EU takes action against UK over customs duties

The European Union is taking further legal steps against Britain over its alleged failure to effectively prevent customs duties fraud, which is hurting the EU's budget.

Against the backdrop of stalled Brexit talks, the EU Commission said in a statement Monday that it took a second step in a procedure to force Britain to take action against the evasion of duties, which it estimates has cost the EU some 2.7 billion euros ($3.2 billion). If Britain fails to act over the next two months, the EU can take it to the EU's highest court, the Court of Justice.

The EU budget is partly funded by the collection of customs duties in the member states.