The post-Brexit customs arrangement favoured by leading Brexiteers could cost UK businesses up to £20bn a year, HMRC has said. The organisation's chief executive, Jon Thompson, told MPs the option of a "highly streamlined customs arrangement" would be significantly more costly than a more comprehensive customs partnership - the other option ministers are considering.
He said HMRC had estimated the cost to businesses of having to complete customs declaration forms after Brexit as £32.50 per shipment. There are around 200 million transfers of goods between the UK and the EU each year, meaning the total cost of customs declarations for UK firms would be £6.5bn each year. EU companies would have to pay a similar amount, taking the overall cost to £13bn.
Ministers are currently considering two options for managing imports and exports after Brexit. The first option, the "highly streamlined customs partnership", would seek to allow the frictionless transfer of goods across the border by using technology to reduce the need for checks. This has been described as maximum facilitation, leading the arrangement to be dubbed "max fac".
The other option, a more substantive customs partnership, would see the UK and EU collect tariff duties on each other's behalf. This would, in theory, allow goods to cross the border without the need for comprehensive checks.
www.independent.co.uk/news/uk/politics/brexit-latest-uk-eu-customs-model-cost-business-trade-hmrc-jon-thompson-max-fac-20-billion-a8365576.html
This is the future favoured by JRM- the cost of £20billion is an estimated annual cost to British businesses - and ultimately that would be a cost to British customers - you and me.
