GB to NI Goods: UK Internal Market Scheme to replace the UK Trader Scheme from 30 September 2023
HMRC have issued a reminder to businesses selling goods from Great Britain into Northern Ireland that the UK Internal Market Scheme (UKIMS) will replace the UK Trader Scheme (UKTS) from 30 September 2023.
HMRC are encouraging eligible businesses that move goods into Northern Ireland to complete their application for UKIMS if they have not already done so.
The full text of the reminder is as follows:
Earlier this year, the Government and the EU agreed the Windsor Framework. The agreement establishes a new scheme, the UK Internal Market Scheme (UKIMS), for the movement of ‘not at risk’ goods into Northern Ireland. This scheme replaces the UK Trader Scheme (UKTS) from 30 September 2023.
With just over one month to go, we would strongly encourage eligible businesses that move goods into Northern Ireland to complete their application for the UK Internal Market Scheme. We will then endeavour to process applications as quickly as possible.
To support traders further, there is a UKIMS factsheet which includes a step-by-step video guide on the UK Internal Market application form. This video provides an example walkthrough that helps break down the different information that is required to complete this process successfully. Traders can also refer to the Windsor Framework: Frequently Asked Questions (FAQ).
If the new authorisation is not processed by 30 September when the UKTS closes then, if eligible, traders can claim back any duties via the Duty Reimbursement Scheme, or they can claim a Customs Duty waiver. Once traders are authorised, they can continue to declare goods ‘not at risk’ under the UKIMS.
How is the UK Internal Market Scheme different to the UK Trader Scheme?
The Windsor Framework significantly expands the number of businesses eligible to move goods as ‘not at risk’ of entering the EU through three important changes:
- All businesses throughout the United Kingdom will now be eligible – moving away from the previous restrictions that required a physical premise in Northern Ireland.
- It will increase the turnover threshold below which companies involved in processing can move goods, under the scheme, which they can show stay in Northern Ireland – quadrupled from the current £500,000 limit up to £2m. Check the additional requirements for goods subject to processing here.
- Even if businesses are above that threshold, they will be eligible to move goods under the scheme if those goods are for use in the animal feed, healthcare, construction, and not-for-profit sectors. They will be able to do this even as intermediaries or if they sell on the eventual product to one subsequent entity in the supply chain. Inputs into food production will continue to benefit from inclusion in the ‘not at risk’ definition.
Why is it important to apply for the UK Internal Market Scheme?
The UK Internal Market Scheme will continue to enable registered traders to move goods in line with existing ‘not at risk’ arrangements.
Once the Windsor Framework is fully delivered, the UK Internal Market Scheme will provide access to the new ‘Green Lane’ which means that goods moving from GB to NI will be freed of unnecessary paperwork, checks and duties, with only ordinary commercial information required.
Existing UK Trader Scheme authorisations will remain valid to declare goods as ‘not at risk’ for goods movements that take place before 30 September 2023.
What are ‘not at risk’ goods?
If authorised, a business will be able to declare its goods ‘not at risk’ if they are brought into Northern Ireland for sale or final use by end consumers in the UK.
‘Not at risk’ goods:
- will not be charged duty if entering Northern Ireland from free circulation in Great Britain (England, Scotland and Wales)
- will be charged UK duty if entering Northern Ireland from outside the EU and the UK
- will be charged UK duty if entering Northern Ireland from Great Britain and the goods were not in free circulation in Great Britain
‘At risk’ goods will be charged the applicable EU duty.
Businesses that fall within the scope of the expanded scheme are encouraged to apply as soon as possible.