Release for free circulation
Customs procedure conferring Union goods status on non-Union goods after payment of customs duties.
Release for free circulation is the fundamental import customs procedure: it confers on non-Union goods the customs status of Union goods, allowing them to circulate freely throughout the EU customs territory. This procedure involves payment of customs duties, application of commercial policy measures, and completion of all import formalities.
It is important to distinguish release for free circulation from release for consumption. Release for free circulation concerns only customs duties and commercial policy measures. Release for consumption adds payment of import VAT and any excise duties. In common practice, both operations are carried out simultaneously (procedure code 40 00).
Once released for free circulation, goods definitively acquire Union status and may circulate, be stored, or used throughout the EU without further customs formalities. This status is evidenced by proof of Union status (T2L or T2LF document) when demonstration is necessary.
The taxable base for duty calculation is the customs value (determined according to UCC rules), applied at the duty rate provided by the Common Customs Tariff for the goods' tariff classification. Tariff preferences can reduce or eliminate duties if origin conditions are met.