Friday, 6 September 2019

Ceisteanna (103, 104, 154)

Lisa Chambers

Ceist:

103. Deputy Lisa Chambers asked the Minister for Finance the number of firms that have still not obtained an EORI number; and if he will make a statement on the matter. [35458/19]

Amharc ar fhreagra

Lisa Chambers

Ceist:

104. Deputy Lisa Chambers asked the Minister for Finance the number of firms without an EORI number that have been telephoned by the Revenue Commissioners to inform them of the need to obtain an EORI number; and if he will make a statement on the matter. [35459/19]

Amharc ar fhreagra

Pearse Doherty

Ceist:

154. Deputy Pearse Doherty asked the Minister for Finance the number of companies and economic operators that have applied and received an economic operators' registration and identification number by month and operator headquarters location by country from July 2016 to date; and if he will make a statement on the matter. [36621/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 103, 104 and 154 together.

I am advised by Revenue that it is actively engaging with businesses regarding Brexit through a multi-layered comprehensive trader engagement programme. The programme is designed to maximise trader understanding of the potential impact of Brexit and to support and encourage businesses to take the practical steps necessary to be prepared and ready for the implications of Brexit.

The current phase of Revenue’s Trader Engagement Programme started on 15 July 2019. The engagement programme encompasses all businesses (approximately 92,000) that traded with the UK in 2018. These businesses were identified by Revenue through analysis of VAT Information Exchanges system (VIES) returns. Each business that traded with the UK in 2018 has been written to and is being provided with suggestions regarding practical preparatory steps to take based on their trade pattern in 2018.

Additional follow up telephone contact is being made with businesses that have the largest volumes of trade with the UK (greater than €5,000) and those that trade most frequently with the UK (at least quarterly). This is a total of approx.  42,000 such businesses. At the end of August 2019, Revenue had contacted over 19,000 of these businesses to offer further advice and support.  Revenue expects to complete the  telephone contact to the remainder of the approx. 42,000 businesses by 20 Sept 2019.

Acquiring an Economic Operators Registration and Identification (EORI) number is the minimum requirement for businesses that wish to trade with, or through, the UK post-Brexit. There has been a significant increase in registrations for EORI numbers with almost 5,000 businesses registering in August 2019 alone. This represents a 600% increase when compared with July 2019 and brings the total number of registrations to date in 2019 to just over 13,200. Full details of EORI registrations, since 2016, broken down by year and month are provided in Table 1. The EORI registration data maintained by Revenue does not allow for the compilation of data relating to headquarter location.

88% of the import trade with the UK in 2018 was carried out by businesses who now have an EORI number. This indicates that businesses that are going to be significantly impacted by Brexit are responding to the call to be prepared. Details of 2018 imports from the UK are provided in Table 2.

It is a similar picture for exports, with 95% of the export trade being carried out by businesses who now have an EORI number. Details of 2018 exports to the UK are provided in Table 3.

 The data does indicate that there are still over 2,000 businesses who have trade with the UK in excess of €100,000, and in some cases more than €1 million, who do not have an EORI number. Such businesses, if they intend to continue to trade with the UK post Brexit, are putting their businesses at significant risk if they do not prepare now for Brexit. It is critically important that these businesses take the necessary preparatory action now.

 A significant proportion of smaller businesses, with trade value of less than €5,000 at both import (82%) and export (62%), do not have an EORI number. Getting an EORI number is an important first step if they intend to trade with the UK post-Brexit. They should also undertake the other preparatory steps advised by Revenue to mitigate the risks presented by Brexit.

I very much welcome Revenue’s intensified Brexit engagement with businesses and I strongly urge all businesses who receive a Brexit preparedness letter from Revenue to take note of its advice, thereby ensuring they are Brexit ready by 31 October.

TABLE 1 - EORI REGISTRATIONS BY YEAR & MONTH

YEAR

 YEAR TOTAL

JAN

FEB

MAR

APR

MAY

JUN

JULY

AUG

SEP

OCT

NOV

DEC

2016

2,902

260

213

260

271

312

234

182

204

274

250

332

110

2017

2,594

244

158

221

188

271

259

190

268

198

248

138

211

2018

2,976

243

183

187

215

268

201

210

211

219

301

436

302

2019*

13,207

384

2233

2077

1386

489

462

805

4960

411

 

 

 

TOTAL

53,252*

 

 

 

 

 

 

 

 

 

 

 

 

NOTES

*THE NUMBER OF EORI REGISTRATIONS FOR SEPTEMBER RUNS TO 02/09/2019

*53,252 is the total registrations including the years before 2016

TABLE 2 - Statistics related to VIES Imports from the UK in 2018

Threshold value

Number of cases

Overall value of imports

% value of imports where   cases have an EORI registration

% value of imports where   cases do not have an EORI registration

% with an EORI

% not registered for EORI

Overall

91,769

€20.5 bn

88%

12%

33.2%

66.8%

< €5,000

50,425

€52.3 m

22.1%

77.9%

17.4%

82.6%

€5 - €50k

25,248

€475 m

42.4%

57.6%

41%

59%

€50 -€100k

5,302

€375.3 m

54.7%

45.3%

54.1%

45.9%

€100k - €1m

8,467

€2.59 bn

79.4%

20.6%

75 %

25%

Cases above €1m

2,327

€17.01 bn

91.6%

8.4%

90.3%

9.7%

TABLE 3 - Statistics related to VIES Exports to the UK in 2018

Threshold value

Number of cases

Overall value of exports

% value of exports where   cases have an EORI registration

% value of exports where   cases do not have an EORI registration

% with an EORI

% not registered for EORI

Overall

11,787

€15.36 bn

95.4%

4.6%

61%

39%

< €5,000

6,084

€1.46 m

76.6%

23.4%

37.8%

62.2%

€5 - €50k

1,698

€36.88 m

79.3%

20.7%

78.9%

21.1%

€50 -€100k

689

€50 m

83.2%

16.8%

83%

17%

€100k - €1m

2,106

€760 m

89.6%

10.4%

87.8%

12.1%

Cases above €1m

1,210

€14.5 bn

95.7%

4.3%

94.2%

5.8%