Brexit red tape causes UK exporter to open EU base - as paperwork costs put some out of business
The UK’s biggest shellfish exporter says it’s opening an EU base to avoid paying up to £1 million a year in Brexit-related red tape.
Last updated 24th Feb 2021
South Devon-based Dartmouth Crab Company, which has a turnover of roughly £12 million, says paperwork which used to take five minutes to complete is now taking up to five hours – and some catch is going to waste as a result.
Bosses, who recently joined a demo in London to highlight the plight of the industry, also warn that the increased costs are forcing smaller operators out of business.
They say a decision to open-up bases on the continent, to circumnavigate what they say is ‘excessive paperwork', will help keep the business sustainable while solutions are agreed by Governments.
Dylan Huxley, transport manager, said: "It’s costing us about £400 per delivery in paperwork. We normally have on a typical lorry load to France or Spain somewhere between seven and ten deliveries on that lorry.
“£400 per delivery in paperwork costs doesn’t really work (financially). What we’re looking to achieve is to set ourselves up as an operation within the EU so we can export an entire lorry load of deliveries to ourselves – therefore only one set of paperwork and cost per lorry load, and then redistribute it from there.
“Before a fisherman could turn up with a box of lobster we weren’t expecting and we could put it onto the lorry. The paperwork’s now done 24 hours before the lorry leaves - so the day before the lorry leaves – if somebody turns up or phones up and they’ve got a load of crab and say ‘we’ve got this, do we want it’ we can’t take it now.
“The other problem is of course the delay to the paperwork. It’s taking 24 hours to produce so it’s 24 hours longer on the lorry which equates to a lot more dead on arrival.
Transport manager Mark Moore, who voted against Brexit, said: “Smaller business are starting to close. I wouldn’t say they’ve gone bankrupt. It’s just not worth their while.
“That’s very sad, we need competition.
“We’d have been better off with No Deal to be honest. They’re enforcing upon us the export regime regardless of whether there was a deal or not.”
The Dartmouth Crab Company, which is also one of Europe's largest live shellfish exporters, oversees operations in Weymouth, Cornwall, Wales, Scotland and the North East - as well as Devon.
A spokesperson for DEFRA said: “Our fishermen are at the heart of our coastal communities and we recognise the impact that the pandemic has had on them, as well as the new requirements following the end of the Transition Period.
“The expansion of our £23 million support package will ensure many more businesses can benefit from government support.
“The coronavirus pandemic has led to the closure of critical markets, and this has been exacerbated by issues faced by exporters at the border.
“We will continue to ensure we are listening to our fishing and seafood industry as we work to resolve these issues, and work with them to build up the industry in the months and years ahead.
“In addition to funding, the UK Government will provide further support to businesses in adapting to new export processes. Defra and HMRC will be offering targeted, proactive and hands on support to fisheries exporters to help them successfully meet the new requirements. This includes a new training package and focused workshop sessions.
“The Prime Minister has announced a £100 million investment in the UK fishing industry to modernise their fleets and the fish processing industry.”
For more about Government help for the British fishing industry click here