The Rakem Group is a key supplier to many industries. We play a significant role in chemical processing, paint industry, textile fibres, paper, pharmaceuticals, cosmetics, inks, cement industry amongst many others.
The majority of our products are produced in the UK for UK customers. Where we do import products and raw materials from mainland Europe and non-EU countries, it is via a well-established process and robust supply chain. We have a number of workstreams considering the various Brexit scenarios and looking at alternative supply options and associated contingency measures to ensure that we will be prepared. We have, in the main, always held and continue to hold significant levels of stock on site and do not work to just-in-time processes. Our relationship and experience with our EU and non-EU suppliers is very longstanding and it is this know-how and capability which will stand us in good stead.
We do not expect that shipping to the UK in a post-Brexit scenario would be significantly more challenging than what is required today when shipping from non-EU countries. However, we are working on plans to mitigate any potential delays in customs clearance when importing products from European countries after Brexit. All our Group companies are registered for Transitional Simplified Procedures in the event of a ‘no-deal’ scenario.
The government is currently advising that in the event of a ‘no deal’ Brexit, all goods imported from the EU will be subject to the same requirements as third country goods, including the payment of duty. The government will determine and publish the new duty rates prior to leaving the EU.
As the majority of our products are produced and used in the UK, the associated impact of any additional costs related to the payment of tariffs/duties should only impact a relatively small number of our products. However, it will affect the market pricing of some products and the Rakem Group will also need to consider the effect of any exchange rate movements if there is a ‘no deal’ outcome.
Given our focus on UK production and supply, the Rakem Group is likely to be minimally affected by any changes to Freedom of People movement across UK borders that may occur as a result of Brexit.
We understand that many customers have concerns. We will continue to review our position as more information is provided by the Government.
At this stage there is no need to change your normal ordering pattern. If this advice changes we will inform you directly.