New import charges UK affect fresh produce sector

In a recent declaration, Nigel Jenney, the Chief Executive of the Fresh Produce Consortium (FPC), has raised significant concerns about the UK government's new Common User Charges (CUCs). Labelled as a ‘thinly veiled tax on the industry,’ these charges threaten to heavily impact small and medium-sized enterprises (SMEs) in the fresh produce and plant sectors. Introduced as part of post-Brexit border controls, these CUCs could add millions in extra costs to the industry and drive up prices for consumers.

The fresh produce supply chain is expected to face an additional £200 million in costs due to these charges, posing a severe challenge to a sector already facing numerous difficulties. "This is simply not a manageable cost for our members," Jenney stated emphatically. The government's imposition of these charges, he argues, directly taxes businesses, risking the stability of supply chains and prompting EU exporters to reconsider their commitment to the UK market.

Government stance vs industry reality

While the government maintains that consumers will only see a minimal increase in prices, importers and retailers warn of delays, disruptions, and spiralling costs. These are expected to be inevitably passed on to consumers. Particularly detrimental to SMEs, the CUC system, despite having capped fees, imposes a substantial burden. At the Port of Dover or Eurotunnel, for instance, each consignment is charged £145, a cost that significantly increases per inspection due to the small percentage of consignments actually inspected.

Looking for solutions

Jenney highlighted the FPC’s promotion of alternative industry-managed solutions, advocating for more efficient services benefiting both industry and consumers. However, the implementation of assured operator status, which would allow responsible companies to manage their own inspections, has yet to begin. The broader impact of these measures is concerning. The UK needs to remain an attractive market for international exporters to complement homegrown produce and maintain variety and availability. Jenney warns that the government's current approach jeopardizes this position and could lead to unnecessary food inflation.

Freshproduce.org.uk