‘Ridiculous’ Brexit rule may force firm into Europe move
ABUSINESSMAN says a ‘ridiculous’ change in legislation in the wake of Brexit has cost 20 per cent of his revenue - and may force him to open a base in Europe.
Simon Spurrell, director of the Cheshire Cheese Company in Sutton, had exports to the EU as a fifth of his sales until January 1.
But at that point the rules changes and instead of free access, every consignment he sends, whatever size, needs a vet’s certificate confirming his cheese is an animal product - at a cost of £180 per shipment.
This has made sending his products to customers there completely uneconomical unless it is very large orders to wholesalers.
Last year the Cheshire Cheese Company invested £20,000 in creating French and German websites to appeal to shoppers in these countries.
Simon, 53, is now considering his options and says among them is moving his distribution centre from Macclesfield to France to circumvent the paperwork problems.
His view is this situation is the result of careless negotiating by the UK and mean-spiritedness on the part of the EU.
Simon said: “Previously sending stuff to the EU was the same as sending it to
Manchester, you just put it on a wagon and off it went.
“It worked really well last year and up to Christmas, then on January 1 we sent parcels off to various countries and they came back three or four days later saying they had not been delivered.
“We were mystified. Then we sent more and they came back with a message saying food with animal products was disallowed.
“It is ridiculous requirement and a total disaster.”
At that point Simon began investigating and spoke with government department Defra, eventually learning of the new rules.
He describes it as an ‘oversight’ in the Brexit trade deal which means products sent to individual consumers must meet the same regulations as those that are sent in bulk to wholesalers.
But these rules do not apply in reverse for EU countries seeking to export to the UK. He says this will affect thousands of other businesses across the UK, effectively denying access to a market of 26 countries with 446m customers.
On top of this there are additional surcharges and delays in shipping associated with Brexit.
Simon, of Buxton Road, Macclesfield, said: “We are being punished for leaving the EU, the message is being sent, ‘if you leave, this is how difficult it will be’.
“We had been intending investing in Macclesfield but investing in a distribution centre in France could be the only option and we would have to take it.
”This would provide tariff and paperwork free, lowcost distribution. But it will be of no benefit to Macclesfield.
“We have been removed from the EU but are now being told as a company we will have to rejoin.”
As a result a £1m investment in a Macclesfield warehouse facility, that already has planning permission, is on hold.
The Cheshire Cheese Company was founded just over a decade ago and until now had experienced growth and success.
“This is the biggest hurdle we have encountered, nothing else has ever knocked 20 per cent off our turnover overnight,” said Simon. “I feel like we have been let down and have been promised a good deal (leaving the EU) but that has yet to be proved, I can’t see a single benefit.
“Luckily we don’t rely on EU consumer market but other companies do and there will be thousands that are exceptionally worried.”
Simon has tried raising the issue with Defra and would like to see it threaten to enforce the same rules on EU food producers. He has also contacted Macclesfield MP David Rutley.
Defra - the government’s Department for Environmental Food and Rural Affairs - has been contacted for comment.
Mr Rutley said: ”I have spoken to Mr Spurrell about his concerns and had a call directly with a Defra minister about his case.
“I understand that Defra officials have contacted Mr Spurrell to follow up on the issues he has raised.”
A Government spokesman confirmed exports of live animals and products of animal origin to the EU require an export health certificate signed by an official vet or food competent certifying officer.
And that a minister had spoken to Mr Spurrell.
He added: “We continue to work closely with traders and there is extensive advice available to support businesses as they adjust to the new arrangements.
“It is vital that traders ensure that their exports have the correct paperwork to comply with new animal and animal product checks when they cross the EU border.”