This should worry all producers and factory made product-lines that is made for exports. The Irish government has clearly outlined the issues and are striking factors for simple movement of goods between the states. It might not become so hard, but the possibility is still there. Peace.

Reference:

Oireacthas – ‘Brexit and the consequences for Irish Customs – DRAFT’ (September 2017)

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