Week commencing 20 May
20 May update
The National Audit Office (NAO) has today issued a report warning that delays may continue to hamper the UK's post-Brexit border ambitions.
According to the NAO's latest estimate, at least £4.7bn has been spent on implementing the Border Target Operating Model (BTOM), but it is still not clear when the process of bringing in the changes will end.
The report also highlighted the increased costs to businesses and ports, as well as continued uncertainty.
Marco Forgione, director general of the Institute of Export & International Trade (IOE&IT), said:
"BTOM is key to the government’s ambitious target to establish the best border. The reality of its implementation though has been very far from ideal. Business was warning last year that they needed more information in order to plan and ensure goods could continue to flow seamlessly under the new rules and regulations.
"As we’ve seen over the past few weeks, not only were businesses left in the dark with vital information provided much too late, the systems being introduced aren’t working properly. Businesses are frustrated, hauliers angry and fresh produce has gone off due to repeated delays."
The Department of Food and Rural Affairs (Defra) also issued a series of updates last Friday (17 May):
- Medium plant products will now be split into two categories: Medium A, which needs phytosanitary certificate and pre-notification, and Medium B, which needs a phytosanitary certificate but not for pre-notification. So far, only certain fruit, such as quince and stone fruit, are in the latter category
- The easement that classifies produce from EU as low risk, even though it should be medium, will end on 31 January 2025. The produce will be classed as Medium A, so will need a phytosanitary certificate, CHED PP prenotification and be subject to documentary, ID and physical checks
- Spinach leaves have moved from low risk to the new Medium A category
Week commencing 13 May
16 May update:
The Department for Environment, Food and Rural Affairs (Defra) today announced that the IT services which experienced problems over the weekend “are once again fully operational”.
In a situation update to traders sent yesterday (15 May), Defra explained that a power outage had caused issues with the Automatic Licence Verification System (ALVS) starting at 7:45 on 11 May. Sanitary and phytosanitary (SPS) goods affected “have been instructed to move away from the border location under customs control” in an exceptional measure that it called a “temporary contingency”. Defra advised:
“If any goods affected by the outage remain at a border location (eg. uncollected containerised loads) you should immediately contact the port and arrange for collection of those consignments.
“Goods moved away from the border location under customs control will still show as held on the Customs Declaration System (CDS). At this time, please do not contact the National Clearance Hub to request for your goods to be released.”
The department also explained that declarations “will be updated as soon as possible” but that “this does not affect the ability for goods to be directed away from the border”. Traders should stay in contact with their agent, if they use one, for additional updates.
No restrictions are imposed on the “use of processing of the goods directed away from the border under customs control” as a result of the outage. Defra reminded businesses of their legal responsibilities to pay any outstanding duties “once the declaration is finalised” and noted that “all Imports that arrived after 21:00 14 May 2024 will now clear as normal”.
15 May update:
The Guardian reports today that new checks on perishable goods imposed under the second phase of the Border Target Operating Model (BTOM) have caused waits of up to 20 hours for lorries at border control posts (BCPs).
ALVS SOS
Dozens of HGVs were held over the weekend at both the Channel tunnel and Sevington BCP, Dover’s designated post. Issues with the government’s Automatic Licence Verification System (ALVS), which is used to register customs documents electronically, have required document checks to be carried out manually, resulting in significant delays.
Speaking to the Guardian, a firm moving Italian goods into the UK said that 18 of its 23 lorries were sent to Sevington after entering the UK via Dover, where they endured waits of between nine and 20 hours. The IT problems with the ALVS system were confirmed by the government on Saturday (11 May).
A managing director of a Polish transport firm called the issues a “disaster” and added that “there was huge disorder” as well as little information from the Department for Environment, Food and Rural Affairs (Defra) on the status of the lorries.
The Institute of Export & International Trade’s (IOE&IT) senior customs and trade specialist, Anna Doherty, said:
“While Defra issued communications to traders on Monday (13 May), confirming that ALVS was down and that contingency arrangements had been implemented for clearance of affected consignments, we have seen no details of what this contingency process actually consists of.
“Defra is instructing SPS-cleared goods to be removed from border locations but this leaves customs declarations open on the Customs Declarations Service (CDS), which is a concern for declarants and importers.
“As of today (15 May) the issues are still outstanding and many traders are facing disruption at various points of entry.”
CUC confusion
The Loadstar has also reported on concerns raised for customs brokers and agents, as they could be issued with large invoices related to the newly introduced Common User Charge (CUC) provision.
Nigel Jenny, CEO of the Fresh Produce Consortium (FPC), said there seemed to be an “assumption that agents or brokers are liable unless otherwise stated”.
“Per the information we have been given, it is possible for the importer to simply select that the agent or broker will accept the invoice, with brokers none the wiser.”
He added that liabilities for some of the members of the FPC could reach £100,000 per month, “which means liability as a broker could be enormous”.
“This means that in three months brokers could be receiving invoices for something they know nothing about. Equally, how can an SME shipper in Italy or Spain be aware of this? The fees were only announced a few weeks before they went live.”
Defra has stated that importers or their agents are required to determine responsibility between themselves, but that agents only need to “get permission from the importer” to use their details.
Doherty added that “in addition to the concerns around the CUC, many traders need to set up individual accounts for each BCP that they import their goods through”.
“This is because payments for documentary, ID or physical checks by Port Health Authorities or APHA are separate to the CUC (which only applies for goods coming in via Port of Dover and Eurotunnel).
“These checks often need to be paid for ahead of the goods release, potentially delaying the consignments even further.”
Week commencing 6 May
7 May update:
There are complaints of major disruption to supply chains from businesses this week, as last week’s implementation of new Border Target Operating Model (BTOM) checks continues to affect importers of agrifood goods.
Politico’s Morning Trade newsletter reports that IT problems are affecting some businesses, with the IPAFFS system crashing on the second day after the introduction of the latest phase of controls. This in turn saw lorries stuck at the port of Dover for up to 19 hours.
Artigos business coordinator Monika Jackowska spoke to Morning Trade on the customs agency’s difficulties following the changes. The firm divided its fleet and is directing trucks through the ports of both Dover and Harwich in an attempt to mitigate disruption, but experienced delays at both.
“To our disappointment, neither of the ports were fully ready for inspection and, despite assurances from government, we encountered a number of complications,” she said.
“This caused additional workload and frustration not only for exporters and customs agents from the EU but also from the UK and — last but not least — for customers who lost income and patience while awaiting delivery.”
Nigel Jenney of the Fresh Produce Consortium issued fresh comment on the issues to say that the government’s purported “light-touch approach” to enforcement of the new regulations “still caused chaos” for several of the organisation’s members. He argued the government is taking a “nothing to see here” approach, ignoring members of industry.
Bank Holiday timing ‘smart’
As reported in the Independent, Institute of Export and International Trade director general Marco Forgione described the government’s decision to introduce new checks during the May bank holiday as “smart”, as this is a time of reduced traffic.
“The point is what will happen in the coming days and weeks. A lot of businesses also completed their movements before the checks came in – inventory management. You might call it stockpiling.
“The biggest question is what happens to the smaller traders and producers, for whom the cost and potential delays are significant. For some businesses, it is pretty much their margin.
Reality checks
Forgione noted conversations with producers moving Polish products in particular, one of whom told him the additional cost of the checks could reach £1.5m for their firm. This, Forgione suggested, “is either going to result in increasing costs for UK consumers or shrinkflation or availability issues”.
“The reality,” Forgione said, “is that the implementation has been, unfortunately, quite poor with regard to engagement with business, making clear what’s happening and when, with enough time and sufficient clarity for businesses to be able to plan.”
Week commencing 29 April
3 May update:
A technical hitch has reportedly caused lengthy queues at the border, as ongoing problems disrupt the second-phase of the Border Target Operating Model's (BTOM) rollout.
The Loadstar reports that "a technical glitch" in the automatic licence verification system, which links the Custom Declaration Service (CDS) and the new Import of Products, Animals, Food and Feed System (IPAFFS), had caused a major backlog.
An estimated 300 lorries remained backed up at the Sevington inland border facility in Kent on Thursday night (2 May). However, HMRC denied this, saying that "at no point" had 300 trucks been waiting to be processed.
2 May update:
The Loadstar reports “shambolic” scenes at ports in Dover and Hull following the introduction of second-phase measures under the UK’s BTOM.
A broker told the site that IT system failures had led to chaos for his firm’s lorries on the UK border, stating:
“Currently we have multiple HGVs being held at Dover and at Hull and HMRC/Defra seemingly do not know how to release them. The imports look perfect, but the official performance is anything but.”
They added that they had received the same error code after repeated attempts to clear a shipment in the first 24 hours after the introduction of the new checks.
Nigel Jenney, CEO of the Fresh Produce Consortium, said that the situation was “madness”, particularly noting the failure to check shipments arriving at border control posts (BCPs) after 7pm, other than at the inland Sevington facility. He said:
“Our produce is highly time sensitive, it arrives after 7pm to be sold the next day. If it wasn’t so critical, it would be laughable.
“The private sector was encouraged – without financial support – by government to fund and develop BCPs and now our highly perishable sector is forced to use Sevington.”
1 May update:
On 1 May, the Telegraph has reported that plans for border-based goods inspectors to finish work at 7pm, before returning at 7am the following morning, are sparking renewed fears over the effects of the measures.
Lorries bringing produce into the UK via Dover after 7pm will be redirected to Sevington, 22 miles inland, which is running 24 hours a day.
Just-in-time no more?
Importers expressed concern that the implementation of the new checks could lead to long delays of lorries that carry perishable goods.
These goods – including vegetables and meat products – are often imported to make it onto supermarket shelves the following day. Those deadlines could now be missed.
The chief executive of the Fresh Produce Consortium, Nigel Jenney, said that the “absolutely crazy” situation could have a drastic effect on those importing perishable goods:
“Our goods are highly perishable and are delivered on a just-in-time basis.
“Ninety-five per cent of all our consignments from Europe arrive in the evening and through the night to be delivered so that we can enjoy that produce the next day.”
Sevington costs
Jenney also highlighted that the cost of checks at Sevington were considerably more than at the commercial check sites that don’t operate 24 hours a day, with the former charging around £5000 per consignment compared to only £100 at the latter.
Cold Chain Federation chief executive Phil Pluck was similarly critical, stating:
“It’s absolutely stupid when you’ve got lorries coming off at 11pm at night. If they’re carrying fresh fish, for example, that load will be spoiled and there will be masses of food wastage. It could even mean bankruptcy if the retailer rejects it.
“And if you’ve got to sit there overnight you’ve got diesel engines running all through the night to keep chilled goods such as food or plants at the right temperature.”
He argued that the government “just don’t understand the 24/7 nature of haulage coming over from Europe”.
Other fallout from BTOM
The government has defended the measures, saying that the checks protect biosecurity in the UK and that they could no longer be postponed.
Many businesses and trade organisations have voiced concern about a Common User Charge that is being applied to hauliers carrying the affected goods, however, including IOE&IT director general Marco Forgione who has said the charge disproportionately affects SMEs.
Forgione has, though, also said that the government’s approach contributes towards the delivery of a “world-leading, digital first border system for the UK.”
He said the implementation of checks introduces “risk-based compliance” and opens up “access to simplified procedures to a wider range of produce”, helping “the UK build much more resilient, anti-fragile supply chains.”
You can read more about yesterday’s implementation of BTOM here and find out more about IOE&IT’s support for affected traders here.