Guardian Glass Brexit position - Q&A
1. Will Guardian change the legal entity sells my product?
Guardian has tried to minimize impact to customers as much as possible, and consequently has no plans at present to change the legal entity that sells any product. Certain invoice layouts will include new UK VAT numbers, and in addition domestic VAT applied which is outlined more in section 2. Product quality or related customer service will not change. 3. We also monitor current Customs practice relating to trade over EU-UK customs border to ensure where ever possible that our customers will continue to receive glass without import duty cost.
2. Will I need to make changes to my procurement systems?
In some cases which are impacted by where the glass is sourced e.g. if from the EU, or where the glass is sold e.g. into the EU - specifically Ireland.
- Where our customers are supplied from our manufacturing site in Goole in the UK, and the product is sold domestically in either Great Britain or Northern Ireland there will be no change.
- Where our customers are supplied from our manufacturing sites in the EU, and product is sold to customers within either the EU or Northern Ireland, there will be no change.
- Where Guardian’s customers are sourced glass from our manufacturing sites in the EU, and the product is sold to customers in Great Britain, Guardian will import the product into Great Britain, and now sell via a GB VAT registration number and subsequently Domestic UK VAT will be charged. This is a change, as prior to 1 January 2021 Guardian is quoting an EU VAT number on these invoices with no domestic UK VAT charged.
- Where Guardian’s customers are supplied from our manufacturing site in Goole in the UK, and the glass is sold to customers within the EU, Guardian will import the product into the EU, and will sell to our customers via an EU VAT registration number. This is a change, as prior to 1 January 2021 Guardian is quoting a GB VAT number on these invoices.
- Specifically in the case of Irish customers which are supplied from our manufacturing site in the UK from 1 January 2021 sales invoices will contain a Irish VAT number and Domestic Irish VAT charged.
Guardian representatives will be reaching out to you in these cases.
3. Are we looking to modify Incoterms broadly? Will payment terms change?
In order to minimize any disruption and delay caused by the implementation of a hard border between Great Britain and the EU, Guardian will amend all impacted customer orders to Delivery Duty Paid (Incoterms 2020). Guardian will therefore take on both sides of the UK and EU import and export clearance. In the vast majority of terms with our customers DDP is already in place, but if there are any necessary changes to these terms [or payment terms], a Guardian contact will reach out to you.
4. Will my prices increase in the event of duties being incurred and other additional costs associated to Brexit?
Guardian is making every effort to optimize product movement between countries and minimize costs throughout the value chain. In some cases, additional costs—if any—may be passed to customers but based on the EU – UK Trade and Cooperation Agreement (TCA) in regard to the area of Trade Tariffs - Guardian is taking the steps to ensure that our glass supplied from our EU and UK manufacturing sites satisfies preferential origin criteria’s and will benefit from agreed zero import duty. In the event there would any impact a Guardian contact will reach out to you in the event to discuss the specifics.
5. Is Guardian leaving the UK? Will its UK facilities (Goole) remain competitive?
Guardian is making every effort to optimize product movement between countries and minimize costs throughout the value chain. Guardian continues to maintain strong operations in Goole, UK. In 2021, we will be making a significant investment in our Goole facility as the site will undergo a Cold Tank Repair of the facility furnace to ensure that we continue to supply high quality glass to our customers from our UK site. Further information will follow around the temporary supply chain changes this will entail for the duration of the Cold Tank Repair.
6. Will any of my Guardian contacts change?
No. Your customer contacts will remain the same as we continue our commitment to great service and mutually beneficial outcomes.
7. What is the effective date of change (for invoices, etc.)?
January 1, 2021
8. Can we expect any delays or disruption 1st January and the surrounding period?
Guardian is making every effort to optimize product movement between countries as a result of the UK’s exit from the EU. While it is our hope and intention to mitigate any disruption, we cannot predict the impact of external variables. We are committed to close communication during the transition to minimize potential disruption, if any.