The Windsor Framework

In this blog, we briefly explain the impact of the recent amendments to the Northern Ireland Protocol and what they might mean for your business.

 

Old position – the Northern Ireland Protocol

The Northern Ireland Protocol came into force on 1 January 2021 as a result of the UK leaving the EU single market; requiring products placed on the market in Northern Ireland to meet the technical requirements for placement on the EU single market.

The Protocol is designed to preserve an “open land” border between Northern Ireland and the Republic of Ireland, a requirement under the Good Friday Agreement. Any threat to the open border is a major political issue for the island of Ireland, but an open border also meant that the EU single market had a land border with the UK that was “invisible”. Given that goods that do not conform with EU standards could easily move into the single market without appropriate checks via such an invisible border, it is also perceived as a threat to the EU single market.

As a solution, the Northern Ireland Protocol placed a customs border in the Irish Sea so any goods moving from Great Britain to Northern Ireland and vice versa are subjected to customs checks at ports in Northern Ireland and Great Britain. This ensures preservation of the open land border on the island of Ireland and also protects the EU single market (as goods imported to the island of Ireland are subject to customs checks in line with EU law). For this arrangement to work, Northern Ireland has to observe EU goods standards and customs procedures and align with relevant EU rules relating to the placing on the market of manufactured goods. This creates a “dual regulatory regime” whereby Northern Ireland has to observe EU and UK customs rules.

 

New position – the Windsor Framework

The Windsor Framework is a newly negotiated agreement which alters the practical implementation of the Northern Ireland Protocol through the introduction of “green” and “red” lanes for goods.

Goods imported and placed on the market in Northern Ireland from Great Britain and vice versa (i.e., within the UK market) will use the green lane, meaning they will face minimal paperwork and no routine physical checks. The Windsor Framework expands the number of businesses who can be classed as internal UK “trusted traders” to move goods not at risk of entering the EU through the new UK Internal Market Scheme (UKIMS), thereby allowing access to the green lanes. Large businesses that are members of the existing UK Trader Scheme will automatically be moved onto UKIMS.

Goods imported and placed on the market in the Republic of Ireland (i.e., the EU single market) from Great Britain via Northern Ireland will use the red lane, and will have to undergo EU customs and other checks at Northern Irish ports, much as under the existing Northern Ireland Protocol, so as to maintain the Irish open border and protect the EU single market. Goods moving via the red lane will therefore continue to be subject to ordinary EU third country processes and requirements, including customs procedures. From a UK market perspective, products placed on the Northern Ireland market which are intended to stay within Northern Ireland (and therefore the UK market) will not be subject to checks and paperwork requirements.

 

Implementation

The Windsor Framework does not bring the above arrangements into law – it is merely a policy framework around which legislation will be drafted. The UK-EU Joint Committee approved the Windsor Framework on 24 March 2023, and in doing so agreed to bring forward legislation in the UK and the EU to bring the new arrangements into force.

The UK government's position is that “the specific instruments taken forward to give effect to the Windsor Framework domestically will be set out in due course”.

On the EU side, implementation has already begun. If undertaken through the ordinary legislative procedure this would usually take several months to over a year, but “special” legislative procedures are being utilised which are much quicker. The Commission adopted the following proposals for Regulations on 27 February 2023, and on 9 May 2023 the European Parliament formally adopted them at first reading. It is expected that the Council will also formally adopt them at one of its next meetings, after which they will enter into force.

 

Next steps

There is a lack of detail in the Framework as to how key arrangements will function in reality (particularly as regards identifying products destined for the EU vs. UK), which means that the legislative processes may take longer to allow for sufficient details to be agreed.

However, as the EU and UK share a strong political will to see the proposed arrangements become reality and clearly recognise the benefits for business and industry, it can be expected that each legislature will expedite their processes to implement the Windsor Framework as quickly as possible over the coming weeks and months.

Given the relatively quick turnaround for the abovementioned proposals, it is reasonable to expect the announcement of further measures soon. We will continue to monitor and provide updates via the Blog.

The Windsor Framework: a new way forward command paper provides further information.