Lidl orders suppliers to pay duties on goods crossing Brexit borders
Category: #retail  By Pankaj Singh  Date: 2019-08-19
  • share
  • Twitter
  • Facebook
  • LinkedIn

Lidl orders suppliers to pay duties on goods crossing Brexit borders
  • The company has asked the British suppliers to pay any import tariffs levied on goods crossing borders after Brexit.
  • The current company contract comprises a DDP clause.
  • Tariffs on food and milk are expected to be high.

Lidl’s Irish business has reportedly instructed the British suppliers that they are required to pay EU import charges levied on the goods crossing the Brexit borders. Apparently, as of now, no tariffs are paid.

The company’s current contracts with the dealers contain a clause stating that the goods must be transported with the charges paid.

As per the sources with the knowledge on the matter, Lidl has successfully held workshops with the dealers and suppliers to ensure that they possess the required information so as to avoid any commotion or disturbance.

Meanwhile, the German supermarket cited that all the current Lidl contracts comprise a Delivered Duty Paid clause. With an end goal to comprehend the degree of readiness of key United Kingdom providers, Lidl is discussing proactively with the suppliers and cooperating to determine any potential obstructions to supply.

For the uninitiated, the DDP clause implies that the expense of shipping the products, including duties on EU trades is the sole responsibility of the provider.

As per the World Trade Organization rules, the tariffs on EU exports are expected to drive into force automatically under the event of a no-deal Brexit. Moreover, it has been claimed that the tariffs on food such as beef, and milk can get higher. For some variety of beef, the tariff is 12.8 per cent plus 265 euros per 100 kgs for meat outside Europe. The average tariff for dairy products is over more than 35 per cent.

According to trusted reports, the various other supermarkets are also bringing into effect the deals similar to the supermarket’s agreement.

Apparently, Prime Minister Boris Johnson has focused on cutting duties on foreign products being brought into the UK, the duties for merchandise sent out from the UK to the EU are outside of his control.

Source credit: https://www.bbc.com/news/business-49389152



About Author

Pankaj Singh

Email: [email protected]   

Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

More News By Pankaj Singh

Australia retail industry in disarray with major slump in sales
Australia retail industry in disarray with major slump in sales
By Pankaj Singh

Australia’s retailers are reportedly facing a huge crisis of sorts, with the latest data depicting a massive fall in sales volumes. As the nation’s second-largest state enforces a lockdown to fight the ongo...

Leedy Dental Reveals Renovations and New Dental Implant Center
Leedy Dental Reveals Renovations and New Dental Implant Center
By Pankaj Singh

The Leedy Dental, the U.S-based comprehensive dental practice with expertise in full mouth rehabilitation and implant dentistry, has reportedly completed renovation work in its practice in Abilene, TX.  

...

UAE online marketplace Noon to enter the food delivery sector
UAE online marketplace Noon to enter the food delivery sector
By Pankaj Singh

Noon, an e-commerce platform operating in the Middle East, is reportedly planning to launch a food delivery marketplace with an aim to support the region’s food and beverage businesses during the COVID-19 pandemi...