Brexit means blockchains, lots and lots of blockchains

TechCrunch | 7/12/2018 | Staff
doona07 (Posted by) Level 3
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Does Brexit mean blockchain? The UK government has published a whitepaper — some two years in the baking — where it sets out its fuzzy thinking in an attempt to move beyond two years of Brexit fudge by squashing its warring factions behind a compromise customs arrangement to try to live up to its promise of a “future relationship with the European Union”, i.e. without lashings of fudge.

Instead of the current Customs Union, which the UK is part of as a member of the EU, the government is proposing entering into what it calls a “facilitated customs arrangement” (FCA) with the EU — which it wants to cover goods (services would not be included in this arrangement).

FCA - Need - Customs - Checks - Controls

It fondly imagines this FCA would “remove the need for customs checks and controls between the UK and the EU as if in a combined customs territory, while enabling the UK to control tariffs for its own trade with the rest of the world and ensure businesses pay the right tariff”.

So, in other words, this is the desperately sought for ‘frictionless’ Brexit border outside the Custom Unions — in order that the UK can go around the world trying to strike its own trade deals (which it cannot do if it stays inside the EU’s Customs Union).

UK - Plan - Square - Tariffs - Goods

The UK plan to circle this square is for it to apply tariffs on all imported goods at the border, rather than EU tariffs — but then track the goods and, if they subsequently get sent to the EU, apply the EU tariff — and send the money where it’s then due (i.e. to the EU). Honest!

Which raises the obvious question of how goods will be effectively tracked in order for tariffs to be correctly calculated and/or remitted.

Risk - Customs - Fraud - EU

The risk of customs fraud draining EU (and/or indeed...
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