The European Affairs Committee announced it is to start hearing evidence on the "overall impact to date of Brexit and of the Trade and Cooperation Agreement with the EU on trade in goods in both directions". It will scrutinise how businesses have been affected by the new trading relationship with the continent since the start of January.
Peers will scrutinise if the deal brokered by Lord Frost has caused added barriers to trade for businesses both in the UK and in the EU.
They will also examine whether firms are prepared for extra customs checks due to be introduced next year.
Last week Lord Frost announced a number of border controls due to be imposed will not be introduced until January at the earliest.
It is the second time the UK has pushed back the timetable for implementing the customs checks.
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They were originally meant to be implemented in the spring before being pushed back until October to allow businesses more time to adapt.
Announcing the extension, Lord Frost said last week: "The pandemic has had longer-lasting impacts on businesses, both in the UK and in the European Union, than many observers expected in March.
"There are also pressures on global supply chains, caused by a wide range of factors including the pandemic and the increased costs of global freight transport.
"These pressures are being especially felt in the agri-food sector."
Peers say they will use their investigation to understand the impact the checks will have once implemented.
"The Committee is interested in both the impact of further delays to import controls and in preparedness for their introduction from January and July next year, particularly in the context of current challenges facing supply chains due to labour shortages," a statement from the Lords said.
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"Although the introduction of many checks and controls has been delayed to 1 July 2022 (the third time the Government has delayed these checks), the requirement for full customs declarations from 1 January 2022 remains a significant milestone."
The House of Lords committee will hear evidence from a range of sources on the impact of the trade deal.
Businesses have warned the UK's decision to delay customs checks on goods arriving from the EU is having a detrimental impact on British firms.
They say that while UK exports to the continent face checks at the border, those looking to ship from the continent to Britain are able to do so without added bureaucracy.
Minette Batters, the head of the National Farmers Union, said last week: While our exporters have been struggling with additional costs and burdens, EU competitors have been given extended grace periods by our own Government to maintain access to the UK market relatively burden free."
Ian Wright, the chief executive of the Food and Drink Federation, added: "It actually helps the UKs competitors.
"The asymmetric nature of border controls facing exports and imports distorts the market and places many UK producers at a competitive disadvantage with EU producers."
The findings of the inquiry will be published later this year.
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Brexit-bashing peers launch House of Lords inquiry into checks and controls with EU - Daily Express
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