European union gives Britain two months to pay $3.3 billion over China customs fraud

The European Union on Monday gave Britain two months to recover 2.7 billion euros ($3.3 billion) in lost customs duties or risk referral to the EU’s top court after London allegedly ignored a scam by Chinese importers.

The demand, part of a so-called infringement action by Brussels, threatens to further inflame tensions amid fraught Brexit negotiations just days after an EU summit in Austria ended in acrimony.

The United Kingdom now has two months to act; otherwise the Commission may refer the case to the Court of Justice of the EU, said a statement by the EU’s executive arm.