Brexit update

Brexit is fast approaching, and we would like to bring you up to speed with the steps we have taken.

Brexit is fast approaching, and we would like to bring you up to speed with the steps we have taken.

  • At IEP we have prepared as thoroughly as possible for any eventualities that are within our control. We have increased volumes of inventory within our UK locations, should we encounter post-Brexit border delays.
  • Our sales teams are ready to transact with you, whether we reach an agreement this month, or if we must trade under World Trade Organisation tariff incurring conditions, after 31st December 2020.

 

It remains unclear whether a deal between the UK and the EU will be reached this month. However, the UK government is suggesting that we should plan ahead for a “no-deal” scenario.

If the UK does leave without a deal, our trading terms revert to WTO (also referred to as the “Australian model”). In this scenario, products will be subject to duty and tariffs on imports arriving from within the EU.

For IEP this means that thermoplastics products will incur a 6% import tariff and will be effective on orders supplied from 1st January 2021. Confirmation of exact cost increases will be advised at a later date, once confirmed by the Government.

If the UK reaches a free trade deal with the EU, there will of course be no changes in prices.

However, if an alternative deal is reached, with different agreed terms, price increases will be applied accordingly, effective from the applicable date.

This is an unprecedented situation for us all. Whilst IEP will of course do everything possible to maintain the service levels that you have come to expect from us, factors may arise that are completely unforeseen. In these circumstances we will do our utmost to expedite a solution as promptly as possible.

Our thanks to all our customers for your understanding and continued support as we move through these uncertain times.

 

December 16 2020

Published by: Phil Wilde