3 Comments

The bit about e-bikes in parts reminded me of a trade policy story from long ago (1980s, I think), which is not about customs fraud. The UK negotiated a voluntary export restraint on imports of Japanese VCRs, to protect and encourage the UK VCR industry, then seen as the height of hi-tech. There were separate restrictions on complete VCRs and on VCR kits. The kits were imported into a UK factory which assembled them into finished products, so creating "hi-tech" jobs in the UK. The late Brian Hindley of LSE found that the Japanese production plant was automated to the extent that the VCR kits had to be created by disassembling finished VCRs. He pointed out that the policy could be improved so that both the disassembly and reassembly were undertaken in the UK.

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Nov 17, 2023Liked by Sam Lowe

Its all about perspective- traders have an 'obligation' to reduce (non-fraudulently) their costs as long as they can evidence why and how it was done.

HMRC have started clamping down on customs fraud thanks to CDS, and are looking to generate revenues (my own opinion) from easy pickings- many UK companies have no idea about customs compliance and run the risk of penalties.

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Good! They are no rules that was not meant to be bent, at least in the opportunistic and money hungry minds of some. Creativity is key. Like in accounting, quality standards, true components origin, etc. Thank you. Enjoy your week end.

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