Fresh Produce Consortium warns post-Brexit import charges could cripple SMEs
The UK government's new common user charges (CUC) for fresh food imports "threaten to cripple small and medium-sized enterprises (SMEs)" in the sector, according to the Fresh Produce Consortium (FPC).
The association, which has more than 600 members representing 70% of the UK's fresh produce supply chain, believes post-Brexit tariffs are set to add £200m in extra costs to the industry when they are implemented on 30 April.
The Department for Environment, Food & Rural Affairs (DEFRA) confirmed yesterday that the rates for medium- or high-risk imports of animal products will be capped at £145 for every consignment arriving in the UK via the Port of Dover or Eurotunnel. Charges for animal products designated as low risk will have an upper limit of £50.
FPC chief executive Nigel Jenney said: "The CUC system is particularly devastating for SMEs. While fees are now capped, they remain substantial. With only a small number of consignments actually inspected, the cost per inspection balloons to a ludicrous £5,000."
The trade body calculated this number by estimating that 100 consignments would usually warrant about a 3% physical inspection level, therefore the cost per inspection would be £4,833 plus several additional fees levied by the government.
DEFRA attempted to downplay the impact, asserting that consumers will see a negligible increase in prices. However, importers warned of cascading delays, disruptions and spiralling costs that will have to be passed on throughout the supply chain to diners and shoppers.
Jenney added: "This is simply not a manageable cost for our 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."
Furthermore, he called for alternative industry-managed solutions, including adopting and developing assured operator status, which would allow responsible companies to manage their own inspections.
