The Cold Chain Federation (CCF) has expressed serious concerns over the full implementation of the new Brexit border controls, referred to as the Border Target Operating Model (BTOM).
- Scheduled to launch on April 30, 2024, the CCF warns that BTOM could significantly increase food prices and limit consumer choice.
- A recent report by Allianz Trade suggests that the new border measures could add up to 10% to import costs, impacting the food supply chain.
- The Federation is pushing for a delay until October 2024 to address unresolved infrastructural and logistical issues.
- Key demands include reviewing Border Control Post readiness and expanding the trusted trader scheme to mitigate potential disruptions.
The Cold Chain Federation (CCF) is urging a delay in the implementation of the Border Target Operating Model (BTOM), scheduled for April 30, 2024. The CCF argues that the BTOM could severely impact food prices and consumer choices. This warning is based on a report from Allianz Trade, which indicates that these border controls, established under a previous Brexit agreement, could result in a 10% increase in import costs over the first year.
The CCF’s letter to the Defra Secretary of State highlights several critical issues. It emphasises the lack of readiness of Border Control Post facilities, citing significant staffing shortages and incomplete infrastructure. Additionally, the Federation criticises the 24-hour pre-notification requirements for goods, branding them ‘impractical.’
Phil Pluck, chief executive of the Cold Chain Federation, has voiced strong concerns, describing the BTOM as a ‘broken model’ even before its full implementation. He warns that failing to heed expert advice could damage business confidence in the UK and escalate costs for consumers. Pluck stresses the necessity of governmental collaboration with both domestic and EU partners to ensure a seamless transition that prioritises food safety and minimises disruption.
The Federation’s communication with the government outlines a series of recommendations to facilitate an effective adaptation to BTOM. These include an urgent review of the operational capabilities of all Border Control Post facilities and a rapid enhancement of the trusted trader pilot scheme to support medium-risk goods. Additionally, the CCF insists on transparency from the government regarding BTOM’s costs and its anticipated impact on food inflation.
The Allianz report underscores that businesses could incur fees of up to £145 per consignment when importing through Dover. This cost burden is likely to affect small businesses severely and could lead to higher food prices for UK consumers. The report warns that BTOM checks are poised to influence £21 billion worth of agricultural imports, which constitute roughly 3% of the UK’s total imports. Such additional costs are comparable to imposing a 10% tariff on imports, potentially passing these expenses onto consumers.
The Cold Chain Federation’s urgent call to delay BTOM implementation highlights significant concerns over potential disruptions and increased costs, prompting critical governmental action.
