Saturday, 23 March, 2019

Smugglers' paradise? No deal Brexit plans would keep the Irish border open

A piggy bank with a Euro note London's No Deal Tariff Plan'Sledgehammer for UK Economy- Business IndustryCC BY 2.0 Images Money Piggy bank with Euro Note
Jeannette Daniel | 14 March, 2019, 22:57

However in a seemingly confusing loophole in no deal plan, Northern Ireland's border would remain open for at least 12 months and goods entering from the Republic would not face tariffs to preserve the Good Friday agreement.

He argued that businesses may not comply with new legal obligations in a no-deal scenario "leading to the likelihood of a step change in the scale and significance of smuggling and organised crime".

Alan Sked from the London School of Economics, told RT that he predicts there could be a "small amount" of smuggling, but that fundamentally it would depend on what the Irish did as an European Union member, as Brussels wants controls on goods at the border.

In the auto sector, the government said carmakers reliant on European Union supply chains would not face additional tariffs for vehicle parts imported from the EU but tariffs would apply on imported cars. Unfortunately rather than accept defeat, May refused to back down and recognize the will of Parliament and instead responded by saying a no-deal Brexit is still the default unless a deal is made. VAT registered businesses would continue to account for VAT on their normal VAT returns.

Tariffs would still apply to 13% of goods imported into the UK. Small businesses trading across the border and not now Value-Added Tax registered would be able to report Value-Added Tax online periodically, without any new processes at the border.

McEntee said she agreed with the head of the Irish Farmers' Association that the tariffs flagged on beef and dairy products would be "absolutely disastrous" for Ireland's agriculture sector. Plants and plant products from a non-EU country which have not been previously checked by an EU Member state would also be checked at authorised inland trade premises. However, there would be no checks between Northern Ireland and Britain.

This table summarises applied UK tariffs in key sectors in a No Deal scenario

There will be new United Kingdom import requirements such as document checks and registration for a small number of goods such as endangered species and hazardous chemicals which are subject to worldwide agreements.

In other words, could a Monaghan meat firm move its goods directly to a Glasgow buyer without being subject to tariffs, so long as they move the goods through an NI port?

Meanwhile, the Ulster Farmer's Union suggested that the plans announced on Wednesday would be equally damaging for Northern Irish farmers.

"If we leave without a deal, we will set the majority of our import tariffs to zero, whilst maintaining tariffs for the most sensitive industries", Trade Policy Minister George Hollingbery said.

Northern Ireland Secretary Karen Bradley said: "The Government has been clear that a deal with the European Union is the best outcome for Northern Ireland". These arrangements can only be temporary and short term'.

More news: Trump budget would slash billions from HUD, grant programs

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