Thirty-Sixth Report - EU Exit: UK Border post transition

Select Committee
Public Accounts Committee HC 746 9 February 2022
Report Status Government responded
Conclusions & Recommendations 31 items (9 recs)
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Government Response (AI assessment · 30 of 31 classified)
Accepted 20
Acknowledged 4
Deferred 4
Not Addressed 2
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty Sixth report from Session 2021-22 · published 28 Apr 2022
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Recommendations & Conclusions

20 results
4 Recommendation Accepted
Government intends to introduce full import controls in phases from January 2022, but much work...
Recommendation
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 Summary
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.
HM Treasury
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5 Recommendation Accepted
There is more to be done to ensure that traders and hauliers across the 27...
Recommendation
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 Summary
The government agrees and has dedicated resources to helping EU traders get ready for import controls, including events, meetings, and translated webinars and communications.
HM Treasury
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6 Recommendation Accepted
Government’s arrangements for goods arriving from the EU is untested and could be exploited, increasing...
Recommendation
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 Summary
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
Government’s ambition for the UK to have the “world’s most effective border by 2025” relies...
Recommendation
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 Summary
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.
HM Treasury
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8 Recommendation Accepted
Businesses have faced challenges operating under the Northern Ireland Protocol which need to be resolved.
Recommendation
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 Summary
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.
HM Treasury
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11 Conclusion Accepted
In the run up to the end of the transition period, the government provided a...
Conclusion
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 Summary
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.
HM Treasury
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12 Conclusion Accepted
We heard from witnesses; in written submissions; and from cases in our own constituencies about...
Conclusion
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 Summary
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.
HM Treasury
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13 Conclusion Accepted
Smaller traders now also need to prepare for full import controls.
Conclusion
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 Summary
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.
HM Treasury
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14 Conclusion Accepted
The EU introduced import controls on goods entering the EU from the UK at the...
Conclusion
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 Summary
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.
HM Treasury
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15 Conclusion Accepted
Although government told us about the good progress that it has made in putting in...
Conclusion
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 Summary
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.
HM Treasury
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16 Conclusion Accepted
The British Ports Association, who represent the UK ports, told us about areas in which...
Conclusion
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 Summary
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.
HM Treasury
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17 Conclusion Accepted
The most significant risk to the operation of the border from 1 January 2021 was...
Conclusion
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 Summary
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.
HM Treasury
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18 Conclusion Accepted
Concerns over readiness have led to the government delaying the implementation of import controls three...
Conclusion
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 Summary
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.
HM Treasury
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19 Conclusion Accepted
HMRC told us that its main trader concerns related to small businesses.
Conclusion
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 Summary
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.
HM Treasury
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20 Conclusion Accepted
Rather than trader or port readiness, HMRC told us that the readiness of EU hauliers...
Conclusion
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 Summary
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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22 Conclusion Accepted
Defra told us that it had learned from experience of checks being introduced by the...
Conclusion
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 Summary
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.
HM Treasury
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23 Conclusion Accepted
The NAO report notes that, since the end of the transition period, the UK government...
Conclusion
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 Summary
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
We were interested in the potential implications for compliance of the requirement for departments to...
Conclusion
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 Summary
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.
HM Treasury
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26 Recommendation Accepted
Ahead of the end of the transition period departments focused on putting in place an...
Recommendation
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 Summary
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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27 Recommendation Accepted
Departments’ track record delivering IT projects is particularly relevant given that HMRC is still working...
Recommendation
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 Summary
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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