The post-Brexit customs model favoured by Boris Johnson, Liam Fox and Michael Gove could cost business as much as £20bn a year, the head of HMRC has said, a verdict that delivers a huge blow to the Brexiters’ hopes of a complete departure from the customs union. Theresa May’s preferred option, the customs partnership model, under which the UK would collect tariffs on behalf of the EU, would be virtually cost-free because businesses could claim back the levies, Thompson said. Q&A What is a customs union and why does it matter? By doing this, they can help avoid the need for costly and time-consuming customs checks during trade between members of the union. “Leaving the customs union is the right policy, but whatever the solution we come up with must not be hugely costly and burdensome to British business.

Source: The Guardian May 23, 2018 16:30 UTC