Updated BREXIT Statement – 2nd October 2019
- As we are an exporter of products (and an importer to a small degree) we applied for and were granted an EORI (Economic Operator Registration and Identification) status number by HMRC, effective from 1st January this year. Additionally, as we do not arrange clearance at ports entry, we have a nominated carrier/distributor whom we use who provides this service for all our exports of product and have been registered with HMRC as our nominated shipping and customs clearance agent.
- For the small number of direct imports we bring into the UK from the EU we have the EORI numbers for those supplier companies, which is required for a post-Brexit situation to prevent delays in Customs clearance. As those companies currently provide transportation to our premises we will be applying for TSP’s (Transitional Simplified Procedures) to further streamline the Customs clearance timeline during the next few days.
- Our finished stock, packaging and raw material chemical components for current production cycle times are held on our premises in the UK. Within this category, we also tend to carry between 3 to 4 weeks of completed finished goods stock and other goods for resale to meet average demand levels. Our packaging materials and components are sourced from UK manufacturers.
- For raw material components we purchase these direct from UK-based subsidiary companies of major global chemical manufacturers. In addition to ourselves holding up to 1 month’s minimum stock levels based on usage, these companies also hold stock within the UK and have issued letters of comfort regarding the holding of increased stocks as part of their own planning for Brexit. Our purchase orders for these components are placed forward for up to 6 months on a call-off basis and committed orders are held in stock in the UK by these suppliers to ensure security of supply. As new orders are committed by us, then these suppliers renew their stockholding levels accordingly from their operational production sites – which are not solely EU-based but have a global presence. However, we are also holding increased stock levels of key components on our own premises to mitigate any potential risks of supply shortages arising from Brexit.
- Due to the above method of purchasing & call-off plus the additional stockholding levels being provided by the UK subsidiaries of the major chemical manufacturers, then we do not need to hold stocks outside of the UK – with the exception of one EU supplier based in Germany included in point 2 above. For that supplier we are holding higher stock levels in case of any transportation delays and issues between the UK and EU.
I trust that this demonstrates that we have carried out significant planning and risk analysis of a potential shortfall in supplies following Brexit and instigated a contingency plan to minimise the risks of exposure as far as we are able with respect to continuity of supply to our customers.
Kind regards,
Finance Director
The Proton Group Limited
Ripley Drive, Normanton Industrial Estate
Normanton, West Yorkshire WF6 1QT
Tel: 01924 892834