Welcome to Through the Gaps, the UK fishing industry's most comprehensive information and image resource. Newlyn is England's largest fish market and where over 50 species are regularly landed from handline, trawl, net, ring net and pot vessels including #MSC Certified #Hake, #Cornish Sardine, handlined bass, pollack and mackerel. Art work, graphics and digital fishing industry images available from stock or on commission.
Thursday 28 January 2021
Star ship Enterprise - Biggest beam trawler yet arrives in Newlyn.
Wednesday 27 January 2021
Seafood trade under the EU-UK Trade and Cooperation Agreement
The EU-UK Trade and Cooperation Agreement means new rules on how we trade seafood with the EU. This affects customs, tariffs, VAT and labelling. Published: Thursday 14 January 2021
Content updated: Friday 22 January 2021 (Added new question and answer, Q.11 and added new question and answer, Q.12)
The EU-UK Trade and Cooperation Agreement (TCA) came in to force at 11pm on 31 December 2020. A summary and the full text including annexes have been published by the UK Government.
This pages covers some frequently asked questions we have received on trading with the EU and what it means for customs, tariffs and VAT on imported and exported products. This information is guidance only and we would recommend that you check specific details in the TCA.
1. Will there still be checks at the UK/EU borders?
export health certificates catch certificates customs declarations Please follow the advice in our I export Seafood guide.
2. Will I need to follow custom procedures and pay tariffs?
We teamed up with the Institute of Export & International Trade to deliver an online seminar in December 2020 on preparing for customs procedures. The information included in the online seminar is still valid under the TCA. It covers:
What are Incoterms and why are they important? Do I need a GB, XI or EU EORI number? What can my customs agent do? What are customs special procedures? What is duty deferment? Watch the recording below.
This webinar looks at the new customs requirements for UK seafood business trading into and out of the EU following the transition on 31st December. Tariffs, Rules of Origin and VAT 3.
The TCA has criteria for what is classed as ‘originating’ goods. These are known as ‘Rules of Origin’. Defra have produced guidance on Rules of Origin.
4. What are the Rules of Origin (RoO) in the TCA?
a. Seafood can be ‘wholly obtained: These are goods that have been exclusively obtained or produced in the territory of the UK or the EU, without using materials from any other country. This includes:
- Fish and shellfish farmed in the UK, including product farmed from imported seed or fry;
- Fish and shellfish caught in UK territorial waters (out to 12 nautical miles from shore);
- Fish and shellfish caught outside territorial waters provided it is caught UK or EU registered or owned vessels.
You can only have bilateral cumulation where seafood originating in the EU undergoes production in the UK (and vice versa). See Questions 8-10 for an explanation of what ‘production’ would entail.
c. Meet specific production requirements: The seafood has undergone production as specified in the Product Specific Rules (PSRs) below. PSRs support certain types of production to satisfy the RoO requirement. These rules can confer a change of origin to EU, UK or in some cases seafood from other countries, to that of the country of production In the Seafood PSRs, the conditions needed for seafood to be originating are:
1) For Chapter 3 products (i.e. goods classified under customs commodity code 03), all the Chapter 3 materials used in producing them must be wholly obtained as explained under (a) above.2) For seafood products with commodity codes from 160411 to 160418, all the materials of Chapters 1, 2, 3 and 16 used in producing these products must be wholly obtained. For seafood products with commodity codes starting with 160419, non-originating (i.e. non-UK, non-EU) materials other than non-originating Chapter 16 materials may be used in their production.3) For surimi that has a commodity code starting with 160420, non-originating (i.e. non-UK, non-EU) materials other than non-originating Chapter 16 materials may be used in their production.4) For all other products with commodity codes from 160420 to 160569, all the materials of Chapters 3 and 16 used in producing them must be wholly obtained. For the above PSR rules to apply, the production that takes place must go beyond ‘insufficient production’ (Further detail on ‘insufficient production’ (i.e. processing) is given in Question 10).
Once a product has gained originating status, it is considered 100% originating. This means that if that product is incorporated in the production of a further product, its full value is considered originating and no account is taken of non-originating materials within it.
5. Are small amounts of non-originating material allowed?
6. Does the TCA apply to European Economic Area (EEA) countries?
7. If the UK and the EU have a trade agreement with the same third country e.g. Norway, will material from the third country be considered originating in the UK or EU?
8. What production must fish or shellfish of EU origin undergo to become UK origin to secure zero tariffs when re-exported to the EU?
We are seeking further clarity on how this will apply to seafood production but general examples of ‘insufficient production’ are:
- Simple wrapping, packing and labelling activities
- simple cutting and portioning simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations
- affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging
- simple mixing of products. This can be the same product or different types of product.
- simple addition of water or dilution with water or another substance that does not materially alter the characteristics of the product, or dehydration or denaturation of products
9. Can non-EU/UK seafood be processed in the UK to become UK origin for re-export to the EU with zero tariffs? There are two instances where the production process converts non-originating product into UK originating product which means it can be exported to the EU tariff free:
Non-EU, non-UK materials are used to produce a product that is classified as 160419 in the customs classification. This would include, for example, coated frozen fish. For example, Norwegian fish block processed in the UK into frozen breaded pieces with commodity code 160419 will acquire UK origin. Similarly, Russian fish block processed in Germany into fish fingers with commodity code 160419 acquires German origin and can be imported into the UK tariff free.
Non-EU and non-UK materials used to produce surimi that is classified under 160420 of the customs classifications will acquire UK or EU origin.
They are allowed under the relevant PSR; or The value of the added non-originating materials does not exceed 10% of the ex-works price of the product.
The following categories of fish will not be of UK origin if caught by: (for vessel origin see Q 21)
- EU vessels fishing in EU waters
- EU vessels fishing in international waters
- UK vessels fishing in EU waters Fish from these vessels can be exported tariff-free if production goes beyond ‘insufficient production’ (see Q9).
Fish bought from third country vessels fishing in international waters will always incur duty on re-export, even with sufficient production, except for production under the product-specific rules (see Q.10). The Table below provides a summary of how this will apply in practice -
Territorial water (out to 12nm) in which the fish was caught Vessel Nationality Fish origin (from columns 1 and 2) Direct landing or import into the UK (tariff Y/N) Re-export to the EU (tariff Y/N) UK Any nationality UK N N* EU Any nationality EU N* Y INT EU EU N* Y INT UK UK N N* INT Third country Third country Y Y *A correct customs declaration may be necessary for the tariff preference to apply.
12. If I buy fish that was originally landed into NI, and then moved to GB under unfettered access, will this attract tariffs if re-exported to the EU?
13. How do I calculate the ex-works price? The ex-works price is the price of the product paid or payable to the producer responsible for the last working or processing. The price must include the value of all the materials used and all other costs incurred in the production of the product, minus any internal taxes which are, or may be, repaid when the product is exported.
If there is no price paid or payable, or if the price does not reflect the value of the materials and all other costs incurred, you will need to use an alternative method of valuation. You do this by adding together all the costs of the raw materials, all the costs of production, all administrative expenses and profit. Freight, insurance and other costs related to transport do not have to be included.
14. Would non-originating packaging contribute to the ex-works price when checking if non-originating materials exceed the 10% tolerance by value?
15. Does the importer or exporter make the application for preference i.e. zero tariff rates?
- A statement of origin that the product meets the requirements, provided by the exporter on a commercial document; or
- The importer’s knowledge, based on evidence that they hold, that the goods are originating. The requirement to provide supplementary evidence will not apply until 31 December 2021 although you are required now to make the formal claim for preference.
16. What evidence will an exporter need to provide?
A ‘statement of origin’ on a commercial invoice or other commercial document that describes where the goods have originated from; Supporting documents and records to enable your customer to make the claim that the product is originating based on “importer’s knowledge”. Further guidance on claiming preferential rates of duty is on the Gov.uk website.
17. Can I claim back tariffs paid on qualifying goods?
Further information on how to claim back duties paid is on the Gov.uk website.
18. Do I still need to pay VAT on qualifying goods?
Each Member State sets its own VAT rates which can be found by commodity code on an EU database
Seafood is zero rated for VAT in the UK so seafood imports will also be zero rated on import. These goods will also be exempt from any local VAT on export from the exporting country.
For more information on VAT, including direct sales with the EU, Accountancy Europe have produced advice covering different trading scenarios.
19. If I import seafood using the Generalised Scheme of Preferences (GSP), can I re-export them to the EU with reduced tariffs?
20. What are the criteria that must be met for a vessel to be classified as EU or UK under the TCA?
- Is registered in the United Kingdom or an EU Member State.
- Sails under the flag of the United Kingdom or a Member State; and Meets one of the following conditions:
- is at least 50% owned by nationals of the United Kingdom
- or a Member State; or is owned by legal persons which each:
- has its head office and main place of business in the United Kingdom
- or a Member State; and is at least 50% owned by public entities, nationals or legal persons of the United Kingdom or a Member State.
Once beyond territorial waters the origin of the fish is determined by the flag of the vessel that catches it.
Fish caught beyond the UK's territorial waters, and beyond the EU's territorial waters, by a UK registered vessel that is then landed into either a UK or EU port is UK origin fish.
Fish caught beyond the UK's territorial waters, and beyond the EU's territorial waters by EU registered vessels and landed into either a UK or EU port is EU origin fish.
In 2019 UK registered vessels landed 143,160 tonnes directly into the EU. For the same period EU registered boats landed 34,600 tonnes into the UK.
The links below have details on tariffs that apply outside of the TCA:
For import into the UK
For Import into the EU
Do you need help?
For help with anything to do with trading with the EU, email regulation@seafish.co.uk
Monday 25 January 2021
A RAW DEAL FOR UK FISHERS.
Out of the potential winners and losers of Brexit, no one actually wins.
Last week, fish and seafood exporters protested in London against the ‘Brexit trade deal’. While a no-deal would have been the final nail in the coffin for the struggling industry, this trade agreement, as we predicted, does not live up to the expectations of UK fishers.
NEF has shown that not all fishers are in the same boat, with a large part of the fleet at risk due to a reliance on shellfish exports to the EU and a small group of quota-owners with large potential gains from Brexit. As it stands, out of the potential winners and losers of Brexit, no one actually wins. Exporters and inshore fishers in particular are bearing the brunt whilst also leaving the biggest UK fish market looking like a ghost town.
Brexit was sold to the public by politicians and parts of the fishing industry as a‘sea of opportunity’; a message that captured the media narrative. There were promises of thousands of tonnes of additional quota, exclusive access to the 6 – 12nm territorial seas, and the taking back control of the 12 – 200nm limit while excluding EU vessels unless they fished on UK terms.
Beyond that, fishers were told trade would not be impacted and the EU market they so heavily rely on would still be available on the same terms. As recent events have shown, this hasn’t happened and the government’s broken commitments are exposed.
In fact, the deal grants EU vessels continued access to the 6 – 12nm limit, despite this being a ‘UK red line’ in negotiations and the most important issue for the inshore fleet in England. This also means there will be little change regarding access to the whole Exclusive Economic Zone, an issue for the larger scale fleet segments accessing grounds in the North Sea, Western approaches and Celtic Sea.
There is an increase in the UK quota share over the next five and a half years, but most of the gains are for a small number stocks and will only benefit certain parts of the fishing industry. Even these quota gains are marginal and nowhere near the promises made pre referendum, something all fishing organisations now seem to agree on.
As well, quota increases are not uniform across all species and areas. The increases are mainly for the high-volume pelagic mackerel, herring and Norway pout stocks (fished by the largest scale and most profitable part of the industry), with some increases in Celtic Sea haddock stock and North Sea hake and sole. Beneficiaries will be in certain ports and parts of the fishing fleet, with the most symbolic stocks not changing at all. The biggest percentage increases in cod touted for Scotland are actually so low in absolute terms, it’s not enough to be viable as a fishery. This political failure combined with the capitulation on the promise of an exclusive 6 – 12nm limit shows how far the rhetoric and jingoism was from reality.
The UK fleet will also miss out on the EU subsidies going forward, a €6.4 billion fund which would have been much larger with the UK still in the EU. Despite the government’s £100m announcement to rebuild Britain’s fishing fleet, it’s not clear that the current situation is looking any better than the EU Common Fisheries Policy for many UK fishers.
Speaking to and hearing from fishermen in Scotland and England over the last few weeks, they feel betrayed and lied to. They backed Brexit in good faith with the expectation of big changes, they even championed the cause and became poster boys for the campaign. But politicians haven’t delivered, and fishers have been dropped in an even worse situation with callous indifference.
Despite Dominic Raab’s denial that these seafood businesses are facing collapse because of Brexit, Boris Johnson is willing to pay compensation, to the tune of £23 million – perhaps an admission that the sector has been handed a very raw deal. A key problem now for the UK is that the aspirations of the Fisheries White Paper, and the Fisheries Act were dependant on a more favourable, but clearly undeliverable Brexit deal. Going forward, there are a few key opportunities for government to support the sector.
Firstly, the White Paper showed a commitment to trying to reduce the environmental impact of fishing, and rewarding and incentivising ‘low impact fishing’. Using the small amount of new quota as incentives for low impact fishing could still happen, although the nature of the quota gains means the scope to do this in a meaningful way is very limited. NEF have pioneered an approach to develop the criteria to define low impact fishing, run a project for Defra co-designing a definition for low impact fishing with the industry, and will be pushing to ensure that the small gains are fairly distributed to help low impact inshore fishers.
And secondly, with the industry under the spotlight and Covid-19 boosting public support for our key workers, we should also be looking to improve the industry and supply chain: making jobs better, safer and more appealing, and ensuring fairer pay for migrant fishers working in the offshore fishing sector.
A just transition in UK fisheries, focussed on moving the industry towards better working conditions, more value captured for the small-scale producers and lowering the environmental impacts across the fleet, is now the only light on the horizon.
Full story courtesy of CHRIS WILLIAMS writing for the New Economics Forum.
25 JANUARY 2021
Sunday 24 January 2021
Meet the happy fishermen, a mending we will go....
After yesterday's mopping-up incident the Asthore boys are now with needles in hand and happily, like the fish they catch now, braiding in and mending the giant sardine ring net which might even keep them busy on the quay until Tuesday...
a day of rest for the crabbing fleet...
a quick landing for the Annie May sporting her new anti-bird fouling gear on the stern - the covers are designed to get the net below the surface of the water when shooting before any sea birds dive on the nets looking for scraps...
Charisma taking ice...
first time visit for the Spanish flag of convenience...
stern trawler Piedras...
like all the deepwater flagged vessels working south and west of the UK she carries plenty of spare trawls, net, warps and doors to save log steams ashore...
she has spent the last year fishing out of Irish, Northern Irish and Milford Haven in Wales.
Never a dull moment in Newlyn.
With all things considered, no doubt young Roger Nowell will no doubt be looking forward to sunnier weather and a chance to chase his favourite fish, the John Dory...
while the Spanish flag of convenience netter Monte Mazantu continues to enjoy her ability to land a full trip of fish into the back of a waiting lorry bound for Spain - of subsequent minimal economic benefit to the UK...
twenty four hours later she is back fishing on the edge of the Continental Shelf 180 miles south west of Newlyn...
windfarm support vessel NR Lynx makes her way in through the gaps...
as does the handliner Orion after a morning on the mackerel...
big boulders, just what a beam trawler doesn't want to be seeing in the cod end...
some of the crew on the St Georges are busy...
greasing the running gear on a very chilly morning...
as the Monte Mazantu prepares to land her catch...
to the waiting transport...
while out in the bay it has been a long night for the guys on the sardine boat Asthore after they managed to get the net in the prop while hauling a full catch of fish. They will all be so not looking forward to the next day back in port when they start filling needles to repair the resultant damage to the net.
Saturday 23 January 2021
HM Gov - sort it!
As this letter from French fish merchant's union exemplifies and as is so often the case, while it's the guys on the ground who suffer the consequences of actions instigated by those well above it is they who have it within their wit to ameliorate the current debacle the fishing industry finds itself in - on both sides of channel.
‘This is the biggest blow I’ve ever had, in all my years of fishing’.
"It’s our last episode for a few months, and it’s a big one. We head to the quayside - through the ‘new normal’ medium of Zoom, Whatsapp and good old fashioned telephone calls - to talk to fishermen about their feelings and thoughts, following the disappointing (to say the least) UK/EU Agreement.
With all the politically-charged articles and press releases flying around, it’s easy to miss the real lives, livelihoods and communities behind the headlines. Enter Fathom: a place where these on-the-ground voices are heard. We hear from young and old, new and experienced, inshore and offshore fishermen, who share heartfelt accounts of the Brexit deal.
First, we hear from Brackan, a young Cornish fisherman working on an inshore trawler. Talking of the Government’s failure to stop EU vessels from accessing the UK’s territorial waters (6-12 miles), he says, ‘everyone in the fishing industry is pushing toward sustainability, and the government had a golden opportunity to give sustainability and the future of inshore fisheries a massive boost… but they’ve given it away. They failed to deliver.’
Moving our way around the coast, we then chat to experienced skipper-owner of the The Guiding Light Andy Giles, from Looe. Again, he shares his anger as UK fishing became the ‘poster boy of the Brexit campaign’, only to be ‘sold down the river.’ We also travel outside of the South-west, to get the views of fisherman Graham Doswell of the under-10m fleet over in Eastbourne, who talks to us with a heavy heart, as the opportunity to level out quota allocations and support the u10m fleet has been missed.
Tune in to hear these stories and more, from Scottish fisherman John Clark, owner of an offshore trawler...
We know of the anger, but what of the hope, if any? We ask the guys if we can dust ourselves off and find a light at the end of the tunnel, and finish with a conversation with CEO Paul Trebilcock about his hopes and expectations of 2021."
Hosts: Paul Trebilcock Chris Ranford
Guests: Brackan Pearce, Andy Giles, Graham Doswell, John Clark, James Roberts.