European law
Textbook summary
Week 1
Chapter 12 – Free movement of goods
The internal market is defined in article 26(2) TFEU: “the internal market shall
comprise an area without internal frontiers which the free movement of goods,
persons, services and capital is ensured in accordance with the provisions of the
Treaties”
Aim of the internal market -> enable European manufactures to sell the same
product in all the Member States, thereby achieving economies of scale similar to
those in the US and creating greater prosperity throughout the region.
The custom union
By virtue of article 28(1) TFEU, the EU constitutes a custom union covering all
trade in goods. A custom union does not merely involve liberalization of trade
between the parties; it also entails the establishment of uniform rules for goods
coming from third countries. Consequently, a custom union has an external and
internal dimension (we only focus on the internal dimension):
The establishment of the custom union involves the prohibition of the following
internal barriers to trade goods between Member States:
a. Custom duties and charges of equivalent effect (CEE’s) - Article 30 TFEU
b. Quantitative restrictions and measures of equivalent effect (MEE’s) –
Articles 34 to 36 TFEU
c. Discriminatory and protective internal taxation – Article 110 TFEU
Articles 30 and 110 TFEU apply to fiscal rules (an obligation to pay a sum of
money)
Articles 34-36 TFEU apply to non-fiscal rules (an obligation to comply with other
types of requirements)
Goods originating from third countries and placed in free circulation of the EU
market ‘are definitely and wholly assimilated to products originating in Member
States’. Consequently, the free movement rules are applicable without distinction
to goods originating in the EU and those which have been put in free circulation
in one Member State
The meaning of ‘goods’: products which can be valued in money, and which are
capable, as such, of forming the subject of commercial transactions.
-> this meaning is not exhaustive (as more things fall under goods than this
definition)
Custom duties and charges of equivalent effect
The prohibition of custom duties is set out in article 30 TFEU:
“Custom duties on imports and exports and charges having equivalent effect
shall be prohibited between Member States. This prohibition shall also apply to
custom duties of a fiscal nature”
Custom duties -> charged levied on goods by reason of the fact that they cross
a frontier between Member States
, The abolition of custom duties between Member States was an essential element
in the establishment of the internal market since they are among the most
blatant obstacles to trade
Charges of equivalent effect -> any pecuniary charge, however small and
whatever its designation and mode of application, which Imposed unilaterally on
domestic or foreign goods by reason of the fact that they cross a frontier, and
which is not a custom duty in the strict sense
> Pecuniary = an obligation to pay a sum of money
The prohibition of custom duties and CEE’s constitutes a fundamental rule which
does not permit of any exceptions. Article 30 is therefore not subject to the
exception provided in article 36 TFEU.
The consequence of breaching the prohibition is that the MS concerned must
eliminate the CEE. Where charges have been unlawfully levied, the persons
concerned have a right to be reimbursed by the MS.
Quantitative restrictions and measures of equivalent effect
According to article 34 TFEU, QRs and MEEs on imports between member states
are prohibited. Article 35 TFEU lays down a corresponding prohibition as regards
QRs and MEEs on exports. Article 36 TFEU is an exception clause which provides
that QRs and MEEs may be justified in certain circumstances.
Quantitative restrictions: imports and exports
> The prohibition of on quantitative restrictions covers measures which amount
to a total or partial restraint of, according to the circumstances, imports, exports
or goods in transit
-> total restraint: total prohibition on imports or exports
-> partial restraint: system of import or export quotas
The concept of QRs is the same, whether import or export are at stake.
Measures of equivalent effect: Imports
> Dassonville: “All trading rules enacted by Member States, which are capable of
hindering, directly or indirectly, actually or potentially, intra-community trade”
> In Keck, the court divided measures into two types:
1. So called ‘product-bound’ measures, which concern the inherent
characteristics of a product such as designation, form, size, weight, composition,
presentation and labeling; and
2. Measures relating to ‘certain selling arrangements’
a. restrictions on when goods may be sold
b. restrictions on where or by whom goods may be sold
c. advertising restrictions
d. price controls
The court also ruled that Certain Selling Arrangements do not fall into scope of
Art. 34 TFEU, under the condition that they
1. Apply to all affected traders operating within the national territory
2. Do not discriminate against imports ‘in law’ or ‘in fact’
Some examples of MEEs on imports: Import licenses, inspections and
controls, requirements as to presentation or packaging, labelling requirements,
restrictions on use of possession, etc.
Textbook summary
Week 1
Chapter 12 – Free movement of goods
The internal market is defined in article 26(2) TFEU: “the internal market shall
comprise an area without internal frontiers which the free movement of goods,
persons, services and capital is ensured in accordance with the provisions of the
Treaties”
Aim of the internal market -> enable European manufactures to sell the same
product in all the Member States, thereby achieving economies of scale similar to
those in the US and creating greater prosperity throughout the region.
The custom union
By virtue of article 28(1) TFEU, the EU constitutes a custom union covering all
trade in goods. A custom union does not merely involve liberalization of trade
between the parties; it also entails the establishment of uniform rules for goods
coming from third countries. Consequently, a custom union has an external and
internal dimension (we only focus on the internal dimension):
The establishment of the custom union involves the prohibition of the following
internal barriers to trade goods between Member States:
a. Custom duties and charges of equivalent effect (CEE’s) - Article 30 TFEU
b. Quantitative restrictions and measures of equivalent effect (MEE’s) –
Articles 34 to 36 TFEU
c. Discriminatory and protective internal taxation – Article 110 TFEU
Articles 30 and 110 TFEU apply to fiscal rules (an obligation to pay a sum of
money)
Articles 34-36 TFEU apply to non-fiscal rules (an obligation to comply with other
types of requirements)
Goods originating from third countries and placed in free circulation of the EU
market ‘are definitely and wholly assimilated to products originating in Member
States’. Consequently, the free movement rules are applicable without distinction
to goods originating in the EU and those which have been put in free circulation
in one Member State
The meaning of ‘goods’: products which can be valued in money, and which are
capable, as such, of forming the subject of commercial transactions.
-> this meaning is not exhaustive (as more things fall under goods than this
definition)
Custom duties and charges of equivalent effect
The prohibition of custom duties is set out in article 30 TFEU:
“Custom duties on imports and exports and charges having equivalent effect
shall be prohibited between Member States. This prohibition shall also apply to
custom duties of a fiscal nature”
Custom duties -> charged levied on goods by reason of the fact that they cross
a frontier between Member States
, The abolition of custom duties between Member States was an essential element
in the establishment of the internal market since they are among the most
blatant obstacles to trade
Charges of equivalent effect -> any pecuniary charge, however small and
whatever its designation and mode of application, which Imposed unilaterally on
domestic or foreign goods by reason of the fact that they cross a frontier, and
which is not a custom duty in the strict sense
> Pecuniary = an obligation to pay a sum of money
The prohibition of custom duties and CEE’s constitutes a fundamental rule which
does not permit of any exceptions. Article 30 is therefore not subject to the
exception provided in article 36 TFEU.
The consequence of breaching the prohibition is that the MS concerned must
eliminate the CEE. Where charges have been unlawfully levied, the persons
concerned have a right to be reimbursed by the MS.
Quantitative restrictions and measures of equivalent effect
According to article 34 TFEU, QRs and MEEs on imports between member states
are prohibited. Article 35 TFEU lays down a corresponding prohibition as regards
QRs and MEEs on exports. Article 36 TFEU is an exception clause which provides
that QRs and MEEs may be justified in certain circumstances.
Quantitative restrictions: imports and exports
> The prohibition of on quantitative restrictions covers measures which amount
to a total or partial restraint of, according to the circumstances, imports, exports
or goods in transit
-> total restraint: total prohibition on imports or exports
-> partial restraint: system of import or export quotas
The concept of QRs is the same, whether import or export are at stake.
Measures of equivalent effect: Imports
> Dassonville: “All trading rules enacted by Member States, which are capable of
hindering, directly or indirectly, actually or potentially, intra-community trade”
> In Keck, the court divided measures into two types:
1. So called ‘product-bound’ measures, which concern the inherent
characteristics of a product such as designation, form, size, weight, composition,
presentation and labeling; and
2. Measures relating to ‘certain selling arrangements’
a. restrictions on when goods may be sold
b. restrictions on where or by whom goods may be sold
c. advertising restrictions
d. price controls
The court also ruled that Certain Selling Arrangements do not fall into scope of
Art. 34 TFEU, under the condition that they
1. Apply to all affected traders operating within the national territory
2. Do not discriminate against imports ‘in law’ or ‘in fact’
Some examples of MEEs on imports: Import licenses, inspections and
controls, requirements as to presentation or packaging, labelling requirements,
restrictions on use of possession, etc.
