Customs union

A customs union is created when a group of countries join together to apply the same rates or import duties on goods from the rest of the world. The countries within that union also agree not to apply customs duties between themselves. Essentially, once goods have passed customs they can move freely between those countries.

The EU’s Customs Union is a unique example. Within the EU’s Customs Union, the 27 EU Member States apply a uniform system for handling the import, export and transit of goods and implement a common set of customs rules called the Union Customs Code (UCC). The Code entered into force on 1 May 2016, but some transitional arrangements still apply. A uniform system of customs duties applies on imports from outside the EU and there are no customs duties at the borders between Member States.

The EU Customs Union is essential for the proper functioning of the single market. In practice, national customs authorities in all 27 Member States work together as one to manage the day-to-day operations of the Customs Union. The European Commission proposes EU customs legislation and monitors its implementation.

In September 2020, the Commission launched a Customs Action Plan to take the EU Customs Union to the next level. The Action Plan put forward steps to make EU customs smarter, more innovative and more efficient, such as improved use of data, better tools and equipment, promoting compliance, more cooperation within the EU and with customs authorities of partner countries, and better preparation for future crises.

SEE ALSO

• EU trade policy
• Internal market
• Member States
• Own resources
• Union Customs Code (summary)
• Calculation of customs duties (European Commission)
• Customs (European Commission)
• The Union Customs Code (UCC) — Introduction (European Commission).