EU Exit: UK Border

Public Accounts Committee Closed Inquiry
Opened: 20 Oct 2021 Closed: 26 Apr 2022 Parliament page
In December 2020 the UK and the EU reached agreement on the terms of their future relationship following Brexit. Since the end of the agreement ‘transition period’ on 31 December 2020, there have been changes in how the UK trades with the EU, and in relation to the movement of … Read more
9 Recommendations
22 Conclusions
1 Report
2 Oral sessions
4 Letters
2 Events
Activity timeline 8 events
28 Apr
2022
Report published
21 Apr
2022
Correspondence
9 Feb
2022
Report published
12 Jan
2022
Correspondence
11 Jan
2022
Correspondence
14 Dec
2021
Correspondence
24 Nov
2021
Oral evidence
22 Nov
2021
Oral evidence
Oral evidence sessions 2 sessions
24 Nov 2021
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EU Exit: UK Border
Alex Chisholm · Cabinet Office Bernadette Kelly CB · Department for Transport Emma Churchill · Ministry of Justice Jim Harra · HMRC Tamara Finkelstein · Department for Environment, Food and Rural Affairs
22 Nov 2021
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EU Exit: UK Border
Alex Veitch · British Chambers of Commerce Dr Anna Jerzewska · Trade and Borders Consultancy Richard Ballantyne · British Ports Association
Title HC No. Published Items Response
Thirty-Sixth Report - EU Exit: UK Border post transition HC 746 9 Feb 2022 31 Responded
Recommendations & Conclusions
31 results
2 Recommendation Deferred
Thirty-Sixth Report - EU Exit: UK …
The new controls in place over the movement of goods from the UK to the...
The new controls in place over the movement of goods from the UK to the EU have created additional costs for businesses and affected international trade flows. It is not yet clear to what extent the declines in UK trade … Read more
Government Response
The government agrees but states that it will produce an updated estimate of business costs when it is able to collect more stable trade data less affected by the pandemic and supply chain issues.
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3 Recommendation Not Addressed
Thirty-Sixth Report - EU Exit: UK …
More could be done by Government to ensure small and medium sized enterprises (SMEs) are...
More could be done by Government to ensure small and medium sized enterprises (SMEs) are prepared to face the additional costs and administration required by new border requirements. In preparing for the end of the transition period government provided a … Read more
Government Response
This response is from a different committee report. It states the PAC conclusion: While we wait for the much-delayed SEND review, the support system continues to fail many children and remains financially unsustainable.
HM Treasury
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4 Recommendation Accepted
Thirty-Sixth Report - EU Exit: UK …
Government intends to introduce full import controls in phases from January 2022, but much work...
Government intends to introduce full import controls in phases from January 2022, but much work remains to be done. The UK originally intended to introduce import controls on goods entering Great Britain from the EU when the transition period ended … Read more
Government Response
The government agrees and has sent a letter from the Cabinet Office setting out the further information as requested by the Committee, alongside the Treasury Minute.
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5 Recommendation Accepted
Thirty-Sixth Report - EU Exit: UK …
There is more to be done to ensure that traders and hauliers across the 27...
There is more to be done to ensure that traders and hauliers across the 27 EU countries are prepared for UK import controls. Departments have consistently rated a lack of trader and haulier readiness for new border controls as a … Read more
Government Response
The government agrees and has dedicated resources to helping EU traders get ready for import controls, including events, meetings, and translated webinars and communications.
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6 Recommendation Accepted
Thirty-Sixth Report - EU Exit: UK …
Government’s arrangements for goods arriving from the EU is untested and could be exploited, increasing...
Government’s arrangements for goods arriving from the EU is untested and could be exploited, increasing regulatory and fiscal risks. Governments operate import controls for several reasons including: to ensure goods meet relevant standards; to prevent smuggling and illicit activity; and … Read more
Government Response
Alongside this Treasury Minute, the government has sent a separate letter from HMRC setting out further information as requested by the Committee.
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7 Recommendation Accepted
Thirty-Sixth Report - EU Exit: UK …
Government’s ambition for the UK to have the “world’s most effective border by 2025” relies...
Government’s ambition for the UK to have the “world’s most effective border by 2025” relies on cross-government digital programmes, in which it does not have a good track record. In December 2020 the government published its strategy to put in … Read more
Government Response
The government agrees and will write to the Committee by October 2022 with a timetable and roadmap for creating the world’s most effective border by 2025, having committed over £1 billion to border transformation.
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8 Recommendation Accepted
Thirty-Sixth Report - EU Exit: UK …
Businesses have faced challenges operating under the Northern Ireland Protocol which need to be resolved.
Businesses have faced challenges operating under the Northern Ireland Protocol which need to be resolved. Both the UK and EU have recognised that there are issues with the implementation of the Northern Ireland Protocol. The Cabinet Office told us that … Read more
Government Response
The government agrees and has been in talks with the EU to resolve the challenges with the Northern Ireland Protocol, while preparing for any outcome and updating Parliament on progress.
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1 Conclusion Not Addressed
Thirty-Sixth Report - EU Exit: UK …
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, the Department for Environment, Food and Rural Affairs (Defra), the Department for Transport (DfT), and HM Revenue & Customs (HMRC).1 We … Read more
Government Response
The government's response relates to an entirely different recommendation regarding monitoring COVID-19 costs, and not the conclusion presented.
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9 Conclusion Deferred
Thirty-Sixth Report - EU Exit: UK …
There is clearer evidence available of the impact of the UK’s new trading arrangements on...
There is clearer evidence available of the impact of the UK’s new trading arrangements on UK businesses, which now face additional administration and costs when trading with the EU. For example, Dr Jerzewska told us that even though full import … Read more
Government Response
The government agrees but states that it will produce an updated estimate of business costs when it is able to collect more stable trade data less affected by the pandemic and supply chain issues.
HM Treasury
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10 Conclusion
Thirty-Sixth Report - EU Exit: UK …
In addition to the new customs requirements, some industries can find themselves subject to extra...
In addition to the new customs requirements, some industries can find themselves subject to extra controls depending on the company’s individual supply chain and the industry they are in – some goods will find themselves much more regulated than others.23 … Read more
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11 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
In the run up to the end of the transition period, the government provided a...
In the run up to the end of the transition period, the government provided a range of support to help traders prepare. This included: running a communications campaign across multiple channels; writing directly to businesses to encourage them to get … Read more
Government Response
The government agrees with the committee's observation on challenges for smaller businesses and outlines continued support efforts including guidance, an intermediary register, the Export Support Service, and the future UK Single Trade Window by October 2022.
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12 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
We heard from witnesses; in written submissions; and from cases in our own constituencies about...
We heard from witnesses; in written submissions; and from cases in our own constituencies about some of the particular issues that smaller businesses have faced as they try to get to grips with new requirements. For example, ADS, which represents … Read more
Government Response
The government acknowledges the challenges for SMEs and describes ongoing support through guidance, an intermediary register, the Export Support Service, and the future UK Single Trade Window by October 2022, building on the past SME Brexit Support Fund.
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13 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
Smaller traders now also need to prepare for full import controls.
Smaller traders now also need to prepare for full import controls. HMRC told us that it put a lot of effort into reaching smaller businesses.37 However, it also told us that customs is a highly intermediated process which usually only … Read more
Government Response
The government acknowledges the disproportionate impact on SMEs and outlines continued support through extensive GOV.UK guidance, an intermediary register, and the Export Support Service, stating that the UK Single Trade Window will further simplify processes for SMEs by October 2022.
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14 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
The EU introduced import controls on goods entering the EU from the UK at the...
The EU introduced import controls on goods entering the EU from the UK at the end of the transition period from 1 January 2021. The UK government originally planned to introduce full import controls on the same date but has … Read more
Government Response
The government agrees with the committee's observation about its intention to introduce full import controls starting January 2022 and states that this recommendation has been implemented, with further information provided separately.
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15 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
Although government told us about the good progress that it has made in putting in...
Although government told us about the good progress that it has made in putting in place the systems, infrastructure and staff required for the introduction of import controls, we note that government still needs to deliver further changes.43 For example, … Read more
Government Response
The government agrees with the committee's observation regarding the need for further changes to systems, infrastructure, and staffing for import controls, stating that the recommendation has been implemented and further information has been provided.
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16 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
The British Ports Association, who represent the UK ports, told us about areas in which...
The British Ports Association, who represent the UK ports, told us about areas in which ports need new information from government to inform the business decisions they need to make as private commercial entities.49 It wanted government to outline the … Read more
Government Response
The government states that a separate letter from the Cabinet Office has been sent to the Committee, providing the further information requested by ports regarding charging regimes and percentages of checks.
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17 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
The most significant risk to the operation of the border from 1 January 2021 was...
The most significant risk to the operation of the border from 1 January 2021 was that traders and hauliers would not be ready. Despite carrying out a significant programme of work to encourage traders and other border users to get … Read more
Government Response
The government agrees with the committee's observation about past readiness challenges and details significant ongoing resources and engagements, including over 70 events and translated materials, aimed at helping EU traders prepare for import controls.
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18 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
Concerns over readiness have led to the government delaying the implementation of import controls three...
Concerns over readiness have led to the government delaying the implementation of import controls three times and departments’ focus is now on improving UK and EU readiness for the implementation of UK import controls.56 Logistics UK told us that improving … Read more
Government Response
The government agrees with the committee's observation and states it has already implemented measures, detailing extensive past and ongoing engagement, events, and translated communications to help EU traders prepare for import controls.
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19 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
HMRC told us that its main trader concerns related to small businesses.
HMRC told us that its main trader concerns related to small businesses. It had a high level of confidence that large traders, which are responsible for about 85% of the value of imports from the EU to the UK, would … Read more
Government Response
The government agrees with the committee's observation on trader readiness and details significant ongoing resources and engagements, including over 70 events and translated materials, aimed at helping EU traders prepare for import controls.
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20 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
Rather than trader or port readiness, HMRC told us that the readiness of EU hauliers...
Rather than trader or port readiness, HMRC told us that the readiness of EU hauliers was now the main risk ahead of the implementation of UK import controls. HMRC told us that while EU haulier readiness is improving, it is … Read more
Government Response
The government agrees with the committee's observation on EU haulier readiness and describes dedicated, ongoing resources and engagements, including over 70 events and translated materials, aimed at helping EU businesses prepare for import controls.
HM Treasury
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21 Conclusion Acknowledged
Thirty-Sixth Report - EU Exit: UK …
The government needs to introduce import controls for several reasons, including: to ensure imported goods...
The government needs to introduce import controls for several reasons, including: to ensure imported goods meet the relevant standards in areas such as food and product safety and disease control; to prevent smuggling and illicit activity; and to comply with … Read more
Government Response
The government agrees with the committee's observation on the need for import controls and states the recommendation is implemented, referring to a separate letter from HMRC for further information, but without detailing specific new actions in this response.
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22 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
Defra told us that it had learned from experience of checks being introduced by the...
Defra told us that it had learned from experience of checks being introduced by the EU and that starting with pre-notification before introducing checks means that people would have to get used to using the IPAFFS system.66 It told us … Read more
Government Response
The government agrees with the committee's observation regarding Defra's approach to import checks and states that the recommendation has been implemented, noting that HMRC has sent a separate letter with further information.
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23 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
The NAO report notes that, since the end of the transition period, the UK government...
The NAO report notes that, since the end of the transition period, the UK government has chosen to prioritise the flow of goods over compliance, but that, after the introduction of import controls, departments will no longer be able to … Read more
Government Response
The government agrees with the committee's observation about the need for a new compliance regime to manage fiscal and regulatory risks post-import controls, stating that this recommendation has been implemented and further information has been provided by HMRC.
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24 Conclusion Accepted
Thirty-Sixth Report - EU Exit: UK …
We were interested in the potential implications for compliance of the requirement for departments to...
We were interested in the potential implications for compliance of the requirement for departments to undertake some checks away from the ports at which goods arrive. HMRC acknowledged that it is ideal to have infrastructure at a port and the … Read more
Government Response
The government agrees with the committee's observation regarding the compliance implications of inland checks and states that this recommendation has been implemented, with further information provided by HMRC.
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25 Conclusion Acknowledged
Thirty-Sixth Report - EU Exit: UK …
In December 2020, the government published its 2025 UK Border Strategy, which set out the...
In December 2020, the government published its 2025 UK Border Strategy, which set out the government’s vision to have the “world’s most effective border” by 2025.77 This set out how the government would improve coordination between government departments and agencies … Read more
Government Response
The government outlines its 2025 UK Border Strategy and six key transformations designed to reduce costs and administrative burdens, focusing on enhancing data collection, enabling upstream compliance, and making border documentation digital.
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26 Recommendation Accepted
Thirty-Sixth Report - EU Exit: UK …
Ahead of the end of the transition period departments focused on putting in place an...
Ahead of the end of the transition period departments focused on putting in place an initial operating capability at the UK border. The new IT systems, or changes to existing systems, required to provide this capability were all delivered as … Read more
Government Response
The government will write to the Committee by October 2022 to provide an update on the work to create the world’s most effective border by 2025, and share the roadmap it has developed for transformation of the UK border.
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27 Recommendation Accepted
Thirty-Sixth Report - EU Exit: UK …
Departments’ track record delivering IT projects is particularly relevant given that HMRC is still working...
Departments’ track record delivering IT projects is particularly relevant given that HMRC is still working on replacing its CHIEF customs system with a new Customs Declaration Service (CDS). CDS was originally supposed to be in use by all UK traders … Read more
Government Response
The government will write to the Committee by October 2022 to provide an update on the work to create the world’s most effective border by 2025, and share the roadmap it has developed for transformation of the UK border.
HM Treasury
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28 Conclusion Acknowledged
Thirty-Sixth Report - EU Exit: UK …
The Northern Ireland Protocol came into operation from 1 January 2021, with grace periods delaying...
The Northern Ireland Protocol came into operation from 1 January 2021, with grace periods delaying the requirements for some checks and preparations.87 Government told us that the requirements of the Protocol had had a significant impact on Northern Ireland trade … Read more
Government Response
The government has been in intensive talks with the EU since October 2021 to resolve the challenges with the Northern Ireland Protocol, though remain some distance apart in reaching a negotiated outcome, and will continue to work to prepare for whatever outcome is reached.
HM Treasury
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29 Conclusion Deferred
Thirty-Sixth Report - EU Exit: UK …
HMRC told us that it had introduced the Trader Support Service as a free to...
HMRC told us that it had introduced the Trader Support Service as a free to use service to make customs declarations on behalf of affected businesses and is planning to spend £360 million on this over two years. HMRC stated … Read more
Government Response
Response duplicates the response to ID 16376.
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30 Conclusion Acknowledged
Thirty-Sixth Report - EU Exit: UK …
The Cabinet Office told us that, having seen considerable diversion of trade and, due to...
The Cabinet Office told us that, having seen considerable diversion of trade and, due to the lack of support for the Protocol among parts of the community in Northern Ireland, the government had proposed changes to the European Commission to … Read more
Government Response
The government has been in intensive talks with the EU since October 2021 to resolve the challenges with the Northern Ireland Protocol, though remain some distance apart in reaching a negotiated outcome, and will continue to work to prepare for whatever outcome is reached.
HM Treasury
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31 Conclusion Deferred
Thirty-Sixth Report - EU Exit: UK …
The UK government set out its proposals in a July 2021 Command Paper.96 The Cabinet...
The UK government set out its proposals in a July 2021 Command Paper.96 The Cabinet Office told us that it wants to apply a risk-based approach whereby for most goods only those which are at risk of crossing from Northern … Read more
Government Response
Response duplicates the response to ID 16376.
HM Treasury
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Government Response AI assessment · 30 of 9 classified
Accepted 20
Acknowledged 4
Deferred 4
Not Addressed 2
Total 9 recs + 22 conclusions
Correspondence 4 letters
21 Apr 2022 Correspondence from Alex Chisholm Chief Operating Officer for the Civil Service and Permanent Secretary, Cabinet Office, re Government response to Public Accounts Committee report - EU Exit: UK Border post transition report - published on 9 February 2022, dated 1 April 2022
Parliament page
12 Jan 2022 Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, re Average length of delay for declarations using the Staged Customs Controls (SCC), DATED 16 December 2021
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11 Jan 2022 Correspondence from Alex Chisholm Chief Operating Officer for the Civil Service and Permanent Secretary, Cabinet Office, re Public Accounts Committee - 24 November, dated 13 December 2021
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14 Dec 2021 Correspondence from Alex Chisholm Chief Operating Officer for the Civil Service and Permanent Secretary, Cabinet Office, re The UK border: Post UK – EU transition period, dated 6 December 2021
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