In simple terms, the Island is treated as part of the European Union for the purposes of free trade in goods, but otherwise is not a part of the EU. Tourism is therefore an important industry. Overview. 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. Guernsey and Jersey are attractive tourist destinations with their natural beauty and their unique culture and heritage. 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. Discover upcoming public holiday dates for Guernsey and start planning to make the most of your time off. Guernsey is currently part of the EU Customs Union by virtue of Protocol 3, which also provides (with limited exceptions) for the free movement of persons between Guernsey and the EU. 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. Investment 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. The Channel Islands are part of the UK telephone numbering plan which is managed by OFCOM in accordance with the relevant EU Directives. Controls in respect of the right to work by EU nationals in the Channel Islands are dealt with under the respective domestic legislation in each island, subject to the requirement that the Channel Islands must treat all EU nationals equally. The Channel Islands are committed to some international environmental standards on which EU legislation has subsequently been based. Trade There is close cooperation between the Channel Islands and the French authorities on emergency planning and on radioactive sampling. One distinct advantage to Guernsey insurers not being part of the EU must not be overlooked. © 2020 CIBO. 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. 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. The Channel Islands are part of the Common Travel Area (CTA) with the UK and Ireland. EU 27 nationals represent around 20% of the resident population in Jersey and around 7% of the resident population in Guernsey. EU electricity Directives in the Third Energy Package therefore generally did not apply in the Channel Islands. By using this site you are giving your consent for us to set cookies. Together with the Bailiwick of Jersey, the Bailiwick of Guernsey is included in the grouping known as the Channel Islands. The OECD Convention was extended to Guernsey and Jersey in 1990 and they are part of the UK for the purposes of its membership of the OECD. 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. >b /"i Amendment of the Brexit Law. With Alderney, Sark, Herm, Jethou, and associated islets, it forms the Bailiwick of Guernsey. Although the farming and fisheries sectors are less important in both absolute and relative terms than they were in the past, they remain vital for the fabric of the rural economy. 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. Guernsey is part of a free-movement area with the UK and Ireland, but controls immigration from the rest of the EU. In Australia local insureds can file and settle relevant charges on behalf of their captive insurer. Guernsey and Jersey are becoming more relevant to Asian managers looking to take advantage of investment and fundraising opportunities in the UK/Europe. Legislation in these territories was designed for the domestic market rather than global non-admitted insurance. The right to reside and the right to work They are British Crown Dependencies, with a direct allegiance to the British Crown which goes back over 800 years. The Bailiwick of Guernsey is also not part of the European Union. They are located just off the coast of France, in the English Channel. New guidance from Guernsey Finance will make it easier for family offices to embrace sustainable investing, How US managers use Guernsey structures to target European capital, Guernsey Private Investment Fund regime enhanced by proposed changes, GFSC introduces ‘fast track’ pre-authorisation for insurance cells, Guernsey cash box used for AIM-listed company’s fundraising, Guernsey Q3 2020 Investment Fund Statistics, Guernsey wins two high-profile insurance mandates, Guernsey top of the class for captives again, PO Box 655, St Peter Port, Guernsey, GY1 3PN. 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. Guernsey and Jersey voluntarily implement all EU sanctions, including asset freezes. This requires the operator (the airline or ferry company) and the airport or port to comply with relevant EU standards. Although small, only 62 sq km (38 sq miles) in size, Guernsey harbours a strong local identity. 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. 1. Guernsey and Jersey are attractive tourist destinations with their natural beauty and their unique culture and heritage. It does not derive from EU law but predates it and hence was not linked to Protocol 3. So, for example, in the application of their residency policies they cannot favour, say, British nationals over other EU nationals. Investment Virtually all manufactured goods are imported. The Channel Islands are part of the UK telephone numbering plan which is managed by OFCOM in accordance with the relevant EU Directives. Karen Jenner, of FiscalReps, speaks to Captive Review about the hurdles surrounding premium tax compliance for insurers and captives domiciled in Guernsey. 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. 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. Tourism is therefore an important industry. Environment This provides for passport-free travel and simplified entry procedures for business visitors and tourists. The Bailiwick ranked 10th in the world in 2015 with an average life expectancy of 82… 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. If these nuances provide premium tax filing and settlement challenges to EU-based insurers writing EU-based risk, the challenges can only increase for Guernsey, or other non-EU jurisdictions looking to ensure premium tax compliance, with the added regulatory issues and whether they are physically able to even register with EU premium tax authorities. ""EU provision" has the meaning given in the European Union (Brexit) (Bailiwick of Guernsey) Law, 2018, and includes an item of Preserved EU law within the meaning of that Law,", and in the definition of "implementation", for "Community provision" substitute "EU provision". 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. 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. Virtually all manufactured goods are imported. 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”. 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. 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. Despite the UK’s withdrawal from the EU on 31 January 2020, there will be no immediate change to the Channel Islands relationship with the EU. Both Bailiwicks have long agricultural and fisheries traditions. 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As major well-regulated financial centres, both Guernsey and Jersey are significant net providers of liquidity and investment funds to the EU economy. Tourist and business visits Tourist and business visits Guernsey and Jersey are attractive tourist destinations with their natural beauty and their unique culture and heritage. The Channel Islands (“the Islands”) consist of the Bailiwicks of Guernsey and Jersey. The Channel Islands are committed to some international environmental standards on which EU legislation has subsequently been based. Both have had tax crimes as a predicate offence for AML purposes for more than a decade. The main exports of goods are agricultural and fisheries products. 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”. 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. 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. Guernsey Finance - the promotional agency for the island's finance industry internationally - is a joint industry and Government initiative responsible for the promotion of Guernsey. 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. Their own independent regulators enjoy excellent regulatory cooperation with their EU counterparts, including with the European Supervisory Authorities. Previous Years As a VAT system does not exist in Guernsey, and with a recent proposal to introduce one being voted out, certain claims … Does this mean you need to charge VAT on sales to Jersey? It is 30 miles (48 km) west of Normandy, France, and roughly triangular in shape. 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 virtually all aviation and shipping links from the Channel Islands are to the UK, France and other EU destinations. The Channel Islands are part of the UK telephone numbering plan which is managed by OFCOM in accordance with the relevant EU Directives. 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 … Facing strong pressure from Germany and other EU nations, the European Medicines Agency (EMA) has brought forward a meeting to assess the … 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. 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. WE ARE GUERNSEY is the brand under which Guernsey Finance promotes the island's financial services sector internationally. This Protocol lapsed with the UK’s withdrawal, but its substantive provisions will continue to apply during the Transition Period until 31 December 2020 provided for in the Withdrawal Agreement. The detailed rules setting out the conditions with respect to trade in agricultural products (which include fish and fish products) are set out in EC Regulation 706/73, as amended. Guernsey neither contributes to, nor directly receives anything from, the funds of the European Union. The Channel Islands are part of the Common Travel Area (CTA) with the UK and Ireland. Guernsey and Jersey’ domestic data protection legislation is based on EU law. 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. Telecomunications At 33ft, Guernsey’s tidal range is one of the world’s largest. 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. There is close bilateral cooperation with the UK and France on maritime protection. Air and sea links are vital for small island economies like Guernsey and Jersey. As small islands, Guernsey and Jersey need to apply policies regarding the right to reside and the right to work which respond to the needs of the economy while ensuring that housing and population development is sustainable. 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. This had hitherto been governed by Protocol 3 of the UK’s Accession Treaty. 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. Further details can be found in the separate note“The Channel Islands and Brexit”. The Channel Islands are part of the Common Travel Area (CTA) with the UK and Ireland. Guernsey and Jersey immigration rules, including with respect to visa requirements, are aligned with those of the UK immigration rules. The UK have confirmed that the Crown dependencies’ position will be argued in the Brexit negotiations. Energy Competition policy 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. This requires the operator (the airline or ferry company) and the airport or port to comply with relevant EU standards. Tourism is therefore an important industry. Exports of goods from the Channel Islands to the EU and from the EU to the Channel Islands are treated as intra-EU trade. 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. 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. 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. EU nationals are not subject to any visa controls. 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). 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. Telecomunications An original version of this article was published Captive Review's 2015 Guernsey report, February 2015. The Bailiwick of Guernsey belongs to the Common Travel Area.A bailiwick is the area or district of jurisdiction of a Bailiff. 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