Will we be ready for Brexit?
We have been working on our Brexit plans for some time now. Initially we identified four key risk areas and established the actions that we would take to mitigate them. We have a cross functional team that have been working tirelessly to make sure we are as prepared as we can be. The difficulty is that we don’t know what might change during the negotiating process and if a deal is agreed how those terms might impact us. We are confident that we are as prepared as we can be, based on the information that we have, and we will be flexible and agile to adapt to any changes as a result of the negotiations.
Will we have to increase our prices because of Brexit?
We will make every effort to maintain prices. However, if there is no deal and the UK has to incur incremental duty and tax costs on imports then we may look to pass these on.
What does it mean for our different European markets?
The impact for each market is different. Details of the impact on each market will be communicated over the coming months.
Have we considered the introduction of World Trade Organisation (WTO) customs tariffs on all our purchases from the EU?
Yes
Where our organisation is responsible for UK imports, how many ports of entry do we currently use?
We use three key entry points: the Channel Tunnel, Heathrow Airport and East Midlands Airport.
Have we evaluated our insurance policies, including inclusions and exclusions, to understand coverages for the impacts associated with Brexit?
Yes, there is no change to our coverage based on our insurer.
Do we foresee any challenges related to changes to contract terms, IP rights, Force Majeure as it relates to insurance?
No
Have we performed contract reviews across our organisation to identify Brexit-impacted terms? If yes, have we identified any risks in relation to increased financial/regulatory liability, termination or claims related to changes in law, references to EU law, Material Adverse Change (MAC) clauses, force majeure, jurisdiction, territorial limitations and specific Brexit clauses?
Yes, and there is no material impact.
Have we assessed the impact of product/service specific regulatory changes associated with new and altered compliance regimes?
Yes
What business continuity plans (BCP's) has our organisation made for supply of oversea parts/materials that could affect the goods/services we provide?
We have a number of weeks of safety stock on our fast moving lines and we plan to increase the level of safety stock for these fast moving lines. We continue to work with our suppliers to validate their level of preparedness.
Are invoice, packing list and export declaration documentation available?
Yes
Is incoterm clearly marked on invoices?
Yes
What are your Incoterms?
We trade with customers on a variety of Incoterms. However, the vast majority of our customers will be traded Delivered Duty Paid (DDP).
If a customer is ordering from the UK and a stock item is held an RS warehouse in Europe, will we import the goods to RS UK and then deliver on to the customer? Failing that, are you willing to trade DDP?
Yes, we would trade DDP and RS UK would import the goods and sell them from RS UK.
Is the product tariff code (minimum 6 digits) clearly marked on invoices?
Yes
Is the country of origin clearly marked on invoices and the product packaging, ensuring that the criteria for defining country of origin is checked?
Yes
Is customs value of the goods clearly marked on invoices?
Yes
Is returnable packaging (if applicable) identified separately on invoices, with CPC (Returned Goods - Customs Procedure Code) and tariff codes (minimum 6 digits) clearly marked?
Yes
Are export licences, where applicable, available?
Yes
Do haulier drivers have the correct driving permit documentation, including passports with 6 monthly validity and trailer registrations?
Yes
Does wood packaging material (WPM) meet ISPM15 international standards?
Yes
Are your carriers are aware of Safety & Security (S&S) declaration requirements from July 1st 2021?
Yes
Are cariers aware of the new Goods Vehicle Movement Service (GVMS) and Pre-Lodgement Model requirements from July 1st 2021?
Yes
Have we carried out a risk assessment for the changes in customs procedures for both exports and imports following Brexit?
Yes
Have we engaged with our overseas suppliers to assess potential disruptions to delivery of these goods?
Yes
Have we completed an assessment of our suppliers in regard to their readiness and continuity risks? If yes, highlight the high-level outcome of the assessment. If no, state if we plan to have an assessment done prior to 31st December 2020?
RS have assessed its supply chain and deemed supplier readiness is high. Additionally, as an organisation we are planning for a worst-case scenario in the following areas:
- Reduced free movement of products, goods, services and people across the UK/EU border
- Increased tariff and duty costs on goods moving between the UK and EU
- Increased administration to process the required cross border data flows
- Restrictions on people movement could lead to labour and skills shortages in some sectors
Are we VAT registered in the UK?
Yes - Vat No: GB 243 1640 91
Do we have an EU or UK EORI number?
Yes - EORI No: GB243164091000
Will our organisation be the declarant for imports into the UK?
Yes
What means of transport are we using for deliveries?
We use supplier transport or 3rd party logistics for inbound deliveries and 3rd party logistic operators for outbound deliveries.
Do we have a nominated / lead haulier for the transportation of parts / components into the UK who are able to provide a VAT deferment facility, or do you have our own account?
We have our own Broker Deferment Account in the UK.
Can we provide HS Codes, Country of Origin, Country of Despatch and Weights for all goods, and can we confirm we have the resources to provide this at point of quotation?
Yes, we can provide this information.
In January 2021, all products that fall under the current CE marking requirements will need to change to the new UKCA labelling. Will our products supplied under current CE marking be revised accordingly?
We are actively working with our suppliers and manufacturers to ensure that all products we sell have the appropriate certifications and labelling following changes on 31st December 2020. This includes the UKCA labelling.
