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Trade and Exports

Overview of Ireland's trade policies, key export industries, and international trade agreements.

Sections

1. Overview of Ireland’s Trade and Export Economy

Ireland is a small, open economy that is deeply integrated into global trade networks. It is a member of the European Union (EU) and the Eurozone, which provides access to the EU Single Market and Customs Union. Ireland is also a member of the World Trade Organization (WTO), which governs international trade rules.

  • Key Trade Partners: Ireland’s largest trading partners include the United States, the United Kingdom, the European Union (notably Germany, France, and the Netherlands), and China.
  • Export-Driven Economy: Exports account for a significant portion of Ireland’s GDP, with the country being a global hub for high-value goods and services.

2. Major Exports from Ireland

Ireland is known for its high-tech, pharmaceutical, and agri-food exports. Key export categories include:

  1. Pharmaceuticals and Medical Devices:

    • Ireland is a global leader in pharmaceutical production, with companies like Pfizer, Johnson & Johnson, and Novartis operating in the country.
    • Medical devices and biopharmaceuticals are also major contributors to exports.

  2. Information and Communication Technology (ICT):

    • Ireland is home to many multinational tech companies, including Google, Apple, and Microsoft, which export software, IT services, and hardware.

  3. Agri-Food and Beverages:

    • Ireland is renowned for its high-quality agricultural products, including dairy (butter, cheese), beef, and seafood.
    • Irish whiskey, beer (notably Guinness), and other beverages are iconic exports.

  4. Chemicals:

    • Organic chemicals and chemical products are significant export categories.

  5. Financial and Business Services:

    • Ireland is a hub for financial services, with exports of financial, insurance, and business services growing steadily.

3. Trade and Export Regulations in Ireland

Ireland’s trade regulations are aligned with EU laws, as it is a member state. Below are the key regulatory considerations:

Customs and Tariffs

  • EU Customs Union: Ireland follows the EU’s Common Customs Tariff, meaning there are no customs duties on goods traded within the EU.
  • Non-EU Trade: Goods imported from or exported to non-EU countries may be subject to customs duties, VAT, and excise duties. The EU has free trade agreements with many countries, which may reduce or eliminate tariffs.
  • Customs Declarations: Businesses must submit customs declarations for goods traded with non-EU countries. This is done through the Automated Import System (AIS) or Automated Export System (AES).

Export Controls

  • Certain goods, such as military equipment, dual-use items (goods with both civilian and military applications), and cultural goods, require export licenses.
  • Exporters must comply with EU sanctions and embargoes, which may restrict trade with specific countries.

Product Standards and Certifications

  • Products exported from Ireland must meet EU standards for safety, health, and environmental protection.
  • CE marking is required for many products to indicate compliance with EU regulations.

VAT and Taxation

  • Exports outside the EU are generally zero-rated for VAT purposes, meaning no VAT is charged.
  • Businesses must register for VAT if their turnover exceeds the threshold (€37,500 for services or €75,000 for goods).

Brexit Considerations

  • Since the UK left the EU, trade between Ireland and the UK (excluding Northern Ireland) is subject to customs checks and additional documentation. The Northern Ireland Protocol ensures that goods moving between Ireland and Northern Ireland remain free of customs checks.

4. General Costs of Trade and Export

The costs associated with trade and export activities in Ireland depend on factors such as the type of goods, destination, and mode of transport. Key cost considerations include:

  1. Customs Duties and Taxes:

    • As mentioned, exports to non-EU countries may incur customs duties and VAT.
    • Excise duties apply to specific goods like alcohol, tobacco, and fuel.

  2. Logistics and Transportation:

    • Ireland’s geographic location as an island nation means that most goods are transported by sea or air.
    • Shipping costs can vary significantly depending on the destination and volume of goods.

  3. Compliance Costs:

    • Businesses may incur costs for obtaining certifications, licenses, and meeting regulatory requirements.

  4. Insurance:

    • Exporters should consider insuring goods against damage or loss during transit.

  5. Currency Exchange:

    • While Ireland uses the euro (€), exporters trading with non-eurozone countries may face currency exchange costs.

5. Standard Procedures for Exporting from Ireland

To engage in export activities in Ireland, businesses must follow these steps:

  1. Register as an Exporter:

    • Businesses must register with the Irish Revenue Commissioners and obtain an Economic Operators Registration and Identification (EORI) number.

  2. Classify Goods:

    • Use the EU’s Combined Nomenclature (CN) codes to classify goods for customs purposes.

  3. Prepare Documentation:

    • Key documents include commercial invoices, packing lists, certificates of origin, and any required export licenses.

  4. Submit Customs Declarations:

    • For exports outside the EU, submit declarations through the Automated Export System (AES).

  5. Arrange Transportation and Logistics:

    • Work with freight forwarders or logistics providers to handle shipping and delivery.

  6. Comply with Destination Country Requirements:

    • Ensure that goods meet the import regulations of the destination country, including labeling, packaging, and certification requirements.

6. Country-Specific Considerations

Ireland has several unique factors that impact trade and exports:

  1. Proximity to the UK:

    • The UK remains a key trading partner, but Brexit has introduced new complexities. Businesses must navigate customs checks, rules of origin, and VAT changes for trade with Great Britain.

  2. Northern Ireland Protocol:

    • Trade between Ireland and Northern Ireland is seamless due to the protocol, but businesses must be aware of the specific rules governing this arrangement.

  3. Global Business Hub:

    • Ireland’s favorable corporate tax rate (12.5%) and strong foreign direct investment (FDI) environment make it an attractive base for multinational companies engaged in global trade.

  4. Sustainability Focus:

    • Ireland is committed to sustainable trade practices. Exporters should be aware of environmental regulations and consumer demand for eco-friendly products.

  5. Language and Cultural Considerations:

    • English is the primary language of business, which facilitates trade with global partners. However, Irish (Gaeilge) is also an official language and may be used in certain contexts.

7. Resources and Support for Exporters

Ireland offers a range of resources to support businesses engaged in trade and exports:

  • Enterprise Ireland:

  • Irish Revenue Commissioners:

    • Offers guidance on customs, VAT, and EORI registration.
    • Website: www.revenue.ie

  • Bord Bia (Irish Food Board):

    • Supports agri-food exporters with market insights and promotional activities.
    • Website: www.bordbia.ie

  • Local Chambers of Commerce:

    • Provide networking opportunities and export advice.

  • EU Trade Helpdesk:

Conclusion

Ireland’s trade and export landscape is dynamic and highly integrated into global markets. By understanding the regulatory framework, costs, and procedures, businesses can successfully navigate the complexities of international trade. Leveraging Ireland’s strategic location, skilled workforce, and supportive trade environment, exporters can access opportunities in both EU and global markets. For tailored advice, consider consulting with Enterprise Ireland or trade specialists.