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Customized Systems May Cost Additional £20Bn Post Brexit

It has been highlighted by experts that the new systems for customs recommended by the proponents of Brexit like Boris Johnson and others might require the businesses to spend almost £20bn every year. The members of parliament were informed by Jon Thompson, the head of Her Majesty’s Revenue and Customs department, that in what is being termed as a ‘max fac’ approach, the companies will be charged with £32.5 per declaration of custom made. He also told that the systems can take from three to five years to become a part of this.

The government stated that this number of £20bn is a rumor. Notably, this value is more than the share of UK in EU, which was of £13bn in the year of 2016.

The major proponent of Brexit from Conservative Party, John Redwood, stated that the general figures of Her Majesty’s Revenue and Customs department are not acceptable and that the system is not the correct system, if it is going to cost businesses so much.

United Kingdom will be getting out of European Union in the month of March next year. This will in turn be succeeded by a transition period of 21 months, after which the prolonged period after Brexit System will come into effect.

There are two alternatives being considered by the Ministers to substitute current union of customs with the European Union. The proponents of Brexit are also doubtful about the apparently preferred option of the Prime Minister Theresa May, which is termed as customs partnership. This option entails that the United Kingdom will be able to gather the duties levied by the European Union Customs on the items entering UK.

The alternative, which is being advocated by Brexit proponents, is known as maximum facilitation. This will focus on updated verification and use of technology for lesser checks in customs.

About the author

Matthew Dillard

Matthew Dillard

Starting as an intern at the organization as a content writer, now he has become a full-fledged junior content writer who is dedicated to present the day-to-day affairs and events in the Automobile and Business sectors. In spare time, he can be seen partying with friends and exploring new food places.

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