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Brexit Impact Statement

Posted 21st February 2019

Brexit Impact Statement

Whilst there are many uncertainties surrounding Britain’s exit from the European Union, we are in regular communication with our suppliers and partners regarding the continuation of services and business.

However, due to a lack of clarity and uncertainty in respect of the deal (or no deal), they understandably have few specifics to offer at this time.

The current, consistent message is one of likely delays of goods at borders. Additionally, we are hearing that not all suppliers are planning on holding more stock in the UK. This combination is likely to impact on repair times as new or replacement parts could take extra time to reach us.

We recommend that clients speak to us regarding building redundancies into their systems and review any equipment that may be coming to the end of its lifespan so that we can plan for the event of a No Deal Brexit.

With some of the major industry manufacturers’ repair centres being based in mainland Europe, we have also highlighted that warranty repairs could well take much longer than they do now, with potential delays at the border adding a week to shipping time.

Relevant manufacturers have indicated that they would honour warranties, current warranties are based around being recompensed via an EU Court and questions are being raised regarding the ability to enforce these warranties by some experts.

Prices will continue to be linked to the exchange rate of GBP vs EUR and USD which, at this time, looks as though prices are very likely to rise. Additionally, there is a likelihood that additional taxes may be levied against products and services within the EU.

In short, the potential impact on our service could be as follows:

  • As is currently the case, stock levels will be reliant on just in time deliveries. We expect delays in shipping of goods because of increased border checks
  • Prices will be variably linked to the exchange rate of the GBP vs EUR and USD which, at this time, means prices are very likely to rise
  • A potential 20% Tax on goods. This will be as a result of using World Trade Organization rules
  • Some manufacturers have announced plans to hold more stock in the UK.
  • Access to data stored in the EU is unclear (data will still be accessible but legal clarification is needed, as to who has responsibility and who can be held accountable)

If you have any concerns regarding your system or infrastructure following Brexit, the best course of action is to contact the team at LP Networks so we can assess your unique business needs and requirements.

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