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Customs undervaluation case

30 June 2022

Proposing MP
Middlesbrough South and East Cleveland
Type
Written Ministerial Statement
Department
Treasury

At a Glance

Issue Summary

The statement addresses a customs undervaluation case involving Chinese textiles and footwear imports from 2011 to 2017, leading to uncollected customs duties.

Action Requested

The UK made a payment of €678,372,885.63 on June 10, 2022, to cover outstanding customs duties and interest, stopping further interest accrual until the Commission recalculates the amount for 2015-2017.

Key Facts

  • The European Commission launched infringement proceedings against the UK in March 2018.
  • Alleged undervaluation fraud involving Chinese textiles and footwear from 2011 to 2017, leading to approximately €2.7bn of customs duty uncollected.
  • On March 8, 2022, the CJEU published its judgment finding against the UK on most liability points but limiting the Commission’s claim for imports in 2011-2014 and instructing a recalculation for 2015-October 2017.
  • The UK made a payment of €678,372,885.63 on June 10, 2022 to cover outstanding customs duties and interest.
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