The government has today signed new arrangements with each of the Crown Dependencies (the Bailiwick of Jersey, the Bailiwick of Guernsey and the Isle of Man) to maintain and reaffirm our close customs relationships.
This ensures that, when the UK leaves the EU, traders moving goods between the UK and Crown Dependencies (and vice versa) will continue to pay no customs duty and the UK and the Crown Dependencies will maintain a common external tariff.
The new arrangements will come into force when the UK, alongside the Crown Dependencies, leaves the EU Customs Union.
Financial Secretary to the Treasury Mel Stride said:
These new agreements place our customs relationships on a firm footing for the future, and reflect the shared objective of the UK and Crown Dependency governments to ensure a continuation of our current customs relationships when the UK leaves the EU.
The UK government continues to work towards a deal with the EU. These new arrangements are compatible with any future agreement on customs reached with the EU.
The arrangements underline the Prime Minister’s stated commitment to ensure that the UK’s departure from the EU delivers for the whole UK family, including the Crown Dependencies, and builds on the positive collaboration that has taken place between the UK and Crown Dependency governments since the 2016 referendum.
In the case of the Isle of Man — where there is an existing agreement covering customs, VAT and excise matters —modifications have been made to the customs aspects of the agreement but existing arrangements for VAT and excise-related issues remain unchanged.
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