A report by the Public Accounts Committee (PAC) revealed a failure to have a viable customs system in place before the UK leaves the European single market and the customs union in March 2019 would seriously impact UK business, trade and its international reputation.
"The UK's exit from the EU could see the number of customs declarations which HMRC must process each year increase five-fold to 255 million," the report said.
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"A failed customs system could therefore lead to huge disruption for businesses, with delays potentially causing massive queues at Dover and resulting in food being left to rot in trucks at the border.
"This is a programme of national importance that could have a huge reputational impact for the UK if it is not delivered successfully."
Responding to the warning, Chief Executive of the BMF John Newcomb said a failure to sort out the Customs Declaration Service in time would be "catastrophic for the building materials industry".
"Builders merchants are already facing significant material price rises due to currency fluctuations and, from our engagement with government so far, we have concerns that proper consideration is not being given to other obstacles that may hamper trade," he said.
"For essential building material supplies, such as timber, a failure from the Government to deliver a viable customs system could mean very severe delays, extra costs, administrative burdens and shortages that threaten the building of new homes that we so desperately needed."
(LM/MH)
