United Kingdom – Brexit deal finally completed
Published: 13 Jan, 2021
After a build-up of over two years, the Brexit deal with the E.U. was finally agreed, meaning that the United Kingdom is no longer part of the European Union. With what is going on with Covid-19 in Europe, the deal was somewhat overshadowed, which perhaps was a good thing and just maybe helped close the deal. The final result is good news for exporters from the UK, as it means there will not be any duties applied to hides imported into the E.U from the UK. The thought was that without a deal, any duties applied would have been deducted by tanners, therefore reducing the returns to suppliers. However, all the documentation, clearance costs and extra freight charges still apply. In the short term, suppliers will be stuck with these costs, but in the longer term, will have to try to account for these either in the sales price or purchase price. At the moment, both are hard to do. It will probably mean that in the long run, it will be the farmer who will pay. Extra costs are rather open-ended as some are time-constrained: any shipping delays for instance will result in higher charges to suppliers. Some suppliers are planning to send their first loads to Italian tanners as from next week, so only then will they find out the true picture of the new systems. The thought is, most sellers will be waiting before offering. Some have sold to China for January to make sure shipments go smoothly and to avoid stocks sitting around. Any offers will be at higher levels to test the market and account for our higher freight costs. The thought is that most hide suppliers will be waiting before offering. Some have sold to China for January to make sure shipments go smoothly and it is not thought that anyone has unsold stocks sitting around. Any offers will be at higher levels to test the market and account for higher freight costs.
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