Recommendation 10

In addition to the new customs requirements, some industries can find themselves subject to extra controls depending on the company’s individual supply chain and the industry they are in – some goods will find themselves much more regulated than others.23 Examples include: • Exports to the EU of live animals, fresh meat and fish and plants must, since 1 January 2021, go through sanitary and phyto-sanitary (SPS) checks for diseases, pests and other contaminants.24 Traders in these goods will have to pay for any extra licenses or certificates needed, as well as any fees charged for physical inspections at border control posts managed by ports or the government.25 Businesses importing such goods from the EU to the UK have not yet been subject to these requirements, but these are scheduled to be phased in through 2022.26 17 C&AG’s Report, paras 2.2, 2.9, 2.10 18 Qq 86–87 19 Q 1 20 Qq 113, 171 21 Q 114; HMRC impact assessment for the movement of goods if the UK leaves the EU without a deal (third edition) - GOV.UK (www.gov.uk) 22 Q 114 23 Qq 1, 44 24 C&AG’s Report para 2.14 25 Qq 15, 28–30, 160 26 Q 146 12 EU Exit: UK Border post transition • Traders in manufactured or processed goods will need to prove the origin of its inputs, in order to prove that a good is made locally and therefore qualifies for the tariff and quota exemptions agreed in the Trade and Cooperation Agreement.27 Logistics UK told us that it can be very complicated for businesses to get declarations from all their suppliers confirming the origin of any materials or components and HMRC agreed that there is extra cost involved in getting ready all the necessary paperwork.28 Small and medium-sized enterprises (SMEs)