In June 2016, the UK voted to leave the European Union. EU leaders have granted an extension of Article 50 until 31st October 2019. If a deal can be agreed between the UK and EU before the end of October, the UK would be scheduled to leave the EU after a transitional period ending on the 31 December 2020.
However, this is now looking increasingly unlikely and appropriate plans need to be put in place to accommodate the UK leaving the EU on 31st October 2019 without any deal being negotiated.
During this period of continued uncertainty regarding an agreed Brexit deal, Wienerberger Ltd is working relentlessly to make contingency plans that will prepare us for a “No Deal” scenario. These plans were put in place in advance of a possible exit without a deal at the end of March 2019, the original Article 50 deadline.
We are working on these preparations with our current audit partner Deloitte and trade associations, such as the Construction Products Association and British Chamber of Commerce, to ensure that a “No Deal” Brexit, or any other deal arrangements, will cause the least possible disruption to our customers.
We are planning strategies that will minimise the impact on our customers if, in the event of a “No Deal” Brexit, we will be required to default to World Trade Organisation terms of trade. This would mean that additional import tariffs would be applied to clay bricks (2%) and concrete bricks and tiles (1.7%). We are also investigating the tariff implications on imported raw materials and non-ceramic roof and wall accessories.
We are preparing for changes in how we transport goods and raw materials from EU countries into the UK, in the event of increased friction and disruption at ports and border crossings. We are looking into alternative transport routes for our goods that offer the lowest potential for delays at borders.
All Wienerberger companies that export finished goods from the EU to the UK can deliver the appropriate customers declarations and certificates of origin that may be required in the future. We also plan to hold a greater inventory of products and raw materials at our UK port facilities, so any import delays will not affect delivery to the customer or supply to our manufacturing plants.
We want to reassure our customers that we are not complacent about the final outcome of Brexit and are preparing for all eventualities. As a team, Wienerberger Ltd is embracing the challenges and changes that Brexit will bring and we have confidence that we will continue to deliver the same quality products and excellent service in the future.
Keith Barker, Managing Director
Wienerberger Ltd