• 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