GG. wrote: Mon Jul 09, 2018 7:52 pm
Orange Cola wrote: Mon Jul 09, 2018 7:44 pm
Currently the commodity is produced in the European plants because it's the only way we can import the commodity tariff free and we can nip over with a couple of forty footers twice a week and bring it back.
Can't do that any more when we exit.
Hang on a minute - you're talking about imports again. Are you assuming that whatever it is that you're talking about will have a punitive tariff slapped on it by the UK when we leave - has that been posed as a definite? I'm asking you a genuine question.
Also, the way things are heading, with TM's formulation you needn't worry about it because we won't be leaving that tariff free zone (or indeed really Brexiting).
The only way it won't have a tariff on it is if TM gets her plan bought off as you describe. If not the following countries will want tariffs because it massively benefits their domestic manufacturers by knocking out a major competitor, so why wouldn't they follow through on their threats of imposing import tariffs:
Spain
France
Sweden
Germany
Poland
Romania
Austria
Italy
Worst scenario is the tax the commodity going out the EU, we impose a reciprocal import tax, then we pay tax again sending the final product back to the EU to be sold.
We do assemble in another country which is outside the EU, so I can outline that for you. We can set up the production line in the U.K. and abroad in country B at the same time. We can and do go through commisioning at the same time. However, because we have to export the commodities abroad to country B because they won't let us export the finished product because they realise its hurtful to their economy and employment that way, we have to send commodities in containers on a ship. You can't fly them, it wouldn't be economical. Once at country B we have to wait for their port authorities to process the admin and clear the commodities ensuring the right tax is paid. Then we can ship them to the production plant and start assembling. That process from sending the commodity in the U.K. To the getting it on an assembly line takes six months. SIX MONTHS. That whole market is lagging six months behind the others because you can't (legally) import any faster. That's six months of stock I've got tied up on a boat, in a warehouse, sat on a dock just waiting for the exchange rate to fluctuate merrily and a whole team of admin people employed to just do admin. I can't possibly do that for each country we have a trade agreement with.