John Healey MP, Economic Secretary to the Treasury, announced the plan earlier this month and a director for the new office will be appointed as soon as possible to oversee its formation.

The Attorney General, Lord Goldsmith, to whom the new Office will report, said: "A fully independent CEPO, with a clear demarcation of responsibility between investigators and prosecutors, will give Customs a sound basis to continue its fight against crime."

He added: "It will work closely with skilled Customs investigators to continue building strong cases and deliver robust prosecutions – similar to the way the Crown Prosecution Service does through its close collaboration with the police."

John Healey MP added: "The new office will be a strong, fair, accountable and effective prosecuting authority. It will help Customs continue its work to disrupt and convict those involved in drug trafficking, money laundering and other serious and organised crimes."

Recommendations that a separate prosecuting authority for Customs cases be created were highlighted in the Butterfield Review, published in July 2003. The review can be found on the H Treasury website at www.hm-treasury.gov.uk