Fiscal Barriers To Trade

Question 1

What is the external aspect of Article 28 concerning customs union?

Answer 1

Adoption of a common customs tariff (CCT) in their relations with third party countries (non EU countries)

Question 2

What case defined goods as “products capable of being valued in money and which are capable as such of forming the subject of commercial transactions”?

Answer 2

Commission v Italy (Italian art)

• if something has no inherent value to it, the fact that it can be subject to a commercial transaction, makes it good as far as the customs union is concerned, and therefore rules on customs duties must be prohibited
• includes industrial and agricultural products subject to art39-44

Question 3

What case said customs duties on imports and exports and charges having equivalent effect shall be prohibited between MS as article 30 is vertically directly effective?

Answer 3

Van Gend en Loos

-Dutch had increased the customs duties on the importation of a certain good

Question 4

What is a CHEE and what case defined it as any pecuniary charge, which is imposed unilaterally on goods by reason of the fact that they cross a frontier and which is not a customs duties in the strict sense?

Answer 4

Commission v Italy (statistical levy)

Question 5

Which case said the prohibition of CHEEs is absolute?

Answer 5

Sociaal Fonds de Diamantarbeiders

Question 6

It is never legitimate to impose an actual customs duty. Which case laid out the circumstances in which it can escape classification as a CHEE?

Answer 6

Commission v Germany (live animals)

Question 7

In what case was a tax distinguished from a CHEE? And deemed a CHEE because it was a charge imposed upon the crossing of a frontier with no comparable charge on domestic goods?

Answer 7

Kapniki Michailidis v IKA

- Concerned tobacco exports

Question 8

Which case confirmed a CHEE includes a charge at the frontier not imposed on domestic goods or to make up for a charge on national products at a different marketing stage, as it would make the prohibition of CHEE meaningless if it wasn’t?

Answer 8

Denkavit v France

Question 9

What case states that where a genuine service provided for the benefit of the importer, it must not exceed the value of the service?

Answer 9

Rewe (cassis de Dijon)

Question 10

What case was a charge on all imports and exports to provide an export statistical service still considered to be a CHEE because the advantage of the service was so general and uncertain to be a payment or service renderered?

Answer 10

Commission v Italy

Question 11

What is the internal aspect of Article 28 concerning customs union?

Answer 11

Prohibition of customs duties on imports and exports and charges having equivalent effect to a customs duty (CHEE)

Question 12

Where a charge is imposed only on domestically produced goods the CJ appears to take a more lenient view, as seen in what case?

Answer 12

Apple and pear development council v KJ Lewis

Question 13

Which cases stated that it is only when services are mandatory, part of a common Union regime, or arising from an international agreement into which the EU has entered, that MS are entitled to recover the cost and more than than the cost of the service?

Answer 13

Bauhuis

Question 14

What 3 things do fiscal barriers prohibit?

Answer 14

Customs duties
CHEEs
Discriminatory internal taxation

Question 15

Commission v Germany (live animals) laid out that it is never legitimate to impose an actual customs duty but it can escape classification under what 3 circumstances?

Answer 15

a) constitutes a payment for a service in fact rendered to the economic operator of a sum in proportion to a service
b) or it attaches to inspections carried out to fulfil obligations imposed by Union (or international) law (so if it is mandatory under EU law as you have no discretion)
c) relates to a system of internal dues applied systematically and in accordance with the same criteria to domestic products and imported products alike I.e. Internal taxation (charges caught by taxation are dealt with under article 110)

Question 16

Which case said a charge based on the value of goods is not permissible?

Answer 16

Ford España v Spain

Question 17

What were the series of criteria under which charges may be imposed according to Bauhuis?

Answer 17

• charge must be proportionate to cost
• inspections must be obligatory (no discretion) and uniform
• orescribed by EU law in the interests of the EU (help to create the internal market) and
• promote free movement of goods by neutralising unilateral measures adopted in accordance with Art30

Question 18

Which case was milk powder imported from Luxembourg where Germany levied a turnover tax on the import and neither domestic natural milk or powder were subject to such a tax and so the claimant successfully challenged the legality of the tax because it was discriminatory contrary to the treaty ?

Answer 18

Lutticke v HZA Saarlouis- directly effective

Question 19

Which case discussed discussed the difference between a CHEE and a tax?

Answer 19

Kapniki

Question 19

Article 30 CHEEs are always imposed on what?

Answer 19

Goods as they cross a frontier and specifically charged to imports and exports to the exclusion of domestic products

Question 20

Article 110 discriminatory taxes are always imposed when?

Answer 20

Within the member state as part of the internal taxation system
They are only prohibited of discriminatory

Question 21

Which case said CHEEs are unlawful per se as it would be meaningless if they were not prohibited?

Answer 21

Denkavit

Question 22

What is an exotic import and what article will it come under?

Answer 22

A product that is not produced domestically

Article 110

Question 23

Which exotic import case was the discriminatory tax caught by article 110(2) as it must be entitled to free circulation once a product has entered the EU?

Answer 23

Cooperative co-frutta SRL- higher tax on bananas in Italy than fruits they made domestically

Question 24

What will a selective tax refund be caught by?

Answer 24

Article 30 if sole purpose of refund is to finance activities which benefit the taxed domestic product AND the product which has been taxed and the product benefitting from the charge must be the same AND refund paid in full
Otherwise caught by article 110

Question 25

What case said can escape a classification of a CHEE if it is prescribed by international law where the charge is proportionate to the cost?

Answer 25

C v Netherlands

Question 26

What is the difference between 110(1) and 110(2)?

Answer 26

110(1) similar goods

110(2) goods in competition

Question 27

Which case said similar under article 110(1) is goods in the same tax classification?

Answer 27

Firma Fink-Frucht GmbH

Question 28

Which case said similar under article 110(1) includes goods which meet the same demands of the consumer such as alcohol?

Answer 28

John walker

Considered objective characteristics, alcoholic content, method of manufacture and consumer perception

Question 29

Other goods under article 110(2) considers what 2 things?

Answer 29

If there is an actual/ potential relationship between the goods and of the tax system indirectly protects the domestic products

Question 30

What case said if there is a degree of substitutability then the products are in competition?

Answer 30

C v UK (Beer and Wine)

Question 31

What cases stated direct taxation is where imports and domestic products are explicitly treated differently based on origin?

Answer 31

C v Ireland (1980)
Bobie
Automatically unlawful and unjustifiable

Question 32

Which case did levels of taxation rise in even gradients till it reached the largest French engine then rose dramatically for larger engines resulting in a disproportionate burden for German cars?
Which case confirmed this?

Answer 32

Humblot

Confirmed in Feldain

Question 33

Indirect taxation may be justifiable but you need to shows what?

Answer 33

Value and proportionality of the measure

Question 34

Which case was discriminatory indirect taxation allowed to protect the domestic good due to its importance to the region as a whole?
Which other 2 cases apply to indirect taxation?

Answer 34

Chemical Farmaceutici v DaF Spa
C v France- sweet wines as opposed to unsweet wines
C v Greece- taxes on engine sizes