Newsletters

The UK business community is reeling from the announcement of new post-Brexit inspection fees for food and plant imports from the EU, with trade groups slamming the move as a "hammer blow." Scheduled to begin April 30, these fees range from £10 for low-risk items to £145 for mixed consignments, Politico  reported on 4 April.  Critics argue that these charges, which have been delayed five times, will hike prices, reduce consumer choice, and disproportionately impact small and medium-sized enterprises (SMEs).

The "common user charge" aims to cover the costs of veterinary and health inspections for animal and plant products. With charges set at £29 for medium and high-risk items and a cap of £145 for mixed consignments, concerns grow that this flat fee structure will harshly affect smaller importers who often rely on mixed consignments to economize on shipping.

This development has been met with disappointment and worry among various business sectors, foreseeing an increase in operational costs and potentially driving European suppliers away from the U.K. market. The Food and Drink Federation and Logistics UK have voiced particular concern over the shift towards charging per item in mixed product loads and the potential for these costs to fuel inflation, as businesses may have to pass these additional expenses onto consumers.

The UK government defends the charges, calculating them based on the estimated costs of conducting the checks divided by the anticipated number of inspections. They argue that the overall impact on food and drink costs will be minimal, estimating less than a 0.2 percent increase over three years. However, the imposition of these fees underlines the ongoing challenges and tensions in post-Brexit trade relations and the broader impacts on the U.K.'s economy and international trading reputation.