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What does free circulation mean?

Goods that enter the customs territory of the EU from a non-EU country are referred to as 'non-Community goods'. (T status) Before these goods can be marketed within the EU, they should first be released into free circulation. This means that acustoms entryshould be raised for the goods & Duty &/or VAT should be paid.Once these conditions have been satisfied, the non-Community goods (T Status) will become Community goods. (C Status). They will obtain the same status as goods that have been produced, harvested or mined within the EU & can be transported thorughout the EU without being subject to customs formalities or duties.

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