European Union Customs Union#Modernised Customs Code

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.[https://circabc.europa.eu/faces/jsp/extension/wai/navigation/container.jsp Taric and Quota Data & Information] {{Webarchive|url=https://web.archive.org/web/20190724094042/https://circabc.europa.eu/faces/jsp/extension/wai/navigation/container.jsp |date=24 July 2019 }} – European Commission Communication and Information Resource Centre for Administrations, Businesses and Citizens. The full WTO 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 (an EU support arrangement for Least Developed Countries).

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 on 30 January 2019 with the Secretariat of the Council of the EU.European Union, [https://ec.europa.eu/taxation_customs/business/customs-procedures/what-is-customs-transit/common-union-transit_en Union and Common Transit] {{Webarchive|url=https://web.archive.org/web/20200809064401/https://ec.europa.eu/taxation_customs/business/customs-procedures/what-is-customs-transit/common-union-transit_en |date=9 August 2020 }}, accessed 24 December 2020 50px Text was copied from this source, which is available under a [https://creativecommons.org/licenses/by/4.0/ Creative Commons Attribution 4.0 International License] {{Webarchive|url=https://web.archive.org/web/20171016050101/https://creativecommons.org/licenses/by/4.0/ |date=16 October 2017 }}. 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 European Parliament, [http://www.europarl.europa.eu/comparl/tempcom/transit/kelletta/default_en.htm Report on the Community Transit System] {{Webarchive|url=https://web.archive.org/web/20220119134559/https://www.europarl.europa.eu/comparl/tempcom/transit/kelletta/default_en.htm |date=19 January 2022 }}, 20 February 1997, accessed 31 January 2017 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.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.

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).OJ L 145, published 4 June 2008 The MCC was primarily adopted to enable IT customs and trade solutions to be adopted.Deloitte Netherlands, "[https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/tax/deloitte-nl-tax-in-2016-the-european-union-will-have-a-new-customs-code.pdf In 2016 the European Union will have a new Customs Code. But what’s new?]", published 17 December 2014, accessed 11 December 2023.

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.{{cite web |url=http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/ucc/index_en.htm |title=Union Customs Code |website=Taxation and customs union – European Commission |access-date=25 May 2016 |archive-date=17 August 2016 |archive-url=https://web.archive.org/web/20160817170628/http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/ucc/index_en.htm |url-status=live }} 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.European Commission, "[https://ec.europa.eu/taxation_customs/business/union-customs-code/ucc-introduction_en The Union Customs Code (UCC) – Introduction]". {{Webarchive|url=https://web.archive.org/web/20190531133020/https://ec.europa.eu/taxation_customs/business/union-customs-code/ucc-introduction_en |date=31 May 2019 }}, accessed 29 March 2023.

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.European Commission, "[https://taxation-customs.ec.europa.eu/system/files/2018-03/amendment_ucc_20180302_en.pdf Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 952/2013 to prolong the transitional use of means other than the electronic data-processing techniques provided for in the Union Customs Code]", COM(2018) 85 final, published 2 March 2018, accessed 29 March 2023. {{Webarchive|url=https://web.archive.org/web/20230605010004/https://taxation-customs.ec.europa.eu/system/files/2018-03/amendment_ucc_20180302_en.pdf |date=5 June 2023 }}.

Monaco and the British Overseas Territory of Akrotiri and Dhekelia are integral parts of the EU's customs territory.[https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A12019W%2FTXT%2802%29#d1e32-136-1 Protocol relating to the Sovereign Base Areas of the United Kingdom of Great Britain and Northern Ireland in Cyprus] {{Webarchive|url=https://web.archive.org/web/20211011004430/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A12019W%2FTXT%2802%29#d1e32-136-1 |date=11 October 2021 }}, 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.

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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.[https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/territorial-status-eu-countries-certain-territories_en Territorial status of EU countries and certain territories] {{Webarchive|url=https://web.archive.org/web/20210703170944/https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/territorial-status-eu-countries-certain-territories_en |date=3 July 2021 }}{{snd}} European Commission, 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 of [http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A32006L0112 Council Directive 2006/112/EC] {{Webarchive|url=https://web.archive.org/web/20190629071431/http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A32006L0112 |date=29 June 2019 }}, 28 November 2006{{cite web |url=https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0952&rid=1 |title=REGULATION (EU) No 952/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 9 October 2013 laying down the Union Customs Code, Article 4 |page=11 |format=PDF |publisher=EURLEX |date=October 2013 |access-date=2018-12-17 |archive-date=14 August 2019 |archive-url=https://web.archive.org/web/20190814205125/https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0952&rid=1 |url-status=live }}
• Heligoland (small German archipelago in the North Sea with VAT free status)
• Livigno (remote Alpine town in Italy with VAT free status)
• Ceuta and Melilla (Spanish territories in Africa with VAT free status).

The following territories were excluded until the end of 2019:

• Campione d'Italia (an exclave of Italy surrounded by Swiss territory)
• the Italian waters of Lake Lugano

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

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.

{{further|Brexit and the Irish border}}

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 and its trade with the European Union are each now regulated by the Brexit withdrawal agreement (specifically the Northern Ireland Protocol and the Windsor Framework), the EU–UK Trade and Cooperation Agreement, 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.

{{Main|Effect of Brexit on 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.{{cite news |url=https://english.elpais.com/brexit/2021-01-11/deal-between-spain-and-uk-plans-to-eliminate-gibraltar-border-checkpoint.html |title=Deal between Spain and UK plans to eliminate Gibraltar border checkpoint |first1=Maria |last1=Martin |first2=Miguel |last2=González |work=El País |location=Madrid |date=11 January 2021 |access-date=29 January 2021 |archive-date=25 May 2023 |archive-url=https://web.archive.org/web/20230525210222/https://english.elpais.com/brexit/2021-01-11/deal-between-spain-and-uk-plans-to-eliminate-gibraltar-border-checkpoint.html |url-status=live }} These would be "substantially similar" to those within the Customs Union. {{as of|April 2024}}, the agreement has not yet been concluded.

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 (and remained so after Brexit).

• {{Annotated link |Community preference}}
• {{Annotated link |European Union value added tax}}
• EU VAT area
• {{Annotated link |European Customs Information Portal}}
• European Economic Area (EU and EFTA except Switzerland)
• European Free Trade Association (EFTA)
• {{Annotated link |European integration}}
• {{Annotated link |European Single Market}}
• {{Annotated link |European Union–Turkey Customs Union}}
• {{Annotated link |Free trade areas in Europe}}
• {{Annotated link |Free-trade area}}
• {{Annotated link |Market access}}
• {{Annotated link |Non-tariff barriers to trade}}
• {{Annotated link |Rules of origin}}
• {{Annotated link |Tariff}}

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• [http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp TARIC database enquiry system], gives current tariff rates applicable by exporting country and season{{snd}}European Commission: Communication and Information Resource Centre for Administrations, Businesses and Citizens.
• [https://circabc.europa.eu/faces/jsp/extension/wai/navigation/container.jsp TARIC and Quota Data & Information]: user guides for the TARIC database above{{snd}}European Commission: Communication and Information Resource Centre for Administrations, Businesses and Citizens.
• [https://www.ft.com/content/b4458652-f42d-11e6-8758-6876151821a6 "Turkey border gridlock hints at pain to come for Brexit Britain"]. Financial Times, February 16, 2017

{{Foreign relations of the European Union}}

Category:Customs treaties

Category:European Union Customs Union

Category:European Union law

Customs

Category:Treaties of Andorra

Category:Treaties of Monaco

Category:Treaties of San Marino