BUSINESS AS USUAL
The Kurt J. Lesker Company is Ready for Brexit
We have spent the last two years intensively planning for Brexit. As we approach the end of the transition period on 31st December 2020, we would like to assure all our customers across Europe, that irrespective of a trade deal or no-deal, we are very well prepared.
- We can ensure that our EU customers are not financially impacted by any additional duty costs
- We expect there to be minimal or no additional administration for our customers
- We will not be increasing our shipping costs because of Brexit
- We do not expect any significant change to lead times or product availability
- There will be no changes to our product pricing because of Brexit
How can we be sure of these statements?
We have taken three main steps to be prepared for any Brexit outcome:
HMRC "Customs Warehouse"
We are currently in the process of implementing a Customs Warehouse – A status which is officially recognised and approved by the HMRC (Her Majesty's Revenue and Customs) and the UK Government.
By transitioning to a Customs Warehouse, it means that any goods we purchase from outside the UK may be stored in the UK, but they are never cleared into the UK unless they are later sold to a UK customer or used internally. For products that are later re-exported, there are no UK duties incurred since they were effectively still in transit and never actually cleared into the UK. Any duty payable to the country of import (where our customer is located) will be paid by Kurt J Lesker using our customs clearance partner.
Customs Freight Simplified Procedures (CFSP)
CFSP is a process offered by the UK HMRC authorising UK companies, who successfully qualify, to fast-track the movement of goods through providing a simplified declaration at the border. In the event of a no-deal Brexit, having CFSP in place will allow us to ship products, through being pre-approved to fast-track through customs thus avoiding any potential delays.
During the last three months of 2020, we are in the process of increasing our inventory levels for many of our products that are in regular demand. This additional inventory will be held in place as an insurance against any potential supply issues that a no-deal Brexit could cause in the first part of 2021.
In summary, in the event of a Brexit no-deal, our Customs Warehouse provides us the means to minimise the impact from any new potential duties. Our CFSP status allows us to fast-track any customs delays and our increased Inventory is in place in case of any supply-chain issues.
We understand that Brexit is of great concern to many of our current and prospective customers and invite you to contact us via your local sales representatives who are well equipped to answer any questions you may have.