As of February 2025, the Windsor Framework continues to reshape trade dynamics between the United Kingdom (UK) and the European Union (EU), particularly affecting traders operating between Great Britain (GB) and Northern Ireland (NI). This agreement, established to address post-Brexit challenges, introduces several key changes due for implementation throughout 2025, aiming to streamline processes and reduce bureaucratic hurdles. But will these really streamline processes for traders?
Introduction of the Green and Red Lanes
By 30th September 2025, the new customs system will be fully operational:
A cornerstone of the Windsor Framework is the introduction of a 'green lane' system for goods transported from GB to NI that are intended to remain within the UK market. This system significantly reduces customs checks and paperwork, however this still requires that carriers provide a simplified dataset containing commercial information for each consignment... and it is not only a requirement carriers need to bear in mind, also freight forwarders and hauliers. So, whilst it is indeed less onerous than completing a full customs declarations, it still is a mammoth administrative task and imagine if they are moving thousands of shipments per day.
Also, in order to benefit from these 'simplified procedures', traders must enrolled in the UK Internal Market Scheme (UKIMS). Whilst enrolling on the scheme itself is relatively straightforward, some traders may face some challenges depending on the business type, goods traded and the overall compliance requirements that they need to follow. For instance, to be eligible, traders must demonstrate 80% of their trade stays within the UK.
Agri-foods moving via the green lane will be subject to reduced checks, and should make the movement of seed potatoes, horticultural products and plants easier. On the other hand though, NI farmers will be required to keep following EU veterinary rules, but GB and NI will in overall face fewer restrictions.
The Red Lane: To be used exclusively for goods at risk to enter the EU market and will be subject to full customs declarations and regulatory compliance.
Full Retail Labeling requirements come into effect on July 2025
All food products moved into NI must have “Not for EU” labels unless they are loose items exempt from controls (e.g., fresh fruits).
Retailers must ensure compliance with UK food safety standards rather than EU rules.
Parcels and e-commerce flexibility
Personal parcels and online orders from GB to NI will no longer require full customs declarations under the Green Lane.
Business-to-business (B2B) parcels still need some customs oversight, but with reduced checks.
Future Negotiations and Potential Adjustments
Looking ahead, the UK government has expressed interest in deepening economic ties with the EU. Discussions are underway regarding potential participation in the Pan-Euro-Mediterranean Convention (PEM) to align rules on raw materials and components that can be used in exports without incurring in tariffs.
In summary, the Windsor Framework introduces pivotal changes in 2025 that are set to impact traders between the UK and EU. UK and EU Traders, hauliers, carriers and freight forwarders need to understand how these changes will impact them and be prepare from the 31st March 2025 for some of these.
Interested in learning more about these changes and how your business may be impacted?
Join our next Trade Forum taking place on the 13th March at our HQ, Elliot House. Hear from experts discussing in more detail the upcoming changes and how traders can prepare for these.
Already trading with Northern Ireland and facing some challenges? Email us at international@gmchamber.co.uk for the chance to join an exclusive roundtable with HMRC on the 13th March.
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