Thirty-Sixth Report - EU Exit: UK Border post transition
Select Committee
Public Accounts Committee
HC 746
9 February 2022
Recommendations
1 results
3
Not Addressed
More could be done by Government to ensure small and medium sized enterprises (SMEs) are...
Recommendation
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 Summary
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
View Details
Conclusions (16) Observations and findings — click to expand
1
Conclusion
Not Addressed
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 also took evidence from the British Ports Association, Dr Jerzewska …
Government Response Summary
The government's response relates to an entirely different recommendation regarding monitoring COVID-19 costs, and not the conclusion presented.
10
Conclusion
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 Examples include: • Exports to the EU of live animals, …
11
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 ready; and offering one-to-one support to the 10,000 GB businesses …
12
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 the UK’s aerospace, defence, security, and space industries, 95% of …
13
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 larger businesses try to do 27 Q 45; C&AG’s report, …
14
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 subsequently delayed introducing these controls three times.40 It now intends …
15
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, Defra still needs to ensure that the Import of Products, …
16
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 charging regime that will be in place at the government-run …
17
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 ready, in December 2020 the Border Protocol and Delivery Group …
18
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 readiness across 27 member states is significantly more challenging than …
19
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 be ready for January 2022.60 Its focus was therefore on …
20
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 coming from a lower base and accordingly it is writing …
21
Conclusion
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 international obligations.64 We heard that traders will need to notify …
22
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 that in the early days there would be the option …
23
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 prioritise flow to the same extent and will need to …
24
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 goods controlled at that port but that it was just …