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Lecture 7 - Free Movement of Goods - Legal Dimension of Europe

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The video provides a comprehensive overview of the economic freedoms within the EU, focusing on the free movement of goods. It discusses the importance of the internal market, customs tariffs, charges with equivalent effects, and the prohibition of discriminatory taxes. The video also covers key legal cases related to charges on imported goods, quantitative restrictions, and measures affecting trade within the EU. It emphasizes the principles of non-discrimination, proportionality, and the free movement of goods to promote fair competition and economic stability within the EU. Additional resources are available for further study and preparation.

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Importance of Economic Freedoms in the EU.
The free movement of goods is a crucial aspect of the internal market within the EU, promoting economic stability and cooperation.
An area without frontiers and barriers for goods is a core concept within the EU.
Understanding the definition of a 'good' is essential for comprehending the free movement of goods.
Addressing legal problems related to the economic dimension of the EU can have professional and personal benefits.
Conditions for an Internal Market in the EU.
Member states cannot impose custom duties on goods, removing barriers and facilitating trade.
The establishment of a customs union removes all custom duties and charges with equivalent effects, enhancing economic integration.
A common customs tariff ensures a uniform import tariff for all member states from non-EU countries.
This promotes consistency in trade regulations across the EU.
Overview of customs tariffs in the EU, focusing on goods entering through the port of Rotterdam and their treatment within the internal market.
Goods in free circulation within the EU do not face internal custom duties, financial charges, or quantitative restrictions.
Discussion on pecuniary and non-pecuniary restrictions, highlighting the prohibition of new or reintroduced custom duties, charges, or other equivalent duties in the internal market.
Charges with Equivalent Effects to Custom Duties in TFEU.
Article 30 of the TFEU outlines charges and duties with equivalent effects to custom duties.
Prohibited charges on goods crossing borders, even if not officially labeled as custom duties.
Prohibition applies to charges on imported, domestic, and exported goods.
Focus is on the effects of the charges rather than their purpose; they are treated similarly to custom duties.
The Commission versus Italy case established the definition of charges with equivalent effects in relation to a statistical levy on imported and exported goods.
The European Commission argued that the levy acted as a customs duty equivalent, while Italy contested this claim.
The Court of Justice of the EU ruled against Italy, prohibiting not only customs duties but also similar charges.
This case clarified that charges with equivalent effects, even if not labeled as customs duties, could be prohibited if they function similarly.
These insights are important for understanding EU law and enforcement procedures.
Regulations on Charges for Services Provided in EU Member States.
Member states can charge for services like storage and inspections, as long as the fee is proportional to the service offered.
Charges for mandatory inspections, such as veterinary checks, are permissible under EU or international law.
The cost of the services should not be exceeded, and there should be no discrimination between foreign and domestic products.
Inspections should serve the importer's interest rather than being a revenue-generating mechanism for member states.
EU regulations on free movement of goods and taxes.
Member states cannot impose customs duties or discriminatory internal taxes on goods.
Varying prices for products like alcohol and tobacco are due to different tax systems in each country.
Article 110 of the TFEU requires equal taxation of foreign and domestic products.
The principle is to ensure fair competition and promote free movement of goods within the EU.
Discussion on Article 110 of the TVU promoting non-discriminatory treatment of domestic and foreign goods.
Emphasis on the requirement for similar products to be sufficiently similar, rather than exactly the same.
Highlighting the concept of indirect discrimination between foreign and domestic products with examples.
Touching on consumer substitution and the classification of products based on similarity.
Emphasizing the importance of adhering to Article 110 in setting taxes and treating goods fairly.
Implementation of a tax system in France based on engine capacity in 1984 led to indirect discrimination of foreign cars.
The high flat taxes applied to both domestic and foreign cars but only affected foreign cars as France did not produce cars with higher engine capacities.
This discrimination was deemed unlawful under EU regulations, which require taxes to be proportionate and not more than necessary to achieve objectives.
Exceptions to discriminatory taxes include objective justifications like protecting the environment or consumers, with a focus on proportionality.
Member states must ensure that taxes are in line with EU guidelines and do not unfairly target foreign products.
Prohibition of Quantitative Restrictions and Measures in the EU Market
Article 34 of the TFEU prohibits quantitative restrictions and measures with equivalent effects on imports and exports in the EU market.
Quantitative restrictions involve numerical limits on specific goods, while measures with equivalent effects act similarly without being officially quantitative.
Measures with equivalent effects can include unnecessary inspections or extra packaging, hindering the free movement of goods.
National laws imposed by member states may also impede the free movement of goods, similar to quantitative restrictions.
Case of discrimination against UK whiskey in Belgium.
Desonville tried to sell whiskey without required certificate, accused of forging.
Court of Justice of the EU defined measures equivalent to quantitative restrictions.
Emphasis on proper certification for imported goods within the EU.
The EU court's interpretation of Article 34 of the TFEU focuses on potential hindrances to trade rather than actual negative effects.
Exceptions exist in Article 36, allowing restrictions for public morality, policy, or security reasons.
Member states can justify import restrictions based on these grounds, such as banning Hitler's books or violent pornography.
The court aims to ensure the free movement of goods and prevent trade restrictions.
Understanding these exceptions is essential for studying EU trade law and how member states can argue for import/export restrictions.
The case of Cassis de Dijon involved a French alcoholic beverage being restricted from import into Germany due to public health concerns.
Germany argued that the beverage could induce tolerance towards alcohol and potentially lead to addiction.
The Court of Justice of the EU rejected Germany's justification, emphasizing the principle of mutual recognition.
The principle of mutual recognition states that products allowed in one member state should also be permitted in others unless there is a valid reason for restriction recognized by all member states.
Importance of Non-Discrimination and Justification in Product Restrictions
The court emphasized the need for restrictions to be justified and proportional, highlighting the case of Germany's alcohol restriction being deemed unnecessary and disproportionate.
Alternative Measures for Public Health Protection
The court suggested that clear labeling could have been an alternative measure to address public health concerns instead of imposing restrictions on goods.
Criteria for Justifying Restrictions
The court set criteria for when restrictions on goods can be justified to ensure a balance between protecting legitimate interests and not exceeding what is necessary.
Exceptions to Prohibition of MEQRs in French Law.
Cache and Earth engaged in predatory pricing practices by selling products below purchase costs, leading to criminal proceedings.
The French court sought a preliminary ruling from the Court of Justice on the legality of these selling arrangements.
The Court ruled that such arrangements can be exceptions to the prohibition of MEQRs under certain conditions, including no harmonization in EU law, non-discrimination between goods, and adherence to the proportionality principle.
Internal restrictions within EU countries are discussed, focusing on quantitative restrictions and equivalent effects.
The process of determining if a measure falls under specific categories and exceptions, such as public health or morality, is explained.
The aim is to ensure free movement of goods within the EU, prohibiting certain charges, duties, and discriminatory taxes.
Exceptions exist, requiring detailed analysis and application to cases and exams.
Additional practice resources are available for better understanding and preparation.