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Industry Issue
So, Brexit has happened… a few diversions along the way admittedly, but an agreement was at least reached in the near final hour, and with no tariffs imposed on greeting cards in and out of the EU. While the full picture is yet to materialise, with procedural challenges yet to be sorted, PG asked a selection of publishers and distributors how they feel about the agreement and what impact they feel it will have on the greeting card sector. Who would have thought that ‘Brexit’ would be seen as ‘good news’, but amid the ongoing Covid situation and its ramifications on lives and businesses, the confirmation that greeting cards are not subject to additional tariffs as a result of the agreement reached with the EU on December 24 came as huge relief to UK greeting card publishers and their overseas distributors. Admittedly extra costs are and will be incurred by parties on both sides of the Channel as a result of the extra paperwork and procedures incurred, but as David Byk, ceo of Swan Mill Paper Company (which includes Ling Design, GBCC and Penny Kennedy) summed up “the fact that a Brexit deal has been struck is the most important thing. Business hates uncertainty and there’s already enough of that to go round with the Covid situation.” Sending his ‘entente cordiale’, Laurent Reiz, co-owner of Zazous Editions, distributor for a large number of leading UK publishers in France, said: “For me the UK card industry still has a beautiful future in France, as ever... Don't worry dear friends. Please accept a huge forbidden hug from me.” With the UK greeting card industry having long been a successful British 54
PROGRESSIVE GREETINGS WORLDWIDE
export, a few weeks ago the GCA’s ceo Amanda Fergusson headed to a meeting held by the Government’s Department of Business, Energy & Industrial Strategy about the UK’s PostTransition, the latest in a series of meetings she has attended on the Brexit situation. The GCA’s comprehensive Brexit Blog (www.gca.cards/brexitupdates-dec-2020/) contains a lot of useful
Above: The finer details and costs of Brexit to the UK greeting card industry are still being worked out. Below: A topical design from Emotional Rescue’s Virtual Safari range.
information, such as the codes publishers need to use for their exports to the EU, and this will continue to be updated. As PG went to press the GCA was preparing for a dedicated ‘Dealing with Brexit’ themed webinar with participation from Government officials, publishers with export experience as well as those involved on the logistics side. The hourlong discussion (which is due to take place on January 26) is to be recorded and then hosted in the GCA’s members’ area of the website. As Amanda told PG: “While it is good news that we are leaving the EU with the deal it is frustrating that it had to go to the wire, leaving businesses worried and unable to prepare in advance. Having the right information, advice and procedures in place will be crucial to sustaining the UK greeting card sector’s important export trade.”
Jeremy Corner, managing director of Blue Eyed Sun: “I feel relieved from a business point of view about the agreement, but disappointed as a UK citizen. The agreement is good for the trade of goods for us, especially as we sell to several countries in the EU and import some goods from Germany. While it is frustrating and costly to have more paperwork at the borders, at least both our customers and ourselves will not have to pay duties as goods enter and leave the UK. It’s hard to say what the impact will be on greeting cards. In terms of distribution, I don’t see it having any huge impact on shipping costs for large volumes. It may hamper profitability on smaller shipments to countries like Ireland. Plus, we don’t know how currencies will level out this year as they are still being disrupted by Covid-related news. Closing the deal to such a late stage caused a lot of logistical headaches in December and freight prices did rise significantly. The new VAT scheme will take a little getting used to, but it sounds good for cashflow. Longer term, new norms will be established and those with good distribution partnerships and product that sells will continue to do well.” Right: Jeremy Corner, md of Blue Eyed Sun, which received a Queen’s award for International Trade in 2016 in recognition of its export growth.