United Kingdom–Crown Dependencies Customs Union | |
|---|---|
The British Islands on a map: United Kingdom Crown Dependencies | |
| Type | Customs union |
| Members | |
| Establishment | 2020 |
| Area | |
• Total | 243,263[a] km2 (93,924 sq mi) (Unranked) |
| Population | |
• Estimate | 68,393,154 |
| GDP (PPP) | estimate |
• Total | £2,288,612 trillion ($3,185,015 trillion)[b] |
| Currency |
|
TheUnited Kingdom–Crown Dependencies Customs Union (UK-CD Customs Union) orcustoms arrangements with theCrown Dependencies is acustoms union that covers theBritish Islands.[4][d]
On 1 January 2021, the United Kingdom extended its membership of theWorld Trade Organization (WTO) to theChannel Islands.[6][7][8]
Prior tothe 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.[9]
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.[10]
On 29 December 2020, the UK–Crown Dependencies Customs Agreements took effect and officially created a customs union between the UK and Crown Dependencies.[11]
ThoughNorthern Ireland is considered an integral part of theUnited Kingdom and is not part of the European Union, to maintain a peaceful resolution of theNorthern Ireland Conflict, it has an open border with theRepublic of Ireland, which is part of the European Union single market. TheNorthern Ireland Protocol, which first came into effect on 24 March 2023, regulates inter-island trade to support this arrangement. Internal shipments fromGreat Britain toNorthern Ireland are regulated as imports to the EU, but shipments from Northern Ireland can enter the rest of UK customs union barrier-free.
On 26 September 2023, the UK Treasury made The Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023. This is a statutory instrument (2023 No. 958) The new regulations updated the UK's customs duty rules for goods moving between Great Britain and Northern Ireland and created a wider definition to determine whether food is at risk of entering the EU.[12]
The customs agreements:
These agreements also state that they may be terminated at any time by mutual agreement.[14]
On 29 December 2020, the United Kingdom became an independent member ofCommon Transit Convention; 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.[15]
Paragraphs 10 to 12 provide that members of the customs union will align with the UK in areas ofcustoms laws, rules and procedures.[16]
The customs agreements created a joint customs committee (UK-CD Customs Committee).[10] This committee will meet at least once a year and will act as a forum for:
In 2020 theUK government passed the Customs (Tariff Quotas)(EU Exit) Regulations 2020. The purpose of this regulation is to update definitions in customs legislation.[17]
a new Customs Arrangement (the "UK-CD Customs Union") between the UK and the Crown Dependencies, enabling the Islands to enjoy the benefit of free trade agreements entered into by the UK
participation in a new Joint UK CD Customs Committee
[13]Quantitative restrictions
Article XI of the GATT 1994 is the main provision regulating quantitative restrictions (QRs). The scope of this provision includes all prohibitions or restrictions other than tariffs or other taxes applied or maintained by a WTO Member on the importation or exportation of goods, which can be made effective through quotas, import or export licensing procedures, or other measures. Although Article XI of the GATT provides for the general elimination of quantitative restrictions, they are allowed in certain specific circumstances. Members' QR notifications seek to provide transparency on these measures, including on its WTO justification.