PREPARATIONS FOR BREXIT

This week in UK Politics has been particularly “febrile” and I certainly can not remember anything like this before.  After much activity, we really are no closer to knowing what will and what won’t happen. With supply chains that are global, we import and export to the EU and the world in general, this places us in a difficult position along with many other UK businesses.

It is our opinion that we need to plan for a so called “No Deal” Brexit, one in which the UK uses World Trade Organisation (WTO) rules to decide the terms of trade.  Though this morning that looks a little less likely, it is still sensible to plan for the worst, as it is still our view that a “No Deal” Brexit is MORE likely, whether the UK leaves the EU on 31st October 2019 or possibly a proposed 31st January 2020.

So we are doing the following:

  • We are following the UK Government’s advice on what we should be doing;
  • We have been granted an EORI number, to allow exporting;
  • We have applied for Duty Deferment, to allow importing;
  • We are working with our logistics partners on managing customs forms in and out of the country;
  • We are working with our employees to ensure that they can travel and are covered in the event they do;
  • We are talking to our supplier base to ensure that they too are doing all they can to ensure on time delivery of goods;
  • We are clear on which products would have tariffs and we will need to reissue quotes over 90 days, as we do now; and
  • We have appointed Daniel Croft as our “Brexit Czar”

There are many things that we can not control.  Border delays are highly likely in the event of a “No Deal”.  We presume that this will settle down in time and normality will resume.  How long this will take is unclear.

We are therefore likely to increase lead times.  Fortunately our goods are not perishable, and a delay of a week or a few weeks will have no effect on the machine itself, but could impact part of the project management.

If you want more information on how this will impact you precisely please email us at daniel.croft@powersystemsinternational.com or call the office on 01494 871544.