Ishida Europe Brexit Update – April 2019
In November 2017, Ishida Europe Ltd (“IEL”) issued a Brexit statement confirming:
We will continue to conform to all EU legal and regulatory requirements
- There will be no increases in price because of the imposition of tariffs between the EU and the UK (goods will remain “in free circulation within the EU” from the customer’s perspective)
- There is security of supply across all new machines, spare parts and labour and this can be guaranteed for the normal timeframes of existing and future portfolios
Regrettably, in early April 2019, the final nature of Brexit is still no clearer, however we continue to stand by these pledges.
Giving due regard to the lack of clarity of the final outcome, we have been planning for the worst case “No Deal Brexit” scenario and at this juncture would like to update you on the work we have been carrying out to mitigate against any potential Brexit implications and thus ensure customers continue to enjoy the benefits of their investment in Ishida machines.
A key part of this is the opening of a European Distribution Centre (EDC) in Best, Netherlands.
This facility provides us with the capability to hold increased spares stocks within the European Community. Additionally, as some of our machines are manufactured in Japan, the facility provides a direct importation route for machines into the EU irrespective of the outcome of Brexit.
To ensure that we have the spares needed to support our installed base, we have also significantly increased stock holding of spare parts. Most of these additional stocks will be located within the Netherlands EDC, hence providing customers with constant service levels, irrespective of the final outcome of the Brexit negotiations.
In anticipation of the initial Brexit date of the 29th March this enhanced stock is now in place in the Netherlands and the EDC fully operational.
On 29th March 2017, the UK government triggered Article 50 which began a process for the UK to leave the European Union by April 2019 (so-called “Brexit”).
There is considerable uncertainty as the UK and EU have not concluded negotiations on the nature of the trading relationship post-Brexit. Indeed, even the timing of Brexit is not certain as there is discussion on transitional arrangements and how long these may need to be in place.
This uncertainty is unhelpful for our current and potential partners within the European Union and the UK. Within these uncertain times we would like to assure our partners that:
- Ishida Europe will continue to conform to EU legal and regulatory requirements;
- There will be no significant increase in prices because of the implementation of tariffs between the EU and UK; and
- There is security of supply across all new machines, spare parts and labour and that this can be guaranteed for the normal timeframes of existing and future portfolios.
Download and read our complete statement below.