UK agrees customs arrangements with crown dependencies

Reporter, Accountancy Daily [2010-2021]

27 Nov 2018

The UK has signed a series of arrangements with the crown dependencies to maintain and reaffirm its close customs relationships, which will come into force when they and the UK leave the EU customs union

The arrangements, signed with Jersey, Guernsey and the Isle of Man are designed to ensure that, post Brexit, traders moving goods between the UK and crown dependencies (and vice versa) will continue to pay no customs duty and the UK and the crown dependencies will maintain a common external tariff.

Mel Stride, financial secretary to the Treasury 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 UK's current membership of the the EU means that certain rules extend to the Isle of Man, despite the island not being part of the EU. Britain's impending exit from the customs agreement means that this status would have been rescinded.
 
The arrangement with the Channel Islands means that the islands will become part of customs union arrangements, creating a United Kingdon and Crown Dependencies Customs Union.
 
The Treasury said these new arrangements are compatible with any future agreement on customs reached with the EU, given that the UK continues to work towards agreeing a deal on the terms of its exit.
 
In the case of the Isle of Man - where there is an existing agreement covering customs, VAT and excise matters - modifications have been made to the customs aspects of the agreement but existing arrangements for VAT and excise-related issues remain unchanged.
 
Report by Pat Sweet

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

View profile and articles

0
Be the first to vote

Rate this article

TaxInternational taxVATTax complianceTax planningInsightBusinessBrexit
Related Articles
Subscribe