European Union Customs Union


The European Union Customs Union is a customs union which consists of all the member states of the European Union, Monaco and until the end of its Brexit transition period the United Kingdom and some of its dependencies. Some detached territories of EU members 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, through separate bilateral agreements.
There are no tariffs or non-tariff barriers to trade between members of the customs union and unlike a free-trade area members of the customs union impose a common external tariff on all goods entering the union.
The European Commission 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 and any trade disputes mediated through it.
During the Brexit transition period the United Kingdom continues to function as a part of the Customs Union., the United Kingdom's relationship with the European Union after the end of the transition period remains to be negotiated.

Non-EU participants

, the United Kingdom, and the British dependencies of Akrotiri and Dhekelia, Guernsey, the Isle of Man and Jersey are integral parts of the EU's customs territory.
State / territoryAgreementEntry into forceNotes
MonacoFranco-Monegasque Customs Convention1963
United Kingdom
including,
the,
Jersey, and Guernsey		Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community1 February 2020Ends on 31 December 2020

Bilateral customs unions

Andorra, San Marino and Turkey, a candidate for EU membership, are each in a customs union with the EU.
StateAgreementEntry into forceNotes
Agreement in the form of an Exchange of Letters between the European Economic Community and the Principality of Andorra – Joint Declarations1 January 1991Excludes agricultural produce
Agreement on Cooperation and Customs Union between the European Economic Community and the Republic of San Marino1 April 2002
TurkeyDecision No 1/95 of the EC-Turkey Association Council of 22 December 1995 on implementing the final phase of the Customs Union31 December 1995Excludes agricultural produce

EU territories with an opt-out

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 generally do not participate in the customs union.
However, some territories within the EU do not participate in the customs union:
The following are not listed in Regulation 952/2013 but may be non-participant in some aspects for other reasons:
The Union Customs Code, intended to modernise customs procedures, entered into force on 1 May 2016. Implementation will take place over a period of time and full implementation is anticipated by 31 December 2020 at the latest. The European Commission has stated that the aims of the UCC are simplicity, service and speed.

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 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.

Footnotes