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‘Hidden’ import charges throw food prices into disarray
Importers are already experiencing substantial charges far beyond the Department for Environment, Food and Rural Affairs’ (Defra’s) original estimates – £330m per annum overall across all EU imports with an increase of less than 0.2% to food price inflation over three years.
The Government's focus has been on the Common User Charge (CUC) for medium-risk products like fresh meat, capped at £145 per truckload. However, this cap is per consignment utilising one common health entry document (CHED), not per truckload.
A groupage load of five consignments with five CHEDs, each with five product lines, would likely attract a charge of £725 for a single truckload.
Additional costs
The Government’s estimates also fail to factor in additional costs from the Port Health Authorities. Ashford Port Health Authority’s SPS documentary and inspection charge for Dover and Eurotunnel consignments starts at £66 for loads up to 6 tonnes, plus £11 for each additional tonne, separate from the CUC.
These fees are levied for facilities and checks at Sevington, which most consignments never reach. The BMPA claimed this charge was being levied to do “nothing other than an online, automated check of the CHED”.
Peter Hardwick, trade policy advisor at the BMPA, highlighted the lack of guidance that has been provided by the Government and the costs that are in no way aligned with the levels of checks actually being carried out on the border.
“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,” Hardwick claimed.
Unaligned from the level of checks
“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 £88m, 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.”
Not included in these charges are the multiple other ‘hidden costs’ being baked into food prices, including the cost of new red tape and paperwork now required to be done by vets and administrators before a lorry leaves a 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,” Hardwick added.
Meanwhile, while food price inflation fell to 4% in March 2024, its lowest rate since November 2021, total production costs have increased by 9.2% on average, over the year to March 2024.
