Contact us now for all your importing and exporting questions: international@chamberelancs.co.uk or 01254 356454.
Further to our article on 25 April 2024 regarding the Government failing to listen on costly Import Charges, Traders are now informed of the Rates of the Common User Charge.
The rates for the Common User Charge vary based on the risk level of the imported goods.
The charge for imports and transits of low-risk products of animal origin (POAO) is £10 per commodity line.
Medium and high-risk POAO incur £29 per commodity line charges for imports, with transits still at £10 per commodity line. Meanwhile, low-risk plants and plant products do not attract any common user charge, while medium and high-risk counterparts face a charge of £29 per commodity line for imports, with transits exempt.
Notably, a maximum charge limit is set per Common Health Entry Document (CHED), with medium and high-risk CHEDs capped at £145, and low-risk POAO CHEDs and POAO transits capped at £50, regardless of the number of commodity lines.
To aid businesses in adjusting to this change, digital invoices will be issued late, initially later in the year for charges incurred from April 30, 2024, and subsequently on a month-by-month basis. Additional guidance on the administration of the charge, including invoicing procedures and support mechanisms for businesses, will be provided ahead of the implementation date.
It’s important to note that the Common User Charge will supplement any inspection fees levied by the Port Health Authority or the Animal and Plant Health Agency. Additionally, commercial ports can establish their own charging structures and rates for traders using their services.
The impact of the Common User Charge on businesses of all sizes will be subject to regular reviews, ensuring rates are periodically updated to reflect evolving circumstances and needs. Overall, this charge represents a concerted effort to fortify biosecurity measures and ensure the integrity of imports entering the UK.
Implications of the Common User Charge for UK Businesses
The implementation of the Common User Charge (CUC) carries several implications for businesses, ranging from financial considerations to procedural adjustments. Here’s a detailed exploration of these implications:
Financial Impact:
Invoicing Procedures: Businesses will need to adapt to new invoicing procedures for the CUC. Digital invoices will be issued in arrears, initially later in the year for charges incurred from April 30, 2024, and subsequently on a month-by-month basis. This change may require businesses to adjust their accounting practices and budgeting processes accordingly.
Additional Cost: The CUC adds an extra financial burden on businesses involved in importing SPS goods. The charges levied per commodity line, especially for medium and high-risk imports, can accumulate, impacting the overall cost of importing goods into the UK.
Budgetary Planning: Businesses will need to incorporate the CUC into their budgetary planning. Understanding the potential costs associated with importing SPS goods under the new charge regime is essential for effective financial management.
Operational Considerations:
Procedural Compliance: Businesses must ensure compliance with the CUC regulations to avoid penalties or delays in importing goods. This may involve understanding the eligibility criteria for the charge, accurately documenting imported goods, and adhering to invoicing and payment deadlines.
Integration with Existing Processes: The CUC will need to be integrated into existing import processes and documentation. Businesses may need to update their internal procedures and systems to account for the additional charge and ensure seamless compliance.
Resource Allocation: Managing the administrative tasks associated with the CUC, such as record-keeping, invoice reconciliation, and payment processing, may require dedicated resources within the business. Proper resource allocation is crucial to handling these tasks efficiently.
Integration with Existing Fees:
Additional Charges: The CUC will be in addition to any inspection fees applied by the Port Health Authority or the Animal and Plant Health Agency. Businesses must factor in these additional charges when calculating the total cost of importing SPS goods.
Impact on Profit Margins: The cumulative effect of the CUC and existing inspection fees may impact profit margins for businesses involved in importing SPS goods. Understanding the total cost implications is essential for pricing strategies and profitability analysis.
For further information and support, contact your local accredited customs agents on 01254356448 or email cds@chamberelancs.co.uk
For more news, click here.
