Open border ‘impossible’ from customs perspective

An internal report on the likely impacts of Brexit found that every day 13,000 commercial vehicles cross the border. The report found a completely open border is not possible from a customs perspective, and it would be naive to believe a unique arrangement can be found.

It concluded that Ireland’s customs infrastructure would be overwhelmed by a huge increase in volume of work because of Brexit and the impact on the border.

“Once negotiations are completed... the UK will become a third country for customs purposes and the associated formalities will become unavoidable. While this will affect all member states, the effect will be more profound on Ireland as the only EU country to have a land border with the UK,” it states.

The news follows an Irish Examiner report which revealed Revenue officials had begun scouting potential checkpoints near the border, but such work was put off given the political backlash.

The report, leaked to RTÉ, states that a year before Brexit, Revenue began exploring the potential impact on the customs interface between Ireland and the UK. It found that at present, 91,000 Irish companies trade with the UK.

Once Brexit occurs, their customs declarations will mean an 800% increase in volume. According to the report, that will mean special permits, extra investment, more paperwork, and potential delays.

Contrary to statements from the Irish and UK governments that there should be no physical border, Revenue warns that ports and airports will need extra infrastructure, such as temporary storage facilities for customs clearance. Small regional airports will need customs infrastructure because of Brexit. Revenue itself will need a big increase in staffing levels, the report states. For traders, the report says, the administrative and fiscal burden cannot be underestimated.

It is understood that the Revenue report into the implications of Brexit was updated several times after the referendum and has remained an aide-memoire as officials come to terms with the potential effects.

The report spells out the options governing Norway and Switzerland’s trading relationship with the EU, and the free trade agreement with Canada. “At some point a similar arrangement between the EU and UK is conceivable,” the report says.