Dear all,
As a business, Colart and its board pay close attention to all Brexit discussions and developments.
In order to anticipate the consequences that could be brought by the situation, whether a deal is found between the UK and the EU or not, all business functions have plans in place, and Colart will make sure to adapt and best serve our People, as well as our Customers and Consumers.
We will communicate regularly once the UK Government takes final decisions to ensure clarity and transparency.
Should you have any question, please email news@colart.com.
GENERAL INFORMATION
• Find general information and answers to anything related to Brexit on this BBC article (published on 21st January 2019)
• Click here to read about travelling information in case of a no-deal Brexit.
OPERATIONS
Logistics: The logistics team have been working with our carriers to pre-book space and evaluating alternative shipping locations should the need arise.
Procurement: The regulatory team in combination with the procurement teams have been evaluating key risk items that are sourced both in the UK and in Europe and are securing supply or alternative sources.
This is an ongoing initiative.
FINANCE
Finance Business Model: Our current business model includes a Brexit-relevant complication in that CIHL (a UK company) ships product direct to customers from Le Mans (a warehouse within the EU). This complication ceases when Project Vanilla goes live (the outcome of Project Vanilla will be that product will be invoiced directly from the manufacturing companies to the distribution company, with CIHL no longer part of the product invoice flow).
Guidance on the “rules of the game” post Brexit have yet to be issued by either the UK or French governments although in the period between the UK’s exit from EU and Project Vanilla go live (expected to be circa 3 months, based on exit date of 29th March) we believe CIHL will need to appoint a French fiscal representative which would file its French VAT returns in order to continue to ship products from within the EU. This process is under way.
Border duties: It is possible that either one or both of the UK and EU will impose duties on product flows between the UK and the EU (Colart moves product both ways). It is also possible that duty rates from the UK to Rest of the World will change once the UK is outside the EU.
Currency Rates: they will continue to be volatile until the full ramifications of Brexit have been established. This could take some time post-Brexit.
PEOPLE
Residency status for EU citizens living in the UK: Our understanding of the draft withdrawal agreement published by the government is that there is going to be a transition period governing residency status in the UK. During this transition period and before 31st December 2020, EU nationals already living in the UK will be required to make an application to the Home Office for permanent residency rights. EU nationals entering the UK during the transition period may need to register and apply for what is referred to as pre-settled status with five years of continuous residence in the UK leading to settled status. We have been advised that the government has committed to providing a registration process that is both simple and user friendly via an online portal or mobile app.
Supporting our People: Colart will of course support our people with this process and as such, to help our people fully understand the rules, we have organised for external immigration lawyers to run an immigration workshop on 21 January at the Head Office. This workshop has given people the chance to ask general questions about both the rules and application process with the opportunity provided for follow up individual sessions to those who needed to discuss personal circumstances.
Best Regards,
Dennis
CEO