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Posted: Thu 3rd Oct 2024
New customs rules for parcels and freight between Great Britain and Northern Ireland have been postponed until March 2025.
Originally due to be introduced on 30 September this year, the changes were announced as part of the Windsor Framework, the agreement between the UK and the European Union which sets out the trading rules between Great Britain and Northern Ireland following Brexit.
The changes include business-to-business parcels having to go through customs processes, and parcel operators having to join a new trusted trader scheme.
In a message sent to businesses, HM Revenue & Customs (HMRC) said "events...including the General Election and the pre-election period...have impacted on the preparations of traders and the border industry".
The email added:
"We recognise that more time will therefore be required to ensure full readiness for the new arrangements; and acknowledge the challenges posed for systems changes by the peak period over the Christmas period will constrain the ability to make detailed systems changes.
"As such, the new arrangements under the Windsor Framework for parcels and freight movements that were envisaged to come into effect from 30 September 2024 will now not take effect on this date.
"While we will provide further information on the detailed timeline for the coming into effect of the new arrangements in due course, businesses should be fully prepared for them by 31 March 2025."
The government said it will provide businesses with advice in the lead-up to the new rules being introduced, including through the Trader Support Service (TSS) which has been extended until the end of 2025.
The postponing of the parcel rules follow the government also announcing an indefinite delay to requirements on food producers to put "not for EU" labels on meat and dairy products sold in Britain.
The rules have been in place since October 2023 for meat and dairy products sent from Britain to be sold in Northern Irelance. The aim is to ensure businesses don't try to avoid EU controls by sending food via the Republic of Ireland which doesn't have a hard border with Northern Ireland.
The delay in the extension of the "Not for EU" labels to Great Britain follows concerns and complaints raised by business groups.
Earlier this year, a joint letter from food industry groups led by the Provision Trade Federation called for a delay, saying "the industry has been left in complete limbo" as a result of the previous government not publishing its response to a consultation on the changes.
The letter added:
"Some retailers are already requiring suppliers to reformat packing in anticipation of a decision to go ahead, while others are waiting to see what is going to happen.
"Similarly, given the lead times for new packaging to be printed and adjustments to the logistics of their supply chains, some manufacturers have already begin incurring the additional costs involved, while many of their competitors have not."
The government confirmed it will now review the rules. A Department for Environment, Food and Rural Affairs (Defra) spokesperson said:
"Ministers are carefully considering the evidence provided in the recent 'not for EU' labelling consultation.
"We are committed to taking all necessary steps to protect the UK internal market and are continuing to engage with businesses to ensure the smooth flow of goods to Northern Ireland."
The government has also said that import checks on medium-risk fruit and vegetables imported from the EU due to introduced in January 2025 have been delayed until 1 July 2025.
Defra said the "easement is a temporary measure to ensure that new ministers have a full and thorough opportunity to review the planned implementation of further border controls, and an opportunity to listen to businesses across import supply chain".
This is the third time the rules have been postponed.
In addition, the government said it has changed the risk categorisation of certain plants and plant products, including deregulation of certain products, "following further scientific review of commodities across all plant and plant product risk categories".
Seven commodity groups, including apples and pearsm will be recategorised from medium risk to low risk, allowing these goods to move freely into GB from the EU, Switzerland and Liechtenstein.
These changes will come into force on 30 January 2025.
