Policy & Compliance
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A summary of the Windsor Framework The Windsor Framework removes the ‘hard border’ in the Irish Sea between Northern Ireland and the rest of the UK – but there is still much detail to be provided. And the Framework still has to pass into law
important elements are: • Goods from Britain destined for Northern Ireland will travel through a new ‘green lane’, with a separate ‘red lane’ for goods at risk of moving on to Ireland and other destinations within the EU. • Products coming into the ‘green lane’ will see checks and paperwork significantly reduced whilst ‘red lane’ goods will still be subject to normal checks. • There will be a closer alignment of Northern Ireland VAT rules with those of the UK, where previously EU VAT rules could be applied in Northern Ireland. Smoother trade Under the original Northern Ireland Protocol, significant problems had been identified with the import of certain fresh meat products and also plants including seed potatoes into Northern Ireland. From reading the Windsor Framework, BIFA believes that the closer alignment of UK and Northern Ireland regulations will alleviate these issues and facilitate smoother trade in these goods. The Windsor Framework reduces, but does not fully end, the EU’s role in Northern Ireland trade affairs. There are other aspects of the Windsor Framework, such as the ‘Stormont Brake’, which due to their political nature BIFA will not comment on. It is also relevant to remind the reader that at the time of writing, the Windsor Framework had not passed into UK law. The key message at the moment from government is to follow current rules whilst the new regulations and procedures are being finalised.
On 27 February 2023, the UK government and EU Commission announced that agreement in principle had been reached between themselves regarding the Windsor Framework. The Windsor Framework (‘the agreement’) amends the text and provisions of the original Protocol to uphold Northern Ireland’s integral place in the UK. The agreement delivers a form of dual regulation that both parties believe will work for businesses and consumers in Northern Ireland and support the Belfast (Good Friday) Agreement The new Windsor Framework removes what many had regarded as a ‘hard border’ in the Irish Sea between Northern Ireland and the rest of the UK – which is to be welcomed. There is still much detail to be provided on how the new systems will operate in practice. Whilst an ICS Safety and Security Declaration will still be required for goods entering Northern Ireland, the amount of data that will be required in the Customs declaration will be reduced. To quote the text in the Command Paper: “The
agreement puts in place a full set of new arrangements, through a new UK internal market system (or green lane) for internal trade. This will mean that goods being sold in Northern Ireland will be freed of unnecessary paperwork, checks and duties, using only ordinary commercial information rather than Customs processes or complex certification requirements for agrifood.” Sharing accurate data For some time HM Revenue & Customs (HMRC) has been sharing data with its EU counterparts, and it is this ability to share accurate data that underpins the commercial basis of the new agreement. “The agreement establishes a new UK internal trade scheme based on commercial data- sharing, not international Customs processes, for the movement of goods.” While the full details of how the Windsor Framework will work in practice remain to be seen, from trades’ perspective the most
April 2023
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