If there are any experts on EU customs rules, I would appreciate some guidance with this question:

When entering the EU with goods to declare, is the duty paid in the country of the first point of entry, or in the country of final destination?

Consider the following scenario:

* Passenger travels from US to NL with some goods (gifts) in excess of standard travel allowance.

* The goods are expected to remain in NL where they will be gifted to friends & family.

* Passenger intends to declare goods and pay the customs duty and VAT (if applicable).

* On the way to NL, passenger stops in the UK for a business trip.

* After a few days, passenger flies from the UK to NL (LHR-AMS) with the same goods he had brought with him when he entered the UK. No goods stayed behind in the UK.

* Although the UK is not in Schengen, it is inside the EU customs area.

So, where is the passenger supposed to declare the goods and pay the duties?

(i) At the first point of entry in the EU (i.e. London, UK),
(ii) At the final destination (AMS airport in NL)?
(iii) Both?

Logic would dictate (i) but I am sure there are many exceptions. Any assistance would be greatly appreciated!

P.S. The EU is very confusing. Some countries are both within the customs union and the immigration common-travel area known as Schengen (i.e. France). Other countries are within the customs union but outside Schengen (i.e. UK). And then you have countries that are within Schengen and outside the customs union (CH, for example). With such a complicated system it is hard to keep up with all the rules.