The options for Britain outside the customs union

Option 1

A highly streamlined customs arrangement between Britain and the European Union would use a combination of technology and goodwill to limit the impact of checks on trade.

The movement of goods across borders would be as simple as possible, with no entry or exit declarations for goods moving between the UK and the EU.

Goods moving between the UK and the rest of the world would be able to travel through the EU without paying EU duties and vice versa.

“Trusted trader” schemes in the UK and EU, together with “the most advanced IT solutions” would mean that vehicles do not need to stop at the border.

Small traders in Northern Ireland would continue to trade across the border with no new restrictions. A streamlined “trusted trader” scheme would be introduced for larger companies in Northern Ireland and the Republic of Ireland.

Option 2

A new customs partnership with the European Union. At the border, the UK would mirror the EU’S requirements for imports from the rest of the world, applying the same tariffs and the same rules of origin as the EU. This would also apply for those goods arriving in the UK and intended for the EU.

Britain would have to be able to guarantee that all goods entering the EU via the UK pay the right EU duties, removing the need for customs processes at the UK-EU border.

The UK would also be able to apply its own tariffs and trade policy for goods intended for the UK market.