The Customs (Northern Ireland) (EU Exit) Regulations 2026
Published 16 April 2026
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Who is likely to be affected
Businesses and organisations who bring goods into Northern Ireland.
General description of the measure
The measure introduces optional facilitations that will make it easier for businesses to benefit from remission or repayment of Customs Duty chargeable when they bring goods into Northern Ireland. It changes the rules in relation to remission or repayment of duty under the Northern Ireland Duty Reimbursement Scheme (DRS) to create a link with the arrangements for duty relief granted under the Northern Ireland Customs Duty Waiver Scheme (CDWS).
The measure allows UK businesses to apply to switch an amount of relief previously granted under CDWS to an award under DRS, subject to certain eligibility criteria and evidence. The measure also permits DRS claims to be made in certain cases where it is not practical for a business to monitor the use of each individual item held within a common stock of interchangeable goods.
Policy objective
The objectives of this measure are to make the CDWS and DRS more accessible to businesses and easier to use, and to ensure that these schemes remain an effective option in reducing the duty burden on businesses when businesses bring goods into Northern Ireland and cannot avail themselves of other Windsor Framework facilitations.
Background to the measure
The changes within this measure have not previously been announced.
The changes are optional facilitations for which consultation is not considered necessary. However, HMRC is in regular discussion with businesses and other groups about UK customs matters, including these changes.
Detailed proposal
Operative date
The measure is expected to come into operation from 25 May 2026, although this date is subject to change.
Current law
The main provisions of UK law concerning Customs Duty are in the Taxation (Cross-border Trade) Act 2018 (TCTA) and regulations made under that Act. These regulations include the Customs (Northern Ireland) (EU Exit) Regulations (S.I. 2020/1605) (Northern Ireland Regulations), which provide for CDWS and DRS.
Further details are set out in public notices and ‘Duty incurred in Northern Ireland — repayment and remission on production of evidence (eligibility criteria and other conditions)’, which are published as part of the Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020.
Proposed revisions
The Northern Ireland Regulations are revised to make two new optional facilitations available to businesses bringing goods into Northern Ireland.
Firstly, the revisions will enable a UK business that has been granted duty relief in respect of goods under CDWS to apply to HMRC to have that grant of relief cancelled and replaced with a grant under DRS, subject to certain conditions. The measure includes arrangements under which a business can apply for this facilitation, which will be subject to various requirements concerning the provision of evidence and the use of goods, as well as other matters concerning the replacement of the CDWS award with an award under DRS.
Revisions to the Northern Ireland Regulations will also allow a claim for remission or repayment of duty under DRS to be made with reference to the use of goods of the same type (‘interchangeable goods’) rather than the goods in respect of which the duty has been incurred. The measure includes conditions and evidence requirements that must be met before goods can be considered ‘interchangeable’, as well as safeguards to ensure that this facilitation is not abused.
The measure also includes minor and consequential changes and corrections to the Northern Ireland Regulations.
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| negligible | negligible | negligible | negligible | negligible | negligible |
This measure is expected to have a negligible impact on the Exchequer.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
There is no impact on individuals as this measure only affects businesses.
Equalities impacts
This measure only affects businesses, therefore it is not anticipated that there will be disproportionate impacts on those in groups sharing protected characteristics.
Administrative impact on businesses including civil society organisations
This measure will have a negligible impact on businesses which are involved in importing and trading goods into Northern Ireland who opt to use the new facilitations. This will encompass a mix of small, medium, and large enterprises. Businesses who want to use the facilitation must apply through the online form, and provide evidence for the relevant goods.
One-off costs will include familiarising themselves with the change and upskilling staff on the change. Ongoing costs could include providing HMRC with more information.
This measure is not expected to disproportionately impact civil society organisations.
This measure is expected overall to impact businesses’ experience of dealing with HMRC since they will be required to provide HMRC with more information, however this will allow more businesses to claim for the DRS and make compliance less burdensome resulting in approximately 450 additional claims.
Operational impact (£ million) (HMRC or other)
The operational impact is expected to be minimal. Some internal process adjustments will be needed to accommodate the changes, including updates to guidance and forms, which will be addressed through existing business as usual processes.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The provisions in this measure will be kept under review through communication and ongoing stakeholder engagement with businesses, trade bodies and other representatives of businesses.
Further advice
If you have any questions about this change, contact the Northern Ireland Stakeholder Engagement Team by email: nistakeholderengagementteam@hmrc.gov.uk.
Declaration
Daniel Tomlinson, MP, Exchequer Secretary of the Treasury, has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.