When Latvia became a member state of the European Union, the territory of Latvia became a part of the EU customs area. Internal borders between the member States of the EU were removed – this meant that clearances by Customs at the Latvian – Lithuanian and Latvian – Estonian border were no longer made. Customs control is only conducted on the boundaries of the EU; in Latvia these are on the Latvian – Russian and the Latvian – Belarusian borders, as well as at ports, airports and other inland customs points.

Since the 1st May 2004, procedure for transit transport documentation has become simpler – a single transit document must be prepared for a specific transit transfer (customs declaration) which is valid in the whole customs area of the EU. Procedures for veterinary, phyto-sanitary, and safety controls of transit cargo are only implemented at the EU boundaries. Cargo which has been checked once when crossing into EU territory will not be subjected to controls a second time when crossing the border of another member State. Customs procedure for transit cargo is implemented only at control points on the frontier borders of the European Union. At Latvia’s ports, where mainly cargo is registered that have been shipped from the ports of other EU member States, customs procedures have been considerably decreased. Value-added tax and excise tax concessions are applied in free ports only to transit freight, and that cargo which is brought in with applicable customs regimes. The advantages of Latvia’s transit in comparison with other transit routes in the EU will be chiefly those of transport infra-structure, geographical location and tariff services.

Also border control of persons is not made between the EU member states. However, on the internal borders of Latvia with Lithuania and Estonia it will be discontinued only when the Schengen Agreement comes into effect. As in the field of customs, it will still be maintained on the EU boundaries as well as at ports and airports.