Withdrawal Agreement Ratified

Overview Withdrawal Agreement approved by EU &  UK Government Rejected by Parliament three times and PM May resigned WA or variant may be ratified No deal Brexit on 31 October 2019 (may also apply to new exit date on 31 December 2020) unless agreement or extension Deals only with Money, People, Transition and Backstop Accompanied by Political Declaration about Future Relationship Agreement on UK Financial Contribution to […]

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NI Backstop (Supeseded)

Overview Contained in the unapproved Withdrawal Agreement Agreed by the EU and the UK Government Withdrawal Agreement rejected three times by Parliament A variant of it may be agreed Applies if future EU UK Agreement does not avoid NI hard border Applies if no EU UK Agreement at end Transition Period 2020 (+?) EU and […]

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Customs Partnership

Overview The Labour Party policy No customs duties, customs controls nor origin checks Limited scope to enter trade agreements with third countries Greater power to regulate economic activity Level playing field rules/regulatory alignment No / very limited single market protections Broad cooperation in important fields Limited freedom to provide services Facilitation of digital services This […]

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Burden of Customs

The best of both worlds Any type of Brexit will reset the terms of trade between the UK and the European Union. It will cause some types of UK to EU trade and some types of EU to UK trade to cease to be viable. Every business knows the value of goodwill and its client […]

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Single Market and Customs Union

Overview Back to 1992 (more or less) Norway, Iceland and Liechtenstein status Plus customs union No customs duties No declarations of origin or customs control No/ very limited freedom to enter trade agreements The UK largely a rule-taker of many trade rules Free movement of goods Free movement workers (plus other categories?) Free movement of […]

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Single Market

Overview; Membership of the EEA Same relationship as Norway, Iceland and Liechtenstein No customs duties on most goods Some Customs cooperation Declarations required for exports and imports UK freedom to enter trade agreements with third countries More extensive trade agreements v less EU alignment/harmonisation The UK becomes a rule-taker for many trade rules No / […]

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Free Trade Agreement

Overview The UK Government’s preferred option Reflected in the EU UK future relationship declaration No customs duties on most goods Customs cooperation but declarations required on exports and imports Certificates of origin requirements Some regulatory checks The UK free to enter trade agreements with third countries – Higher alignment with the EU = reduced scope […]

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Customs Access

Ireland has and will retain post-Brexit, tariff-free and customs procedures free access to the European Union market. In the event of a no deal Brexit country tariffs will apply on all exports from the United Kingdom to the EU. In the event of a Brexit with a trade agreement, it is likely that most goods […]

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Common Travel Area

Will Survive Brexit The Common Travel Area applies as between the United Kingdom, the Republic of Ireland, the Channel Islands and the Isle of Man. It reflects the fact that the Republic of Ireland formerly comprised part of the United Kingdom. Even after Ireland declared itself a republic in 1949, UK law specifically enacted that […]

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Similar Laws and Practice

Common Legal Heritage and Laws Ireland shares a very close common legal heritage with England and Wales and Northern Ireland. Ireland uses the common law system which provides the basic rules of law in many areas relevant to trade and doing business. Irish common law is almost identical to that in the United Kingdom. Accordingly […]

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Favourable Tax Regime

Corporate Profits Tax Ireland is firmly committed to maintaining its corporation tax rate of 12.5%. This rate has applied for over 20 years and was negotiated with the European Union in the context of the phasing out of earlier tax reliefs. Tax policy is a competence of the EU states. Ireland and several other EU […]

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Financial Services General Issues

General impact on Financial Services Sector On the face of it, Brexit has the potential to severely impact the UK financial services centre generally. For prudential or capacity to do business purposes and for the purpose of the sale of financial products and services in the EU, most of the key types of financial services […]

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Language and Culture

Shared History and Institutions The United Kingdom originated as the United Kingdom of Great Britain and Ireland in 1801. Until 1922 what is now the Republic of Ireland was an integral part of the United Kingdom. Ireland is not a foreign country for the purposes of UK law. The UK has an equivalent status under […]

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Proximity and Access

Connections and Access Ireland is readily accessible from any part of the United Kingdom. There are hundreds of daily flights as well as several ferry crossings. Ireland is served by international airports in Dublin Cork Shannon and Mayo as well as a number of smaller regional airports. The Dublin London Heathrow route alone is busiest […]

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FDI Record

An Established European Hub Ireland has a proven track record as a successful location for multinational companies from around the world. Ireland is home to world-leading, established companies and also to high growth companies that will shape the economy of the future. IBM’s Global Location Trends ranks Ireland 1st for attracting high-value FDI projects. There […]

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Transportation

Connectivity Ireland has extensive transport links to Europe and the rest of the world. Over 400 flights a week leave from Dublin, Cork and Shannon to London US Pre-Clearance facilities at Dublin Airport and Shannon Airport are the only ones of their kind in Europe New connections in 2019 include direct flights from Dublin to […]

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Commercial Property

Key Developments A significant number of new office construction projects are underway There is excellent rental value in regional locations outside Dublin. Flexible workplace offerings are growing in prominence. 26 office schemes of more than 350,000 sq. m. were under construction in Dublin city centre at the end of Q3 2018. 29,000 sq.m. of new […]

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Infrastructure

Investment in Infrastructure Ireland will invest €116 billion in public infrastructure and capital works under the National Development Plan 2018-2027. Public capital investment in Ireland will move from relatively low levels following the global economic downturn to being among the highest in the EU. The Plan focuses on ten strategic investment priorities including enterprise, skills […]

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Competitiveness

Key Facts Ireland is the 3rd most competitive economy in the Eurozone and the 5th most competitive in the EU. Maintaining and improving competitiveness as the economy grows is a key Government priority. The cost of living in regional locations in Ireland compares exceptionally well to other competing cities, while Dublin ranks among the top […]

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A Competitive Economy

The Irish Economy Ireland is a stable, competitive, secure and pro-business country. The Irish economy is the fastest growing in the Eurozone. The Irish Government is committed to sustainable management of public finances and Ireland receives an ‘A’ grade from all major credit rating agencies. Ireland is a committed member of the EU Single Market […]

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Property

Property A significant number of new office construction projects are underway Key Developments There is excellent rental value in regional locations outside Dublin. Flexible workplace offerings are growing in prominence. 26 office schemes of more than 350,000 sq. m. were under construction in Dublin city centre at the end of Q3 2018. 29,000 sq.m. of […]

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Demographics

A young, well-educated and productive workforce Ireland’s young workforce is capable, highly adaptable, educated and committed to achievement. Ireland has the youngest population in Europe with a third of the population under 25 years old. The population is forecast to increase by almost one million people to 5.75 million by 2040. Labour Pool Companies operating in […]

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Infrastructure

Investment in Infrastructure Ireland will invest €116 billion in public infrastructure and capital works under the National Development Plan 2018-2027 Telecommunications Ireland has one of the most advanced and competitive telecommunications infrastructures in Europe. The telecommunications market is fully deregulated and numerous companies have entered the market. Large investments in recent years have resulted in […]

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Education

Education Level There are over one million people currently in full-time education in Ireland. These are engaged in three levels of education: primary education (up to 12 years); secondary education (12-18 years); and third-level education (18+ years). Ireland has one of the most educated workforces in the world. The share of 30-34 year olds in Ireland […]

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VAT for Business No Deal

VAT for businesses if there’s no Brexit deal Updated 30 August 2019 Contents Purpose Before the UK leaves the EU If there’s no deal More information Delivering the deal negotiated with the EU remains the government’s top priority. This has not changed. However, the government must prepare for every eventuality, including a no deal scenario. […]

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Overview (Hard Brexit Scenario)

Context of Hard Brexit Scenario Articles The “Hard Brexit Scenario” articles in this section set out some consequences that would arise unless other arrangements are made between the UK and the EU,  in the event of a no deal “hard” Brexit in which the United Kingdom automatically leaves the EU on 31st October 2019 (may also apply to new exit date on 31st December 2020). As […]

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Irish Customs Issues

Default Position In the event of the so-called hard Brexit by which United Kingdom leaves the European Union on 29 March 2019 (may also apply to new exit date on 31 December 2020), there would be an immediate obligation to undertake customs procedures on imports and exports between the United Kingdom and Ireland. The obligation would apply on every occasion of an import and export to […]

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Irish Export Customs Procedures [No Deal]

Controls on Export An export to the United Kingdom will involve completion of the export customs procedure with the Irish Revenue and completion of the corresponding import procedure with United Kingdom revenue (HMRC). As mentioned separately, temporary simplifications may be available on the UK side. Customs obligations arise for each export and each import. Because […]

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Irish Import Customs Procedures [No Deal]

Declarations to Revenue Every import requires an entry summary declaration and an import declaration. The entry summary declaration and import declaration must be made separately notwithstanding that the overlap of information is considerable. Special software is necessary to communicate with the revenue authorities’ systems. Certain messages and notices can be completed through the Revenue online […]

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UK Land Bridge – Transit

Transit Transit procedures apply where goods are transported from Ireland to continental Europe through the UK  ‘land bridge’. The United Kingdom has recently acceded to the Common Transit Convention by which it recognises EU transit movements as valid in the United Kingdom. The convention avoids the necessity of making a double set of declarations both […]

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UK Customs Policy and Simplifications

Overview At present, movements of goods between Ireland and the UK are not subject to customs and most other controls. They are similar in status to movements within a single country. In contrast movements from an EU country to a country outside the EU whether by way of import or export are subject to the […]

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Agriculture and Food Trade

Agriculture controls EU law has strict controls in respect of the importation of agricultural, plant and food products into the European Union. There are requirements for mandatory checks in a very high percentage of cases depending under the type of foodstuff involved, as part of EU wide food safety legislation Imports of products of animal […]

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Services, Companies & Firms

Effect of Brexit In the absence of no Brexit or a very limited Brexit, it  appears that the general EU right to provide services based on the establishment in one state in other states and to establish branches and local establishments in a host  state based on home state regulation, will cease. Across various sectors […]

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Ireland and Services Issues

Regulation of Services The regulation of services usually involves the authorisation, licensing and qualifications of the service provider. This may involve the authorisation or licensing of a company or firm, an individual service provider or in some cases, both the company or firm and individuals within it. The general principle under European Union law is […]

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Market Surveillance and Regulation

July 2019 Market Surveillance and Notified Bodies A number of state agencies undertake a wide range of product safety, market surveillance and accreditation roles, which are vital to the efficient functioning of the economy and essential to the maintenance of the Single Market. Even the most benign of Brexit conditions would result in a step […]

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Taxation

Taxation The Brexit Omnibus Act contains a number of provisions on taxation that were required as contingency measures in the event of a no deal Brexit. These are contained under Part 6 of the Act, which provides for the modification of Income Tax, Capital Tax, Corporation Tax, Capital Tax and Stamp Duty legislation in order […]

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Importing UK to EU 2021 UK Guidance

Guidance EU business: importing from the UK English Deutsch Español Français Italiano Nederlands Polski Find out what EU businesses need to do to import from the UK from 1 January 2021. Published 2 December 2020 Last updated 8 December 2020 — see all updates From: Department for International Trade New rules for January 2021 The UK […]

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VAT on Freight Transport Services HMRC Guidance

Guidance Freight transport and associated services (VAT Notice 744B) How to account for VAT on services when a vehicle, ship or aircraft is provided, together with a driver or crew for the transport of goods. Published 24 December 2009 Last updated 31 December 2020 — see all updates From: HM Revenue & Customs Contents Detail 1. […]

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Irish VAT on EU Trade Overview

Imports into Ireland from EU VAT is an EU wide tax. For the most part, the VAT rules encountered in Ireland correspond to the VAT rules in the rest of the EU. Therefore the VAT rules which apply to importing and exporting will generally apply in reverse from the perspective of a business in another […]

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Irish VAT on Non-EU Trade Overview

Export outside the EU The following deals with the purchase and sale of goods and the provision of services to and from outside EU member states.  The rules are different for supplies within the EU.  The EU has a single set of VAT rules which interlock. The general rule is that the place of supply […]

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Customs Union Basics

Customs Union The European Union Treaties created a customs union between the member states.  It applies to all trade in goods which have monetary value and are the subject of commercial transactions. Goods for the purpose of the customs union includes everything capable of having value and being exchanged. What goods are supplied ancillary to […]

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Import Control & Security System EU

Stages of Import There are six stages in the import process by sea or air in respect of imports from outside the EU; the advance provision of information; the report of the arrival of means of transport; the presentation of the goods; the declaration of the goods; the examination of the goods; the release of […]

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Customs Warehousing

Types of Warehouse Customs warehousing is a procedure by which non-EU goods may be stored in EU territory without being subject to import duties.  Duty becomes payable when the goods are released into free circulation.   A warehouse may also be authorised as a tax warehouse.  If it is not both a customs and tax warehouse, […]

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Import Procedure I

Import to EU (Ireland) Before commencement,  the exporter must issue an export declaration to the customs office responsible for the company in its country (e.g. UK post-Brexit). After receiving approval from its customs authority, the company can ship the goods. The shipment is registered in the customs export system in the country of export (e.g. UK). The goods will […]

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Import Procedure II

Declaration to Customs Treatment I The importer must declare the goods to customs. This may be done by the importer or more commonly by a logistics provider, freight forwarded or customs agent on his behalf.  The obligation is separate to the obligation to make an entry summary declaration (ENS), which rests primarily with the carrier, […]

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Import Procedure III

Customs Examination Customs authorities are obliged to conduct a customs examination when it is clearly called for. The person declaring the goods is responsible for transporting and producing the documents to customs for examination. It is presumed that the partial examination is representative of all of the goods presented. The person presenting the goods may […]

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Export Procedure

General Requirements Goods leaving the European Union must do so in accordance with the export procedure laid down in customs law. Export formalities apply including the common commercial policy measures and in some very few cases, export levies or duties. The safety and security legislation applicable to the import of goods applies to exports. The […]

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Importing / Exporting (Hard Brexit Scenario)

Brexit Customs Risk After Brexit, the European Union customs laws will no longer apply to the United Kingdom. If there is a transitional period, they will continue to apply until the end of the transitional period. United Kingdom has passed legislation which replaces the EU customs law with United Kingdom customs law on virtually identical […]

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VAT on Goods

VAT and Brexit In the context of a no deal scenario in which the UK became a third country for VAT purposes the following provisions would apply. There is a distinct possibility that even in a no deal scenario, special arrangements may be made in respect of some VAT issues, in particular for certain purchases […]

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VAT on Services

VAT on Services The position in respect of VAT on services is complicated and depends on the particular service involved. The position is dealt with in detail in other sections of this website. Under both Irish and UK legislation, VAT is usually charged in “place of supply”. The starting point is that this is where […]

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Transit Internal & External

Transit Procedures Transit procedures facilitate the free movement of goods through the EU and third countries, by temporarily suspending duties and charges until they reach their final destination.  There are three types of transit procedures. Community Transit applies to movement of goods within the EU territories only. Common Transit, covers movements between the Community and […]

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Some Customs Control Issues

Infringing Goods Goods which infringe intellectual property may not be imported into the EU, released for free circulation, exported, re-exported or placed in a suspensive arrangement. An application can be made to the customs authority for the detection and destruction of goods infringing intellectual property.  The legislation applies to counterfeit and pirated goods, breaches of […]

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The Customs Tariff

The Customs Tariff The customs tariff of the European Union determines the basis upon which customs obligations arise. The tariff was formerly published in a multi-volume looseleaf form in several volumes reaching many thousand pages. Tariff is now available online and is updated on an ongoing basis by the European Union. It is also published […]

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Tariff and Goods Classification Issues I

Classification of goods for tariff purposes It is essential that importers, exporters and their representatives properly classify goods. The failure to do so can give rise to an unpaid customs debt. This may arise in the course of a later audit. As with tax audits generally, there is the possibility of interest and penalty together […]

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Tariff and Goods Classification Issues II

Interpreting the Customs Tariffs (TARIC) The tariff is interpreted as a legal instrument. The courts interpret the Code in a broadly similar manner to the interpretation of legal documents and legislation generally. The context and objective of regulations are given effect. The general approach of the courts emphasise the various explanatory notes and official opinions. […]

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VAT on Services EU / Non-EU Issues

VAT and Services VAT applies to the supply of services by a taxable person in the furtherance of business in the State.  Services are very broadly defined. They extend to include the performance or omission of any act and even the toleration of a state of affairs. VAT is charged in respect of the supply […]

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Goods Standards (Hard Brexit Scenario)

Goods standards and regulation The general principle is that once goods have been lawfully put on the market in an EU state, they can circulate freely. In many areas, there are harmonised EU standards for goods. See the separate sections on the modern EU approach to harmonisation and certification of standards. Outside of specific harmonisation, […]

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Export / Import Licences

Import and export licensing Import and export licensing already exist both in trade outside the EU and in some cases, but to a  lesser extent in trade in goods within the EU. In the event of a hard Brexit, some imports and exports which are not now subject to licensing in trade with the UK […]

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Brexit and Customs Issues

Brexit Risk In the absence of a Withdrawal Agreement, there is a risk that the UK may cease to be a member of the European Union on 29 March 2019 (may also apply to new exit date on 31 December 2020) without a transition period. This is a so-called hard Brexit. The United Kingdom has indicated that even in the event of a hard Brexit, it […]

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Contractual Relations

Effect on Contracts Brexit is likely to have an effect on many existing or ongoing contractual relationships between businesses in Ireland and the United Kingdom. The possible implications of Brexit are very much dependent on the nature and terms of the contract and the particular circumstances. Most orders and jobs are distinct contracts, so that […]

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Services

Regulations of Services In the case of services, regulation normally applies with reference to the authorisation, licensing status and qualifications of the service provider. A range of services providers must be licensed or authorised by a competent authority in an EU member state in accordance with common EU standards. The general principle is that a […]

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Financial Services

Banking and Payments There are common EU rules in the area of banking and payment services. The EU directives on access to the activities of credit institutions and investment firms provide for common prudential standards on supervision. After Brexit UK entities providing banking and payments services and e-money issuing may no longer rely on their […]

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