To all our wonderful Partners, Customers and Suppliers

We wanted to inform you of our position in relation to Brexit.  We recognise that the current uncertainties are causing concern and therefore wanted to provide you with an update on what we have done and continue to do at Genuine Solutions.

We want to give you reassurance that we are constantly reviewing the situation and have implemented the following key actions to ensure that our customer community are not impacted by the decisions that are yet to be made in relation to the UK’s departure from the EU.

The UK are undertaking negotiations with a deadline of the 31st of October to confirm a new trade agreement with the EU. If they are unable to reach an agreement, the UK will adopt the WTO Terms. As an Export Champion, (a member of the Governments Department for International Trade), we regularly receive updates on the latest discussions and as a business we also benefit from other insights from well-respected organisations such as the British Export Association (BEXA), the FSB (Federation for small business) and a variety of other organisations such as Banks, Accountancy and legal firms which provide advice and support.

In order to reduce and minimise any potential delays at border control we have applied for our AEO Accreditation (Authorised Economic Operator) Status.

AEO offers a number of benefits, including lower rate of physical inspections of imported/exported goods, faster release of shipments, preferential treatment by Customs Authorities, and deferred payment of duties, to the companies that meet compliance criteria and demonstrate the security of supply chain allowing us to reduce impacts to our working capital.

The UK government intends to uphold the AEO programme and its privileges post Brexit, under a UK badged AEO scheme. HMRC have suggested that AEO certified companies will have their goods fast tracked in the case of the severe delays expected in connection with a ‘no-deal Brexit’.

In order to reduce and mitigate impacts on stock availability we have reviewed our stock position in readiness to respond to a No Deal scenario and as a result we have raised our buffer level to ensure that we have a continuity of supply.

Products that are imported from mainland Europe and Non-EU countries are supplied by established suppliers and partners who have robust supply chains in place, and we continue to work closely with them to safeguard these and to ensure the continuous availability of our products.

We have worked closely with our chosen Freight Forwarders to remove the risk of customs delays, which have included reviewing alternative routes into the UK and preparations for the increase in customs administration and we feel confident that our preferred network of international couriers have well considered and established practices to reduce and mitigate impacts.

Our senior leadership team are constantly reviewing the position and being advised by a variety of experts to ensure we navigate and mitigate as much as possible any adverse impacts that Brexit may have on our business.

We hope this gives you some reassurance that we have plans in place to support our customer community and as we approach the Brexit Deadline, we understand that there will be questions and concerns that are starting to arise and we would be happy to answer these wherever possible.

Yours sincerely

Christian McBride
Chief Executive, Genuine Solutions Group

Got a question or would like some more information? Just message us.

    Brexit

    Brexit’s impact on Genuine Solutions

    As I am writing this article on 17th October 2019, we are exactly two weeks away from the next deadline for the UK to leave the EU – 31st October.  Having watched this process develop over the last three years, it would be extremely foolish to make any predictions about what the next week will have in store for the Brexit process, but it is worth outlining some of the consequences of leaving the European Union and the effect on our business.


    What will a no-deal Brexit mean?

    With no certainty that a deal will be reached, a no-deal Brexit is still a possibility.  If this were to happen on 31st October (or at some later date) the most likely outcome would be:

    • All rights and reciprocal arrangements with the EU end
    • The UK would be treated the same as countries that lack any free trade agreements for tax, customs and the movement of goods and people within the EU
    • There will be no transition period in this case and significant changes for businesses will be required immediately as of 1 November 2019 (or any later date of a no-deal Brexit)


    What will be impacted?

    Almost every aspect of day-to-day business has the potential to be impacted in the event of a no-deal Brexit, including:

    • Import and export of goods and services to and from EU countries, including VAT payments and (potentially) custom and excise duties
    • Employment of EU citizens in the UK, and UK citizens in the EU
    • Transport and logistics, including fulfilment
    • Product safety and eco-compliance, including packaging and labelling that references EU licensing
    • Copyright, trademarks and patents
    • Environmental industrial standards, including emissions
    • Transfer of personal data between the EU and UK
    • Mutual recognition of qualifications and relevant licences (including audit, banking and insurance licences)

    Little wonder then that there have been concerns over how businesses will cope with the end of an entire regulatory environment overnight, particularly one that has been built over half a century.


    What does this mean for Genuine Solutions and our customers?

    The biggest impact for us and our customers is around the movement of goods into and out of the European Union, particularly around tariffs, duties, declarations and documentary conformity.  This could impact delivery times and product compliance.

    As a company with a track record in import and export, we have already taken several steps to deal with changes in the movement of goods in a post-Brexit world.

    • We already have an Economic Operators Registration and Identification number (EORI number). This a European Union registration and identification number for businesses which undertake the import or export of goods into or out of the EU
    • We have a deferment account: when goods are imported, they can be subject to import sales tax and customs duties. These duties must be paid in full to the customs authorities at the time of import. Having a deferment account helps ensure shipments are cleared quickly
    • Reliable freight forwarders: we use freight forwarders to act as a transportation service between us and transportation services.  This ensures that goods are delivered effectively, and we have full transparency over when goods will arrive
    • Registration for transitional simplified procedures: we are fully registered for this scheme that will make it easier to import goods in the event of a no-deal Brexit.


    Be Prepared

    When events are out of our control, all we can do is be as prepared as possible.  It has been obvious for some time that events around Brexit had the potential to impact our business, so we have taken a proactive approach.  We believe that we have done everything we can to mitigate risk from a no-deal Brexit.  We are ready to continue to deliver outstanding levels of service to our customers across the group no matter the circumstances.  Whatever the next two weeks and beyond brings, we will be ready to deliver.


    More information on Brexit and its implications for business can be found
    here.

    Written by Helen Rieupeyroux, Head of Finance, Genuine Solutions Group.

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