UK & World

Brexit bureaucracy hits UK car-to-refrigerator product manufacturing

As the UK’s Brexit bureaucratic formalism underpins the supply chain, important parts of UK products such as cars and refrigerators can fall into legal problems. Independent Have learned.

Manufacturing is at risk of serious turmoil as the government fails to devise appropriate alternatives to the EU’s safety standards system.

This means that the components required for use in the United Kingdom do not have the proper “kitemark” to ensure that the product is safe. Products and parts may not be sold in the UK market without ensuring that these safety and environmental standards are met.

This is the latest setback for the UK industry to recover from the supply chain shocks and labor shortages caused by the pandemic.

During Brexit negotiations, the UK was unable to secure an agreement with the EU to approve each other’s safety standards known as conformity assessments.

Currently, there are product markings throughout homes and offices in the UK and Europe. They can be found on the “CE” stamp, which means they meet European health, safety and environmental standards.

These kitemarks must be cracked down by government-approved testing laboratories, and from January 1, 2022, most products will need to be individually approved for the UK system.

However, the UK’s dominance in international trade was lost due to the failure to secure the approval of the UK Conformity Assessment (UKCA) agency.Government Unique guidance “It wasn’t the desired result,” he said at the meeting.

Trade associations, factories and conformity assessors said Independent There is not enough capacity or no capacity to test a particular product prior to the UKCA compliance deadline of January 1, 2022. As feared, if it upsets the UK supply chain, it is now at risk of major dropouts between businesses and governments.

A pandemic can also delay a company’s recovery efforts.

Projects such as refurbishing commercial facilities and building homes can get off the ground, as contractors need to install products such as refrigerators and refrigerator components that meet UK regulations.

These have been found to comply with their contractual obligations only if confirmed by the new UKCA scheme, and some products are currently unprocessed.

Three people familiar with the government’s involvement in the matter said they took the lead at last month’s Business Brexit Task Force meeting, including B5. British Chamber of Commerce (BCC), Confederation of British Industry (CBI), Federation of Small and Medium Enterprises (FSB), Association of Management (IOD), Make UK.

David Frost, a former Brexit chief negotiator and government leader in overseeing EU-UK relations, said conformity checks were an urgent issue before and during the meeting. Independent..

So far, the government has been reluctant to extend the deadline for claiming UK-only checks, which is a matter of UK sovereignty and companies should not use delayed tactics to avoid change. Claims.

Ben Fletcher, Chief Operating Officer of the industry group MakeUK, said:

“More people are unaware that this change is happening soon.”

“The approval of the test center involves a very large bureaucracy, and the government needs to track approval urgently to eliminate delays in product approval for UK companies,” he added.

Fletcher also said there was a risk of a “knock-on” effect if EU companies faced these delays and chose to give up supply to the UK market.

This is because companies need to test their products in both the EU and UK markets, which overlaps with bureaucratic formalism and cost. The UK market is much smaller than the EU market, so its additional cost is unattractive for many suppliers.

According to the Motor Manufacturers Association (SMMT), this is after the number of cars rolling on the UK production line has fallen to its lowest level since June 1953. This excludes June 2020 activity. This was still hampered by the blockade caused by the first pandemic.

According to SMMT, both a global shortage of semiconductors and a labor shortage were major factors.

This was highlighted by the latest survey data from IHS Markit on Monday. This shows that the expanded supply chain is acting as a handbrake for the manufacturer’s production.

These supply shortages mean that factory purchasing managers have to fight competition to secure critical parts.

According to supply chain managers at major UK factories, the friction caused by the addition of Brexit’s bureaucracy makes these conversations difficult and ultimately the cost of purchasing supplies.

Brexit has moved the UK from a global leader in conformity assessment to a player in a relatively isolated region. The UK laboratory has closed the block after accounting for about 80% of this business activity in the EU market as a whole.

Currently, I am struggling to establish my own independent evaluation system. UK testing laboratories will no longer be approved by the EU starting next year and vice versa.

Without a UK-recognized conformity assessment provider, manufacturers would not know how to meet the issues raised by the government for several months after January 1.

Two people familiar with the business of a car maker that has a big presence in the UK said Independent You must notify 6-10 months in advance to switch conformance checks to ensure that vehicles off the assembly line meet the correct criteria.

Lack of clarity from the UK Government means that legal compliance cannot be ensured in time for critical inputs such as airbags that must meet UKCA standards for fireworks. At the time of writing, there is no way to meet the UKCA requirements for airbags after January 2022.

The impact on the industry is much broader than airbags, but a very wide range of key components of the product will require new testing of the UKCA regime from January. According to the business lobbying body BCC, this is a problem for importers and exporters.

William Bain, BCC’s Head of Trade Policy, said:

“Without a long-term solution, or at least an easement extension after January 2022, the manufacturing supply chain is serious if EU suppliers cannot evaluate components under the British Standards system. You may face some confusion. “

He added that the body “hopes” that the government can provide a solution to the problem, but “the clock is loud and ticking with about 150 days left.”

Mike Hawes, CEO of SMMT, said his organization is “working closely” with government officials on implementing the new UK certification process.

“We support governments to consider all options, including extending the grace period to give companies certainty and peace of mind as soon as possible,” he added. ..

Sir Frost’s team will offer a solution to the industry in the fall with the help of other government officials, but some groups fear it’s still not timely. Uncertainty has hurt relationships with suppliers, and the inability to ensure mutual recognition of UK and EU conformity assessments is a major blow to UK competitiveness, they said.

A spokesperson for the business unit said: “Companies have a responsibility to ensure that their products meet regulatory requirements. We will continue to work with the industry on this issue to ensure that the industry understands their obligations. “

Brexit bureaucracy hits UK car-to-refrigerator product manufacturing

Source link Brexit bureaucracy hits UK car-to-refrigerator product manufacturing

Related Articles

Back to top button