Jersey's relationship with the European Union

Jersey and the European Community - Trade Information

The Customs Territory of the European Community

The Channel Islands were included in the Customs territory of the European Community (EC) under a treaty of accession which entered into force on the 1st January 1973. The effect was ultimately to allow all Community goods moving between member states of the European Community and the Channel Islands to be imported without incurring Customs duty. "Community (or EC) Goods" means both goods originating in the EC and goods imported from non-EC countries which have been put into free circulation in the EC after completion of import formalities and payment of Customs duty or similar charges. (These charges do not include VAT - see Single European Market below). Similarly, Community goods exported from Jersey are not liable to Customs duty on arrival in a member state of the EC.

The clearance of goods into Jersey, other than goods liable to excise duties, is normally based on the EC exporter's invoice to the Jersey importer and where Customs are satisfied that the goods are of EC status, no import duty is payable.

Excise goods, e.g. wines and spirits, tobacco goods, are normally cleared by Customs against the supplier's invoice and a formal declaration by the importer. A schedule of the rates of duty is obtainable here.

The Single European Market

The 1st January 1993 saw the introduction of the Single European Market which affected companies trading within the European Community.

Although the Channel Islands form part of the Customs territory of the EC, they are not full member states and are not part of the Single European Market for VAT purposes. None of the islands has a VAT regime, therefore traders established in the islands are not required by the insular authorities to be registered for such a tax. As a result, all goods shipped to the islands from full member states of the EC must be treated as export trade in the same manner as merchandise destined for Third Countries. Exports to the islands should therefore be zero rated for VAT. Goods exported from the Channel Islands consigned to a member state of the EC are liable to VAT upon importation at the rate applicable in the country of destination.

Traders in full member states should enquire of their local VAT authority for information, including that on any control procedures that may exist at export. Suppliers of excise goods exported to the Channel Islands should note that the Accompanying Administrative Document (AAD) does not apply to shipments to the islands.

For more detailed information please contact us at customs@gov.je