Free movement of goods

Objectives:

- Freedom of movement applies to products originating in the Member States and products from third countries which are in free circulation in the Member States [Article 23(9), second subparagraph ECT].

- To start with, free movement of goods was seen as part of a customs union of the Member States, involving the abolition of customs duties, quantitative restrictions on trade and equivalent measures, and the establishment of a common external tariff for the Community.

- Later, the emphasis was laid on eliminating all remaining obstacles to free movement with a view to creating the internal market – an area without internal frontiers, in which goods (among other things) could move as freely as on a national market.

The elimination of customs duties and quantitative restrictions (quotas) between Member States, which was due to be completed by the end of the transitional period, was in fact accomplished by 1 July 1968, i.e. one and a half years early.

On the other hand, this deadline was not met in the case of the supplementary objectives – the prohibition of measures having an effect equivalent to that of customs duties and of quantitative restrictions, and harmonisation of the relevant national laws. These came to be the central objectives of an ongoing effort to achieve freedom of movement, to which the plans for a single market gave a new impetus.

The creation of the single market implies the elimination of all remaining obstacles to free movement. The Commission White Paper of June 1985 set out the physical and technical obstacles to be removed and the measures to be taken by the Community to this end. Most of these measures have now been taken.

a. Elimination of checks at internal borders (physical barriers)

- Customs formalities were simplified during the period 1985-1992 (single administrative document, common border posts, simplification of Community transit procedures) before being abolished on 1 January 1993.
- Border controls were abolished on 1 January 1993. Checks, particularly in connection with animal and plant health, may be carried out inside Member States, in the same way as such checks are made on domestic products moving within the States, i.e. without discrimination based on the origin of the goods or the mode of transport.

b. Elimination of technical barriers

After the removal of customs formalities and border controls, technical barriers are the chief remaining obstacle to complete freedom of movement. They are numerous, highly diverse and constantly changing. There are two main ways in which they can be eliminated:

- monitoring of compliance with the principle of mutual recognition of national rules by means of Article 28 (30) ECT;

- legislative harmonisation, facilitated not only the qualified majority requirement for most directives relating the completion of the single market [Article 95 (100a)] but by the adoption of a new approach to avoid an onerous total harmonisation. This approach, set out in the Commission White Paper of June 1985, has the following implications in practice:

§ Since the guiding principle is that of mutual recognition of national rules, Community harmonisation is only justified when these rules cannot be considered equivalent.

§ Harmonisation must be restricted to essential requirements of health, safety and environmental protection, rather than covering detailed technical specifications. For technical specifications, harmonisation directives refer to the industrial standards. However, such standards must not be national ones, because the latter's diversity obstructs manufacturers and impedes the freedom of movement, without leading to mutual recognition because they are not mandatory since they are not laid down by the national governments. Manufacturers will thus refer to European standards, laid down by European standardisation bodies. As with the other standards, they will not be mandatory but manufacturers who comply with them will automatically comply with the legal requirements.

Many directives have been adopted following the new approach. They include those dealing with simple pressure vessels, toys, building materials, machines, gas appliances and telecommunications terminal equipment.