Uncertainty surrounding Brexit affects all publishers shipping to European Union and UK customers.
46% of our shipments go to the EU and are therefore subject to this uncertainty. 54% are entirely unaffected, whatever the outcome.
Assessing the uncertainty, our opinion is broadly unchanged from before: a smooth transition with lots of notice of change remains the most likely outcome. The possibility of a no-deal (sudden) Brexit has increased but it remains unlikely.
Any likely deal will see our EU shipping services continue much as they are. A sudden Brexit would cause inevitable disruption, but we expect it would be relatively short-term and Kixto is adaptable and well-placed to respond rapidly with our contingencies.
Background and recent Brexit developments
- In March 2017 the UK officially began “Article 50” proceedings to leave the European Union.
- The current deadline for agreeing the UK’s Withdrawal Agreement is 31 October 2019 (extended from March 2019).
- The UK Parliament repeatedly refused to approve the Withdrawal Agreements negotiated by Prime Minister May. This led to her resignation on 7 June.
- New Prime Minister Johnson argues that the EU will not change its negotiating position unless it believes Britain will leave on 31 October otherwise.
- Today, 6 September 2019, Parliament enacted a law to remove the threat of no-deal by requiring the Prime Minister to ask the EU to extend the Brexit deadline to 31 January 2020 or beyond if no deal is agreed by 19 October. The EU has indicated it will agree to this extension.
Members of Parliament appear to have prevented a no-deal Brexit before 31 January 2020.
Both main parties want a General Election and this will probably happen in November. The extraordinary circumstances make the result and the future direction of Brexit hard to predict but most paths lead to a deal of some sort.
A sudden Brexit would cause inevitable disruption, but we expect it would be relatively short-term and Kixto is adaptable and well-placed to rapidly respond with contingencies.
- the various opposition parties (who collectively have a majority) organise themselves into a cohesive “government of national unity” to resolve Brexit, either with a deal or by cancelling it. This type of government would form before October 31 and could theoretically continue until May 2022 without a General Election;
- the Prime Minister finds a way to defy Parliament and leave the EU on 31 October.
Kixto is in discussions to partner with EU counterparts, who will face the same problem in reverse in the event of a no deal Brexit, to pool capabilities.
If you are planning future projects, allow plenty of extra time to deliver EU orders. We suggest an extra month.
We cannot predict our future shipping costs and the possibility of additional customs charges. Consider forewarning customers of the possibility of extra costs beyond our existing rates and collecting shipping charges when you are ready to ship (e.g. through BackerKit). We will use our insight into the business of shipping to mitigate additional charges and offer advice on additional customs and bureaucratic burdens in the event of no deal.