One option being considered by the British government is a "customs partnership" that would see the United Kingdom collect tariffs on the EU's behalf at ports and airports.
"We've been absolutely clear that we're leaving the customs union and won't be joining a customs union", the prime minister's spokesman said ahead of the meeting.
So when goods - bits of machinery or computers or consignments of food - arrive at UK ports en route to the rest of the EU, UK customs officials would collect the money due and hand it on to Brussels.
Theresa May is heading for a showdown with cabinet Brexiteers today over her plans for a "customs partnership" with the European Union after Brexit, as senior Tories warned they were reaching "breaking point" in their support for the prime minister.
Mr Rees Mogg also denied reports that Brexiteers had threatened to "collapse" the government if she accepts the customs partnership option.
British parliamentarians addressed an "ultimatum" to the Prime Minister of Britain Theresa may under the terms Brexit.
The customs partnership proposal - drawn up by the UK's chief Brexit negotiator Olly Robbins - would involve the United Kingdom collecting customs duties for the European Union while being able to set lower tariffs for goods remaining in the UK. The two proposals are meant as alternatives to that. "The reality is pretty stark - David Davis is clueless".
The report reiterates previous warnings to May's government that any USA administration - particularly one led by President Trump - will be keen for Britain to lower its standards in areas like agriculture.
Chancellor Philip Hammond and business secretary Greg Clark are known to support the prime minister's plan, on the grounds that it could avoid a hard border in Ireland and would give the United Kingdom the right to strike its own free-trade deals.
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"The technology is challenging for the hybrid option; but if you solve it, it solves the Irish border question", said a Whitehall source.
He defended, for example, the legal backstop included in the Brexit transition deal announced earlier this year, in which the United Kingdom and EU agreed that Northern Ireland would abide by the single market and customs union if both sides fail to find an alternative. There are fears that any infrastructure introduced at the border between Northern Ireland and the Republic of Ireland could destabilize the Peace Process.
And former Conservative leader Iain Duncan Smith told the Daily Telegraph that the ERG report had killed the argument for the customs partnership "stone dead".
Instead, he said the Government aimed to have large amounts of detail - maybe even including legal wording - "nailed down" by the formal date of Brexit.
Last night the BBC reported that Mrs May had asked officials to draw up revised plans for post-Brexit customs arrangements.
"All eyes in Europe are on the Brexit subcommittee tomorrow, and what it throws up", he said.
The idea that the United Kingdom could remain in some sort of customs union, goes against the people wishes and would effectively stop BREXIT.
According to The Guardian, however, Mrs May will attempt to stave off rebellion by delaying the final decision on which customs model to go for. With Gavin Williamson also backing Fox et at, the 11-strong Brexit war cabinet was divided 6 to 5 against the prime minister's plan.