Honeywell, like other companies doing business in the United Kingdom (UK), has been carefully reviewing the effects of Brexit on our operations, and across our supplier, customer and partner bases in advance of the UK’s anticipated departure from the European Union (EU) on October 31, 2019.
Based on the latest political developments in the UK, we believe that the chances of a no-deal Brexit have significantly increased. In case of a no-deal scenario, the UK will leave the EU on October 31, 2019, without a contract regulating future relationship between the UK and EU. As a result, supply chain interruptions at the EU-UK border are considered to be very likely.
The majority of our products are delivered to EU customers from our distribution centre in Motherwell, UK. This distribution centre is AEO-certified and, as such, benefits from fast tracking through customs controls, as well as a significant reduction in the frequency of physical and documentary checks at the border. While this will go a long way towards mitigating any impact of a “no-deal” scenario, we are also reviewing our supply chains to facilitate direct shipment of some of the products from our factories in China, Mexico and the US to customer locations in EU or, alternatively, to route through distribution facilities in the EU, in order to help minimize any impacts due to a no-deal Brexit. This will also avoid any border delay or incremental export tariffs from UK into EU.
As an additional layer of mitigation against potential delays at the border, we request that you plan and communicate your November orders to us well in advance so that we can pull forward demand to ensure continuity of supply. Our customer service teams will contact you concerning this and schedules will be adjusted accordingly.
We thank you for your contribution to our efforts to ensure we regularly continue meeting our customers’ needs.
Please contact your local account manager if you would like to discuss further or send your queries to us.