THE TWO OPTIONS ON THE TABLE

MAXIMUM FACILITATION — SUPPORTED BY BREXITEERS

This would attempt to dramatically reduce customs controls and barriers between the UK and the EU.

Goods would be electronically tracked and pre-cleared with the tax authorities.

Firms allowed to operate as ‘trusted traders’ – so they can move goods freely without having to pay duty every time goods moved across the border.

Officials admit this will be more bureaucratic than inside customs union but hope to create a ‘bespoke’ model.

It would allow Britain to do deals with non-EU nations, because we would not have to comply with EU tariffs.

But the EU has dismissed this proposal as ‘magical thinking’.

NEW CUSTOMS PARTNERSHIP — BACKED BY REMAINERS

It would involve UK officials electronically tracking final destinations of goods coming to Britain. Those heading for Europe would pay the relevant EU tariff and the money handed over to Brussels. Firms selling to the UK would be eligible for a refund, if our tariff levels were lower.

In theory, the EU would have to make similar arrangements at its borders to track goods destined for the UK.

If it works – and many believe it won’t – it would theoretically allow the UK to leave the customs union and negotiate trade deals with non-EU countries. Crucially, by removing all physical EU-UK customs borders it would also provide the answer to the Ulster border.