Despite the final arrangements still awaited from the Government, SSP continue the ongoing preparations for the potential impact of Brexit.
As a seasoned importer of goods from around the world, most changes that will affect the relationship between the EU and the UK are already familiar to us. We already produce and provide the documentation necessary for imports and exports to non-EU countries that will probably now be needed between the UK and EU. The introduction of new financial software this year has facilitated the recording of all the necessary data required for export declarations for all stock items into one easily accessible location, speeding up the production of commercial invoices and export declarations.
We will continue to work with our existing delivery couriers and export agents to facilitate the distribution of goods to the places our customers require. If a trade deal has not been agreed by the end of the transition period, Incoterms or International Commercial terms, will be an important piece of information on the commercial invoices that will need to accompany shipments. They may also be needed if a trade deal is implemented, depending on the terms of the agreement. The Incoterms we will send the goods under will be agreed with you at the point of order, and we will work with you to facilitate the smooth export, import and delivery of your goods.
We have always used historical product sales data to inform our stock holding requirements and, to limit the impact of customs delays, we have increased our stock holding to help ease us through the Brexit transition period. We have increased our warehouse capability to facilitate this additional stock holding, and the introduction of inventory scanning software 2 years ago ensures our stock portfolio is constantly updated.
Approximately 97% of our access control products are currently sourced from outside of the EU, therefore our exposure to price changes due to the implementation of tariffs by the EU will have a limited impact on just a handful of products. Should these products be subjected to tariffs, then you will be notified of any price changes as and when needed.
More than half of our gate automation product range is sourced from within the EU, and we have been working with our gate automation brand partners, such as Roger Technology in Italy, to ensure our existing supply will not be impacted, should a trade agreement not be settled. Whilst a lot of the detail is still unknown, as a deal has yet to be agreed between the EU and the UK, we will continue to liaise with our suppliers and will of course advise customers should price increases due to tariffs or other charges be necessary.
We will continue to monitor Government changes and advice regarding the implications of Brexit and will continue to develop our planning accordingly.
Meanwhile, we hope you are all keeping well, and enjoy the seasons festivities as far as possible.
With seasons good wishes from us all at Specialized Security Products Ltd