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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 a customs entry should 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 throughout the EU without being subject to customs formalities or duties.

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