Lecture 3- Week 3 EU Law The Internal Market and Fiscal Barriers to the Free movement of Goods Art 26 TFEU-internal market 1. The union shall adopt measures with the aim of establishing or ensuring the functioning of the internal market, in accordance with the relevant provisions of the Treaties. 2. The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties. ? Desire for internal markets is embedded in the treaty Goods-no definition in Treaty ? Definition derived from case law ... ? Products which can be valued in money and which may be the object of commercial transactions, Case 7/68 Commission v Italy (Art Treasures); Case C-97/98 Jagerskiold [1999] ECR I-7319 Topic One ? Fiscal barriers in the internal market ? Customs duties and Charges having equivalent effect (CEE) Articles 28/30 TFEU ? Taxes Article 110 TFEU Art 30 TFEU ? "Customs duties on imports and exports and charges having equivalent effect shall be prohibited between Member States ... " "Charges having equivalent effect to customs duties" ? No definition in the Treaties ? See Case 2ff/68 Commission v Italy (Statistical Levy) [1969] ECR 193 ? "any pecuniary charge, however small and whatever its designation and mode of application, which is imposed unilaterally on goods by reason of the fact that they cross a frontier and which is not a custom duty in the strict sense ... , 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." ? No de minimis exception here !! ? Most MS won't charge a custom duty as its prohibited so they'll include a service charge or something else just as similar Bresciani Case 87/75 ? Plaintiff imported raw cowhide into Italy from France had to pay a vet and public health inspection fee ? Fee introduced by Italy as a flat rate charge to offset the costs of the inspection ? But .... similar products of domestic origin are not subject to the same duty ? But in Italy when animals slaughtered there are vet inspections to ensure meat fit for consumption ? Similar products in the domestic market didn't have to pay this fee
Lecture 3- Week 3 EU Law ? Italy argues 1 Charge based on quantity of goods and not value so not prohibited Service is rendered to importers > Although differences in method and time of its application, the duty is also levied on similar products of domestic origin ? "WHATEVER ITS DESIGNATION AND MODE OF APPLICATION, A PECUNIARY CHARGE WHICH IS IMPOSED UNILATERALLY ON GOODS IMPORTED FROM ANOTHER MEMBER STATE WHEN THEY CROSS A FRONTIER CONSTITUTES A CHARGE HAVING AN EFFECT EQUIVALENT TO A CUSTOMS DUTY. ? NOR, IN DETERMINING THE EFFECTS OF THE DUTY ON THE FREE MOVEMENT