A WARNING has been issued that new post-Brexit customs rules will push up the price of imports to the UK and add to the cost of living crisis.
A grace period for companies shipping goods to the EU came to an end yesterday, meaning extra processes around declaring goods are now being implemented.
Experts have warned while UK-based businesses are prepared for the changes, thousands of firms across the EU will now have to adapt to the new processes and it will be a “much more costly” system.
Speaking to BBC Radio 4’s Today programme last week, Shane Brennan (below) chief executive of the Cold Chain Federation – which represents frozen and chilled food firms, said: “UK-based businesses are pretty prepared, we have been doing this going the other way for a long time and we have been working for the past 12 months knowing this is coming.
“What we are really worried about is the businesses across the European Union, as they are the ones that have to make a change now.
“They haven’t had to since Brexit, but as of January 1 they have to make declarations, do paperwork, they have to gather information, in order to trade with the UK. That is a big change and we are worried about how prepared they are.”
Brennan said there were concerns about delays, goods not being able to get across the border and extra costs which could also mean some firms stop imports to the UK.
He added: “We are talking about £300/£400 additional per lorry or goods sent on a lorry across the border.
“We are talking about whole waves of new people required to do the data entry.
“This is a much more inflexible, much more costly process, this is the sort of long-term future and change we are seeing in our food supply chain.”
In his New Year’s message, Boris Johnson set out his views on the opportunities created by Brexit in 2021.
The list included returning crown stamps to pint glasses and scrapping a ban on selling goods in pounds and ounces.
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Drew Hendry, the SNP’s shadow trade spokesperson, said the new customs rules showed the “harsh reality of Boris Johnson’s ‘Brexit Britain’”.
He said: “Far from being complete as the Tories try to claim, the real life impacts of Brexit are continuing. First, they hammered our exporters, now the barriers and increased costs for importing are beginning – adding to the cost-of-living crisis facing individuals and families.
“Every sector is reporting serious disruption to their business models, and it will only get worse.
“Boris Johnson is inflicting this damage on a country that did not vote for Brexit.”
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