Trade and Official Controls (Transitional Arrangements for Prior Notifications) (Amendment) Regulations 2021

Lord Goldsmith of Richmond Park Excerpts

Tuesday 18th May 2021 Grand Committee

Moved by

[Lord Goldsmith of Richmond Park]

[The Minister of State, Department for the Environment, Food and Rural Affairs and Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con) [V]]

My Lords, there are two instruments in the group before you, both of which address requirements for the movement of goods subject to UK sanitary and phytosanitary controls. I will speak to each in turn.

The first is the Trade and Official Controls (Transitional Arrangements for Prior Notifications) (Amendment) Regulations 2021. This instrument delays the introduction of control measures for specific plant and animal product commodities. The EU exit regulations amended by this instrument addressed official controls on imports to Great Britain of animals and animal products, and plants and plant products, including food and other imports relevant to the agri-food chain, collectively known as sanitary and phytosanitary or SPS controls. Those regulations allowed retained EU law to remain operable in UK legislation after the end of the transition period following our exit from the European Union. For example, they removed references in legislation to the Commission and replaced them with references to the appropriate UK authority.

Having exited the European Union, we are implementing measures to bring EU imports into the same risk-based controls regime that we apply to imports from the rest of the world. A key element of the EU exit regulations is to set out a transitional period for the introduction of these controls on EU SPS imports into Great Britain. This is a temporary pragmatic step, made necessary due to the impact of Covid-19 on all businesses delivering import, control and infrastructure services. The phased introduction of controls prioritises flow at the border and gives business and industry the necessary time to prepare for the full controls regime. It supports international trade and mitigates border disruption. Those regulations, made and brought into force in late 2020, set out phasing provisions in a number of separate instruments governing official controls, trade in animals and related products, and plant health, including provisions to introduce a first tranche of border controls for some specific plants and animal product commodities from 1 April 2021.

On 11 March 2021, the EU Exit Operations Cabinet Committee agreed that the dates for the introduction of these phased SPS border control checks should be extended while businesses are still dealing with the ongoing impacts of the coronavirus pandemic, which have significantly outlasted the estimates made in the third quarter of 2020, when the instruments in question were being drafted. We are therefore now amending the original regulations to revise the planned dates for the ongoing introduction of phased controls. We must ensure that these transitional provisions are reasonable and operable during and after the protracted period in which businesses and border operations continue to be adversely affected by the coronavirus pandemic. This phasing adjustment will enable businesses to familiarise themselves with the new SPS requirements and migrate to new IT systems. It will ensure that necessary infrastructure and processes are in place at border control points, further minimising the risk of any disruption. We will, in due course, introduce a further instrument to reset the later phases of import controls.

As a whole, these regulations will ensure that we continue to deliver robust, effective controls and checks on all food, animal and plant imports. This instrument does not introduce any policy changes, and the devolved Administrations have given their consent for these regulations to apply to the whole of Great Britain. We remain fully committed to the World Trade Organization and to our international trade obligations.

I now turn to the second instrument. The Plant Health etc. (Miscellaneous Fees) (Amendment) (England) Regulations 2021 provides a fee exemption for phytosanitary certificates for exporting or re-exporting goods from England to Northern Ireland by amending certain fee regulations. These regulations set fees for delivery of plant health services in England by the Forestry Commission and Defra respectively. This includes fees for pre-export and export certification services required to comply with EU third-country entry requirements relating to plant health controlled material. All businesses that use these services are charged a fee to recover the cost of delivery.

The protocol on Ireland and Northern Ireland means that Northern Ireland remains in the EU plant health regime. Therefore, all movements of regulated plants between GB and Northern Ireland must meet EU third-country requirements, including being accompanied by a phytosanitary certificate. If pre-exit fees related to production of phytosanitary certificates were not amended, they would apply in full to trade in regulated plants, plant products and other objects between England and Northern Ireland. This would create additional costs to businesses when carrying out trade within the UK internal market.

Amendments are being made by this instrument to provide an exemption from the payment of fees for pre-export and export certification services where goods are moving from England to a business or private individual in Northern Ireland. The exemption also applies to movements of goods by private individuals in their passenger baggage. This SI applies to England only. Scotland has made parallel legislation and Wales plans to do so. This instrument will ensure that trade between England and Northern Ireland is not subject to additional plant health costs following the end of the transition period. The exempt costs will cover the application, examination, production and amendment of phytosanitary certificates and any associated inspections and testing that may be required in order to meet EU entry requirements.

The amendments introduced by this instrument do not include any policy changes. The instrument simply ensures that the current policy for intra-UK trade is maintained; that services for pre-export and export certification to third countries should not be an additional financial burden to businesses when moving goods within the UK internal market. These instruments ensure that we continue to deliver an effective imports system that guarantees our high standards of plant health and food and animal safety, while ensuring frictionless trading and movements. I beg to move.

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[Lord Goldsmith of Richmond Park (Con) [V]]

I thank the noble Lords who have contributed to this debate.

As I outlined in my opening remarks, the first instrument reflects the Government’s assessment of the protracted impacts of the ongoing pandemic and our need to be pragmatic about phasing in controls on EU imports in a manner and on a timescale that can be reasonably met by trade. The second instrument ensures that the current policy for intra-UK trade is maintained without additional plant health costs for moving goods between England and Northern Ireland following the end of the transition period.

I assure the noble Lords who raised concerns about delaying checks and the new timetable that we are acting in the best interests of UK businesses in taking the decision to delay the introduction of import controls. This will give traders time to focus on getting back on their feet as the economy opens up in the summer.

When the regulations were drafted in the autumn of 2020, we were unaware how disruptive the pandemic would continue to be. These proposals are contingent on the UK proceeding with the relaxation of coronavirus measures in accordance with the broad timetable set out by the Prime Minister. If the UK faces a different scenario, we will monitor the impact very carefully. I assure the noble Baroness, Lady Bakewell, in particular that we are confident that there are no biosecurity risks from these delays. Current EU biosecurity standards are essentially the same as our own, and where this is not the case—for example, for certain plants—we have already delivered more robust controls, which remain in place.

The instrument before your Lordships was made under the urgency provision so that it could be laid and brought into force by 31 March, following the Cabinet committee decision of 11 March. We did not want the risk that EU import businesses would have felt obliged to comply with the control requirements originally due to come into force in April. As with many of the SPS instruments giving effect to the withdrawal Act 2018, this SI does not apply to Northern Ireland.

The noble Baronesses, Lady Ritchie and Lady Jones, asked about the readiness of IT infrastructure. Delivery remains on track for the new import and export IT systems. Since 1 January 2021, the IPAFF system has been successfully introduced for imports of live animals, animal products and high-risk food and feed not of animal origin into GB. We are now extending that system to imports of plants and plant products from EU and non-EU countries. Our new exports IT system is also on track, currently in beta. The next stage is phased transition to the new live systems throughout summer 2021. These timetables will allow the import and export sectors, including businesses affected by Covid, the time they need to familiarise themselves with the new services and commodity groups.

On wider infrastructure readiness, in response to the noble Baroness, Lady Jones, as of April 2021, Defra has received 41 applications for new border control points in England and Wales; 37 of them are live and we are aware of 16 applications for Scotland. The revised phasing has taken into account the concerns from ports and port authorities on preparations for checks. As we validate the plans for January 2022, we will identify any ports or authorities where there are residual concerns and ensure that a response is pragmatic, tested and can be operationalised effectively. Delaying these requirements does not reflect a change in policy; therefore, in answer to a number of noble Lords, an impact assessment or formal consultation with stakeholders was not deemed necessary.

The delay in import controls introduced by this instrument has already been communicated to the trade via meetings, newsletters and a webinar. In answer to the noble Baroness, Lady Jones, these amendments have been positively received by the trade as they enable businesses to save documentary costs and goods to flow easily across the border. Also in response to the noble Baroness, to support readiness for the delivery of the new import controls on animals and animal products, Defra has provided £40 million of funding to local authorities in England to assist port health authorities with the recruitment and training of more than 500 new staff, including official veterinarians.

The delay in import controls for low-risk plants and plant goods introduced by this instrument will give EU businesses more time to prepare for these changes. EU businesses have welcomed this additional time. EU member states are aware of our new requirements and are getting ready for these changes. Ultimately, they will be responsible for preparing EU businesses to meet ongoing demand from customers in Great Britain.

Noble Lords asked questions about the challenges facing those that export regulated goods to the EU or move them to Northern Ireland. We fully acknowledge the difficulties facing those businesses, and continue to press the strong technical case for the remaining prohibitions and restrictions to be removed from GB plants and plant products.

The noble Lord, Lord Taylor, raised concerns about charges and the need to simplify the process of sending dormant flower bulbs to Northern Ireland. The UK Government and the Northern Ireland Executive have developed practical arrangements to simplify checks and controls between GB and Northern Ireland. The requirements for moving bulbs and other plant material to Northern Ireland are set in EU plant health regulations, and we continue to discuss issues around the application of these requirements, in the context of the protocol, with the Commission.

The Movement Assistance Scheme has been developed by the Government to make it easier for traders to continue to move agri-food goods, including bulbs, from Great Britain to Northern Ireland. We will continue to monitor and review the scheme to determine how best to provide ongoing support to traders. Also in answer to the noble Lord, Lord Taylor, the UK Government have engaged and continue to engage with businesses and stakeholders on support measures; they also continue to collect feedback on what further assistance could be beneficial.

Defra continues to press the strong technical case for the remaining prohibitions and restrictions to be lifted to enable exports of the full range of GB plants and plant products to the EU and their movement to Northern Ireland. Following this process will lead to an outcome that endures over the long term. Working with industry bodies, we are seeking to ensure that this process is expedited.

The noble Baroness, Lady Bakewell, was concerned that there is a contamination risk where private individuals can bring plant and plant matter into and out of Northern Ireland with certification. The new requirements on goods moving from Great Britain to Northern Ireland are consistent with the Northern Ireland protocol, and certificate requirements are the same for personal or commercial movements of plants and plant products. The Government have guaranteed unfettered access for Northern Ireland’s businesses to the rest of the UK internal market, ensuring that they can continue to trade as they did before the end of the transition period. Plants will continue to move from Northern Ireland to GB under the same plant passporting system that now governs plant movements within GB. For private individuals travelling from Northern Ireland, or indeed from anywhere, our advice remains to act responsibly.

My noble friend Lady McIntosh asked whether the SI covers all the devolved Administrations. The answer is no. The territorial application of this instrument is England. Scotland has laid two Scottish statutory instruments to cover the equivalent measures for goods moving from Scotland to Northern Ireland, and Wales intends to lay equivalent legislation, which will enter into force later this year. The Scottish and Welsh Governments continue to commit to not diverging in ways that would cut across future frameworks where it has been agreed that they are necessary or where discussions continue.

My noble friend also asked why we do not have an SPS regime such as that in New Zealand. The sanitary and phytosanitary chapter of the trade and co-operation agreement put in place a framework, including an SPS specialised committee, that allows the UK and the EU to take informed decisions to reduce their respective SPS controls, with a commitment to avoid unnecessary barriers to trade. It is in both parties’ interest to use this framework to reduce the rate of SPS checks required, and the TCA is the starting point for our future relationship with the EU. We are open to discussions with the EU on additional steps that we can take further to reduce trade friction, but they cannot be on the basis of future alignment with EU rules, as that would compromise UK sovereignty over our own rules.

Finally, on the issue of cost, which was raised by a number of noble Lords, the actual costs to businesses will vary depending on how they organise their imports and the type of material being imported. The schedules to the statutory instrument set out the fees for individual categories of commodities. The fees methodology was agreed through consultation with the trade in 2017.

To those noble Lords who raised questions about the fees applying to moving material from GB to Northern Ireland, I can reassure them that there will be no associated fees. This is in line with the principles of unfettered market access. There is no requirement for export phytosanitary certificates to accompany qualifying Northern Ireland goods moving from Northern Ireland to GB. There will also be no import checks on QNIGs entering GB, and no additional costs to trade as a result of plant health service delivery by APHA.

I hope that noble Lords appreciate the need for these trade-supporting regulations. These two statutory instruments are critical components in our ongoing legislative process, which will together ensure that we are able to maintain a functional and effective imports regime now that the transition period has ended. I would like to thank again noble Lords for the important points raised here today. I trust the responses have been useful. I am confident that these regulations are fit for purpose and represent another marker in the Government’s commitment to providing support for business.

Motion agreed.