Brexit Statement
In summary, we expect minimal disruption but have planned for major disruption. Below is a more detailed explanation.
Positive ID Labels have prepared the following statement for customers and suppliers regarding Brexit and the potential impacts on supply chains, service and our operations. This is based on our own risk analysis and research conducted within our industry. The aim of this statement is to assure our customers that we have taken the necessary steps to ensure the least disruption if any, in the event of a disorderly Brexit.
Our business and how trade will be affected
Obviously, the main area of concern for us and our customers will be the impact of Brexit on the movement of goods, particularly imports and exports.
Outbound Products
Our business is UK based and 99.9% of our finished products are traded within the UK. As a result, we do not conceive there will be any tangible impact to our customers from our factory gate, as a result of any changes in trading arrangements between the UK and the EU.
Inbound Stocks
Our business does import some materials, and finished goods for resale, from the EU. Notably, we import alphanumeric price guns products from Italy (and South Korea to a lesser extent). We also import paper materials from Spain on a regular basis. These imports may be affected by Brexit but, as a result of closely observing the political situation, we take the view that these imports will not suffer any extreme delays that may result in onerous disruption to supply. Notwithstanding this, we plan for the worst and hope for the best and have taken precautionary steps to minimise any potential impact on trade (see below).
Imported products from the EU and Rest of the World
The company remains as uninformed as the rest of the country regarding the future relationship with the EU. The management team have, however, undertaken our own assessment of the potential circumstances of 30th March 2019. We believe that there will be little impact despite press reports suggesting the country will come to a standstill.
The main political reasons for this are:
- There appears little appetite within the UK government, parliament or the EU or its member states to allow a disorderly Brexit to take place.
- We take the view that the UK government will either ask to extend Article 50 (the negotiating period) or will unilaterally withdraw Article 50.
- We take the view that in any event, the EU and member states are keen to minimise any disruption insofar as it can, by allowing for a political solution to be reached.
From a practical perspective, in the event of a hard Brexit, we believe: The UK will be in control of customs activity for goods inbound to the UK. Positive ID Labels only import a limited amount of products from the EU so in any event, only a fraction of our activities might be affected. As such, we believe the government will not attempt to incur unnecessary delays on imported goods coming into the UK.
The UK government has within its power the ability to waive formalities for inbound goods if it is in the interest of public safety or economic well-being. Despite popular belief that all imported goods are subject to customs inspections, our research shows that this is not the case and that imports are inspected on a risk assessed basis by HMRC.
It is often the case even trading with WTO countries, that customs work is completed away from the border in advance of import and export. The goods we import (materials (paper) and products (labelling guns and label applicators)) are low risk. i. e. They are not drugs or chemicals. As such it is very unlikely that the goods we require would be delayed as a result of being stopped for inspection.
We have experience importing goods from South Korea both before and after the free trade agreement between South Korea and the EU and have not found any substantial delay as a result of customs clearance. These imports are subject to the payment of VAT or duty but these payments are already processed easily by us and the importing agents.
Precautionary Actions
The company has assessed the potential outcomes for our future relationship with the EU as part of due process and as part of our commitment to ISO 9001 quality management principles. Whilst we take the view that disruption will be minimised on both sides, we have to plan for a worse eventuality. The main precaution we have to take is stock. As a result, the company has chosen to increase stock levels of specific products that we can control stock levels for. As such, we are confident that there will be limited material disruption to our ability to operate, if any, as a result of our precautions. We will continue to monitor the situation and take any action required to minimise any potential disruption to our business and that of our customers.
Our Suppliers
The company has discussed in detail with our supliers within the UK who may rely upon imports from the EU or the rest of the world in order to supply their products to us. We have satisfied ourselves that these companies have taken the necessary precautions to protect themselves from disruption and in turn, mitigate any potential problems for our customers. Please feel free to call your account manager to discuss if you have any further questions.
We’ve had a great experience working with this supplier, especially with Natalie - she is always very responsive, professional, and friendly. The pricing is highly competitive and the sales service has been excellent from start to finish.If I could offer one suggestion, it would be to improve the account and invoice management process. It would be really helpful if there were a system for clients to easily track their past orders and invoices in one place.Overall, very pleased with the service and look forward to continuing our collaboration.
Absolutely brilliant service from start to finish. The team are brilliant and the product was excellent quality and exactly what I wanted. Natalie is amazing as are her colleagues. Will definitely be a returning customer. Thank you
Ive used Positive ID Labelling Ltd for all our egg box labels for many years now. Natalie is always above and beyond helpful and the service is exceptionally fast and efficient.
I inadvertently ordered the incorrect label guns which was quickly sorted by Natalie. She was excellent, customer service at its best! Thank you once again
