MEPs back probe on 'unpaid' UK tariffs

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Containers aboard a container ship at Southampton DocksImage source, AFP

MEPs have voted to back the European Commission in its bid to get the UK to pay €2.7bn (£2.4bn) to cover customs duties it says it is owed due to fraud.

A report welcoming EU disciplinary action launched in March was backed by a large majority at the European Parliament in Strasbourg.

Last week, the commission threatened to take the UK to court unless it took action within the next two months.

The UK disputes the amount of and its liability for duty allegedly evaded.

Black market

The EU says it is owed the €2.7bn from duties incorrectly levied on shoes and clothing imports from China between 2011 and 2017.

Last year, EU anti-fraud investigators found organised crime groups had been using fake invoices to undervalue Chinese goods, many of which were destined for the black market in other parts of the EU.

Speaking before the vote, UK Green MEP Molly Scott Cato said the case could have an impact on the UK's plan for a customs arrangement with the EU after Brexit.

She added that the UK may be trying to use a negotiation over the amount owed as a "bargaining chip" in Brexit talks.

'Political interference'

"At a time when the UK is suggesting that, after Brexit, we should collect customs due for the whole of the EU, this sets a worrying precedent.

"It clearly undermines trust in the strength of the UK customs system and suggests that rather than maximum facilitation and trusted traders, we need to get the basics of customs control right."

However, UKIP MEP Jonathan Bullock urged MEPs to reject the report, describing it as "obvious political interference" in the dispute.

He said the EU probe was about "squeezing every penny from the UK to fill the EU's coffers before Brexit".

'Not Brexit'

EU budget commissioner Guenther Oettinger said the UK had repeatedly been warned about fraud but had failed to take action.

"Let me be clear here - this has nothing to do with Brexit," he said. "It is our duty.

"We do the same thing with regard to other member states.

"We have to ensure that when it comes to import duties, member states levy the correct amount."

A UK government official said: "We take customs fraud very seriously and we continue to evolve our response as new threats emerge.

"We will continue to work closely with the commission and OLAF, external [the European Anti-Fraud Office] on customs fraud."

The European Parliament is not participating in Brexit negotiations but will have to ratify the final deal signed by EU leaders.