The European Union's chief Brexit negotiator has stressed his opposition to a key part of Prime Minister Theresa May's Brexit plan.
Michel Barnier said the EU cannot and "will not delegate the application of its customs policy and rules, VAT and excise duty collection to a non-member".
May's Chequers white paper had proposed a facilitated customs arrangement, whereby the UK and the EU would collect tariffs on behalf of the other.
Barnier added that any customs agreements or union reached "must respect this principle", and involve accepting its common commercial policy for goods.
He was speaking at a press conference alongside Brexit secretary Dominic Raab after their meeting in Brussels to resume talks.
Last week Barnier had appeared sceptical about the Chequers plan. "Brexit cannot and will not justify additional bureaucracy," he said after a meeting of EU ministers. "There is no justification for us to create additional burdens for business just because the UK wants to leave."
Meanwhile, yesterday, Raab was more optimistic, insisting that the two had a "good discussion", with 80 per cent of the withdrawal agreement being agreed upon including citizen's rights.
Negotiations surrounding the Irish backstop remain, but Raab is confident that he and Barnier can "address those issues in time". Raab insisted a backstop must be time limited.
Both men confirmed they are still aiming for a deal to be signed by October, despite "obstacles" remaining.
Earlier this week May confirmed that she will be the one to lead talks with the EU from now on with Raab as her deputy.
A written statement from the PM just before summer recess began said Raab and the Department for Exiting the EU would still be in charge of preparations on the domestic side.
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