We are pleased to inform members that the Government has announced an expansion to the autonomous tariff quota (ATQ) on imports of cold-water prawn products into the UK.

This expansion (order no. 05.2795) provides an extra volume of 3,200 tonnes on top of anything imported under order no. 05.2794 (which has a volume of 6,500 tonnes) and will apply for the period 13 October 2022 – 31 December 2022.

You will recall in June this year, BFFF, supported by the UK Seafood Industry Alliance, wrote to the Rt Hon George Eustice MP, requesting a review of the quota (order no 05.2794). Despite the challenges we have faced over the last few months, not least with the appointment of a new Prime Minister and cabinet, we have continued to push for urgent resolution on this matter.

Tariff suspensions and tariff quotas are in place to ensure that the UK seafood processing industry has access to a steady supply of imported raw material at a competitive price. They cover raw materials that are unavailable domestically and need to be imported.

However, due to unprecedented usage of the quota, for example because of the lack of a trade agreement with Greenland, the quota was nearing exhaustion. The fear was that this would mean processors would be forced to import at the full rate of duty of 20%, an extra cost that may have then been passed onto the consumer.

In reality, as the Christmas period loomed, many processors purchased additional stock before the ATQ ran out, and consequently, have incurred huge charges for additional storage. This could now mean that as their inventories are high, the new ATQ may not be fully utilised by the end of the year.

But, on the other hand, the Government has yet to seal a trade deal with Greenland and with the change of Prime Minister and cabinet this can only add further delay to negotiations and renewed concerns going into 2023. However, we are informed that an announcement about the volume of ATQ order no. 05.2794 for 2023 is to follow. We will keep you updated.

Further detail of the new ATQ, including commodity codes, can be found on the DIT website.