A new report warns that failure to ensure the UK has a viable customs system up and running in time for Brexit could have a huge impact on the country’s reputation.
To avoid that possibility, MPs on the Public Accounts Committee have made a number of recommendations, mostly aimed at HM Revenue & Customs (HMRC).
In Brexit and the Future of Customs (available at publications.parliament.uk), they recommend that HMRC should ensure that traders are informed of the Customs Declaration Service (CDS) timeline and progress by January 2018.
HMRC should also promote the benefits of obtaining trusted trader status and aim to increase the number of registered traders.
Brexit could see the number of customs declarations which HMRC must process each year hit 255 million and a failed customs system could therefore lead to huge disruption for businesses, the report notes.
MPs cite the possibility of long queues at Dover and food being left to rot in trucks at the border as two examples of the impact.
It is therefore critical, they say, that HMRC should ensure that both the CDS system and the Customs Handling of Import and Export Freight (CHIEF) system contingency option are capable of managing 255 million declarations.
The system must also be flexible enough to meet the wider challenges of an integrated customs and trade system for the UK, including managing changes to tariffs and international trade quotas.
The Committee accepts that lack of funding is impeding HMRC from upgrading CHIEF and recommends that the Treasury provides the £7.3 million required.
Describing the situation as deeply worrying, Meg Hillier MP said that providing this “relatively small” sum would provide some peace of mind to traders, many of whom are still operating with limited information and in great uncertainty.
For more information on export documentation please contact us on 01603 729712 or email [email protected]
