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UK firms told to stockpile goods in warehouses under no deal Brexit

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European Union's chief Brexit negotiator, Michel Barnier attends a media briefing with Britain's Secretary of State for Exiting the European Union, Dominic Raab, after a meeting at the EU Commission headquarters in Brussels, Belgium August 21, 2018. REUTERS/Francois Lenoir/File Photo
European
Union’s chief Brexit negotiator, Michel Barnier attends a media
briefing with Britain’s Secretary of State for Exiting the
European Union, Dominic Raab, after a meeting at the EU
Commission headquarters in Brussels, Belgium August 21,
2018.

Reuters / Francois
Lenoir


  • The government has told British firms to consider
    setting up warehouses to store goods in preparation for delays
    caused by a no deal Brexit.
  • Failure to secure a deal would create huge delays due
    to new checks on customs and regulations.
  • The government has published the first batch of notices
    about no deal Brexit preparations.
  • Elsewhere, the notes warn that credit card costs for UK
    customers could increase, and say tobacco companies would need
    to create new packaging for cigarettes as the EU owns current
    copyrights.
  • The notes did not make lengthy reference to the rights
    of EU citizens, the Irish border issue, or the potential need
    to stockpile medicines.

LONDON — The UK government has told businesses who transport
goods to the EU to consider setting up warehouses for storing
goods in preparation for delays caused by a no deal Brexit.

In its first batch of notes on no deal preparation, the
government says companies that sell goods to the EU should
consider “warehousing” as failure to secure a deal would create
delays through new checks on customs and regulations.

Leaving the EU without a deal would unleash an array of red tape
on UK exporters, including declarations on customs and
safety, the notes say. British companies would also need new
licenses to continue exporting to the continent.

Lorries transporting goods between the UK and the EU currently
take around 2 minutes to be checked at British ports. However,
new checks would create longer delays, and business should think
about acquiring “software” and working with freight and logistics
companies to ensure their supply chains are able to cope, the
note says. 

‘Sensible, measured, and proportionate’


Dominic Raab
Britain’s Brexit Secretary
Dominic Raab.

Reuters

Brexit Secretary Dominic Raab unveiled the government’s first set
of no deal Brexit notices at a press conference in central London
on Thursday morning. 

Raab called the measures a “sensible, measured, and
proportionate approach to minimising the impact of no deal on
British firms, citizens, charities and public bodies.”

But he said in the speech that a no-deal scenario could
prevail if “the EU doesn’t match our ambition and
pragmatism.” 

The notes, which contain 25 of 84 no deal Brexit technical
notices the government is set to publish, outline Theresa May’s
plans to stick to EU rules in areas like medicine and blood in
order to prevent chaos in the NHS.

Correspondence between NHS chiefs leaked to the press this week
warned that leaving the EU without a deal would put UK hospitals
at risk of drug shortages and make the spread of disease more
likely. 

Elsewhere in the notes, the government says that credit card
transactions between the UK and EU would increase, meaning online
shopping will become more expensive under a no deal
scenario. 

Tobacco companies will be required to create new packaging for
their products as the European Commission owns the copyright for
pictures currently printed on cigarette packets. 

The notes did not make significant reference to a large number of
key risks for a no-deal scenario, including the rights of EU
citizens in the UK, the potential need to stockpile medicines,
and the dangers associated with a new border on the island of
Ireland would be managed.

More follows…

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