Customs agreement
The term customs agreement designates in the narrower sense a bi- or multinational agreement for the formation of a common customs area . Flows of goods between these countries are then no longer subject to restrictions, depending on the type of agreement, and are treated like domestic goods of the other countries involved.
In a broader sense, it names every intergovernmental agreement that contains regulations on customs issues.
Customs agreements serve to facilitate trade and, as a rule, create larger domestic markets with more capital ( free trade zones ) that can hold their own in international competition better than the previously separate individual markets. NAFTA is an example of such a market .
An example of a customs agreement in the narrower sense is the customs agreement between the French Republic and the Principality of Monaco of 1963. In Monaco, French customs law initially applied and, when France joined the European Community (EC) according to Art. 3 Customs Code, the customs law of the European Community applied . Goods that are imported from a third country via Monaco are treated in accordance with EC customs law and are considered Community goods after they have been released into free circulation in Monaco, even though Monaco is not a member of the EC. This is due to the small size of Monaco and the traditional connection to France.
