HMRC must act now to avoid customs ‘catastrophe’

The Public Accounts Committee (PAC) warns that HMRC must act now and government must provide the money to upgrade the UK’s customs system in time for leaving the EU in March 2019. The PAC says in its report Brexit and the future of Customs (see http://bit.ly/2zGHndN) that it would be ‘catastrophic’ if the new customs declaration service (CDS) were not ready in time.

HMRC plans to have the CDS fully operational by January 2019 but admits it is only ‘in conversation’ with the Treasury at this stage over the additional £7.3m needed to upgrade the current system to handle the potential 255m customs declarations that could be made each year after Brexit – a five-fold increase over the 55m declarations made in 2015. The PAC recommends HM Treasury should ensure HMRC has this funding in place by December 2017.

HMRC has engaged...