'Low level' of checks on imports - News in brief - Evening Standard
       

'Low level' of checks on imports

Low levels of checks on imports to the UK are making it easier for rogue traders to evade taxes and bring in prohibited drugs and guns, senior MP Edward Leigh claimed.

The warning came as a report showed that HM Revenue and Customs carry out physical checks on just 2-3% of imports from outside the European Union, compared to an EU average of 9%.

Meanwhile, the report from spending watchdog the National Audit Office raised concern over a sharp decline in the number of audits of traders carried out by HMRC, which fell by half for large business and two-fifths for small and medium businesses between 2005/06 and 2007/08.

The chance of a trader receiving an audit fell from 18% to less than 10% over this period, and the levels of errors detected rose from 32% to 39% among smaller businesses.

The UK imported goods worth £186 billion from outside the EU in 2007/08. The £2.3 billion paid in customs duty and £19.2 billion in VAT on imports account for almost 5% of total tax revenues.

The NAO praised the HMRC for clearing most imported goods quickly and ensuring that processes for submitting customs declarations and making payments for non-EU imports are straightforward.

But it warned that "fragmented" management of customs activities, a lack of clear accountability and incomplete information were hindering effective oversight of performance and risk management at HMRC.

The chairman of the House of Commons Public Accounts Committee, Leigh, said: "Today's (Friday) NAO report rings alarm bells about HMRC's control of imports. The Department's management of customs activities is described as fragmented and the report highlights a lack of clear accountability and incomplete management information on compliance levels.

"The Department has only just started recording the number of examinations carried out at the UK border and it turns out that only some 2%-3% of imports are being physically checked. This is well below the EU average of 9%.

"All of this can only make it easier for rogue traders to bring prohibited and restricted goods - such as counterfeit goods, drugs, guns and ammunition - into the country and for them to dodge paying the right amount of duty and taxation."

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