7th November 2018
Following on from the last statement, 19th September, below is our latest position with regards to potential
issues and how we would cover the requirements of both our customers and our internal demands:
- Customs clearance, potential delays and stocking levels to ensure business continuity.
- We will bring in stock and increase our stock level based on customer forward orders. We will invoice the customer when the stock arrives in our warehouse, on standard terms, and deliver to the customer based on call off requirements. This will only apply to packed material.
- For bulk material we can look at potentially storing bulk iso tanks or finding bulk storage. This will incur a cost based on either a daily tank rental and demurrage charge in the case of iso tanks or daily rental for a bulk storage tank.
- Sterling devaluation – whilst we can hedge against the Euro or Dollar purchases based on forward orders we cannot buy currency on speculation, so as with contingency stocks we will forward order currency on confirmed orders only.
- If there is a no deal scenario then duty will be imposed on all imports into the UK on or after 30th March. This will have to be passed on in terms of a price increase purely related to the cost of duty.
- REACH – if there is no BREXIT deal then DEFRA are planning to implement a ‘UK REACH’ system with a UKIT set up, we plan to implement this for all products and look for support from our suppliers. If there is no support from our suppliers then we will have to look at a cost versus reward scenario for any UK REACH registrations we would have to make.
- Authorised Economic Operator – this is still under evaluation for either an internal post or an external provider.
As a BREXIT scenario develops and the EU and UK negotiators continue their discussions we continue to plan for ‘no deal’ and hope for a BREXIT deal that allows continued no barriers trade with our European partners.
Should you have any questions please do not hesitate to contact your account manager.