TARIFF QUOTAS, NORTHERN IRELAND AT RISK

The Withdrawal Agreement provides for a protocol on Northern Ireland, which establishes that Northern Ireland continues to be part of the United Kingdom; however, goods of Irish origin have access to the EU market, without the application of duties or economic restrictions.

The Protocol allows the free movement of goods between Northern Ireland and the EU and vice versa, but (it is not concerned with charging third countries; it follows that imports carried out under import tariff quotas or other Union import quotas applicable to goods originating in a third country transported to Northern Ireland could not be counted in the calculation of that that country’s rights towards the Union, and this could, in theory, lead  to the avoidance of EU taxation and economic policies. To overcome these risks and provide appropriate legal provisions, the European Commission adopted a legislative proposal on August 14, 2020, under which goods imported into Northern Ireland from no-EU countries would not benefit from union tariff quotas and other import quotas, unless they are intended to be transferred from Northern Ireland to the European Union. The proposal was voted on by the European Parliament in plenary composition on November 25, 2020, and the Regulation was adopted by the Council at first reading on December 16, 2020.