We are almost three weeks into 2021 and I am curious to know how dealers and distributors in Ireland are managing in the new era of Brexit.

Service Dealer Ireland spoke to a few dealers around the country and most are ordering their spare parts from depots in Europe. Those that have to obtain parts from the UK are finding it a bit challenging, both cost wise and logistically. Importing goods from the UK are now subject to Irish Vat rates, depending on the value of the item, as well as UK rates. Before the 1st of January it was only UK VAT rates that were charged. One UK company had discussed this issue with their European and Irish distributors asking them to absorb the extra VAT cost for the moment, which they agreed to do, though this could change at any time.

Another problem being experienced is the amount of extra paperwork that needs to be done - goods clearance at ports etc. One distributor said, “You would almost need to employ an extra person to deal with all the paperwork that is required”. Many dealers prepared in advance by sourcing equipment parts from European countries. Some had started doing this several months before the January 1st deadline, thus minimising the amount of paperwork needed.

One manufacturer told Service Dealer Ireland, “All credit must be given to Enterprise Ireland and Irish Revenue for being on top of everything in advance of Brexit. They had all the necessary documents ready to use and made training videos available, which made it easy to understand what needed to be done for the 1st of January 2021 deadline”. 

Paying a visit to Rosslare Europort just after New Year’s Day brought home the reality of freight travelling directly to mainland Europe (instead of lorries crossing to Wales, driving to Dover and then into Europe). Seeing three cargo ships docked out in the open sea waiting for their turn to dock was very unusual, a sight never witnessed before. Looking at the lorries coming and going, I wondered did any of them have tractors inside on their way to be sold to the Irish market?

This increase in European traffic has forced one ferry company to reduce sailings to the UK due to lack of freight. Some lorry drivers going to and from the UK were complaining about how long it takes to get custom clearance (up to 4 hours). 

Since restrictions began last March, people have saved like they never did before. Holiday’s abroad, buying daily sandwiches and coffees while out working in offices, having a meal out and socialising have been dramatically curtailed, due to the lockdowns. This has led to people not spending as much as they used to, allowing them to put money aside. Whenever we do get back to normal living, maybe by this summer, when most people have received their vaccines, it is anticipated that there will be a surge in spending, mainly on the items mentioned above. This should be good news for our domestic dealers as garden mowers and equipment could be in great demand because of all this available money. The Spring season normally sees an increase in sales for these items anyhow but with the extra cash in people’s pockets, it could lead to a more than normal demand. Let’s hope that this will be the case.