Brexit Process | Updated February 9th, 2021

As you may know, on December 24th, 2020, the United Kingdom (UK) and the European Union (EU) agreed on a new trading relationship. The agreement came into force on January 1st, 2021.

This new agreement secures tariff-free imports and exports between the UK and EU if the country of origin can be demonstrated. As a result, there have been significant delays at the borders which impacted all importers and exporters, including Markem-Imaje. 
 
Markem-Imaje is taking proactive steps to reduce these impacts and avoid delays for our customers. We have increased inventories and order quantities with our UK suppliers and have pre-assembled printers. Based on the above, we expect to offset the detrimental impacts at the border and to get back to our standard lead-times between now and the end of February.
 

We are closely monitoring the progress of the current situation and will continue to take all necessary actions to ensure a smooth transition of our supply chain with minimal impact on your business.

 

Questions & Answers

To answer your most urgent questions, feel free to read below.
 
 

Does Markem-Imaje have a dedicated team in place to deal with Brexit consequences?

Yes, Markem-Imaje has appointed a team to assess and manage Brexit consequences. The team will focus on the following areas:
  1. Remain informed about the latest developments and outcomes of the Brexit negotiations.
  2. Secure Markem-Imaje’s supply by working closely with our suppliers.
  3. Pro-actively adapt our Supply Chain mapping to cope with any scenario.
 

How would Markem-Imaje qualify its global exposure to Brexit consequences?

Markem-Imaje Supply Chain is global: shipping to more than 130 countries in the world. Markem-Imaje has a deep and broad experience and expertise in managing import/export flows. Markem-Imaje has been present in the UK for more than 20 years. We have our own facilities on each side of the border, which is a strong asset to support any changes to come.
 

Has Markem-Imaje assessed all potential impacts of Brexit on its business?

With the information available today (since negotiations are still in progress), we have evaluated the main risks and potential impacts. We acknowledge that the main ones relate to potential delays at the UK/EU border, which could impact both our deliveries and our suppliers’ deliveries.
 

How would you describe Markem-Imaje’s overall strategy to handle Brexit?

  • Our plan is to build inventories both in the UK and in the EU before Brexit becomes active.
  • We will utilize our already-strong distribution platform, in cooperation with our transport partners, to secure border crossing, and limit impacts on lead-times.
  • We will maintain permanent communication with our customers, suppliers, and partners, to build collaborative solutions.
  • We will remain up-to-date as per the latest developments of the Brexit and adapt accordingly.
 

Has Markem-Imaje contacted its suppliers to evaluate their readiness to face Brexit?

Yes. It is an on-going process.
 

Does Markem-Imaje supply products that will be impacted by the Brexit?

Yes. We have raw materials shipping from/to the UK. We also ship finished products, spares, consumables, etc. daily to our UK customers from our different EU logistic hubs.
 

Has Markem-Imaje decided to deploy contingency plans?

Yes, starting with anticipating the increase in some inventory items.
 

Are those mitigations already effective? If not, when will they be?

Not all of them, but we are committed to deploying them before Brexit becomes active.
 

Does Markem-Imaje already have import/export experts in its organization?

Yes. We have raw materials shipping from/to the UK. We also ship finished products, spares, consumables, etc. daily to our UK customers from our different EU logistic hubs.
 

Are Markem-Imaje products already accurately identified to cross borders (HS codes, country of origin)?

Yes. Being a global provider, import/export-related material data is mandatory information we keep track of in our IT systems.
 

UK becoming a ‘third country’, is Markem-Imaje ready – if the need arises – to comply with new import and export customs declarations?

Yes. Being a global provider, we already have the tools and partners to cope with customs regulations. We are ready to adapt our procedures according to any new requirements.
 

With potential customs checks between the UK and the EU, there may be potential delays at the UK/EU border. How resilient is Markem-Imaje supply chain to potential border delays?

We work closely with a transport partner who is one of the leaders on the market. We are confident that they will manage those changes. Indeed, they use their own planes and infrastructures. We are in close and regular contact with them to ensure that they will support the move.
 

Is Markem-Imaje planning to increase its inventories?

Yes. We are facing uncertainty today regarding the output of the negotiations, and as an initiative to mitigate the risks, we do plan to increase some inventories as to have them across the border before Brexit becomes active.
Some products are not eligible to having advanced inventories. An example of this is equipment that is “assembled to order” which needs to be technically customized to a specific customer configuration. For specific cases like this, we will work with our customers to best anticipate their requirements, and from our side, to implement order priorities to reduce lead time impact.
 

Is Markem-Imaje planning to buy additional storage space?

We already have our own premises both in the UK and in the EU. Should we need to extend our storage capacity, we will use our logistic partner’s storage locations.
 

Does Markem-Imaje anticipate future changes in trade tariffs?

We are receiving advice from subject matter experts in relation to trade tariffs. In accordance with our terms and conditions, we reserve the right to increase the price payable for products that have not yet been delivered to include increased costs and duties.
 

Is there a specific email address to reach you if I have questions?

Please send an email to brexit-customer@markem-imaje.com.

 

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