Brussels billed London

25 April 2017, 16:43 | Economy
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The European Union has accused the British authorities of the inability to counteract fraudulent customs schemes, because of which a stream of "gray" Chinese shirporteb flows into a single Europe. Brussels sent London a bill for damages amounting to € 2 billion.

According to The Times, which refers to high-ranking British officials, continental Europe is furious that the UK tax and customs administration is not able to prevent criminal groups, mostly Chinese, who underestimate the value of goods imported into the EU through the British cities of Dover and Felixstowe. These groups do not pay customs duties and VAT on billions of pounds sterling.

Enterprising merchants found a loophole in legislation that allows them to declare in the United Kingdom imported goods with low added value. After completing all the necessary documents, 86% of the goods imported in this way are immediately transported to Europe, often through one-day companies that disappear before the payment of VAT.

According to the European Bureau for Combating Fraud, the excise losses of the EU for 2013 - 2016. Amounted to 2 billion euros, and losses on VAT - 3.2 billion euros. According to Ernesto Bianchi, the head of the bureau, about 79% of losses from non-payment of customs duties fall on goods imported through Britain.

Official British statistics confirm the justice of reproaches from the EU. Illegal shipments of clothing and footwear from China in recent years have doubled - from 192 million kilograms in 2013. Up to more than 407 million kg in 2016.

In the British Parliament are dissatisfied with the current state of affairs. "It is possible that the EU budget suffers the greatest losses, but this also affects enterprises in Britain, because people who do not pay duties and taxes understate prices," the publication of the words of the chairman of the committee on the state budget of the House of Commons, Meg Hillier.

A representative of the European Commission told reporters that the British authorities are well aware of the work of these fraudulent schemes, but they do not do anything to block the supply channel for "gray" cargoes. Brussels is confident that the scandalous situation will come to the surface during the trade talks and will affect the future customs relations between the EU and Britain.

After the "divorce" between the UK and the European Union will be formalized (this can take up to two years), the parties will have to establish new rules for trade and economic interaction.

Initially, it was assumed that the agreements would be extremely liberal, so that customs duties would not bring losses to companies on both sides of the Channel, which for decades worked in the common market.

However, distrust of continental officials towards British colleagues, caused by the inability of the latter to resist the flow of illegal goods, could force Brussels to insist on strict accountability in the trade relations between the United Kingdom and the EU and strict customs regulations.

United Kingdom launched the procedure for withdrawal from the EU in late March 2017. This process will be completed, as expected, in the spring of 2019.




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