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Brexit and your parts supply chain:
hope for the best, prepare for the worse

With still no agreement between the UK and the EU, every day brings us closer to the dreaded deadline of March 29, 2019, and each day, the fear of a “hard Brexit” increases.

And while many businesses on both sides of the Channel wonder what kind of tariffs will be imposed on import/export after the deadline, another issue will have great consequences on manufacturer goods: rules of origin under international trade deals.

Already, some governments like in the Netherlands, as reported by Sky News, are advising manufacturers to find alternative sources “if a large part of your product consists of parts from the UK.”

As reported in iNews (see article below), “to qualify for EU free trade deals, normally at least 55 per cent of a product’s parts must come from an EU country.”  As the UK prepares the EU in less than 8 months, the impact on spare parts sourcing and supply chain will be tremendous.

Time to hope for the best, but prepare for the worse.

Full article: https://inews.co.uk/news/world/netherlands-brexit-avoid-british-car-parts/

 

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