Defra, the UK’s food and environment ministry, announced Common User Charges for plant and animal products entering the UK via Dover and Eurotunnel. These charges, set at a flat rate of £10 or £29 per commodity beginning on April 30th, will be capped at £145 to assist smaller businesses, according to a Defra spokesperson. However, industry representatives, particularly smaller businesses in the fresh produce and plant sectors, are not in agreement with these charges.
Nigel Jenney, CEO of the Fresh Produce Consortium, expressed concern that the charges could severely impact SMEs in these sectors, adding an estimated £200m in costs for fresh produce businesses already struggling with inflation. He criticized the charges as a direct tax on businesses and warned that they could damage supply chain confidence, leading to EU exporters reconsidering their commitment to the UK market.
The Federation of Small Businesses (FSB) also raised objections, highlighting the additional financial burden placed on small firms with very little time to prepare for the new costs. The British Chambers of Commerce echoed these concerns, calling on the government to reconsider the decision to impose import charges that could lead to higher prices for consumers.
Defra defended the charges, stating that they were a necessary measure to recover the costs of operating border facilities and ensuring biosecurity checks to protect the food supply, farmers, and environment. Despite industry backlash, Defra maintained that the charges were within the range discussed during consultations with industry.
The government’s decision to implement these charges based on operational costs divided by forecast import volume was met with criticism, with smaller businesses feeling they were unfairly subsidizing larger ones. The charges will not apply to low-risk plants and plant products or those transiting the UK. Different rates will apply for varying levels of risk associated with animal and plant products, with a cap set at £145 for certain commodities.
The industry continues to express dissatisfaction with the charges, viewing them as detrimental to businesses of all sizes and potentially leading to disruption in supply chains and increased costs for consumers. The government has been urged to reconsider the import charge plans to alleviate the financial strain on businesses already grappling with inflation and tight margins.
