SH, I believe it's the Schengen Zone that you're referring to? I think the UK and only one other EU country are not part of the Schengen Zone.
Everyone going in and out of the UK must have a passport. And if you're non-EU, you must fill in those slips even though you are transiting within the EU. When you're transiting within the Schengen Zone, you do not need to fill in any sheets.
When travelling within the EU though, you never go through customs.
It's all a bunch of cheap formalities, anyways -- you just waive your passport as you go by the immigration guy... If you're non-EU, then they ask questions -- especially in the UK... At CDG, BRU, and FRA, it was "Welcome and have a good time."
[edited because i'm braindead]
[This message has been edited by YOWkid (edited 01-29-2003).]