evidence: Melilla is a Spanish exclave in North Africa, on the Moroccan side of the Mediterranean. In some ways, it's similar to Ceuta but in other ways, it's a unique place. [...] From Morocco. Melilla is completely surrounded by Moroccan territory (and the sea), and this is obviously a very sensitive border. Many try to cross illegally into Spain, with dire consequences. Crossing legally (in either direction) is also an eye-opening experience, but presents no particular difficulties if you are not transporting counterfeit goods or hashish. [...] Melilla (like Ceuta) is a territorio franco, which means no VAT or other taxes.