LONDON (UK) – The National Audit Office said on Friday that Northern Ireland will not be ready on January 1 to implement all that is needed to ensure the smooth flow of trade with the rest of Britain as mandated by the Brexit divorce deal.
The NAO, which reviews government spending, said that borders of the nation would witness disruptions when the UK finally bids goodbye to the EU whether or not a trade agreement is reached with Brussels.
“There is a risk that widespread disruption could ensue at a time when government and businesses continue to deal with the effects of COVID-19,” it said.
Exporters will have to file customs and safety declarations from Jan. 1 even if the country reaches an agreement with the EU.
According to the NAO, ports now have little time to integrate or test their systems with the yet-to-be-launched IT services. It added that there were not enough customs sites or brokers to help the industry adapt to the new settings.
“Disruption is likely and government will need to respond quickly to minimise the impact,” said NAO chief Gareth Davies.
It will be a really challenging situation in Northern Ireland as it requires some goods from the rest of Britain to be inspected in order to protect its trade with the Republic of Ireland, which is a member of the bloc.
According to the NAO, the department tasked with the systems and infrastructure to carry out an inspection on animals and plants believes the work will not be ready in time and it is seeking contingency measures.
The NAO reports says that although the customs office has made considerable progress on the issue, it still remains “very high risk”.
Yet another area of concern is the government plan to ensure the smooth flow of goods in one transit movement through several EU nations and many trucking firms are expecting to use it. But NAO says it would be challenging to deliver this.
NAO said much needs to be done by the customs office to tackle the expected 270 million declarations a year.
According to Adam Marshall, who heads the British Chambers of Commerce, the report was right. “This is the logical consequence of the UK government not providing clear, actionable information to businesses – or many of the key IT systems – in good time for firms to prepare,” he said.
Opposition MP Meg Hillier, who chairs parliament’s Committee of Public Accounts, said it was a matter of worry that with just two months to go, important computer systems had not been tested and a major customs system had to be rebuilt.
On the other hand, the government said it had allotted 84 million pounds to train customs intermediaries and phased in paperwork demands for imports and boosted logistics for critical goods.
The report also warned that 7,000 trucks could be held in queues in Kent.