The EU's chief negotiator has ruled out allowing the UK to collect customs duties on its behalf, a key UK proposal for post-Brexit trade, APA reports quoting BBC.
Michel Barnier said the UK wanted to "take back control" of its money, law and borders - but so did the EU.
The EU would not delegate "excises duty collection to a non-member", he said.
Both he and UK Brexit Secretary Dominic Raab said progress had been made but "obstacles" remained before reaching a deal in October.
Mr Raab said: "We have agreed to meet again in mid-August and then to continue weekly discussions to clear away all the obstacles that line our path, to a strong deal in October - one that works for both sides."