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Windsor Agreement changes take effect

Effective from the 30th September the new UK Internal Market Scheme (UKIMS) replaced the UK Trader Scheme (UKTS) for shipment to Northern Ireland (NI) and will enable GB businesses to declare goods “not at risk” if goods are for sale or final use by end consumers in the UK.

The Windsor Framework was agreed in February to ease post-Brexit trade between GB and Northern Ireland (NI) and while there is a continuing lack of clarity over the details, the Framework began to come into force on Sunday the 1st October.

Prior to the Windsor agreement shippers submitting a simplified declaration, under the UK Trader Scheme (UKTS), which complied with the Safety and Security declarations required by the Ferry operators, with a supplementary declaration is made in NI, providing commodity codes, value of goods, and additional information statements.

Most critically, a percentage calculation of the goods “risk of moving to the South” is applied and the consignee invoiced for the duty value of potential sales.

In a very welcome move the Windsor Framework introduces, a scheme to reimburse EU customs duties paid on goods that moved into NI and were not sold or used in the EU. The Customs (Northern Ireland: Repayment and Remission) (Eu Exit) (Amendment) Regulations 2023.

The agreement establishes the new UK Internal Market Scheme (UKIMS), which is being phased in from 30th September and will enable GB businesses to avoid duty payments by declaring goods “not at risk” if they are brought into Northern Ireland for sale or final use.

They will, however, be charged UK duty if entering Northern Ireland from outside the EU and the UK, or if the goods were not in free circulation in GB.

The Windsor Agreement introduces notional Red and Green lanes for trade between GB and NI, which take full effect from next September and it is worth noting that both lanes are ‘virtual’ and no physical lanes, or markings exist.

Green Lane

The Green Lane ends the requirement for traders to provide customs commodity codes; scraps supplementary declarations and means that businesses can move their goods simply using commercial information.

Focus is on goods with the most onerous SPS compliance obligations, including products of animal or plant origin, food and food products, and regulatory easements do not exist for all types of goods.

Traders will need to be registered on the Northern Ireland Retail Movement Scheme (NIRMS) for transport of SPS goods and the UK Internal Market Scheme (UKIMS) for general goods.

The UK Trader Scheme authorisation is no longer valid, so goods moving on or after 30th September 2023 must use the UK Internal Market Scheme (UKIMS) to declare goods ‘not at risk’ of entering the EU, if the applicable EU duty is greater than zero.

Green Lane Process
– Trader uses commercial info and submits to Trader Support Service (TSS)
– Haulier obtains GMR
– Goods are moved

In a recent development HMRC has confirmed that the Trader Support Service will be extended until the 31st December 2024 and will continue as a free to use service. Educating traders on applicable processes and supporting them to submit customs and safety and security declarations.

Red Lane

Goods not for final consumption in Northern Ireland must go through a red lane and ‘At risk’ goods will be charged the applicable EU duty.

Red Lane Process
– Haulier completed Entry Summary Declaration (ENS)
– Simplified Frontier Declaration (SFD)
– Haulier obtains GMR
– Goods are moved
– Supplementary declaration
– Pay duty

The current lack of clarity suggests that lorries containing a mix of cargoes eligible for the green lane, will need to go through the red lane, even if just one consignment entering NI is in the red lane.

This is clearly not practical and the government is being lobbied for clarification by Logistics UK and other impacted trade associations.

We will continue to share information on the Windsor framework processes, as they become clear and available.

Our customs team are working directly with clients that trade with NI, to ensure that they are prepared and compliant with new customs processes, declarations and requirements.