BREXIT THREAT

Companies look to mitigate customs delays in light of possible no deal,

LONDON— The rising threat of a no-deal Brexit has multinational companies rushing to prepare for potential customs checks, say two people with knowledge of the situation.

German carmaker Volkswagen AG and U.S. food manufacturer McCormick & Co. are among those that have made appeals to logistics firms in recent weeks for help in case they’re faced with checks on goods moving between the U.K. and the European Union, said one of the people, who didn’t want to be identified because the talks are private.

Not all of the companies are getting the assistance they need, the person said.

Prime Minister Theresa May is trying to extend the free movement of goods with the proposed exit agreement she’s struggling to push through Parliament, scheduled to go to a vote the week of Jan. 14.

If Britain crashes out of the EU, companies will suddenly face tariffs and regulatory hurdles, meaning paperwork, border checks and delays.

“To have the right amount of people to deal with a significant increase in paperwork, there’s going to be a hiccup there” if there’s a no-deal Brexit, said Ross Denton, a U.K. trade lawyer at Baker McKenzie.

There’s “a skills shortage of people who understand what used to be a relatively rarefied issue of customs between the U.K. and third countries.”

May will make one last push to win support for her deal with lawmakers returning to Parliament this week. If her proposal is rejected, it will be tough to find an alternative before Britain’s scheduled EU departure on March 29.

Customs checks are just one part of the contingency planning companies have been doing since the U.K. voted to leave the EU in June 2016. Every sector, from pharmaceuticals to the auto industry, has seen businesses relocating and stockpiling goods in an effort to avert chaos if Britain leaves the bloc without an agreement.

Factories reported an almost record increase in stocks last month as U.K. manufacturers upped their stockpiling efforts, according to a report from IHS Markit.