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The main purpose of Customs Union is to extend the trading area for business.

Q: What is the purpose of a customs union?

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The main purpose of Customs Union is to extend the trading area for business.

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Southern African Customs Union was created in 1910.

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Not usually.

As the EU is a customs Union, mail sent from one country to another does not have to be inspected by customs.

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When members of a free trade area:

1) add common external tariffs to the provisions of the free trade agreement

2) Abolish all customs checks between the countries.

then the free trade area becomes a customs union.

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The European Union.

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