The validation and removal exercise scope relates to those XI EORIs that were issued between 1st January and 13th September 2021 and should lead to consistency of XI EORI allocations before and after 14th September 2021. HMRC issued circa 46k during and after implementing the Northern Ireland Protocol (NIP) on 1st January 2021. HMRC will write to businesses from Thursday, 13th April, to Wednesday, 26th April 2023. Business engagement is expected to continue into May 2023 as HMRC processes their responses. 

Background 

Following the implementation of the Northern Ireland Protocol, HMRC automatically authorised XI EORI numbers to UK businesses trading with Northern Ireland. At the time, to ease disruption, further background checks were not carried out to establish the reasons companies required an XI EORI. Therefore, many companies were issued with an XI EORI, which may have needed to be revised. 

HMRC amended the application process on 14th September 2021, which now requires evidence that a company is established in Northern Ireland or whether there are other limited reasons they may require an XI EORI, e.g., ENS Safety Y Security. 

HMRC's definition of being established is explained here – A permanent business establishment is defined as "a fixed place of business, where both the necessary human and technical resources are permanently present and through which a person's customs-related operations are wholly or partly carried out". 

What will HMRC do? 

They are now reviewing businesses with an XI EORI number and a GB address to identify whether they have a permanent business establishment in Northern Ireland. If companies do not have an establishment in Northern Ireland, they need to know if they still need their XI EORI number for specific activities. 

Suppose a business does not have a permanent business establishment in Northern Ireland. In that case, they may still be eligible for an XI EORI but will be limited in how they can use it. 

If a business does not have a permanent business establishment in Northern Ireland and does not have a need for their XI EORI, they do not need to contact HMRC. HMRC will remove their XI EORI after six weeks from the date of the letter they send them. 

What are they asking businesses to do? 

HMRC is asking companies with a permanent business establishment in Northern Ireland to provide evidence that they can upload via an online form on the government website (gov.uk). 

Where a company does not have a permanent business establishment in Northern Ireland, they are asking them to provide a reason why they need to keep their XI EORI. More information can be found at www.gov.uk/eori. 

If they do not hear from businesses within the timeframe, HMRC will assume they do not have a PBE in Northern Ireland and no longer require their XI EORI number. 

GB businesses that do not have a permanent business establishment in NI and intend to continue to make declarations in an EU country will need to employ an indirect representative to make declarations on their behalf. For movements into Northern Ireland, they can continue to use the TSS, which is free of charge. 

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Focus On: Northern Ireland - The Movement of Goods