With BREXIT implications very much back on the agenda, BHETA hosted a webinar on the very latest news on import / export considerations, courtesy of BHETA Business Service Provider, logistics, supply chain and freight company Dachser. The key outtake of the event, which took place on 21st October was the need for sales teams to be negotiating now, alongside purchasing, operations, finance and administration.
Carolyn Hough, DIY & CHEM Business Development Manager at Dachser outlined the importance of all parts of the corporate team to be working together ahead of the result. Explaining that the adoption of which Incoterms was most advantageous to the seller (EXW / FCA) and buyer (DDP) respectively, it was crucial that all parties were involved in any decision.
The potential outcomes in the event of non-engagement were that retailers could potentially hide behind long standing contracts putting risk and extra work on suppliers, and sales teams will agree too easily with what the retailers want to ensure relationships. Neglect of detail at this stage could mean that operations and finance must implement process changes with no chance of costs being recouped.
Another area of potentially huge financial impact explained Carolyn was not knowing the WTO duty rates for products, or not knowing the individual VAT rate per export country. She stressed that all suppliers should have a financial plan to recoup the VAT. One consideration was whether suppliers had physical entities in their export targets or VAT entities in each country with deferment accounts in place. Without this cashflow would suffer from the inability to recover VAT. On the other hand, having to route all goods via specific VAT entities could impact lead times. Customs formalities and additional administration will also add time and money – another reason for sales be in talks with customers about potential Incoterms and for supplier companies to be in talks with carriers to investigate what they can offer in terms of support.
“Many aspects of BREXIT remain unknown when it comes to the details,” said BHETA’s marketing manager Steve Richardson, “so knowledgeable advice on some of the practical implications and what actions industry suppliers should take now is invaluable. It’s great that a BHETA service provider like Dachser can provide real insights.”
A copy of the webinar is available from Nicola Adams of BHETA Member Services Team on 07946 078566, or alternatively, email on email@example.com.
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