Grażyna Jaworska and Piotr Kubalka in money.pl on the consequences and chances of changes in the regulations on the import of plant and animal products to the UK.
Grażyna Jaworska and Piotr Kubalka in money.pl on the consequences and chances of changes in the regulations on the import of plant and animal products to the UK..
Brexit only now going to hit the UK? Polish companies have a chance to benefit from it! We would like to invite you to read an article in which Piotr Kubalka - CEO of J.Dauman Group and Grażyna Jaworska - Managing Director of J.Dauman Logistics talk about the effects of the new regulations coming into force on 30 April this year on the import of plant and animal products to the UK.
On 30 April, new regulations on the import of plant and animal products into the UK will come into force. Under them, additional charges will be levied for sanitary and phytosanitary inspection of goods. The changes will come into force in the midst of the cost-of-living crisis that the British are facing and which is changing their purchasing decisions. Is this an opportunity for Polish products and Polish exporters to increase their share of the British market?
At the end of April 2024, regulations set out in The Border Target Operating Model (BTOM) mechanism will take effect in the UK. Regulators have made it compulsory for all plant and animal and plant-derived goods imported into the UK to undergo additional sanitary and phytosanitary inspections.
However, the changes, which aim to better protect the UK's food supply chain, local industry and the environment, are being introduced at the height of the biggest rising cost of living crisis in decades.
Steep rises in the price of food, household maintenance, energy costs, have significantly impacted on British people's budgets and how they plan their spending. Added to this is the impact of Brexit, which has set in motion a process of a gradual shift away from EU regulation, which is not taking place in a fully co-ordinated and planned way. On a very practical level, this affects the availability and prices of products on the shelves of UK shops. - indicates Piotr Kubalka, Managing Director J.Dauman Group - In light of the new challenges, the British need to make informed purchasing choices, especially regarding foodstuffs - and herein lies a huge opportunity for Polish producers, which they can exploit. If they can offer high quality at a competitive price, Polish companies can quickly increase their market share in the UK.
However, the key to product expansion across the Channel is to design supply chains properly. The impact of the new regulations, which will come into force at the end of the month, could have a huge impact on the operations of existing food industry leaders, opening a window of opportunity for Polish companies - not just in the food sector.
Impact of new regulations on supply chains
The entry into force of the new legislation means the introduction of de facto mandatory customs checks for all vehicles entering the UK. This will translate into increased responsibilities for customs agents and offices, who will have to prepare additional documentation in conjunction with exporters and importers. The biggest change, however, may be the increase in the time it takes to complete international shipments and deliveries. Each vehicle and its semi-trailer will have to pass the scrutiny of UK customs officials, which may translate into the creation of delays at land border crossings and at UK seaports. This will be particularly important for the planning of operations by those whose goods cannot be kept in vehicle trailers or shipping containers for long periods of time. A great example of this is all kinds of fresh vegetables or dairy products, although not exclusively.
New regulations, new tariffs
From 30 April, a new tariff schedule will also come into effect. The first innovation is the introduction of a Common User Charge on eligible imports from European Union and EFTA association countries arriving in the British Isles via the Port of Dover and Eurotunnel in Kent.
In addition, the charges will be based on the number of different product categories entered on the CHED - the import document for plant, animal and animal health and products derived from them - that will enter the UK as part of a single pallet or container. This means that the amount charged for the entry of a lorry carrying pallets of multiple contents can, in extreme cases, prove to be higher than the duty charged for a lorry transporting just one type of product. As a result, this can alter the calculation for many companies as to whether it is more cost-effective to outsource a full truckload shipment - where a logistics operator can consolidate any number of products within a single pallet - or a partial shipment.
In my opinion, it can be expected that some British importers will decide to reduce the frequency of their orders with Polish producers to avoid additional costs. At the same time, I expect that the volume of a single order may increase. - indicates Grażyna Jaworska, Managing Director at J.Dauman Logistics - It is worth considering adapting the product and production processes, if possible of course, to these new factors. Rapid adaptation can become an additional element of competitive advantage offered by Polish companies.
Importantly, the costs to be paid by importers will also become dependent on whether the imported products belong to the low, medium and high risk categories introduced by the new regulations. The maximum fee per CHED will be limited to five commodity groups, even if more are entered in the document. This means that medium and high risk CHED fees will be a maximum of £145 and low risk will be £50.
It should also be noted that the user fee will be in addition to any other fees for carrying out customs inspections.
How to prepare for legal changes?
For exporters affected by the new regulations, I suggest reviewing the logistics solutions they use. First and foremost, it will be necessary to verify the impact of the extended transport time on the quality and characteristics of the goods. It will also be important to analyse the lines of communication between all supply links - manufacturer, logistics operator and importer. - says Grażyna Jaworska.
The new regulations are also a challenge for the British. Many of the IT systems on their side are still not properly integrated, which is why the issue of efficient communication is so crucial, so that the parties can react quickly in the event of an unforeseen situation. An additional step is also to verify the Incoterms terms on which the cooperation between the manufacturer and the ordering party is based. Incoterms is the collective name for the models adopted in international trade practice that define the parties' responsibilities for the goods in transit. Depending on the choice of Incoterms formula, the scope of responsibility for the transported goods, the division of duties in respect of the fulfilment of customs procedures or costs, should, for example, the container with the consignment be withheld during inspection at the port - for which high storage charges are levied at the port customs warehouse, is determined.
Money.co.uk article available at link:
