Updated

The European Union's anti-fraud office says that customs fraud on goods from China, through Britain and into mainland Europe has cost EU states some $2.1 billion.

The OLAF office said that customs duties were lost on textiles and shoes shipped from China, with Britain being the first EU-landing post over the period 2013-2016.

The OLAF office recommended that the EU Commission try to rectify the situation, as custom duties go into the EU budget. It said the Commission and Britain must now agree on how to deal with the investigation.

OLAF said in a statement that it kept Britain informed over the years about the fraud investigation.