The British Meat Processors Association (BMPA) has revealed that the impact of the UK's Border Target Operating Model (BTOM) is "far from trivial", stating that the financial burden on importers is "significantly higher" than originally claimed.
According to BMPA, Defra previously claimed that the new import requirements would cost a mere "£330 million per annum overall, across all EU imports" and through all ports of entry, including extra administrative costs. BMPA also said that in a letter to Stella Creasy MP, Baroness Neville-Rolfe estimated that "around half" of the £330 million would be on health certification, leaving just £165 million for port charges.
BMPA stated that despite this claim, the "real financial burden on importers - and ultimately consumers - is significantly higher".
The trade body said that Defra had "downplayed the costs", estimating a "minimal" effect on food price inflation and projecting an increase of less than 0.2% over three years. However, importers are now facing "substantial charges far beyond these estimates", said BMPA, as the Government's focuses on the Common User Charge (CUC) for medium-risk products like fresh meat, capped at £145 per truckload.
"Real-world costs paint a starkly different picture," said BMPA. The trade body found that the 'cap' is per consignment utilising one Common Health Entry Document (CHED), not per truckload, and said that it is "conceivable that a groupage load of say five consignments with five CHEDS, each with five product lines could be charged £725 for a single truckload".
Additional import costs
A "crucial and underpublicised" additional cost on top of the CUC comes from the Port Health Authority, found BMPA, stating that Ashford Port Health Authority's SPS documentary and inspection charge for Dover and Eurotunnel consignments starts at £66 for loads up to six tonnes, plus £11 for each additional tonne.
The fees are reportedly separate from the Common User Charge and are levied for facilities and checks at Sevington, which "most consignments never even reach". BMPA said that the charge was being levied to "do nothing other than an online, automated check of the CHED".
Peter Harwick, trade policy advisor at the BMPA, said: "The Government now admits that what was not clearly explained in its guidance is that this fee is applied to every medium and high-risk consignment of animal products, regardless of whether it undergoes physical checks. Only 2% of consignments are being physically checked, so the vast majority are being waved through without a second glance, but the charge is levied anyway.”
He said: “Let’s just look at imported products of animal origin alone. With at least 1,000 full truckloads of medium and high-risk products moving through Dover and Eurotunnel every day, the daily cost exceeds £240,000, translating to an annual burden of £88 million, which is in no way aligned with the actual level of checks. And traffic through Dover and Eurotunnel only represents a third of all animal products coming into the country.”
Hardwick warned: “Remember, these are just the new port charges we’re describing. Not included here are the multiple other hidden costs being baked into imported food prices including the huge cost of all the new red tape and paperwork that’s now required to be done by vets and administrators before a lorry even leaves the factory.
“The British Meat Processors Association is calling on the Government to urgently review these charges which, contrary to Defra's claims of ‘minimal’ impact, are poised to significantly increase consumer prices.”
