Spellman’s Update on Brexit Strategy
A Brexit delay has been confirmed until 31 January 2020 after the EU agreed to the UK's extension request. On 29 October MP’s backed a short bill to change the Fixed-term Parliaments Act. Assuming this happens, without further attempts to change the date, Parliament will be dissolved on 6 November with the election taking place on 12 December.
What happens next on Brexit would depend on the outcome of that election. Possibilities include:
- Implemention of the Brexit deal that Boris Johnson has negotiated with the EU;
- Another referendum although it would certainly require a further Brexit delay;
- Adopting the default position that if no deal is passed by Parliament, the UK will leave the EU without one on 31 January 2020;
- Implementing the legal option of cancelling Brexit altogether by revoking Article 50. (This is not something the current government is contemplating, however it’s possible to imagine this outcome after a change of government.)
BREXIT has created concern for many businesses importing and exporting to/from the UK & Northern Ireland as the market awaits the outcome of important elements affecting the Customs Union. The European market is a very important part of the Spellman High Voltage business and as such our teams are assessing the business risks and providing recommendations on investment strategies in order to mitigate potential impacts. Our focus has been on resources, supply chain, inventory and warehouse capacity and we will leverage our global footprint to ensure a seamless transition no matter the future relationship between the UK and EU.
In preparation of Brexit, Spellman has applied for and achieved the AEO Full Certification (GB AEO F/00393/18) and has ensured it has a UK EORI Number.
If the UK leaves the EU, all EU customers and suppliers importing and exporting to/from Spellman UK will need to have an EU EORI Number (https://www.gov.uk/eori). Having this in place before Brexit will ensure we can keep delivering and receiving products quickly and consistently.
It is very important that we understand our customers' and suppliers' challenges and concerns as well as their own readiness plans. Our intention is to provide ongoing communication concerning the Brexit exit date and any updates as soon as we become aware of them.