The customs status of the goods determines whether or not they are in free circulation. Only those with the status of Union Goods are in free circulation, so it’s necessary to determine whether goods are Union or non-Union goods.
Union Goods include:
- Goods which are wholly obtained in the customs territory of the Community EU that don’t incorporate goods imported from external countries or territories
- Goods which are imported from countries or territories that don’t form part of the customs territory of the Community EU which have been released for free circulation
- Goods obtained or produced in the customs territory of the Community EU that incorporate other Union goods
All other goods have the status of non-Union Goods, and as such are not in free circulation.