Trade between GB and Northern Ireland is still struggling to overcome regulatory challenges in the Windsor Framework and the situation threatens to deteriorate further when new rules commence this month, warned Logistics UK.

Giving evidence to the Northern Ireland Affairs Select Committee on the operation of the Windsor Framework, the business group said there remained a lack of awareness over the practicalities of the legal framework.

Its head of trade and devolved policy, Nichola Mallon, said there was also a reluctance among some GB businesses to move goods into NI due to the additional administrative requirements and cost impact.

She told the committee: “The consensus within our membership is that the Windsor Framework was to some extent oversold and created a misperception that all of the challenges under the Northern Ireland Protocol have been removed.”

From 31 March, changes will be introduced that affect the movement of parcels and Logistics UK said the government needed to highlight how this will affect companies.

“There are significant new processes that will be required if you’re moving parcels, particularly business-to-business parcels, and the HMRC has improved their communications of late, but there is a need for a much greater awareness campaign in the last remaining number of weeks to raise awareness and help with preparedness,” Mallon said.

“With the rise in e-commerce, almost every household and business in NI relies, one way or another, on parcels. It is essential that businesses are supported to adapt to these significant changes to ensure the smooth flow of trade.”

She added: “Groupage operators and the pallet networks are key to the GB to NI supply chain and these businesses are facing particular cost and administrative pressures under the Windsor Framework.

“Logistics UK will continue to make the case for a Trusted Haulier Scheme to support this sector upon which so many sole traders and SMEs rely.”