The first wave of bills for the government's post-Brexit border charges has begun to arrive, and industry insiders warn that some businesses are in for a rude awakening.
Food and drink businesses importing goods into the UK from the EU via Dover are now receiving the first invoices for the common user charge (CUC). This fee, imposed by the government in April, aims to recoup the costs of physical checks at the new border control post in Sevington, Kent.
All consignments subject to SPS checks traveling via the Eurotunnel or Dover, including meat, dairy, and plant products, must pay the CUC. This unexpected expense is adding further pressure to businesses already grappling with the complexities of the post-Brexit trading landscape.
The Fresh Produce Consortium (FPC) has been particularly vocal about the impact, with Chief Executive Nigel Jenney expressing deep concern. In an interview with the Grocer, Jenney stated: "These charges are simply unsustainable for many businesses," highlighting that companies are already operating on tight margins due to the broader economic pressures of Brexit.
The fresh produce sector is facing an estimated annual financial burden of around £200 Million despite being subjected to “low levels of inspections,” explained Jenney.
“In other words, official fees are levied on 97% of consignments which won’t be inspected. Currently, even modest levels of inspection aren’t taking place, so industry continues to pay for a service which isn’t actually happening,” Jenney observed.
He further criticised the system, stating, “Many would suggest Sevington and CUC is simply an official government monopoly which is unaffordable and out of control.
"It’s the least efficient and most expensive border inspection process in the world.”
The FPC believes the new government has an opportunity to “adopt a new approach and minimise costs to industry and hard-pressed consumers whilst maximising biosecurity”.
Overall, the new charges are being seen as another blow to the food industry, compounding the difficulties businesses face in the post-Brexit landscape.
The FPC continues to call for government intervention to mitigate these impacts and ensure that the UK's food supply remains stable.
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