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According to Politico in 2017:

Britain faces a potential €2 billion bill from Brussels after EU investigators found that U.K. authorities turned a blind eye to a massive fraud network that allowed ultra-cheap Chinese goods to flood into Europe.

Does anyone know what has happened to this?

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After an investigation from 2011 to 2016 OLAF published its findings in 2017 https://ec.europa.eu/anti-fraud/sites/antifraud/files/olaf_report_2016_en.pdf

On 8th March 2018 the Commission sent formal notice to the UK government https://ec.europa.eu/commission/presscorner/detail/EN/MEMO_18_1444

In August 2018 a resolution passed in Strasbourg https://www.europarl.europa.eu/doceo/document/TA-8-2018-0384_EN.html

And it was referred to court http://curia.europa.eu/juris/liste.jsf?language=EN&num=C-213/19

Initial claims were heard on 13.5.2019 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A62019CN0213

The case is still in progress.

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