Management problems at HM Revenue and Customs have led to an “erosion of control” over imports, hitting duty and tax income, according to parliament’s public spending watchdog.

A switch away from physically examining imports to using documentary checks and audits has seen fewer inspections, in spite of rising imports over the two years to 2008. Over the same period the revenue resulting from audits on the biggest traders dropped by two-thirds, the Commons public accounts committee said yesterday.