Trading and moving goods from Great Britain (“GB”) into Northern Ireland (“NI”)

Practical points:

• To avoid EU duty on the movement of goods from GB to NI you need to apply for authorisation for the UK Trader Scheme.
• If you want to declare your goods not “at risk” from 1 Jan-21 you must apply by 31-Dec-20. Once you have notification that your application has been received, if you’ve applied before 28 Feb-21 you’ll get provisional authorisation for up to 4 months whilst your application is processed (provided you don’t have a history of non-compliance/criminal offences).
• To be able to apply you need to be established in NI or elsewhere within the UK but with:
  • Customs operations carried out in the UK
  • A fixed place of business within NI – which can be a branch or store
  • An indirect customs representative in NI e.g. Trade Support Service.

You must also have:

• A good customs and tax compliance record
• Have no record of serious criminal offences related to your economic activity
• Records, systems and controls in place that allow you to declare and evidence that goods are not “at risk” e.g. good are sold to customers in NI.
• Evidence to show HMRC on request that your goods were correctly declared as not “at risk”

To do the application you’ll need:

To apply go to:

https://www.gov.uk/guidance/apply-for-authorisation-for-the-uk-trader-scheme-if-you-bring-goods-into-northern-ireland-from-1-january-2021

Fill in the form save to your computer and email to uktraderscheme@hmrc.gov.uk with any supporting documentation. Type your EORI number in the subject of the email. You need to include proof of permanent business establishment or document of establishment. Whilst not mandatory, you can also provide evidence of your record keeping.

You’ll receive a notification confirming receipt. You’ll then be provisionally authorised (unless you are separately notified by us that you are not eligible due to your compliance history). Once fully authorised you will get a further notification and you will receive a letter with your UK Trader Scheme authorisation number.

Additional Guidance for Processing Goods:

If you move goods for processing in NI you’ll also need to either:

1. Provide your turnover for the most recent financial year stating that this is below £500,000; or
2. Declare that you intend to bring goods for processing into NI for one or more of the following sole purposes:
   • Food for sale to end consumers in the UK
   • Construction, where they used to form part of a permanent structure that is constructed and located in NI
   • Direct provision of health or care services by the importer in NI
   • Not For Profit activities in NI where there is no subsequent sale fo the good by the importer
   • Final use of animal feed on premises located in NI by the importer

Additional Guidance for Records, Systems and Controls:

You’ll need to give details of the records, systems and controls you have in place to allow you to accurately declare goods are not “at risk”. They must be specific and appropriate to your business and show:

• • Where you move goods from
  • How they’ll be used or sold in the UK or NI where appropriate

For small or medium sized businesses, you do not need complex systems but they should be appropriate to your size, nature and complexity. 2 examples are given:

• Large business – may have a logistical software that tracks goods from import to end user
• Small/medium size – explain internal processes or procedures in place which allow you to document goods you import and evidence they are not at risk via sales and purchase records.

At authorisation you should give:

• details of systems and processes to track goods from import to end use.
• Documented processes and administrative systems to determine whether goods are “at risk”
• Internal controls and processes that ensure goods were correctly declared not “at risk”
• Commercial or transport records – e.g. delivery records or inventory systems which confirm end use of goods.

Get in touch with Damian Shirley, our Indirect Tax Partner and lead on all things Brexit, at damians@cooperparry.com