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Irish Business and Brexit

By January 19, 2021June 26th, 2024No Comments


Irish Business and Brexit

Now that Brexit is finally taking effect, we are seeing many Irish businesses struggle to navigate the new issues presented when trying to deal with UK-based elements of their business. Below are just some of the areas which Irish business need to keep in mind when planning for the future.

  1. Time and Money

In the past week there have been reports of delays and additional costs for Irish supply chains which rely on moving goods through the UK, with traffic between Ireland and the UK being substantially reduced as a result.

One of the changes brought about by Brexit is the introduction of extra charges on imports. For example, customers can now expect to pay Customs Duty when buying goods from the UK which have an intrinsic value greater than €150.

  1. Data Protection

As any Data Protection Officer will be aware, personal data may only be transferred to a Non-EU / third country where that country has adequate data protection laws. To avoid damaging present arrangements, the UK and EU agreed a temporary extension of between 4 and 6 months to allow the EU to reach an adequacy finding on the UK’s data protection regime.

Businesses need to keep an eye on this process because if it should become likely that the UK will not reach the standards set by the EU then businesses will need to ensure they have permission to send personal data to UK processors or risk substantial repercussions.

  1. Other Legal Issues

While legal systems across the EU vary greatly, one benefit to EU membership was that laws such as the Brussels I Recast Regulation, established effective mutual recognition and enforcement of judgments between EU member states.

In the aftermath of the UK’s exit, other mechanisms will have to be used, giving rise to some administrative delays as the courts familiarise themselves with the new protocol.  Furthermore, in order to enforce a UK judgement in Ireland we will now need to issue fresh proceedings.

As above the effect of this change will not likely show for some months as the Recast Regulation shall apply to the recognition and enforcement of judgments where proceedings issued before the end of the transition period.

In summary, Brexit is only starting to show its impacts on Irish businesses. In the coming months and, in particular once the Covid-19 restrictions begin to be reduced we will see a divergence between UK and European laws. As the only member of LawNet in the Republic of Ireland (and consequently the EU) Dillon Solicitors has a connection with over 60 UK-based firms who cater to a similar client base of small to medium sized businesses.

If you have any queries or require any advice on any of the matters referred to in this article do not hesitate to contact Brendan Dillon or Conor White on 01 2960666.