• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About
  • Gowling WLG
  • Legal information
  • Privacy statement
  • Cookie Policy
  • Home
  • About
  • Posts
  • Blogs
    • B2022
    • The IP Blog
    • Public Law & Regulation
    • AI
    • The UPC Blog

LoupedIn

What is the Customs Union?

Published on July 4, 2019 by Ursula Johnston

What is the Customs Union?

As we continue to navigate the uncertainty that Brexit brings to trade, it’s essential to understand what the Customs Union is and how the current landscape could change if and when the UK departs from the EU.

A unique global convention, the European Union (EU) Customs Union is an alliance between the 28 member states of the EU that ensures the tariff free movement of goods across the territory. It also applies a uniform system of customs duties on goods imported from outside the union. In practice, this means duty on goods from outside the EU is generally paid when they first enter, but there are subsequently no further fees or checks and all goods are able to move freely within the EU thereafter.

The EU is also part of three other customs unions with Andorra, San Marino and Turkey through separate bilateral agreements.

Difference between a customs union and free trade area

What distinguishes a customs union from a free trade area, is the ability to set common external tariffs. A free trade area allows member states to trade feely with each other while still being able to set their own tariffs on goods from the rest of the world.

The EU is one of the largest traders in the world, with a 15% share of the global trade market according to latest figures from the European Commission. In 2016, the value of EU trade with other countries amounted to EUR 3.5 trillion (1.71 trillion for imports and 1.75 trillion for exports).

Advantages and disadvantages of a customs union

British advocates of remaining in the EU Customs Union contend that if the UK were to leave, there would be much more paperwork for UK businesses to complete, and it could make border issues involving Northern Ireland and the Irish Republic much more complicated. Conversely, those who want to leave the convention say it would make it possible to negotiate big-ticket trade deals with countries that fall outside the union.

Under a no-deal exit, the UK would leave the customs union and single market overnight to begin trading with the EU due to World Trade Organisation rules.

As things currently stand, this is now the default legal outcome to the Brexit process unless the UK signs up to Theresa May’s existing withdrawal agreement, the EU grants the UK another extension to the Brexit process or the UK withdraws its notice of intention to leave in advance of 31 October this year.

Brexit and business

While the circumstances of the UK’s departure from the EU remain unclear, it is vital that businesses consider the potential outcomes and take action to prepare.

Our dedicated Brexit Unit helps our clients to navigate this period of uncertainty and plan for the future, providing advice in areas such as strategic planning, contingency risk management and managing transactions.

If you would like to discuss your plans for Brexit, please contact a member of the team.

Ursula Johnston

Filed Under: Opinion Tagged With: Brexit, Customs Union, Trade & Competition

Views expressed in this blog do not necessarily reflect those of Gowling WLG.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Primary Sidebar

Recent Posts

  • MIPIM 2023: Key topics shaping the future of real estate
  • Climate change – New report highlights areas for scaling up action
  • Transferring data out of China? Understand the key points from the Chinese Standard Contractual Clauses

Tags

apprenticeships (5) Artificial Intelligence (AI) (52) Autonomous vehicles (11) b2022 (18) Birmingham 2022 (8) Birmingham 2022 Commonwealth Games (14) brand protection (5) Brexit (23) china (5) Climate change (13) COP26 (11) COP27 (6) Copyright (8) COVID-19 (23) Cyber security (5) Data protection (6) Employment (13) employment law (9) Environment (8) ESG (21) ESG and pensions (9) financial services (5) Intellectual Property (59) IP (9) Life sciences (6) net zero (6) Patents (28) Pensions (41) Pension scams (5) Pension Schemes Act 2021 (11) Pensions dashboards (7) Pensions in 2022 (10) Pensions law (31) Procurement (7) Public Law & Regulation (39) Real Estate (17) Retail (6) sustainability (7) Tech (45) The Week In Pensions (11) Trademarks (13) UK (15) unified patents court (9) UPC (24) Week in HR (8)

Categories

Archives

Gowling WLG is an international law firm comprising the members of Gowling WLG International Limited, an English Company Limited by Guarantee, and their respective affiliates. Each member and affiliate is an autonomous and independent entity. Gowling WLG International Limited promotes, facilitates and co-ordinates the activities of its members but does not itself provide services to clients. Our structure is explained in more detail on our Legal Information page.

Footer

LoupedIn is the Official Gowling WLG Blog. Gowling WLG is an international law firm comprising the members of Gowling WLG International Limited, an English Company Limited by Guarantee, and their respective affiliates. Each member and affiliate is an autonomous and independent entity. Gowling WLG International Limited promotes, facilitates and co-ordinates the activities of its members but does not itself provide services to clients. Our structure is explained in more detail on our Legal Information page.

  • Home
  • About
  • Gowling WLG
  • Legal information
  • Privacy statement
  • Cookie Policy

© 2023 Gowling WLG

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT