New import charges set to cripple fresh produce & flower industry

Added on 04 April 2024

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New import charges set to cripple fresh produce & flower industry

LONDON - In a move branded by Nigel Jenney, Chief Executive of the Fresh Produce Consortium (FPC), as a “thinly veiled tax on the industry,” the UK government has implemented new Common User Charges (CUCs) that threaten to cripple small and medium-sized enterprises (SMEs) in the fresh produce and plant sectors.

The charges, introduced as part of post-Brexit border controls, are set to add millions in extra costs to the industry, while unnecessarily driving up prices for families.

Industry experts predict this will add £200 million in costs across the fresh produce supply chain, a crippling blow to a sector already grappling with unprecedented challenges.

“This is simply not a manageable cost for our members," declared Jenney with fierce urgency.

"These exorbitant charges imposed by our own government represent a direct tax on businesses. It’s a move that will undoubtedly shatter supply chain confidence and is already encouraging EU exporters to reconsider their commitment to supply the UK market”.

EU represent 35 % of our total fruit & veg supply and around 70% of cut flowers.

The government has attempted to downplay the impact, asserting that consumers will see a negligible increase in prices. However, importers and retailers warn of cascading delays, disruptions, and spiralling costs that will inevitably be passed on to hard pressed shoppers.

“The CUC system is particularly devastating for SMEs,” explains Jenney. “While fees are now capped, they remain substantial – £145 for every consignment arriving in the UK via the Port of Dover or Eurotunnel. This might not seem like much, but with only a small number of consignments actually inspected, the cost per inspection balloons to a ludicrous £5k.”

(100 consignments x 145 = £14,500 @ 3% physical inspection level this equates to £4,833 per physical inspection). This also excludes several additional fees levied by the UK Government. In addition, this compares to a commercial control point fee of usually less than £100 per consignment chargeable only when a physical inspection is required.

“We have for years promoted alternative industry managed solutions which offer far more efficient service for the benefit of both industry and consumers alike,” continued Jenney.

“However, the adoption and development of assured operator status allowing responsible companies to manage their own inspections has still to commence.”

“Ultimately, it's essential the UK remains a destination of choice for international exporters to compliment our fantastic homegrown fresh produce and to offer the choice and availability we all demand. The Government’s poorly considered border solution puts this in severe jeopardy or, at best, drives avoidable food inflation. “

Specific CUC Rates:
The following rates will be charged for each commodity line in a CHED (Common Health Entry Document):

Commodity type | Imports | Transits
Low-risk products of animal origin (POAO) | £10 | £10
Medium-risk POAO | £29 | £10
High-risk POAO | £29 | £10
Low-risk plants and plant products | no common user charge | no common user charge
Medium-risk plants and plant products | £29 | no common user charge
High-risk plants and plant products | £29 | no common user charge

View the government announcement document here.

"These insane charges are an attack on those working tirelessly to feed and flower our great nation. The government seems hell-bent on punishing businesses that are the backbone of our economy and our health," added Jenney.

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