{"id":67626,"date":"2018-03-09T16:50:26","date_gmt":"2018-03-09T16:50:26","guid":{"rendered":"http:\/\/www.bnreport.com\/brussels-demands-uk-pay-e2-7-billion-in-lost-customs-duties\/"},"modified":"2018-03-09T16:50:26","modified_gmt":"2018-03-09T16:50:26","slug":"brussels-demands-uk-pay-e2-7-billion-in-lost-customs-duties","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/brussels-demands-uk-pay-e2-7-billion-in-lost-customs-duties\/","title":{"rendered":"Brussels demands UK pay \u20ac2.7 billion in lost customs duties"},"content":{"rendered":"

The European Commission today formally demanded that the U.K. pay \u20ac2.7 billion into the EU budget after investigators found that British authorities allowed a massive Chinese fraud network to evade paying the appropriate level of customs duties.<\/p>\n

The network \u2014 which imported ultra-cheap Chinese goods into Europe \u2014 was first revealed<\/a> in March last year by the EU\u2019s anti-fraud office OLAF. The EU concluded that British customs allowed those importers to use \u201cfictitious and false invoices and incorrect customs value declarations at importation.\u201d<\/p>\n

\u201cDespite having been informed of the risks of fraud relating to the importation of textiles and footwear originating in the People\u2019s Republic of China since 2007, and despite having been asked to take appropriate risk control measures, the United Kingdom failed to take action to prevent the fraud,\u201d the Commission said in a statement.<\/p>\n

\u201cThe United Kingdom is liable for the financial consequences of its infringements of EU legislation.\u201d<\/p>\n

While any recovery of the funds will depend on negotiations between the U.K. and the Commission, London has already been in contact with Brussels to complain about the almost \u20ac3 billion bill that the government is facing for infringement of EU law.<\/p>\n

The U.K. argues that OLAF has overestimated the amount missing from state coffers because its figure is based on EU average prices and fails to take account of the high amount of low value clothes entering the U.K. clothing market.<\/p>\n

London has also told Brussels<\/a> it has implemented around 100 measures since 2010 aimed at fighting against fraud, resulting in savings of \u00a3175 billion that would have otherwise gone unpaid. One such measure includes selecting a greater number of containers for pre clearance inspections.<\/p>\n

\u201cWe do not recognise the European Commission\u2019s estimate of alleged duty loss. We take customs fraud very seriously and we continue to evolve our response as new threats emerge,\u201d Her Majesty\u2019s Revenue and Customs said in a statement, adding that it would \u201ccarefully examine the formal notice from the Commission and respond in due course.\u201d<\/p>\n

Still, London could yet be saddled with an even greater bill as the Commission also said that the U.K. infringed EU laws in relation to the collection of Value Added Tax.<\/p>\n

The probe conducted by OLAF took place from 2014 to 2016 and focused on the English ports of Felixstowe and Dover, the main entry points for Chinese textiles and footwear coming into Europe.<\/p>\n

To reveal the level of abuse of Britain\u2019s customs terms on these clothes, OLAF cited the case of women\u2019s trousers which were declared with a value of 91 cents per kilo, undershooting the market price of cotton at \u20ac1.44 per kilogram. The average price for the trousers declared at customs across the EU was \u20ac26\/kg.<\/p>\n

Once the goods entered the U.K., they were then trafficked to members of criminal networks across Europe. The fraudsters then set up \u201cphoenix\u201d companies to take delivery of the goods, according to a joint OLAF-French investigation. These businesses would then disappear, only to be reborn elsewhere.<\/p>\n

This strategy enabled the companies to avoid paying VAT because the EU allows importers to pay VAT in the country where they intend to sell it, and not at their port of entry.<\/p>\n

Original Article<\/a><\/p>\n

[contf] [contfnew] <\/p>\n

<\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"

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