Customs fraud probe

EU could demand £1.7bn from UK after customs fraud probe

Clothes and shoes were imported through the UK at fictitiously low values for years to avoid duties, the European Anti-Fraud Office (Olaf) has found.

As a result, investigators say the EU budget has lost millions of pounds in customs duties.

HMRC said it plans to challenge Olaf's claims about lost revenues.

The Olaf investigation found the UK to be a "significant hub" for so-called undervaluation fraud - where importers can profit from evading customs duties and related taxes.