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Economy

UK-EU Relations

This fact was correct when it was updated on 24 Sep 2020

What was a ‘facilitated customs partnership’?

The idea of a facilitated customs partnership was first proposed by Theresa May’s government in May 2018. The aim was to allow the UK to have access to EU markets in a similar way as if it were in a customs union. However, the UK would also have enjoyed the right to set its own tariffs. The UK proposed that it collect tariffs on behalf of the EU. Goods that were destined for an EU member state, but which arrived as part of a supply chain in the UK first, would have their tariffs processed by UK customs officials. The UK would need to then track the end destination of goods and collect tariff revenue at the relevant EU rate, reimbursing businesses if the UK tariff were lower. However, a key problem for the EU and opponents in the UK was that this process was seen as impracticable and undesirable given the complexities of modern supply chains.

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