The UK's Border Target Operating Model.

The UK's Border Target Operating Model (BTOM) has had a significant impact on the import and export of goods. With increased customs checks and paperwork requirements at the border, the BTOM has led to delays and disruptions in the supply chain, affecting the freshness and availability of products. Importers and exporters face additional costs and administrative burdens, while consumers may experience higher prices and limited choices due to logistical challenges. Additionally, uncertainties surrounding regulatory changes and trade agreements further compound the challenges faced by the industry, highlighting the need for adaptation and resilience in navigating the evolving landscape.

Under the current model, effective from January this year, the majority of EU fruit and vegetable imports are categorised as 'low' risk, (aside from tubers which are high risk) meaning they do not require additional paperwork and checks. However, as of January 24, 2024, the Department for Environment, Food and Rural Affairs (DEFRA) announced on its website a reclassification of various EU fruit and vegetable imports from low to medium risk. Consequently, starting from October 31, 2024, these medium-risk products will undergo physical checks before crossing the UK border. This shift in classification is expected to significantly increase both time and costs in the crucial "just in time" supply chain. With logistics businesses already grappling with inflation pressures and operating on narrow margins, these added expenses are likely to exacerbate inflation concerns, especially in the context of high food inflation.