Policy & Compliance
It is planned that, from October 2024, the Windsor Framework will ensure ‘not at risk’ movements are freed of unnecessary paperwork, checks and duties How the Northern Ireland frontier changes will work
S ince, and stemming from, the Brexit referendum result there has been almost constant change in Customs and related frontier activity. Nowhere is this more true than in Northern Ireland, the people of which have had to endure the false start of The Northern Ireland Protocol and now the Windsor Framework, which currently does not seem to be delivering all the hoped-for benefits. It is important to bear in mind that the implementation of the Windsor Framework is having impacts on the UK mainland as well. Government is having to divert resources, including financial, away from important projects such as improving CDS to implementing the Windsor Framework. The different initiatives required to implement the Windsor Framework have been released at different times. The purpose of this overview is to bring them together so the new individual processes can be viewed as a whole. However, not all the details are clear and further guidance is needed from government. UK Internal Market Scheme The Windsor Framework establishes a new voluntary scheme, the UK Internal Market Scheme (UKIMS), for the movement of ‘not at risk’ goods into Northern Ireland from the UK mainland. At the time of writing this article, the scheme, which has been open for registration for much of this summer, was due to replace the UK Trader Scheme (UKTS) from 30 September 2023, although some details remain unclear. UKIMS will continue to enable registered traders to move goods in line with existing ‘not at risk’ arrangements. It is planned that, from October 2024, it will ensure that ‘not at risk’ movements are also
freed of unnecessary paperwork, checks and duties. We feel it relevant to highlight the word ‘unnecessary’ in the previous sentence – the Windsor Framework is about reducing unnecessary checks, but some checks will remain. Government believes that the scheme significantly increases the number of businesses eligible to move goods ‘not at risk’ of entering the EU through three important changes: 1. All businesses established in the UK are eligible and will move away from the previous restrictions that required a physical premises in Northern Ireland. 2. Government will increase the turnover threshold below which companies involved in processing can move goods from the current £500,000 limit up to £2 million. 3. Even if businesses are above that threshold, they will be eligible to move goods under the scheme if those goods are for use in the animal feed, healthcare, construction and not-for-profit sectors. They will be able to do this even if they sell-on the eventual product to one subsequent entity in the supply chain, in a significant improvement to existing arrangements. Inputs into food production will continue to benefit from inclusion in the ‘not at risk’ definition. At the time of writing, it was envisaged that from 30 September the UKTS would no longer be used as the authorisation for moving ‘not at risk’ goods into Northern Ireland. Traders will need to use their new UKIMS authorisation. At this point it is relevant to emphasise that the UKIMS scheme is voluntary and that traders can complete normal frontier clearance
activities to clear goods into Northern Ireland if they so wish. Duty reimbursement scheme As a result of the Windsor Framework, the government is able to meet a longstanding commitment to bring forward a duty reimbursement scheme to allow traders to reclaim EU duty paid on goods that can be shown not to have entered the EU. This scheme was launched on 30 June and can apply to goods moved since 2021. Customs Duty Waiver Scheme From January 2024, the government will also be expanding the support provided to businesses through the existing Customs Duty Waiver Scheme. This will mean that in the New Year, the maximum value of duties able to be waived over the course of three tax years for ‘at risk’ goods moved into Northern Ireland will rise to €275,000 (~£235,000) from the current level of €200,000 (~£170,000). Moving goods from Great Britain to Northern Ireland - sanitary and phytosanitary products The Windsor Framework also sets out dedicated arrangements to support the critical flow of agrifood retail products into Northern Ireland. These movements are currently supported under the Scheme for the Temporary Agrifood Movements to Northern Ireland (STAMNI). STAMNI is being replaced in October 2023 by a new scheme, the Retail Movement Scheme. This will
“ The Windsor Framework is about reducing unnecessary checks, but some checks will remain
10 | October 2023
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