The UK and the EU have finally adopted the post-Brexit deal for Northern Ireland. Signing of the agreement took place after years of tension about the practical challenges of the implementation of the previous NI protocol.
The new deal is to reduce frictions on UK to NI trade flow and comes to a relief for the food industry. It practically divides goods to go across borders either in a green lane or a red lane. British goods, that are intended to stay in Northern Ireland will use the green lane with less paperwork and hardly any routine physical checks along the Irish Sea border. Goods that are going on to the Republic of Ireland or on to other EU countries will use the red lane, and will have to provide detailed customs information as well as undergo checks and controls.
Businesses will have to register as a trusted trader under a new UK Internal Market Scheme (UKIMS) to use the green lane. A wide range of retailers including supermarkets and suppliers will qualify for UKIMS. Once qualified, retailers and suppliers would be able to use the green lane and enter NI when the goods are intended to stay there. Physical checks on green lane loads will not be carried out routinely, which should reduce the time hauliers spend at the border and increase the flow of goods into NI.
Retailers will have to introduce new ‘not for EU’ labels on certain food products sold north of the border. The labelling requirement will be rolled out in phases, giving business time to adjust. Products such as meat, dairy and composite products are considered high risk and will have to be labelled starting October.
The details around the necessary paperwork, how the checks will take place and how exactly they will affect supply chains are still to be determined.