Task 2
A. Read the text and answer the questions by one of the four options.
Free Circulation means that the goods are cleared by Customs and can be sold to, or used in countries in the European Union. Free Circulation procedure applies differently to the goods produced in the EU and non-community goods. EU goods are released for free circulation without paying part or all the import duty, while for non-community goods importers have to pay all prescribed import duties and taxes.Customs transit is the procedure that allows to move goods between two points in a customs territory, or between territories without paying tariffs and taxes at each point. Transit procedures are one of the things that contribute to increased international trading opportunities. The Customs Transit procedure allows for the temporary suspension of duties, taxes and commercial policy measures that are applicable at import. As such, it allows customs clearance formalities to take place at the point of destination rather than at the point of entry into the customs territory. Customs transit is particularly relevant where a single customs territory is combined with multiple fiscal territories: it allows the movement of goods under transit from their point of entry into the Union to their point of clearance, where both the customs and national fiscal obligations will then be taken care of. Customs transit procedures are intended to protect domestic market from leaking foreign goods. Customs warehousing means storage of imported goods in a warehouse or Distribution Centre where goods are stored under customs supervision. The principal advantages of this procedure included the fact that there is no requirement for pre-financing of import taxes, and no application of trade measures, such as for e.g. presentation of certificates. Goods stored in a customs warehouse do not become liable to the payment of import duties and taxes until the goods are cleared for free circulation. If the goods are re-exported, the economic operator will have time to negotiate their sale, either on the internal market or abroad.
Questions:
1. What does Free Circulation mean?