Brexit 'could sink HMRC customs system'

Written by Nicholas Mairs on 24 January 2017 in News
News

HMRC's new computer system to monitor customs declarations may be unable to cope with Brexit, according to a Whitehall official.

Prime Minister Theresa May declared last week that Britain would leave the customs union when the country leaves the European Union in 2019, meaning goods leaving and arriving could be subject to customs declarations.

The Times reported that this could see an increase of around 90 million to 390 million declarations a year by 2019 as EU goods movements are classed in the same as way as imports and exports from third countries.


Related content

Civil service chief John Manzoni urges change as data revolution ‘comes for government’
GOV.UK to take more responsibility for local links as Local Directgov is retired
Unlocking the power of big data


The current Customs Handling of Import and Export Freight (Chief) system was designed to handle 50 million filings a year, while the new Customs Declaration Service (CDS) had been intended to cope with just 100 million.

The project, which is due to enter service in 2019, was flagged as “amber” under an official traffic-light warning system used for major projects.

A Whitehall source told The Times: “It’s fair to say that Chief and what to do about its replacement is one of the more horrendous problems right now”. 

HMRC, which has already spent £40 million on the project, said that it could cope with the new demand, despite the uncertainty that still surrounds Brexit.

A spokesman said: "The new system will support any changes to legislation, redesigned business processes and increased volumes of transactions."

“HMRC is prioritising the delivery of CDS to make it ready by January 2019. For a period of time, during the cutover and migration phase, we are planning for the two systems (Chief and CDS) to operate in tandem at the border.

“This would provide extra contingency should we need it to ensure that the UK has a robust border declarations service.”

Despite there being no legal requirement to make customs declarations, business figures argue that it would be the only way to manage a new tariff regime.

A report from the joint consultative committee, the government-industry body that oversees border issues, warned: “The possible reintroduction of customs declaration requirements and frontier controls could potentially cause major disruption at the border, particularly at . . . ferry ports and for trade using the Channel tunnel.”

Tags

Share this page

Tags

Add new comment

Related Articles

Public facilities should do away with downtime
27 June 2017

Ensuring spaces can be booked by the public and other bodies can bring in revenue and create efficiencies, argues Chris Smith

Virtual ID cards mooted for settled EU citizens
27 June 2017

The UK would introduce an Estonia-style virtual identity card for EU nationals who settle in the UK following Brexit, according to reports.

Robots, connectivity and digital skills: progress on digital in Scotland
23 June 2017

"At the end of the day, the services are all the same, so if you’re doing bins from Shetland to Glasgow to the Borders, we all do similar services"

WannaCry NHS attack - busting the myths
21 June 2017

Des Ward, information governance director at Innopsis, reflects on the real story behind the WannaCry cyber-attack.