UK Business Groups Hit Out at New Food Import Charges

A customer shops for meat at a Sainsbury's supermarket in Walthamstow, east London, on Feb. 13, 2022. Tolga Akmen /AFP via Getty Images

UK business groups have expressed their disapproval of the newly introduced charges on shipments of food from the EU, arguing it will increase business costs and food prices.

The common user charge rates were announced by the Department for Environment, Food & Rural Affairs (DEFRA) on Wednesday. They apply to imports of animal products, plants and plant products entering or transiting through the UK through the Port of Dover and Eurotunnel from all countries.

From April 30, businesses will be footing the charge of up to £145 to each commodity line in a common health entry document (CHED). The charge for one CHED will be limited to five commodity lines and will not apply to low-risk plants and plant products.

The rates introduced by DEFRA are “certain to negatively affect food prices,” said the chief executive of the Cold Chain Federation, Phil Pluck.

“The confirmation that common user charges will apply from April 30 means that UK importers of medium and high-risk goods will have to pass this cost onto either the EU importer, the smaller UK retailer, or the UK consumer,” he said.

There is a risk that EU exporters will get discouraged from exporting food and plant products to Britain in the future in the light of the additional cost of health certificates, Mr. Pluck suggested.

“Ultimately, this will increase business costs and food prices and potentially lower choices for the shopper,” he added.

The head of trade policy at the British Chambers of Commerce (BCC), William Bain called the decision to impose charges “disappointing” and “a hammer blow for small and medium-sized importers.”

The effect will be felt by retailers, cafes and restaurants, he warned.

“Importing a small consignment of goods with only five different meat, poultry, egg, milk or some fish products in the medium risk category will now face a bill of £145 per package under these proposals,” Mr. Bain said.

The BCC has called on the government to reconsider the import charge plans or risk higher prices for UK consumers and increasing food price inflation.

‘Crippling Blow’

The charges on food shipments are part of changes to import controls under the Border Target Operating Model, a post-Brexit controls system.

The UK has been phasing in border controls for goods imported from the EU over 2021 and 2002, following Britain’s departure from the bloc. All imported goods from the EU now have to be declared at customs.

None of the additional checks and controls, outside of the existing Windsor Framework, will apply to imports into Northern Ireland from the EU, providing Northern Ireland traders with full access to the EU market.

Reacting to the announcement, the Fresh Produce Consortium (FPC), which represents 700 businesses in the UK, said the charges “were not a not a manageable cost” for its members.

“These exorbitant charges imposed by our own government represent a direct tax on businesses. It’s a move that will undoubtedly shatter supply chain confidence and is already encouraging EU exporters to reconsider their commitment to supply the UK market,” said FPC chief executive Nigel Jenney.

He warned of a “crippling blow” to the fresh produce supply chain, with added costs of £200 million.

Speaking about the impact on small and medium-sized businesses, he discussed the £145 cap on medium and high-risk CHEDs.

“This might not seem like much, but with only a small number of consignments actually inspected, the cost per inspection balloons to a ludicrous £5k,” Mr. Jenney said.

For the horticulture sector that typically imports multiple commodity lines per consignment, businesses will end up paying the maximum charges, said the chairman of the Horticultural Trades Association, James Barnes.

“This will be a huge new cost burden for many, hitting SMEs hard, particularly those using groupage,” he added.

DEFRA will review the common user charge rates annually and is still developing the rates for live animal imports. The department will introduce new checks at the border on live animals from the EU later in the year.