Summary
If suitably modified the Irish government proposals for the establishment of special customs clearance arrangements in EU channel ports to facilitate the continued use of the UK ‘land bridge between mainland Europe and Ireland could potentially offer solutions to some of the cost increasing post-Brexit complications which will arise along existing triangular supply chains (e.g. for goods exported from an ACP country via a EU27 member state to the UK). ACP governments should keep a close eye on the development of this Irish government proposal and at an early stage raise the issue of the possible elaboration of similar arrangements for ACP goods enjoying the same duty free-quota free access to both the EU and UK markets and facing the same health and food safety inspection requirements.
Press reports suggest the Irish government is looking for an arrangement as part of the Brexit process which will allow the continued use of the ‘the UK as a “land bridge” for goods in transit to Dublin without border checks’. This would see goods undergo checks in Calais, be ‘sealed’ and then be allowed transit to Ireland via Calais and Holyhead without any need for further customs checks. This is seen as important since ‘customs declaration forms were long and detailed’, with 54 areas to be addressed and with this being ‘not just a box-ticking exercise declaring goods and their origin and destination’ (1). Such arrangements would mean that EU27 goods destined for Ireland would have been checked at an EU border and hence this would preserve the integrity of the single market (2).
According to a senior Irish customs and revenue official Carol-Ann O’Keeffe negotiations on such arrangements are currently underway (1). These discussions are consistent with Chief Negotiator Barnier’s efforts to de-politicise the Irish border issue by focussing on ‘nuts and bolts’ issue. Addressing a Parliamentary select committee in the UK Chief Negotiator Barnier emphasised his desire to ‘look at the individual controls that are necessary’ and to see ‘how and when and where these controls would take place’. He argued before the Committee that such controls ‘could be dispersed. They could take place in different places, on board vessels, in ports outside Ireland, they could be done using technological means, they could be dispersed, as I said, or simplified in technological terms’ (2). The EU is thus open to pragmatic solutions to the Irish border question which maintain the integrity of the EU single market. The Irish government for its part is ‘pressing ahead with detailed plans for customs and health checks in Irish ports and airports in the event of no deal.’ (1).
A range of concerned private sector bodies are busy seeking these types of pragmatic ‘nuts and bolts’ solutions to future cross-border trade. In June 2018 the European Liaison Committee for the Agricultural and Agri-Food Trade (CELCAA) but for a range of concrete suggestions, including amongst others:
- assistance schemes for agro-food operators involved in EU27/UK trade who are unfamiliar with standard 3rd country trade treatment arrangements in adjusting to the new trade realities;
- the streamlining of border procedures including through moving the conduct of phytosanitary checks inland so as to reduced pressures on border post infrastructure and reduce waiting times at ports;
- promotion of a reformed Authorised Economic Operators (AEO) scheme to simplify and reduce the costs of such a scheme whist simultaneously minimising security and safety related controls;
- the ‘use of the Registered Exporter System (REX) to facilitate the handling of certificates of origin, based on the principle of self-certification by economic operator’;
- the promotion of greater ‘clarity over future re-export/transit rules and procedures is also essential for operators’;
- ‘mutual recognition of food safety standards’, with this being extended to recognition of trade documentation dealing with imports from 3rd countries (3).
There are thus a range of options being put forward to try and address the ‘nuts and bolts’ of future EU27/UK agro-food sector trade.
However, Irish officials have indicated that some of these schemes such as the UK’s ‘trusted trader’ scheme proposals would be of little value since it can take up to 9 months to secure approval as a ‘trusted trader’ and in the agro-food sectors many such products under EU rules have to be subject to ‘mandatory checks’ at the border (1).
The extent of these checks became blatantly clear at the EU June 2018 advisory group meeting on the food chain and animal and plant health issues. Presentations made at this meeting highlighted how, if the UK were to leave the EU on 29th March 2019 without a transitional arrangement in place, standard third country inspection requirements would need to be applied to all animal products. This would require:
- prior approval of the establishment producing the animal product (which can take up to 2 years) before exports to the EU market can commence;
- prior approval of the UK as a country eligible to export animal products to the EU, including the proven existence of an approved residue control plan for animal products;
- document checks, identity checks and physical inspections at the first point of entry to the EU (4).
Irish officials have indicated that how the UK authorities will deal with these issues in regard to imports in the post-Brexit period is unclear, since under a ‘no-deal scenario the UK itself would no longer be bound by EU rules (1).
| Comment and Analysis Implicit in the Irish proposal is that ‘sealed’ customs cleared containers making use of the UK ‘land bridge’ would be subject to special handling and unloading arrangements at EU and UK ports. While such arrangements, if adopted, would automatically apply to ACP goods exported via a EU27 member state which transited through the UK ‘land bridge’ to Ireland, the question arises could a variation on such arrangements not also be established for other ACP goods landed in an EU27 member state but ultimately destined for the UK market? For example could not proposals for special customs clearance arrangements be extended to goods from ACP countries subject to the same health checks in the EU and the UK and enjoying the same duty free quota free access to both the EU and UK market? This could for example assist with the onward shipment of cut flowers from Ethiopia sold in the UK through the Dutch flower auctions. While given current UK commitments this would currently apply only to LDC ACP members, if existing EU EPAs were rolled over into parallel UK-Only arrangements then this could also apply to existing ACP EPA signatories (except South Africa where TRQ restricted access is in place in certain products). This could then assist with, for example, the export of Jamaican horticulture products which are currently shipped via Rotterdam to the UK market. Overall such arrangements could then help minimise additional costs along existing ACP-EU-UK triangular supply chains arising as a result of the Brexit process. ACP governments should keep a close eye on the development of this Irish government proposal and at an early stage raise the issue of the possible elaboration of similar arrangements for ACP goods enjoying the same duty free-quota free access to both the EU and UK markets and facing the same health and food safety inspection requirements. Close attention should also be paid to private sector proposals being advanced to facilitate the continued smooth flow of trade, where these proposals align or can be made to align with ACP agro-food sector export interests. |
Sources:
(1) The Guardian, ‘Ireland seeking Brexit side deal with EU to avoid border checks’, 6 September 2018
https://www.theguardian.com/politics/2018/sep/06/ireland-hopes-side-deal-with-eu-could-allow-it-friction-free-trade-across-border
(2) The Guardian, ‘Brexit secretary under fire from Michel Barnier over Irish border issue’, 8 September 2018
https://www.theguardian.com/politics/2018/sep/07/brexit-secretary-under-fire-from-michel-barnier-on-irish-border-issue
(3) CELCAA, ‘Brexit: Measures to be adopted as a matter of urgency, regardless of the outcome of the Withdrawal negotiations’, 19th June 2018
https://celcaa.eu/latest-news/brexit-celcaa-calls-for-measures-to-be-adopted-as-a-matter-of-urgency-regardless-of-the-outcome-of-the-withdrawal-negotiations/
(4) EC, ‘Ad-hoc meeting of the Advisory Group on the Food Chain and Animal and Plant Health on issues related to the withdrawal of the United Kingdom from the Union pursuant to Article 50 of the Treaty on European Union’, 1 June 2018, Brussels
https://ec.europa.eu/food/sites/food/files/safety/docs/comm_ahac_20180601_sum.pdf