PROBLEM 4
The Articles themselves do not provide a definitive answer to the important question of what is
meant by trade in goods. The Court held that goods are to be understood as goods which are
valuable in monetary terms and as such may be the subject of commercial transactions (ART
TREASURES invaluable values). Objects with a negative value or that are of inestimable value also
fall under the concept of goods.
Both articles are tariff barriers. These are obstacles in which a monetary burden is imposed. Article
30 TFEU monitors direct discrimination and Article 110 TFEU covers indirect discrimination. The
articles can therefore never apply at the same time. In order to determine whether a given case
concerns a system of internal taxation, the Court of Appeal examines whether a measure 'belongs to
a general system of internal taxation, whereby categories of products are systematically struck in
accordance with objective criteria applied independently of the origin of the products
(OUTOKUMPU).
Article 30 TFEU = charges having equivalent effect. Are charges that are levied on foreign products
at the borders permitted under European law? What are the derogations?
Applies where theeffect is of a levy levied either only on an imported product or only on an exported
product. In other words, Article 30 TFEU refers to direct discrimination, i.e. to measures with a
distinction.
Import and export duties are taxes levied either on imports of foreign products or on exports of
products located within one of the Member States. Import and export duties between Member
States are no longer in the order of the case.
The most important provision of Article 30 is the prohibition of charges having equivalent effect. This
type of import duty is by far the most common. The concept of charges having equivalent effect
(HGW; any pecuniary charge imposed unilaterally, whatever its name or structure, which is levied on
goods by reason of the crossing of frontiers and is not a customs duty stricto sensu) refers to import
and export duties which, although not explicitly bearing the name of, import or export duty, take the
form of such a duty, but which, on balance, have the same effect as import and export duties.
Thus, a charge having equivalent effect is that, irrespective of name and structure, a unilateral
pecuniary charge imposed — even if it is small — imposed on national or foreign goods by reason of
the crossing of frontiers and is not a customs duty in the strict sense must be regarded as a charge
having equivalent effect to an import duty under the Treaty.
There is a charge having equivalent effect when it comes to:
1. Any pecuniary charge imposed on the import or export of goods
2. Which is not import or export duty in the strict sense of the word
3. It is imposed for crossing the border
4. Which artificially increases the cost price of products and/or worsens their competitive
position vis-à-vis national goods
5. Which ultimately hinders the free movement of goods in the same way as a regular import or
export duty.
Charges having equivalent effect cannot be justified under Article 36 TFEU. As a result, a levy having
equivalent effect will always be prohibited. Two exceptions have been created in the case-law:
1
The Articles themselves do not provide a definitive answer to the important question of what is
meant by trade in goods. The Court held that goods are to be understood as goods which are
valuable in monetary terms and as such may be the subject of commercial transactions (ART
TREASURES invaluable values). Objects with a negative value or that are of inestimable value also
fall under the concept of goods.
Both articles are tariff barriers. These are obstacles in which a monetary burden is imposed. Article
30 TFEU monitors direct discrimination and Article 110 TFEU covers indirect discrimination. The
articles can therefore never apply at the same time. In order to determine whether a given case
concerns a system of internal taxation, the Court of Appeal examines whether a measure 'belongs to
a general system of internal taxation, whereby categories of products are systematically struck in
accordance with objective criteria applied independently of the origin of the products
(OUTOKUMPU).
Article 30 TFEU = charges having equivalent effect. Are charges that are levied on foreign products
at the borders permitted under European law? What are the derogations?
Applies where theeffect is of a levy levied either only on an imported product or only on an exported
product. In other words, Article 30 TFEU refers to direct discrimination, i.e. to measures with a
distinction.
Import and export duties are taxes levied either on imports of foreign products or on exports of
products located within one of the Member States. Import and export duties between Member
States are no longer in the order of the case.
The most important provision of Article 30 is the prohibition of charges having equivalent effect. This
type of import duty is by far the most common. The concept of charges having equivalent effect
(HGW; any pecuniary charge imposed unilaterally, whatever its name or structure, which is levied on
goods by reason of the crossing of frontiers and is not a customs duty stricto sensu) refers to import
and export duties which, although not explicitly bearing the name of, import or export duty, take the
form of such a duty, but which, on balance, have the same effect as import and export duties.
Thus, a charge having equivalent effect is that, irrespective of name and structure, a unilateral
pecuniary charge imposed — even if it is small — imposed on national or foreign goods by reason of
the crossing of frontiers and is not a customs duty in the strict sense must be regarded as a charge
having equivalent effect to an import duty under the Treaty.
There is a charge having equivalent effect when it comes to:
1. Any pecuniary charge imposed on the import or export of goods
2. Which is not import or export duty in the strict sense of the word
3. It is imposed for crossing the border
4. Which artificially increases the cost price of products and/or worsens their competitive
position vis-à-vis national goods
5. Which ultimately hinders the free movement of goods in the same way as a regular import or
export duty.
Charges having equivalent effect cannot be justified under Article 36 TFEU. As a result, a levy having
equivalent effect will always be prohibited. Two exceptions have been created in the case-law:
1
