Originally Posted by
soitgoes
You will go through passport control in Frankfurt and customs in Toulouse.
For the most part, though, EU customs is simply baggage claim plus a green aisle (nothing to declare) and a red aisle (something to declare) at the exit. You will likely not need to speak to an agent and may not even see any customs officers (they're definitely watching you, though!).
(There are inspections of some pax, of course, but it's a different atmosphere than in the US--where you *will* talk to an agent and hand in a form.)
This was half of the story, this is the other half:
You go through customs with your HANDLUGGAGE in Frankfurt. In general, customs is only be interested in large duty free shop bags and "strange looking people" with backpacks or with huge cartons full with whatever (in general coming from Asia or Eastern Europe).
Your luggage will be checked through. You collect you CHECKED LUGGAGE at your final destination and walk through the green channel (or the red one, as appropriate) as
soitgoes said correctly. In provincial airports you will hardly see any customs officers.