Businesses operating within the food and drink sector are reported to be in shock over the new post-Brexit border charges which have started to be rolled out in the UK.
Those bringing in goods from the EU via Dover, one of the primary arteries linking Britain with the continent, have started to receive the first invoices for the common user charge (CUC), which could add up to £145 per consignment.
But there has been some confusion over what constitutes a consignment versus a truck load.
or instance, a truck carrying a mixed load of goods destined for different importers – also known as a groupage load – may end up facing higher bills.
Some companies have reported CUC bills running into the tens of thousands of pounds for the first few months.
Smithfield Foods, which trades meat products, said its CUC costs between April and June amounted to nearly £30,000. Of 810 inbound loads, only around 15 per cent were diverted for physical checks.
Members of the Cold Chain Federation say the impact on trade has been significant.
CEO Phil Pluck said: “Our members are resilient and have coped with the introduction of the CUC, but it is clear that health inspection charges and the CUC and Port Authority charges are now impacting.
“Some companies report a drop of between 30 per cent and 40 per cent in business as mainland European producers redirect their goods elsewhere because of the BTOM issues.
“Whilst the CUC charge has been predictable, hauliers also have to cope with a chaotic charging regime from Health Authority charges, which are both inaccurate and ridiculously expensive for a largely paper-based process.”