The Minister for External Relations has today signed a Jersey/UK Customs Arrangement that establishes a customs union between Jersey and the UK. Similar arrangements were agreed in parallel between the UK and Guernsey, and the UK and the Isle of Man.
Collectively, these arrangements will establish a UK-Crown Dependencies customs union, which the States said is essential for us to trade under a number of different scenarios after the UK leaves the EU.
The two essential elements of establishing a customs union are that the parties agree not to impose import tariffs for goods passing between themselves, and to impose a common external tariff on goods from places outside the customs union.
The arrangement means Jersey will be able to continue to trade with the UK free of tariffs, with no restrictions on quantities.
Jersey and the UK are currently in a customs union with the EU and apply the EU’s common external tariff, but that will change on leaving the EU Customs Union.
While it has been the case for several centuries that neither the UK nor Jersey has imposed import tariffs on goods produced in the other’s territory, after leaving the customs union it will be essential to put in place a practical mechanism whereby we will impose the same common external tariffs as the UK on goods traded at the border.
Other issues agreed
• Tariff-free movement of all types of good between Jersey and the UK, with no quantitative restrictions on imports
• The ability to impose prohibitions or restrictions at border for specific reasons
• Participation in a new joint UK-Crown Dependencies Customs Committee
• Retention of Jersey’s autonomy in fiscal matters
• Autonomy in maintaining local customs IT systems
Jersey’s Minister for External Relations, Senator Ian Gorst (pictured), said: “Lord Keen wrote to me last week about the unprecedented level of cooperation between us and I am pleased that the signing of this customs arrangement has been an important success in our centuries-old constitutional relationship. This arrangement also lays the basis for a positive outcome for our future relationship with the EU.
“I lodged the draft EU law on Customs, Import and Export Control in October, and this will be debated on 4 December. These regulations, if approved, will create the powers necessary to implement the customs union with the UK that has just been agreed.”