The UK officially left the EU on the 31st January 2020 and began a transition period during which we continue to abide by the EU rules whilst negotiating a new trade agreement with our largest trading partner.
This transition period ends on the 31st of December 2020 and the UK Government have confirmed that there will be no extension to this, despite the current COVID-19 pandemic situation.
If a new deal cannot be agreed by the end of 2020, then from the 1st of January 2021, the UK and EU will revert to trading on WTO rules and the UK will essentially be a third party country to the EU, as is the US and China.
In the event of a 'NO DEAL' arrangement, any goods arriving from the EU or leaving for the EU, will be subject to the normal customs processes already in place for our third party trading partners.
The UK Government have recently confirmed that the move to WTO rules and the imposing of import checks on goods from the EU, will be phased in during 2021 rather than full implementation from the 1st of January 2021. This will assist UK businesses in dealing with the additional work involved with importing of goods, as well as ease delays at UK ports.
Holmach’s response to the situation
We continue to monitor the Brexit situation closely and remain prepared with countermeasures to the impact of these circumstances, ensuring a continued reliable supply of our products after 31st December 2020. The key actions we have taken and are constantly reviewing are detailed below.
We encourage our customers to regularly review their spare parts stock levels and request that orders are placed ahead of normal timing to protect against delays. This is combined with end of year and issues affecting all further restrictions in respect of Covid-19.
We have identified?our high-demand product lines across the business and have adjusted stock holding and procurement accordingly to maximise availability.
We are working closely with our key suppliers to safeguard the product supply chain ensuring continuous availability.
We are continuing discussions with our suppliers and their carriers to mitigate the risk of customs delays.
Our Brexit preparation team are continuing?to review the political status, consult with customers and suppliers as well as industry peers as to the best way to mitigate the negative effects of Brexit.
We are constantly updating our?analysis of the?financial impact of a no deal Brexit, including increased duty and tariffs, increased cost of freight and customs administration and ?foreign exchange fluctuations.
We are also monitoring any travel issues for our employees during and after a no deal Brexit.
We recognise that many of our customers may have concerns. We would like to assure you that we are taking all reasonable steps to mitigate risk, as far as possible. We will continue to review as more information is provided by the UK Government. We hope the actions above provide some reassurance that we have plans in place to mitigate any negative impact, but if you have any further questions, please do not hesitate to contact us.
Holmach Brexit Preparation Team