15th October 2019
The Minister for Business, Enterprise and Innovation, Heather Humphreys T.D., today (October 15, 2019) urged businesses to make sure they are ready to avail of the Customs Transit Procedure for moving goods through the UK Landbridge post-Brexit. It takes time to put this procedure in place so businesses should start planning now.
The Customs Transit Procedure removes the requirement for businesses who are transiting goods through a non-EU country to pay duties and complete customs declarations when they enter the country and again when they leave it to re-enter the EU.
However, to use the Customs Transit Procedure a business must have a Revenue-authorised Comprehensive Guarantee, which covers Transit through third countries, which the UK will be post-Brexit. Importantly, to avail of the Transit element of that guarantee, a business must also have in place a financial guarantee from a bank, to cover potential and actual customs debts such as customs and taxes associated with goods transiting the UK.
Minister Humphreys announced today that the Department of Business, Enterprise and Innovation’s Credit Guarantee Scheme can be used by business to back their financial guarantee from a bank. The Credit Guarantee Scheme can be availed of through Bank of Ireland, Ulster Bank and AIB and it provides an 80% guarantee to the banks on qualifying facilities to SMEs.
Calling on businesses to put the necessary procedures in place, Minister Humphreys said:
“Businesses that move their goods to or from mainland Europe using the UK Landbridge need to be aware that customs procedures will apply to them post-Brexit.
‘Transit’ is a customs procedure that allows goods to pass freely across customs borders without the requirement to complete customs declarations and with all duties and other charges suspended until arrival at their destination. Simply put, it will improve the process of moving goods to and from the Continent through the UK after Brexit.”
Minister Humphreys commented, “It can take time to put the necessary Comprehensive Guarantee and accompanying financial guarantee in place. So, whether you’re a cement manufacturer exporting to Germany or a florist importing flowers from Holland using the UK Landbridge, I would urge you to contact Revenue and your bank or financial providers straight away. Alternatively, you can engage a customs agent or logistics company to do so. Whichever procedure you choose, you need to begin the process without delay”.
Further information about actions businesses can take now to prepare for Brexit is available on dbei.gov.ie.
NOTES TO EDITOR
Transit is a customs procedure that allows goods to be moved across international borders under customs control. A financial guarantee is required to secure all charges on the goods. For more information visit:
You must have security in place to cover potential or existing customs debt for certain customs procedures or facilities. This security must be in the form of a customs guarantee. A comprehensive guarantee allows you to combine all your current customs bonds and guarantees. You will need an authorisation from Revenue to use a comprehensive guarantee. For more information visit:
Credit Guarantee Scheme
The Credit Guarantee Scheme aims to assist viable SMEs which, under normal lending criteria are unable to borrow from their bank, in accessing credit. The scheme operates by providing an 80% guarantee to participating finance providers on qualifying facilities to SMEs. The SME borrower pays a 0.5% annual premium to the Government (maximum allowable annual premium is 2%) in addition to the interest rate/fee charged by the bank.
The scheme has been designed to address three barriers to lending:
- Inadequate collateral
- Novel business market, sector or technology which is perceived by finance providers as higher risk under current credit risk evaluation practices
- Need for refinancing caused by the exit of an SME’s lender from the Irish market
The scheme is operated on behalf of the Department of Business, Enterprise and Innovation by the Strategic Banking Corporation of Ireland (SBCI) and is available from participating banks.
Key features of the scheme:
- Facilities of €10,000 up to €1m
- Terms of up to 7 years
- Term Loans, Demand Loans and Performance Bonds
For more information visit:
The Department of Business, Enterprise and Innovation (DBEI) plays a key role in implementing the Government’s policies of stimulating the productive capacity of the economy and creating an environment which supports job creation and maintenance. The Department also has a remit to promote fair competition in the marketplace, protect consumers and safeguard workers.
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