The United Kingdom–Crown Dependencies Customs Union (UK-CD Customs Union) or customs arrangements with the Crown Dependencies 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 ...

that covers the

British Islands The British Islands is a term within the law of the United Kingdom which refers collectively to the following four polities: * the United Kingdom of Great Britain and Northern Ireland (formerly the United Kingdom of Great Britain and Ireland) ...

. It eliminates all

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 ...

and

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 those islands, and creates 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 ...

with other countries. Although each of the dependencies signed an individual agreement with the UK, these agreements include provision for the inclusion of the other dependencies creating a single customs area between the members. On 1 January 2021, the United Kingdom extended its membership of 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 ...

(WTO) to the

Channel Islands The Channel Islands ( nrf, Îles d'la Manche; french: îles Anglo-Normandes or ''îles de la Manche'') are an archipelago in the English Channel, off the French coast of Normandy. They include two Crown Dependencies: the Bailiwick of Jersey, ...

History

Prior to the UK's exit from the EU, trade between the UK and Crown Dependencies was governed by protocol 3 of the UK's EU accession treaty. On 26 November 2018, the UK signed customs agreements with each of the Crown Dependencies to allow free trade to continue to flow across between all the parties by creating a single UK–Crown Dependencies Customs Union. On 29 December 2020, the UK–Crown Dependencies Customs Agreements took effect and officially created a customs union between the UK and Crown Dependencies.

Objectives

The customs agreements: * remove

customs duties 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 ...

between members * prohibit quantitive restrictions * create a

* create a shared safety and security zone * create a joint customs committee * create a single

customs area Border control refers to measures taken by governments to monitor and regulate the movement of people, animals, and goods across land, air, and maritime borders. While border control is typically associated with international borders, it a ...

. These agreements also state that they may be terminated at any time by mutual agreement.

Common Transit Convention

On 29 December 2020, the United Kingdom became an independent member of

Common Transit Convention The Convention on Common Transit is a treaty between the countries of the European Union and a number of other countries for common procedures for international transit of goods, thus simplifying or eliminating much of the paperwork normally associ ...

, this has been extended to the crown dependencies through the UK–Crown Dependencies customs union and is used as the basis for common transit between members.

Customs Alignment

Paragraph 10, 11 & 12 specifies that members of the customs union will align with the UK in areas of customs laws, rules & procedures.

Joint UK-CD Customs Committee

The customs agreements created a joint customs committee (UK-CD Customs Committee). This committee will meet at least once a year and will act as a forum for: * Exchanging views on common interests regarding the agreements * Reviewing the operation of the agreements * Seeking appropriate way and methods to avoid problems occurring in regard to areas covered in the agreements * Mediation should problems occur regarding areas covered in the agreements.

Customs agreements

References

Footnotes

External links

Customs arrangements with the Crown Dependencies

The Customs (Crown Dependencies Customs Union) (EU Exit) Regulations 2019
{{DEFAULTSORT:United Kingdom-Crown Dependencies Customs Union 2020 establishments in the United Kingdom Customs unions Economy of the Crown Dependencies Economy of the United Kingdom Economy of the Channel Islands Economy of the Isle of Man