1. Establishment of Internal Market
    1. Article 3 TFEU
      1. The Union shall establish an internal market. It shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. It shall promote scientific and technological advance.
      2. Internal Market bings together Free Trade Area and Customs Union (strong form of economic cooperation)
  2. Union will intervene in order to make internal market function- conferral of legislative competence
    1. Article 26 TFEU
      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. Article 114 TFEU
      1. Gives Union competence to adopt harmonising measures (necessary to establish conditions of an integrated market)
  3. Meaning of goods
    1. Commission v Italy (Art Treasures) 1968
    2. products which can be valued in money and which are capable, as such, of forming the subject of commercial transactions
      1. broad definition
  4. Removal of impediments to free movement of goods
    1. Fiscal Impediments
      1. Customs duties and charges of equivalent effect
        1. Article 28 TFEU
          1. EU will comprise of a customs union- Prohibition of customs duties, adoption of common customs tariffs for 3rd countries
        2. Article 29 TFEU
          1. Relating to products imported into EU from outside. Once inside EU they are subject to customs rules and considered to be in free circulation
        3. Donckerwolcke 1976
          1. Products imported between EU countries entitled to free circulation regardless of where they were made
        4. Article 30 TFEU
          1. Customs duties on imports and exports and charges having equivalent effect shall be prohibited between Member States
          2. Directly effective- can be brought before domestic courts
          3. Van Gend en Loos
          4. "equivalent effect"
          5. Art. 30 interpreted in broad terms
          6. Art Treasures Case
          7. No exception for cultural property
          8. Commission v Italy (statistical data levy)
          9. any pecuniary charge, however small, imposed on goods by reason of the fact that they cross a frontier constitutes an obstacle to the movement of such goods
          10. Sociaal Fonds voor de Diamantarbeiders
          11. low charges imposed to finance social security funds for workers in diamond industry. Court held still prohibited by Art.30
          12. purpose of measures irrelevant
          13. name irrelevant- can be tax, fee, levy, charge etc
          14. Cases where charge would not be of equivalent effect
          15. Charges for services rendered
          16. Commission v Italy (statistical data levy)
          17. Italian gov said the charge was just to collate info to provide statistical data that would benefit traders (so was for a service rendered)
          18. Court rejected this: Benefit of statistical data too difficult to assess and not specific to the trader- cannot be regarded as a specific benefit conferred
          19. So the charge was prohibited under Art. 30
          20. benefit must be specific to trader
          21. W. Cadsky SpA
          22. Italian gov imposed charge on exports of salad vegetables
          23. Gov said it was for quality checking- ie providing a service which should be paid for
          24. Court rejected this: the service was mandatory for the exporters, cannot be seen as conferring a benefit
          25. traders should not be charged for it
          26. also held the charge was disproportionate to service provided
          27. service must not be mandatory, must be proportionate
          28. Charges relating to requirements under EU law
          29. Bauhuis v Netherlands
          30. Public health inspections of exports of certain animals
          31. there was Union legislation requiring inspections to take place
          32. In these cases, they may charge for it
          33. Rationale- health inspections are necessary for free movement, not an impediment to it
          34. Charges relating to requirements under international law
          35. Commission v The Netherlands
      2. Discriminative or protective internal taxation
        1. Article 110 TFEU
          1. 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.
          2. Similar or competing products
          3. Directly effective
          4. Lutticke 1966
          5. Objective of the Art. 110
          6. Commission v France 1980
          7. to guarantee the complete neutrality of internal taxation as regards competition between domestic products and imported products
          8. Fiscal autonomy
          9. For member states to determine what tax to impose on what products
          10. Fiscal neutrality
          11. Whichever taxes are imposed, it must result in a system which is origin neutral
          12. Should be the same on domestic products as other products from EU
          13. Scope of Art. 110
          14. Bobie Getraenkevertrieb v Hauptzollamt Aachen-Nord 1976
          15. German legislation on beer, led to imported beer being taxed less than domestic beer only SOMETIMES (sometimes the reverse)
          16. still prohibited
          17. Art. 110 infringed even if imported products taxed more only in certain cases
          18. "similar/competing products"
          19. John Walker v Ministeriet for Skatter
          20. Whiskey taxed more heavily than wine in Denmark
          21. Denmark does not produce whiskey- favouring similar domestic products?
          22. Court said: No. Wine and whiskey not similar products. Objective and subjective criteria
          23. Whiskey is cereal based vs wine is fruit-based
          24. made by distillation vs fermentation
          25. different tastes
          26. consumers do not view them as interchangeable
          27. indirect discrimination also prohibited
          28. Humblot v Directeur des Services Fiscaux
          29. French system of car tax depending on strength of engine. Past a threshold, tax increased by 5x.
          30. No cars produced in France with engines of this strength
          31. Court held this was prohibited. System appears objective but is structured so as to protect domestic products.
          32. tax cannot have discriminatory effect
          33. Commission v UK (re: wine and beer)
          34. Wine taxed more heavily than beer in UK
          35. tax does not formally target imported products
          36. UK gov said reason is that UK consumers drink more beer
          37. Court said: still prohibited
          38. domestic legislation may not crystallise consumer habits
          39. Chemial Farmaceutici v DAF
          40. Italian legislation, higher tax for alcohol made from petroleum derivatives (Italy produces none) seems discriminatory
          41. prevents Italian producers from considering engaging in this kind of activity
          42. Held not to be discriminatory
          43. Willingness of Court of Justice to be more lenient
          44. Must be objective difference between products
          45. In the pursuit of a legitimate policy objective
          46. "in its present stage of development"- hint that things may change
          47. Tax Harmonisation
          48. removing different measures that MS have
          49. replacing them with a common EU measure
          50. Special rules for travellers
          51. Excise duty (particularly petrol, alcohol and tobacco)
          52. Article 32
          53. Excise duty on excise goods acquired by a private individual for his own use, and transported from one Member State to another by him, shall be charged only in the Member State in which the excise goods are acquired.
          54. "personal use"
          55. Joustra
          56. Man from Netherlands buying wine from France for members of a club.
          57. Should tax be paid in France or Netherlands?
          58. Held: Art. 32 should be construed narrowly
          59. products must be purchased and transported personally
      3. How do we tell whether a charge is a customs duty (assessed under A30) or whether it is a tax measure (assessed under A110)
        1. Capolongo v Maya 1973
          1. Financial charges within a general system of internal taxation applying systematically to domestic and imported products according to the same criteria are not to be considered as charges having equivalent effect.