Brexit Briefing: The Customs Agreement Conundrum

The Customs Agreement Conundrum

The UK government is currently looking into a new model to replace the UK’s membership in the customs union. At present two options have been put forward by the government:

• Option 1 – “The Customs Partnership”. Favoured by pro-EU cabinet members, this would involve the UK collecting import tariffs on the EU’s behalf. So when goods arrived at UK ports on their way to the EU, UK officials would collect the money and pass on to Brussels.
• Option 2 – “Maximum Facilitation”. Favoured by Brexiteers, this would employ new technologies and automation to streamline procedures at borders. It would aim to create a “frictionless” border and build on existing schemes such as authorised economic operators.

Strong arguments have been made by key cabinet members for one option over the other. Both options have already been rejected by the EU as being unworkable in their current form – with Brussels describing one as “magical thinking” – but our government argues that the options are still open. With no agreement in sight, Theresa May has requested further reworking of the proposals.

Read the full article by our partners Freeths here...Brexit Briefing: The Customs Agreement Conundrum