Customs Union
A trading area covering two or more countries that agree to abolish internal tariffs and restrictions on the amount of trade (such as quotas), and have a common external tariff and other common trade controls.Notes
- Not to be confused with a free trade area - which has no common customs and no common trade policy.
- The EU is a customs union
- EFTA is a free trade area
Links
http://europa.eu.int/comm/taxation_customs/index_en.htm