Brits postpone import duties and customs checks on agriculture

British Prime Minister Boris Johnson is coming this week with a new plan to expedite talks with the EU on a trade deal. There is hope that the fifth round of “intensive” negotiations starting Monday will lead to a breakthrough.

According to the British business newspaper Financial Times, the tone in the talks seems somewhat softer, diplomats involved in the post-Brexit discussions reported. Both parties spoke after last week’s video summit of a new phase of negotiations that are less formalistic and show a greater willingness to make deals.

EU member states reportedly welcome plans for such intensified talks. The EU would be willing to reach an “ambitious agreement,” according to the British paper. Ursula von der Leyen, president of the European Commission, said last week that Brexit work is not even halfway done yet, but every effort is being made to reach an agreement. At the same time, Brussels warns that preparations must be made for a possible no-deal Brexit, should negotiations fail.

Access to the European single market remains a huge sticking point for the Brexiteers. Brussels wants to grant the UK access to the single market without trade barriers but demands that British companies continue to comply with strict European rules. London considers this a breach of British sovereignty, the very reason for Brexit. So far, negotiations have also stalled over fishing: the EU demands the same access to UK waters after Brexit, but the British want to partially restrict European fishermen’s access.

The British now seem to be making various preparations for the return of customs inspections at staging areas in European and British ports. In that case, the administrative hassle of import duties and VAT reconciliation will be reintroduced. For example, a list is circulating of ‘green’ agricultural products for which the UK reserves the right to deviate from EU standards. This means that for some British export products, EU import duties will have to be paid going forward.

In return, the British will reinstate customs checks (and import duties!) for European vegetables, fruits, and agricultural crops. Tariffs would apply to various agricultural products such as vegetables, fruits, and floriculture. Although this list is not yet final and the products vary widely. The UK imports more than half of the tomatoes, onions, cucumbers, bell peppers, and lettuce it consumes, largely from the Netherlands.

With a no-deal scenario in mind, the British government has already proposed a list of customs measures to take effect from 2021, divided into three phases on January 1, April 1, and July 1. From January 1, 2021, imports of standard goods must comply with basic British customs regulations. Imports of high-risk products (such as key host plants of Xylella) require prior notification and health documents, reports the Dutch embassy in London. Such products are physically inspected at a designated location in the UK (e.g., De Kust).

From April 1, 2021, pre-notification and health documentation are required for all regulated plant products. From July 1, 2021, a full import declaration is required. Import tariffs must be paid upon entry to the UK. The UK does not impose import tariffs on nursery products, but they likely apply to cut flowers (8%). From July 1, more physical controls and sampling will be carried out at UK border posts, according to British plans.