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Brexit

Supply chain certainty

The UK is scheduled to leave the EU on 31st January 2020. While the specific outcomes of Brexit are not yet known, with CHEP’s superior scale and depth of expertise, we are well positioned to support customers through any required changes and resulting periods of transition.

We have been proactively engaging our customers both in the UK and EU to ensure we can support them with their Brexit mitigation plans. We are are actively analyzing and preparing for any potential changes so that we will be able to serve our customers and industry in the future. Based on the different potential outcomes of Brexit negotiations, we are conducting scenario planning to more deeply understand the impacts and resulting actions we may need to take within our own supply chain and business operations.

We recommend that our customers identify how Brexit plans might affect their requirements - specifically in relation to pallet volumes and specifications - and let us know as quickly as possible so that we can work together to minimise any potential impact

How is CHEP preparing for Brexit

Political uncertainty remains very high. As we get closer to 31st January 2020, none of the potential outcome scenarios clearly has the highest probability of taking place. CHEP will continue to mitigate against a No-Deal Brexit in business-critical areas until a No-Deal Brexit is procedurally ruled out.  A No-Deal would introduce World Trade Organization (WTO) rules.

Since the Brexit referendum, CHEP has put a project plan in place to proactively minimize disruption to the business and our customers:

  • CHEP has appointed a Brexit Lead Director to coordinate all Brexit activities for the Company.  We have also set up a Brexit taskforce covering all key areas of the business and a Steering Committee overseeing progress and making business critical decisions. 
  • CHEP is actively working to raise awareness around critical supply chain impacts with various government and industry bodies. We will continue collaborating with our customers, our industry, and the UK and European governments in an effort to avoid negative impacts and unnecessary costs for supply chains, which could ultimately increase the cost of food and other goods for consumers. Specifically, we are focused on ensuring that the free and unencumbered movement of goods is facilitated, that unnecessary complexity and costs for supply chains, businesses, and consumers are avoided, and that environmental concerns are appropriately addressed. 
Preparing for Brexit
Preparing for Brexit

Find out more

  • Brexit Q&A

    Different forms of Brexit might have different consequences on future trade between the UK and EU. The two main scenarios we are preparing for are a Soft Brexit (some sort of Withdrawal agreement is passed) and No-Deal. Most of the efforts we are making in preparation for No-Deal will also help us be prepared in the event of a Soft Brexit.

    Download our Brexit Q&A

  • ISPM15

    ISPM is the International Standard for Phytosanitary Measures. ISPM15 is a global regulation intended to prevent the spread of plant diseases and pests through wooden packaging materials by requiring them to be heat-treated (HT). All wood packaging materials (WPM) moving between the EU and other countries are subject to official checks on a risk-targeted basis and must meet ISPM15 international standards.

    Download our ISPM15 spec sheet

  • ISPM15 & Brexit

    Currently, ISPM15 rules do not apply to pallets moved within the EU – and therefore do not apply to movements between the UK and other EU countries. The political fact that the UK is leaving the EU does not alter the scientific findings these rules are based on, so there are no factual grounds for new regulations to be introduced. However, there is a possibility that with Brexit, ISPM15 compliance will become a requirement for all pallet movements between the UK and EU countries. Pallet movements within the UK will remain unaffected and will continue as they do now. The standard is enforced in the UK by the Forestry Commission and they authorise the use of the ISPM15 stamps that have to be legible on pallets to be compliant.

    Download our ISPM15 Q&A

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