April 30 2024 new common user charge introduced that "will increase business costs and food prices and potentially lower choices for the shopper," The government has revealed how much companies will have to pay to import foods from the EU due to Brexit. Small imports of products such as fish, salami, sausage, cheese and yogurt will be subject to fees of up to £145 from 30 April, according to the Department for Environment, Food and Rural Affairs (DEFRA).
The government says: "The charge is designed to recover the costs of operating our world-class border facilities where essential biosecurity checks will protect our food supply", CC That's the border that hasn't been protected since leaving the EU 4 years ago.
Tariff changes
So far (July 23), there have been only three tariff changes, raw sugar, maize (below) and palm oil
Government has removed tariffs on importing maize "from the United States which is a key ingredient in animal feed". The 25% tariff will be removed, but not likely to make a lot of difference as prices high, follwoing invasion of Ukraine. This was a retaliatory tariff imposed in 2018 after US put tariff on UK steel exports to US.
Palm Oil
Malaysia has negotiated with the UK to eliminate tariffs on Malaysian palm oil from the current 12 per cent to zero upon entry into the trade pact."
The government has delayed - for the 4th time in July 22 - the introduction of checks on imported goods from the EU. (now set for Oct 31'23). Vets are worried as it means we can import diseases more easily. But there should be a greater clamour that imports of food from EU will not face any tariffs, while export of the same to EU will. eg lamb prices are subject to around 40% tax going to EU while lamb coming in will not. How how much is the Exchequer loosing each week? More
A requirement for Sanitary and Phytosanitary (SPS) checks currently at destination to be moved to a Border Control Post (BCP)
A requirement for safety and security declarations on EU imports
A requirement for health certification for further SPS imports
A requirement for SPS goods to be presented at a BCP
Prohibitions and restrictions on the import of chilled meats from the EU'The new Target Operating Model will be based on a better assessment of risk and will harness the power of data and technology'
Transition End
Select Committee EFRA said government should have contingency in event of no deal by the year end. If not, tariffs will be put on exports to EU. "In its latest report, the committee says the government must have contingency plans to protect consumers and business from the immediate impact of tariffs, which range from about 87% on frozen beef to about 42% on cheddar cheese and 50% on grated cheese strating Jan 1 2022. It called on the government to consider establishing a special fund to support agriculture, which is facing some the highest tariffs in WTO’s rules in addition to the loss of EU subsidies. It also warned that customs checks could mean rotting food with perishable goods imported from the EU unable to reach their destination on time if there were delays. Part of the problems centre on the UK’s lack of self-sufficiency in food – it does not produce enough for its own population and relies on imports to satisfy consumer needs. The committee concluded that dairy, sheep and cereals would be hit hardest by tariffs on the export front."
Customs // Brexit bureaucracy to fuel the cost-of-living crisis
The cost for food companies to move goods between the UK and EU has risen steeply since Brexit. UK businesses have been subject to extra costs for certification, customs checks, extra staff to administer the new system and a slew of other ‘hidden’ charges which have rendered them less competitive.
Until now, Government has been waving through supplies into the UK from European suppliers without requiring the same paperwork and physical checks. But from July 2022, the same extra time and cost burdens to get through customs will be imposed on our EU suppliers. This means that EU imports will suddenly become more expensive, and European exporters will become less inclined to keep supplying to the UK.
With over a quarter of all food on British shelves sourced from the EU, these new costs of Brexit will put even more pressure on the cost of living for British consumers. Politico has more on this story from BMPA and other commentators.
Under 'the Deal' agreed in December 2020, tariffs will not be imposed by EU on UK imports, nor by UK on imports from the EU. Big Relief!!! But! While tariffs will not be imposed , 'non-tariff barriers' will be erected. These include all sorts of standards on food safety, health and environment, to be played out over the coming years.
"Flour produced in the UK from UK wheat can be imported into Ireland under the deal agreed by London with the EU, at zero tariff. However, the widespread use of imported wheat, notably from Canada, by UK millers means that under the rules of origin put in place by the agreement, much of Ireland’s flour imports are subject to tariffs. Consequently, Ireland’s flour supply suddenly has become much more expensive."
Brexit trade tariffs will be applied to agricultural imports from 1 January 2021 as confirmed by Government proposals in May 2020, potentially protecting domestic producers against cheaper import prices and lower food standards. Same tariff will apply on sheep, beef, and poultry for time being.
The UK Global Tariff will apply to most agricultural goods with other countries than EU and says it is going to scrap 'tariff variations' - involving 13,000 on foodstuffs like biscuits and pizza.
Zero tariffs will apply on certain cooking ingredients like baking powder, cocoa powder and yeast.
The UK is proposing to 'simply' some tariffs - like those on bread, confectionery and dairy spreads - called the Meursing Code. Instead of having to analyse the contents, often requiring a lab test, they will be taxed on 'value' in the future.
Linked to tariffs are 'quotas' - the amount of the foodstuff allowed before taxes kick in. eg quotas on NZ lamb.
There will be reductions on products Britain does not produce, such as olives and rice flour.
Let the sheep be beef
Speaking on the Andrew Marr show, after being challenged about high tariffs on sheep exports to EU, and ensuing high prices, Mr Eustice said: “If we are not importing as much beef from Ireland those mixed beef and sheep enterprises would be able to diversify into beef.”
NSA Scottish region chairman Jen Craig said the idea was ‘quite frankly a laughable response’."
NSA Chair said it " suggested Mr Eustice may not have believed what he said but could be creating a ‘we do not care’ attitude to bolster trade negotiations or it exposes an underlying willingness to see the sheep industry have to reduce its size, scale and diversity. "UK to scrap post-Brexit import certificates on wine They are to quash V1-1-forms – labelled by the Telegraph as a “bureaucratic exercise to verify the acidity, which is not done on other drinks such as beer or spirits”- could result in a bottle of wine becoming 13p cheaper, saving Britain’s wine drinkers a collective £130m per year.
National Farmers Union president MINETTE BATTERS: 'You can't level up by throwing our family farms under a bus' “It's clear negotiators from Australia & New Zealand are sticking firm to their hardline demands for the complete removal of tariffs on all their exports to the UK. This would make life unbearable for small British family farms”
Sugar
EU tariffs on sugar are complex. The basic tariff for importing direct consumption sugar into the EU is €419 per tonne. Raw sugar imported into the EU is to be further refined into white sugar attracts a tariff of €339 per tonne. Details
UK today: There will now be a quota of tax free raw sugar coming to the UK for the first 260 tons raw sugar.
What the ACP (old Commonwealth) countries want - tax non ACP countries more!
More on Sugar Quota
'Friction-less trade'
Government purchase 27 acres in Ashford Kent for lorry park or ' customs clearance centre'. This is in addition to training centre for to become border checkers. Michael Gove endorsed the 50,000 industry estimate in February and told MPs last month that the government was in discussions about creating a new customs agent academy while working with industry “to ensure that they have the capacity required” - Runing behind
Delays and fines - government outlines proposals for hauliers. There will be possible fines for those who do not comply with new government computer system for inputting details before crossing borders.