The government has responded to a report from the FT at the end of last week (16 August) which stated that businesses and customs agents are being charged for checks that have not taken place.
The checks in question are those that have been introduced by the UK for goods subject to sanitary and phytosanitary (SPS) controls. New SPS checks were bought in at the end of April as part of the UK’s post-Brexit Border Target Operating Model (BTOM).
‘Chaotic’
The inland border control post (BCP) at Sevington is being funded by the Common User Charge (CUC) that was introduced in April for SPS goods.
At a meeting with Defra, however, customs agents voiced concern at the “chaotic” implementation of the new system, according to the FT.
One agent claimed that, despite technical limitations at Sevington preventing an inspection from taking place, owners of shipments were still charged for the checks.
Government response
Defra responded to the FT report at the end of last week to say that the import controls introduced under BTOM are “essential to protect national biosecurity” and that “these important border checks at Sevington are funded by the CUC, which has been designed to minimise impact across all businesses”.
“This approach spreads the costs across the maximum number of imports, keeping charges as low as possible while providing a high level of predictability, and ensuring we only import safe, high-quality products.
“A major outbreak of plant or animal disease could be far more costly and have a devastating impact on the economy, our natural environment, and on public health.”
Despite the defence of the CUC and its implementation, Defra did note that “the impact of the CUC on businesses will be monitored and kept under regular review” in the coming months, while “any CUC changes will be reviewed and updated annually”.
Government support
The government has provided a host of materials for traders looking for clarification on the CUC, including how and when it should be paid.
These include materials from a webinar hosted last week (13 August) outlining “what to expect with regards to CUC invoicing and payments”. These can be accessed here.
In a message shared via the government’s Joint Customs Consultative Committee (JCCC), Defra also notified traders that “close collaboration is continuing between Defra, HMRC and Border Force to manage the flow of SPS goods into GB and build system resilience through continuous improvement”. The committee said:
“There is an intention to extend the Goods Vehicle Movement Service (GVMS) to provide inspection messages for Products of Animal Origin (POAO) transiting GB under the Common Transit Convention and using GVMS-enabled carriers.”
Defra and HMRC will provide further information, it added.
Veterinary deal hope
The new Labour government is said to be seeking a deal with the EU on veterinary trade to remove the need for SPS checks on certain goods traded between the UK and the bloc.
The Chartered Institute of Export & International Trade’s international director, Fergus McReynolds, said, following European Commission president Ursula von der Leyen’s re-election, that, for the EU, “there is a clear focus in terms of deepening free trade agreements and deepening relationships with key partners – the UK included”.
There is not yet a timeline on when an SPS deal could be achieved, however.