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The European Union Customs Union (EUCU), formally known as the Community Customs Union, is a
customs union A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff.GATTArticle 24 s. 8 (a) Customs unions are established through trade pacts where the participant countries set up ...
which consists of all the member states of the European Union (EU),
Monaco Monaco (; ), officially the Principality of Monaco (french: Principauté de Monaco; Ligurian: ; oc, Principat de Mónegue), is a sovereign city-state and microstate on the French Riviera a few kilometres west of the Italian region of Lig ...
, and the
British Overseas Territory The British Overseas Territories (BOTs), also known as the United Kingdom Overseas Territories (UKOTs), are fourteen dependent territory, territories with a constitutional and historical link with the United Kingdom. They are the last remna ...
of
Akrotiri and Dhekelia Akrotiri and Dhekelia, officially the Sovereign Base Areas of Akrotiri and Dhekelia (SBA),, ''Periochés Kyríarchon Váseon Akrotiríou ke Dekélias''; tr, Ağrotur ve Dikelya İngiliz Egemen Üs Bölgeleri is a British Overseas Territory o ...
. Some detached territories of EU states do not participate in the customs union, usually as a result of their geographic separation. In addition to the EUCU, the EU is in customs unions with
Andorra , image_flag = Flag of Andorra.svg , image_coat = Coat of arms of Andorra.svg , symbol_type = Coat of arms , national_motto = la, Virtus Unita Fortior, label=none (Latin)"United virtue is stro ...
,
San Marino San Marino (, ), officially the Republic of San Marino ( it, Repubblica di San Marino; ), also known as the Most Serene Republic of San Marino ( it, Serenissima Repubblica di San Marino, links=no), is the fifth-smallest country in the world an ...
and
Turkey Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
(with the exceptions of certain goods), through separate
bilateral Bilateral may refer to any concept including two sides, in particular: *Bilateria, bilateral animals *Bilateralism, the political and cultural relations between two states *Bilateral, occurring on both sides of an organism ( Anatomical terms of l ...
agreements.Customs unions, Taxation and Customs Union
European Commission. Retrieved 20 August 2016.
There are no
tariff A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and poli ...
s or
non-tariff barriers to trade Non-tariff barriers to trade (NTBs; also called non-tariff measures, NTMs) are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. The Southern African Developme ...
between the members of the customs union and unlike a
free-trade area A free-trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and ...
members of the customs union impose a
common external tariff A common external tariff (CET) must be introduced when a group of countries forms a customs union. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which ...
on all goods entering the union. The
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
negotiates for and on behalf of the Union as a whole in international trade deals, rather than each member state negotiating individually. It also represents the Union in the
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and e ...
and any trade disputes mediated through it.


Common external tariffs

The EU Customs Union sets the tariff rates for imports to the EU from other countries. These rates are detailed and depend on the specific type of product imported, and can also vary by the time of year. The full
WTO The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and e ...
Most Favoured Nation tariff rates apply only to those countries that do not have a Free Trade Agreement with the EU, or are not on a WTO recognised exemption scheme such as
Everything but Arms Everything but Arms (EBA) is an initiative of the European Union under which all imports to the EU from the Least Developed Countries are duty-free and quota-free, with the exception of armaments. EBA entered into force on 5 March 2001. There wer ...
(an EU support arrangement for Least Developed Countries).


Union and common transit

Union transit, formerly called "Community transit", is a system generally applicable to the movement of non-Union goods for which customs duties and other charges due on import have not been paid, and of Union goods, which, between their point of departure and point of destination in the EU, have to pass through the territory of a third country. The 'common' transit procedure is used for the movement of goods between the EU Member States, the EFTA countries (Iceland, Norway, Liechtenstein and Switzerland), Turkey (since 1 December 2012), the Republic of North Macedonia (since 1 July 2015) and Serbia (since 1 February 2016). The operation of the common transit procedure with the UK is ensured as the UK has deposited its instrument of accession on 30 January 2019 with the Secretariat of the Council of the EU.European Union
Union and Common Transit
accessed 24 December 2020 Text was copied from this source, which is available under
Creative Commons Attribution 4.0 International License
The procedure is based on the Convention of 20 May 1987 on a common transit procedure. The rules are effectively identical to those of the Union transit. Edward Kellett-Bowman MEP, as ''
rapporteur A rapporteur is a person who is appointed by an organization to report on the proceedings of its meetings. The term is a French-derived word. For example, Dick Marty was appointed ''rapporteur'' by the Parliamentary Assembly of the Council of Eur ...
'' for a
European Parliament The European Parliament (EP) is one of the legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it adopts ...
Committee of Inquiry, presented a report to the Parliament in February 1997 which identified the removal of border controls and a lack of co-operation by member states as being responsible for a rise in
organised crime Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally th ...
and
smuggling Smuggling is the illegal transportation of objects, substances, information or people, such as out of a house or buildings, into a prison, or across an international border, in violation of applicable laws or other regulations. There are various ...
.Neil Buckley, "Cross-border crime loses EU billions: Inquiry blames Brussels and customs for failing to clamp down on smuggling", ''Financial Times'', 21 February 1997, p. 2. Kellett-Bowman's report led to the European Union setting up a customs investigation body and computerising transit-monitoring systems.Neil Buckley, "EU plans single body against smuggling", ''Financial Times'', 13 March 1997, p. 2.


Union Customs Code

The Union Customs Code (UCC), intended to modernise customs procedures, entered into force on 1 May 2016. Implementation will take place over a period of time and full implementation is anticipated by 31 December 2020 at the latest. The European Commission has stated that the aims of the UCC are simplicity, service and speed.


Non-EU participants

Monaco Monaco (; ), officially the Principality of Monaco (french: Principauté de Monaco; Ligurian: ; oc, Principat de Mónegue), is a sovereign city-state and microstate on the French Riviera a few kilometres west of the Italian region of Lig ...
and the
British Overseas Territory The British Overseas Territories (BOTs), also known as the United Kingdom Overseas Territories (UKOTs), are fourteen dependent territory, territories with a constitutional and historical link with the United Kingdom. They are the last remna ...
of
Akrotiri and Dhekelia Akrotiri and Dhekelia, officially the Sovereign Base Areas of Akrotiri and Dhekelia (SBA),, ''Periochés Kyríarchon Váseon Akrotiríou ke Dekélias''; tr, Ağrotur ve Dikelya İngiliz Egemen Üs Bölgeleri is a British Overseas Territory o ...
are integral parts of the EU's customs territory.Protocol relating to the Sovereign Base Areas of the United Kingdom of Great Britain and Northern Ireland in Cyprus
Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, EUR-Lex, 12 November 2019.


EU territories with opt-outs

While all EU member states are part of the customs union, not all of their respective territories participate. Territories of member states which have remained outside of the EU ( overseas territories of the European Union) generally do not participate in the customs union.Territorial status of EU countries and certain territories
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
, retrieved 18 December 2018
However, some territories within the EU do ''not'' participate in the customs union for tax and/or geographical reasons: * Büsingen am Hochrhein (German exclave within Switzerland, part of the Swiss Customs Area)Article 6 o
Council Directive 2006/112/EC
28 November 2006
*
Heligoland Heligoland (; german: Helgoland, ; Heligolandic Frisian: , , Mooring Frisian: , da, Helgoland) is a small archipelago in the North Sea. A part of the German state of Schleswig-Holstein since 1890, the islands were historically possessions ...
(small German archipelago in the North Sea with VAT free status) *
Livigno Livigno (; local lmo, Livígn ; german: Luwin) is a town, ''comune'' and a special-administered territory in the province of Sondrio, in the region of Lombardy, Italy, located in the Italian Alps, near the Swiss border. History Livigno's firs ...
(remote Alpine town in Italy with VAT free status) *
Ceuta Ceuta (, , ; ar, سَبْتَة, Sabtah) is a Spanish autonomous city on the north coast of Africa. Bordered by Morocco, it lies along the boundary between the Mediterranean Sea and the Atlantic Ocean. It is one of several Spanish territorie ...
and
Melilla Melilla ( , ; ; rif, Mřič ; ar, مليلية ) is an autonomous city of Spain located in north Africa. It lies on the eastern side of the Cape Three Forks, bordering Morocco and facing the Mediterranean Sea. It has an area of . It was par ...
(Spanish territories in Africa with VAT free status).


Historical opt outs

The following territories were excluded until the end of 2019: *
Campione d'Italia Campione d'Italia ( Comasco: , ) is a ''comune'' of the Province of Como in the Lombardy region of Italy and an enclave surrounded by the Swiss canton of Ticino (it is also an exclave). At its closest, the enclave is less than from the rest ...
(an exclave of Italy surrounded by Swiss territory) *the Italian waters of
Lake Lugano __NOTOC__ Lake Lugano ( it, Lago di Lugano or , from la, Ceresius lacus; lmo, Lagh de Lugan) is a glacial lake which is situated on the border between southern Switzerland and northern Italy. The lake, named after the city of Lugano, is situated ...


Bilateral customs unions

Andorra, San Marino and Turkey are each in a customs union with the EU.


Special arrangements concerning territories of the United Kingdom

The
United Kingdom of Great Britain and Northern Ireland The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
left the European Union on 31 January 2020 and transition arrangements ended on 31 December 2020. Special arrangements have been made for those parts of the United Kingdom and its territories that share a land border with an EU member state.


Northern Ireland

Northern Ireland Northern Ireland ( ga, Tuaisceart Éireann ; sco, label= Ulster-Scots, Norlin Airlann) is a part of the United Kingdom, situated in the north-east of the island of Ireland, that is variously described as a country, province or region. Nort ...
is no longer a member of the European Union Customs Union: its trade with
Great Britain Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of , it is the largest of the British Isles, the largest European island and the ninth-largest island in the world. It is ...
and its trade with the European Union are each now regulated by the EU–UK Trade and Cooperation Agreement, the European Union (Future Relationship) Act 2020 and the
United Kingdom Internal Market Act 2020 The United Kingdom Internal Market Act 2020 is an act of the Parliament of the United Kingdom passed in December 2020. It is concerned with trade within the UK, as the UK is no longer subject to EU law. The act seeks to prevent internal trade b ...
. These include special provisions for trade in goods between Northern Ireland and the EU which for many purposes are similar to those that apply within the Customs Union, although Northern Ireland remains part of United Kingdom Customs territory.


Gibraltar

Gibraltar left the EU concurrently with the United Kingdom. When part of the EU, it was one of the EU territories with opt-outs and had not been part of the Customs Union. An agreement in principle has been reached between the EU, the United Kingdom, and Gibraltar to negotiate a treaty which would include provisions for trade on goods between the EU and Gibraltar. These would be "substantially similar" to those within the Customs Union. the agreement has not yet been concluded.


Akrotiri and Dhekelia

As already noted above, the British Overseas Territory of Akrotiri and Dhekelia on the island of
Cyprus Cyprus ; tr, Kıbrıs (), officially the Republic of Cyprus,, , lit: Republic of Cyprus is an island country located south of the Anatolian Peninsula in the eastern Mediterranean Sea. Its continental position is disputed; while it is geo ...
are integral parts of the EU's customs territory.


See also

* * ** EU VAT area * *
European Economic Area The European Economic Area (EEA) was established via the ''Agreement on the European Economic Area'', an international agreement which enables the extension of the European Union's single market to member states of the European Free Trade As ...
(EU and EFTA except Switzerland) *
European Free Trade Association The European Free Trade Association (EFTA) is a regional trade organization and free trade area consisting of four List of sovereign states and dependent territories in Europe, European states: Iceland, Liechtenstein, Norway and Switzerlan ...
(EFTA) * * * * * * * * *


Explanatory footnotes


References


External links


TARIC database enquiry system
gives current tariff rates applicable by exporting country and season
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
: Communication and Information Resource Centre for Administrations, Businesses and Citizens.
TARIC and Quota Data & Information
user guides for the TARIC database aboveEuropean Commission: Communication and Information Resource Centre for Administrations, Businesses and Citizens.
"Turkey border gridlock hints at pain to come for Brexit Britain"
''
Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...
'', February 16, 2017 {{Foreign relations of the European Union Customs treaties European Union Customs Union European Union law
Customs Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal effects, and hazardous items, into and out of a country. Traditionally, customs ...
Treaties of Andorra Treaties of Monaco Treaties of San Marino