The Free Movement Of Goods

These flashcards focus on the vocabulary related to the Free Movement of Goods in the context of EU law.

Free Trade Area

A region that allows free movement of goods between participating states, prohibiting customs duties and quotas.

Customs Duties

Taxes imposed on the import and export of goods between countries.

Tariffs

A tax or duty to be paid on a particular class of imports or exports.

Quota

A limit on the quantity or value of goods that can be imported or exported.

Customs Union

An agreement between countries to eliminate customs duties and tariffs while adopting a common external tariff on imports.

Common Customs Tariff (CCT)

A unified tariff schedule applied by all countries in a customs union on goods imported from outside the union.

Economic Union

A type of trade bloc which features free trade and includes harmonization of monetary and fiscal policies among member states.

Monetary Policy

The policy adopted by the monetary authority of a country regarding the supply of money and interest rates.

Internal Market

A system allowing the free movement of goods, services, capital, and labor within a region.

Free Movement of Goods

The principle that allows goods to move freely across borders in the European Union without tariffs or quotas.

Charges Having Equivalent Effect (CEE)

Any charges imposed on goods passing through a border that act like customs duties.

Article 28 TFEU

Regulates the establishment of a customs union that prohibits customs duties between member states.

Cassis de Dijon

A legal ruling that established the principle of mutual recognition of goods within the EU.

Measures Having Equivalent Effect (MEEQR)

Any trade regulations that hinder imports or exports of goods, even if they do not specifically restrict the amount.

Internal Taxation

Taxes imposed by a Member State that cannot discriminate between domestic and imported products.

Prohibition of Quantitative Restrictions

A principle that prevents member states from imposing limits on the quantity of goods that can be imported or exported.

Public Morality

A justification used by member states to restrict imports which align with their moral standards.

Public Policy

Grounds for justifying restrictions on trade to maintain national laws and standards.

Public Security

The general safety of the population which can be a basis for restricting imports.

Health Protection

Legislation that seeks to safeguard public health, which may affect trade in goods.

Proportionality Principle

A legal principle that requires that the measures taken are appropriate, necessary and do not exceed what is required.

Overriding Requirements

Public interests that can justify otherwise restrictive measures on trade.

European Central Bank

The central bank for the Eurozone, responsible for monetary policy within the euro area.

Mandatory Requirements

Factors that allow for some regulation of trade if necessitated by public needs.

Consumer Protection

Regulations designed to protect consumers from unfair business practices and ensure fair trade.

Harmonization

The process of creating common standards across different jurisdictions to facilitate trade.

Market Access

The ability of a company or country to sell goods and services in a foreign market.

ECJ

European Court of Justice, the court of the European Union which interprets EU law.

Case Law

Law established by the outcome of former court cases, guiding future cases.

Trade Barriers

Government-instituted regulations or policies that make trade difficult or costly.

Trade Agreements

Treaties between two or more countries to govern trade in goods and services.

Mutual Recognition

The acceptance that goods legally produced in one jurisdiction can be sold in another.

Post-Cassis Jurisprudence

Legal developments following the Cassis de Dijon case that have influenced trade laws.

ECHR

European Convention on Human Rights, which influences EU legislation and policies.

Fiscal Policy

Government spending policies which influence macroeconomic conditions.

Equivalence Test

Ensures that products sold in different countries meet the same standards and regulations.

Flexibility Principle

The ability of Member States to justify national regulations that might hinder free movement of goods.

Protectionist Measures

Policies adopted by countries to protect their domestic industries from foreign competition.

Compliance

Conformance to laws, regulations, and guidelines within a given context.

Trade Facilitation

Efforts and processes that can reduce the costs of trade.

Free trade area

prohibition of customer duties and quotas between participating states and other participating states

Free movement of goods

customs union

prohibition of customs duties and quotas (internal) + common customs tariff

includes external policies regarding customer duties, common custom tariffs for both countries relationship with others

Common trade policy for countries outside of the customs union, can only be an EU wide free trade agreement that allows for the unrestricted exchange of goods among member states while applying the same tariffs on imports from non-member countries.

The EU

Internal Market

no custom duties/quotas + common customs tariffs + free movement of other factors of production

services and workers integrated

Economic Union

No customs duties/quotas + common customs tariff (CCT) + free movement of other factors of production + harmonisation of monetary and fiscal policy

Not the case in the EU as each member state’s respective parliament decides their budgets without limits and monetary policies.

The EU internal market

Free movement of goods

Free movement of services

Freedom of establishment

Free movement of workers

Free movement of capital and payments

Free Movement of Goods

Removal of customs duties (including charges having equivalent effect CEE)

Removal of quantitative restrictions (including measures having equivalent effect to quantitative restrictions)

Mandatory requirements (Cassis De Dijon)

Derogations

Post-cassis jurisprudence and post-post cassis jurisprudence

Article 28(1) Treaty of the Functioning of the European Union

“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 an equivalent effect, and the adoption of a common customs tariff in their relation to third countries.”

Duties + charges

Article 30 Treaty on the Functioning of the European Union

“Customs duties on imports and exports and charges having equivalent effect shall be prohibited between member states”

“Arts Treasures” Case

Article 28 TFEU covers “all trade in goods”

Issue of the case centred on what is a good?

The ECJ formulated a broad definition of ‘goods’ to include:

“products which can be valued in money and which are capable of forming the subject of commercial transactions.

The court defined a CEE as “any charge which, by altering the price of an article exported, has the same restrictive effect on the free circulation of that article as a customs duty.”

Article 36 TFEU was confined to regulatory restrictions and could not be extended to fiscal charges.

Goods in free circulation

Article 28 TFEU

“The […] shall also apply to products originating in [MS] and to products coming from third countries which are in free circulation in [MS]”

“Products coming from a third country shall be considered to be in free circulation in a MS 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 MS and if they have not benefited from total or partial drawback of such duties or charges.”

Charges having Equivalent Effect (CEE)

• In practice there are no blatant customs duties (anymore)

• CEE are the measures that occur in practice.

• As there is no definition in the TFEU the jurisprudence of the Court of Justice is vital.

Defined in ‘Statistical Levy’ and ‘Diamond Workers’

‘Statistical Levy’ + ‘Diamond Workers’

ECJ: “[…] 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, and which is not a customs duty in the strict sense, constitutes a charge having 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 any domestic product.”

Internal Taxation

Article 110 TFEU

• “no MS shall impose, directly or indirectly, on the products of other MS any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products.

• Furthermore, no MS shall impose on the products of other MS any internal taxation of such a nature as to afford indirect protection to other products.”

Tax: applies equally to domestic and non-domestic goods

Internal taxation is (almost) entirely within the competence of the Member States

Prohibition of quantitative restrictions and MEEQRs

Article 43 TFEU (formerly Article 28/30 EC): ”Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States”

Article 35 TDEU (formerly Article 39/34 EC): ”Quantitative restrictions on exports, and all measures having equivalent effect, shall be prohibited between member states.

Definition of quantitative restriction

Any measure of a Member State that restraints the import, transit or export of a certain good {…} according to quantity or value (Case 7/73, Geddo)

A clearer definition is not necessary because the notion of “measure having equivalent effect to a quantitative restriction” (MEEQR) includes quantitative restriction in the strict sense.

MEEQR in Article 2, Council-Directive 70/50/EEC

Minimum or maximum prices specified for imported products