Despite pleas from the food and beverage industry, the UK government has confirmed that it will introduce import controls on EU goods at the border after the Brexit transition period ends on December 31, 2020. Imports and exports will be treated equally, with traders in the EU and Britain being required to submit customs declarations. They will also be liable to goods’ checks. Furthermore, policy easements put in place for a potential no-deal situation will not be reintroduced as businesses have time to prepare.
“The UK will be outside the single market and outside the customs union, so we will have to be ready for the customs procedures and regulatory checks that will inevitably follow. As a result of that we will be in a stronger position, not just to make sure that our economy succeeds outside the EU but that we are in a position to take advantage of new trading relationships with the rest of the world,” says the Chancellor of the Duchy of Lancaster, Michael Gove.
The government says that these controls will keep Britain’s borders safe and secure; ensure Britain treats all partners equally as it begins to negotiate its own trading arrangements with countries around the world; and aid collecting the right customs, VAT and excise duties. Additionally, the EU has said that, in turn, it will enforce checks on British goods entering the Eurozone.
Disappointments for industry
According to Ian Wright, FDF’s Chief Executive, the EU market is the largest source of UK food imports and the largest destination for UK food exports. “This fact is driven by geography, shelf-life and customer tastes. Introducing friction into those supply chains will have implications for our largest manufacturing sector and for all food and drink consumers.”
“Government must lead the way and proceed at pace with building vital infrastructure at the ports, and ensure regulators such as the Food Standards Agency (FSA) are appropriately resourced for these new responsibilities. Adding any additional friction into the UK-EU trading relationship will inevitably have a cost for businesses, consumers and shoppers. We are discussing with the government how we might minimize that friction wherever possible, while maintaining high standards for UK food and drink,” a FDF spokesperson tells.
Meanwhile, on Brexit Day at the end of last month, the UK’s National Farmers’ Union (NFU) mobilized a coalition of 60 farming, environmental, animal welfare and public health organizations to address Prime Minister Boris Johnson in an open letter on trade and standards. The Union argued for a progressive and ambitious trade policy, noting that there must be a trade and standards commission in place to enable people to engage with the UK’s trade policy.
“We need a UK-EU deal that puts consumers first: one that continues zero-tariff trade and minimizes any new barriers to trade. Without these, it will be the public who will face higher costs and reduced choice on the shelves,” Helen Dickinson, Chief Executive of the British Retail Consortium, had said at the time.
Preparing for border controls
The government details that businesses can prepare for border controls by making sure they have an Economic Operator Registration and Identification (EORI) number. They should also look into how they wish to make declarations, such as by using a customs agent. The government says it will ensure facilitations currently available to the rest of the world traders will also be open to those trading between Britain and the EU.
Notably, this announcement is only aimed at traders between Britain and the EU, and does not address the flow of trade between Northern Ireland and Ireland, or between Northern Ireland and Britain.
The extension for business to apply for customs support funding has also been extended to January 31, 2021. To date, applications have been made for around £18.5 million (US$23.9 million) out of a possible £26 million (US$33.5 million) – meaning there is at least £7.5 million (US$9.7 million) left to claim from Her Majesty’s Revenue and Customs (HMRC).
