Firms face €100 fee to cross hard border

Post-Brexit custom charge likely to be imposed

IRISH businesses selling and moving goods across the border or to Britain could face an additional €100 fee per journey, a customs expert has warned.

Carol Lynch, a partner in the audit firm BDO, told the Oireachtas Finance Committee that the changes, postBrexit, would come as a harsh lesson to many small businesses.

Brian Keegan, director of public policy and tax at Chartered Accountants Ireland said the new customs clearance charges would be ‘tantamount to the introduction of a new tax’.

Ms Lynch said: ‘Firstly there will be a requirement to lodge customs declarations on all imports from and exports to the UK. It is to be assumed the same requirement will be implemented in the UK. There is a Harsh lesson: Carol Lynch necessary cost for this, either in the payment of a clearance agent or the recruitment of staff in addition to logistics related costs. A reasonable estimate would be €100 per movement.’

This would probably work at €50 on both sides of the border, she added.

She added that companies with little experience of making such declarations would have a steep learning curve ahead of them. The cost of such declarations is likely to be separate to any customs and levies that are imposed on goods crossing the border.

Mr Keegan also warned committee members that the introduction of customs controls between Ireland and the UK is all but inevitable, and that our European partners will insist on complete and rigorous controls over goods traded between here and the UK, and further afield.

He said: ‘Because the nature of the land border to be created for customs is virtually unique, Ireland will be under intense scrutiny from our EU partners to get our customs controls with the UK both watertight and legally valid.’

He also pointed out the difficulties which many smaller Irish exporters and importers will face for the first time.

‘The real challenge is to facilitate customs administration for the many businesses exclusively importing from or exporting to the UK which have to deal with customs obligations for the first time. For them, this is tantamount to the introduction of a new tax.’

In February, Michael Lux, the former head of the European Commission’s customs unit warned the Northern Ireland Affairs Committee at Westminster that people carrying more than €300 worth of goods across the border would have to go through a customs check.

Meanwhile, yesterday, the chairman of the Revenue Commissioners said he is ‘almost 100% certain’ there will be no new customs posts along the Irish border after Brexit.

Niall Cody categorically rejected reports that it was actively looking for locations to establish new checkpoints.

But Mr Cody told a parliamentary committee in Dublin: ‘We are not planning customs posts. Comment – Page 16

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