Exclusive: a shortage of wooden pallets is the latest threat to Britain's Brexit border plans, made worse by the pandemic 1/ bloomberg.com/news/articles/…
In a letter to DEFRA in June, seen by Bloomberg, industry body TIMCON has warned that the U.K.'s supply of pallets won't be 100% ready in time for Brexit.
They need to be heat-treated to comply with ISPM-15, an international standard to prevent spread of pests and disease 2/
They need to be heat-treated to comply with ISPM-15, an international standard to prevent spread of pests and disease 2/
The ISPM-15 requirement is referenced in the U.K.'s 206-page border plan 3/ assets.publishing.service.gov.uk/government/upl… 
As an EU member, the U.K. didn't need ISPM-15 compliant pallets for intra-EU trade, because the EU has an exemption between member states.
That exemption will fall away after Brexit 4/
That exemption will fall away after Brexit 4/
~100m pallets move between the U.K. and EU annually, according to industry body TIMCON.
So the U.K. timber industry has been working frantically to heat-treat its supply of pallets, but preparations have been hurt by coronavirus, according to TIMCON president John Dye 5/
So the U.K. timber industry has been working frantically to heat-treat its supply of pallets, but preparations have been hurt by coronavirus, according to TIMCON president John Dye 5/
Pallet-makers have been installing extra kilns, but with engineers on furlough due to the virus, installations were badly delayed.
Dye said he's disappointed the Govt didn't seek a Brexit extension because of the time lost 6/
Dye said he's disappointed the Govt didn't seek a Brexit extension because of the time lost 6/
The logistics industry has been warning of this issue for some time, and the TIMCON letter confirms it's still an outstanding problem for the government 7/
I asked DEFRA if it agreed with the timber industry that there would be a shortage. Their statement:
“Treatment capacity for wooden pallets has increased. We are working closely with industry to help ensure a sufficient stock of compliant pallets in time for January.” 8/
“Treatment capacity for wooden pallets has increased. We are working closely with industry to help ensure a sufficient stock of compliant pallets in time for January.” 8/
Which doesn't quite answer the question... but anyway, bottom line is it's likely some traders will be moving goods into the EU from Jan 1 with non-compliant pallets, and they could be legitimately stopped by the EU from entering 9/
This is the latest risk to the U.K.'s Brexit border plan, added to poor readiness for new paperwork plus an untested IT system.
And remember - all this stuff applies even if there's a free-trade deal... ends/
bloomberg.com/news/articles/…
And remember - all this stuff applies even if there's a free-trade deal... ends/
bloomberg.com/news/articles/…
