European Union Customs Union
European Union common customs area
The European Union Customs Union (EUCU) is a customs union which consists of all the member states of the European Union (EU), Monaco, and the British Overseas Territory (BOT) of Akrotiri and Dhekelia. Some detached territories of EU states do not participate in the customs union, usually as a result of their geographic separation. In addition to the EUCU, the EU is in customs unions with Andorra, the BOT of Gibraltar, San Marino and Turkey (with the exceptions of certain goods), through separate bilateral agreements.
There are no tariffs or non-tariff barriers to trade between the members of the customs union and—unlike a free trade area—members of the customs union impose a common external tariff on all goods entering the union.
The European Commission negotiates for and on behalf of the Union as a whole international trade deals under the EU's Common Commercial Policy, rather than each member state negotiating individually. The Commission also represents the Union in the World Trade Organization and any trade disputes mediated through it.
Common external tariffs
The EU Customs Union sets the tariff rates for imports to the EU from other countries. These rates are detailed and depend on the specific type of product imported, and can also vary by the time of year. The full WTO Most Favoured Nation tariff rates apply only to those countries that do not have a Free Trade Agreement with the EU, or are not on a WTO recognised exemption scheme such as Everything but Arms (an EU support arrangement for least developed countries).
Union and common transit
Union transit, formerly called "Community transit", is a system generally applicable to the movement of non-Union goods for which customs duties and other charges due on import have not been paid, and of Union goods, which, between their point of departure and point of destination in the EU, have to pass through the territory of a third country.
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