The European Commission has slapped the UK with a €2.7 billion fine for its failure to collect customs duties on Chinese imports of footwear and textiles.
A formal letter was sent to London, triggering a procedure that could lead the case to the European Court of Justice.
The fine was issued in the context of so-called “infringement procedures,” suggesting Britain was warned in 2007 of the risk of fraud via fictitious invoices but failed to resolve the issue between 2011 to 2017.
The British government disputes the European Commission’s estimates of the size of the duty losses. London also says that due to the fact income from duties goes directly into the EU budget, the litigation should directly concern Brussels.