NZ exporters on Brexit tenterhooks

Cherry Wilson is on edge about how her wine exporting business might be affected by Brexit.

NZ Wine Exports is a family-run business that offers a door-to-door service shipping cases of premium wines from across New Zealand’s wine regions to tourists on their way home.

‘‘Wherever they go, whatever they fancy, they’re able to get sent home through us.’’

The wine was sent to the United Kingdom, where the taxes were paid, before shipping across the channel to Europe.

‘‘We’re not too sure how changes to the border rules will affect us, we’re just mulling along. Our courier has depots all over Europe and we think we may have to split shipments,’’ Wilson said.

Wilson said she’d been in touch with the freight forwarder, which was talking with counterparts in Germany in preparation for any changes at the border.

She wasn’t completely convinced that Brexit would happen, but planned to talk to her UK couriers about changes to distribution soon.

Mark Hucklesby, partner and national technical director at Grant Thornton, has warned exporters not to get caught out by Brexit.

Hucklesby said ‘‘overnight’’ there could be no agreement in relation to borders, no recognition of UK regulatory systems, no agreements on the rights of EU citizens in the UK and vice versa, and no participation in international agreements on the part of the UK.

A host of complications could arise, from supply chain disruption to financial reporting for businesses if they’re not anticipating and planning for them.

‘‘The devil is in the detail and we don’t have a lot of detail,’’ he said.

A hard or delayed Brexit were both potential scenarios businesses should be considering, and the EU will be dictating any terms that might be reached on an extension.

New Zealand’s foreign investments in the UK were worth $30 billion, and exports to the UK $2.8b.

Philip Gregan, chief executive of NZ Winegrowers, said that the Brexit outcome remained unknown.

‘‘The UK is New Zealand wine’s largest single market by volume, and we are planning for all contingencies by encouraging our members to talk with their UK distributors, to ensure they are as prepared as they can be for the unknown that is Brexit.’’

However, Meat Industry Association chief executive Tim Ritchie said the industry would take whatever steps it considered necessary to manage the risk. The UK was only one of many markets for New Zealand meat around the world.