Imported goods which have been released for free circulation into EU customs territory – after having paid the applicable import duty and been checked for respecting any prohibitions or restrictions requirements applicable to them– can be moved freely within this area in the same way as goods made in the EU.
Purpose and scope of the procedure of release for free circulation
The procedure fulfils all import formalities required for the goods to be consumed on the EU market, like any product made in the EU. It gives non-Union goods the customs status of Union goods.
Under Article 201(2) of Union Customs Code (UCC), release for free circulation entails:
- the collection of import duty and other charges where (i) goods are subject to them under the EU customs tariff and (ii) no duty/tax relief is applicable;
- the application of trade policy measures (e.g. the need to present an import license for goods subject to quotas) and any other requirements for importing the goods in question, like the ones deriving from prohibitions and restrictions (e.g. the need to present a veterinary certificate for certain animals or animal products).
How are goods entered for the procedure?
This happens by means of a customs declaration.
The time the declaration is accepted – which triggers release for free circulation (Articles 77(2), 172(2) and 85 UCC) – usually determines the date used to calculate the amount of import duty (if the goods are liable for this) and any VAT/excise duty applicable, as well as to apply any prohibitions or restrictions measures the goods are subject to before they are consumed within the EU.
This calculation is based on the nature, customs value and quantity of the goods, and applies the relevant duty or tax rate for the goods.
Do imported goods keep their Union status forever?
No – like goods made in the EU itself, they can lose this status.
This happens if they leave the EU customs territory (Article 154 UCC).
However, you can avoid this by:
- placing the goods under the internal transit regime when taking them out of the EU, or
- asking the customs authorities to issue a ‘proof of customs status’ for your goods.