Mr. Gerry Harrahill:

I thank the Deputy for her question. To expand on what Mr. Cody touched on, several things that came together have contributed to this explosion in customs entries. A consequence of the Covid-19 restrictions is that more and more people have gone from shopping in retailers on the main streets of our cities and towns to doing much of that online. That is undoubtedly one element of this increase, and we could see that facet of the change starting to kick in from last year.

The second significant element is that the rules concerning liability for VAT for small packages and parcels changed from 1 July 2021. Formerly, there was an exemption from VAT when people were importing goods valued at less than €22. As part of the move at EU level on rules to try to ensure there was no distortion of competition and to tackle some issues with the valuation of goods, that de minimisrule was removed. If people are now importing something worth €5, that package will be subject to VAT charges but not to customs duties. Those two things together have contributed enormously to causing this situation. A huge number of these customs entries are parcels and packages, as distinct from big consignments. I say that because in the early days of big consignments, and again as a consequence of the transition from the pre-Brexit situation to the post-Brexit changed reality, combined with the impact of Covid-19 and associated restrictions, trade flows slowed down. They are now returning to something closer to normal.

The explosion of activity in this area is not just an Irish phenomenon, however, but one that has been seen in all member states. I attend a meeting every couple of weeks of people involved in this area from the member states. We examine where things stand in this regard in the post-Brexit environment and everybody is sharing that experience. People who never previously had engagement with customs, and never understood what we did, are now suddenly part of this new regime. It is a new reality.

This is also part of why we have done much work last year and this year, leading up to Black Friday, and all those times, for example, to try to focus people's attention on the issue that now arises when importing goods from outside the EU in respect of liability for customs charges and VAT.