The United Kingdom has transferred a total of £2.1 billion to the European Union since June to end a legal dispute over customs duties on Chinese textiles. This was announced by the government in London on Thursday.
“Although the United Kingdom has since left the European Union (…), the government wants to resolve this old matter once and for all and is determined to fulfil its international obligations,” said Budget Deputy Secretary John Glen in a written statement to Parliament.
The European Commission had initiated infringement proceedings against the UK in 2018 for failing to take action against undervalued imports of textiles and footwear from China despite several recommendations.
As a result, the UK government did not collect enough customs duties. These are so-called traditional own resources that the member states have to transfer directly to the European budget. The Commission demanded 2.7 billion euros from the British.
The European Court of justice had confirmed in March last year that the UK had failed in its obligations as a member state, but asked the Commission to recalculate the amount due.
That amount was eventually settled at 1.4 billion euros, but increased by 1.2 billion in interest. “They are significant amounts (…) but they draw a line under this lingering case,” Glen suggested.
The UK left the EU on 31 January 2020. However, the division of property stipulated that the country remains subject to European jurisdiction for violations of European rules at the time of its membership.
