In this article, we will thoroughly explore the importance of European Union Customs Union in modern society. European Union Customs Union is a topic that has captured the attention of experts and fans alike, generating intense debate and analysis in multiple fields of study. From its impact on the economy to its influence on popular culture, European Union Customs Union has been the subject of endless research and reflections. In this article, we will examine how European Union Customs Union has shaped the world today and what implications it has for the future. In addition, we will analyze various perspectives on European Union Customs Union, providing a comprehensive and enriching vision of this topic that is so relevant today.
The European Union Customs Union (EUCU), formally known as the Community Customs Union, is a customs union which consists of all the member states of the European Union (EU), Monaco, and the British Overseas Territory of Akrotiri and Dhekelia. 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, San Marino and Turkey (with the exceptions of certain goods), through separate bilateral agreements.
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 WTOMost 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 (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. 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 for a European Parliament 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 and smuggling. Kellett-Bowman's report led to the European Union setting up a customs investigation body and computerising transit-monitoring systems.
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.
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.
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.
However, some territories within the EU do not participate in the customs union for tax and/or geographical reasons:
Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 on implementing the final phase of the Customs Union
31 December 1995
Excludes agricultural produce
Special arrangements concerning territories of the United Kingdom
The United Kingdom of Great Britain and Northern Ireland 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.
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. As of April 2024 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 are integral parts of the EU's customs territory.
^Erskine, Daniel H (2006). "The United States-EC Dispute Over Customs Matters: Trade Facilitation, Customs Unions, and the Meaning of WTO Obligations". Florida Journal of International Law. 18: 432–485. SSRN987367.
^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.
^Neil Buckley, "EU plans single body against smuggling", Financial Times, 13 March 1997, p. 2.
^Protocol No. 3 on the Sovereign Base Areas of the United Kingdom of Great Britain and Northern Ireland in CyprusArchived 13 November 2020 at the Wayback Machine, Act concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic and the adjustments to the Treaties on which the European Union is founded, EUR-Lex, 23 September 2003.
TARIC database enquiry system, gives current tariff rates applicable by exporting country and season – European Commission: Communication and Information Resource Centre for Administrations, Businesses and Citizens.
TARIC and Quota Data & Information: user guides for the TARIC database above – European Commission: Communication and Information Resource Centre for Administrations, Businesses and Citizens.