British customs system 'fragmented'

A Commons Public Accounts Committee investigation found HM Revenue and Customs (HMRC) and the UK Border Agency lack "robust processes to assess risk and manage intelligence".

The committee found a far lower percentage of imports were physically searched by officers in the UK than in other EU countries.

The committee's Tory chairman Edward Leigh said: "HMRC is responsible for enforcing import controls to ensure that traders bringing goods into the country from outside the EU pay the right amount of duty and tax and that our borders are proof against the smuggling of prohibited and restricted goods, such as drugs and guns.

"So it is far from reassuring to learn that the department's management of customs activities is fragmented and disjointed, that accountabilities are blurred and that management information is poor."

The creation of the UK Border Agency, which took over the role of carrying out checks at ports and airports in April last year, had made the situation "even more complicated," he said. In the UK, some 2-3% of imports were physically inspected compared with a European average of 9%.

Mr Leigh said: "HMRC has tried to speed up the process of clearing imports at ports by shifting the emphasis from physical examinations to documentary checks and audits of traders.

"In practice this has led to an erosion of control. Against an increasing number of imports, the department is carrying out a lot fewer documentary checks and trader audits - and detected non-compliance is increasing.

"HMRC has argued that an approach based on assessing risk and managing intelligence justified the relatively low levels of physical examination. The trouble is that HMRC and the UK Border Agency have lacked robust processes to identify new and emerging risks. This is a weakness that both bodies must address in a concerted way."

The committee recommended calling on the EU Commission to simplify the complex set of rules governing imports.