New import charges on animal and plant products add more financial barriers for small businesses

Following consultation with industry stakeholders on the introduction of an administrative charge to defray the cost incurred by government-run border control posts (BCPs), the Department for Environment, Food and Rural Affairs (DEFRA) has confirmed the introduction a Common User Charge (CUC), effective from 30 April 2024.  

The CUC will be imposed on all commercial imports of animal and plant products requiring sanitary and phytosanitary (SPS) checks through BCPs serving Port of Dover and Eurotunnel.

Olamide Osifeso, customs assistant at RSM UK, comments on the measures: 'The new charge is applicable to eligible imports irrespective of whether the consignment undergoes SPS checks, in addition to any existing charges imposed by the Port Health Authority or the Animal and Plant Health Agency. The cost is said to be to pay for UK biosecurity, but commentators believe this is a direct tax, which could cripple smaller businesses.

'For importers, the introduction of this charge brings a new financial dimension to consider, due to varying rates per commodity line, therefore strategic planning will be essential to navigate the evolving landscape. Although DEFRA emphasises that the charge is intended to defray governmental expenses associated with operating border control posts and safeguarding UK biosecurity, its rollout has sparked concern among businesses, particularly SMEs relying on the frequent transportation of perishable goods.'

She added: 'Despite attempts to ease the impact on businesses through maximum charge caps and groupage facilitation, it seems likely that these costs will trickle down to consumers, potentially exacerbating food inflation, which has only recently seen a decline. This policy marks a notable shift in importation regulations for Animal and Plant Products, reflecting DEFRA's commitment to robust food safety and biosecurity standards. However, achieving a delicate equilibrium between these safety measures and their implications for businesses, especially in a highly price-sensitive consumer goods sector, is of utmost importance.'