Mr. Gerry Harrahill:

When we say that competence rests with the EU we mean that the framework, the Union customs code, is agreed by the EU 28. The competence rests with the EU and not with us nationally. The interpretation is also a matter that the EU reserves.

Part of the engagement between member states and the Commission is to ensure that across the current 28 countries - soon to be 27 countries - there is a uniform approach. One issue that arises is that if we take a different interpretation to an interpretation in France, that can have a significant negative impact on trade at either end. Thus, there is a real focus at EU level on ensuring consistency of approach. In particular, the focus is on ensuring that the impact for business is the same. Some discretion is available to us about how we do something. Ultimately, however, the impact on business has to be the same so that we do not end up with someone being subject to controls in one location but not in another.

Particular challenges arise. Every year we get a visit from the European Court of Auditors. The court will always pick some aspect of the implementation of the customs regime. It can be a difficult, challenging and robust exercise. Ultimately, the court takes the view that we are in place as agents to collect EU money, and if we do not do that then Ireland owes the European Union a given amount.