In response to ongoing changes at the UK border, including the introduction of new sanitary and phytosanitary (SPS) checks by the government in April, the FT reports that several importing firms are turning to ‘trusted trader’ status as a way to bring inspections in-house and prevent delays.
The UK’s existing authorised economic operator (AEO) scheme has, until now, had notably lower uptake than comparable schemes operating in the EU.
Trusted traders
Firms which have demonstrated long-term customs compliance and successfully completed a thorough HMRC audit can be granted AEO accreditation and “trusted trader” status.
The commonly cited benefits are that this can reduce documentary checks on goods, with customs authorities potentially fast-tracking shipments from trusted firms in order to alleviate queues and increase border efficiency.
However, in the context of delays and damaged goods at Sevington Border Control Post – the site responsible for carrying out the new SPS checks on plant and animal products – many firms are taking note of the ability to, in essence, become your own control post and move inspections in-house, which is currently being piloted.
Speaking to the FT, Provender’s head of security said that, if border disruption feels like a loss of control, “by becoming a control point, we bring some of that aspect of control back to us”.
Border woes
These comments came as Labour MP Emily Thornberry, newly elected as chair of the foreign affairs committee, promised to push prime minister Sir Keir Starmer to tackle problems caused by Brexit, highlighting trade in particular.
The Independent reported that she said there was “no need” for British firms to stop trading with the EU as a result of border disruption and urged the PM to do more to alleviate the checks which are hindering the smooth flow of goods.
“We need to make sure that we get closer to our friends, and we have a proper trading relationship and cultural relationship with them.”
Work with industry
A need to prevent trade friction was echoed by the Chartered Institute of Export & International Trade’s director general Marco Forgione.
He said the organisation has “heard from many businesses in the EU that were preparing to stop trading with the UK because of the increasing costs and uncertainty”.
While he acknowledged the aspirations of the UK’s Border Target Operating Model, he urged for more clarity around the third phase of the model’s rollout. Currently scheduled for the end of October, the next phase will see safety and security declarations become a requirement for goods imported to the UK from the EU.
He also urged the government to move forwards with the new UK authorised operator status (AOS).
“With this delay to sanitary and phytosanitary goods we would encourage the government to consult with industry and carry out further assessment of the pilot of the trusted trader programme, AOS, to assess the feasibility of moving controls away from the border and to the premises of the AOS holder.”
Greater uptake needed
So far, businesses have been hesitant to engage with the existing UK trusted trader schemes, with less uptake in the UK than in many European countries where a comparable schemes run.
Speaking to the Daily Update in July, Andy Bridges, a Chartered Institute trade and customs specialist who delivers the charity’s AEO training course, said that the UK still lags behind its EU counterparts in trusted trader accreditations.
“We’re not even touching the EU countries on number of accredited firms, let alone the rest of the world.”
“And it’s not just the EU – other countries, the US, Japan, even China – all over the world, other countries recognise this scheme. In essence, it’s giving you an enhanced degree of reputation and status worldwide."
Although the application process is lengthy, and recommended for those firms with a strong track-record of importing and exporting compliantly, the time- and cost-savings can be substantial.
You can learn more about the Chartered Institute’s AEO course, which prepares traders for the accreditation process, here.
