New scheme set to help UK businesses reclaim tariffs on NI trade

Tax | | MIC Customs Solutions |

The UK government has announced a new scheme to reimburse traders for tariffs on shipments to NI will start from the end of June.

The UK has announced the launch of a new scheme that will enable traders shipping goods to Northern Ireland to reclaim tariffs on items that do not end up in the EU.

It will come into operation from the end of the month, with the government explaining it has been made possible as a result of the revised post-Brexit EU-UK protocol known as the Windsor Framework.

Since the UK left the EU, companies sending goods from Great Britain to Northern Ireland have been required to pay tariffs on products that were deemed to be at high risk of being shipped onwards to the Republic of Ireland.

However, until now there has been no way for businesses to claim reimbursement for these levies, even if they are able to prove the items remained in the UK. This will change as of June 30th, with traders able to make claims for any goods shipped since 2021.

The announcement was part of the publication of a range of new information and guidance for businesses about how trade to Northern Ireland will change as a result of the Windor Framework.

This included confirmation that as of September 30th, the existing UK Trader Scheme will be replaced by a new UK Internal Market Scheme. 

The government said: "This will enable a broader range of businesses to enjoy the benefits of the existing scheme. It will also, as of September 30th 2024, ensure goods moved into Northern Ireland under the scheme will be freed of unnecessary paperwork, checks and duties."

Other announcements included an expansion of the Customs Duty Waiver Scheme, meaning that from January next 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, up from from the current level of €200,000.