Economy

Government must fund expansion of Customs system, say MPs

Government must fund expansion of Customs system, say MPs”

If Britain doesn't introduce a new customs system by the date of Brexit in 2019, there could be mass disruption for businesses and food being left to rot in trucks at the border, a report has warned.

Meg Hillier, the Labour chair of the committee, said HMRC should be "banging on the doors of the Treasury" in order to secure the funding it needs to get the system operational in time to deal with the change.

That figure could increase five-fold to 255 million following the UK's exit from the European Union, requiring the new system - the Customs Declaration Service (CDS) - to be in operation and Treasury funding secured for contingency options, according to MPs. "Confidence would collapse amid the potentially catastrophic effects".

HMRC has highlighted four major risk areas: integrating the eight CDS system components; testing CDS to ensure it can correctly handle the potential increase to 255m declarations every year; migrating traders from the existing CHIEF service to CDS; and ensuring that users are ready to make customs declarations in the new system.

"Much remains to be done to have an effective Customs Declaration Service (CDS) in place, on time, and that traders know how to use", MPs from the House of Commons public accounts committee said in a report.

She said HMRC needed a relatively small sum to upgrade the current system but had been told by HMRC it was merely "in conversation" over upgrade costs.

It is calling on the government to increase funding to ensure that HMRC's new Customs Declaration Service (CDS) is scaled up to handling the necessary 255 million declarations before the United Kingdom leaves the European Union in 2019.

The report described the introduction of CDS as "a programme of national importance that could have a huge reputational impact for the United Kingdom if it is not delivered successfully".

It was "deeply troubling" that HMRC did not have the funding to develop customs systems for Brexit or plan contingencies.

It warned that using uncertainty over the outcome of Brexit negotiations as an excuse to hold back from action would not work.

In its report, Brexit and the future of Customs, the committee also warned that HMRC is managing an unsustainable amount of change with 15 programmes and 250 projects in its transformation portfolio.

Despite this, top officials from the tax agency have told MPs the programme is on track and well governed, but have admitted that some risks remain that could jeopardise the already tight timetable.

In 2015, around 55 million customs declarations were made by 141,000 traders. With the hard deadline of Brexit, delay is not an option.



Like this

Latest


14 November 2017
Inmate will get pillow to help him breathe during execution
A prisons doctor in OH recommended it after the 69-year-old became agitated when lying on his back during an exam last month. According to the Dispatch, Campbell has pulmonary problems and it is hard for him to lie flat without choking.

14 November 2017
Strictly's Craig tells Mollie to get her act together
But you just have to laugh it off and stay focused on the dance'. "I hope we will be friends for a very long time". Despite being a favourite to win, it was Aston who was voted off Strictly Come Dancing 2017 earlier this month.

14 November 2017
Bournemouth midfielder Lewis Cook excited with England call
Cook became the first English captain since the legendary Bobby Moore in 1966 to lift a major trophy in the summer. I got back from the Under-21s, captaining them and really enjoyed that to then come with the seniors.

14 November 2017
Russian Federation and US Analyze UN Deployment in Ukraine
Volker and Surkov earlier held talks on October 7 in Belgrade and on August 21 in the Belarusian capital, Minsk. Meanwhile, a top USA diplomat was set to visit Ukraine this week at the end of a 10-day trip to Europe.

14 November 2017
Are Traders Shorting Medical Properties Trust, Inc. (NYSE:MPW) Shares?
The real estate investment trust reported $0.33 EPS for the quarter, topping the Zacks' consensus estimate of $0.32 by $0.01. It improved, as 19 investors sold MPW shares while 71 reduced holdings. 57 funds opened positions while 139 raised stakes.

14 November 2017
I-5 in Del Mar reopens after deadly crash
About half a mile south of that collision, a pickup truck crashed into several vehicles about 4:45 a.m. Moments later, a black Mercedes hit the Toyota, which was still in traffic lanes.

14 November 2017
MGM Resorts International (NYSE:MGM) Stake Decreased by Korea Investment CORP
The firm owned 432,146 shares of the company's stock after purchasing an additional 25,773 shares during the quarter. Roth Capital began coverage on shares of MGM Resorts International in a research report on Wednesday, October 25th.

14 November 2017
CM Naveen announces scholarships to encourage students on Children's Day
Launching the "Mo School" campaign, Naveen said, "Each one of us has got an emotional attachment to the schools we have studied".

14 November 2017
Former Pharmaceutical Company Executive Picked to Run HHS
The HHS is responsible for advising the President on matters of health, welfare, and income security programmes. He would also help the Trump administration to dismantle Obamacare and crack down on drug prices.

14 November 2017
Financial Watchlist of Glu Mobile Inc. (NASDAQ:GLUU)
Over the long run, the price of a stock will generally go up in lock step with its earnings (assuming the P/E ratio is constant). The expected future growth in earnings per share ("EPS") is an incredibly important factor.in identifying an under-valued stock.



Recommended