What is release for free circulation?

Then, UCC Article 201(3) tells us that by releasing the goods for free circulation, the goods receive the customs status of “union goods”, which enables them to enter the EU market without the need for further customs supervision.

The fact that customs supervision ends once the goods receive the status of union goods is covered by UCC Article 134(1). Releasing goods into free circulation is therefore an important aspect of the role of customs authorities, who must ensure that all formalities are completed - including arrangements for the payment of any taxes - before releasing the goods out of their supervision and into free circulation within the EU. In this regard, the protection of society through various prohibitions and restrictions is an important customs responsibility.

Requirements for release for free circulation

UCC Articles 201(2) tells us that releasing goods for free circulation involves the following measures:

Collection of any import duty that is payable,
Collection of any other charges that may be payable,
Application of trade policy measures and any prohibitions and restrictions that may apply, and
Completion of any other required formalities relating to the import of the goods.

Payment of duty and other charges

UCC Article 102(1) states that Customs is required to notify the importer (or their representative) of any debt that is payable. The amount payable is then recorded by Customs in their national accounts - see UCC Article 104(1).

Note that actual payment of the duty may occur later - after the goods have been released.

Trade policy measures, prohibitions and restrictions

Commercial policy measures are non-tariff measures governing the international trade in goods. These may include import prohibitions, quantitative restrictions etc. In addition to measures that have been introduced to protect the EU economy, they can also include political or security measures, such as trade embargoes. Such measures are based on EU customs law, and do not include national measures.

In addition to the EU's commercial policy measures, Member States can establish national non-fiscal rules relating to such matters as safety, health, economy and the environment. The assessment of goods in relation to such measures provide grounds for goods to remain under customs supervision prior to release into free circulation (see UCC Article 36).

Note also that, in relation to the various risks being managed by customs authorities, UCC Article 5(7) defines risk to be the likelihood and the impact of an event occurring, with regard to the entry, exit, transit, movement or end-use of goods moved between the customs territory of the Union and countries or territories outside that territory and to the presence within the customs territory of the Union of non-Union goods, which would: prevent the correct application of Union or national measures (emphasis added).