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Post-Brexit customs may cost £4 bil.

Reuters

The Houses of Parliament are seen through a European Union flag in London, on Saturday.

Reuters LONDON (Reuters) — The introduction of post-Brexit customs checks could cost traders more than £4 billion ($5.28 billion) a year, according to a think tank report released on Monday.

The British government has said it plans to leave the European Union’s customs union when it leaves the bloc, and it wants to negotiate a new relationship that will ensure trade is as free of friction as possible.

In its report “Implementing Brexit: Customs,” the Institute for Government said the government needed to offer as much certainty as possible to business and help them plan for changes to customs. Around 180,000 traders now operate only within the EU and face making customs declarations for the first time after Brexit. The government estimates an extra 200 million declarations a year will be made.

Those declarations cost £20 to £45 each, the IfG said, putting the total additional cost at £4 billion to £9 billion. “The scale and cost of change for many traders could be significant. Government must engage with them in detail about changes, understanding their requirements and giving them as much time to adapt as possible,” the report said.Speech

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