The Customs Territories of the European Union ( EU), Turkey, San Marino and Andorra. The unions between the European Union and these countries enable most goods in free circulation to move freely between them without the need to claim import duty relief; subject to the production of any necessary preference or Community Transit ( CT) documentation. VAT is still due on imports from Turkey; San Marino and Andorra, however, unless the goods are eligible for relief. HM Customs & Revenue Glossary
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an agreement between two or more countries to reduce or stop customs duty on goods traded between them:
• There will be a customs union, free trade in goods and services, and free movement of labour, money and capital.
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customs union UK US noun [C] ECONOMICS, COMMERCE
► an agreement between two or more countries to reduce or remove any taxes on goods traded between them, and to charge the same taxes on goods imported from other countries: agree/form a customs union »
The three countries have formed a customs union to promote trade.
Financial and business terms. 2012.