Legal Eye: Rocking the boat
"Quantitative restrictions on exports (and imports) and all measures having an equivalent effect shall be prohibited between Member States."
Article 29, Treaty Establishing the European Union
Poland's boating industry, in particular the manufacturer of small- and medium-sized boats, is experiencing a growth in sales to other Member States as a result of EU accession. In addition to the quality and price of Polish manufactured boats being a prime reason behind this increase in sales, the elimination of most (if not all) customs duties and quantitative restrictions has had a positive impact on the growth in sales throughout the EU.
Competitive thinking
Similar to other Polish-based manufacturing industries, boat manufacturers have been able to take advantage of the elimination of internal tariffs and customs duties throughout the EU, thereby being able to compete on an equal basis with local boat manufacturers, in particular French and Dutch manufacturers.
Specifically, article 25 of the Treaty Establising the European Union states that the imposition of "customs duties on imports and exports and other charges having equivalent effect shall be prohibited between Member States." Whereas prior to Poland's accession to the European Union boats exported for sale to the then 15 Member States were subject to the imposition of varying tariffs and customs duties designed to protect local manufacturers, as of EU accession such surcharges are no longer permitted.
Dreaded derogations
As with most regulations, however, exceptions exist. Quantitative restrictions may be imposed on goods that pose a danger to "public morality, public policy or public security" as provided for by article 30 of the Treaty on European Union. Presumably, the sale of personal submarines would fall into this exception (I'm not aware of a thriving business in personal submarines).
Several Member States have also opted to impose various derogation periods on the sale of Polish goods within their respective territory, but for the most part these restrictions are limited to pharmaceutical and agricultural products that do not yet comply with EU standards.
Local law
Boats sold in other Member States must comply with local safety regulations, which vary among the Member States. Again, article 30 of the Treaty of the European Union permits a Member State to prohibit the sale of any manufactured good, including boats, that poses a threat to health or human life. Such a determination must be based on valid concerns, but at the same time, is to a large degree at the discretion of the Member States.
However, article 30 the Treaty Establishing the European Union attempts to limit the use of such prohibitions, declaring: "Such prohibitions or restrictions shall not be used in such a way as to constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States."
Now let's turn closer to home. For those of you who enjoy sailing in the Mazury lakes, please remember to obey all boating regulations. In particular, when overtaking a smaller craft, such as me in my little kayak, please cross from behind. I'm tired of being swamped.
Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki & Partners
Article 29, Treaty Establishing the European Union
Poland's boating industry, in particular the manufacturer of small- and medium-sized boats, is experiencing a growth in sales to other Member States as a result of EU accession. In addition to the quality and price of Polish manufactured boats being a prime reason behind this increase in sales, the elimination of most (if not all) customs duties and quantitative restrictions has had a positive impact on the growth in sales throughout the EU.
Competitive thinking
Similar to other Polish-based manufacturing industries, boat manufacturers have been able to take advantage of the elimination of internal tariffs and customs duties throughout the EU, thereby being able to compete on an equal basis with local boat manufacturers, in particular French and Dutch manufacturers.
Specifically, article 25 of the Treaty Establising the European Union states that the imposition of "customs duties on imports and exports and other charges having equivalent effect shall be prohibited between Member States." Whereas prior to Poland's accession to the European Union boats exported for sale to the then 15 Member States were subject to the imposition of varying tariffs and customs duties designed to protect local manufacturers, as of EU accession such surcharges are no longer permitted.
Dreaded derogations
As with most regulations, however, exceptions exist. Quantitative restrictions may be imposed on goods that pose a danger to "public morality, public policy or public security" as provided for by article 30 of the Treaty on European Union. Presumably, the sale of personal submarines would fall into this exception (I'm not aware of a thriving business in personal submarines).
Several Member States have also opted to impose various derogation periods on the sale of Polish goods within their respective territory, but for the most part these restrictions are limited to pharmaceutical and agricultural products that do not yet comply with EU standards.
Local law
Boats sold in other Member States must comply with local safety regulations, which vary among the Member States. Again, article 30 of the Treaty of the European Union permits a Member State to prohibit the sale of any manufactured good, including boats, that poses a threat to health or human life. Such a determination must be based on valid concerns, but at the same time, is to a large degree at the discretion of the Member States.
However, article 30 the Treaty Establishing the European Union attempts to limit the use of such prohibitions, declaring: "Such prohibitions or restrictions shall not be used in such a way as to constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States."
Now let's turn closer to home. For those of you who enjoy sailing in the Mazury lakes, please remember to obey all boating regulations. In particular, when overtaking a smaller craft, such as me in my little kayak, please cross from behind. I'm tired of being swamped.
Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki & Partners
