Brexit: the customs challenge report published

20 Sep 2018 01:52 PM

The EU External Affairs Sub-Committee yesterday published a report on the Government's Chequers proposal for a Facilitated Customs Arrangement (FCA) and the customs challenges under 'no deal'. The report finds that under the FCA, UK importers would face an administration cost of £700 million per year – a fraction of the annual £18 billion 'no deal' cost to UK traders. However, the  FCA raises a number of significant questions that need to be resolved for it to be workable and acceptable to the EU.

Key findings

Key findings in the report include:

Chairman's quote

Chair of the EU External Affairs Sub-Committee, Baroness Verma, yesterday said:

"The Government must, as a matter of urgency, provide answers to questions on the Facilitated Customs Arrangement, such as how goods would be tracked, how revenue would be collected and how the repayment mechanism would work.

"With only six months to go until Brexit the clock really is ticking on a mutually acceptable customs agreement.

"A 'no deal' Brexit will cause disruption – mitigation options are limited and no technology currently exists, which would eliminate border checks completely. Even if the UK waived customs checks on goods arriving from the EU, the EU has said that it will not reciprocate."

Further information