Lidl’s Irish business has said that British suppliers will be responsible for additional tariffs in the event of a no-deal Brexit.
The discount supermarket chain says its contracts with suppliers includes a “delivery duty paid” clause that mandates those companies must pay for delivery costs and import taxes.
At the moment, no tariffs are paid because both countries are members of the European Union but this will change if Britain crashes out without a deal on 31 October and begins to trade on World Trade Organisation terms.
The discount supermarket said it had been holding workshops with suppliers to ensure they have “all necessary information” and that it was “committed to delivering the best prices for Irish customers”.
Lidl said it had been working with consultants over the past two years to not only prepare itself for Brexit but also bring its suppliers up to speed.
Lidl Ireland in a statement said: “We held a number of workshops with our suppliers to ensure they have all necessary information, certification and documentation to avoid any disruption to their respective supply chains.
“All existing Lidl contracts contain a DDP (Delivered Duty Paid) clause.
“In an effort to understand the level of preparedness of key UK suppliers we are communicating proactively with them and working together to resolve any potential barriers to supply. We are committed to delivering the best prices for Irish customers.”
Meanwhile, Sky News revealed earlier this month that two-thirds of UK exporters are yet to take basic steps to prepare for a no-deal Brexit.
Government documents leaked this week shows “Operation Yellowhammer” suggests food and water supplies are “areas of risk” for the country.
Meanwhile, Michael Gove, the minister in charge of no-deal planning, has said there “will be some bumps in the road” if the UK leaves the EU without a deal as the government has “taken steps” to prevent a crisis.