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Will the new Windsor Framework boost Northern Irish trade?
TelAve News/10863177
SOUTHAM, U.K. - TelAve -- It was appropriate that the Windsor Framework came into force on 1 May, a date known as Beltane, the mid-way point between Summer and Winter Solstice and the first day of Summer, according to Celtic tradition. The Windsor agreement is an attempt to find a compromise between the EU and the UK regarding trading with Northern Ireland.
The concept behind the Windsor Framework is that it will simplify trade, whilst also satisfying EU trade regulations. And really, that boils down to taxation. The EU does not want British goods to enter the EU through a Northern Irish/Irish, duty-free back door. The solution arrived at is a two-lane system. Green lane goods will be exempt from import duties, whilst red lane goods will not.
Businesses that are registered under the UK Internal Market Scheme (UKIMS) can go through the Green Lane. These are typically authorised goods that are intended for the Northern Irish market and not considered at risk of entering the EU. Whilst shipments without UKIMS registration or that are en route to the EU will be classified as Red Lane.
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The plan is that the Green Lane will allow businesses to import and export between Ireland, Northern Ireland and the UK more easily, whilst the red lane will satisfy the EU's need for parity on taxation. However, the truth is that increased bureaucracy always hits trade. It adds cost, it adds time, and it adds complexity. It remains to be seen how the Windsor Framework will play out in practice.
Businesses will need to weigh up the tax benefits of the Green Lane with the increased time and cost of compliance required for that route. As Invo Fulfilment's (https://invo-fulfilment.co.uk/) Operations Director, Oliver Lancaster, explains, "The complexities of the situation are such that it isn't in our interest to register for the 'green lane' for our parcelled goods as the administrative burden is significant when compared to the 'red lane'. However, the red lane attracts import duties, so for palletised goods, our approach will need to be different. We're going to have to watch and see what happens."
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There may be a drop in trade within Great Britain as the economic viability of sending goods to Northern Ireland remains in the balance for many companies. There is also likely to be an increase in specialist shipping firms that will "handle Windsor" on behalf of businesses.
As well as marking the start of Summer, Beltane was a celebration of the return of life and vitality to the world. After the uncertainty of recent years, Government ministers will be hoping that the Windsor Framework will bring new life and a brighter future for Northern Ireland and its trading partners.
The concept behind the Windsor Framework is that it will simplify trade, whilst also satisfying EU trade regulations. And really, that boils down to taxation. The EU does not want British goods to enter the EU through a Northern Irish/Irish, duty-free back door. The solution arrived at is a two-lane system. Green lane goods will be exempt from import duties, whilst red lane goods will not.
Businesses that are registered under the UK Internal Market Scheme (UKIMS) can go through the Green Lane. These are typically authorised goods that are intended for the Northern Irish market and not considered at risk of entering the EU. Whilst shipments without UKIMS registration or that are en route to the EU will be classified as Red Lane.
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The plan is that the Green Lane will allow businesses to import and export between Ireland, Northern Ireland and the UK more easily, whilst the red lane will satisfy the EU's need for parity on taxation. However, the truth is that increased bureaucracy always hits trade. It adds cost, it adds time, and it adds complexity. It remains to be seen how the Windsor Framework will play out in practice.
Businesses will need to weigh up the tax benefits of the Green Lane with the increased time and cost of compliance required for that route. As Invo Fulfilment's (https://invo-fulfilment.co.uk/) Operations Director, Oliver Lancaster, explains, "The complexities of the situation are such that it isn't in our interest to register for the 'green lane' for our parcelled goods as the administrative burden is significant when compared to the 'red lane'. However, the red lane attracts import duties, so for palletised goods, our approach will need to be different. We're going to have to watch and see what happens."
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There may be a drop in trade within Great Britain as the economic viability of sending goods to Northern Ireland remains in the balance for many companies. There is also likely to be an increase in specialist shipping firms that will "handle Windsor" on behalf of businesses.
As well as marking the start of Summer, Beltane was a celebration of the return of life and vitality to the world. After the uncertainty of recent years, Government ministers will be hoping that the Windsor Framework will bring new life and a brighter future for Northern Ireland and its trading partners.
Source: Invo Fulfilment
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