{"id":3083,"date":"2018-06-23T15:13:23","date_gmt":"2018-06-23T14:13:23","guid":{"rendered":"http:\/\/legalblog.ie\/customs-union-basics\/"},"modified":"2022-09-24T15:54:55","modified_gmt":"2022-09-24T15:54:55","slug":"customs-union-basics","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/customs-union-basics\/","title":{"rendered":"Customs Union Basics"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/customs-union-basics\/#Customs_Union\" title=\"Customs Union\">Customs Union<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/customs-union-basics\/#Customs_Code\" title=\"Customs Code\">Customs Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/customs-union-basics\/#Effective_Barriers_Prohibited\" title=\"Effective Barriers Prohibited\">Effective Barriers Prohibited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/customs-union-basics\/#Single_Regulatory_Market\" title=\"Single Regulatory Market\">Single Regulatory Market<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Customs_Union\"><\/span>Customs Union<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The European Union Treaties created a customs union between the member states.\u00a0 It applies to all trade in goods which have monetary value and are the subject of commercial transactions. Goods for the purpose of the customs union includes everything capable of having value and being exchanged.<\/p>\n<p>What goods are supplied ancillary to the provision of services, the matter is dealt with in the context of the provisions on the freedom to supply services.\u00a0 Finance and monetary instruments including securities are dealt with under free movement of capital.<\/p>\n<p>It is a fundamental principle that EU states may not impose customs duties on imports or exports between them.\u00a0 Charges having an effect equivalent to a customs duty are also prohibited.\u00a0 This includes quantitative restrictions or measures having an equivalent effect.<\/p>\n<p>A common customs tariff has been adopted by the EU relative to third countries. The common customs tariff prescribes the custom rates on goods.\u00a0 Goods are classified in accordance with the system of nomenclature which accords with International Convention on Harmonised Commodity Description and Coding System.\u00a0 The European Union classification conforms to the internationally used classification.<\/p>\n<p>In addition to the combined nomenclature, the EU uses the integrated tariff known as the TARIC.\u00a0 This is a databank which is used by customs authorities with information on rates of duty, preferential rates and measures adopted by the European Union under the commercial policy relative to the goods etc.\u00a0 concerned.\u00a0 This includes levies, antidumping levies, quotas, probations, imports and exports bans etc.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Customs_Code\"><\/span>Customs Code<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A new community custom code was adopted upon the commencement of the single market in 1993. It was revised in 2016. The legislation provides a single framework for both the import and export of goods into and out of European Union.\u00a0 It provides rules on classification, valuation, determination of origin, recovery, appeals etc.<\/p>\n<p>The code provides for the determination of the classification of goods, the application of the relevant rates and rules for valuation.\u00a0 See generally the separate sections on customs.<\/p>\n<p>The customs code is administered by national Revenue authorities.\u00a0 Customs duties comprise part of the EU\u2019s own resources.\u00a0 The proceeds of customs less an administration charge is remitted to the European Union.\u00a0 This together with part of the proceeds of VAT constitute the principal sources of the EU\u2019s own resources.<\/p>\n<p>The customs union was established between the six original EEC states on 1st July 1968.\u00a0 Ireland, United Kingdom, and Denmark joined in 1973, and subject to a transitional period, the customs union applied to them after 1978.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Effective_Barriers_Prohibited\"><\/span>Effective Barriers Prohibited<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The European treaties prohibit measures and charges having an equivalent effect to customs duty.\u00a0 This is to negate the temptation for states to impose levies and charges that have the effect of customs duty, although not so described.\u00a0 In one of the very early and leading cases, the European Court of Justice held that the EEC Treaty prohibition on charges having an equivalent effect was directly effective.\u00a0 Accordingly, it applies directly to all states and states are obliged to give effect to it.<\/p>\n<p>A charge having an equivalent effect is a monetary charge howsoever described imposed on goods by reason of their crossing a frontier.\u00a0 It need not be revenue collecting, nor need it be\u00a0 protective in effect.\u00a0 There is a separate prohibition, and non-tariff barriers to the free movement of goods, which may apply to non-monetary impositions.<\/p>\n<p>A measure may be subject to the Treaty provisions even if it does not involve a state at all, such as where private entities impose charges which have this effect. It does not matter who is the beneficiary of the charge.\u00a0 It does not matter what its description is. The charge may apply at any stage in the production, distribution, and marketing of goods.\u00a0 \u00a0The critical factor is that it is applicable by reason of goods crossing a European Union frontier.<\/p>\n<p>The most blatant breaches of the prohibition are those applicable to imported goods only.\u00a0 However, the prohibition may apply to charges imposed on both domestic and imported goods.\u00a0 If it is discriminatory, it may breach the prohibition.<\/p>\n<p>Even if it is not discriminatory, it may still breach the prohibition if the proceeds are used to benefit domestic goods.\u00a0 If the charge has the purpose of financing activities for the advantage of domestic products, the provision may be breached.\u00a0 If domestic products achieve a refund or are otherwise benefited, the charge may be deemed to have an equivalent effect.<\/p>\n<p>The prohibition may be breached even if the charges are imposed exclusively on domestic goods. There is nonetheless discrimination (notwithstanding that this would be unusual).<\/p>\n<p>A charge which is levied for a genuine service may fall outside the prohibition.\u00a0 However, the exception is strictly applied.\u00a0 The service must be a genuine benefit. A specific benefit must be conferred. Charging for general assistance or quality control on all goods is insufficiently direct and specific. \u00a0Charges which are part of the customs clearing process have equivalent effect if they are imposed solely for the completion of customs formalities.<\/p>\n<p>Where the inspection is mandatory and does not provide a specific service, it is likely to be a charge having an equivalent effect.\u00a0 It does not have the requisite individual benefit.\u00a0 Where a charge can be justified, it must be proportionate to the actual cost of the relevant service.<\/p>\n<p>Where the service is required under EU or international law, a state may charge for that service.\u00a0 Charges for the purpose of health and safety inspections required by EU law will not breach the prohibition provided that they do not exceed the costs.\u00a0 They are obligatory and uniform are prescribed in the general interest of the community and promote free movement.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Single_Regulatory_Market\"><\/span>Single Regulatory Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After completion of the customs union, there remained a range of practical barriers to trade.\u00a0 These included technical requirements, provisions relating to VAT and restrictions on free movement of capital. Physical borders still remained between most states.\u00a0 In Ireland, customs post remained along the land border with Northern Ireland.<\/p>\n<p>The\u00a0 Single European Act adopted in 1986 facilitated completion of the internal market.\u00a0 It removed most internal borders.\u00a0 Checks still exist in the context of immigration and in relation to various public health and other excepted matters.\u00a0 However, routine border posts have been abolished for the most part.<\/p>\n<p>At the start of the millennium, measures were taken to ensure a modern customs code using electronic systems used to its greatest extent.\u00a0 Customs cooperation was enhanced between authorities.<\/p>\n<p><!--\/themify_builder_static--><\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-3083\" data-postid=\"3083\" class=\"themify_builder_content themify_builder_content-3083 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Customs Union The European Union Treaties created a customs union between the member states.\u00a0 It applies to all trade in goods which have monetary value and are the subject of commercial transactions. Goods for the purpose of the customs union includes everything capable of having value and being exchanged. What goods are supplied ancillary to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[120],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/3083"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=3083"}],"version-history":[{"count":1,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/3083\/revisions"}],"predecessor-version":[{"id":18253,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/3083\/revisions\/18253"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=3083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=3083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=3083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}