British businesses importing food and agricultural products face a double blow: new border checks and associated fees starting 30 April 2024. The Department for Environment, Food and Rural Affairs (Defra) has finally revealed the cost structure for these “common user charges,” raising concerns among industry leaders and consumers about potential food price inflation.
Small imports of items like fish, salami, sausage, cheese, and yogurt will incur fees ranging from £29 to £145 per “commodity line” (type of good), as disclosed by Defra. They are part of the government’s efforts to fund border inspections and safeguard biosecurity. However, the Cold Chain Federation (CCF) warns that these costs will likely be passed down to consumers, impacting household budgets which are already squeezed.
Phil Pluck, CCF Chief Executive, told the BBC: “The last-minute announcement regarding these fees gives businesses little time to adjust. Ultimately, consumers will bear the brunt through higher prices at retailers and restaurants.”
The Horticultural Trades Association (HTA) echoed these concerns. Their Chairman, James Barnes, highlighted that horticultural imports often contain multiple product types, meaning businesses in their sector could face the maximum charge of £145 despite smaller quantities.
“This policy feels poorly planned,” Barnes told the BBC. “The government’s repeated delays in implementing these changes only added to the disruption for our industry.”
Impact on businesses and consumers
On their website, the British Chambers of Commerce (BCC) also criticised the new charges. William Bain, Head of Trade Policy at the BCC, called the decision “extremely disappointing.” He highlighted the burden these fees place on small and medium-sized businesses, especially considering the current economic climate with food inflation still running at 7%. He urges the government to reconsider the charges
“A flat rate fee for any animal or plant product import is a significant blow,” says Bain. “This will not only impact retailers but also cafés and restaurants that rely on these imports.”
These charges are in addition to duty and tax that is now levied on food entering the country since Brexit. Gone are the days when a local deli could call a Dutch cheesemaker and have them send a truckle through the post. It is likely many small food importers will now find their businesses unviable.
Frictionless trade to bureaucracy
The government’s decision to introduce these charges comes amid the post-Brexit adjustments in trade relations between the UK and the EU.
Prior to Brexit, trade between the EU and the UK enjoyed a frictionless flow, just as goods do, for example, passing between England and Scotland. However, the UK’s departure from the trading bloc and its subsequent approach to EU relations resulted in new trade barriers and additional costs for businesses involved in food imports.
The new border checks will be phased in gradually over the next 12 months, with physical checks on some products starting on 30 April. However, the associated costs for these checks remained undisclosed until now.
The details of the common user charge
The common user charge applies to animal products, plants, and plant products entering or transiting through Great Britain via the Port of Dover and the Eurotunnel. It will be levied on animal and plant products requiring sanitary and phytosanitary (SPS) checks at government-run border control posts.
Businesses will be responsible for the charge even if their consignment isn’t selected for a physical inspection. The fee is calculated per commodity line within a consignment, with a maximum charge of £145 per import notification document. This means that for medium and high-risk imports, the total charge will be capped at £145, even if the consignment contains more than five different product types.
Exemptions and the future
There are some exemptions to the common user charge. Low-risk plants and plant products, goods for personal use on passenger ferries, and certain types of transiting goods are not subject to the fee.
Defra has stated that they will review and update the charge rates annually. While details on live animal import fees are still pending, they are expected to be published before implementation. Steve Barclay, Defra Secretary and MP for North East Cambridgeshire has yet to personally comment on the new charges.
The road ahead: balancing security and costs
The government has emphasised the importance of these charges in maintaining biosecurity and preventing the spread of plant and animal diseases. But Liz Webster, a Cotswold farmer and founder of the campaign group Save British Farming, is sceptical.
“These delayed checks, only just announced, ought to give some comfort that there is an upshot of some sort. Sadly, there is none whatsoever. Because not every consignment will be selected for a physical inspection, these checks won’t diminish the flood of illegal goods arriving, nor substandard food imports. All that will be achieved is more inflation, less fresh food and less choice on supermarket shelves.
“It’s way past the time to recognise Brexit is a deeply damaging reality which has to be reversed.”
The introduction of the common user charge highlights the complexities of post-Brexit trade. While ensuring biosecurity and implementing proper border checks are necessary, the associated costs raise concerns for businesses and consumers alike. Finding a balance between robust border controls and minimising the impact on food prices will be a crucial challenge for the government in the months to come.
