The Altro Group Brexit statement

Altro Brexit Statement Q4 2020

Context and Introduction

As you are aware, the UK officially left the EU on the 31st January 2020 and entered into a transition period during which we will continue to abide by the rules of the EU whilst negotiating a new trade agreement with our largest trading partner.

This transition period ends on the 31st of December 2020 and the UK Government have confirmed that there will be no extension to this, despite the current COVID-19 pandemic situation.

If a new deal cannot be agreed by the end of 2020, then from the 1st of January 2021, the UK and EU will revert to trading on WTO rules and the UK will essentially be a third party country to the EU, as is the US and China for example.

If this ‘NO DEAL’ arrangement does come to fruition, then any goods arriving from the EU or leaving for the EU, will be subject to the normal customs processes already in place for our other third party trading partners.

The UK Government have recently confirmed that the move to WTO rules and the imposing of import checks on goods from the EU, will be phased in during 2021 rather than full implementation from the 1st of January 2021. This will help UK businesses deal with the additional work involved with importing of goods, as well as ease delays at UK ports for a period.

Altro’s response to the situation
We continue to monitor the Brexit situation closely and remain prepared with measures to counteract the impact of these circumstances, ensuring a continued reliable supply of our products after 31st December 2020.
The key actions we have taken and are constantly reviewing are detailed below.

• We have identified our key fast moving product lines across the business and have adjusted production schedules accordingly to maximise availability.
• We have optimised the movement of already held buffer stocks between our UK and EU facilities.
• Those materials imported from mainland Europe and non-EU countries come via a well-established process with robust supply chains and we are working closely with our key suppliers to safeguard these supply chains to ensure continuous availability.
• We are encouraging our customers to review their stock levels and ensure orders are placed ahead of normal timing to protect against delays.
• We have spoken to our key customer base detailing our current approach to Brexit and to detail our current lead times, estimated customs delays, and to ask them to consider their forecasted needs and stocking any specific items for them and their customers.
• We are continuing discussions with our key Freight Forwarders to mitigate the risk of customs delays, including reviewing alternative routes into the UK and preparations for increase in customs administration, and are working with providers in creating potential software solutions to assist.
• Our Brexit steering committee are continuing to review the political landscape, consult with customers and suppliers as well as industry peers as to the best way to mitigate the negative effects of Brexit.
• We are constantly updating our analysis of the financial impact of a no deal Brexit, including increased duty and tariffs, increased cost of freight and customs administration, foreign exchange fluctuations and are looking at ways to mitigate this to ensure minimal impact on our customers.
• We are also monitoring any travel issues for our employees during and after a no deal Brexit.

We recognise that many of our customers may have concerns. We would like to assure you that we are taking all reasonable steps to mitigate risk, where this is within our control. We will continue to review our position as more information is provided by the UK Government.

We encourage any of our trading partners and related companies to make contact with us if they have any direct concerns. We hope the measures outlined above gives you some reassurance that we have plans in place to mitigate any negative impact, as far as possible, but if you have any further queries, please do not hesitate to speak with your usual point of contact.