Implications of a ‘no-deal’ Brexit and how we can help.

Last updated: 03/09/20.

Brexit-how-we-can-help

As we approach the end of the Transition Period following the UK’s departure from the EU, details of the new trading relationship remain unclear. Whilst there is hope of securing a deal, it is important to consider a range of scenarios including ‘no deal.’

At Plasfilms we have spent some time looking at the implications to our own business and the likely effects for our customers in the event of a HARD BREXIT. We have highlighted here some of the major issues that could affect our industry.

Currency Devaluation

Whilst the £ pound has devalued since the vote to leave the EU, it is possible that it could fall further in the event of a Hard Brexit. With approx. 80% of polymer imports coming to the UK from the EU, this could lead to 10% increases in costs of raw materials for UK processors.

Tariffs

At the time of writing, the UK government plan to introduce a “UK Global Tariff” from the 1st of January 2021. On most polymers, this will be 6.0%, rather than the WTO tariff of 6.5%. This will mean a small reduction on the cost of importing goods from outside the EU but an increase in costs from EU imports and those countries with which the EU has a Free Trade Agreement (FTA) such as South Korea.

Logistics

In the event of a No Deal Brexit, long delays at borders are anticipated as new customs clearance rules take effect and potentially cause delays. UK government is proposing a “light touch” on Customs to begin with but this is not necessarily going to be reciprocated by the EU. Channel crossing delays could result in longer lead times for EU produced goods.

UK REACH

UK REACH is the new framework for Chemical Compliance in the UK as we will no longer be using the EU system. For polymers, monomers and additives will need to be registered in order to be legally imported into the UK. Plastribution are working closely with our suppliers to ensure we meet the requirements of this new legislation.

Brexit Checklist

As the deadline approaches, please see below some key points that companies should consider taking action on to ensure readiness for 2021.

Below are some of the ways Plasfilms can help support your business, by:

 Securing specific stock for customers at a fixed price

 Increasing our general stock levels over critical periods

 Working with suppliers to ensure supply chains are robust and secure

 Working with you to plan flexible and intelligent deliveries

If you’d like to discuss any of these options further, please contact us:
01530 560560 or brexit@plb.ltd

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