IGD - Economics bulletin 02 February

2 February 2021

Your overview of political and economic news with a focus on the food and consumer goods industry, featuring the latest developments and guidance on COVID-19 and adapting to a new relationship with the EU.

Scotland COVID-19 restrictions

The First Minister of Scotland is expected to announce today the outcome of the review of the current lockdown and whether restrictions will be extended beyond the middle of February.

Separate lockdown restrictions are in place in England, Wales and Northern Ireland.

South African COVID-19 variant

The government has announced that additional testing is being made available in locations where the COVID-19 variant first identified in South Africa has been found.

Essential workers should continue to work provided they do not have symptoms.

Absence

Absence rates due to COVID-19 are reported to be plateauing, and for some organisations declining, though they remain challenging in regions where community transmission of COVID-19 is high.

Northern Ireland ports

The Department of Agriculture in Northern Ireland has suspended physical checks on animal and food products at Belfast and Larne ports following concerns about staff safety. Documentary checks that can be conducted remotely are not affected.

Prohibitions and Restricted Goods (P&Rs) Export Health Certificates

Defra has issued guidance on the requirements for Export Health Certificates for P&Rs exported to Northern Ireland from 22 February.

It has also published revised versions of the P&R Attestation form that is required until 21 February.

A number of questions have been raised regarding the revised attestation form and Defra is expected to issue further guidance shortly to clarify a number of points. This is expected to include confirmation that the CN code requirement is not specific to the consignments, but that all relevant P&R CN codes can be inputted to ensure that the vehicle is easily identifiable as containing P&R goods.

Customs agents

Concerns have been raised about possible disruption in the weeks ahead due to a shortage of customs agents.

Defra is looking at how to build capacity and ensure that, where possible, interpretation of the requirements does not place unnecessary demands on customs agents.

Support being considered includes potential funding for training, additional technical guidance, and the provision of customs agents at ports to triage issues.

EU Exit support for businesses

Businesses trading with the EU should be prepared for the introduction of further border controls for the following key dates:

  • 1 April – End of the grace period for supermarkets and their suppliers moving goods into Northern Ireland. All Products Of Animal Origin (POAO) exported to Northern Ireland will require Export Health Certificates.
  • 1 April – Products of animal origin and all regulated plants and plant products will require pre-notification and health documentation to be imported into the UK. There may also by physical checks, conducted at the final destination.
  • 30 June – The grace period for sending certain P&R goods from GB to NI ends.
  • 1 July – Products of animal origin and all regulated plants and plant products will be subject to physical checks at Border Control Posts in the UK. The regime of border checks will become more rigorous.
    Complete customs declarations for imports to the UK will be required. Importers may no longer defer making declarations. Tariffs will become payable at the moment of import.

The UK government has issued guidance specifically for food and drink businesses.

IGD has also provided additional support to help businesses with EU Exit. Businesses may also wish to refer to the EU EXIT Foodhub, an FAQ website for food and drink businesses

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