BREXIT is creating a lot of concern with many of our customers and we are receiving many requests to advise about potential disruption of supplies, the effects of REACH, increasing costs due to import tariffs etc. expected after the 29th March 2019. Reality of course is that we have no idea about what is truly going to happen as there is still much speculation about having a ‘deal’ or ‘no deal situation’ even within our government.
We have reviewed our current position and are able to make the following statement.
Potential delays in obtaining materials
We are currently in the same process as many of our customers in gaining information from suppliers. We are investigating increasing stock levels where possible, however due to the vast number of products we supply this will not be possible for every product. We are therefore creating a priority list to identify which products stock levels will be increased. We anticipate having this list completed by the end of 2018.
An area which will be difficult for us to manage is where customers only buy one or two drums of a product during a year. This is very difficult for us to predict and in these cases, where these items are critical for production, we suggest customers increase their own stock levels to cater for potential supply delays.
The position regarding REACH is still very unclear. There is a proposal that a simple registration system to transfer registrations for the UK to a UK body. Fortunately, at this stage very few of our products would be affected and we are watching this situation to determine any action that may be needed.
Effect of potential tariffs or surcharges
The chemical industry imports the vast majority of chemical materials directly or otherwise from Europe and therefore many products may have tariffs imposed. We currently have no insight regarding what level of tariffs may apply, however it is very likely that any increased costs will have to be passed down the supply chain. This is of course a situation which will affect all suppliers.
The above statement will be available on our website www.schloetter.co.uk and as firm information becomes available we will update this document with any relevant changes.