DEXEU has published the new Withdrawal Agreement and Political Declaration that was agreed with the European Union.

The Withdrawal Agreement sets out the terms of the UK’s exit from the European Union. The new Political Declaration sets out the framework for the future relationship between the European Union and the United Kingdom and reflects the Government’s ambition to conclude a free trade agreement with the EU. The Political Declaration also states that the Court of Justice of the European Union will remain the final arbiter in matters arising from Union law.

The following is a summary of the Withdrawal Agreement.

 

Customs

• Northern Ireland (NI) would remain part of the customs territory of the UK. A customs border would be erected in the Irish Sea, meaning NI will de facto follow the EUs customs rules
  • Customs checks will be carried out at British ports before they enter NI. The UK will administer these checks, but the EU has the right to have its own officials also carrying out checks and the UK is obliged to cooperate with any EU officials
• Goods whose final destination is NI will not pay a tariff unless the good originated from outside the UK or Union, or the good is at risk of entering the single market, in which case they will pay the EU’s tariff
  • Before the end of the transition period, the Joint Committee shall define “processing” and “at risk”, in respect of goods being subsequently moved into the Union
• UK businesses will be reimbursed duties if it can prove that a good/goods did not enter the Union, but if goods enter the Union they will not be reimbursed.

 

UK internal market: Nothing shall prevent the UK from ensuring unfettered market access for goods moving from NI and to other parts of the UK’s internal market. A product originating from NI may be presented as originating from the UK when placed on the market in Great Britain.

 

Regulation of goods: Northern Ireland would adhere to the rules of the EU’s single market, rather than UK rules.

 

VAT and excise

• EU rules on VAT and excise duties will apply in NI (only to goods, not services)
• The UK will be responsible for its collection and will retain revenues resulting from transactions taxable in NI
• The UK will also be able to apply VAT exemptions and reduced rates in NI, as long as they apply in Ireland as well. This does mean that NI could have different VAT rates to the rest of the UK.

 

State aid: EU state aid law shall apply to the UK, including with regard to measures supporting the production of and trade in agricultural products in NI, in respect of measures which affect that trade between NI and the Union.