TRADE GROUPS THREATEN LEGAL ACTION OVER POST-BREXIT CUSTOMS SYSTEM

 City A.M 16 August 2020 - by Stefan Boscia

The government’s new post-Brexit customs system may face a legal challenge, after trade bodies have complained it will distort competition.

The Sunday Telegraph reports that trade bodies clashed with HM Revenue and Customs (HMRC) at a meeting of its customs experts panel.

Trade bodies expressed their concern that the new Trader Support Service, which will see the government act as a customs agent on behalf of traders, will ruin firms that offer customs brokerage services.

Trade groups are now reportedly weighing up a legal challenge to the system in order to protect firms they represent.

The British International Freight ­Association told The Telegraph that its members “were fuming” that there would be no compensation for losing customs brokerage revenues.

The Trader Support Service will be operational from next month and will be free at the point of use.

Cabinet Office minister Michael Gove said it would help protect post-Brexit trade flows between Great Britain and Northern Ireland when the UK leaves the EU’s customs union on 1 January next year.

An HMRM spokesperson said: ” “The TSS will provide unprecedented support to all businesses engaging in new processes under the Northern Ireland Protocol and its announcement has been warmly received by them.

“We are running a transparent and open procurement process to identify a bidder capable of delivering this and will ensure a service that is fully compliant with the law. We are engaging actively with stakeholders as part of this process.”

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