The UK electronics supply chain is highly reliant on timely shipment of products across EU and international borders. As things stand there are virtually no tariffs (import duties) imposed on electronic components within the EU or internationally.
“So leaving the customs union should not present a problem,” Adam Fletcher, chairman of the ECSN, tells Electronics Weekly.
There may be a need to revise existing processes for handling VAT in EU, in effect VAT deferment.
“Most of our members are already registered as Authorised Economic Operators within the EU and have approved IT systems and trusted relationships with HM Customs and Revenue in the UK and their equivalents in other EU states,” says Fletcher. “I’m confident that any changes required by our exit from the customs union will be negotiated and managed quickly.”
The situation inevitable will require further clarification over the coming months.
“The message for all in the electronic components supply network continues to be to remain focussed on your customers’ needs and when appropriate collaboratively engage to manage any changes as they occur,” said Fletcher.
Last month, the ECSN reported that the ‘Brexit Referendum’ has had a positive effect on the component distribution market.
Despite the uncertainty created by the referendum vote in the summer, the distribution market in the UK is likely to show a better than expected 3% growth in 2016, according to ECSN figures.