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Brexit Support from Dorset Chamber

Farming

Farms in Dorset help the South West turnover £2.7bn every year, more than any other part of the country, according to the National Farmers’ Union (NFU). A no-deal Brexit could mean changes for farmers and growers, as well as knock-on effects for those in related sectors such as food and drink. This information will be of use if you own or work on a farm, or are involved in agriculture in some way.

You need to know:

Money for those receiving payments under the EU’s Common Agricultural Policy will continue in the event of a no-deal Brexit, including the Basic Payment Scheme.
The Government says that it will also continue to fund the Countryside Stewardship scheme and other rural grants, such as LEADER and Countryside Productivity Grants, for the immediate future and potentially until 2022. The Government is setting out the long term future of payments as part of its Agriculture Bill. If you use fertilisers you’ll still be able to buy the same amount for the next two years. However, if your farm or business uses chemicals you will need to check on rules with the HSE.

If you have people from the EU working for you – such as farmhands or seasonal workers – they will be able to stay after a no-deal Brexit.

However, they will need to apply to the Government’s Settlement Scheme to stay in the UK. They must apply by December 31, 2020 if we leave without a deal. You can employ people newly arrived from the EU after a no-deal Brexit. They will be able to stay until December 31, 2020. New immigration rules are set to apply from January 2021. There is the opportunity for them to apply to stay on a temporary basis for three years under the European Temporary Leave to Remain (Euro TLR) scheme if they wish to remain beyond December 31, 2020. People from the Irish Republic are able to live and work in the UK as usual under an agreement between the two countries.

Food labelling will change in the event of a no-deal Brexit.

Firstly, you will no longer be able to use the EU logo on goods produced in the UK unless you have EU authorisation. UK food can’t be labelled as originating in the EU. On Products of Animal Origin (POAO) the EU health and identification marks must be replaced with new UK ones.

If there is a no-deal Brexit the UK will establish its own scheme to protect the geographical names of food, drink and agricultural products. This Geographical Indication (GI) scheme will be managed by the Department for Environment, Food and Rural Affairs (Defra).

If you export Products of Animal Origin (POAO), such as meat, fish and dairy, or animals to the EU you will need an Export Health Certificate (EHC). Your goods will need to go through a Border Inspection Post (BIP). There will also be more general customs requirements. In a no-deal Brexit, an Export Health Certificate (EHC) would be needed for exports of animal by-products from the UK to the EU. They may need to pass through a Border Inspection Post. There will also be other more general customs requirements.

If you import goods directly from the EU to sell in the UK you will need to prepare for a no-deal Brexit.

You will need an Economic Operator Registration and Identification (EORI) number, which is a unique customs ID for your business. You can also register for the Transitional Simplified Procedures (TSP) scheme which will make it easier to import goods.

Specifically for imports of live animals, animal products, and high-risk food and feed, there will be some changes. Access to the EU’s Trade Control and Expert System (TRACES) to tell UK authorities about imports will end. Instead, the plan is for you to register for the Import of Products, Animals, Food and Feed System (IPAFFS) for notification purposes.

If there is a no-deal Brexit, organic food and drink exports will need to be certified by an EU approved body. Some UK organisations may be able to gain this status although only once we leave so there is likely to be a period of time before they gain approval.

In the event of a no-deal Brexit, the Government has said that 88 per cent of goods imported from the EU into this country would have no tariffs placed upon them. However certain products will have tariffs levied on a temporary 12 months basis, such as beef, pork, lamb, poultry meat and cheddar. Products going the other way from the UK to the EU – such as poultry meat, lamb, eggs, potatoes, wheat and beef – are likely to have tariffs charged on them in the event of a no-deal Brexit.

According to the Government, the same rules on the release of Genetically Modified Organisms (GMOs) in the environment will apply after Brexit. They will be controlled by ‘competent authorities’ in the UK, such as Defra in England.

Immediate actions

NOW: Read Government and NFU advice on preparing for a no-deal Brexit

NEXT: Identify your business risks and level of exposure to the EU market

NOTE: Ongoing support online and in seminars/workshops

Check out:

Government no-deal advice
Government farming advice
NFU
Settlement scheme
Temporary Leave to Remain Factsheet
British Chambers of Commerce