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New customs arrangements for Crown Dependencies

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The UK has signed new customs arrangements with the governments of Jersey, Guernsey and the Isle of Man to establish a new ‘UK/Crown Dependencies Customs Union’, which will come into force when the UK leaves the EU. The arrangement with the Isle of Man amends the 1979 revenue-sharing agreement in relation to customs matters, but makes no changes to existing arrangements for VAT and excise duties.

The new arrangements are intended to ensure that, when the UK leaves the EU, traders moving goods between the UK and Crown Dependencies will continue to pay no customs duty, and the UK and the Crown Dependencies will maintain a common external tariff.

The text of these arrangements has been included in schedules to three draft Orders, the draft Crown Dependencies Customs Union (Jersey) (EU Exit) Order 2018, draft Crown Dependencies Customs Union (Guernsey) (EU Exit) Order 2018, and draft Crown Dependencies Customs Union ((Isle of Man) (EU Exit) Order 2018. An exchange of letters between the UK and each Crown Dependency will bring the new arrangements into force.

The financial secretary to the Treasury, Mel Stride, said: ‘These new agreements place our customs relationships on a firm footing for the future, and reflect the shared objective of the UK and Crown Dependency governments to ensure a continuation of our current customs relationships when the UK leaves the EU’.

The government has also stated that the new arrangements ‘are compatible with any future agreement on customs reached with the EU’.


Issue: 1423
Categories: News