- My Account
- Logout
- Register
- Login
'Low level' of checks on imports
Related Articles
07 January 2008
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."
Top stories in News in brief
News in brief in Pictures
Top stories in News in brief
News in brief in Pictures
-
London gets ready for the Diamond Jubilee - in pictures
-
EXCLUSIVE: I won't play with Joey Barton, says Adel Taarabt
-
Diamond Jubilee: Boat by boat, here is where to watch the Queen's Thames flotilla - VIDEO
-
Duchess of Cambridge is pretty in pink at her first Buckingham Palace garden party
-
News pictures of the day
-
‘We will form a human barricade to keep missiles off our homes’
-
Hunt-ed: Labour pile on pressure for Culture Secretary - Immigrant robber faces deportation after knifepoint hold-up on train
-
Diamond Jubilee: Boat by boat, here is where to watch the Queen's Thames flotilla - VIDEO -
Hague: Military involvement in Syria would be on much larger scale than Libya
The O2
Check out the cool stuff happening under our tent such as the hottest gigs, comedy, sport, films, clubs, bars, restaurants and much more.
A home to be proud of with Halifax
Download the Halifax's brilliant, free new Home Finder app, and take all the pain out of finding your dream home.
Can you imagine a career in teaching?
Be inspired to teach - let real teachers show you how rewarding the job can be.
Playing a game-changing role during the Games
Cisco is providing the solutions for London 2012's complex IT needs.
Win a Silverstone track day with Zantac 75
Feel the burn of a different kind - 20 Silverstone motoring experiences to be won
Celebrate with MARTINI®
This weekend toast one royal with another and make your Jubilee sparkle with a MARTINI Royale.
Reader Offers email A fantastic selection of
offers, giveaways and
promotions.
Why I think doctors are right to strike
Family pay tribute to the London man who gave his life to save a five-year-old girl from drowning
Eton schoolboys fly Games flag on Everest
Horror on the 5.53! Commuter dragged 200 feet after getting hand trapped on train
Shrimpy's - review