After the EU referendum: questions UK and Irish buyers can put to packaging suppliers

In the weeks after the referendum of 23 June 2016, buyers of packaging components in the United Kingdom and Ireland faced questions they had not needed to ask before. Some had clear answers. Others had none yet. Separating the two is the most useful thing a purchasing team can do in late July 2016.

This guide sets out what had changed, what had not, and which questions were worth putting to suppliers of strap, buckles, seals and clips at that point.

What changed, and what did not

The vote itself did not change the legal basis on which goods moved. In his statement of 24 June 2016, the Prime Minister said there would be no initial change in the way goods can move or services can be sold. He also said that the formal process of leaving under Article 50 would be for his successor to start. By late July 2016, no Article 50 notification had been made.

So the UK remained a member of the EU, inside its customs union and single market. Imports from outside the EU were still declared under the Union Customs Code, which had applied across the EU only from 1 May 2016. Trade between the UK, Ireland and other member states continued without customs declarations.

What did change quickly was the currency. The Bank of England’s Monetary Policy Committee, in its summary published on 14 July 2016, reported that the sterling effective exchange rate had fallen by 6% since its previous meeting and that financial markets had reacted sharply to the vote. It also noted early signs that some businesses were delaying investment decisions.

The questions worth asking

Will the price change? For a UK buyer paying in euros or US dollars, a weaker pound raises the sterling cost of the same order. For an Irish buyer purchasing from a UK supplier in sterling, the effect runs the other way. The useful questions are concrete: in which currency is the quotation made, how long is the price valid, and on what basis can either side ask to revise it.

Will there be tariffs or customs checks on EU trade? In July 2016 nobody could say. The terms of any future relationship had not been negotiated. A surcharge for tariffs that did not yet exist would be pricing a guess, and a buyer is entitled to ask what any such charge is based on.

Should we change our delivery terms? Not because of the vote alone. It was, however, a good moment to confirm which party handles export and import formalities under the trade term already agreed, because that allocation would matter if formalities were introduced between the UK and the EU.

Do our specifications change? No. A wire buckle, sheet metal clip or steel seal is specified by its dimensions, material, finish and the strap and tool it is used with. None of that depended on the referendum.

Should we hold more stock? Building a buffer of consumables is one option. It is a cost and space decision. With no change in trade rules scheduled, buffer stock was a response to currency and planning uncertainty rather than to any known disruption.

Where things stood in late July 2016

Question	Position in late July 2016	Sensible action
Customs between the UK and EU	No change; the UK remained in the EU customs union	Keep current processes; note which party handles formalities under each contract
Tariffs on EU-sourced components	No change; any future arrangement unknown	Challenge surcharges that price unknown tariffs
Exchange rates	Sterling materially weaker after the vote	Agree quotation currency, price validity and revision terms in writing
Product specifications and standards	Unaffected	Keep approved specifications and part identities stable
Origin information	Not needed for UK-EU trade at that time	Keep supplier origin statements on file in case arrangements change
Supply planning	No scheduled disruption	Review consumable stock levels against cost and space, not rumour

Contract details worth tightening

Uncertainty rewards clear paperwork. For repeat purchases of strapping components, it was a good moment to:

• State the currency and validity on every quotation and order, with a defined process for revising prices.
• Record the trade term and named place so responsibility for transport, export and import steps is clear.
• Keep product identity precise, including part number, nominal strap width, wire diameter or sheet thickness, and finish, so any future customs description can be prepared from existing data.
• File origin statements from suppliers alongside the approved specification.
• Separate commercial and technical changes, so a currency renegotiation does not quietly become a product substitution.

A steady approach to your next order

In July 2016 the measured course was to keep specifications stable, make commercial terms explicit and avoid paying for risks that were not yet defined. If you are reviewing supply of woven strap, PET strap or galvanized wire buckles for UK or Irish delivery, set out the currency, trade term and destination in your request through the enquiry page, and the quotation can address each point directly.