Dear Valued Customer The official date is 29 March 2019 and on this date the final arrangements between the United Kingdom and the European Union will be known and agreed (unless delayed). In the case a withdrawal agreement is ratified a “transition period” will begin and exist until 31 December 2020. During the transition period the UK and EU will continue to operate under the same conditions as those in existence prior to the Brexit date. In the transition period, Motan Colortronic Limited will take action on all the below points to ensure continuity of supply and to minimise any impact on our customers businesses.
If a withdrawal agreement is not ratified then a transition period will not apply and the full Brexit situation will apply as from the Brexit date. This situation will be less favourable but we will adapt to it by implementing our operational model with immediate effect.
Motan Colortronic Limited import and export its products and services throughout the UK, EU and the rest of world where required. We consider all the products that we supply to be within the scope of the effect of the trading relationship between the EU and the UK.
We have a strong capacity and experience in the preparation of relevant customs documents, export papers (including Country of Origin information) tariff codes etc. We can confirm that we have the necessary measures in place to ensure the correct commodity codes exists for products and are printed out on export paper where required. Therefore, in the case that trade between the UK and the EU is subject to such controls Motan Colortronic Limited are already capable of managing these additional processes.
The impact of tariff duties is unknown, but in any event, we will review the financial impact on the business of different scenarios.
Potential issues that could have an impact include:
- Taxes and duties
- Increased transport costs
- Delayed movement of goods
- Possible WTO rules for trading with other EU member states
- Cost increases due to the above
Motan Colortronic Limited has a significant stockholding in the UK and we are confident that it is sufficient to secure against any delays resulting from increased customs surveillance of imports into the UK. However, we will re-evaluate the lead-times for products and spares imported into the UK and ensure they are sufficient to eliminate or minimise any delays for our customers.
We can also inform you that Motan Colortronic Limited has enough resources to increase inventory levels at short notice should this be required.
In short, as a long-established company founded in 1974, we are doing all we can to mitigate any potential risks which may arise to ensure the best possible service to our customers in both the short and long term.