Trade compliance: Updates on Northern Ireland and the UK Internal Market Scheme
03/03/2025
As the UK continues to adapt to the post-Brexit regulatory landscape, it’s essential for UK fashion and textile businesses to stay informed about changes that could impact trade, supply chains, and compliance. In particular, the arrangements with Northern Ireland and the evolving Internal Market Scheme (IMS) remain key areas of focus.
To support our members, we’ve put together the latest updates on Northern Ireland’s relationship with the EU, the Windsor Framework, and the UK Internal Market Scheme (UKIMS). We’re also providing practical resources, including detailed guides on the IMS, a UKIMS overview, and templates for employees and customer declarations.
Read on to ensure your business is prepared for these ongoing regulatory shifts.
Northern Ireland and the EU Relationship
It’s important to note that Ireland is an EU member state, while Northern Ireland is part of the UK. During the Brexit referendum, Northern Ireland voted to remain in the EU, with the majority of its population supporting this stance.
As a result, the Windsor Framework was introduced to address the unique situation of Northern Ireland. This framework allows Northern Ireland to remain within the UK but continue to benefit from certain EU benefits, especially in terms of trade.
The Northern Ireland Protocol ensures that there is no hard border between Northern Ireland and the Republic of Ireland. Additionally, it allows Northern Ireland to continue following EU single market rules for goods, while the rest of the UK operates outside of these EU rules.
This arrangement presents both opportunities and challenges for businesses operating in or with Northern Ireland and the Republic of Ireland. It is crucial for businesses to understand these changes and how they impact trading, compliance, and operations.
Introducing the UK Internal Market Scheme (UKIMS)
The UK Internal Market Scheme (UKIMS), which is part of the UK Internal Market Act 2020, is scheduled to come into effect no earlier than 31st March 2025. The scheme is designed to ensure that businesses in the UK can continue to trade freely across the four nations—England, Scotland, Wales, and Northern Ireland—without facing internal barriers.
One of the key features of the UKIMS is that it will facilitate the movement of goods across the UK internal market while ensuring that Northern Ireland can continue to align with the EU single market for goods, due to the Northern Ireland Protocol.
For businesses involved in cross-border trade between Northern Ireland and the Republic of Ireland, the Internal Market Scheme will be essential for continued smooth trade across the borders without facing unnecessary barriers.
New member guides and templates to support your business
To help businesses comply with the IMS and navigate the new regulatory framework, UKFT has a suite of resources available for members, including:
- Guide on the Internal Market Scheme (IMS): This guide provides an overview of the Internal Market Scheme.
- Guide on the UK Internal Market Scheme (UKIMS): This guide provides an overview of the UKIMS, how it works, and the steps businesses need to take to ensure compliance when trading across the UK and Northern Ireland.
- Template for Employees Going Through the Scheme: This template helps (mostly small) businesses manage the application process required for employees undergoing criminal history checks as part of the Internal Market Scheme. This may not be necessary for all businesses.
- Template for Customer Declarations: This template is designed to assist businesses in creating the required customer declarations. This is particularly important for preventing goods from being moved into Ireland from Northern Ireland, as businesses need to ensure that they comply with both UK and EU rules to avoid any unintended border issues.”
UKFT members
If you are a UKFT member wanting to access the guides or ask questions about a compliance issue, get in touch at info@ukft.org
For details on how to become a member, visit www.ukft.org/membership