Machine Translated by Google

CUSTOMS UNION, EU CUSTOMS TERRITORY,

COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

CUSTOMS UNION, CUSTOMS TERRITORY

OF THE EU, COMMUNITY CUSTOMS CODE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

CUSTOMS POLICY OF THE EUROPEAN UNION

The customs legislation currently in force is the result of a series of successive regulations
over time to allow for the full implementation of the current European economic union. We have moved on,
in fact, from a free trade area (characterized by the abolition of duties) to an economic union
which provides, in addition to the abolition of duties and quotas, also the adoption of a Tariff
common customs and the provision of free movement of goods, people, services and capital.

The current customs regulation is mainly governed by the Community Customs Code
(CDC) – Regulation (EEC) 2913/1992 – and by the Implementing Provisions of the Code (DAC) –
Regulation (EEC) 2454/1993. The DACs establish and specify certain provisions for the implementation of the
Code while the CDC establishes the scope, provisions and content of the law
Customs of the European Union. The latter also specifies the customs territory of the European Union.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

It is essential to precisely define the borders of the EU customs territory since trade
trade (between the European Union and third countries and vice versa) necessarily include
crossing customs borders, with the possible consequent provision of a tax levy. This
taxation allows for the fulfillment of both extra-tax purposes such as, for example, control of
border of goods that will be placed on the European market, both for tax purposes connected to the
Revenue from the General Budget of the European Union. Financing of expenditures entered into the EU budget.
it is guaranteed, in fact, by the revenues that are made available by the Member States through the payment
of contributions taken from the respective national budgets.

These EU budget revenues mainly come from:

1. from traditional own resources: customs duties and sugar levies. These consist of:
mainly from import duties on products from non-EU countries

2. from a percentage of the harmonised value added tax (VAT) tax base of
each EU country

3. from the complementary resource calculated on the basis of the prosperity of each Member State;
it is equal to 0.73% of the gross national income. This amount represents the two
thirds of the EU budget

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

THE CONCEPT OF DUTY

According to some authors, the term "duty" derives from the Latin "datio, dationis": to give," while others believe it derives
"from the decatitia, or tithe, which in ancient times was paid in kind on merchandise." Also known as gabella, since ancient
times, it refers to any indirect tax levied (by central or local authorities) on the transit, trade, or consumption of a certain
commodity in a given territory. Article 4 of the Customs Code offers useful distinctions and definitions. In particular, the
definitions of customs duties, import duties , and export duties are worth mentioning here.

“Customs debt” means the obligation of a person to pay the amount of import duties (customs debt on importation) or the
amount of export duties (customs debt on exportation) applicable under the Union provisions in force to a given good.

Import duties are customs duties and charges having equivalent effect due on the importation of goods, and import charges
established under the common agricultural policy or under specific arrangements applicable to certain goods resulting from
the processing of agricultural products.

Export duties are customs duties and charges having equivalent effect due on the export of goods and export charges
introduced under the common agricultural policy or under specific arrangements applicable to certain goods resulting from the
processing of agricultural products.

It is a shared opinion that duties fall within the general classification of indirect taxes on consumption since
are transferred economically to the consumer.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The doctrine is used to further classify duties into: - duties according

to the purpose (protective duty, fiscal duty) - duties according to the
calculation method (specific, ad valorem, mixed) - duties according to the destination of
the goods (import, export) - duties according to the relationships between States

“ Tariffs according to purpose” can be divided into protective duties and fiscal duties.

A protective duty is one applied to protect European market products from competition from similar goods from third-party
countries. Import customs duties are one of the tools used to regulate the flow of goods into the EU. If a high duty is imposed
on a specific product, it discourages its import, thereby preventing it from competing with similar products from the European
Union. The purpose of a protective duty is to safeguard European production: it simultaneously discourages imports of the
product from third-party countries and generates increased demand for the same product produced in the EU. By applying a
duty, consumers should not be encouraged to purchase products from third-party countries (because they are more expensive
or, in any case, less convenient).

Fiscal duties, on the other hand, aim to secure revenue for the EU coffers. They impact luxury or non-essential goods from third countries that are not produced
within the EU: for example, cocoa, tea, and coffee. It should be emphasized that, more often than not, duties serve both protective and fiscal purposes.
Furthermore, recent WTO guidelines, aimed at facilitating international trade, tend to facilitate trade by encouraging increasing trade liberalization.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

With reference to the calculation methods, the duty can be considered specific, ad valorem or mixed.

The specific duty is quantified on the basis of physical units of goods (weight, length, capacity, volume, number),
regardless, therefore, of the value of the goods themselves. Specific duties are more easily applicable (and also
(certainable with certainty) but, sometimes, they are not proportionate to the value of the goods to which they apply.

Consulting the Taric under the heading “salt for human consumption” (NC 2501 00 91) it is clear that
that these goods, if coming from third countries, are subject to a duty rate of 2.6
euro/1,000 kg. This means that, for every 1,000 kilograms of salt released for free circulation
in the customs territory of the EU, a duty of €2.6 is applied. A similar reasoning can be applied
be made for certain cheeses (for example, Roquefort – NC 0406 40 10 and Gorgonzola – NC
0406 40 50) subject to a duty of €140.9/100 kg net.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

[Link]

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The ad valorem duty , on the other hand, is levied proportionally to the value of the goods, thus affecting a
certain percentage rate calculated on the customs value of the goods.

For example, a duty applies to “Orchids, hyacinths, daffodils and tulips” (CN 0601 10 10).
of 9.6% while for the goods called “microwave ovens” (CN 8516 50 00) the duty is
equal to 5%

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The mixed duty indicates that for the same type of goods the simultaneous application of a duty is foreseen
ad valorem duty and a specific duty. The mixed duty is foreseen when the same good can have
very different unit costs: in this case the Taric provides that it is simultaneously kept in mind
taking into account the quantity of imported goods (specific duty) and their transaction value (duty
ad valorem).

For example, for the item “Meat of bovine animals, frozen – Beef
high quality” (NC 0202 10 00): the expected duty is 12.8% + 176.80 euro/100 kg.
This implies that the total duty to be paid is equal to a percentage calculated on the
value of the goods (12.8%) to which must be added a sum equal to €176.80 for every 100
kilograms of goods. The duty to be applied therefore depends on both the value of the goods
(ad valorem duty) or by its weight (specific duty).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Duties based on the destination of the goods are divided into import duties and export duties.

Import duties are those imposed on goods entering the EU customs territory from third countries. For the reasons outlined above, these
duties have a protectionist component. The customs tariff establishes the applicable duty rates.

Export duties affect EU goods intended for consumption in third countries. They are applied when the goods leave the EU's customs
borders. Their main effect is to affect the price of traded goods. Export duties are imposed primarily for fiscal reasons. They are also a tool
to limit exports of a particular type of goods, in order to preserve them for the internal market. They are rarely (if at all) enforced because
they tend to favor EU companies by encouraging their exports.

Export restrictions, however, are trade measures adopted by countries around the world, regardless of periods of crisis. It has been
observed that, in 2004, approximately one-third of WTO members imposed export duties, for example, in Indonesia on palm oil, in
Madagascar on vanilla, coffee, pepper, and cloves, in Pakistan on raw cotton, and in the EU on wheat.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Duties according to the relationships between States can be identified as:

- autonomous duties
- conventional duties
- differential duties
- anti-dumping duties
- anti-subsidy duties
- duties provided for by safeguard measures

Autonomous duties are , in reality, theoretical duties since the States are linked to each other by agreements of various kinds.
generally, which preclude them from being able to independently establish customs duties.
It should also be remembered that the "most favored nation" clause is included among the WTO members.
(MFN), «which provides that any duty reduction granted by one of the contracting States a
agreement to a third country should be automatically extended to the other countries of the agreement."

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Conventional tariffs are so called because they are adopted following the accession of countries to trade agreements.

Preferential tariffs ( GSP) are lower tariffs than those normally provided for by the Customs Tariff. They are intended to facilitate the
trade of goods from non-EU countries with which specific trade agreements have been stipulated or which belong to the group of
developing countries (e.g., ACP). This is the case, for example, with the Generalized Scheme of Preferences (GSP).

Differential duties ( also called countervailing duties) are the opposite of preferential duties. They are protective duties implemented by
applying a higher rate than the rate established by the Customs Tariff to goods imported from a country whose imports are intended to
be discouraged. This category includes retaliatory duties and reprisal duties.

Regarding retaliatory duties, we would like to cite the case of the dispute between the United States and Canada and the European Union regarding
beef hormones. In 1988, the EU banned the import of beef and beef products treated with certain growth hormones, both to protect consumers and
for food safety reasons. In 1996, the United States and Canada appealed the import ban to the WTO Dispute Settlement Body, thereby obtaining
authorization to impose trade sanctions on agricultural products from the EU. Since 1999, the United States and Canada have imposed retaliatory
duties on a wide range of European products, valued at USD 116.8 million and CAD 11.3 million, respectively, annually.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Anti-dumping duties are a form of differential duty that aims to target dumping. A product is
considered dumped when its export price to the EU is lower than a price
comparable to the like product, applied in the exporting country in the normal course of business
commercial. Regulation (EC) 1225/2009 transposed the anti-dumping rules into EU law.
contained in the Agreement on Implementation of Article VI of the GATT Agreement of 1994. The legislation
provides for rules regarding the calculation of dumping, the procedure for initiating and
subsequent conduct of investigations, the imposition of provisional and definitive measures, as well as the
duration and review of anti-dumping measures.

Anti-subsidy duties are duties imposed in order to protect the market for a particular product.
from the dangers arising from low-cost imports of goods (coming from non-EU countries) which
have been the subject of a subsidy. There is a subsidy if, on the one hand, a public
administration grants a financial contribution or if any form is put in place
of income or price support under Article XVI of the GATT 1994 Agreement and, on the other hand, if in
This gives you an advantage.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The countervailing duty is applied to exporting companies that have benefited from subsidies and to the country providing the
subsidies. The level of the anti-subsidy duty will be equal to the amount of the subsidy received by the companies (expressed as
a percentage of the export price). If a lower duty would eliminate all injury to the European industry, the amount of the duty will be
equal to the level at which the injury to the industry is eliminated (this rule is known as the "minimum duty").

The duties provided for by safeguard measures aim to protect, with reference to a specific product, the EU market from damage
to the production system resulting from significant alterations in trade flows (for example, sudden and significant import flows that
prevent EU producers from reorganizing production to counteract the impact). If the existence of a serious crisis or the threat of a
serious crisis caused by sudden alterations in trade flows is determined, the application of import duties or quotas is permitted
against a specific product with the aim of exceptionally and temporarily protecting EU production. Anti-dumping duties, anti-subsidy
duties, and safeguard measures (import duties or quotas) are considered trade defense measures.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

HARMONIZED EXCISE DUTIES

States have the power to impose taxes on citizens, regardless of their trade relationship, to raise revenue that will be used for any
possible spending needs. The imposition of taxes on certain consumer products falls within this power of states and plays a crucial role
both as a consumer policy tool and in terms of the resulting revenue. With this type of tax, the state pursues the objective, on the one
hand, of limiting the consumption of luxury goods or those harmful to health if consumed in excessive quantities , and, on the
other, of raising significant revenue.

Since the mid-19th century, the Italian tax system has included and implemented manufacturing and excise duties , along with
corresponding border and excise surcharges. Manufacturing duties were applied to certain industrial products at the end of their
production cycle, while excise duties were based on the actual consumption of the goods by buyers. In both cases, the burden of the tax
was borne by the final consumer, and the amount of the tax was often greater than the production cost of the goods themselves.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

In Italy, until December 31, 1992, the following goods were subject to manufacturing tax:

- mineral oils (petroleum products)

- spirits
- sugar and similar sugary substances
- seed oils

- margarine
- ignition devices
- lighters and matches
- firearms and ammunition
- beer

On 1 January 1993, with the introduction of the European Single Market, the harmonisation of this market became necessary.
taxation. The European legislator was faced with different taxes (depending on the type of product)
burdened and by rate) in the different Member States. In particular, in the Northern European States a
rather high taxation on alcoholic products. In Southern European countries, however, the tax burden was low (if
not even zero) on wine and alcoholic beverages, while it was higher on other products such as, for example,
tobacco. Directive 92/12/EEC therefore limited the application of the excise duty to certain categories of goods (oils
minerals, alcohol and alcoholic beverages, manufactured tobacco) providing for the harmonisation of the application of this
taxation in the Member States. Depending on the type of product, minimum excise duties have been established (which
they can even be equal to zero) and the individual Member State has been left free, in compliance with these amounts
minimum, to predict the amount of excise duty that weighs on its territory.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The general provisions on harmonized excise duties are based on the principle that these taxes are
levied in the country where the products subject to them are consumed. They establish the methods,
procedures, and controls to be applied to the production, storage, and circulation of these products,
to ensure the correct collection of the tax and prevent fraud. The tax is payable upon production or
importation of the goods. The tax becomes due upon release for consumption of the products
(unless they are subject to a tax-suspension regime).

These excise duties are referred to as "harmonized excise duties" because they are required by EU
legislation. These taxes are levied identically in all member states. However, the rates must only
comply with minimum rates, leaving individual member states free to impose higher rates.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Minimum = 0 EUR per hectolitre (100 L) of product

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Minimum = 550 EUR per hectolitre (100 L) of pure alcohol

Ethyl alcohol contains 96% alcohol and 4% water

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

NON-HARMONIZED EXCISE DUTIES

Member States have retained the right to maintain or introduce non-harmonised excise duties on
products other than those indicated in Directive 92/12/EEC (now Directive 2008/118/EC) provided
that such impositions do not give rise to formalities connected to border crossing, limiting the free movement
Movement of goods. In Italy, the products subject to indirect or excise taxes are the following:

- lubricating oils intended for uses other than fuels

- crude mineral oils
- aromatic extracts
- mixtures of synthetic alkylbenzenes
- synthetic polyolefin polymers
- petroleum bitumen
- matches

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

CUSTOMS POLICY OF THE EUROPEAN UNION

The Customs Union (Articles 28-29 of the Treaty on the Functioning of the European Union (TFEU)) is a fundamental foundation of the
European Union (EU) and its single market, fueled by its 28 member states. For the single market to function properly, EU countries
have agreed on standardized rules that are applied uniformly by all 27 EU customs administrations. There are no customs duties at
the internal borders of the EU Customs Union. All goods circulate freely within the Customs Union area, whether manufactured in the
EU or imported from abroad.

A new EU Customs Code was adopted in 2013 , simplifying customs rules and procedures and making trade more efficient. Once
implemented in May 2016, it significantly simplified and streamlined EU customs procedures. The EU is also committed to improving
customs risk management and supply chain security, as well as developing procedures to improve customs' efficiency in enforcing
health, safety, and environmental rules. Its latest version was updated in 2024.

The free movement of goods is ensured through the elimination of customs duties and quantitative restrictions and the prohibition of
measures having equivalent effect. The principles of mutual recognition, the elimination of physical and technical barriers, and the
promotion of standardization are further elements introduced to advance the completion of the internal market. The adoption of the New
Legislative Framework (NLF) in 2008 strengthened the free movement of goods, the EU market surveillance system, and the CE marking.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

CUSTOMS POLICY OF THE EUROPEAN UNION

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

OBJECTIVES OF THE FREE MOVEMENT OF GOODS

The right to free movement of goods originating in Member States and of goods
coming from third countries which are in free circulation in the Member States is one of the
fundamental principles of the Treaty (Article 28 TFEU). At an initial stage, the free
movement of goods had been conceived within the framework of a customs union between the States
members with the abolition of customs duties, quantitative restrictions on trade and
all other measures having equivalent effect, and with the establishment of a customs tariff
common in the Community's relations with third countries. Subsequently, emphasis was placed
on the elimination of all remaining obstacles to the free movement of goods
in order to achieve the internal market.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

RESULTS OF FREE MOVEMENT

The abolition of customs duties and quantitative restrictions (quotas) between Member States was
completed by 1 July 1968. On the other hand, the complementary objectives, namely the prohibition of measures
of equivalent effect and the harmonisation of relevant national legislation, have not been achieved
within this period. These objectives have become fundamental in the ongoing effort to achieve free
movement of goods.

A. Prohibition of taxes having an effect equivalent to customs duties

Articles 28, paragraph 1, and 30 of the TFEU. In the absence of a definition of the above-mentioned concept in the
treaty, the jurisprudence had to define one. The Court of Justice of the European Union considers
tax having equivalent effect «any tax imposed, regardless of its name and its
nature or form which affects especially a good imported from a Member State other than the
corresponding national product, produces the result of altering its price and thus affecting the free
movement of goods in the same way as a customs duty."

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

B. Prohibition of measures having equivalent effect to quantitative restrictions: Articles 34 and 35 TFEU.
In its Dassonville judgment, the Court of Justice considered as a measure equivalent to quantitative
restrictions "all trading rules enacted by Member States which are capable of hindering, directly or indirectly,
actually or potentially, intra-Community trade" (case 8/74 of 11 July 1974 and paragraphs 63 to 67 of case
C-320/03 of 15 November 2015).
The Court's reasoning was further developed in the case law relating to the Cassis de Dijon case (Case
120/78) by establishing the principle that any product lawfully manufactured and marketed in a Member
State, in accordance with the regulations and fair and traditional manufacturing processes of that country,
must be admitted to the market of every other Member State.

This was the basic reasoning behind the debate on identifying the principle of mutual recognition, which
operates in the absence of harmonization.
Consequently, Member States, even in the absence of European harmonization measures (secondary
European law), are required to allow goods legally produced and marketed in other Member States to be
distributed and marketed on their markets.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

C. Exceptions to the prohibition on measures having equivalent effect to quantitative restrictions

Article 36 TFEU allows Member States to adopt measures having equivalent effect to quantitative restrictions when they are justified by a
general interest of a non-economic nature (for example on grounds of public morality, public policy or public security).

Since these are exceptions to a general principle, these derogations require strict interpretation, and national measures must not constitute
a means of arbitrary discrimination or a disguised restriction on trade between Member States. Furthermore, the measures must be directly
related to the public interest to be protected and must not exceed the necessary level (principle of proportionality).

Furthermore, the Court of Justice has recognized in its case law (Cassis de Dijon) that Member States may derogate from the prohibition of
measures having equivalent effect on the basis of mandatory requirements (relating, among other things, to the effectiveness of fiscal
controls, the protection of public health, the fairness of commercial transactions and the protection of consumers).
Member States are required to notify any national derogation measures to the Commission.

To facilitate the monitoring of such national derogations, mutual information procedures and a monitoring mechanism have been introduced
(as established by Articles 114 and 117 TFEU, Decision No. 3052/95/EC of the European Parliament and of the Council, and Council
Regulation (EC) No. 2679/98). This was further formalized in Regulation (EC) No. 764/2008 on mutual recognition, adopted in 2008 under
the so-called New Legislative Framework (NLF).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

D. Harmonization of national provisions

The adoption of harmonisation laws has made it possible to eliminate obstacles (for example by making national provisions
inapplicable) and to establish common rules aimed at ensuring both the free movement of goods and products and compliance
with the other objectives of the EC Treaty, such as the protection of the environment and consumers or the
competition.

Harmonisation was made easier not only by the use of qualified majority voting for most directives concerning the completion of
the single market (Article 95 of the EC Treaty as amended by the Maastricht Treaty), but also by the adoption of a new approach,
proposed in the Commission's White Paper (1985), which was intended to avoid burdensome and detailed harmonisation.

In the new approach based on the Council Resolution of 7 May 1985 and confirmed in the Council Resolution of 21 December
1989 and Council Decision 93/465/EEC, the guiding principle is mutual recognition of national standards. Harmonization must be
limited to essential requirements and is justified when national standards cannot be considered equivalent and create restrictions.

The directives adopted under this new approach have the dual purpose of ensuring the free movement of goods through the
technical harmonisation of entire sectors and of ensuring a high level of protection of the public interest objectives referred to in
Article 114(3) TFEU (e.g. toys, building materials, machinery, gas appliances and telecommunications terminal equipment).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

E. The completion of the internal market

The single market has made it necessary to eliminate all obstacles still existing
existing obstacles to free movement.

The Commission's White Paper (1985) defined the physical and technical obstacles
to be eliminated and the measures to be adopted by the Community to this end.

These measures have now largely been adopted. However, the single market
still requires substantial reforms to meet the challenges of progress
technological.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

OBJECTIVES OF COMMUNITY CUSTOMS POLICY

- Promote world trade

- Promote trade reciprocity
- Increase the attractiveness of the EU as an area for the establishment of industrial and commercial activities and
contribute to the creation of new jobs
- Promote development in other parts of the world
- Helping candidates prepare for their future role
- Protect citizens and businesses in a clear, uniform and simple manner, with the greatest possible efficiency
Community enterprises in all sectors involving imports or exports
- Safeguard the internal market, ensuring that it brings maximum benefit to all
- Facilitate the implementation of a practical system for collecting revenue, customs duties, VAT
and consumption taxes
- Collect essential statistical data on trade

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

CUSTOMS DESTINATIONS

To enter the EU customs territory, non-EU goods must comply with the provisions
from European customs provisions. Particular importance is given to aspects relating to tariffs ,
value and origin. In this regard, it is important that an operator attentive to customs
planning should ask at least the basic questions listed below.

Can the goods be broken down into multiple parts or are the components part of a kit to be assembled?

Care must be taken not to violate the rules for interpreting the tariff by declaring the
nomenclature code for the parts when the code for the entire product should have been declared. In this
case, if the sum of the duties applicable to the individual parts is lower than the duty that would be
imposed on the undisassembled goods, the "savings" on duties would be undue and would result in
the customs authorities recovering the unpaid duties, plus the penalties provided by law.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Have you established an agreement with the country of origin of the goods you wish to import?

The intensification of international trade has allowed the signing of numerous trade agreements
(the list is very long: it includes for example Switzerland, Iceland, Norway, Türkiye, African countries
North America like Egypt, South American countries like Mexico, Chile, and many others). A separate sector
It consists of the Generalized Tariff Preferences, granted unilaterally by the European Union to
Developing countries (among them: China, Colombia, Indonesia, India, Russia, Thailand, to name but a few)
some).

If you wish to use a preferential certificate of origin upon import, under any of these agreements, have the rules regarding
direct transport of the goods been respected?

Have the rules regarding the customs valuation of goods been carefully evaluated?

Attention was paid, among other things, to including in the customs value the elements prescribed by the
customs regulations or to exclude those elements that should not be included?

Are the goods you wish to import compliant with the regulations protecting Made in Italy products? Are there any restrictions?
or import restriction procedures?

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Last but not least, were the goods classified correctly?

The customs tariff, structured into 21 sections, divided into up to 99 chapters, contains over 16,000 items.
It is therefore necessary to carry out a correct classification of the goods that you wish to import since
minimal variations in the characteristics of the goods may lead to significant differences with
reference to customs duties. Consider the broad range of products covered by the first 24
chapters of the customs tariff, subject in large number to specific duties of high amount. Consider
still to footwear, the duty of which can vary from 8% to approximately 17% in relation to the material from which it is made
constituted the upper. Or, finally, think of the motor vehicles for the transport of goods, whose duty can vary
from 10% to 22% depending on the power of the engine they are equipped with.

The determination of a correct customs classification is very important to avoid both a

different customs treatment than expected, both (and above all) a procedure
sanction in the presence of a manifest and significant discrepancy with the customs findings at the time
of customs clearance.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Having answered at least the above questions, it should be noted that the customs will apply in full
customs duties (duties and other taxes) on imported goods not at the time of their material
entry into the European customs territory but only when they are released for consumption (imported
definitively) in the customs territory of the Union. Only then will the goods be taxed
of taxation.

From this statement it is understood that, in addition to the definitive importation, there are other
customs destinations. Therefore, the expression "customs destination" defines
«that formal act with which the person entitled to the goods (owner, authorized representative,
customs declarant, customs forwarder) expresses the will to»:

- bind the goods to a customs regime

- introduce the goods into a free zone or free warehouse
- re-export the goods outside the EU customs territory
- destroy the goods under customs control
- abandon the goods to the Treasury

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

SCOPE OF APPLICATION

The customs territory of the Community does not coincide exactly with the sum of the territories that
are part of the geophysical territory of the Community. In fact, some areas falling within the different territories
national territories are excluded from the Community customs territory, while other territories that do not
part of the geophysical territory of the Community are considered to all intents and purposes within the
Community customs territory.

In particular, it is possible to distinguish the Community Customs Territory, which is made up of the
geophysical territory of the 27 countries adhering to the European Union, of which the waters are part
internal territorial and maritime areas, and the airspace above them. This includes:

- Austrian territories of Jungholz and Mittelberg

- Principality of Monaco
- Republic of San Marino
- French Overseas Departments (DOM - Martinique, Guadeloupe, French Guiana and Reunion)
- Canary Islands (Spain)

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The territories forming part of the geophysical territory of the Community but not falling within
the Community customs territory are:

1. Faroe Islands (Denmark)

2. Greenland
3. Helgoland Island (Germany)
4. Territory of Busingen (Germany)
5. Ceuta and Melilla (Spain)
6. French Overseas Territories (TOM - French Polynesia, Wallis and Futuna, New Caledonia, French
Antarctic and Southern Islands) and the Territorial Collectivities of Mayotte, St. Pierre and Miquelon
7. Livigno

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Campione d'Italia joins the European customs territory on March 28, 2019.

Effective January 1, 2019, the municipality of Campione d'Italia and the Italian waters of Lake Lugano are officially
part of the customs territory of the European Union, although they remain exempt from the territorial application of EU
VAT. This change was introduced by Regulation No. 474 of March 19, 2019, published in the Official Journal of the
European Union on March 25, 2019, with Directive 2019/475/EU. This new status as European Union territory for
customs purposes will exclude the possibility that, as of January 1, 2020, the shipment of goods from Italy to the
municipality of Campione d'Italia and the Italian waters of Lake Lugano constitutes an export, with all the resulting
obligations for national operators. Although Campione d'Italia is located within the European Union for customs
purposes, for VAT purposes it will remain outside the EU and therefore VAT exemption should be guaranteed even if
the export regime ceases.

Problems may arise in the application of Article 8, paragraph 1, letter a) of Presidential Decree 633/1972 regarding proof of goods leaving the Union, as
exportation can no longer be proven by a customs document or export declaration, but rather by the accompanying document or transport document
pursuant to Article 21, paragraph 4, letter a) of Presidential Decree 633/1972. From a customs perspective, domestic goods crossing Swiss territory no
longer need to be included in an export declaration but must be placed under the internal transit regime, which allows the transfer of Union goods from
one point in the EU to another, crossing a third country, without changing their customs status (Article 227 of the Union Customs Code). Finally, it should
be noted that Directive 2019/475/EU provides, starting in 2020, the application of the general excise duty regime to the municipality of Campione d'Italia
and the national waters of Lake Lugano.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE