No Deal Brexit Plan
We have considered the potential of a “No Deal” Brexit. The following are likely to be key areas of concern.
- Cross border disruption to the flow of goods to and from the EU.
- Currency fluctuations in the short term.
- Increased Customs paperwork requirements.
- Potential Customs tariffs on imported and exported goods.
We therefore have some contingency plans as follows:
In the event of a No Deal exit from the EU
Stage 1 – Preparation – (Activated 30th Jan 2019)
- Customers from the EU buying goods sold Ex Works UK should allow additional time for the goods to arrive in case of any customs delays.
- Customers from the EU are encouraged to adopt US Dollar purchase accounts to overcome any currency fluctuation issues.
- EU Supply Chain planning continues.
Stage 2 – Brexit “No Deal” Confirmed
- Tariffs imposed by EU Customs will have to be considered.
- Importing of goods from the EU will require additional UK Customs paperwork to be completed by our Supply Chain and this needs to be addressed and prepared for.
- Importing goods from the EU will suffer delays and we need to plan for this additional lead-time.
- Exporting goods to EU will require us to produce additional Customs paperwork which will be initiated once No Deal is in place.
- Lead-times to Customers will require review.
We would like to offer the following details of our extended Brexit plan to our customers and suppliers:
In the event of Brexit with a deal
The UK has agreed with the EU that there will be a transitional period where existing rules and regulations remain in place until the end of 2020, there should be little risk of disruption under this arrangement.