‘Catastrophic’ customs demand

towards a better understanding although there was ‘still a long way to go’ to reach a deal Failure to complete the introduction of a new customs system by the date of Brexit in 2019 would be “catastrophic”, with warnings over the risk of massive queues at Dover and food being left to rot in trucks at the border. The House of Commons public accounts committee said the number of customs declarations that HM Revenue and Customs must process each year could increase almost five-fold after the UK’S departure from the European Union from 55 million to 255 million.

HMRC does not yet have the funding to increase the capac- ity of its new Customs Declaration Service (CDS) to deal with the consequences of Brexit, the committee said.

A committee report warned “much remains to be done” to have an effective CDS system in place on time and urged the Treasury to make sure funding is in place to develop contingency plans to avoid gaps in the service. It would be “catastrophic” if CDS is “not ready in time and if there is no viable fall-back option”, the committee concluded.

Committeechairwomanand Labour MP Meg Hillier said: “Failure to have a viable customs system in place before the UK’S planned exit from the EU would wreak havoc for UK business, trade and our inter- national reputation. Confidence would collapse amid the potentially catastrophic effects.

“HMRC is under considerable pressure to deliver the new Customs Declaration Service in time, but it does not yet have funding to increase the capacity of CDS to deal with the consequences of Brexit, nor to develop contingency options.

“This is deeply worrying. “HMRC requires a relatively small sum to upgrade the current Chief (Customs Handling of Import and Export Freight) system – a move which would provide some peace of mind to traders,” many of whom are still operating with limited information and in great uncertainty.