We have been asked by several customers what plans, if any, we have in place for the unlikely event of a No Deal Brexit.
Speaking to our suppliers, many of whom are based in Europe, most are currently looking at their own situation and so unable to give any firm response at this time, but are seemingly taking the possibility of such an outcome seriously.
We have however been able to gain some details. Some are looking at the AEOC registration scheme, also referred to as the Trusted Trader scheme, although as far as we are aware, none have committed to this. As we understand this, this would allow for a smoother entry at Customs and possibly help reduction of import duty.
In the event of a No Deal Brexit, it is assumed that trade/Customs will revert to WTO, (World Trade Organisation) rules, this could see additional costs, such as but not limited to –
- Import Duties
- Costs of Brokers (to assist in clearing goods through customs)
Alongside additional costs, lead time could be adversely effected by Customs delays. It is thought that suppliers will be increasing UK stock to combat this, while at Secura we have already implemented some increased stock holding on key lines and have discussed having additional stock for “call off” with key suppliers.
It should be noted that alongside plans for a No Deal outcome, all suppliers are working on their plans as of 29th March 2019 and the following 21 Months of Transition, looking at VAT, Tariffs, Supply Chain, etc…
As we receive further information on the Brexit situation, “deal” or “no deal”, we will endeavour to keep you updated as appropriate.