BROKER deliveries to Northern Ireland are currently tangled in unforseen red tape following the UK’s departure from Europe.
There is confusion over whether vehicles leased to residents of Northern Ireland and supplied from mainland UK are subject to tariffs.
The BVRLA has produced a page to deal with leasing vehicles to Northern Ireland. The document says:
“Following the end of the transition period, leasing firms have faced challenges getting vehicles into Northern Ireland (NI) that have been transported via Great Britain (GB). There have been two areas of confusion:
- What are the correct customs procedures to follow for a leased vehicle?
- Could vehicles entering NI from GB have to pay tariffs?
“The BVRLA has worked with HMRC, BEIS and the Institute of Exports and International Trade to create clear guidance for members on these issues.”
Despite the BVRLA advice, there remains a high degree of nervousness among both OEMs and broker funders over the impact of potentially incorrect procedures.
Managing director of Bridle Vehicle Leasing and chair of the BVRLA Leasing Broker Committee, Alan Carreras, offered this commentary:
Delivering broker-concluded lease deals to customers in Northern Ireland has been hit by some fallout from Brexit. Some funders, but not all, are suspending deliveries to Northern Ireland at the moment. This is due to some ambiguity over whether duty is payable and the terminology over imported cars. Short-term there remains an issue before we receive precise details over how we are going to trade, but there is no desire to cut off Northern Ireland. It’s more a case of unravelling the red tape. In the meantime we may have to source vehicles locally, which will be beneficial to local trade in Northern Ireland, even though the terms might be different.
For brokers wishing to get the BVRLA’s guidance on what should be done, you can navigate to this page on the BVRLA website: EU Exit Business Advice.
In the meantime, Shashi Maharaj, legal and membership director at the BVRLA provided this additional advice:
“The BVRLA is acutely aware of the ongoing challenge of getting leased vehicles into Northern Ireland. The Government has provided guidance on moving goods into and out of Northern Ireland, and we have shared this with members, providing sector-specific clarification where we can.
“However, there is still a degree of confusion, especially around who has what responsibilities in the vehicle logistics supply chain. The BVRLA has convened an urgent Brexit Working Group to work with members and resolve all remaining areas of uncertainty.
“Any solution will require support from not just leasing companies but also dealers and logistics firms. We are in communication with their trade associations to ensure all parties are aware of how to correctly treat these vehicles and what their responsibilities could be.”
Otherwise brokers should follow guidance from their individual funders as to what is and what is not permissible at the moment.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
