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Brexit: failure to update customs system could be 'catastrophic' Brexit: failure to update customs system could be 'catastrophic'
(35 minutes later)
A failure to have a viable customs system in place to cope with Brexit when the UK quits the EU will be “catastrophic” for business and the reputation of the country, the government has been told. A failure to have a viable customs system in place to cope with Brexit when the UK quits the EU would be “catastrophic” for business and the reputation of the country, the government has been told.
The influential parliamentary public accounts select committee said it was “deeply” worried that Her Majesty’s Revenue and Customs does not yet have the funding from the government to develop contingency plans for Brexit. The influential parliamentary public accounts select committee said it was deeply worried that Her Majesty’s Revenue and Customs did not yet have the funding from the government to develop contingency plans for Brexit.
It received evidence that the number of customs declarations that HMRC would have to process could increase five fold to 225 million a year and that “a failed customs system could therefore lead to huge disruption for business with delays potentially causing massive queues at Dover and resulting in food being left to rot in trucks at the border”. It received evidence that the number of customs declarations that HMRC would have to process could increase fivefold to 225m a year and that “a failed customs system could therefore lead to huge disruption for business with delays potentially causing massive queues at Dover and resulting in food being left to rot in trucks at the border”.
The report follows earlier testimony given by HMRC bosses to the committee that it could take £800m and 5,000 extra staff to develop a new Brexit-proof customs system.The report follows earlier testimony given by HMRC bosses to the committee that it could take £800m and 5,000 extra staff to develop a new Brexit-proof customs system.
HMRC chief executive Jon Thompson warned that could take between five and seven years to get a new streamlined system to deal with imports and exports in place. The HMRC chief executive, Jon Thompson, warned it could take between five and seven years to get a streamlined system to deal with imports and exports in place.
The committee’s chair, MP Meg Hillier sad: “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 international reputation. Confidence would collapse amid the potentially catastrophic effects. The committee’s chair, 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 international 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.“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,” she added.“This is deeply worrying,” she added.
Hillier said that a relatively small sum was needed to upgrade the current system, known internally as the CHIEF system, to give customs officers and business a safe, fallback option. Hillier said a relatively small sum was needed to upgrade the system, known internally as the Chief system, to give customs officers and business a safe, fallback option.
She said she was concerned about the lack of urgency relating to such an upgrade which would provide some peace of mind to traders and freight owners.She said she was concerned about the lack of urgency relating to such an upgrade which would provide some peace of mind to traders and freight owners.
“HMRC tells us it is merely ‘in conversation’ over CHIEF upgrade costs when, on behalf of business and the British public, it should be banging on the doors of the Treasury. “HMRC tells us it is merely ‘in conversation’ over Chief upgrade costs when, on behalf of business and the British public, it should be banging on the doors of the Treasury.
“HMRC must press the case to secure this funding now and ensure that, if other plans fail, customs will be fit for purpose,” she said.“HMRC must press the case to secure this funding now and ensure that, if other plans fail, customs will be fit for purpose,” she said.