Introduction
The end of the Brexit transition period is fast approaching. There is still a significant amount of uncertainty for businesses, particularly as a UK-EU trade deal has not yet been reached. Whether or not a trade deal is agreed, businesses will face significant changes from 1 January 2021, which will result in a range of legal issues.
There are a range of steps businesses can take now to identify and minimise risks in the no-deal scenario. It is also possible that, whatever the level of preparation and planning within the business, some issues will appear and need to be rapidly dealt with if and when a no-deal exit takes place. Our experienced specialists are standing by now to assist with the planning work which can be undertaken in advance to prepare for no-deal, and will be on call to provide reactive advice to deal with emergent issues should they arise if no-deal trading becomes a reality in January.
Our inter-disciplinary team of experts draws on skills across the whole range of legal areas likely to be relevant – from contract and supply chain, to regulatory and compliance, through to IP, HR and data.
Supply chain
Inputs
To the extent third party goods are fed into the supply chain (for example packaging), do those contracts give the required flexibility? Is there capacity to stockpile if required? We can assist with audits of third party supply contracts to assess risks and determine what levers are available.
Are any of those goods sourced from the EU, or contain component parts sourced from the EU, and if so is that likely to cause delay?
If existing contracts do not give the comfort or flexibility required, we can assist with renegotiations where possible.
Logistics
Contracts with 3PL providers are likely to be key to any business moving goods between the EU and the UK. WM can assist in auditing those contracts, establishing crucial details including those listed below, and assessing whether existing contracts provide mechanisms for driving changes.
We can assist with renegotiations if current 3PL contracts do not give the comfort or flexibility required.
Warehousing/Ports
The potential for delays at ports has brought warehousing and port capacity into sharp focus.
If current warehouse capacity is an issue, we can assist with understanding whether existing warehousing agreements provide the ability to expand, and in negotiating new agreements or expansions where possible.
Capacity constraints, particularly at shortcrossing Channel ports, is causing some businesses to work with 3PL providers and port operators to look at alternative routing through other ports. Where this is an option, we can assist with negotiating capacity and port services agreements.
Customers
The potential for delays at the border and the potential for tariffs to be applied on goods imported into the UK raises the downstream question of how these might flow down to endcustomer relationships. We can assist with auditing customer contracts to understand what flexibility may be available in the event of delays and to determine whether there are any contractual mechanisms by which additional costs (whether tariffs, storage, transportation or administration) could be passed on.
If you anticipate that legal bandwidth to undertake any necessary renegotiation of your supply chain contracts is likely to be an issue, we would be happy to discuss providing a virtual secondee to assist.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
