AQO 1571/17-22

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 04/02/2021
Answered On Date: 16/04/2021
Priority Written: No

Question:
To ask the Minister for the Economy to outline any practical problems experienced by local businesses following the implementation of the Protocol on Ireland/Northern Ireland.

Answer:

The most significant issue we have seen in the past month has been uncertainty. Our businesses have been put in a difficult position due to the late clarity on the operation of the Protocol and the UK-EU Trade and Cooperation Agreement. This is exacerbated by the Covid-19 restrictions.

The lack of preparedness by GB suppliers regarding the customs requirements needed for goods moving to NI has caused disruption to businesses.

There is also ongoing uncertainty relating to parcels with the grace period due to end on 31 March. It is important that we avoid a repeat of businesses taking decisions on deliveries to NI due to a lack of guidance from the UK Government.

Understanding rules of origin is a big issue for local manufacturers who find that whilst EU-origin content may enter the UK tariff-free under the TCA, moving these on to NI could result in not being able to benefit from the tariff-free deal as they may be viewed as “at risk”. As an outcome this is difficult to understand, it is seen as a barrier and many manufacturers, even those with significant experience in Rules of Origin, are struggling to comprehend.

While businesses have not yet experienced disruption due to tariffs on goods purchased from GB, I am very concerned that this will cause significant disruption when businesses come to complete the supplementary declaration process.

My Department will continue to provide guidance and support to businesses navigating the new trading environment, in addition to the support offered through Invest NI and InterTradeIreland, whilst pressing the UK Government for longer-term clarity on these key issues.