What is the EU customs union?
Theresa May has divided her high staff of ministers into two working teams to hammer out their variations on Brexit.
The cabinet is cut up over how to handle customs preparations with the EU.
Brexiteers similar to Boris Johnson are in opposition to Mrs May's most popular choice of a "customs partnership", which is backed by Remain-voting ministers.
Mr Johnson's most popular mannequin depends on know-how to minimise customs checks. The EU has expressed doubts about whether or not both choice would work.
The prime minister has stated additional work is required to give you a resolution that can ship on her promise of frictionless commerce with out the necessity for an arduous border between Northern Ireland and the Republic.
She is underneath strain to discover a resolution to current to the EU on the subsequent spherical of Brexit talks, with simply 5 months left to get a settlement on post-Brexit commerce, so it may be ratified earlier than Britain leaves in March subsequent yr.
Mr Johnson and Chancellor Philip Hammondwho're thought to have been at loggerheads over the customs subjectwon't play a function in both of the 2 working teams.
One groupBrexiteers Michael Gove and Liam Fox and Remain-backing Cabinet Office minister David Lidingtonwill consider a "customs partnership" whereby the UK would accumulate tariffs on behalf of the EUhowever with out the necessity for brand new border checks.
Downing Street stated this group could be discussing how to make commerce offers with non-EU international locationsone thing Brexiteers say could be unimaginable underneath this selection.
The different groupRemain-backing Business Secretary Greg Clark, Brexit Secretary David Davis and Remain-voting Northern Ireland Secretary Karen Bradleywill have a look at "most facilitation"a resolution based mostly on utilizing know-how to minimise the necessity for customs checks after Brexit.
The members of this group can be how to keep away from the return of an arduous Irish border.
The work was being carried out "as a precedence," the prime minister's official spokesman stated.
The subsequent assembly of the cabinet's Brexit sub-committee is on Tuesday.
All EU members are a part of the customs union which implies there are not any tariffs on items transported between member states.
Labour is in favour of organising a new customs union with the EU after Brexit, one thing it says is backed by the commerce unions and business physique the CBI.
The customs partnership proposal
The UK would accumulate tariffs set by the EU customs union on items coming into the UK on behalf of the EU.
If these items did not go away the UK and UK tariffs on them had been decrease, firms might then declare again the distinction.
The customs partnership is believed to be the prime minister's most popular choice however Foreign Secretary Boris Johnson has described it as "loopy" and stated it could create "a complete new net of forms".
The 'max-fac' choice
The most facilitation proposaloften known as "max-fac"would make use of new applied sciences and trusted dealer schemes to take away the necessity for bodily customs checks.
Trusted dealer schemes would allow firms to pay duties each few months quite than each time they crossed the border.
Considering this selection can be Remainers Business Secretary Greg Clark and Northern Ireland Secretary Karen Bradley and the pro-Leave Brexit Secretary David Davis.
The EU customs union defined
The customs union ensures EU member states all cost the identical import duties to international locations outdoors the EU.
It permits member states to commerce freely with one another, with out burdensome customs checks at borders, however it limits their freedom to strike their very own commerce offers.
The UK authorities has stated it desires to go away the EU customs union so as to strike its personal commerce offers with different international locations.
Ministers are underneath strain to have made progress on the difficulty earlier than subsequent month's EU summit.