Did you know that goods which come into the EU from outside are subject to a common external tariff and a tariff-free movement within the EU borders? It is like that thanks to the EU Customs Union (EUCU). The EUCU represents one of the greatest achievements of the European Union, one of its fundamental pillars and an essential element in the functioning of the single market. All the EU Member States are part of the EUCU and all the countries that aspire to join the EU, including Montenegro, have to fulfill requirements from Chapter 29: Customs Union. EU assistance is also closely linked with accession negotiations under this chapter.

So far, the EU has allocated €8.26 million to Montenegro in the customs area. Through different projects, the EU has helped capacity building, modernization and digitalization of the Customs Administration and its procedures. Furthermore, it has supported enhancing border and inland controls and detecting organised crime and corruption activities, which ultimately led to better protection of the society and more efficient collection of revenues, to the benefit of all citizens of Montenegro. Future EU assistance in this area will be predominantly focused on implementation of complex IT systems envisaged under Union Customs Code (UCC), which will enable full interconnectivity and interoperability of Montenegrin IT systems with the IT systems of the EU Member States.

Additionally, the EU sets aside considerable funds to support Montenegrin taxation reform. Since 2007, it has provided approximately €2.5 million of assistance to the taxation area. Through different service, supplies and twinning contracts within IPA I and IPA II programs, under both direct and indirect management, the EU has supported capacity building, modernization and digitalization of the Tax Administration and its procedures, as well as further alignment of Montenegrin legal framework in the field of indirect and direct taxes with the EU acquis. The EU will continue to provide its financial assistance in this area and support Montenegro in fulfilling requirements from Chapter 16: Taxation.


Tax administration may play a powerful role in influencing the efficiency of the economy. That is why improvement in the tax administration system is a never ending process.
Launch of the Single Market in 1993 led to abolishing tax controls at the borders between the EU Member States. Therefore, EU legislation was adopted to ensure that excise duties for certain products are applied in the same way, and to the same products throughout the Single Market, and that the EU Member States apply at least a minimum rate of excise duty.
The EU Customs Union ensures the tariff-free movement of goods within the EU, and implements standardized rates of custom duties on goods imported from outside the union. It is essential for the proper functioning of the single market.