UK food importers are sounding the alarm over post-Brexit checks, warning of potential cost increases of up to 60%, which could lead to higher prices for consumers and pose existential threats to some businesses.
After five previous delays, the UK government implemented physical checks on animal and plant products coming from the EU on Tuesday, along with imposing a Common User Charge (CUC) of up to £145 per shipment. However, importers and carriers have expressed dissatisfaction with the lack of clarity regarding the definition of “shipment,” with many assuming the maximum limit applied to each truck. In fact, vehicles transporting different products from different locations may face much higher fees.
Transport companies carrying meat and dairy products from Eastern European countries have expressed concerns, noting that the new fees could reach hundreds of pounds per truck, significantly increasing operating costs.
One of the UK's largest importers of Eastern European goods, responsible for sending more than 70 lorries a week and supplying 1,000 businesses, has stressed the need for clarity from the Government on the definition of a shipment. The company confirmed that some trucks will now incur additional costs of £1,500, which represents a 60% increase over usual transport expenses.
Adriana Zalewska of Kin Global Distribution, a small importer, expressed concerns about the impact of the duty increase on food prices in the UK, and anticipated challenges facing small businesses along the supply chain.
Piotr Leczycki, managing director of Polish company Eljot Transport, expects significant additional costs of between £300 and £2,000 per truck, which could add millions to operational expenses annually.
The introduction of the CUC, which is intended to cover the costs of checks and operations at a government-run border control facility in Kent, is expected to affect lorries carrying mixed loads of products from different suppliers. These vehicles will be required to pay multiples of £145 for each type of product, significantly increasing the financial burden on importers.
While the government stresses the importance of border checks in protecting the UK's food supply chain and natural environment, industry experts and businesses are urging lower import costs to prevent lasting damage to food supply chains. Calls continue for clarity and support from the government as businesses navigate challenges posed by Brexit-related regulations and fees.