BPP Study Manual Ch7 - Free Movement of Goods 1 Flashcards
What treaty article sets out the EU principle of free movement of goods?
26(2) TFEU
What are the four freedoms?
free movement of goods, services, persons and capital
How is ‘goods’ defined? In what case?
- ‘Italian Art Case’
- products that ‘can be valued in money and which are capable, as such, of forming the subject of commercial transactions’
What is a customs union?
1) free trade area: no imposition of restrictions between countries
2) common customs tariff: imposed on goods entering the area from outside
Which treaty provision allows generally for the creation of a EU customs union?
s8 (1) TFEU
What EU provisions concern barriers to trade between MS?
1) 30 TFEU - prohibition of customs duties and charges having equivalent effect
2) 110 TFEU - prohibition of discriminatory taxation
What EU provisions attempt to remove ‘hidden’ barriers to trade between MS?
34, 35 and 36 TFEU - prohibition of quantative restrictions and all measures having equivalent effect, and derogations from this provision
What case proved Article 30 TFEU had direct effect? What is Article 30 about?
- Van Gend En Loos
- 30 TFEU prohibits customs barriers between MS
Define a customs duty.
a charge of any size levying a duty to be paid by the importer to the state solely because the goods are being imported into that state
How important is the purpose of a customs charge?
- irrelevant
- in the Italian Art case, an Italian tax on exports to prevent the loss of artistic heritage was illegal
What is a CEE?
a Charge with the Equivalent Effect of a customs duty
In what case did the CJ define CEEs?
the Statistical Levy case against Italy
Define CEE
- pecuniary charge, however small,
- regardless of designation and mode of application,
- imposed unilaterally on goods because they cross a border
- ## even if the charge is non-protectionist
What does pecuniary mean?
of or relating to money
Give a case where a non-protectionist CEE was struck down.
Sociaal Fonds voor de Diamantarbeiders
What defences can a MS mount if they wish to levy a customs charge?
none - article 30 is an absolute prohibition
When might a charge on imports not constitute a customs duty or a CEE? From what case?
- Commission v Germany
1) if the charge relates to a general system of internal dues applied equally to domestic and imported goods
2) if the charge is payment for a service rendered that is of benefit to the exporter or importer
3) if the charge is for inspections carried out to fulful obligations under EU law
Why are internal dues exempt from article 30?
- they are an internal tax rather than a customs barrier
- Dansk Denkavit ApS
What did the CJ rule in the Statistical Levy case in relation to charges for services rendered?
- any benefit to traders from the charge was too general and hard to assess so it could not be seen as benefitting importers and exporters
- it was therefore seen as a CEE
What did the CJ decide in Bresciani in relation to services rendered?
- health inspections on raw cowhides were for the benefit of public health not for the benefit of the importer
- charge was therefore a CEE
What test developed from the Customs Warehouses case in relation to CEE?
a charge is not a CEE when:
1) it is consideration for services rendered
2) it is of benefit to the importer, and
3) the amount charged is commensurate with the cost of the service provided
What are the requirements from Commission v Germany for an inspection charge to not be a CEE if the inspection is imposed by EU law?
1) charge must not exceed actual cost of inspection
2) inspection must be obligatory and uniform for all relevant products in the Union
3) inspections must be prescribed by EU law in the general interest of the Union
4) inspections must promote the free movement of goods, eg by neutralising obstacles that could have arisen from unilateral inspection methods
What are rules for inspections imposed by international law? From what case?
- Commission v Netherlands
- same as for inspections imposed by EU law
Why is article 110 TFEU necessary?
- prevents internal fiscal barriers
- therefore stops MS from replacing import taxes with internal taxes on imported products
