Following the UK’s exit from the EU there have been many changes to the way we trade, including the introduction of The Windsor Framework. From the 30th of September 2024 the use of red and green lanes will be implemented in a bid to simplify the way you trade with Northern Ireland and the Republic of Ireland, which remains in the EU. In this document I aim to outline the changes and what they mean for you. The information within this document has been provided by experienced customs advisors and the HMRC. While we are still waiting for further updates, which we will provide in due course, the information provided is there to assist you with continuing to trade seamlessly, and ensure you are prepared ahead of the upcoming deadlines.
What is UKIMS, and do I need to register for it?
The United Kingdom Internal Market Scheme was introduced to support any business moving goods between Great Britian (GB) and Northern Ireland (NI) to ensure that traders do not pay tariffs on those goods.
Any business wanting to make use of the Green Lane will need to be registered with UKIMS to do so. Without registering, your goods will default to the Red Lane, where your goods will be subject to EU Duties and VAT.
Should your goods be found to have passed through the Green Lane, but traversed into the EU, you are at risk of fines and removal of your UKIMS authorisation.
To apply for UKIMS you can follow the link below, where you will find information on what you will need and who can apply.
Apply for authorisation for the UK Internal Market Scheme if you bring goods into Northern Ireland – GOV.UK (www.gov.uk)
How to classify your goods
Green Lane
Goods passing through the Green Lane will
not require full customs declarations and
will benefit from reduced checks. The
focus on these goods will be commercial
data sharing.
Red Lane
Goods destined for the Republic of Ireland
(EU) will be subject to full customs
declarations and regulatory checks to
ensure that the goods meet EU standards
Green Lane Customs
Goods moving via the Green Lane will benefit from reduced and simplified checks, no longer having to have full clearance to move between GB and NI. These goods however must remain in Northern Ireland. Any goods which move into Northern Ireland via the Green Lane must not then pass down into the Republic of Ireland; to do so you will risk fines and the removal of your UKIMS authorisation. Parcels which are sent for personal use will not require customs declarations, however parcels sent between businesses will be required to comply with the Green Lane rules to share the commercial data with HMRC, without the comprehensive customs documentation.
Red Lane Customs
Goods moving via the red lane will be subject to full customs clearance, and the goods will need to comply with EU standards, complete with any documentation such as sanitary and phytosanitary certification. These have been the standards which we have been adhering to until this point, and there will be very little change going forward. Any applicable EU Tariffs must be paid; however, some may qualify for preferential treatment due to trade agreements. Goods which are destined for the EU, but initially pass into Northern Ireland, will fall under the Red Lane. Full customs clearances will need to be completed and the goods must comply with all EU standards, complete with any certification the goods require.
Why have these changes been made?
The changes have been put in place to ease trade between UK and EU markets, reducing the requirements for those who are trading internally and protect the EU from non-compliant goods entering.
IMPORTANT NOTIFICATION
REGARDING IRISH EORI NUMBERS
In May 24, the EU commission conducted a review of all Irish EORI numbers to ensure compliance with EU EORI legislation. From this review it was noted that the majority of Irish EORI numbers are currently non-compliant, this is due to postcode/Eircode’s not being provided upon registration.
All registered Irish EORI holders were then contacted to update their addresses. As of the 1st of September 2024, anybody holding a non-compliant Irish EORI will face rejected declarations.
It is therefore paramount that you ensure your Irish EORI is compliant, by updating any information which has been requested, as from the 1st of September 2024 the Commission Services will implement validation of all EORI numbers on the ENS, AIS, Indirect Exports and Transits.
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