Lidl & 'Delivered Duty Paid' clause

[Johnnyboxer]

Lidl have a Delivered Duty Paid clause in their supplier contracts which they would enforce in a No Deal Brexit for goods coming from outside the EU

That means a duty of 12.8% + €265 for every 100 kg of meat supplied to them - in a WTO scenario

Other retailers are saying they will do the same

Lidl lines up suppliers to cover no-deal costs https://www.bbc.co.uk/news/business-49389152

 

[gatepost]

Certainly all the evidence would suggest a very rocky road ahead, which could have the effect of changing farming as we know it for a generation. But hey as every one keeps telling me , the BBC are lying and they need us more than we need them and it will be sooo much better, we are about to find out shortly.

 

[Exfarmer]

That would be standard for all importers of goods. They pay the tariff and hopefully passs it on to the customer, in this case Lidl, who then passes it on in increased prices to the customer.
Of course in the case of Irish companies , who currently import British beef to fill contracts to supply goods to Lidl Ireland, the chances are they will have three ways round this, either find other sources of beef, reduce the price to the abbatoir, or increase the charge to the supermarket. I suspect it will be a combination of the first two.
This will be good news to the English customer as the market will be suppressed and the Brexiteers promise kept.

 

[S J H]

Am I reading it right, that this is Lidl Ireland saying that?

 

[Johnnyboxer]

That would be standard for all importers of goods. They pay the tariff and hopefully passs it on to the customer, in this case Lidl, who then passes it on in increased prices to the customer.
Of course in the case of Irish companies , who currently import British beef to fill contracts to supply goods to Lidl Ireland, the chances are they will have three ways round this, either find other sources of beef, reduce the price to the abbatoir, or increase the charge to the supermarket. I suspect it will be a combination of the first two.
This will be good news to the English customer as the market will be suppressed and the Brexiteers promise kept.

If you think Lidl and other supermarkets will pass on any tariff based price rises to the consumer then I think that is pie in the sky, when all the food retailers are in an 'end user' price war and in a highly competitive sector

I think the supplier will be taking the rap for any tariff and duty paid costs

Lidl Ireland will source from other EU countries tariff free instead .........and not buy from the UK for Beef and Dairy

 

[Pieces_of_Eight]

Am I reading it write that this is Lidl Ireland saying that?

Reading the BBC article, this is Lidl (Ireland) reminding suppliers from outside the EU (e.g. the UK) that suppliers are liable for any import tax when goods enter the EU.

It appears this is already standard within contracts, but obviously hasn't been an issue while we are still in the EU.

 

[caveman]

Reading the BBC article, this is Lidl (Ireland) reminding suppliers from outside the EU (e.g. the UK) that suppliers are liable for any import tax when goods enter the EU.

It appears this is already standard within contracts, but obviously hasn't been an issue while we are still in the EU.

I'm guessing, that if LIDL's customers demand a product that can't be gotten tarriff free and or cheaper from any other third country, same as their competitors, they will still source it and put it on their shelves cheaper than their competitors?

 

[JimAndy]

don't really see a big demand for British beef in Ireland. in truth al that will happen is Larry will supply the beef from his Irish Factories instead of his English Factories, and use Brexit to cut the prices he pays to both british and irish farmers while he make his massive tax free profits

 

[Agrivator]

don't really see a big demand for British beef in Ireland. in truth al that will happen is Larry will supply the beef from his Irish Factories instead of his English Factories, and use Brexit to cut the prices he pays to both british and irish farmers while he make his massive tax free profits

Does Larry have the Irish Government in his pocket?

 

[Cowabunga]

don't really see a big demand for British beef in Ireland. in truth al that will happen is Larry will supply the beef from his Irish Factories instead of his English Factories, and use Brexit to cut the prices he pays to both british and irish farmers while he make his massive tax free profits

Its not just beef. Its not just Ireland. Its everything we export to everywhere.

Who pays? The producer of course. Who else! We will be competing with the EU's internal tariff-free market, so either our prices lower to cover the tariff or our prices lower because our own market will not be able to utilise all the surplus produce. Any way you like it and even ignoring potential promised tariff free imports from lord knows where, prices will lower drastically.
Just been informed of a 1.5p per litre milk price drop. This with the currency having dropped and at a time of year when both would normally mean price rises, not dropping.

We ain't seen nothing yet...

 

[S J H]

Reading the BBC article, this is Lidl (Ireland) reminding suppliers from outside the EU (e.g. the UK) that suppliers are liable for any import tax when goods enter the EU.

It appears this is already standard within contracts, but obviously hasn't been an issue while we are still in the EU.

Do we sell much to Lidl (Ireland) then? If they do this, surely Lidl (U.K.) will put tariffs on products coming from outside the U.K. ?

 

[deleted user 837354]

People have a choice of whether to supply Lidl or not. It's the same for anyone. If you don't like their terms, don't trade with them. It's not rocket science.

Why would Lidl UK have to put tariffs on anything? The UK is adopting a free trade policy.

 

[Cowabunga]

Do we sell much to Lidl (Ireland) then? If they do this, surely Lidl (U.K.) will put tariffs on products coming from outside the U.K. ?

.

 

[Cowabunga]

People have a choice of whether to supply Lidl or not. It's the same for anyone. If you don't like their terms, don't trade with them. It's not rocket science.

Why would Lidl UK have to put tariffs on anything? The UK is adopting a free trade policy.

. ? .

You obviously don't understand a damned thing.

 

[deleted user 837354]

. ? .

You obviously don't understand a damned thing.

And like you do.

All you have done for at least the last 12 months is peddle your own particular brand of negativity.

 

[caveman]

. ? .

You obviously don't understand a damned thing.

Your farming days are nearly over?

 

[Cowabunga]

And like you do.

All you have done for at least the last 12 months is peddle your own particular brand of negativity.

Well now, you see, I do have some knowledge of business and how business works. You have demonstrated time and again that you haven't a clue. In that single post above, you demonstrate a complete naivety and lack of business naus and a lack of understanding of the basics of trading.

I have not peddled negativity. I have been realistic and not a fantasist and certainly not one like you who has nailed his colours to the mast and welcomes the devastation of UK farming and farmers, as you have done previously.

That is the difference between you and me. A stark and serious difference. I wish the best for the UK, for business, for the working man and indeed for farmers and work to that end, especially warning farmers of the consequences of their almost suicidal support for turmoil and financial crisis in the livestock sector in particular.

 

[bobk]

Lidl will get told to swivel , fact is they buy very little from the UK .

 

[Cowabunga]

Lidl will get told to swivel , fact is they buy very little from the UK .

In actual fact they buy quite a lot from the UK and although Lidl have been the first to explicitly issue a warning, the exact same applies to all our export customers. All supermarkets and wholesalers abroad that import UK farm produce and other goods that are subject to tariffs on imports to the EU.

Telling them all to swivel gets you exactly what?

 

[deleted user 837354]

Well now, you see, I do have some knowledge of business and how business works. You have demonstrated time and again that you haven't a clue. In that single post above, you demonstrate a complete naivety and lack of business naus and a lack of understanding of the basics of trading.

I have not peddled negativity. I have been realistic and not a fantasist and certainly not one like you who has nailed his colours to the mast and welcomes the devastation of UK farming and farmers, as you have done previously.

That is the difference between you and me. A stark and serious difference. I wish the best for the UK, for business, for the working man and indeed for farmers and work to that end, especially warning farmers of the consequences of their almost suicidal support for turmoil and financial crisis in the livestock sector in particular.

Posts like the above only serve to reinforce my belief you have big issues with the interpretation of the written word and are unlikely to yield any opinion that might be relied upon.

Your constant negativity is just lost in the background anyway.