Five things you really need to know if trading with the UK

Last week, across the water, Boris Johnson was elected leader of the Tory party and hence Prime Minister on a Brexit ticket.

It seems to have been a matter of little concern at least to the 90,000 or so Tory party members who elected him whether that Brexit arrangement involves a deal, or involves what is misleadingly described as "clean break" with the rest of Europe.

One thing, at least, is certain. Whether it is a hard Brexit or a managed Brexit, the volume of delays and paperwork is going to increase. At the frontline of this disruption will be Irish businesses which deal with UK businesses.

Political wishful thinking has to be now separated from the reality of giving effect to the Brexit decision. When it comes to trade in goods, the EU, above all else, offers permissions – permissions for goods to travel backwards and forwards among EU member countries with minimum disruption.

Customs checking will become a reality for goods from Ireland crossing the Irish Sea to Britain, or, for that matter, travelling from North to South and South to North. There are still several misconceptions about what that will mean for Irish businesses in dealing with the UK.

1. If the British sign the EU Withdrawal Agreement, everything will be okay. No it won't. The Withdrawal Agreement only extends the customs free trading arrangements until December 31 2020. Beyond that, nothing has yet been agreed.

2. Customs duties only apply to imports That's largely correct. However, customs checks apply to exports as well as to imports. There mightn't be any duty payable on goods leaving Ireland going to the UK but that doesn't mean they won’t have to be checked. The UK authorities may also look to charge customs duties when the goods finally arrive in the UK.

3. If our business has the proper customs registration number, we should be okay. Yes, but only to a point. Revenue is currently running a campaign to ensure that anyone needing to move goods into, out of, or through the UK has an Economic Operator Registration Identification (EORI) number. Both the UK authorities and the Irish authorities use the EORI number to identify traders and collect duty on goods. You can't make a customs declaration for goods either leaving or entering the country without an EORI. Register for one now if you haven't already done so. But having the EORI is only half the battle. You will also need access to the Revenue’s Automatic Entry Processing system. All customs declarations have to be submitted online and you need software to do this.

4. Customs problems only arise for things like agricultural products. Even if customs duties are not due, goods coming in from the UK and leaving Ireland going to the UK will be subject to checking. If the paperwork isn't right, the goods will be delayed, even if no customs duty is payable.

5. Revenue only carry out spot-checks, anyway, and everyone keeps saying that there won’t be border checkpoints. It's true that Revenue only spot-check consignments, but they check all customs declarations. Also, while the situation regarding the land border between North and South rightly receives the most attention, the vast majority of goods enter and leave this country via the ports and airports where there will be most definitely customs posts checking.

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The delays and disruption that Brexit will cause to Irish business greatly outweigh the costs of the additional customs duties and tariffs.

That Brexit will happen is now virtually a certainty. What we don't know for sure is when it will happen; it could be as soon as October 31, or it could be deferred. Either way, it will pay to get ready for customs checks and administration sooner rather than later.

Dr Brian Keegan is director of public affairs at Chartered Accountants Ireland