Sainsburys has advised its suppliers that provide goods under terms of delivery duty paid that the same will apply in the event of a no-deal Brexit

Sainsbury's has advised its suppliers that provide goods under terms of delivery duty paid that the same will apply in the event of a no-deal Brexit

UK supermarket Sainsbury's has told its suppliers they must foot the cost of additional duties should the UK exit the European Union without a deal.

The UK is set to depart from the bloc by 31 October, with a law designed to stop a no-deal Brexit passed earlier this month. If a deal is not agreed between the UK and EU by 19 October, and MPs don't vote in favour of leaving with no deal, then the prime minister will be legally obliged to ask the EU for a Brexit delay.

According to The Times, Paul Mills-Hicks, Sainsbury's commercial director, wrote to suppliers to advise they would need to continue to deliver goods under terms of delivery duty paid (DDP) after 31 October including tariffs that would be enforced automatically under World Trade Organisation rules in the event of the UK exiting without a deal.

In an email to just-style, a spokesperson for Sainsbury's said: "As part of our preparations for a no-deal Brexit, we are seeking to understand how prepared our suppliers are. Suppliers who provide products to us on a Delivered Duty Paid basis have always been responsible for paying any import taxes that may be due. This letter simply confirms our existing arrangements. Our focus is on minimising the disruption that No Deal could cause to our customers and protecting them from the risk of any related price increases."

While Sainsbury's did not specifically confirm which products are affected, the spokesperson said the move applied to "all suppliers who provide products on a DDP basis".