Community goods
Concept and legal foundations
According to European customs law, Community goods are those goods that originate in the European Union (EU) or its predecessor organizations, or have been released for free circulation there. They play a central role within the European Single Market, as they form the basic precondition for freedom from customs duties and the free movement of goods.
The authoritative definition is currently found in Article 5 No. 23 and Article 153 of Regulation (EU) No. 952/2013 (Union Customs Code – UCC). According to this, Community goods are those movable items,
- that originate in the Member States of the European Union and have been exported from them or,
- those that are imported from third countries but, after proper customs clearance, have been brought into the customs territory of the Union and released into free circulation.
In older national regulations, the term “Community goods” was used in the context of the EEC and EC era before the term “Union goods” was introduced and replaced by the UCC. However, both terms are still used in general legal language within the European legal system.
Distinction: Community goods and third-country goods
Community goods
Community goods (now: Union goods) can generally be moved within the EU customs territory without further customs restrictions or controls. They are not subject to the restrictions applicable to goods with third-country status (non-Union goods). Classification as Community goods requires that they either originate from a Member State or have been duly admitted to free circulation.
Third-country goods
By contrast, third-country goods (non-Union goods according to UCC terminology) are those that either originate from a third country or, after temporary export, have not yet been reintroduced into free circulation under customs law. Third-country goods are subject to customs formalities within the EU, in particular monitoring, movement prohibitions, or special duties.
Origin and status of Community goods
Origin in the Union
Goods are considered Community goods if they have been entirely produced, obtained, or manufactured in a Member State. This includes, for example, agricultural products, industrial goods, or fish caught in EU waters.
Release for free circulation
Goods from third countries acquire the status of Community goods when, after payment in full of import duties and fulfillment of any trade policy measures, they are lawfully released for free circulation in the Union. After this process, they are treated as products originating in the EU.
Proof of status
Evidence as to whether goods are Community goods plays a significant role especially in intra-Community trade, in customs procedures, and in the return of goods (re-importation). Proof is provided by officially certified documents such as the T2 transit procedure, the T2L document, or electronic equivalents such as the NCTS information system.
Customs significance of Community goods
Customs-related movement of goods
Community goods may be moved between all EU Member States without further customs formalities, provided they are in so-called free circulation. The situation is different for third-country goods, which are subject to specific customs measures such as control, restriction, or the imposition of duties.
Economic effects
By being classified as Community goods, customs controls within the Union territory are eliminated. This enables the free movement of goods, promotes the single market, and significantly facilitates cross-border supply chains within the Union.
Exceptions and special cases
Special arrangements apply, for example, to special economic zones, free ports, or in exceptional cases to goods merely transiting through the EU customs territory. In such cases, goods only acquire Community status after full compliance with the customs requirements in the respective Member State.
Community goods in practice
Intra-Community trade
As part of intra-Community trade, possessing the status of Community goods allows for goods traffic without separate import or export customs clearance. The administrative procedures are thus significantly simplified, and a single market for goods is created within the EU.
Loss and regaining of Community status
Goods may lose their Community status in certain situations, such as when they are exported from the customs territory of the EU. The status as Community goods must then be demonstrated again through import and release for free circulation in order to claim the resulting rights.
Legal sources and development of the term
Legal bases
The key regulations governing Community goods are now found in the Union Customs Code (UCC) as well as in its implementing regulations and supplementary Union legal acts. Historical provisions are documented in the old Customs Code (EEC Regulation No. 2913/92), which was applicable until the UCC was introduced in 2016.
Terminological development
Since the entry into force of the UCC, the term “Community goods” has been replaced by the designation “Union goods”, but it remains referenced in numerous legal documents and older national laws. The legal consequences and significance for trade in goods, however, remain identical.
Significance and conclusion
The term Community goods holds a prominent place in European customs law. The legal classification of goods as Community goods is decisive for the enjoyment of the customs privileges associated with the single market. It allows for smooth, duty-free, and efficient movement of goods throughout the EU customs territory and thus puts the European Single Market into practical effect.
Sources and further reading:
- Regulation (EU) No. 952/2013 – Union Customs Code (UCC)
- Implementing regulations for the UCC
- National customs regulations of the Member States
- European Commission: Information portal on customs law
(Note: This article addresses the legal aspects of the term ‘Community goods’ in light of the relevant legal provisions and the current terminological development at Union level. Changes due to future legislation are possible.)
Frequently Asked Questions
How are Community goods legally treated when imported from a third country into the European Union?
When importing goods from a third country into the customs territory of the European Union, it must be determined whether they are Community goods or non-Community goods. Community goods are products that have either been manufactured entirely within the EU or have already been properly released into free circulation. According to the legal system of the customs codes, goods considered Community goods do not require further customs formalities when moved between Member States and are not subject to import duties. The situation is different when importing from a third country: here, the goods are initially treated as non-Community goods and are subject to customs procedures that require release into free circulation. Only after full payment of import duties, customs supervision, and, where applicable, compliance with trade policy measures, do they regain Community goods status as defined by the customs regulations of the EU.
What documents are required to legally prove Community goods status?
For legally secure proof of Community goods status, the EU prescribes binding documents and procedures. The most important means of proof is the so-called T2L or T2LF document. These documents serve to prove to customs authorities, during transport across borders within the EU domain or between parts of the customs territory, that the goods are duly introduced Community goods and not undeclared goods from third countries. Additionally, status can be proven via the electronic NCTS (New Computerised Transit System). The legal basis is found in particular in the Union Customs Code (UCC), as implemented by Delegated Regulation (EU) 2015/2446 and Implementing Regulation (EU) 2015/2447, as well as the respective national customs authority’s working instructions.
What happens in the event of discrepancies in Community goods status during a customs inspection?
If discrepancies arise during an inspection regarding the declared Community goods status, this has immediate legal consequences. If the status cannot be properly or at all demonstrated, the goods will be classified as non-Community goods under customs law. This results in obligations to make a customs declaration and, if necessary, pay import duties as well as present commercial accompanying documents for third-country goods. Breaches of the proof procedure or incorrect information may also be considered as administrative offences or even criminal, subject to heavy fines or further sanctions. In any case, the economic operator bears the burden of proof; the legal basis for this is found in Art. 153 et seq. UCC and the national customs regulations.
In which cases do goods legally lose their status as Community goods?
From a legal perspective, the status as Community goods can be lost in particular by export from the Union’s customs territory, entry into a customs warehouse or customs procedure for non-Community goods (such as the T1 transit procedure for third-country goods), processing or handling under customs conditions that are not permissible, or through destruction of the goods. Seizure by customs or other removal from free circulation also results in loss of Community status. The relevant legal bases are set out in the Union Customs Code and various implementing provisions.
What are the legal consequences of re-importing previously exported Community goods?
If Community goods are exported and subsequently re-imported, the legal procedure for returned goods treated as non-Community goods generally applies. The legal basis for this is Art. 203 UCC. After export, the goods must be declared as non-Community goods and can be re-imported under the returned goods system under certain conditions, without having to pay duty again. In any case, seamless proof is required that the goods are indeed exactly the previously exported Community goods; for this, evidence such as export documents is necessary. If this is not provided, the goods are treated as third-country goods and again subject to customs duties and procedures.
How are Community goods legally treated in the context of intra-Community movements of goods between Member States?
In a purely legal context, Community goods enjoy complete exemption from customs duties in intra-Community movements, as they are regarded as already in free circulation. No further customs formalities are required. The movement of Community goods between Member States is therefore unregulated from a customs law perspective and is subject only to statistical reporting obligations (INTRASTAT) and the general legal framework of the single market, such as regulations on product safety, consumer protection, or VAT. However, when goods are moved from customs and tax special areas (such as the Canary Islands), special provisions may apply.
What role do Community goods play, from a legal perspective, in the context of preferential arrangements and certificates of origin?
Preferential arrangements, as found in free trade agreements, are legally independent of the status as Community goods. Community goods status only certifies that a good has been lawfully and fully released into free circulation in the EU and is thus treated as an ‘EU good’. However, to benefit from tariff preferences in foreign trade with certain countries, a formal proof of preference (e.g., EUR.1) is usually necessary, verifying preferential origin in accordance with the respective origin rules. Community goods may, but do not necessarily have to, have preferential origin – keeping these terms legally distinct is important for practical application.
