Brexit announcement

8th November 2018

While none of us can predict exactly how Brexit will unfold, we believe it is important to remove the emotion from the issue and concentrate on the specific issues likely to impact upon our mutual business in the event of a no-deal exit from the EU.

Given the uncertainty surrounding any no deal exit, it may be impossible to cover every eventuality but we believe there are likely to be 2 key concerns:

  • Additional tariffs on paper and board
    In the event of a no deal exit, World Trade Organisation (WTO) trade rules would be applied automatically to the UK. Currently, the WTO tariff for both paper and board is 0% so, all things being equal, it’s unlikely there will be additional duties applied to any of our products.
  • Additional customs checks
    For many years we have imported materials from markets outside of the EU so we are well versed in dealing with importing goods from outside of the 'free-trade' region. However, given the possibility for the introduction of new customs checks on EU goods, none of us can predict the impact in terms of the time taken to get material into the country.

 With the latter point in mind, we are undertaking additional measures to allow for a more consistent and ongoing supply of our products during any initial transition period.

 These measures include:

  • Development work to increase our Leicester warehouse capacity has already begun. Over time we hope this will allow us to hold approx. 30% more volume.
  • We will order additional volumes of our more popular stock lines.
  • Working with our customers, we will identify regular lines for their specific business and put in place increased volumes.
  • Similarly, working with our key suppliers, we will identify regular lines for our business and put in place additional measures to provide supply consistency.

As mentioned earlier, in the event of a no deal Brexit, the UK will enter a period of uncertainty. We would welcome the opportunity to discuss with you any specific questions you have about our business together and, should a no deal Brexit take place, look forward to working with you to ensure as smooth a transition as possible.

Please contact your usual Sales Manager should you wish to discuss this in any greater detail.

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