LW302
Week 7
The Internal Market
Free Movement of Goods I
Article 28TFEU
(ex Article 23 EC)
1. The Union shall comprise a customs union which shall cover all trade in goods and which
shall involve the prohibition between Member States of customs duties on imports and
exports and of all charges having equivalent effect, and the adoption of a common customs
tariff in their relations with third countries.
2. The provisions of Article 30 and of Chapter 2 of this Title shall apply to products
originating in Member States and to products coming from third countries which are in free
circulation in Member States.
Article 29TFEU
(ex Article 24 EC)
Products coming from a third country shall be considered to be in free circulation in a
Member State if the import formalities have been complied with and any customs duties or
charges having equivalent effect which are payable have been levied in that Member State,
and if they have not benefited from a total or partial drawback of such duties or charges.
Article 30TFEU
(ex Article 25 EC)
Customs duties on imports and exports and charges having equivalent effect shall be prohibited
between Member States. This prohibition shall also apply to customs duties of a fiscal nature.
Article 110TFEU
(ex Article 90 EC)
No Member State shall impose, directly or indirectly, on the products of other Member States
any internal taxation of any kind in excess of that imposed directly or indirectly on similar
domestic products.
Furthermore, no Member State shall impose on the products of other Member States any
internal taxation of such a nature as to afford indirect protection to other products .
1
, As barriers to inter state trade we can consider:
i) Customs duties caught by articles 28-30TFEU (previously 23 to 25EC) and
taxes 110TFEU (previously articles 90 to 93EC).
ii) non-tariff barriers articles 34 to 37TFEU (previously articles 28 to 31EC)
iii) Currency controls.
Customs Duty:
Commission v Italy Case 7/68 ECR 423,429: A custom duty is a charge, determined on the
basis of a tariff, specifying the rate of duty to be paid by the importer to the host state.
CEE:
The CEE are not defined in the Treaty; but in Commission v Luxembourg and Belgium (Case
2 and 3/62): “duties whatever their description or technique imposed unilaterally, which
apply specifically to a product imported by a member state but not to a similar national
product and which by altering the price have the same effect upon the free movement of
goods as a customs duty”.
Commission v Italy Case 24/68:
CEE are:
“Any pecuniary charge, however small and whatever its designation and mode of application,
which is imposed unilaterally on domestic or foreign goods by reason of the fact that they
cross a frontier…constitutes a charge having an equivalent effect…even if it is not imposed
for the benefit of the State, is not discriminatory or protective in effect and if the product on
which the charge is imposed is not in competition with the domestic product”.
In order to breach article 30TFEU (25EC), a charge need not be introduced for protectionist
reasons.
Sociaal Fonds: the “diamonds” case.
- A charge on diamonds was imposed by the Belgian government at the border
- There was no diamond industry in Belgium
- The charges were used to provide for social funding for several types of
workers.
What matters is the effect of the charge.
2
Week 7
The Internal Market
Free Movement of Goods I
Article 28TFEU
(ex Article 23 EC)
1. The Union shall comprise a customs union which shall cover all trade in goods and which
shall involve the prohibition between Member States of customs duties on imports and
exports and of all charges having equivalent effect, and the adoption of a common customs
tariff in their relations with third countries.
2. The provisions of Article 30 and of Chapter 2 of this Title shall apply to products
originating in Member States and to products coming from third countries which are in free
circulation in Member States.
Article 29TFEU
(ex Article 24 EC)
Products coming from a third country shall be considered to be in free circulation in a
Member State if the import formalities have been complied with and any customs duties or
charges having equivalent effect which are payable have been levied in that Member State,
and if they have not benefited from a total or partial drawback of such duties or charges.
Article 30TFEU
(ex Article 25 EC)
Customs duties on imports and exports and charges having equivalent effect shall be prohibited
between Member States. This prohibition shall also apply to customs duties of a fiscal nature.
Article 110TFEU
(ex Article 90 EC)
No Member State shall impose, directly or indirectly, on the products of other Member States
any internal taxation of any kind in excess of that imposed directly or indirectly on similar
domestic products.
Furthermore, no Member State shall impose on the products of other Member States any
internal taxation of such a nature as to afford indirect protection to other products .
1
, As barriers to inter state trade we can consider:
i) Customs duties caught by articles 28-30TFEU (previously 23 to 25EC) and
taxes 110TFEU (previously articles 90 to 93EC).
ii) non-tariff barriers articles 34 to 37TFEU (previously articles 28 to 31EC)
iii) Currency controls.
Customs Duty:
Commission v Italy Case 7/68 ECR 423,429: A custom duty is a charge, determined on the
basis of a tariff, specifying the rate of duty to be paid by the importer to the host state.
CEE:
The CEE are not defined in the Treaty; but in Commission v Luxembourg and Belgium (Case
2 and 3/62): “duties whatever their description or technique imposed unilaterally, which
apply specifically to a product imported by a member state but not to a similar national
product and which by altering the price have the same effect upon the free movement of
goods as a customs duty”.
Commission v Italy Case 24/68:
CEE are:
“Any pecuniary charge, however small and whatever its designation and mode of application,
which is imposed unilaterally on domestic or foreign goods by reason of the fact that they
cross a frontier…constitutes a charge having an equivalent effect…even if it is not imposed
for the benefit of the State, is not discriminatory or protective in effect and if the product on
which the charge is imposed is not in competition with the domestic product”.
In order to breach article 30TFEU (25EC), a charge need not be introduced for protectionist
reasons.
Sociaal Fonds: the “diamonds” case.
- A charge on diamonds was imposed by the Belgian government at the border
- There was no diamond industry in Belgium
- The charges were used to provide for social funding for several types of
workers.
What matters is the effect of the charge.
2
