Serious customs concerns post-Brexit

SERIOUS concerns have been raised about the UK’s ability to cope with the increased number of customs checks it will have to perform after Brexit.

Confidence in a new system being developed for handling imports and exports has “collapsed” in Whitehall, the chairman of the Treasury Select Committee, Andrew Tyrie, said.

Senior Tory MP Mr Tyrie warned that “much trade could be lost” if the customs declaration service (CDS) failed or was delayed.

Under the traffic-light system used to assess progress on major projects, the HM Revenue and Customs programme was given a “green” rating on November 25, 2016, but by January 31 that had been downgraded to “amber/red”.

Mr Tyrie asked the Infrastructure and Projects Authority (IPA) to carry out a fresh assessment of the CDS, examining its contingency plans and demanding an explanation for the “rapid deterioration” in its status.

He told IPA chief executive Tony Meggs: “Now that the government has made a decision to leave the EU customs union, it is critically important that this project is delivered successfully and on time. If there are even modest delays, there is potential for major disruption to trade and economic activity.”

In a statement, Mr Tyrie added: “In just 67 days, confidence in the successful implementation of the customs declaration service (CDS) – a project that HMRC itself describes as ‘business critical’ – has collapsed. On November 25, 2016, it was given a ‘green’ rating, meaning that it was ‘successful’ and ‘on time’. On January 31, 2017, it was given an ‘amber/red’ rating, meaning it was ‘in doubt’, with ‘major risks’, and needing ‘urgent action’.

“Customs is at the heart of the Brexit debate. It is part of the essential plumbing for international trade, and ensuring it continues to function smoothly post-Brexit has to be a priority.

“The CDS is needed in order to handle a possible fivefold increase in declarations that could occur when the UK leaves the EU. The consequences of this project failing, or even being delayed, could be serious. The project, therefore, merits a high degree of scrutiny by Parliament.

“I have written to the Infrastructure and Projects Authority to ask them for their latest assessment of the state of the CDS project.”