Fears new import regulations (BTOM) introduced today at Dover and Eurotunnel could send food costs up as Sevington inland border facility doubts remain
05:00, 30 April 2024
updated: 14:20, 30 April 2024
Significant changes are introduced today to the way goods are imported into the UK - with fears it will lead to an increase in the price of food on our shelves.
High-risk goods entering through Dover and Eurotunnel will now be subject to physical checks for any biosecurity risks.
This will be primarily focused on animal by-product goods such as cheese, fish and meat as well as plant-based goods, including fresh flowers and seeds.
Rather than the checks taking place at Dover, those vehicles selected for closer inspection will be instructed to travel 20 miles up the M20 to the Inland Border Facility at Sevington, near Ashford.
However, each imported consignment will now carry an increased cost - introduced, the government says, to fund the new border facilities.
That cost - while relatively modest to the big importers such as the supermarkets - will eat into the already slender profit margins of many of the county’s smaller independent retailers. They will, almost inevitably, end up passing that extra cost on to the consumer.
Irene Scanlon, who runs Marlowe’s Florists in Palace Street, Canterbury, says most of her flowers are imported from abroad because there are now so few growers in the UK and they only supply the supermarkets.
Her flowers come from Holland and as far away as Ecuador and Columbia.
And she discovered the impact has already kicked in with her morning delivery today double the price.
“The quality of flowers will also be affected,” she said. “If they are left in their wraps, they sweat, they go moldy, so it's not a good new regulation, for us.
“They'll have to change how they ship them because Gerberas, for example, are shipped in boxes, not in water.
“When it comes to peak season and they come over from Colombia, even the roses come in boxes, not in water boxes, so if they're sitting in Customs, they won’t do well.”
Tudor Price, chief executive of the Kent Invicta Chamber of Commerce, which represents firms, big and small, across Kent and Medway, said: “This has been a long time coming. It's been in the offing for about four years and is all part of Brexit.
“Those importing products are now subject to paperwork and potentially checks.
“There are two problems here - one is there is a cost. Depending on the consignments and nature of the consignment, it can be up to £145. Which, if you're a large multinational, like a supermarket, you can carry that cost. But if you're a small independent - of which we have plenty in the county - it's going to hurt.”
Nichola Mallon, head of trade and devolved policy at Tunbridge Wells-based Logistics UK, which represents hauliers, says it will ultimately result in prices in shops going up.
She said: “There are a number of new costs that are being introduced and if you are a small UK importer or small haulage company and you don't have deep pockets to pay for these costs or deal with the added bureaucracy or complexity, we are concerned it will see a reduction in the number of smaller UK importers. That could lead to less product availability on our shelves. And ultimately people having to pay higher prices.”
It is thought the number of lorries being directed to Sevington will be small - at first - and any hold-ups on the road network around it are unlikely to occur initially. But there remain concerns about its ability to scale up and fears it could add delays with resulting knock-on impacts to local roads.
There are also plenty of practical questions as to how the process will actually work, with plenty of criticism aimed at the government for a lack of information over the new regulations for such a key trade channel.
William Bain, head of trade policy at the British Chambers of Commerce, said: “Firms face mounting confusion and uncertainty about exactly how and when the borders checks and costs will be fully implemented. It is crucial for business and trade that the government gives clarity on what is happening.
“While the Government did consult on the new charges being introduced it chose not to listen. The size of these costs shows scant regard to the interests of either businesses or consumers. “
Ian Worth, director of VAT and customs duty services for business consultancy firm Crowe, which has offices in Maidstone and Tunbridge Wells, says it is an “inevitable cost of Brexit”.
“Where there was previously freedom of movement, a hard border now brings checks and declarations in both directions which inevitably causes delays, increases costs for UK consumers and may even restrict our food choices,” he said.
“These additional costs mean the direction of travel for consumers is towards more home-produced food and drink, which is better for the environment but very seasonal. Whether this will stimulate a more UK-focused but less diverse economy remains to be seen, whatever the outcome, we can be in no doubt that it is a direct consequence of Brexit.”
A spokesperson for the Department for the Environment, Food and Rural Affairs (Defra) said: “Checks are commencing from today and, as we have always said, the medium and high-risk goods posing the greatest biosecurity risk are being prioritised as we build up to full check rates and high levels of compliance. Taking a pragmatic approach to introducing our new border checks minimises disruption, protects our biosecurity and benefits everyone – especially traders.
“There has been extensive engagement with businesses over the past year – with our approach welcomed by several trade associations and port authorities. We will continue to work with and support businesses throughout this process to maintain the smooth flow of imported goods.
“We are confident we have sufficient capacity and capability across all points of entry to handle the volume and type of expected checks. It is important to remember the cost of our border checks is negligible compared to the impact of a major disease outbreak on our economy and farmers.”
Here’s what we know so far…
What are the new regulations?
You will, of course, remember Brexit. Our separation from the European Union (EU) meant the previous import and export conditions into which we were tied disintegrated.
Eight years on from that divisive decision - and four years since the conclusion of the transitionary period - the latest phase in new import regulations is finally being ushered in today. Export rule changes have long been in place, which brought with them additional layers of bureaucracy and cost.
The dry-sounding (but with an amusing acronym) Border Target Operating Model (BTOM - no sniggering at the back) is a long-discussed, much-debated framework being introduced at the country’s key entry points.
For Kent, that is Dover and the Eurotunnel terminal in nearby Cheriton.
In essence, BTOM sets out the government’s new approach to safety and security and, importantly for this week, what is known as sanitary and phytosanitary (SPS) checks. These relate to goods which derive from living - or once living - things. It ranges from live animals to flowers, cheese to meats and plenty in between.
They all sound something of a mouthful, but their ultimate aim is to protect consumers from goods which may be unsafe entering the UK and reaching our shelves - guarding against the introduction of pests or disease.
The government says they are part of a “simplification” and “digitisation” of the UK’s new import regulations.
Why should I care about this?
Because there are a number of implications - for Kent in particular and for shoppers more widely. Worth bearing in mind here is that the UK imports around 30% of its food stuffs from the EU.
Firstly, a key concern comes at new charges per consignment to cover the costs of the new measures. These are around £29 for low-risk products, but can rise to as high as £145 for high-risk goods. For the big supermarkets, they’ll likely absorb the cost, but for everyone else, that extra charge will most likely be passed on to the consumer and reflected in higher prices on the shelves.
A consignment, by the way, refers to one part of a lorry’s likely load - a palette, for example, ordered by one firm. So one HGV could be carrying many consignments.
It will also erode profit margins which may mean some importers opt to pull the plug - lessening choice.
Which will come as no delight just as inflation started to come under control and the rampant price hikes in food costs started to steady finally.
The other issue is how much of an impact this will have on Kent’s roads. The current plan is for the physical checks to take place not in Dover (as you might expect) but at nominated inland border facilities - the key one for us being at Sevington, near Ashford - some 22 miles from Dover.
There are concerns that such will the potential numbers of lorries needing to travel to the facility after entering the UK, it could cause problems in and around the site - just off junction 10a of the M20 - and the motorway as a consequence.
And this is being introduced this week?
Well, not quite. The first phase of the BTOM roll-out was back at the end of January this year. That was when it introduced health certification on imports of what are described as ‘medium-risk’ animal products, plants, plant products and high-risk food and feed of non-animal origin from the EU.
It also saw the removal of pre-notification requirements for low-risk plant and plant products from the bloc. In short, it was the first test of the new regulations. But few, if any, required any proper checks.
Such is the way of modern import and export, port authorities know, roughly, what is on each lorry as details need to be registered in advance.
As of today - April 30 - comes the introduction of physical checks on those medium and high-risk imports. And that’s where there are currently plenty of concerns - primarily against a backdrop of claims the infrastructure isn’t quite ready yet.
Nichola Mallon, head of trade and devolved policy at Logistics UK, which represents hauliers, explains: “We don't believe the system is ready. The very fact the government is taking a graduated approach to the introduction of new checks, we think, demonstrates the system is not ready to cope with all of the checks the government has said are required.”
This is something Defra disputes.
The government explains: “The UK government has full confidence that the facilities, infrastructure and systems at the border, will be ready.
“The priority for physical checks from day one will be on the highest risk goods, and port health authorities will be conducting documentary checks on consignments of all risk levels and will contact traders where they have concerns. Checks will be scaled up to full check levels in a sensible and controlled way.”
So how many vehicles are going to be checked at Sevington?
Good question. The implementation of these new regulations have been mired in controversy, delay and confusion for some little while. In fact, even in the days leading up to it going live there remained a certain element of confusion.
At a recent cross-party Environment, Food and Rural Affairs Committee, it was suggested the number of lorries actually being checked, at first, would be set at 0%. A decision it described as “a delay in all but name”.
Tudor Price, of the Kent Invicta Chamber of Commerce, has said he believes it to be around 10%.
Both the chamber and Logistics UK says they do not expect any delays in the first few months while the number of checks are so low.
It is estimated around 16,000 HGVs enter the UK through Dover the Eurotunnel each day - but only a certain amount will carry goods subject to these checks.
Defra insists “100%” of high-risk animal products will be checked from today - that includes live animals, fish and ‘germinal products’ such as embryos and unhatched eggs. Medium risk - which covers a range of products, will be checked anywhere between “1 to 30%”.
The key concern among hauliers and importers is that if there are any delays - and all initial indicators point to such a low level of checks at first that it will be minimal - it will be on perishable goods which can least afford it.
As Logistics UK’s Nichola Mallon adds: “Many are carrying fresh produce - every single second is valuable. The longer it sits in the back of a lorry the shorter its shelf life, shorter its value and there’s an increased risk of wastage.
We're concerned not all of the facilities will be ready to efficiently process the vehicles that need to be checked.
“We are concerned these checks are taking place in Sevington which is 22 miles from Dover and we're concerned not all of the facilities will be ready to efficiently process any of the vehicles that need to be checked.”
So if a consignment arrives which needs checking how in practice will this be policed?
A key question is that if a lorry is told to report to Sevington, just what is there to stop it simply carrying on its way and by-passing the required physical check?
Says Tudor Price: “There does seem to be an obvious gap in security here in that if someone doesn't want to stop and be checked then they can just sail past Junction 10a. But with ANPR and other devices, the environmental health officer will know who's coming into the country so can anticipate them and if they don't stop as requested they can track them down.”
Defra says “checks will be in place” to prevent any consignments being off-loaded between the entry points in Kent and Sevington - but did not elaborate on just how. It did not, however, rule out some shipments being accompanied to the border facility to ensure smooth passage.
Goods that do not get checked, when instructed to do so - and drivers will be alerted to the need of a check prior to boarding their crossing to Kent - will not be passed for sale on our shelves.
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