Brexit Preparedness Statement – January 2019

A scenario in which the UK leaves the EU without agreement (a ‘no deal’ scenario) remains unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome. However, given the current uncertainty and the possibility of a ‘no deal’ Brexit, we are writing to outline the ways in which Alchemie Ltd are preparing to ensure that our customers remain serviced with our products in the event of any potential disruption.

While the level of uncertainty regarding a final outcome is high we recognise Brexit will not just have an effect upon our company but our customers and suppliers across a range of important areas. Outlined below are the three main areas we have identified and our current level of preparedness for each:

1. REACH

In the unlikely event of a no deal, the UK have committed to ensure UK legislation replaces EU legislation via the EU Withdrawal Act, establish a UK regulatory framework and build domestic capacity to deliver the functions currently performed by ECHA. The legislation would preserve REACH as far as possible, while making technical changes that would need to be made because the UK has left the EU.

Alchemie Ltd are actively engaging with our suppliers regarding the potential change in regulatory landscape. Our suppliers are committed to continuing to meet the regulatory standards required within the UK regarding REACH, product labelling and product safety data where possible after the 29th March 2019.

2. Administration

After the UK leaves the EU, in the event of a ‘no deal’ scenario, businesses importing goods from the EU will be required to follow customs procedures in the same way that they currently do when importing goods from a country outside the EU.

Alchemie Ltd, are well versed regarding international trade. We routinely, import and export materials, both within and outside of the EU. As such we are already registered with an Economic Operator Registration and Identification (EORI) number which would be required to import goods from the EU under a no deal scenario. We already work with a number of customs brokers and freight companies who can support us with any extra requirements relating to customs clearance entries and exit and entry summary declarations.

3. Port Congestion

There has been a lot of speculation in the media about the possibility of congestion at British and EU ports in the immediate aftermath of a ‘no deal’ Brexit. The speculation is based on the expected necessity for additional paperwork to be completed on goods transiting through the ports, the worst case scenario being that there could be limited movement of goods between the UK and the EU for the months of April and May 2019.

Alchemie Ltd, are putting actions in place to maintain higher levels of stocks in the UK, based on market demand prior to the leaving date. Our suppliers are also supporting us with the availability of extra forecasted capacity for their products where possible. We are asking that our customers work with us by forecasting demand and plan in advance their order volumes for 2019 where possible Jan - June. Placing call off / forward planning orders will allow us to plan our production to try and ensure adequate stocks are already in situ and pricing is maintained for as long a period as possible going into Q2 2019.

We hope that this statement answers the main concerns that you may have during this period of uncertainty. If you have additional queries or would like clarification, please do not hesitate to contact us. We are ready to answer all of your questions.