Early fees are likely to become a substantial monthly financial burden when post-Brexit border checks begin at the end of this month.
New Brexit Border Charges
Several key figures in the industry have warned of impending economic pressure on small and medium-sized UK importers of food and plants from the EU.
Import tariffs on EU goods arriving through Dover and Eurotunnel, which cover the majority of the UK's food imports, have been limited to £145 per product category.
The new regulations are to be implemented in three stages:
- In January, export health certificates were introduced for EU food and plant products.
- Border inspections are due to start on 30 April.
- Further "safety and security" declarations on all goods will be compulsory from October.
Trade associations have expressed concern that these charges could quickly accumulate. As a result, small businesses will face spiralling cost levels.
“Every day closer to the introduction of the new charges, it is becoming clearer it will have an unfair effect upon small and medium-sized businesses. The loser in this will be British consumers, facing higher prices for everyday foods and reduced choice.” William Bain, the head of trade policy at the BCC.
The Impact on Small Businesses
Local small businesses such as corner shops, cafés and delis are likely to see their costs rise. Many of these businesses are expected to pay tens of thousands of pounds more each month.
The Cold Chain Federation predicts that the new border has the potential to add £1 billion a year to the food and plant supply chain. This includes customs and other associated costs.
The Federation also disputes the government's estimate that food price inflation will be only 0.2%, predicting that price rises will be an inevitable outcome.
Fulop Illes, managing director of HunPro (a specialist importer of Hungarian food products), has voiced his concerns about the new taxes. Employing 20 people and supplying over 120 shops in the UK, his company would face border inspection costs of £8,880 per month.
Illes' business has already absorbed higher costs for food and transport. Consequently, it plans to reduce the number of product lines it offers by up to 30% and increase prices by up to 15%.
Birmingham Wholesale Market manager Eddie Price has also expressed deep concern about the impact of rising costs and border delays on perishable goods.
Opened in 2019, the market currently has 50 tenants selling a wide variety of products, including meat, fish, vegetables and flowers.
For its part, the British government has defended the new border controls, arguing that they are crucial for biosecurity and to ensure a level playing field for British businesses. These companies are subject to similar controls and taxes when exporting to the EU.
However, despite this, the government has faced considerable criticism from the industry for its handling of the changes. The "joint user charge" for Dover and Eurotunnel was announced just three weeks before it was due to be implemented.