Following the UK leaving the EU from the 1st of January 2021, we are receiving a growing number of inquiries from customers, many of whom have developed feedback forms, each requesting differing levels of detail.
Will Silmid pass on any additional cost from duties and tariffs as price increases to its customers?
As with all cost increases, Silmid will always seek to minimise the impact on our customers. Where customers are choosing Incoterms DAP we anticipate that our preferred carrier partners will pass on the costs of additional documentation required for customs clearance. At this time we have not had any rate changes confirmed, Silmid will work to minimise the impact on customers as much as possible.
For customers using Incoterms FCA we strongly advise you contact your freight partner and understand the implications of new customs requirements for shipments into the EU.
Will lead times increase because of Brexit?
Any additional customs processes required at UK borders may have repercussions on the transit time for goods into and out of the UK. Silmid’s supply chain management team will be working to ensure we minimise any such delays and reduce any impact this may have on our customers.
Q3. Can Silmid guarantee that the products customers currently buy will still be available to purchase in the UK after Brexit?
Silmid is continuously reviewing and adjusting its product catalogue, however, there are no plans to make any portfolio changes as a direct result of the Brexit process. Should the availability of any products be affected by Brexit, this will be communicated downstream to the relevant customers as soon as it becomes apparent.
Q4. Is Silmid able to supply customers in Northern Ireland?
The Silmid team has been engaging with customers in Northern ireland and can include the required XI number on Commercial Invoices to accompany shipments. Our carrier partner, Fedex UK, has been able to deliver consignments that have the XI number on the paperwork. We are also signed up to TSS.
Q5. If freight costs go up after Brexit, would this mean price rises for customers?
Silmid operates within a competitive environment and will always work to minimise costs and, wherever possible, limit the impact on customers through price increases.
Q6. If Sterling falls significantly against the US Dollar and/or the Euro after Brexit, would this affect Silmid's pricing to UK customers?
The pricing team at Silmid are always looking to provide competitive pricing to customers and we will be monitoring carefully any changes to exchange rates. Customers on fixed price agreements or agreed contract terms will be protected from changes for the life of their agreements. On renewal all relevant factors are reviewed when agreeing pricing agreements.
Q7. Could Brexit have a negative impact on Silmid's service levels to customers?
Silmid constantly strives to provide the highest possible service levels for its customers. Brexit will not change this. We are working with customers to select the most appropriate incoterms for their shipments and can provide additional support where needed.
Q8. Does Silmid have an EORI number?
Yes, Silmid does have an EORI number and we have put additional resources into our export compliance team to ensure we have adequate coverage for any changes to regulations or procedures that come into effect post Brexit.
Q9. What are our obligations as a downstream user of an existing authorisation held by a UK or an EU/EEA company?
- If you are using the material in the UK, then you need to report usages to UK HSE direct.
- If you are using the material in the EU, then you need to report usages to ECHA direct.
- If you are selling the material(s) into UK sites then you need to get your UK customer to report usages into either Consortium.
- If they are selling into the UK then ask them to register their usages with UK HSE.
- If they are selling into Europe then ask them to register their usages with ECHA.
- Downstream users of an existing authorisation have specific obligations under the REACH Regulation and according to the conditions attached to the authorisation.
Article 66 of the REACH regulations ((EC) No.1907/2006) requires downstream users to inform ECHA of their use. Further information about the downstream user notifications process can be found at: http://echa.europa.eu/support/dossier-submission-tools/reach-it/downstream-user-authorised-use
For enquiries or further help please refer to https://echa.europa.eu/support/helpdesks
UK users must inform the UK HSE, by 01 March 2021 of their use and compliance to the authorisation conditions by submitting information through the HSE web pages:
https://www.hse.gov.uk/reach/authorisation127h.htm
We also ask our customers to complete an SVHC declaration which and clarifies the applications and limitations of the material being purchased and also explains their obligations as a downstream user.
Further Support
If you are based in the EU and require any further support or have any additional questions please contact your Account Manager or contact us via our website.
There is more information available on the UK Government website and a number of aerospace trade bodies are communicating and advising on how to implement and manage the changes that are now in place.