Brexit: Where Do We Stand Now?

29 September 2020

Carol Lynch, Partner and Ben Twomey, Customs Specialist, BDO Customs & International Trade, discuss the current status of negotiations and recommendations for Irish importers and exporters in preparing for Brexit in the Irish Tax Review | Issue 3, 2020.

The position on Brexit from a customs and trade perspective is now two-fold:

  • The transition period ends on 31 December 2020.
  • Talks are still in progress between the UK and the EU on a free trade agreement (FTA), with significant areas of dispute still in play.

In terms of the impact on Irish businesses with UK trade, firstly, as the transition period will end on 31 December 2020, from 1 January 2021 all Irish importers and exporters will be required to lodge customs declarations with Revenue to account for their imports and exports. This has been confirmed by the EU, and there will be no derogation or simplification allowed regarding this requirement.

Secondly, customs duties will be payable on import unless there is a successful conclusion to the FTA discussions. At this point it is clear that any FTA will be a “bare-bones” agreement. What we do not know, however, is whether any final agreement will cover all products or be restricted to certain categories. In the event of the FTA talks being successful, importers and exporters will still have to provide proof of origin
to qualify for the duty reductions.

Many Irish companies are now having to try to understand customs taxes and trade legislation for the first time, given the confirmed requirement to lodge customs declarations on purchases from and sales to the UK. The purpose of this article is to look at the essential points to consider. Read the full article below.

Brexit: Where Do We Stand Now?

This article first appeared in Irish Tax Review, Vol. 33 No. 3 (2020) © Irish Tax Institute