Action plans

November 8, 2018 2:34 pm

Contingency planning for the most likely Brexit outcomes is an opportunity to transform your supply chain and protect your business.

Our advise is to create contingency plans based around the three Brexit outcomes.

SOFT

  • Additional declarations required to pay VAT on import
  • Likely trade deals resulting in much lower or no duty
  • Access to European labour and services retained

MEDIUM

  • Additional declarations required to pay VAT on import
  • Possible trade deals resulting in much lower duty on select commodities
  • Access to European labour and services likely retained
  • UK logistics industry struggles to deal with increased unaccompanied imports

HARD

  • Full Customs declarations required to pay VAT and duty on import
  • Leaving Customs Union
  • Access to European labour and services may be retained but certainly restricted
  • UK logistics industry struggles to deal with increased unaccompanied imports
  • UK logistics industry cannot keep up with delays at ports, resulting in a crisis situation.

Things to do NOW

1. Supply chain mapping

We have software and systems to help you map your supply chain and build a tailored business case, which will highlight high, medium and low priority issues.


2. EORI

There WILL BE some form of Customs declaration for every shipment to and from the EU, so if you don’t have an EORI number, you will need to register your business, or you WILL NOT be able to submit declarations. It is easy to get an EORI number. We can help you.


3. Deferment

Along with Customs declarations it is possible that payments of VAT and Duties may be liable, which is why we recommend setting up a deferment facility, to avoid stressing your cashflow.


4. Buffer stock

Even the softest Brexit is likely to create delays. The unknown factors are the severity and the period, which is why we recommend holding sufficient inventory to meet your customer demand for a reasonable time. We have 320,000 sq.ft of storage space across the UK at competitive prices, to meet your needs.


5. Modal shift

Intra-European road haulage will be transformed by Brexit.

In addition to the delays at Dover and the Channel Tunnel, there will be profound changes in the flow of equipment and availability of drivers, which means that costs are likely to rise and effectiveness fall.

Fortunately there are alternatives to standard road freight, which are cost-effective, efficient and better for the environment.

Unaccompanied trailers and short-sea container services enter the UK via a selection of regional ports, which will be unaffected by Brexit. In addition these services can access rail networks and inland waterways, as well as road, providing flexibility of routing, transit and cost.


An opportunity to transform your supply chain and protect your business from Brexit

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