Internal customs borders among EU Member States have been removed which means that customs clearance of the goods on the Latvian - Lithuanian and Latvian - Estonian border is no longer carried out. Customs control is performed only at the external borders of the EU, on the borders of Latvia with Russia and –with Belarus, as well as in ports, airports and inland customs offices. Freight transit processing is considerably simplified – only one transit document (customs declaration) is needed, which is valid throughout the EU customs territory. Only on the external borders of the EU veterinary, phytosanitary and safety control formalities are done for transit cargos. Cargo that has been examined once entering the EU territory is not controlled when re-crossing the border of another Member State. Customs formalities for transit cargo are carried out only at the external border checkpoints of the European Union. In Latvian ports customs formalities are significantly reduced for mainly transit cargoes are being formed at ports of another EU Member States. Value-added and excise tax relief are applied only in the free ports for transit cargoes and goods, which are imported with the application of appropriate customs regimes. The Latvian transport infrastructure, geographic location and service tariffs are the main transit advantages over other EU transit routes.