DPD has leased a 71,000sq ft warehouse in Oldbury, near Birmingham, as a precaution against a no-deal Brexit on October 31st.
According to DPD, the depot will be needed as imports from the European Union are impounded due to new VAT and customs charges.
“The whole system will grind to a complete halt,” Dwain McDonald, CEO of DPD, told The Sunday Times. “We can’t release the parcels until the duties have been paid.
“The consumers aren’t going to pay for them [at the time of purchase] so the tax will be levied when they get here. We could potentially have to hold 50,000 parcels a day.”
This could reach 100,000 a day during peak season in late November and December.
Theresa May’s government previously announced that there would be no tariffs on most imports to the UK immediately following a no-deal Brexit, as a temporary measure to avoid disruption.
The government website currently advises that trade will take place on World Trade Organization (WTO) terms as the government attempts to secure bilateral agreements with specific countries.
The status of these negotiations is currently described as “Engagement ongoing” for nearly every trade agreement listed.
Source: The Sunday Times