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How does the custom house work in Freecol? I built custom house but nothing happens. Previously I played Colonization a lot where custom houses worked automatically, they sold available goods.

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Have you set it up in the warehouse dialog? I don't think the custom houses automatically start exporting goods; they just allow you to set up automatic export. See here (search "custom house", it's a long guide) for more information.

Here's a short summary:

If you have already built a Custom House in the colony, you can export goods to Europe automatically. Goods marked to be exported are printed in green. Open the warehouse dialog (see below) in order to change export settings.

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