Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I thank the Deputy for raising this important matter. Like him, our thoughts are with the families in his constituency who are facing an uncertain time at the moment. The Deputy will be aware that the tax and customs affairs of any business are confidential and there is a duty of confidentially imposed on Revenue in this regard by virtue of section 851A of the Taxes Consolidation Act 1997. Accordingly, Revenue cannot comment on, and cannot provide me with details in regard to, the particular case that is the subject of the Deputy's concern.

However, Revenue has provided some general information that should be helpful to the Deputy in understanding the general situation as regards customs formalities and how they might apply in the case he has raised. Normally, import duties, including customs duty and VAT, are payable at the point of entry of goods into the EU from a third country. In such a situation of a direct import into Ireland from a non-EU country, the import duties would be payable at the point of importation unless alternative procedures have been put in place as agreed with Revenue.

As regards alternative procedures and as a way of supporting and encouraging trade and business, there are a number of customs procedures and authorisations which may be availed of whereby the payment of import duties can be suspended. An example would be where goods are imported and subject to certain modifications or alterations before they are either re-exported from the EU or released into free circulation on the European market. The suspension of the requirement to pay import duties is an important support for business, especially in the type of scenario I outlined, where there is a time lag between importation of the goods and their eventual circulation on the market after any alteration or modification.

To avail of any customs simplification process and to be able to defer the payment of duties, a business must apply to, and be approved by, Revenue for such a simplification. I am advised by Revenue that engagement with businesses on such a basis is a regular part of its engagement with trade and business. I am also aware that Revenue would have encouraged businesses to consider the relevance of such simplification to their business in the lead-up to 1 January 2021, as part of an approach to mitigate the impacts of the UK leaving the EU.

To avail of the type of simplified procedure I have outlined, a business must have the appropriate authorisation from Revenue. An application for such authorisation is made electronically and Revenue reviews the material supplied by the business to ensure that it meets the EU requirements and qualifies for the procedure. Depending on the level of complexity of the processing in Ireland, this can take some time and may require additional information from the business. In such instances, there may be ongoing engagement between Revenue and the business before the authorisation is awarded. In order to secure the authorisation, a financial security in the form of a comprehensive guarantee is also required.

I am further advised by Revenue that a retrospective authorisation may be issued in exceptional circumstances. Details of such circumstances should be submitted by the trader to Revenue, which will examine and make a decision on whether they meet the EU criteria for granting retrospection. The benefit of retrospection is that any customs duty or import VAT paid by the trader on goods imported under the inward-processing authorisation may be refunded.

In summary, authorisation for simplified customs procedures is very much a support and help that is available to business, but the facility to suspend the payment of import duties is a significant one. Revenue must ensure that the authorisation is appropriate and, once approved, covered by an appropriate level of financial guarantee. I am assured by Revenue that it actively engages with all applicants and is conscious of the importance of bringing such matters to finality as quickly as possible. Revenue has confirmed to me that it is actively engaged with the business identified by Deputy Cowen and its advisers on the current matter.

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