Free Movement of Goods - Gov.uk

external frontier of its own, so that goods entering and leaving the Internal Marketare taxed at the same rate and go through the same processes and proceduresbefore entering the Internal Market. This requires Member States’ customsservices to apply a common customs tariff and standardised customs proceduresto goods entering and leaving the EU.This standardisation of customs procedures is the basis of the EU CustomsUnion. It is essential for the functioning of the Internal Market. Furthermore,customs controls need to strike the right balance between facilitating import andexport trade while at the same time regulating and controlling the importation andexportation of goods.All EU Member States are part of the EU Customs Union. A customs union hasalso been established between the European Union and Turkey, Andorra, SanMarino and Monaco. Additionally, the four EFTA countries (Norway, Iceland,Lichtenstein and Switzerland) have agreements with the EU that allow them toparticipate in the Internal Market and benefit from the free movement of goods.These arrangements expand the area within which goods can move freelybeyond the territory of the EU.Scope of EU Competence on the Customs UnionThe Customs Union is an area of exclusive EU competence, meaning thatvirtually all legislation in this area is EU legislation that has been initiated by theEuropean Commission. Most of this legislation is contained in EU Regulationsand is therefore ‘directly applicable’, which means it is law in all EU MemberStates. However some legislation is needed at national level in order toimplement EU customs law.The current EU Customs Code and its Implementing Provisions set out the rulesfor importing and exporting goods and impose legal requirements and obligationson importers and exporters. Businesses that engage in international trade, orindividuals that import or export goods privately, must comply with both EuropeanUnion and national legal requirements. A new EU customs code (the UnionCustoms Code) is currently being negotiated.Scope of UK National Competence in Customs MattersEU Member States are responsible for managing their own customs services andimplementing and enforcing EU customs legislation. The UK decides whichgovernment department or agency is the competent authority in the UKresponsible for implementing and enforcing particular Regulations. The UK alsodecides the nature and level of penalties that will be applied in the case of abreach of EU customs regulations that occurs in the UK. Customs criminal7