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SPS charges disappoint Logistics UK

[ April 3, 2024   //   ]

Logistics UK said on 3 April that it was disappointed by the intended charging structure for imported products of animal origin from the EU, such as fresh food, which is to be imposed as part of the government’s post-Brexit Border Target Operating Model. 

“Logistics businesses have been pressing government for detail on the level of charges and how and when they will be implemented on imported goods since the Brexit vote,” said head of trade, Nichola Mallon. “With only 27 days to go until these new checks and charges are to be applied, the cumulative cost facing businesses, and details of the compliance regime that will underpin it, are still not clear. 

“The charges to be imposed on imported goods – £29 for loads of medium and high-risk products of animal origin, such as foodstuffs, and £10 for low-risk products – at government-run Border Control Posts will have a significant impact on the cost of doing business with the EU. While a cap on the maximum charge for any one consignment recognises the administrative complexity facing groupage operators, these charges will hit them and SMEs hardest.

“These charges, as well as all the other inspection fees to be charged by the Animal and Plant Health Agency, port health authorities and local authorities and the charges that will be set at commercially-run Border Control Posts, will need to be paid somewhere in the supply chain. Logistics businesses already run on extremely narrow margins and cannot simply absorb these additional costs, so it seems likely that they will have to be passed on to customers in the form of higher prices. 

Mallon said that logistics businesses have been making their feelings known to government about the proposed border charges for some time, but their opinions have been overlooked. She said that 81% of businesses that responded to the government’s own consultation on its proposed charging structure at the border made it clear that these charges will have a fairly or extremely negative impact on their business. The announcement on 3 April “makes it very clear that the government isn’t listening to those who make sure our shelves are stocked and at the lowest possible prices.  As a sector we reiterate our call on the government to publish the modelling behind its assertion that the impact on food inflation will be 0.2% over three years: we believe the reality will be very different.”  

Earlier, Logistics UK complained that with a few weeks to go before the introduction of physical checks on EU imports, concerns still remained about the capabilities and capacity at border control posts to efficiently process perishable goods.

About 30% of all the food consumed in the UK comes from the EU, according to the British Retail Consortium, including almost half of the fresh vegetables and the majority of fresh fruit sold.

Mallon stated: “Fresh produce cannot be left languishing in vehicles for long periods of time – we need to be able to move it effectively to our customers with as little delay as possible. Add in the challenge of negotiating traffic jams caused by holiday traffic, and the introduction of the new EU Entry/Exit System at the Short Straits planned for October, and the risks to supply chains and potential for product shortages in supermarkets becomes very real.

“Logistics operators need the support of government to ensure that the UK’s borders do not become a barrier to the movement of goods.”

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