The UK Government’s new trade border model is here.
The Border Target Operating Model (BTOM) sets out how imports entering Great Britain will be handled. The UK, Welsh, and Scottish governments and officials from Northern Ireland, developed the BTOM. It will apply to all imports, including to EU imports for the first time since Brexit.
New trade and customs controls will be carried out at Welsh ports. Welsh Ministers are responsible for biosecurity, food safety and sanitary and phytosanitary (SPS) controls which protect animal, plant and public health.
The regime will be phased in from January 2024, with a second phase in April 2024 and a third in October 2024. A different timetable applies to goods arriving from the island of Ireland – it has two phases; January 2024 and October 2024. This is particularly important to Wales, whose ports form part of the UK landbridge with Irish ports.
The UK Government estimates costs to importers to be £330million per year across EU imports, plus an increase in food inflation of 0.2% over three years. This will, it says, “depend greatly on how businesses adapt their business models and supply chains to integrate the new controls regimes”.
The BTOM explains that the £330million represents around 0.13% of the overall value of EU imports and that the economic consequences of a major outbreak of plant or animal disease (which trade controls aim to prevent) “could be far more severe”.
This article focuses on goods arriving in Wales from the island of Ireland and follows our last article, Why does Wales need Border Control Posts?
When will the BTOM start?
New Border Control Posts (BCPs) to process imports are planned for Holyhead, Pembroke Dock and Fishguard ports. They should be fully operational by 31 October 2024.
Section 2 of the BTOM places west coast ports on a different timetable to the rest of GB to account for the complexities of moving goods from the island of Ireland. The following checks and requirements will be needed for goods arriving from the island of Ireland to Wales, but which ones apply depend on the type of good and its movement.
31 January 2024
- Pre-notify authorities before the arrival of some goods.
- Health and phytosanitary certificates for medium risk SPS products.
- Customs controls.
31 October 2024
- Document, ID and physical checks on medium risk animal products, plants, plant products and high risk food and feed of non-animal origin.
- Safety and Security declarations for EU imports.
Simplified import processes are expected to begin for all GB imports in October 2024. For example, mandatory information will be reduced and the use of the UK’s new Single Trade Window will remove some duplication across pre-arrival datasets, such as Safety and Security, SPS, and pre-lodged customs declarations.
Goods arriving in Wales from the island of Ireland
Geography places Wales in a unique position because its west-facing ports link to Irish ports, in the EU. Goods moving between the two are therefore considered to be UK-EU imports / exports and are subject to international trade rules and the UK-EU Trade and Cooperation Agreement (TCA).
However, Northern Irish (NI) goods also travel south on the island of Ireland to use Ireland-Wales sea routes, and to take advantage of the UK landbridge shown on the map below.
NI goods moving to GB face fewer barriers than Irish/EU goods under the terms of Brexit, and the BTOM takes this into account. NI-GB trade is mainly governed by UK-EU agreements, including the Northern Ireland Protocol and the Windsor Framework, and important domestic laws like the UK Internal Market Act 2020.
The BTOM sets out which rules apply to indirect NI-Wales imports via Ireland and to direct Ireland-Wales imports.
Indirect Northern Ireland-Wales imports via Ireland
The rules that apply to goods travelling from NI-Wales via Ireland depend on whether they are a ‘qualifying NI good’ (QNIG).
Generally, QNIGs are goods that are in free circulation in Northern Ireland or that have undergone processing in Northern Ireland. QNIGs are not subject to SPS controls, except in limited circumstances, such as endangered species. The UK Government maintains a list of QNIGs that enjoy unfettered NI-GB access which is regularly updated.
Goods that do not meet the criteria are considered non-qualifying goods (non-QNIGs) and customs and SPS controls apply. Some categories of non-QNIGs, such as excise goods like alcohol and tobacco, are always subject to customs controls.
The start date for physical checks of non-QNIGs will be confirmed in Autumn 2023 and the Minister for Economy, Vaughan Gething, recently said talks would begin in the coming weeks.
Simplified rules for qualifying NI goods
The BTOM says that the preferential terms afforded to direct NI-GB movements will be extended to indirect movements of QNIGs from NI-GB via Ireland. It says that:
In the vast majority of cases you will no longer need to complete electronic import customs declarations for your goods movements.
I was particularly pleased to secure agreement from the UK Government to modify the definition of Qualifying Northern Ireland Goods (QNIGs), to reduce the incentive for traders to seek to avoid SPS controls by moving goods to Great Britain from the island of Ireland via Northern Ireland. This should significantly improve biosecurity and reduce the risk of trade being diverted away from Welsh ports.
Processes will be simplified so that hauliers need to declare they are carrying QNIGs and carry documentation to prove it, if asked. They will also need to carry travel documents with the QNIGs’ final destination to show that they have only passed through Ireland.
The UK Government will update guidance on these requirements before 31 January 2024 and promises to provide traders and hauliers with enough time to understand the new arrangements.
Next steps
The BTOM explains that legislation will be “enshrined and further strengthened” to ensure unfettered NI-GB trade in QNIGs.
Trade dislocation and diversions away from Welsh ports have been a concern of the Welsh Government for some time. The Minister has spoken of his attempts to mitigate these, including by initiating a common approach to the western seaboard. On publication of the BTOM, he said that ”we have developed a model which works for Wales.”
A key question for the Senedd will be whether the Minister’s efforts have succeeded. Members will have the opportunity to explore this issue when he next appears before the Economy, Trade and Rural Affairs Committee.
Article by Sara Moran, Senedd Research, Welsh Parliament
