Guidance

UK Trade Tariff: European Union and new member states

Updated 8 May 2024

This guidance will soon be removed. You should now refer to the guidance in CDS Declaration and Customs Clearance Request Instructions (UK Trade Tariff: volume 3 for CDS).

1. General

The European Union (EU) is a Customs Union. This means that the countries in full membership of the EU have no customs duty barriers between them but they all have a common customs duty tariff against goods from outside the EU. As a result, goods which are free from customs duty in one part of the EU (either because they originate there or because any customs duty due on them has already been paid) are free to circulate within the rest of the EU without any liability to pay further customs charges when they move from one member state to another. The EU’s common external tariff ensures that goods imported from non-EU countries are subject to the same customs duties wherever they enter the EU.

2. The Customs Territory of the EU

The Customs Territory of the EU shall comprise the territories of:

• Kingdom of Belgium
• Republic of Bulgaria
• Republic of Croatia
• Czech Republic
• Kingdom of Denmark, except the Faroe Islands and Greenland,
• Federal Republic of Germany, except the Island of Heligoland and the territory of Buesingen (treaty of 23 November 1964 between the Federal Republic of Germany and the Swiss Confederation)
• Republic of Estonia
• Hellenic Republic
• Kingdom of Spain, except Ceuta and Melilla
• French Republic, except the overseas territories and Saint-Pierre and Miquelon and Mayotte
• Ireland
• Italian Republic, except the municipalities of Livigno and Campione d’Italia and the national waters of Lake Lugano which are between the bank and the political frontier of the area between Ponte Tresa and Porto Ceresio
• Republic of Cyprus, in accordance with the provisions of the Act of Accession
• Republic of Latvia
• Republic of Lithuania
• Grand Duchy of Luxembourg
• Hungary
• Republic of Malta
• Kingdom of the Netherlands in Europe
• Republic of Austria
• Republic of Poland
• Portuguese Republic
• Republic of Romania
• Republic of Slovenia
• Slovak Republic
• Republic of Finland
• Kingdom of Sweden
• United Kingdom of Great Britain and Northern Ireland and of the Channel Islands and the Isle of Man

The following territories situated outside the territory of the member states shall, taking the conventions and treaties applicable to them into account, be considered to be part of the Customs Territory of the EU.

2.1 France

The territory of Monaco as defined in the Customs Convention signed in Paris on 18 May 1963 (Official Journal of the French Republic of 27 September 1963 p. 8679).

2.2 Cyprus

The territory of the United Kingdom Sovereign Base Areas of Akrotiri and Dhekelia as defined in the treaty concerning the Establishment of the Republic of Cyprus, signed in Nicosia on 16 August 1960 (United Kingdom Treaty Series No4 (1961) Cmnd. 1252).

The customs territory of the EU shall include the territorial waters, the inland maritime waters and the airspace of the member states, and the territories referred to in paragraph 2, except for the territorial waters, the inland maritime waters and the airspace of those territories which are not part of the customs territory of the EU.

Included are the:

• Isle of Man
• Austrian territories of Jungholz and Mittelberg
• territories of the Principality of Monaco
• Portuguese Islands of Azores and Madeira

Although included in the customs territory, the special territories of the EU which are excluded from the fiscal territory of the EU are:

• the Aland Islands (Finland)
• the Canary Islands (Spain)
• the Channel Islands
• the French Overseas Departments of Guadaloupe, French
• Guiana, Martinique, Mayotte and Reunion
• Mount Athos - also known as Agion Poros (Greece)

Excluded are the:

• Islands of Heligoland
• territory of Büsingen
• territory of the Republic of San Marino ^{[footnote 1]} and the national waters of Lake Lugano which are between the bank and the political frontier of the area between Ponte Tresa and Porto Ceresio
• Principality of Andorra ^{[footnote 2]}
• Vatican City

3. The Channel Islands

The Channel Islands (the islands of Jersey, Guernsey, Alderney, Sark and their respective dependencies) are part of the EU for Customs purposes but are not part of the fiscal (VAT) territory. All goods imported from the Channel Islands must be declared to Customs and are liable to import VAT.

For goods exported from the UK to the Channel Islands a non-statistical export declaration is required see section 2.1 of UK Trade Tariff - Exports. However, for consignments from certain south coast ports a combined ‘Consignment Note and Customs Declaration’ (CNCD) can be used. CNCD’s aren’t an acceptable method to discharge goods entered to Temporary Admission, Inward Processing, Customs Warehousing or Returned Goods Relief. You should consult the relevant notices for details of how to send goods to the Channel Islands.

When EU goods move direct between the Channel Islands and the UK (in either direction), no Union Transit or status documents are needed, as long as the movement is cleared at the frontier. Union Transit documentation will be required, however, if the goods are to be cleared inland in the UK or are to transit the UK to another member state of the EU.

4. The Isle of Man

As a general rule goods moving between the Isle of Man and the UK, including any goods previously imported from non-EU countries on which the proper duty and tax has been paid, are considered not to be imported into or exported from either the Isle of Man or the UK. These goods aren’t subject to customs control other than controls applicable to similar goods moving on the British mainland, for example warehouse goods. There are restrictions on the movement of explosives but other goods subject to import restrictions which complied with the requisite conditions when they were originally imported may be removed from the Isle of Man to the UK or vice versa without a further licence. Any explosives (within the meaning of the Explosives Act 1875) which are moved to the UK from the Isle of Man under the provisions of the Isle of Man Act 1979 are regarded in all circumstances as being imported into the UK and therefore subject to licensing control.

For community goods moving between places in the Isle of Man and the UK no community transit documentation is required. Community transit will be required, where appropriate, for goods moving between the Isle of Man and other member states and vice versa.

Read more in the Transit Manual.

5. EU goods

EU goods are eligible for EU treatment on arrival in any member state of the EU, so they may be admitted free of customs duty. The term ‘community goods’ means both goods originating in the EU and goods imported from non-EU countries which have been put into free circulation in the EU after the completion of import formalities and the payment of any customs duties and charges having equivalent effect. The term ‘goods in free circulation’ means goods imported into the EU on which import formalities have been complied with and any duties, or equivalent charges have been paid and not refunded.

5.1 Intrastat

Intrastat is the system for collecting statistics on the trade in goods between member states of the EU. It came into operation on 1 January 1993, replacing customs declarations as the source of trade statistics within the EU, and is an EU wide system, so requirements are similar in all member states. The supply of services is excluded from Intrastat.

In general, Intrastat movements equate to supplies (and corresponding acquisitions) under the arrangements for intra-EU VAT and are to be recorded using the same rules. This close link with the VAT system is an essential feature both lessening the burden on businesses of complying with Intrastat requirements and providing a means of checking the information supplied.

Businesses which aren’t registered for VAT and private individuals who move goods within the EU have no obligations under the Intrastat system.

Statistics on trade with non-EU countries will continue to be collected from customs declarations so this trade must not be declared under Intrastat.

How Intrastat operates

All VAT registered businesses must complete Boxes 8 and 9 on their VAT Returns showing the total value of goods supplied to other EU countries (known as dispatches) and the total value of goods acquired from other EU countries (known as arrivals). This requirement is explained in detail in Notice 700/12 How to fill in and submit your VAT Return.

As well as completing boxes 8 and 9 on their VAT Returns, larger businesses whose trade in goods (arrivals or dispatches) exceeds the legally set threshold must supply further information on their trade with other EU countries each month using supplementary declaration.

The threshold which applies separately to arrivals and dispatches, is reviewed annually and is subject to change. Amendments to the threshold are applied at the start of the calendar year. Businesses should ensure that they are aware of the threshold and submit Intrastat Returns when necessary.

The trade statistics are compiled from the detailed information provided by larger businesses on supplementary declarations and the totals of EU trade declared on VAT Returns by businesses below the threshold.

You can get information about the threshold from:

• the uktradeinfo website
• HMRC Trade Statistics on telephone: 03000 594250
• the Excise: enquiries helpline

Full details about the Intrastat system are in Notice 60: Intrastat general guide.

5.2 Classification of goods

Goods are classified using commodity codes (comprising for Intrastat purposes the first 8 digits of the commodity codes shown in the UK Trade Tariff). To assist in the classification of goods, an online directory of commodity codes, known as Intrastat classification nomenclature, is available on the uktradeinfo website.

6. The law

The basic legal framework for Intrastat is provided for in Council Regulation (EC) No 638/2004 (published in Official Journal L102 dated 07/07/04), as amended by Council Regulation (EC) No 222/2009 (published in Official Journal L87, dated 31.3.09).

This regulation is implemented by Commission Regulation (EC) No 1982/2004 (published in Official Journal L343, dated 19.11.04), as amended by Commission Regulation (EC) No 1915/2005 (published in Official Journal L307, dated 25.11.05), Commission Regulation (EU) No 91/2010 (published in Official Journal L31, dated 3.2.10) and Commission Regulation (EU) No 96/2010 (published in Official Journal L34, dated 5.2.10).

There are additionally UK Statutory Instruments enabling regulations which provide powers to manage Intrastat in the UK.

Customs procedures for goods received from, or sent to other member states are given in other parts of volume 1 and volume 3 of the UK Trade Tariff. More detailed information is in the Transit Manual and the Transit Manual Supplement.

6.1 National taxes

The term European Union (or EU) goods refers to the status of goods in relation to customs duties and agricultural charges but does not affect the liability of goods to national taxes such as VAT or excise duties. Although goods may be EU goods or in free circulation they will, on arrival from another member state, still be liable to national taxes including excise duties and VAT.

6.2 Controls in intra-EU trade

There are no controls on the vast majority of EU goods moving within the EU. However, as non-EU goods can be in transit in the EU without the payment of duty and Common Agricultural Policy charges due on them, some controls remain on these goods moving within the EU.

Read more about Community Transit in Volume 3 of the UK Trade Tariff.

6.3 Prohibitions and restrictions

Even though there’s free circulation of goods within the EU, member states may impose restrictions or prohibitions, for example, for reasons of health, public morality and security. Additionally, they may be authorised under Article 115 of the Treaty of Rome or Article 71 of the Treaty of Paris in special circumstances to restrict the importation via other member states of certain non-EU goods, even if they have been put into free circulation.

6.4 Enlargement of the EU

From 1 January 2007 the EU extended its membership to 27 countries, bringing in Bulgaria and Romania as new members. From that date, the Customs Territory of the European Union also included the territories of these countries. A strengthened pre-accession strategy for Turkey is being implemented.

The UK’s Sovereign Base Areas in Cyprus will continue to remain outside the EU, after Cyprus’ accession to the EU, although they will form part of the EU customs territory.

1. There is a Customs Union between the Republic of San Marino and the EU. ↩

2. There is a Customs Union between the Principality of Andorra and the EU for goods in Chapters 25–97 of the Harmonised System. ↩