The European Commission asked on Thursday this Britain pay Couple of.7 billion pounds ($3.35 billion) connected with customs duties that will have been collected regarding Chinese imports of Asian footwear and materials but were not on account of fraud.

The request, one among a number of European Union “infringement procedures” in opposition to EU countries proclaimed on Thursday, claimed Britain had would not address the trick between 2017 and 2017, while it had been warned on the risks of fraud during 2007.

The letter regarding formal notice provided for Britain is the 1st in a series of ways that can result in countries currently being taken to the European Courtroom of Justice.

“Importers in the United Kingdom evaded a large amount of customs duties by using fake and false checks and incorrect methods value declarations in importation,” the Percentage said in a report.

The British government explained in a statement it didn’t recognize the commission’s estimation of alleged obligation loss.

“We will diligently examine the conventional notice from the commission and respond in due course,” a government spokesman said.

The challenge over duties occurs top of already troublesome talks with the European union over Britain’s decision to leave the bloc next its 2017 referendum.

Under EU rules, Brussels can claim a share associated with taxes on shipped in goods raised by simply EU countries. The proceeds go directly into the EU budget.

EU anti-fraud business office OLAF had said last year that Britain should spend because it allowed the actual scam to go ahead.