Free Movement of Goods Lecture Notes PDF

# Free movement of goods ## Part 1 - Section 1 ### Prohibition of customs duties and charges having equivalent effect (Articles 28 and 30 TFEU) - **PROF. MASSIMILIANΟ ΜΟΝΤΙΝΙ** - University of Siena (Italy) - EU Economic Integration Law - Academic Year 2024/2025 - **Lecture No. 5 - 21...

# Free movement of goods ## Part 1 - Section 1 ### Prohibition of customs duties and charges having equivalent effect (Articles 28 and 30 TFEU) - **PROF. MASSIMILIANΟ ΜΟΝΤΙΝΙ** - University of Siena (Italy) - EU Economic Integration Law - Academic Year 2024/2025 - **Lecture No. 5 - 21 October 2024** - Jean Monnet Chair CE4INT - https://ce4int.unisi.it ## Free Movement of Goods - Free movement of goods is a fundamental feature of the European internal market, which is based on the four freedoms of movement (goods, persons, services, capital). - Rules regulating freedom of movement of goods are contained in Part III, Title II, TFEU. ## Free Movement of Goods: Three Pillars - The free movement of goods in the European Internal Market is based on the following three pillars: - **a)** prohibition of customs duties and charges having equivalent effect (Art. 28 and 30 TFEU) - **b)** prohibition of discriminatory internal taxation (Art. 110 TFEU) - **c)** prohibition of quantitative restrictions and measures having equivalent effect (Art. 34-36 TFEU) ## Goods: Notion and Territorial Application - Rules on free movement of goods apply to all trade in "goods". - **Notion of goods:** "it encompasses all products likely to have monetary value and therefore likely to to be the object of a commercial transaction" (concept developed by the Court of Justice, no definition of goods in the Treaty.) - **Territorial application:** the rules on the free movement of goods apply to all goods produced in the territory of the Union, and those coming from third countries which are in the territory of a Member State (goods in free circulation). ## Prohibition of Customs Duties and Charges Having Equivalent Effect (I) - **Art. 28 TFUE:** - "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. 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." ## Prohibition of Customs Duties and Charges Having Equivalent Effect (II) - **Art. 30 TFEU:** - "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." - Why is it important to remove customs duties on imports (and exports)? To prevent possible restrictive effects caused by customs duties, in order to facilitate free circulation of goods in the internal market. - Why is it important to remove all charges having equivalent effect? To prevent Member States from adopting measures other than customs duties which may have restrictive effects on the import/export of goods, limiting the benefites of the removal of customs duties. (Court of Justice, Case 78/76, Steinike (citrus concentrates), 1977) ## Prohibition of Customs Duties and Charges Having Equivalent Effect (III) - What are "customs duties"? - No definition in the Treaty. - The concept of custom duties refers to any tax or charge imposed on a product (depending on its value) (charge ad valorem) in connection with the crossing of a border, with regard to both import or export of goods. ## Prohibition of Customs Duties and Charges Having Equivalent Effect (IV) - What are "charges having equivalent effect"? - No definition in the Treaty. - The concept has been defined by the European Court of Justice: "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." (Court of Justice, Case 46/76, Bauhuis, veterinary checks on livestock, 1977) - A charge having equivalent effect exists when the following conditions occur. It must be: - **a)** a pecuniary charge, this meaning that the payment of a certain amount of money is requested - **b)** a change which applies to goods in relation to the fact that they cross a border - **c)** a charge unilaterally imposed by the State that imports or exports goods. - The charge is prohibited both if it is levied at the border or somewhere else within the territory of a Member State. (Court of Justice, Case C-277/91, Ligur carni, inspection of fresh meat, 1993) ## Products in Free Circulation (I) - **Art. 29 TFUE:** - "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." ## Products in Free Circulation (II) - Products originating in third countries that have been lawfully imported into the customs territory of the European Union, through any Member State, are said to be in free circulation. - The products in free circulation have obtained the single administrative document (SAD), which accompanies them throughout the European customs union. - The products in free circulation enjoy the same freedom of movement of products originating in a Member State.