Introduction to free movement of goods Course number: EUI17_5A4

1. Introduction to free movement of goods Course number: EUI17_5A4 Lecturer:

2. Aims of the lecture • To enhance the general knowledge of EU internal market, • To familiarize participants with the foundations of free movement of goods, • To allow participants to appreciate how free movement of goods has developed over the years, • To facilitate understanding of key concepts and rules underpinning the foundations of free movement of goods, • To allow participants to appreciate the relationship between primary and secondary legislation, on the one hand, and the case-law of the Court of Justice, on the other hand.

3. Free movement of goods - an important part of the common market project since the early years of the European Communities, Free movement of goods has been facilitated by legislative output of EU institutions as well as jurisprudence of the Court of Justice, NOTE: the EU is a customs union – all tariffs in internal trade abolished and common external customs regime established. Evolution of free movement of goods

4. In order to facilitate free movement of goods the following barriers had to be abolished: customs duties and other import levies, discriminatory taxation, quantitative restrictions, technical barriers to trade. Evolution of free movement of goods

5. No statutory definition in EU legislation, CoJ developed a definition of goods in case 7/68 Commission v Italy, Goods are products which: may be valued in money, may be subject of commercial transactions. What are “goods”?

6. NOTE: rules on free movement of goods apply to products originating from Member States and to products coming from third countries, which are in the free circulation in Member States (Art. 28 TFEU), NOTE: for the purposes of the EU-Ukraine Association Agreement the definition of “goods” follows GATT 1994 (Art. 26 para. 1 AA). What are “goods”?

7. CoJ, case 7/68 Commission v. Italy [works of art]; CoJ, case 7/78 R. v. Johnston [coins no longer in circulation]; CoJ, case C-358/93 and C-416/93 Criminal Proceedings against Aldo Bordessa and Others [coins]; CoJ, case C-2/90 Commission v. Belgium [waste]; CoJ, case C- 393/92 Gemeente Almelo and Others v. Energiebedrijf Ijsselmij NV [electricity]. What are “goods”?

8. Primary law: Articles 28-37 TFEU (NOTE: all key provisions are directly effective in the EU – they can be directly enforced in national courts), Secondary law: regulations on different aspects of mutual recognition (e.g. Regulation 764/2008/EC on mutual recognition) and regulations & directives on harmonisation of domestic laws (e.g. Regulation (EU) 2016/425 on personal protective equipment), Case-law of the Court of Justice (e.g. case 4/74 Dassonville). EU acquis on free movement of goods

9. Article 28 TFEU: the general framework for the customs union between the Member States, It covers all trade in goods and involves the prohibition of customs duties on imports and exports in the trade between the Member States, NOTE: abolition of customs duties was completed in 1969, ahead of the deadline for end of transition (1970), As a customs union the EU is a one unit to the outside World. Overview of the basic rules

10. Products coming from third countries are considered to be in free circulation in a Member State if/when import formalities have been complied with and any customs duties (or charges having an equivalent effect which are payable) have been levied, Productsexportedfrom Ukraine tothe EU, as soon as thecustomsformalities are compliedwith, benefit from free movement of goods, NOTE: Association Agreement aims at creation of a free trade area between Ukraine andthe EU. Overview of the basic rules

11. Article 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.’ Tariff barriers

12. Article 110 TFEU ‘No Member State shall impose, directly or indirectly, on the products of other Member States any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products. Furthermore, no Member State shall impose on the products of other Member States any internal taxation of such a nature as to afford indirect protection to other products..’ Tax discrimination

13. Art. 34 TFEU ‘Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States’ Art. 35 TFEU ’Quantitative restrictions on exports, and all measures having equivalent effect, shall be prohibited between Member States’ Technical barriers

14. Article 36 TFEU ‘The provisions of Articles 34 and 35 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archeological value; or the protection of industrial and commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.’ Technical barriers