A new internal trade scheme that will impact construction within the UK is set to be voted on later this month.
by Rory Butler / March 6, 2023
The Windsor Framework is a proposal between the European Union (EU) and the United Kingdom that will establish new rules for trade with Northern Ireland (NI) post Brexit.
A formal vote on the prime minister’s deal is expected to take place in the House of Commons (HoC) later this month.
Our recent coverage, How the Brexit deal will affect goods and trade, highlights key takeaways from the arrangement, including how new ‘green’ and ‘red’ lanes will impact the flow of goods.
In this companion piece we go deeper, pulling out what the document says about the future of internal trade within in the UK and how it affects construction.
How does it work?
- Movement of goods will be based on commercial data sharing, not international customs processes.
- It will end the requirement for firms to provide customs commodity codes for each movement.
- The new scheme will significantly expand the number of businesses that can participate.
- It also scraps burdensome supplementary customs declarations.
Essentially, it ensures firms can move goods using the same type of commercial information as they already hold when moving goods to the Isle of Wight.
Who can do this?
Companies using the UK Trader Scheme will, if they wish, be auto-enrolled in the new scheme.
However, it will also be straightforward for new firms to sign up as “internal UK traders” and move goods ‘not at risk of entering the EU’.
- Businesses throughout the UK will now be eligible (moving away from the previous requirement for a physical premises in NI).
- The turnover threshold below which companies can move goods (which they can show stay in NI) will be increased from £500,000 up to £2 million.
- If firms are above the threshold, they will still be eligible to move goods, even as intermediaries or if they sell on the eventual product.
If you would like to find out more about how the Brexit deal will affect goods and trade, follow this link.