Channel Islanders and EU free movement rights Both Bailiwicks have long agricultural and fisheries traditions. The Channel Islands have shown themselves by their actions to be reliable, active and cooperative partners of the EU and of the wider international community. 1. It does not derive from EU law but predates it and hence was not linked to Protocol 3. The main exports of goods are agricultural and fisheries products. Tourist and business visits The most common example of an exception to the rule is in Germany, where an official register is maintained listing all marine vessels operating out of German ports. For international agreements related to other aspects of trade and investment, the Channel Islands continue to rely on the UK to represent them internationally and extend agreements to the Channel Islands on their behalf where agreed. Otherwise transport legislation in the Channel Islands is largely based on international standards set by bodies such as the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO). The Islands enjoy a high degree of autonomy, including their own fiscal and judicial systems, and receive no financial subsidy from the UK or the EU. The population is 63,026 (July 2016 est.) Environmental legislation was not covered by Protocol 3 but in some cases EU environmental standards, in areas like air and water quality, are used as guidelines for domestic legislation in the Channel Islands, even though there was no legal obligation to do so. 0800 840 2050 during office hours ONLY (08.00 to 17.00) Customer log in: User name Password Log in In addition to the varying state taxes and parafiscal charges in some states to fund fire and emergency services, the captive insurer needs to be mindful of the additional 3% Federal Income Tax deducted from premiums paid to non-admitted insurers. The Channel Islands were outside the EU for the purposes of transport, since this was a service provision which was not covered by Protocol 3. Guernsey and Jersey are attractive tourist destinations with their natural beauty and their unique culture and heritage. Looking at the 2nd Non-Life Insurance Directive (88/357/EEC) article 2(d) – Location of Risk Rules – interpretation of ‘vehicles of any type’ can also vary across member states. The European Union (Brexit) (Bailiwick of Guernsey) Law, 2018 ("the a Order m Council No. As we are constantly aware in the world of premium taxes and parafiscal charges, the interpretation of EU legislation can vary across EU member states. Protocol 3 excluded “Channel Islanders” from the provisions of the Treaty relating to the free movement of persons provisions of the Treaty. In 2018, the UK was the largest recipient of Chinese outbound foreign direct investment, surpassing the US, which has historically been the biggest recipient. Guernsey and Jersey are among a small group of third country jurisdictions that are the subject of a European Commission “adequacy decision”, meaning that they have been officially assessed as meeting EU data protection standards. WE ARE GUERNSEY is the brand under which Guernsey Finance promotes the island's financial services sector internationally. Through being a part of the customs union, the Channel Islands apply the Common External Tariff (CET) to imports of goods from third countries. They therefore make a very important contribution to the economy and to community life in both Bailiwicks. As small islands, Guernsey and Jersey have a services-based economy. The first phase of the rollout of the Pfizer/BioNTech vaccine in Guernsey is due to begin next week. Energy However, for Protocol 3 purposes (and hence until the end of the Transition Period), a person who was born in the UK, or who has at least one parent or grandparent who was born in the UK, or who has resided in the UK for 5 years is not a “Channel Islander”. In conclusion, it would appear that there are premium tax compliance issues aside from regulatory challenges for all captive insurers writing cross border business – albeit those challenges may differ slightly depending on whether the captive is based within or outside EU member states. There is close cooperation between the Channel Islands and the French authorities on emergency planning and on radioactive sampling. Air and sea links are vital for small island economies like Guernsey and Jersey. The Channel Islands are part of the UK telephone numbering plan which is managed by OFCOM in accordance with the relevant EU Directives. 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Tourism is therefore an important industry. The Islands have made clear their commitment to remaining good neighbours of the EU irrespective of the outcome of the future relationship negotiations between the UK and the EU. Guernsey is part of a free-movement area with the UK and Ireland, but controls immigration from the rest of the EU. It's a self-governing British Crown dependency, and the locals are quick to point out that it is not part of the United Kingdom and European Union. However virtually all aviation and shipping links from the Channel Islands are to the UK, France and other EU destinations. The US and Canada both offer opportunities for local policyholders to file and settle premium taxes and charges on behalf of their captive insurers. Authorities may also take a different view on ongoing compliance by non-EU insurers, to regularisation of a historical position for the insurer looking to seek compliance. Further details of the regulatory cooperation between the Channel Islands and the EU on financial crime can be found in the separate note “The Channel Islands and the EU: tackling financial crime“. So, for example, in the application of their residency policies they cannot favour, say, British nationals over other EU nationals. Guernsey, and other such international finance centres, committed to addressing the EU's concerns about a supposed 'lack of economic substance' by introducing so-called substance legislation by the end of 2018, in order to stay off the proposed EU … They therefore make a very important contribution to the economy and to community life in both Bailiwicks. We use cookies on this site to enhance your user experience. These generally last for a maximum of 5 years, although longer licenses may … For example, the Islands’ airports have been formally assessed by the European Commission as meeting EU aviation security standards – an assessment endorsed by the EU’s aviation security committee. Together with the Bailiwick of Jersey, the Bailiwick of Guernsey is included in the grouping known as the Channel Islands. The main areas of direct impact are those previously covered by Protocol 3. Guernsey and Jersey immigration rules, including with respect to visa requirements, are aligned with those of the UK immigration rules. At 33ft, Guernsey’s tidal range is one of the world’s largest. For those areas previously covered by Protocol 3 (and hence still covered during the Transition Period), EU legislation is directly applicable, and the Channel Islands are regarded as part of the UK Member State. Moving outside of the EU, Guernsey captive insurers find themselves in an equal position to those captives domiciled within the EU. Facing strong pressure from Germany and other EU nations, the European Medicines Agency (EMA) has brought forward a meeting to assess the … As Guernsey is not party to the UK Tax Treaty with the US, FET of 4% would apply to insurance premiums written on a direct basis by a Guernsey domiciled captive, or 1% of reinsurance premiums. In effect, a vessel registered within the UK but operating out of German ports could be subject to double taxation, due to the two countries different interpretation of the directive’s ‘location of risk’ rules. The Channel Islands were outside the Common Agricultural Policy (CAP): they did not pay into nor received funds from the EU budget. Competition policy per se was not within the scope of Protocol 3 (although normal conditions of competition in trade in agricultural products apply) so there was no obligation on the Channel Islands to follow general EU competition rules. Non-EU-based insurers successfully register with HMRC and file ongoing IPT in the UK, and similar success is regularly evidenced in the Netherlands. However, Channel Islands consumers going abroad (and UK/EU consumers visiting the Channel Islands) do not currently benefit from the lower voice and data charges secured by the EU Roaming Regulations. 3 of the Treaty of Accession of the United Kingdom to … Non-EU-based captive insurers may be able to take advantage of the locally based policyholder to file premium taxes on their behalf in Germany. The Channel Islands have implemented domestic legislation which is essentially equivalent to the new EU General Data Protection Regulation (GDPR) and the related EU Directive on data exchange between law enforcement authorities (LED). The Channel Islands are committed to some international environmental standards on which EU legislation has subsequently been based. Whether you're an EE or EE Legacy customer, find out exactly how much it costs to make and receive calls, text and send picture messages in Guernsey. The main exports of goods are agricultural and fisheries products. All Guernsey funds are eligible to be marketed into the European Union and European Economic Area (“EEA”) in accordance with the provisions of the AIFMD through both: 1. national private placement regimes; and 2. By using this site you are giving your consent for us to set cookies. Further details of the tax and regulatory cooperation between the Channel Islands and the EU can be found in the separate note “CI-EU tax cooperation“. Protocol 3 excluded “Channel Islanders” from the provisions of the Treaty relating to the free movement of persons provisions of the Treaty. THE European Union has 28 member countries – but Europe itself has 50 nations. Guernsey and Jersey are attractive tourist destinations with their natural beauty and their unique culture and heritage. Legislation in these territories was designed for the domestic market rather than global non-admitted insurance. The answer depends on whether you are selling goods or services. They have a combined population of approximately 165,000, and a combined GDP of approximately £6.2billion. There is close cooperation between the Channel Islands and the French authorities on emergency planning and on radioactive sampling. Guernsey and Jersey are becoming more relevant to Asian managers looking to take advantage of investment and fundraising opportunities in the UK/Europe. However, for Protocol 3 purposes (and hence until the end of the Transition Period), a person who was born in the UK, or who has at least one parent or grandparent who was born in the UK, or who has resided in the UK for 5 years is not a “Channel Islander”. The Bailiwick of Guernsey is in the Commonwealth (Commonwealth of Nations), although not as a member, in its own right. Whilst neither Guernsey nor Jersey is a member of the EU, some aspects of EU legislation are adopted by the Channel Islands in compliance with the bilateral agreements in place between Guernsey and Jersey and member states of the EU, including for example a number of tax information exchange agreements with … Guernsey and Jersey immigration rules, including with respect to visa requirements, are aligned with those of the UK immigration rules. The 1st Non-Life Insurance Directive (73/239/ EEC) defines the 18 classes of non-life insurance, but interpretation by each territory as to where business falls within these classifications can vary. EU nationals are not subject to any visa controls. Exports of goods from the Channel Islands to the EU and from the EU to the Channel Islands are treated as intra-EU trade. Director of Public Health Dr Nicola Brink said 975 doses arrived on the island on Thursday. The Channel Islands are not within the EU common system of VAT so trade in goods is not subject to the EU Principal VAT Directive. ILS market returns could be hit by further natural catastrophe losses, Guernsey claims more than half of new captive growth in Europe, Incorporated cells are the way forward for pension longevity. Overview. Guernsey and Jersey are attractive tourist destinations with their natural beauty and their unique culture and heritage. They are located just off the coast of France, in the English Channel. Tourism is therefore an important industry. However, the Channel Islands’ own legislation deals with competition questions in a manner consistent with treatment of similar questions under EU competition law. Protection of the environment on land and in the surrounding marine areas is crucial for the unique ecosystems of the Channel Islands. An original version of this article was published Captive Review's 2015 Guernsey report, February 2015. However, Channel Islands consumers going abroad (and UK/EU consumers visiting the Channel Islands) do not currently benefit from the lower voice and data charges secured by the EU Roaming Regulations. Channel Islanders and EU free movement rights Comprehending and appreciating the issues as well as staying on top of ongoing developments is key to the successful and ongoing compliance of any captive insurer. Environment The UK have confirmed that the Crown dependencies’ position will be argued in the Brexit negotiations. The Channel Islands are third countries for the purposes of the EU’s Common Commercial Policy (CCP). Previous Years As a VAT system does not exist in Guernsey, and with a recent proposal to introduce one being voted out, certain claims … For most purposes the Channel Islands were already outside the EU (third countries) and cooperation in these areas will not be directly affected by the UK’s withdrawal. The Channel Islands are therefore directly affected by the relevant European legislation concerning spectrum and benefit from being part of a larger European group when harmonising spectrum usage in international negotiations. However, the Channel Islands’ own legislation deals with competition questions in a manner consistent with treatment of similar questions under EU competition law. So, for example, in the application of their residency policies they cannot favour, say, British nationals over other EU nationals. The median age for males is 40 years and for females is 42 years. There is close bilateral cooperation with the UK and France on maritime protection. For example, the Islands’ airports have been formally assessed by the European Commission as meeting EU aviation security standards – an assessment endorsed by the EU’s aviation security committee. Karen Jenner, of FiscalReps, speaks to Captive Review about the hurdles surrounding premium tax compliance for insurers and captives domiciled in Guernsey. This requirement was previously set out in Protocol 3 and continues to apply for the duration of the Transition Period. In the wake of this announcement, Guernsey’s chief minister, Jonathan Le Tocq, wrote to the European tax commissioner Pierre Moscovici to welcome the news. EU electricity Directives in the Third Energy Package therefore generally did not apply in the Channel Islands. It does not derive from EU law but predates it and hence was not linked to Protocol 3. In the UK for example, the literal interpretation of vehicle is at its widest; on the contrary in Malta, in line with the view of the EU Commission, the interpretation of vehicles is restricted to motor vehicles only. The Channel Islands were outside the EU for the purposes of transport, since this was a service provision which was not covered by Protocol 3. With Alderney, Sark, Herm, Jethou, and associated islets, it forms the Bailiwick of Guernsey. Virtually all manufactured goods are imported. Each Bailiwick has significant marine energy resources (both wind and tidal current) that, if developed, could be exported into the EU to assist with climate change commitments. Since May 2016 Guernsey and Jersey have been within the geographic scope of the credit transfer and direct debit schemes of the Single Euro Payments Area (SEPA). This provides for passport-free travel and simplified entry procedures for business visitors and tourists. Under the leadership of Chief Executive Rupert Pleasant, the agency ensures that the core values and competencies of the island's finance sector are accepted and respected by the global community and that financial business development flows are enhanced. The Channel Islands are part of the UK telephone numbering plan which is managed by OFCOM in accordance with the relevant EU Directives. However, the bulk of the energy needs in the Channel Islands are met from supplies from the EU, mainly by electricity cable interconnectors from France, so the Channel Islands have a strong interest in a properly functioning, competitive EU energy market, with security of supplies. Like the UK and Ireland, Guernsey and Jersey are outside the visa/check-free Schengen area and so operate border controls for flights or ships arrivals from countries other than the UK or Ireland. Competition policy Looking to Asia, captives writing Singapore-based risk on a non-admitted basis have an added advantage over local insurance companies, in that the 7% local GST is not applicable where the premium transaction is offshore. All rights reserved | info[at]channelislands.eu, Channel Islands: Tuesday, December 15th, 2020 21:32 | Brussels: +1 hour, The right to reside and the right to work, Channel Islanders and EU free movement rights. For those areas previously covered by Protocol 3 (and hence still covered during the Transition Period), EU legislation is directly applicable, and the Channel Islands are regarded as part of the UK Member State. The European Communities (Bailiwick of Guernsey) Law, 1973b ("the 1973 Law") is amended as set out in Schedule 1. Jersey has a special relationship with the European Union (EU). For international agreements related to other aspects of trade and investment, the Channel Islands continue to rely on the UK to represent them internationally and extend agreements to the Channel Islands on their behalf where agreed. In the ongoing desire for global compliance, solutions are being sought to deal with 'difference in conditions/difference in limits' ('DIC-DIL') covers and other non-admitted … The Channel Islands are part of the Common Travel Area (CTA) with the UK and Ireland. For example, the Channel Islands are covered by the UK’s ratification of the Basel Convention on the control of trans-boundary movements of hazardous waste and their disposal, although for the purposes of the EU’s implementing legislation in this area they were third countries. One distinct advantage to Guernsey insurers not being part of the EU must not be overlooked. There is close cooperation between the Channel Islands and the French authorities on emergency planning and on radioactive sampling. However virtually all aviation and shipping links from the Channel Islands are to the UK, France and other EU destinations. OECD Decisions and Recommendations apply to Guernsey and Jersey to the same extent as they do to the UK unless the contrary is specifically stated in a particular case. As specialist finance centres, Guernsey and Jersey recognise the important role they must play in tackling financial and economic crime, particularly as regards AML/CFT. Telecomunications For example, the Channel Islands are covered by the UK’s ratification of the Basel Convention on the control of trans-boundary movements of hazardous waste and their disposal, although for the purposes of the EU’s implementing legislation in this area they were third countries. Jersey and the European Union. Tourism is therefore an important industry. This Protocol lapsed from the date of the UK’s withdrawal, but its substantive provisions will continue to apply during the Transition Period until 31 December 2020. The Channel Islands (“the Islands”) consist of the Bailiwicks of Guernsey and Jersey. Otherwise transport legislation in the Channel Islands is largely based on international standards set by bodies such as the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO). This will continue to apply for the duration of the Transition Period. The Channel Islands are not members of the International Telecommunications Union and the UK Regulator, OFCOM, manages and licences spectrum rights of use on the Channel Islands’ behalf. Transport Investment The Channel Islands are therefore directly affected by the relevant European legislation concerning spectrum and benefit from being part of a larger European group when harmonising spectrum usage in international negotiations. Tourism is therefore an important industry. The proximity of the Flamanville nuclear power station to the Channel Islands makes EU competence for nuclear safety standards under the Euratom Treaty of importance. However, Channel Islands consumers going abroad (and UK/EU consumers visiting the Channel Islands) do not currently benefit from the lower voice and data charges secured by the EU Roaming Regulations. 7 It has the highest tides in Europe. Further details can be found in the separate note“The Channel Islands and Brexit”. As a VAT system does not exist in Guernsey, and with a recent proposal to introduce one being voted out, certain claims costs incurred by the insurer will be VAT free. Tourist and business visits One distinct advantage to Guernsey insurers not being part of the EU must not be overlooked. (once available) the third-country passporting regime. 2. EU 27 nationals represent around 20% of the resident population in Jersey and around 7% of the resident population in Guernsey. It does not derive from EU law but predates it and hence was not linked to Protocol 3. The Bailiwick of Guernsey is also not part of the European Union. Guernsey ceased to be ruled by Normandy in 1204. The Channel Islands and the EU: tackling financial crime. After the UK left the EU on 31 January, Guernsey was forced to introduce permits because it was no longer party to the London Fisheries Convention, which governs access to waters for its signatories. However, the Channel Islands’ own legislation deals with competition questions in a manner consistent with treatment of similar questions under EU competition law. Both have had tax crimes as a predicate offence for AML purposes for more than a decade. Close cooperation between the Channel Islands it and hence was not linked to Protocol 3 the and... 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