Food prices, empty shelves due to post-Brexit border fees

• Brexit border fees exempt personal imports
• Trade groups warn of rising food prices, empty shelves
• New border fees affect imports via Dover, Eurotunnel

The fees levied to finance the operation of the border control posts that will be implemented in the United Kingdom following Brexit will not apply to items imported for personal use.

Trade associations have warned of increased food costs and bare supermarket shelves because new post-Brexit border fees were introduced this month.

Beginning on April 30, imports of plant and animal products, including salmon and cheese, that pass through the Port of Dover and Eurotunnel and enter the United Kingdom will be subject to a maximum charge of £145.

The government stated that the fees are intended to cover the cost of administering new border control posts required after Brexit and will not apply to goods imported for personal use.

However, importers cautioned that the new fees might increase consumer costs.

The CEO of the Cold Chain Federation, Phil Pluck, stated, “This will ultimately lead to higher food and business costs, and consumers may have fewer options.

The chairman of the Horticultural Trades Association, James Barnes, remarked that the policy “at best resembles something written on an envelope” and that the fees would “certainly increase expenses” and the probability of supermarket shelves being vacant.

Director General of the Institute of Export & International Trade Marco Forgione stated that while larger companies could sustain the costs, “an additional £145 per consignment could wipe out the entire profit for small businesses.”

EU companies’ trade with the UK may decline

In addition to higher prices and a reduced selection of goods in UK stores and restaurants, he predicted that “EU companies that have been priced out of the market may now begin to observe a decline in their trade with the UK.

Although the government had previously set April 30 as the start date for the checks in April last year, the expenses linked to those checks were disclosed on Wednesday.

The implementation of physical inspections follows the January implementation of new health certification requirements as part of a new border model that, according to the government, will increase the cost of commerce with Europe by £300 million annually.

Labour stated that the checks could result in “chaos” and criticised the government for disclosing the associated costs less than one month before implementation.

The fee will differ between £10 and £29 per imported product type, depending on the risk associated with the product. The maximum allowable amount is £145 for blended shipments.

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According to a government spokesperson, this was “within and at the low end of the range on which we consulted with the industry.”

They further stated, “The fee is intended to recoup the expenses associated with maintaining our high-tech border facilities, which conduct vital biosecurity inspections to safeguard our food supply, farmers, and the environment against expensive disease outbreaks that may enter the United Kingdom via the narrow straits.”

Statutory mandate

Approximately 25% of the food imports into the United Kingdom traverse Dover and the Channel Tunnel.

The inspections of EU imports are mandated by law by the provisions of the Brexit trade agreement with the EU.

Before Brexit, frictionless commerce existed between the EU and the UK.

In addition to cost concerns, the implementation of the checks has been postponed five times to allow the businesses additional preparation time.

Food inflation has decreased over the past year, falling to 5% in February from its 45-year peak of 19.6% in March 2023.

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