The European Customs Union: Benefits and Functioning

What is the European Customs Union?

The European Customs Union was established in 1968 as a key measure for economic integration in Europe. This group operates under the principle of a single customs territory, which allows the free movement of goods between its member countries without the imposition of tariffs or quotas. In addition, a common external tariff is applied to all goods imported from third countries, thus equitably distributing the revenue obtained from these imports. The EU has the European Commission as its executive body in this area, responsible for supervising and controlling customs processes at the continental level.

Benefits of the European Customs Union

Stimulation of intra-European trade

By removing tariff barriers between member countries, the Customs Union encourages trade and economic cooperation within Europe. This motivates European companies to expand in the single market, translating into more business opportunities, growth, and employment for citizens.

Cost reduction and simplification of customs processes

The unification of processes and regulations allows companies to reduce costs and time associated with customs clearance. It also makes it easier to comply with applicable laws and speeds up the resolution of disputes concerning rights and taxes.

Protection of the local economy and consumers

The application of the common external tariff protects local industries from unfair competition from third countries, ensuring the maintenance of quality and safety standards in imported products. Similarly, it supports the implementation of environmental and social policies stipulated by the EU, ensuring that international trade respects ethical and sustainable principles.

Operation of the European Customs Union

Single Taxation System

Within the single customs territory, there are no fees on goods originating from member countries. Likewise, a common taxation system on imports from outside the EU, known as the Common Customs Tariff (CCT), is established. This tariff is applied by all member countries and their revenues are distributed among them according to stipulated quotas.

Rules of Origin

In order to grant tariff benefits to European goods, they must meet certain requirements established in the Rules of Origin, which determine whether a product qualifies as "originating" from a specific member country. These rules include criteria for production, transformation, or acquisition in any nation of the Customs Union or the incorporation of certain local raw materials.

Customs Control and Cooperation between Authorities

The customs authorities of each member country cooperate and share information to ensure compliance with the trade and security policies established by the EU. This includes the inspection of goods, entry and exit of individuals, control of illicit traffic, and collaboration in the investigation of crimes related to international trade. The European Commission also develops programs and technological tools to improve the effectiveness and agility of these procedures.

Challenges of the European Customs Union

Brexit and possible future exits

The departure of the United Kingdom from the EU has highlighted the challenges faced by the Customs Union regarding the permanence and harmonization of its trade policies. Changes in the outer borders can create inconveniences and delays in the transit of goods, affecting European businesses and consumers.

E-commerce

The exponential growth of e-commerce poses new challenges for European customs, such as the control of goods imported via parcel post, the identification of counterfeit products, or compliance with health and environmental measures. This requires constant modernization of customs processes and increased collaboration between member countries and with third parties.

Globalization and international trade relations

The EU must adapt and evolve in the face of international trade agreements and new global economic configurations, such as the emerging role of China in world trade. This adaptation involves finding a balance between protecting local economies and industries and creating growth opportunities through integration into foreign markets.