The end of 2020 will not only see the end of a whirlwind year but also the end of the transition period between the UK and the EU. There is much that remains unknown and for fresh produce businesses, significant questions remain unanswered about the government’s border policy and how it will impact trade.
Our main concern with the Border Operation Model is that from 1 January all high-risk plants and plant products must be pre-notified, accompanied by a phytosanitary certificate, and will be subject to identity, documentary and physical checks. From 1 April this will be extended to cover all regulated plants and plant material, which includes fruit, vegetables, cut flowers and more.
But growers are currently in the dark about what is actually categorised as a high-risk plant. This is essential information and without it business preparation is basically impossible.
Not only are growers in the dark about what is considered high-risk, they also don’t know where their goods will have to be checked. The risk of perishable plant products having to travel further and being held for checks, where they risk deteriorating, is a significant worry. Businesses need the list of goods subject to these controls to be published urgently, with a risk-based hierarchy of checks and the option for checks to take place at the business. These simple measures could significantly reduce the burden on both borders and businesses.
Thankfully, during all of these changes any customs payments on imports from the EU can be delayed for up to six months until the 1 July. However, customs remain a significant unknown. The tariff duty is dependent on the outcome of the negotiations with the EU.
While the UK Global Tariff Schedule will provide some much-needed protection on horticultural products, there will still be significant costs added to UK businesses on both raw materials and imported goods if they come into force in the event we don’t reach a deal with the EU. This is yet further uncertainty for businesses, as they look to plan and budget for 2021.
The NFU has always been clear on the need for free and frictionless trade between the UK and EU. They are our largest trading partner and ensuring UK businesses can continue to import and export goods smoothly and efficiently is vital. Building in measures such as carrying out checks at the business and creating a risk-based hierarchy of checks will go some of the way to reduce the burden on growers.
Certainty is a rare thing in farming but the government does have a responsibility to make these significant changes as seamless as possible for businesses. Releasing more information around high-risk products is a simple step for government to take that will make the transition much easier for growers. While much will remain unknown while negotiations continue, this will at least give growers a better idea of what 2021 may look like.