What does free circulation mean in Europe?

Goods that enter the customs territory of the EU from a non-EU country are referred to as 'non-community goods’. Before these goods can be marketed within the EU, they need to be released into free circulation. This means that a customs entry should be raised for the goods and a duty and/or VAT should be paid.

Once these conditions have been met, the non-community goods will become 'community goods'. They will get the same status as goods that have been produced, harvested or mined within the EU and can be transported freely throughout the EU.