Brexit Update

4 January 2021

On 1 January 2021, new rules and procedures came into effect for the movement of goods in and out of the 27 EU countries and the UK.

Important: If you are an Eastern Europe customer or an EU customer buying through Farnell’s export website you may need to set up a new vendor for Farnell. Click here for more information.

Extensive activity was undertaken to ensure readiness for the end of the Brexit transition period and minimise the impact on our customers both in terms of the service we provide and the way we transact from 1st January 2021.

Activity undertaken included:

Minimising impacts on our delivery times due to reduced free movement of products, goods and services across the UK/EU

We know that delivery times are important, and we have taken extensive actions to maintain the usual level of service you receive, including:

Working with our carriers to secure capacity on imports routed into the EU and minimise impact on delivery times so that we can maintain our usual delivery proposition.
Invested heavily in our in-stock proposition to continue to offer our largest in-stock range across our European distribution networks. Made additional short term investments in fast-moving inventory to lessen the impact of potential delays at the UK/EU border immediately after 1st January 2021. There may be some products where we have had to make changes to our supply arrangement and this may result in longer lead times.
Prepared our businesses to be ready to comply with new import and export procedures.

We anticipate that there may be a short period immediately after 1st January 2021 when some delays will be experienced as everyone adjusts to the changes in procedures for the movement of goods. We will let you know if we anticipate that your order will be impacted so that you have as much information as possible to help you manage your customer demands.

Minimising the impact on the way we do business with you

As shipments move across the UK/EU border there will be requirements for additional paperwork and procedures related to import/export of goods. We have engaged the relevant authorities to ensure we are ready and the impact on customers is minimised, including.

We have trained additional resources to enhance our existing skilled export teams.
The import process for all stock from the UK will be handled by Farnell. This means that customers will not be responsible administration or cost of customs documentation.
Stock supplied from our UK warehouse will be imported by Farnell into the EU through Germany, with our UK business acting as the importer of record. This means that we are effectively supplying our UK goods from Germany rather than the UK. If you buy from one of our EU based businesses, you are unlikely to experience any changes at all. You will continue to be invoiced in the same way by those businesses.
If you are an Eastern Europe customer or an EU customer buying through Farnell’s export website you will see a new German VAT number on our invoices for goods supplied from the UK. If you submit Intrastat these will be treated as arrivals from Germany. There will be no significant changes in the VAT treatment shown on invoices and we do not expect any significant delay to delivery times in the longer term. There will not be any change for goods supplied from our Belgian distribution centre in terms of process or invoices. Please note you may need to set up a new vendor for Farnell due to the change of VAT number. Click here for more information.

Maintaining a compelling proposition

We now know that goods moving between the UK and EU member states will not be subject to additional tariff and duty costs. Our aim is to ensure that customers receive a compelling and competitive price relative to our high service model.

Should you have any questions please refer to our Frequently Asked Questions below.

Should you have any other questions please contact your Farnell business partner or email our Customers and general enquiries mailbox - CustomersBrexit@farnell.com

Best regards,

Rob Rospedzihowski
President, Sales, Farnell EMEA

FREQUENTLY ASKED QUESTIONS

ACCESS TO PRODUCTS

What assurances can you provide in terms of continuation of supply?

We have warehouses in the UK and mainland Europe, and form part of a multi-billion dollar group of companies fully focused on delivering a swift solution and continuation of supply.

Extensive plans were developed and actions taken to ensure readiness for the 1st January 2021.

We focused on:

Managing the changes required in the nature of our supplies into the EU.
Identifying suitable carrier services for these export transactions.
Identifying ways to minimise the impact of the change in the nature of transactions for our customers.
Working with carriers to minimise impacts on our delivery times.
Increasing inventory on selected products and reviewing our inventory split between our warehouse facilities in the UK and mainland Europe to optimise product availability to customers.

Will I still be able to buy Newark direct ship goods after 1 January 2021?

Yes, the only change is that we will be importing goods for EU customers through Germany to minimize impact on delivery times.

Do you still offer the same range of products?

We intend to offer our same broad range of products and will continue to enhance this range with the addition of new suppliers to maximise choice and ensure access to the latest technologies for all our customers.

I am a customer from outside Europe, will I still be able to purchase products stocked in European warehouses after 1st January 2021.

Yes, you will still be able to purchase goods stocked in our European warehouses. There is no change.

DELIVERY TIMES

Will there be any impact on delivery times from 1 January 2021?

We know that delivery times are important and we have taken extensive actions to maintain the usual level of service you receive, including.

Working with our carriers to secure capacity on import routes into the EU to minimise impact on delivery times so that we can maintain our usual delivery proposition.
Invested heavily in our in-stock proposition to continue to offer comprehensive in-stock ranges across our European distribution networks. We have also made additional short term investments in fast-moving inventory to lessen the impact of potential delays at the UK/EU border after 1st January 2021. There may be some products where we have had to make changes to our supply arrangement and this may result in longer lead times.
Prepared our business to be ready to comply with new import and export procedures.

We anticipate that there may be a short period immediately after 1st January 2021 when some delays are experienced as everyone adjusts to the changes in procedures for the movement of goods. We will let you know if we anticipate that your order will be impacted so that you have as much information as possible to help you manage your business.

For our customers in Eastern Europe and CPC Ireland, we do not expect any significant delay to delivery times in the longer term but there may be some slight delays in the short term.

For our customers buying through our mainland European businesses, in particular for products sourced from our UK (Leeds) warehouse, we have established an import route to the EU that will maintain existing delivery times. However, immediately post-Brexit, there may be some short term disruption.

IMPORT TAX AND DUTY

Will I have to pay import tax and duty on products despatched from the UK from 1 January 2021?

We now know that following the UK’s exit from the EU, goods moving between the UK and EU member states will not be subject to additional tariff and duty costs.

Will Brexit force my prices to go up due to additional import duties after 1 January 2021?

We now know that goods moving between the UK and EU member states, will not be subject to additional tariff and duty costs. Our aim is to ensure that customers receive a compelling and competitive price relative to our high service model.

CHANGES TO THE WAY WE DO BUSINESS WITH YOU

I know Farnell has a warehouse in Belgium – should we expect more shipments from there in future?

Our multi-warehouse footprint in Europe enables us to minimise any disruption to our customers. Our European warehouses are also part of a global distribution network which helps us to further mitigate impact on our customers, should this be necessary. We will continue to ship from both European (Liege and Leeds) warehouses, as well as from the other warehouses in our global distribution network as required.

What changes can we expect in relation to the paperwork and transactions from 1 January 2021?

If you buy from one of our EU based businesses, you are unlikely to see any changes at all. You will continue to be invoiced in the same way by those businesses. Stock from our UK warehouse will be imported by Farnell into the EU through Germany, with our UK business acting as the Importer of record.

If you are an Eastern Europe customer or an EU customer buying through Farnell’s export website you will see a new German VAT number (DE284299742) on our invoices. Those who submit Intrastat will treat these as arrivals from Germany. There will be no significant change in the VAT treatment shown on invoices and we do not expect any significant delay to delivery times in the longer term. Please note you may need to set up a new vendor for Farnell due to the change of VAT number. Click here for more information.

Product from our Liege warehouse will continue to be supplied as they are now. Our customers will continue to see the Belgian VAT number of Premier Farnell UK Limited on their invoices (BE0864613854). Customers who submit Intrastat will continue to treat these as arrivals from Belgium.

Will I need to sign a new sales contract?

We do not believe there is any need for new contracts. We will continue to provide you with the same high quality experience, products and services in the future.

I buy from both Avnet and Farnell – will there be a different approach between the businesses after 1 January 2021?

Where practical, we have adopted a similar approach between Farnell and the wider Avnet organisation with regards to Brexit.

As a non-EU business, will Farnell still be able to hold my personal data if I’m located in the EU?

The UK’s rules around data protection will remain aligned with the EU’s General Data Protection Regulation (GDPR), so there will be no change to the way your personal data is kept secure or your rights.

How will I return a product after 1 January 2021?

If you need to return a product please continue to contact our Sales team to make arrangements. We will be using our warehouse network to ensure that this process remains as efficient as possible.

How will export controlled goods be managed post Brexit?

We are maintaining existing processes wherever possible. We review each order on a case by case basis, considering the end use of product and the end user. The EU and UK government have drafted regulations for simplified procedures and Farnell has applied to use these simplifications.

What impact will there be on my delivery terms (incoterms) after 1 January 2021?

There will be no change to our current terms.

Have you registered with the Trader Support Service?

Yes.

What us your UK EORI number?

GB169680322024

IMPACT BY COUNTRY

I am based in the UK – where do my orders come from? Will I be impacted?

As a UK customer you will continue to have access to stock held in both our UK and mainland European warehouse and you will continue to be invoiced from our UK business. At present, more than 90% of orders for UK customers are shipped from our UK warehouse which will not be impacted. We will deal with any changes associated with the movement of goods from the EU and we have worked with our carriers to minimise any disruption with orders made by UK based customers which are shipped from our mainland Europe warehouse. For UK customers there will be no difference in the treatment of goods from the mainland Europe or UK warehouses on the invoices we send you.

I am based I Northern Ireland, what is the process post 1 January 2021.

New document requirements have been introduced for deliveries to NI from the UK. We have implemented changes to meet the new requirements and are working closely with our carriers to ensure a smooth transition to the new process.

Where product is sent to Northern Ireland from our Belgian warehouse the pre-Brexit arrangements are still in place and are unchanged.

We continue to monitor government announcements in case of further refinements to these new arrangements.