Chapter 1: Introduction
Chapter 2: How the EU customs union works
The EU customs union
Administrative requirements and customs procedures for intra-EU trade
Figure 1: Summary of administrative requirements for intra-EU trade
Bilateral customs unions with the EU: Turkey, Andorra and San Marino
How is the EU’s customs union different from the Single Market?
Chapter 3: What if the UK fails to secure a deal with the EU?
Trade with the EU under WTO rules
Tariffs and their cost
Current UK customs procedures when trading with non-EU countries
Box 1: Rules of origin
Existing customs facilitations
Box 2: The Authorised Economic Operator scheme
What would be the impact of new customs procedures under a ‘no deal’ Brexit?
Cost to businesses
Impact on ports
Disruption to the flow of goods
The Northern Ireland/Ireland border
Conclusions and recommendations
Chapter 4: Mitigations open to the UK Government in the event of ‘no deal’
The UK Government’s ‘trilemma’ in the immediate term
“A border is like a tango—it takes two”
Moving away from the border
Joining the Common Transit Convention
Longer term improvements to customs controls
Chapter 5: The UK Government’s proposed customs arrangement
The Facilitated Customs Arrangement
Box 3: The Facilitated Customs Arrangement
Authorised Economic Operators and other trusted trader schemes
Possible shape of a new trusted trader scheme
Tracking of goods
Question 1: Who carries liability for ensuring compliance?
Question 2: Does this create a fraud risk?
Question 3: Could goods be funnelled to the EU via the UK?
Question 4: Could the model give the UK a competitive advantage over the EU?
Negotiations of free trade agreements (FTAs) with third countries
Timescale for implementation of the FCA
Lack of clarity
The view from Brussels
Summary of conclusions and recommendations
Appendix 1: List of Members and declarations of interest
Appendix 2: List of witnesses
Evidence is published online at https://www.parliament.uk/hlinquiry-brexit-customs-arrangements/ and available for inspection at the Parliamentary Archives (020 7219 3074).
Q in footnotes refers to a question in oral evidence.
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