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Importers concerned at cost of Brexit trade checks

Delayed five times by the UK government, post-Brexit physical border checks of animal products, plants and plant products through the Port of Dover and Eurotunnel were finally implemented on the 30th April 2024. However, importers of affected products express concern about additional costs.

The common user charge (CUC) was also introduced on the 30th April for commercial movements of animal products, plants and plant products through the Port of Dover and Eurotunnel.

It covers imports, goods in transit and goods eligible for sanitary and phytosanitary (SPS) checks at a government-run border control post.

The CUC applies to small imports of products such as plants, seeds, fish, salami, sausage, cheese and yoghurt. The flat-rate of £10 or £29 per commodity has been capped at £145, “specifically to help smaller businesses”, Defra said.

Health certificates were introduced in January on EU goods ranging from cut flowers, to fresh produce including meat, fruit and vegetables, but physical checks for the goods came into force two weeks ago.

Physical checks will be based on the “risk” category that goods fall into, so high-risk goods, such as live animals, will be subject to identity and physical checks at the border.

Products that present a medium risk to biosecurity will also be checked, while low-risk goods, such as canned meat will not require any checks.

But businesses, especially smaller companies, have raised concerns that the new checks from the EU could disrupt their supply chains and despite the £145 cap will increase their costs, with one importer interviewed by the BBC, suggesting “the checks would cost his business between £200,000 and £225,000 per year.”

Controls for SPS goods from the rest of the world are long-established and traders are aware of the responsibilities and inherent risk of goods moved from the rest of the world, but the extensions to goods moving from the EU is catching them out.

An additional CUC cost of £29 for a single commodity is minimal, but if you have four trailers carrying five or more commodities arriving every day then you easily add £200,000 plus to your supply chain.

There have been some easements with Customs, which allow fewer inspections and there are processes which can reduce costs, but preparation is key and the correct documentation is critical in ensuring a smoother frontier transition.

Metro are at the forefront of customs brokerage solutions, with our automated CuDoS declaration platform.

We can automate your CHED import notification, on the import of products, animals, food and feed system (IPAFFS) and simplify customs compliance, to safeguard your supply chain and cut costs.

To learn more about CUC or CuDoS, or how we can simplify and automate customs declarations for your business, please EMAIL Andy Fitchett, Brokerage Manager.

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The Carbon Border Adjustment Mechanism

There are 195 signatories to the Paris Agreement to limit their greenhouse gas (GHG) emissions, though some including the EU and UK have undertaken to cut carbon emissions faster than others.

The EU’s Emissions Trading System (ETS) continuously expands to include new sectors to encourage industrial decarbonisation. However, it also drives carbon prices upwards, which risks carbon leakage if consumers switch from buying EU-produced goods to purchasing substitutes from non-EU countries, that have lower emission requirements.

To combat this, the Carbon Border Adjustment Mechanism (CBAM) came into place on 17th May 2023 and is expected to be fully implemented by 2026. It is designed to counter the risk of carbon leakage by imposing a charge on the embedded carbon content of certain imports that is equal to the charge imposed on domestic goods under the ETS.

The UK CBAM is about a year behind the EU’s version and means that specified goods imported into the UK from countries with a lower or no carbon price will have to pay a levy by 2027.

Like the EU CBAM, unprepared businesses who import or export to the UK could face higher costs and carbon reporting challenges.

The UK CBAM is designed to tackle the most carbon-intensive industrial goods imported to the UK, by putting a price on the carbon footprint of the manufacture of products in the aluminium, cement, ceramics, fertiliser, glass, hydrogen, iron and steel sectors, with a consultation currently determining the precise list of products in the CBAM’s scope.

The consultation launched on 21st March 2024 and seeks views on proposals for the design and administration of CBAM. It is available on this LINK and closes on 13th of June.

The calculation of UK CBAM certificate price will be based on the carbon footprint of imported goods. Companies exporting to the UK will be required to pay a carbon price, reflecting the difference between the carbon price in the country of origin (if applicable) and the UK’s carbon price (which is currently one of the highest of all major trading partners).

The measurement of emissions for UK CBAM reporting is likely to be similar to the EU’s methodology for calculating CBAM emissions and declaring CBAM emissions.

In addition to the upcoming UK CBAM for imported goods, the UK already requires companies to report their carbon information through the Streamlined Energy and Carbon Reporting (SECR) policy.

Our MVT Eco module measures and monitors the emissions of every shipment, by every mode, with offsetting alternatives, so our customers can work towards carbon neutrality in their global supply chain. 

The MVT Eco module incorporates powerful reporting tools, which may be adapted to measure liabilities under the ETS and CBAM regimes.

To request an MVT Eco demo or to discuss any of the issues raised here, please EMAIL our CCO Andrew Smith.

metro tech

2024 tech road-map

Metro has been innovating leading-edge supply chain management, tracking and business-process technology for 20 years and in 2024 we will continue to increase our ability to integrate with stakeholders, share real-time data, accelerate workflows, automate processes and optimise our customers’ supply chains.

In 2024 we continue to focus on the core pillars of our technology strategy:

  • DigitalisationThe continued adoption of digital technologies that improve processes and create new opportunities
  • Digital twin: Creating indistinguishable digital counterparts to the physical supply chain
  • Platform Engineering: Accelerated development in customer facing applications
  • Big data: Integrate, manage, and analyse to uncover and deliver business value

The last quarter planning of 2023, including our cross-functional workshops, provided the springboard and momentum to start delivering against our product roadmap objectives, with the team achieving early successes in 2024 including:

January

  • Deployed comprehensive updates to our vessel tracking capability in MVT Track & Trace to provide customers with enhanced visibility, deviation reporting and insights resulting from the Red Sea crisis disruption
  • Development, launch and deployment of bespoke applications to provide enhanced control, visibility and regulatory compliance in specific parts of the supply chain for FMCG, Retail and Industrial & Manufacturing customers

February

  • Successfully completed the final cut-over from our legacy TMS to CargoWise CW1 product and initiated a continuous improvement programme to identify where we can drive further optimisation of business processes, with a blend of technology and automation
  • Successfully completed multiple system integrations to both customer facing (x6) and 3rd party (x1) systems
  • Initiated our ISO27001 information security accreditation, to demonstrate our commitment to compliance and cyber security practices in building customer confidence of our technology offering

March

  • Launched enhancements to our CW1 TMS and CUDOS customs platform application which further improves our customs clearance times and service delivery to customer
  • Further development to the Metro rebranding and new website, that showcases our services and commitment to deliver for our customers

These early successes spur us on to continue the delivery of our ambitious 2024-2025 plans.

We are excited to announce that we will be expanding the technical solutions team and, as part of our global strategy, we will leverage our wholly owned office in Chennai, India to base local developer talent to accelerate the pace of delivery.

We are confident that complementing our existing team with a cohort of colleagues in India will bring valuable insights, expertise, and creativity to our projects and help us achieve our vision.

If you know any high performing developers in India who are looking to join a dynamic, forward thinking and technology focused freight forwarder, please encourage them to submit their CV, via our careers page.

We are excited for what 2024 will bring and how our technology roadmap will aid the delivery of Metro’s strategic objectives.

Metro is leading the industry in developing the technologies and platforms that simplify and enhance optimal supply chain management.

Visibility, control, environmental, and customs modules, blend together with integrations of critical digital trade documents, including electronic bills of lading (eBL) to provide an unparalleled supply chain platform.

EMAIL Ian Powell for further Information on our digital capabilities and how we can support your global trade and business growth ambitions.

ECO globe

Sustainable business growth

Differentiation, innovation, technology, profitability, customer focus and partnership building are all key components in business growth and are all inherently linked to sustainable businesses, which underlines the value that environmental strategies can add to your business.

Sustainability is good for business, because it builds brand value, meets consumer expectations, attracts talent and creates new opportunities, which is why Metro has been certified Carbon Neutral for five years, supports sustainable initiatives and drives innovation to help our customers monitor and mitigate their carbon footprint.

The vast majority of C-level executives agree that they can achieve growth while also protecting the environment, but they remain slow in implementing actions that embed sustainability into their strategies and operations, and cultures.

We lead the way by taking positive action, with proactive carbon reduction planning, offsetting projects, ISO 14001 accreditation and membership of the Air France KLM Martinair Cargo Sustainable Aviation Fuel Partnership.

Members of the West Midlands Net Zero Business Pledge, we support efforts to make the region a net zero carbon economy, with commitment to zero landfill waste, new recycling bins at our Birmingham HQ, together with more electric charging points and fleet replacement with electric vehicles.

Metro is measuring and monitoring the emissions of every shipment, by every mode, for all of our customers, with offsetting alternatives, so they can work towards carbon neutrality in their global supply chain.

Our MVT Eco module has reported over 250,000 shipments, with a total CO2 equivalent of more than 1M tonnes measured.

The EU adopted the Corporate Sustainability Reporting Directive (CSRD) act in November, with fines and penalties for those failing to disclose their indirect Scope 3 emissions.

MVT Eco uses reporting methodology that is in conformance with the Global Logistics Emissions Council (GLEC) and incorporates 30 pre-built charts and downloadable statements, to simplify Scope 3 reporting compliance for customers.

In 2024 Metro are expanding our sustainability team and are seeking individuals that could add value to this critical area.

If you, or someone you know are committed to the environment and making a difference that counts, we want an individual that has the confidence to work closely with our leadership team in setting strategic objectives and targets, and in ensuring the business meets these on an ongoing basis.

In the first instance visit our careers page and submit your CV with a covering letter.