Hi All first time poster on the forum.
I work in finance for a UK company with a £50m turnover. I am currently trying to do what those thousands of ads and emails are telling me to do: prepare for Jan 1st. Heres what i know so far about the implications:
1. We have approx £1.5m of working capital (cash) tied up in stock and have done for the last 18 months and will continue to do for at least the mext 12. This cash could have been used to expand our business or pay off debts
2. We have spent about an additional £100k on additional storage of this stock which will probably go to £200k before this ends
3. We have invested about £50k into changing out IT infrastructure to handle the changes to customs, VAT and logistics. But we know there are still changes to come but HMRC or any other government department is unable to inform us of this. To give you an example we will be required to have an EORI number for NI from Jan 1st, these dont currently exist and will be only sent out by post bt HMRC on or around Dec 16th!!! So we have to try to hope to get it by Dec 18th i guess and somehow implement that into our system over xmas and new years.
4. We have spoken to our logistics providers regarding transportstion into UK. Their expectation is about a doubling of transportation costs so approx £150k extra cost next year. The reason for this is the additional wait times at ports and additional declarations that will be required, the reduced transport capacity because of this and the reluctance of transport companies and drivers to go to the UK instead of elsewhere for easier money.
5. The excise duties for getting our stock in will cost an additional £25k -£50k per annum
6. We now have to complete customs devlarations on export from EU, Import into UK & when we move product from UK to NI. The cost of getting someone to complete this paperwork is about £10 per shipment. We expect this to cost the business approx £50k but possibly more
7. We use the CE quality mark for our UK products this ceases on Jan 1st and we will now need to register our products with MHRA as we are medical. The cost of registering our thousands of products is expected to be in the region of £100k. We also have to change our labeling in production which will cost about £25k
8. We are no longer part of GDPR and as data flows from EU to GB and we hold that data we have had to review how that will work post Jan 1st. This is also still not decided but it has already cost us £5k to get this legal advice on this and our terms and conditions changes that result due to brexit.
9.We have had to inform our customers, many of whom rely on current or next day delivery that this possibly will not happen and it may be up to 1 or 2 weeks to get stock to them. Were talking hospitals and pharmacies here, if paitent need arises we of course will try our best to fufill it but it simply may not be possible. We would in usual circumstances ship direct from the EU to the customer if our warehouse did not have the stock but this will be troublesome come Jan 1st.
10. We still do not know this is the end, in fact we expect it isnt, the internal cost of the project we havent quantified as in our staff time but i assure you it runs in the £100ks at this stage. Everyone is stressed, exhausted and angry at preparing, stop preparing, dont know preparing its ridiculous and im sure were not alone.
1.Brexit preparations have already cost us £500k
2.Government still cannot tell us what to prepare for despite the flashy ads and website
3. We are still unprepared