Import charge is a body blow for our nation of shopkeepers
THERE has been growing unease from importers and supply chains over the past week at the government’s stance on plant and animal product imports from the EU.
It follows an announcement from the Department for Environment, Food and Rural Affairs (DEFRA) that a “common user charge” will come into effect from this month.
It’s hardly surprising that businesses and trade bodies have been lining up to vent their concerns at this development, which will almost certainly drive up food prices and deter producers in the EU from exporting to the UK.
This development is also deeply concerning for retailers, cafes and restaurants, many of whom are already having to contend with rising costs and shrinking margins.
DEFRA announced that, from
April 30, consignments of EU plant and animal products will face charges of up to £145 when imported into Britain.
The charges will apply to all consignments entering the UK via government-run border controls at Dover and the Eurotunnel, which handle the majority of UK food
imports. Under the new proposals, those importing a small consignment of goods with only five different meat, poultry, egg, milk or some fish products in the ‘mediumrisk’ category will now face a bill of £145 per package.
These costly import fees will hit small and medium-sized importers particularly hard.
DEFRA argues that these charges are at the “bottom end” of the range. Yet, it remains an expensive hammer blow for smaller companies, many of
whom will reach the maximum £145 per consignment charge, on top of port authority charges on loads selected for inspection.
The biggest concern is for those who rely on groupage imports, such as delis, independent retailers and fresh produce importers.
They will face some of the highest fees due to the nature of their mixed loads.
For some, it may even mean the end of trade with the European Union altogether.
The over-arching outcome of all of this, of course, is more misery for the consumer.
Representatives of various trade bodies fear the charges will discourage EU producers from exporting plants and animal products to the UK, as in some cases they may be expected to absorb part or all of the costs.
The result? Less choice for customers and more food inflation.
The British public is going to be severely worse off when it comes to the product range in the deli counters.
As the boss of a London-based delicatessen put it during a media interview this week, this is “an odd way of thinking from a government of a nation of shopkeepers”.
And let’s not forget the practicalities of announcing the charges with less than a month’s notice.
Affected businesses will have little time to revise their commercial arrangements with EU customers.
There has also been little in the way of clarity on how the import charges will be applied, nor reassurance that businesses will receive a high level of service at control posts.
As the clock ticks to April 30, when the common user charge will come into force, we as a chamber would urge the government to reconsider their import charge plans.
Failing to do so risks higher prices for us all, at a time when we should be bearing down on business costs and food price inflation.
This is concerning for retailers, cafes and restaurants, who are already contending with rising costs and shrinking margins