UK media said that the EU had rejected UK Prime Minister Theresa May's plan for an independent mechanism to oversee Britain's departure from any temporary customs arrangement.
On Friday, UK Transport Minister Jo Johnson said he was standing down after calling the government's Brexit plan a "terrible mistake." In a statement, Johnson said the proposed Brexit plan would leave the country economically weakened, while a no-deal would "inflict untold damage" on the nation.
In early July, Johnson, along with UK Brexit Secretary David Davis, resigned over disagreements with May on customs arrangements within the plan on the country's withdrawal from the European Union agreed upon by Cabinet.
May's Chequers plan, adopted by the Cabinet in July and later rejected by the bloc, envisages the establishment of a UK-EU free trade area based on a "common rulebook" and the refusal to draw a hard border between Northern Ireland and Ireland.
Meanwhile, a leaked letter from Theresa May revealed that she is in favor of establishing a customs border in the Irish Sea, as has been proposed by Brussels, if no Brexit agreement is reached.
The United Kingdom is scheduled to exit the European Union in March 2019, however, the deadline can be extended if all 28 EU members approve.