Originally Posted by
lovecabo
MThe AZ flight was considered "internal" (within the Schengen area), so when we arrived in FCO Terminal 1, it was like landing in RDU from ATL. Walked to baggage claim where no extra scrutiny was made, no customs declarations needed, and then out into the general area.
When flying to the Schengen area, you clear immigration at your first point of entry, but you clear customs at your final destination. You almost certainly walked through a green door/gate/whatever labeled "nothing to declare" after collecting your bags, which would have been your implicit customs declaration.