- JPT Team
Live Blog: Brexit - Deal or No Deal
We taken the decision to keep this Brexit blog live with regular updates for our cardboard tubes customers. Our COVID19 blog was so popular, so whether you buy industrial cores, label cores, carpet tubes, or postal tubes we'll keep you updated.
Last Update: 14:10 on the 10th of December 2020.
Summary of last changes: Detailed commentary and Q&A.
Q:Have you considered both a "No Deal", and "Deal" BREXIT?
A: Yes, We've been planning on a no deal, with a deal just simplifying our plans. We've been importing our raw materials from outside the EU on WTO rules for a few years, its given us quite a bit of experience and all of the required numbers, registrations and guarantees to import.
Q: Are you expecting any supply impact on your cardboard tubes customers?
A: No, We have already begun our stock build of raw materials. We will hold enough stock through December and January onwards so that we should be protected from low to medium disruption at UK ports. Our UK sourcing opportunities will protect us from high disruption.
Q: Level with us, in terms of paper tubes, whats the worst-case scenario?
A: We are very prepared. Importing significant amounts of raw materials from outside the EU on WTO rules is quite unusual in this industry. Actually, we think we are the only cardboard tubes manufacturers who have been doing this. That has meant we already have strong relationships with customs agents, and we have important facilities such as Deferment accounts with HMRC, along with certain approvals. For us, a no deal Brexit means we just treat our European suppliers like we do our non EU ones, a little bit more paperwork but easily manageable. However, you asked me worst-case scenario. Our biggest concerns focus around two points: 1 - If a Government system fails, such as the CHIEF import/export system, or the EU equivalent, this could cause severe congestion at all UK points of entry. 2 - Congestion at ports. This currently is happening to a certain extent due to Brexit stock building. In January, the volumes coming into the UK should return to normal. Our concern is around other organisation who are not Brexit ready sending trucks/containers to ports that don't have the correct documentation to clear customs. When it comes to import and export, we know our MRN's from our EXS's and ENS! Worst case, our imports/exports might be delayed, hence why we are keeping more stock. If the delays were to stretch from say, 3-5 days to 2-4 weeks, we could then start to some shortages, which we would fill from UK & Non EU suppliers.
Q: As a JPT customer, do I need to stock up?
A: No, We have enough raw materials to cover low to medium disruption, with plans should we face high disruption. This will enable us to keep you in supply of label cores, tape cores, postal tubes and carpet poles! We are actively asking our UK customers not to stock up, it will probably just make disruption worse! I think we can all remember the COVID toilet roll situation!
Q: I'm a JPT customer based in Northern Ireland, Do I need to do anything different?
A: Well we've already been in touch with you over the past few months. Please send us your XI EORI as soon as possible. We are fully registered with the governments trader support service which will facilitate the movement of goods into Northern Ireland. We've already adjusted our paperwork to reflect the changes needed. As you'll already know, we have advised our customers in Northern Ireland to hold more stock. We don't expect delays to mainland UK customers order, however Northern Ireland could face some longer lead times.
Q:Do you expect my cardboard tubes, such as industrial cores, tape cores, label cores, postal tubes, or carpet tubes to face a price increase in the event of a no deal?
A:It's hard to say, however its something we have prepared for, and tried to buffer. FX (currency) wise, we have some forward hedging contracts in place means we should have some short to medium term price protection should the pound lose value against the EUR or USD. Should the pound remain weak for a sustained period, then price increase are likely, however its an ever changing picture due to COVID-19 and the availability of waste paper. We've put some protection mechanisms in place, but we can't rule price increases out.