Mr. Paul Savage:

I thank Deputy Martin Browne for his question. The Deputy mentioned mixed milk and the percentage of markets that might be affected by that in terms of getting product into places like Japan, Canada and so on. We have been engaging with milk processors over quite a long period regarding the potential impact of rules of origin on this type of exports. As for precisely what the differentiation might be in terms of impact on individual markets, we do not have full details on that. In the context of engaging with processors, that would be considered commercially sensitive in terms of sharing that with the Department. We do not have full figures on those but the key thing from our point of view is that we have continued our efforts to engage with the European Commission on this issue and to try to find a resolution. I mentioned earlier that the Minister, Deputy Coveney, is in ongoing contact with Commission Vice President Maroš Šefovi on a number of issues arising from the withdrawal agreement and means of origin is among those. Those contacts will continue because they are of a political rather than technical nature.

The Deputy mentioned duties or charges on products coming in from Great Britain. I think he might be referring to issues around the use of distribution centres in GB for the processing of products coming from EU markets, brought to centres in GB and then separated or repackaged for onward movement to Ireland or other member states. There is an emerging issue there relating to rules of origin because, from a Commission point of view, once a product goes into those types of distribution centres, it is deemed to have gone into free circulation so there is no way we can say such products are definitively of EU origin, from the Commission's point of view. We have been engaging with stakeholders on this and have spoken with Food Drink Ireland and others around the difficulties being encountered.

Where movements are coming from the EU via GB, for instance, into Ireland, the easiest way to resolve the difficulties is to ensure they move under a customs transit procedure. That is the most straightforward way to do it in order that they remain in the customs system and within customs control. It means moving them to a customs warehouse or a customs bonded facility where any separation or mixing or matching of product might take place before onward movement. We have engaged with operators on that front and this is around adjustment of supply chains in the context of reaction to Brexit because, not just in the agrifood sector but across all sectors, there are issues arising related to rules of origin where Great Britain is used as a hub, either for transport of product or as a step in the process of moving product from one location to another.

Again, operators and the operational supply chains will have to adjust over time but one solution in this area is to ensure that goods are moved under customs transit arrangements.