Forward planning and Brexit
Duncan Print Group recognises that during the period leading up to and after BREXIT our customers will want assurance that we have plans in place to minimise the disruption to our supply chains to ensure continuity of service.
As members of the BPIF Duncan Print Group receives regular updates on potential issues and what we can do to mitigate impacts. We are also utilising information published on the ‘Business Readiness’ website recently set up by the Government.
Duncan Print Group’s key area of focus is on the import of raw materials from the EU.
In February 2019 the Government published a pack for businesses to prepare for changes at the border in the event of a no-deal Brexit and this includes what to expect on Day one. We already hold UK Economic Operator Registration and Identification for exporting outside of the UK which is required by law.
The Duncan Print Group acknowledges that a no-deal Brexit will require us to consider what tariffs might be imposed on raw materials from the EU, how our supply chains could be interrupted and how we would be affected by a fall in the value of sterling and a consequential rise in the cost of raw materials.
We have undertaken a supply chain mapping exercise to identify suppliers whose products are sourced from outside the UK and we are currently in the process of discussing contingency plans with them.
Whilst at the current time we cannot anticipate the level of tariffs that could be applied post-October 31st, we are adjusting our budget planning to mitigate the impacts. We are also checking WTO tariffs that might be applied on imports, but note that currently paper and board incur a 0% tariff.
We are also taking advice on non-tariff barriers such as customs delays as well as implications for those of our staff who have citizenship in an EU country. At the current time only two members of staff have such status.
Our contractual arrangements may need to change and again we are in dialogue with key suppliers about this.
Our key concern is to mitigate the risks we identify in order to remain competitive in providing our customers with a high level of service quality with no interruption going forward.
We are advising customers who are in a position to place orders ahead of 31st October to do so to enable us to order raw materials (particularly paper and board) ahead of the deadline to minimise the likelihood of supply disruption where it can be avoided.
Managing currency risk
It is generally accepted that the possibility of a no-deal Brexit is a key factor contributing to the volatility of exchange rates and this may have an impact on the cost of raw materials.