Similar arrangements have been 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.
The two essential elements of establishing a customs union are that the parties agree:
- not to impose import tariffs for goods passing between themselves
- 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.
In a statement, the States said: ‘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.’
The States have also agreed to the following:
• tariff-free movement of all types of goods 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 CD Customs Committee
• retention of Jersey’s autonomy in fiscal matters
• autonomy in maintaining local customs IT systems
