London, UK: The government will reimburse Northern Irish businesses if they are subject to tariffs due to a collapse in Brexit talks, says cabinet minister Michael Gove.

We want to make sure that in the event of there not being a free trade agreement of whatever kind with the EU that we are in a position to indemnify and reimburse companies for tariffs, he told the Northern Ireland affairs select committee.

A special arrangement for Northern Ireland kicks in if there is no Brexit deal, under which EU tariffs are payable on goods circulating within Northern Ireland but with rebates on all goods that do not cross into the Republic of Ireland.

Legislation is needed for the tariff arrangements but this would be put in place before January, Gove told the committee. Business leaders described the move as significant but expressed concern about the lack of detail.

Gove was unable to say whether entry summary declaration forms would be needed for mainland British businesses selling into Northern Ireland. These are currently needed for goods brought into the UK from outside the EU.

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Northern Irish firms to be reimbursed for tariffs if Brexit talks fail - Tina Massey