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New UK Internal Market Scheme to replace UK Trader Scheme in September 2023

By July 21, 2023No Comments

Earlier this year, the Government and the EU agreed the Windsor Framework. The agreement establishes a new scheme, the UK Internal Market Scheme (UKIMS), for the movement of ‘not at risk’ goods into Northern Ireland.

The scheme is now open for registration and will replace the UK Trader Scheme (UKTS) from 30 September 2023.

The UK Internal Market Scheme will continue to enable registered traders to move goods in line with existing ‘not at risk’ arrangements. It will also, from October 2024, ensure that ‘not at risk’ movements are also freed of unnecessary paperwork, checks and duties. Only existing commercial information will be needed.

The Scheme will significantly expand the number of businesses eligible to move goods as ‘not at risk’ of entering the EU through three important changes:

  1. All businesses established in the United Kingdom will now be eligible and will move away from the previous restrictions that required a physical premises in Northern Ireland.
  2. We will increase the turnover threshold below which companies involved in processing can move goods from the current £500,000 limit up to £2 million.
  3. Even if businesses are above that threshold, they will be eligible to move goods under the scheme if those goods are for use in the animal feed, healthcare, construction and not-for-profit sectors. They will be able to do this even if they sell on the eventual product to one subsequent entity in the supply chain, in a significant improvement to existing arrangements. Inputs into food production will continue to benefit from inclusion in the ‘not at risk’ definition.

Once traders receive confirmation of their UK Internal Market Scheme authorisation, they can start using it straight away. However, they must not declare goods ‘not at risk’ under the expanded commercial processing criteria until they come into effect on 30 September 2023.

The guidance explains the UK Internal Market Scheme in full. As the scope and benefits of the scheme have been expanded, in order for HMRC to complete their enrolment onto the new scheme, traders will need to provide HMRC with some additional information so that they can carry out these checks.

HMRC would encourage traders who are UKTS authorised to transfer their authorisation onto the new UK Internal Market Scheme by 31 July 2023, to ensure that we can complete their enrolment onto the UK Internal Market Scheme by 30 September 2023.

From 30 September 2023, the UK Trader Scheme will no longer be used as the authorisation for moving ‘Not at risk’ goods into Northern Ireland, and traders will need to use your new UK Internal Market Scheme authorisation, once it has been granted.

Dawn