European Customs Union
The European Union Customs Union is an alliance formed by the members of the European Union that fulfill two primary functions for its members: It ensures the tariff-free movement of goods within the territory, whether those goods are made within the union or imported, and implements standardized rates of customs duties on goods imported from outside the union. The European Union Customs Union is an alliance formed by the members of the European Union that fulfill two primary functions for its members: It ensures the tariff-free movement of goods within the territory, whether those goods are made within the union or imported, and implements standardized rates of customs duties on goods imported from outside the union. Environmental protection through the prevention of smuggling of endangered or protected plants, animals, or prohibited products such as ivory. Cooperation with law enforcement officials to clamp down on illegal activity such as drugs or weapon trafficking, money laundering, tax evasion and the trading of counterfeit goods. Although both the EU Customs Union and the European Single Market are formed primarily by the member states of the EU, there are some fundamental differences between these two entities. While the Customs Union regulates international trade deals and handles imports from outside the union, the Single Market requires a much greater level of integration of policies focused on the free movement of labor, working conditions, and health and safety standards within the region. Because it is not a member of the Union, Norway may only circulate domestically produced goods within the Single Market on a tariff-free basis and must prove the origin of these goods.
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What Is the European Customs Union?
The European Union Customs Union is an alliance formed by the members of the European Union that fulfill two primary functions for its members: It ensures the tariff-free movement of goods within the territory, whether those goods are made within the union or imported, and implements standardized rates of customs duties on goods imported from outside the union. The EU Customs Union also enforces a comprehensive system of regulations for the region's imports and exports.
Understanding European Customs Union
Administered by the European Commission, the duties of the EU Customs Union are implemented by the national customs offices of all member nations — a total of 28 countries pre-Brexit. The officials of EU Customs handle the logistics of a huge volume of imported goods to the EU. These imports account for approximately 15% of all imports around the world. In 2019, the value of the EU trade with other countries amounted to EUR 4.09 trillion.
EU Customs is also responsible for enforcing rules designed to maximize security within the union. These rules focus on the following areas:
Differences Between the European Customs Union and the Single Market
Although both the EU Customs Union and the European Single Market are formed primarily by the member states of the EU, there are some fundamental differences between these two entities.
It is possible for a country to be a member of the Single Market but not the Customs Union and vice versa. While the Customs Union regulates international trade deals and handles imports from outside the union, the Single Market requires a much greater level of integration of policies focused on the free movement of labor, working conditions, and health and safety standards within the region.
Norway is an example of a country that is not a part of the EU Customs Union but is a member of the Single Market. Norway sets its own trade agreements for imports from outside the union but must comply with EU regulations when moving goods and people within the Single Market. Because it is not a member of the Union, Norway may only circulate domestically produced goods within the Single Market on a tariff-free basis and must prove the origin of these goods.
Turkey, Andorra, and San Marino are not part of the EU or the Single Market. However, the European Union has customs union agreements with these countries.
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Article 50
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Brexit (British Exit from the European Union)
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Certificate of Origin (CO)
A certificate of origin is a document declaring in which country a commodity or good was manufactured. read more
Eurasian Economic Union (EAEU)
The Eurasian Economic Union is an international economic union and free trade zone comprising countries in central and northern Asia and Eastern Europe. read more
European Community (EC)
The European Community (EC) was formed in 1957 by six European countries with the goal of providing economic stability and preventing future wars. read more
European Union (EU)
The European Union (EU) is a group of countries that acts as one economic unit in the world economy. Its official currency is the euro. read more
Import Duty
Import duty is tax collected on imports and some exports by a country's customs authorities to raise state revenues. Import duty may also be referred to as customs duty, tariff, import tax or import tariff. read more
International Commerce
International commerce is trade between companies in different countries, or just trade between different countries. read more
Single Market
The European Single Market is an entity created by a trade agreement between participating states. read more