Cian Hassett, Trade Market Executive, London Office, Bord Bia - The Irish Food Board
Key events this week
DAFM Brexit Readiness Event
Bord Bia were in attendance at the DAFM Brexit readiness event at the Radisson Blu Hotel in Little Island, Cork. Minister Creed was in attendance to open proceedings, and Bord Bia staff were on hand to answer any queries and to help highlight the available Bord Bia Brexit support services. Minister Creed began by explaining that there was no way for the government to guarantee that proceedings following a Brexit would be seamless. He said that Brexit proposed significant change for companies, even if a withdrawal agreement was reached, due to a major increase in “red-tape” around transport pallets, documentation, etc.
Minister Creed went on to say that there is a major fear of the SME sector – this is because smaller companies would need to do the same amount of prep as larger companies regularly doing business with the UK, without having the same financial backing behind them. While there would be some tolerance of customs when Brexit occurs, this would disappear quite quickly. Minister Creed said that his department, and the revenue, would be helping to outline what is needed for companies to continue trading, such as EORI and TRACES registration. Minister Creed stressed that the EU is committed to standing behind Ireland throughout all of these processes, and that it was important that engagement was continued to help maintain solidarity. Finally, he stressed that companies now need to move on from awareness and start taking actions, and that companies shouldn’t be holding on to an “it’ll be alright on the night” philosophy.
Following on from Minister Creed, Ray Ryan from the Revenue’s Brexit team spoke to those companies in attendance, beginning by confirming that the UK would remain part of the Common Transit Convention, regardless of Brexit. He highlighted that there were 92,000 businesses that traded with the UK last year, and that 63% of these companies still have not registered for an EORI, a reduction from 71% in July. Further to this it was revealed that 70% of agri-food businesses were not registered. Mr Ryan went on to explain how companies exporting to the UK need to be fully up to date with the processes and documentation that are required going forward. He also spoke how important it was for companies to be aware of special procedures; Simplified Transit, inward/outward processing, temporary storage/warehousing, temporary admissions and also to remember that each procedure would have a reverse operation from the UK side. Mr Ryan finished by saying that people should address all queries to brexitqueries@revenue.ie
The Department of Agriculture, Food and the Marine has published a “Brexit preparedness Checklist” for businesses moving animals, plants and products of animal and plant origin. This is available at https://www.agriculture.gov.ie/brexit/preparingforbrexit/
The Government has also prepared a booklet, Getting your Business Brexit Ready: Practical Steps, which provides a comprehensive overview for businesses on the core steps they should take to prepare for Brexit.
The key registration procedures for agri-food businesses are:
- Register with Revenue for an Economic Operators' Registration and Identification number - EORI
- Register with the Department of Agriculture, Food and the Marine if moving animals, plants, products of animal origin and/or products of plant origin (including wood and wood products) - BrexitRegistration@agriculture.gov.ie
- Additionally, if you are importing animals or animal products you must Register with the Department of Agriculture, Food and the Marine on the EU TRACES system (this is an EU-wide IT system) - BrexitRegistration@agriculture.gov.ie
The 2019 Brexit Barometer Industry Findings Report and Action Plan can now be downloaded from the Bord Bia website. The Action Plan provides practical information and outlines a number of steps that Irish food and drink companies can take in order to mitigate the risks posed by Brexit.
Bord Bia has also announced a new range of support services for Irish food and drink companies to help them to prepare for Brexit. There include:
Information on the support services can be found by following the above links. Alternatively, all information can be found on the Brexit page on the Bord Bia website: https://www.bordbia.ie/industry/trading-with-uk/
In the news:
EU doubts grow over Boris Johnson’s Brexit proposal
EU leaders have warned Boris Johnson they have deep concerns about his new Brexit proposals as the UK prime minister insisted he had made a “genuine attempt to bridge the chasm” between the two sides. Donald Tusk, European Council president, told Mr Johnson the EU was “open but still unconvinced” following the arrival of his plan to replace the Irish backstop on Wednesday. In a blunt assessment, the European Parliament’s Brexit steering group separately said the UK’s plans did not “represent a basis for an agreement to which the European Parliament could give consent”. Mr Johnson on Wednesday outlined a plan to Brussels he hopes can resolve the vexed issue of the Irish border and end the deadlock over the UK’s departure terms at Westminster. But during a House of Commons statement, Mr Johnson admitted “we are some way from a resolution”.
Leo Varadkar said his government could not understand how the UK’s customs plans could avoid the return of border infrastructure on the island. “It’s very much the view of the Irish government and the people of Ireland, north and south, that there shouldn’t be customs checkpoints or tariffs between north and south,” he said. Despite initial reticence in Brussels to criticise the plans, it was clear on Thursday that serious doubts were growing in EU capitals. “Opinions are really divided among member states as to whether the UK actually wants a deal,” said one senior EU diplomat. The EU has identified major gaps in the UK’s proposals. Mr Johnson’s offer to the EU overhauls the withdrawal agreement finalised by his predecessor Theresa May and the 27 other member states by removing the so-called backstop that avoided a hard Irish border. Mr Johnson’s plan involves the creation of two new borders: a customs frontier between the Irish Republic and Northern Ireland, and a regulatory one between the region and mainland Britain. EU officials warn the UK’s blueprint does not remotely match commitments enshrined in the backstop such as upholding the all-Ireland economy and single market.
Sainsbury’s tells suppliers to cover cost of no-deal tariffs
Suppliers to J Sainsbury have been told by the supermarkets group that they must bear the brunt of European Union import tariffs if there is a no-deal Brexit. Paul Mills-Hicks, Sainsbury’s commercial director, wrote to suppliers last week to confirm that they would continue to deliver goods with delivery duty paid, or DDP, after October 31, including tariffs that would be enforced automatically under World Trade Organisation rules if Britain were to leave without a deal, in addition to other logistical costs. If the prime minister cannot secure a deal before October 31, tariffs could rise to 46 per cent on cheese and 40 per cent on beef. A spokesman for Sainsbury’s said that the letter was a necessary part of its preparations for Brexit.
The Pound rallied in determined fashion on Thursday as it appeared domestic resistance to a deal based on the latest set of proposals was melting.
The good news was soon overshadowed as the response of European Union leaders trickled through.
The Pound-to-Euro exchange rate rallied to €1.1302 on Thursday before paring gains back down to €1.1250. The Pound-to-Dollar exchange rate rallied to $1.2413 before paring gains back to today's levels around $1.2347.
Looking ahead:
14th October State opening of Parliament and Queen's speech
17th - 18th October European Council meeting, Brussels
21st – 22nd October MPs vote on Queen's speech
24th October Likely earliest date for a General Election
31st October Legal default for the UK to leave the EU
1st November New European Commission starts its term in office
May 2020: this will be the last day the UK will get to leave the EU as the new EU budget round comes in.