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 u ...

which consists of all the

member states of the European Union The European Union (EU) is a political and economic union of 27 member states that are party to the EU's founding treaties, and thereby subject to the privileges and obligations of membership. They have agreed by the treaties to share their o ...

(EU),

Monaco Monaco, officially the Principality of Monaco, is a Sovereign state, sovereign city-state and European microstates, microstate on the French Riviera a few kilometres west of the Regions of Italy, Italian region of Liguria, in Western Europe, ...

, and the

British Overseas Territory The British Overseas Territories (BOTs) or alternatively referred to as the United Kingdom Overseas Territories (UKOTs) are the fourteen dependent territory, territories with a constitutional and historical link with the United Kingdom that, ...

Akrotiri and Dhekelia Akrotiri and Dhekelia (), officially the Sovereign Base Areas of Akrotiri and Dhekelia (SBA), is a British Overseas Territories, British Overseas Territory made of two non-contiguous areas on the island of Geography of Cyprus, Cyprus. The area ...

. 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 Andorra, officially the Principality of Andorra, is a Sovereignty, sovereign landlocked country on the Iberian Peninsula, in the eastern Pyrenees in Southwestern Europe, Andorra–France border, bordered by France to the north and Spain to A ...

San Marino San Marino, officially the Republic of San Marino, is a landlocked country in Southern Europe, completely surrounded by Italy. Located on the northeastern slopes of the Apennine Mountains, it is the larger of two European microstates, microsta ...

and

Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...

(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 or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...

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 measures other than the imposition of tariffs. Such barriers are subject to controversy and ...

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 primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...

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 headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

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 headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

Most Favoured Nation In international economic relations and international politics, most favoured nation (MFN) is a status or level of treatment accorded by one state to another in international trade. The term means the country which is the recipient of this treatme ...

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 (an EU support arrangement for

Least Developed Countries The least developed countries (LDCs) are developing countries listed by the United Nations that exhibit the lowest indicators of socioeconomic development. The concept of LDCs originated in the late 1960s and the first group of LDCs was listed b ...

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), 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 The Instrument of Accession was a legal document first introduced by the Government of India Act 1935 and used in 1947 to enable each of the rulers of the princely states under British paramountcy to join one of the new dominions of Dominion ...

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 two 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 ...

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 is a category of transnational, national, or local group of centralized enterprises run to engage in illegal activity, most commonly for profit. While organized crime is generally thought of as a form of illegal business, some ...

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. More broadly, soc ...

.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.

Modernised Customs Code

The Modernised Customs Code (MCC) was adopted under Regulation (EC) No 450/2008 of the European Parliament and of the Council of 23 April 2008 laying down the Community Customs Code (Modernised Customs Code). The MCC was primarily adopted to enable IT customs and trade solutions to be adopted. Deloitte Netherlands,
In 2016 the European Union will have a new Customs Code. But what’s new?
, published 17 December 2014, accessed 11 December 2023.

Union Customs Code

The Union Customs Code (UCC), intended to further modernise customs procedures, entered into force on 1 May 2016. This superseded the MCC. The European Commission has stated that the aims of the UCC are simplicity, service and speed. Implementation took place over a period of time and most aspects of implementation were complete by 31 December 2020, although some formalities managed by electronic systems may not be fully implemented until 2025. One major goal of the UCC is to progress towards the complete use of electronic systems for interactions between businesses and customs authorities, and between customs authorities, bringing all paper-based customs processes to an end.

Non-EU participants

and the

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

, 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 Büsingen am Hochrhein (, ; Alemannic: ', ), often known simply as Büsingen, is a German municipality () in the south of Baden-Württemberg with a population of about 1,548 inhabitants. It is an exclave of Germany and Baden-Württemberg, and ...

(German exclave within Switzerland, part of the Swiss Customs Area)Article 6 o
Council Directive 2006/112/EC
, 28 November 2006 *

Heligoland Heligoland (; , ; Heligolandic Frisian: , , Mooring Frisian: , ) is a small archipelago in the North Sea. The islands were historically possessions of Denmark, then became possessions of the United Kingdom from 1807 to 1890. Since 1890, the ...

(small German archipelago in the North Sea with VAT free status) *

Livigno Livigno (; local ; ) 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 first settlers were probably sh ...

(remote Alpine town in Italy with VAT free status) *

Ceuta Ceuta (, , ; ) is an Autonomous communities of Spain#Autonomous cities, autonomous city of Spain on the North African coast. Bordered by Morocco, it lies along the boundary between the Mediterranean Sea and the Atlantic Ocean. Ceuta is one of th ...

and

Melilla Melilla (, ; ) is an autonomous city of Spain on the North African coast. 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 part of the Province of Málaga un ...

(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 (; ) is a (municipality) of the Province of Como in the Italy, Italian region of Lombardy. Located on the shores of Lake Lugano, it is an enclave surrounded by the Switzerland, Swiss canton of Ticino. At its closest, the encla ...

(an exclave of Italy surrounded by Swiss territory) * the Italian waters of

Lake Lugano Lake Lugano ( or , from ; ) 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 between Lake Como and Lago Maggiore. It was cited for the first t ...

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 Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

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

The UK (including Northern Ireland) is no longer a member of the European Union Customs Union. However, there are special arrangements in place for Northern Ireland: its trade with

Great Britain Great Britain is an island in the North Atlantic Ocean off the north-west coast of continental Europe, consisting of the countries England, Scotland, and Wales. With an area of , it is the largest of the British Isles, the List of European ...

and its trade with the European Union are each now regulated by the

Brexit withdrawal agreement The Brexit withdrawal agreement, officially titled Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, is a treaty between the European Uni ...

(specifically the Northern Ireland Protocol and the Windsor Framework), the

EU–UK Trade and Cooperation Agreement The EU–UK Trade and Cooperation Agreement (TCA) is a free trade agreement signed on 30 December 2020, between the European Union (EU), the European Atomic Energy Community (Euratom), and the United Kingdom (UK). It Provisional application (tr ...

, the European Union (Future Relationship) Act 2020, the United Kingdom Internal Market Act 2020. 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 Above may refer to: *Above (artist) Tavar Zawacki (b. 1981, California) is a Polish, Portuguese - American abstract artist and internationally recognized visual artist based in Berlin, Germany. From 1996 to 2016, he created work under the ...

, the British Overseas Territory of Akrotiri and Dhekelia on the island of

Cyprus Cyprus (), officially the Republic of Cyprus, is an island country in the eastern Mediterranean Sea. Situated in West Asia, its cultural identity and geopolitical orientation are overwhelmingly Southeast European. Cyprus is the List of isl ...

are integral parts of the EU's customs territory (and remained so after

Brexit Brexit (, a portmanteau of "Britain" and "Exit") was the Withdrawal from the European Union, withdrawal of the United Kingdom (UK) from the European Union (EU). Brexit officially took place at 23:00 GMT on 31 January 2020 (00:00 1 February ...

Explanatory footnotes

References

External links

TARIC database enquiry system
gives current tariff rates applicable by exporting country and season

: 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 also published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, the paper is owned by a Jap ...

'', February 16, 2017 {{Foreign relations of the European Union Customs treaties European Union Customs Union European Union law

Customs Customs is an authority or Government agency, agency in a country responsible for collecting tariffs and for controlling International trade, the flow of goods, including animals, transports, personal effects, and hazardous items, into and out ...

Treaties of Andorra Treaties of Monaco Treaties of San Marino