Change brings challenges
This column was originally published in Meat Management in January/February 2022
At times over the past year when trying to understand rules of origin or how tariff rate quotas interact with the Northern Ireland protocol, I have felt like my brain was going to explode. As a trade specialised association, deciphering the still evolving post-Brexit trade landscape is our bread and butter, I truly take my hat off to all the companies who have managed over the last year to trade meat AND face, not only the new rules for doing so, but EVERYTHING ELSE that has been thrown at them! 2021 saw challenges for trade including COVID, driver shortages, wider labour supply issues, global shipping challenges, Co2 shortages and more. As the new trading rules are so complex and convoluted that you’d nearly need a doctorate to understand them, I think those in the industry that have risen to the occasion should be awarded an honorary doctorate in trade and a cap and gown to boot!
2021 started with the UK officially leaving the EU on January 1st following a very last-minute signing of a Free Trade Agreement. The industry was landed with this new world of ‘rules of origin’ to navigate. The Christmas period last year was spent deciphering the trade agreement so we could brief members on it on the 4th of Jan. We organised a briefing with Defra and HMRC on the new rules and now in January 2022 we have organised a further briefing on origin rules as there has been wide confusion around the ‘supplier declaration’ aspect of the rules of origin across many sectors, so this year will feel very similar to last year with a joint Defra-HMRC briefing session!
Where Jan 2021 saw our exporters to the EU face new documentation requirements and checks, the 1st of January 2022 saw the introduction of further requirements for our imports from the EU. Though these changes are happening on a more phased basis, there are still significant concerns about the impact of the January changes on business operations. Full customs controls and pre-notification for imports from the EU in the IPAFFS system came in on Jan 1st. There is an exception for product coming from the island of Ireland. An announcement was made in mid-December that until a clearer way forward is found regarding The Northern Ireland Protocol, the changes won’t be coming in.
I was quite glad that this Christmas I was able to pause and enjoy a delicious rib of beef (not all to myself!) without the text of a trade agreement hanging over me!
Looking ahead to the rest of 2022 there is more change to come including the introduction of the new plastic packaging tax. We have a briefing for members on this organised to provide clarity on what companies need to do to prepare.
Then in July we see the final stage of the phased introduction of border controls. This will see the requirement for veterinary certification and veterinary checks on imports from the EU introduced. We continue to be concerned about how this will impact, particularly on groupage consignments.
There will also likely be further developments with regard to UK progress on new trade agreements like the UK-Australia Free Trade Agreement that was signed late last year.
In 2022 we will continue to keep members appraised of upcoming changes and (any other surprises) through briefings and our daily news updates.