Importing into the Republic of Ireland via the UK

The Republic of Ireland (ROI) has issued guidance on moving goods from an EU state to the ROI via the UK. In the wake of Brexit, that effectively means moving goods from the EU to a third country (the UK) and then reimporting them into an EU state (ROI). The procedure raises the prospect of incurring tariffs, VAT and other potential additional charges. 

Irish authorities lay out a number of scenarios in which the movement of goods can be optimised. However, the scenarios the document lays out are complex and broadly hypothetical. Any business moving goods between the UK and the Republic of Ireland should therefore seek up-to-date expert guidance. Guidance should take into account the specific goods and supply chain requirements of each business. 

Networked neighbours

It remains common practice to move goods from the continental EU to the Republic of Ireland via the UK. As the Irish document notes, the UK remains Ireland's closest trading partner.

At the same time, as per the UK-EU trade agreement, tariff-free trade between the UK and EU is dependent on proving rules of origin requirements.

Warehousing under the Customs Transit Procedure

The Irish guidance notes that in instances where EU-originating goods are moved to the UK from the EU member state using the Customs Transit Procedure, those goods should be able to be stored in customs warehouses and retain their EU origin status. Taking advantage of the procedure will require complying with all the requirements laid out by HMRC. 

Inward processing

Irish authorities moot that the Inward Processing Procedure could be made available by HMRC. Under Inward Processing rules, goods can be imported under supervision without being subject to duties. If the goods are then distributed within the country, duties must be paid. However, in the case under discussion, the goods would be re-imported into the EU (i.e. shipped to ROI) and thus not subject to duties.

Technical VAT challenges

As we can see, these points are technical and subject to the regulatory decisions of numerous authorities. Any business should therefore seek expert assistance to ensure full VAT compliance and to eliminate as far as possible tariffs and additional costs. 

The range of potential benefits and challenges will be considerably different for each business. Therefore, each business will require a tailored solution, taking into account its particular logistical and regulatory hurdles. 

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