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28 Cards in this Set
- Front
- Back
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Four Fundemental Freedoms |
Free movement of:
1) Goods -necessary for the achievement of a customs union, which is an essential step for the integration of markets 2) Persons 3) Services 4) Capital |
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Free Movement of Goods |
The Free Movement of Goods concerns the following: •Removal of CDs (including CEE) •Removal of QRs (including MEQR) |
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Definition of a 'good' |
- Commission v Italy (The Italian Art case) (Italy tried to claim that pieces of artistic heritage were not 'goods')
- Products capable of monetary value and which are capable of forming the subject of commercial transactions. - Art Treasures Case (Italian art) - Belgian Waste Case (toxic waste) - Almelo (electricity) |
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What is a customs union? |
- An agreement between countries to abide by two principles: a) A free trade area where goods pass between the countries without the imposition of restrictions such as customs duties (Internal aspect) b) A system, for the charging of common customs tariff on goods coming into the free trade area from other countries (External aspect) |
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Important Articles for FMG |
1) Article 30 TFEU - CDs and CEEs 2) Article 110 TFEU - Internal taxation 3) Articles 34 & 35 - Prohibits QR and MEEs 4) Article 36 - Derogations |
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What is the key difference between Article 30 and Article 110 TFEU? |
30 prohibits charges that are levied simply because goods have crossed the frontier of the state. 110 regulates charges that are levied as a system of internal taxation within the state. |
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Is article 30 directly effective?
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- Yes - this was confirmed in the case of Van Gend en Loos |
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What is a customs duty? |
- A pecuniary charge (however small) imposed on an importer by virtue of crossing a border - They have the effect of making imported goods more expensive relative to domestic goods therefore act as a fiscal barrier to trade - The purpose of the duty is irrelevant, its effect is what's important - Illegal per se |
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Commission v Italy - Art Treasures Case |
- Italy imposed a tax on exporting artistic heritage, the purpose was to prevent exportation and retain artistic heritage, NOT to raise revenues. Despite this, it was held that the imposition of the export tax was illegal |
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Charges with Equivilant Effect (CEE) |
- Charges disguised as a CD which have an equivalent effect to customs duties i.e. illegal per se - Commission v Italy (The Statistical Levy case) - Diamond Funds Case - Gingerbread Case |
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Commission v Italy (The statistical Levy case) |
- PROVIDED A COMPREHENSIVE DEFINITION OF CEEs - Italian govt imposed a small levy on goods exported to other MSs, claiming that the levy was imposed for the purpose of collecting statistical data for use in the analysis of trade patterns, which was argued to be of benefit to the traders |
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The Statistical Levy case's definition of CEEs |
a) Any pecuniary charge, however small b) Whatever its designation and mode of application c) Imposed unilaterally on domestic or foreign goods d) By reason of the fact that they crossed a frontier e) NOT a customs duty in the strict sense= CHARGE HAVING EQUIVALENT EFFECT EVEN IF... 1) it is not imposed for the benefit of the State 2) it is not discriminatory in effect 3) it is not protective in effect 4) the product on which the charge is imposed is not in competition with any domestic product |
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Gingerbread Case |
- Lux and Bel introduced a special import duty on imported gingerbread, in order to equate the foreign price to the domestic price which was high because of an internal tax on rye Held: this special import duty was a CEE to a customs duty. |
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Are there any possible defences to imposing a CEE?
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- There are 3 circumstances in which a charge on imports will not constitute a customs duty or a CEE - 110 Internal Taxation - COMMISSION V GERMANY |
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Commission v Germany (3 point test) |
- There are three instances in which a charge on imports will not constitute a CD or a CEE:
1) If the charge relates to a general system of internal taxation applied systematically and in accordance with the same criteria to domestic and imported goods alike - Denkavit - Bresciani - Chem. Pharma v DAF (ethylene) - Comm. v Greece (cars) - Humblot (cars) - Comm. v France (Sweet wine) 2) If the charge constitutes payment for a service in fact rendered to the economic operator of a sum in proportion to the service - Warehouse Case - Statistical Levy Case 3) If the charge attaches to inspections carried out to fulfil international or community obligations - Veterinary Inspection Case - Commission v NL |
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System of Internal Taxation Cases |
- Denkavit
- Bresciani - Chem. Pharma v DAF (ethylene) - Comm. v Greece (cars) - Humblot (cars) - Comm. v France (Sweet wine) |
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Payment for Service Rendered Cases |
- Warehouse Case - Statistical Levy Case - Ford Espana v Spain |
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Mandatory Charge Cases |
- Veterinary Inspection Case - Commission v NL |
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Does a CEE have to be levied at the border in order for it to be a CEE? |
NO - the charge need not be levied at the border, so long as it is levied by reason of crossing the border. |
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Diamond Funds Case |
- Even if a charge is not protectionist it is still a CEE -Belgian state introduced a charge on diamonds imported into Belgium - Clearly not a protectionist charge, as Belgium does not produce diamonds - Purpose of the charge was to fund additional social security benefits for Belgian diamond workers - CJ confirmed that customs duties and CEEs are prohibited regardless of the purpose for which they were introduced - What is important = the effect of the charge... |
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Dansk Denkavit
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- An internal tax must be applied systematically and in accordance with the same criteria to domestic and imported goods alike - CJ held that a charge levied to fund the cost of checking imported samples of foodstuffs for quality, which was imposed using the same criteria as applied to domestic products, was not a CEE, but part of an internal system of dues covered by Article 110 |
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Bresciani |
- Italian state imposed public health inspections on domestic and imported cowhides, which were paid for via a tax. However, the tax levied on domestic and imported goods had different criteria, therefore CJ ruled that it did not = internal tax - The inspections for importers were for a slightly different purpose than the ones for domestic producers, therefore not according to the same criteria or at the same stage of production. Therefore, the charges could not be a tax - It also couldnt be regarded as having benefitted the importer - Public health is not a specific benefit |
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Charge for Payment for Service Rendered |
- It must be payment for services rendered. - The charge must be proportionate consideration for a genuine service - Must contain a specific benefit to the importer or exporter. NB - an ad valorem charge is disproportionate therefore 30 applies - Commission v Belgium - Warehouse case |
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The Statistical Levy Case |
- Italian government argued that the levy was to pay for the collection of statistical data. - However, the CJ held that any benefit was too general. Therefore, it could not be regarded as having specific benefit, and was instead held to be a CEE |
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Commission v Belgium
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- Belgium was making importers store their items in warehouses whilst the items went through customs clearance. Belgium was charging importers to use the warehouse. - CJ held that a charge is a CEE where importers are forced to pay warehouse charges for storing their goods, where they are having to store their goods solely for the purpose of customs formalities. - Est. 3 stage test for Payment of services rendered |
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3 Stage Test for Payment of Services Rendered |
1) The charge is consideration for services rendered
2) It is of benefit to the importer 3) The amount charged is proportional with the costs of the service provided |
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The Veterinary Inspections Case
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- Related to charges for inspections mandated by EU law - German government charged a fee to cover the costs of veterinary inspections on imported live animals - The inspections were required by a directive regulating the protection of animals during international transport - The CJ held that this inspection fee was NOT a CEE, and set out four requirements for such a charge to not be regarded as a CEE |
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The Veterinary Inspection Case: 4 Requirments |
1) Must not exceed the actual cost if the service 2) The inspections must be obigitory and uniform for all the relevant products in the union 3) The inspections must be prescribed by EU law in the general interest of the Union 4) The inspections must promote the free movement of goods |
