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Update on the Powrmatic Brexit position - Sept 2019


In light of the uncertainty surrounding Brexit, we are doing all we can to mitigate any potential risks which may arise. The UK’s decision to leave the European Union (Brexit) means that we must meet the challenges that this decision will bring. In order to ensure business continuity during this period, we have put into effect a number of strategies with the aim of making the transition away from EU membership as seamless as possible for both Powrmatic and our valued business partners.

In recent months, we have continued to work with our customers and supply chain partners to prepare for Brexit day and life after Brexit. We have been developing our contingency plan to ensure supply continuity in the event of a hard Brexit and the likely resulting confusion and delays at borders. To ensure continued effective operation of manufacturing facility, we are also developing a detailed plan for building an appropriate level of critical raw material and standard product stock, thus providing further assurance of continued supply to our customers.

There is still considerable uncertainty as the Brexit negotiations take place and therefore our plans are intended to allow for a degree of flexibility. As the negotiating deadline for exiting the EU looms closer, we recognise that a number of parties will understandably be concerned; these include customers and suppliers. We have considered the potential impact of changes to Customs borders, tariffs, costs and administrative workload, as well as the likelihood of exchange rate volatility. We have researched the implications of potential tariff and duty changes, as well as possible increased lead times. We have undertaken a review of our supply chain to mitigate the impact of any major changes following Brexit and accept that policies and processes may require amendment in due course.

As a Supplier to and purchaser from Non-EU countries around the world, Powrmatic is well versed with the demands of international trade. We have every confidence in the skill and expertise of our administrative staff and their understanding of export procedures to be able to cope with and adapt swiftly to any changes necessitated by Brexit.

It’s also worth noting that since 2014 we have had full Authorised Economic Operator (AEO) accreditation. Many companies are now seeing the potential value in being AEO-accredited to help speed up the approved movement of goods across international borders. We are confident that the AEO experience we have built up in recent years will add another layer to the security of our supply chain in the months and years to come.

Additionally we widely employ the services of forwarders and agents who also have “Approved Economic Operator” status.

Powrmatic will continue closely monitoring all updates from HMRC (Her Majesty’s Revenue & Customs) regarding the possibility of a ‘No Deal’ Brexit and will undertaken additional Customs training to enable us to deal with the re-introduction of Customs declarations on goods moving between the UK and the EU. By undertaking these actions Powrmatic anticipates protecting customer service levels as we navigate through the first weeks and months of Brexit.

We understand that individual concerns and priorities may differ depending on the nature of the business, albeit that most interest clearly lies in the impact of product availability, lead-time and cost implications. With this in mind we would encourage open dialogue and information exchange with your usual Powrmatic contact person, who will be happy to note, investigate and act upon any specific query or information request.



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