Smart Border 0 Avoiding a hard border on the island of Ireland for Customs control and the free movement of persons

Figure 3: Pre-Brexit relationships

Source: Swedish National Board of Trade

The withdrawal of the UK from the EU will mean the introduction of some form of border controls.

Figure 4: Post-Brexit relationships

Source: Swedish National Board of Trade

The introduction of border controls along the border will impact a large number of companies that have never previously made an export and/or import declaration. There are a number

of studies that point to the time and cost impacts of border controls and compliance requirements, for example the need to obtain a certificate of origin for exporters.

The potential reduction in cross- EU with the implementation of WTO tariffs together with compliance and border procedures has been
in the value of trade²⁶.


A 2013 study by the OCED found that
lengthy administrative procedures and other delays can increase transaction costs an estimated 2 to 24% of the value of traded goods²⁷ Regarding the impact of specific potential future customs compliance requirements, the total cost of acquiring a certificate or origin for exports from Northern Ireland ²⁸ per consignment²⁹.

Time-sensitive goods, such as agri-food or even goods in just-in-time supply chains, have been found to be particularly sensitive to border delays, with each additional hour of border waiting time for businesses in the EU adding 0.8% to trade costs in relation to their traded value³⁰.

A study for the European Parliament found that if border controls were introduced between Schengen countries, HGVs would be subject to border wait times of between 30 and 60 minutes. The same study found that the value of time for freight waiting at border crossings

31_.


A st
time at the borders and the number of trips taken. The study found a time elasticity value of
-0.5%, so that if wait times increase, the number of trips will fall³².













Car travel for business, commuting and personal reasons would also be impacted by the introduction of any border or identity controls. If border controls were introduced for Schengen countries, it has been estimated that an additional 10-20 minutes would be lost at
travellers³³.



26 _-
Policy Research Institute for InterTradeIreland, June 2017.
27
Directorate, 15 April 2013.
²⁸ GBP 400, GBP/EUR exchange rate based on European Central Bank, Euro foreign exchange reference rates, average for 2016.

²⁹ UK Parliament, Commons Select Committee on Northern Ireland Affairs, oral evidence by Stephen Kelly, Chief
the Republic of Ireland, 22 February 2017.
30

California Homeland Security Center, 2013.

³³ Breemersch T and Vanhove F, Op cit.

4.