In marketing , a product is an object, or system, or service made available for consumer use as of the consumer demand; it is anything that can be offered to a domestic or an international market to satisfy the desire or need of a customer . In retailing , products are often referred to as merchandise , and in manufacturing , products are bought as raw materials and then sold as finished goods . A service is also regarded as a type of product.
132-540: The presence of the logo [REDACTED] (from French, "conformité européenne" meaning "European conformity") on commercial products indicates that the manufacturer or importer affirms the goods' conformity with European health, safety, and environmental protection standards . It is not a quality indicator or a certification mark . The CE marking is required for goods sold in the European Economic Area (EEA); goods sold elsewhere may also carry
264-422: A European Court of Justice ruling in 1999 stated that fishing rights (or fishing permits) are not goods, but a provision of service. The ruling further explains that, both capital and service can be valued in money and are capable of forming the subject of commercial transactions, but they are not goods. Council Regulation (EC) 2679/98 of 7 December 1998, on the functioning of the internal market in relation to
396-529: A clearing system , TARGET , for large euro transactions. The final stage of completely free movement of capital was thought to require a single currency and monetary policy , eliminating the transaction costs and fluctuations of currency exchange. Following a Report of the Delors Commission in 1988, the Treaty of Maastricht made economic and monetary union an objective, first by completing
528-400: A model , model variant , or model number (often abbreviated as MN , M/N or model no. , and sometimes as M- or Mk ). For example, Dyson Ltd , a manufacturer of appliances (mainly vacuum cleaners), requires customers to identify their model in the support section of the website. Brand and model can be used together to identify products in the market. The model number is not necessarily
660-427: A "Classification of Products by Activity" among other product classifications. The United Nations also classifies products for international economic activity reporting. The Aspinwall Classification System classifies and rates products based on five variables: The National Institute of Governmental Purchasing (NIGP) developed a commodity and services classification system for use by state and local governments,
792-699: A "deterrent effect on portfolio investments" and reducing "the attractiveness of an investment". This suggested the Court's preference that a government, if it sought public ownership or control, should nationalise in full the desired proportion of a company in line with TFEU article 345. Capital within the EU may be transferred in any amount from one country to another (except that Greece currently has capital controls restricting outflows, and Cyprus imposed capital controls between 2013 and April 2015). All intra-EU transfers in euro are considered as domestic payments and bear
924-616: A "safety mark" for consumers. CE marking is mandatory for certain product groups intended for sale within the European Union, the European Free Trade Association (EFTA), and Turkey. The manufacturers of products made within these countries, and the importers of goods made in other countries, affirm that CE-marked goods conform to EU standards. Following Brexit in 2020, the UK government proposed to replace
1056-531: A 2019 estimate, because of the single market the GDP of member countries is on average 9 percent higher than it would be if tariff and non-tariff restrictions were in place. One of the core objectives of the European Economic Community (EEC) upon its establishment in 1957 was the development of a common market offering free movement of goods, service, people and capital. Free movement of goods
1188-608: A Belgian law requiring all margarine to be in cube shaped packages infringed article 34, and was not justified by the pursuit of consumer protection. The argument that Belgians would believe it was butter if it was not cube shaped was disproportionate: it would "considerably exceed the requirements of the object in view" and labelling would protect consumers "just as effectively". In a 2003 case, Commission v Italy Italian law required that cocoa products that included other vegetable fats could not be labelled as "chocolate". It had to be "chocolate substitute". All Italian chocolate
1320-475: A Dutch lawyer moved to Belgium while advising a client in a social security case, and was told he could not continue because Dutch law said only people established in the Netherlands could give legal advice. The Court of Justice held that the freedom to provide services applied, it was directly effective, and the rule was probably unjustified: having an address in the member state would be enough to pursue
1452-408: A Sears item number and a manufacturer's model number. Sears uses the departments and product groupings with the intention of helping customers browse products by function or brand within a traditional department-store structure. A product line is "a group of products that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through
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#17327729894441584-768: A company from shifting its central administration to Italy while it still operated and was incorporated in Hungary. Thus, the court draws a distinction between the right of establishment for foreign companies (where restrictions must be justified), and the right of the state to determine conditions for companies incorporated in its territory, although it is not entirely clear why. The "freedom to provide services" under TFEU article 56 applies to people who provide services "for remuneration", especially in commercial or professional activity. For example, in Van Binsbergen v Bestuur van de Bedrijfvereniging voor de Metaalnijverheid
1716-522: A company in the UK could admittedly provide services in Denmark without being established there, and there were less restrictive means of achieving the aim of creditor protection. This approach was criticised as potentially opening the EU to unjustified regulatory competition , and a race to the bottom in standards, like in the US where the state of Delaware attracts most companies and is often argued to have
1848-582: A company moving its seat of business, without infringing TFEU article 49. This meant the Daily Mail newspaper's parent company could not avoid tax by shifting its residence to the Netherlands without first settling its tax bills in the UK. The UK did not need to justify its action, as rules on company seats were not yet harmonised. By contrast, in Centros Ltd v Erhversus-og Selkabssyrelsen
1980-631: A disagreement between the science community and the Dutch government whether niacin in cheese posed a public risk. As public risk falls under article 36, meaning that a quantitative restriction can be imposed, it justified the import restriction against the Eyssen cheese company by the Dutch government. More generally, it has been increasingly acknowledged that fundamental human rights should take priority over all trade rules. So, in Schmidberger v Austria
2112-463: A high level of protection and improvement of the quality of the environment, with also promoting scientific and technological advance. Even as the Lisbon Treaty came into force in 2009, however, some areas pertaining to parts of the four freedoms (especially in the field of services) had not yet been completely opened. Those, along with further work on the economic and monetary union, would see
2244-675: A lawyer from Stuttgart , who had set up chambers in Milan and was censured by the Milan Bar Council for not having registered, should claim for breach of establishment freedom, rather than service freedom. However, the requirements to be registered in Milan before being able to practice would be allowed if they were non-discriminatory, "justified by imperative requirements in the general interest" and proportionately applied. All people or entities that engage in economic activity, particularly
2376-605: A lawyer to the Belgian bar because he lacked Belgian nationality was unjustified. TFEU article 49 says states are exempt from infringing others' freedom of establishment when they exercise "official authority", but this did an advocate's work (as opposed to a court's) was not official. By contrast in Commission v Italy the Court of Justice held that a requirement for lawyers in Italy to comply with maximum tariffs unless there
2508-452: A mandatory requirement. Harmonisation would only be used to overcome barriers created by trade restrictions which survived the Cassis mandatory requirements test, and to ensure essential standards where there was a risk of a race to the bottom . Thus, harmonisation was largely used to ensure basic health and safety standards were met. By 1992 about 90% of the issues had been resolved and in
2640-410: A minimal risk for their use, and this is clearly foreseen in the relevant directive and regulation according to the product "category". In order to certify, the manufacturer must do several things: The level of risk is defined by the "category" of each equipment. The higher the category, the higher the risk. After defining the category, the manufacturer, in order to obtain certification, shall then apply
2772-578: A more circular economy . Product information management (PIM) is the process of managing all the information required to market and sell products through distribution channels . This product data is created by an internal organization to support a multichannel marketing strategy. A central hub of product data can be used to distribute information to sales channels such as e-commerce websites, print catalogues, marketplaces such as Amazon and Google Shopping , social media platforms like Instagram and electronic data feeds to trading partners. Moreover,
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#17327729894442904-570: A notified body, is of great importance throughout the entire CE-marking process, from design verification, and set up of the technical file to the EU declaration of conformity. A guide to the implementation of directives and regulations based on the New Approach and the Global Approach (the "Blue Guide") was first published by the European Union in 2000. Updated versions were published on 28 February 2014 and 26 July 2016. Depending on
3036-509: A presumption that "selling arrangements" would be presumed to not fall into TFEU article 34, if they applied equally to all sellers, and affected them in the same manner in fact. In Keck and Mithouard two importers claimed that their prosecution under a French competition law , which prevented them from selling Picon beer under wholesale price, was unlawful. The aim of the law was to prevent cut throat competition , not to hinder trade. The Court of Justice held, as "in law and in fact" it
3168-458: A product as safe or conformant. The EU requirements may include safety, health, and environmental protection. If stipulated in any EU product legislation, assessment by a Notified Body or manufacture according to a certified production quality system may be required. Where relevant, the [REDACTED] mark is followed by the registration number of the notified body involved in conformity assessment. Not all products need CE marking to be traded in
3300-487: A retail location where it is purchased by consumers. In the EU, under the renewed Sustainable Product Policy Initiative , the inclusion of a Digital Product Passport has been proposed. A material passport is a document consisting of all the materials that are included in a product or construction. It consists of a set of data describing defined characteristics of materials in products, useful for recovery, recycling , re-use and various evaluations. They may contribute to
3432-457: A simple exercise of reading the scope of each norm to establish which apply to the product (Such as the "Low Voltage Directive," 2014/35/EU). If the product does not fall within the scope of any of the sectoral norm, then the product does not need to bear CE marking (and, indeed, must not bear CE marking). Stage 2: Identify the applicable requirements of the norm(s) Each norm has slightly different methods of demonstrating conformity depending on
3564-683: A specific unit of a product is often (and in some contexts must be) identified by a serial number , which is necessary to distinguish products with the same product definition. In the case of automotive products, it is called the vehicle identification number (VIN), an internationally standardised format. Product information, beyond currency price information, can include: Many of these types of product information are regulated to some degree, such as to some degree prohibiting false or misleading product information or requiring sellers or manufacturers to specify various information such as ingredients of food-, pharmaceutical- and hygiene-products. There also
3696-400: Is standardization . Marketing to entice the shopper is often prioritized over accurate, high-quality or extensive and relevant information. Product information is often a key element in the buyer decision process . Relevant factors include trust in the accuracy of the information and social normative pressure. Easily accessible and up-to-date medicinal product information can contribute to
3828-571: Is a customs duty if it is proportionate to the value of the goods; if it is proportionate to the quantity, it is a charge having equivalent effect to a customs duty. There are three exceptions to the prohibition on charges imposed when goods cross a border, listed in Case 18/87 Commission v Germany. A charge is not a customs duty or charge having equivalent effect if: Article 110 of the TFEU provides: No Member State shall impose, directly or indirectly, on
3960-425: Is about electrical safety; EMC or Electromagnetic Compatibility means the device will work as intended without interfering with, or being affected by, the use or function of any other device.) The [REDACTED] mark indicates compliance with as many norms ( directives and regulations ) as apply at the time of the declaration of compliance (see below). In the case of electrical products, several later norms such as
4092-599: Is also true in the context of the UK's National Health Service . Aside from public services, another sensitive field of services are those classified as illegal. Josemans v Burgemeester van Maastricht held that the Netherlands' regulation of cannabis consumption, including the prohibitions by some municipalities on tourists (but not Dutch nationals) going to coffee shops , fell outside article 56 altogether. The Court of Justice reasoned that narcotic drugs were controlled in all member states, and so this differed from other cases where prostitution or other quasi-legal activity
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4224-534: Is an actual physical object that can be perceived by touch such as a building, vehicle, gadget, or clothing. An intangible product is a product that can only be perceived indirectly such as an insurance policy. These services can be broadly classified under intangible products, which can be durable or nondurable . In its online product catalog, retailer Sears, Roebuck and Company divides its products into "departments", then presents products to potential shoppers according to (1) function or (2) brand. Each product has
4356-407: Is hoped to avoid a regulatory " race to the bottom ", while allowing consumers access to goods from around the continent. Free movement of capital was traditionally seen as the fourth freedom, after goods, workers and persons, services and establishment. The original Treaty of Rome required that restrictions on free capital flows only be removed to the extent necessary for the common market. From
4488-419: Is imposed unilaterally on domestic or foreign goods by reason of the fact that they cross a frontier, and which is not a customs duty in the strict sense, constitutes a charge having an equivalent effect... even if it is not imposed for the benefit of the state, is not discriminatory or protective in effect and if the product on which the charge is imposed is not in competition with any domestic product. A charge
4620-584: Is now found on many products from these countries. Japan has its own marking known as the Conformity Mark. Switzerland and Turkey (which are not members of the EEA) also require products to bear CE marking as an affirmation of conformity. When the manufacturer of a machine puts the CE marking, it engages itself and guarantees, that it makes all the tests, assessments and evaluation on the product to conform to all
4752-492: Is satisfied that their product conforms to the applicable norms, an EU declaration of conformity must be completed or, for partly completed machinery under the Machinery Directive, an ECU declaration of incorporation. The EU declaration of conformity must include: manufacturer's details (name and address, etc.); essential characteristics the product complies; any European standards and performance data; if relevant
4884-463: Is set out in various EU Directives and Regulations . The underlying principles are explained in the Commission 's "Blue Guide". Responsibility for CE marking lies with whoever puts the product on the market in the EU, i.e. an EU-based manufacturer, the importer or distributor of a product made outside the EU, or an EU-based office of a non-EU manufacturer. The manufacturer of a product affixes
5016-537: Is the adoption of harmonising legislation under Article 114 of the Treaty on the Functioning of the European Union (TFEU). The commission also relied upon the European Court of Justice 's Cassis de Dijon jurisprudence, under which member states were obliged to recognise goods which had been legally produced in another member state, unless the member state could justify the restriction by reference to
5148-576: Is to identify whether the product needs to bear CE marking or not. Not all products are required to bear CE marking, only the products that fall within the scope of at least one of the sectoral norms (directives and regulations) requiring CE marking. There are more than 20 sectoral product norms requiring CE marking covering, but not limited to, products such as electrical equipment, machines, medical devices, toys, pressure equipment, PPE, wireless devices and construction products. Identifying which norm(s) may be applicable, as there may be more than one, involves
5280-738: The [REDACTED] mark with the UKCA marking , with a deadline for replacement of 31 December 2024 in some product categories. For other product categories CE marking acceptance in Great Britain has been indefinitely extended. As Northern Ireland (a region of the UK) remained aligned to the European Single Market under the Northern Ireland Protocol , [REDACTED] marking remains mandatory for products placed on
5412-535: The Capital Movement Directive 1988 , Annex I, 13 categories of capital which must move free are covered. In Baars v Inspecteur der Belastingen Particulieren the Court of Justice held that for investments in companies, the capital rules, rather than freedom of establishment rules, were engaged if an investment did not enable a "definite influence" through shareholder voting or other rights by
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5544-474: The Court of Justice held that Austria did not infringe article 34 by failing to ban a protest that blocked heavy traffic passing over the A13, Brenner Autobahn , en route to Italy. Although many companies, including Mr Schmidberger's German undertaking, were prevented from trading, the Court of Justice reasoned that freedom of association is one of the "fundamental pillars of a democratic society", against which
5676-531: The Court of Justice held that this rule meant all "trading rules" that are "enacted by Member States" which could hinder trade "directly or indirectly, actually or potentially" would be caught by article 34. This meant that a Belgian law requiring Scotch whisky imports to have a certificate of origin was unlikely to be lawful. It discriminated against parallel importers like Mr Dassonville, who could not get certificates from authorities in France, where they bought
5808-450: The Court of Justice reviewed Swedish bans on advertising to children under age 12, and misleading commercials for skin care products. While the bans have remained (justifiable under article 36 or as a mandatory requirement) the Court emphasised that complete marketing bans could be disproportionate if advertising were "the only effective form of promotion enabling [a trader] to penetrate" the market. In Konsumentombudsmannen v Gourmet AB
5940-527: The European Union is achieved by a customs union and the principle of non-discrimination. The EU manages imports from non-member states, duties between member states are prohibited, and imports circulate freely. In addition under the Treaty on the Functioning of the European Union article 34, 'Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States'. In Procureur du Roi v Dassonville
6072-606: The Eurozone crisis . According to TFEU articles 119 and 127, the objective of the European Central Bank and other central banks ought to be price stability . This has been criticised for apparently being superior to the objective of full employment in the Treaty on European Union article 3. Within the building on the Investment Plan for Europe, for a closer integration of capital markets, in 2015,
6204-746: The NIGP Code . The NIGP Code is used by 33 states within the United States as well as thousands of cities, counties and political subdivisions. The NIGP Code is a hierarchical schema consisting of a 3 digit class, 5 digit class-item, 7 digit class-item-group, and an 11 digit class-item-group-detail. Applications of the NIGP Code include vendor registration, inventory item identification, contract item management, spend analysis, and strategic sourcing. A manufacturer usually provides an identifier for each particular design of product they make, known as
6336-538: The Restriction of Hazardous Substances Directive (RoHS) and Waste Electrical and Electronic Equipment Directive (WEEE) are relevant in addition to the Low Voltage Directive and EMC Directive. The exact significance of the [REDACTED] mark therefore depends on when it was applied to a specific unit. The marking does not indicate EEA manufacture or that the EU or another authority has approved
6468-519: The Scotch . This "wide test", to determine what could potentially be an unlawful restriction on trade, applies equally to actions by quasi-government bodies, such as the former " Buy Irish " company that had government appointees. It also means states can be responsible for private actors. For instance, in Commission v France French farmer vigilantes were continually sabotaging shipments of Spanish strawberries , and even Belgian tomato imports. France
6600-718: The Treaty of Maastricht , now in TFEU article 63, "all restrictions on the movement of capital between the Member States and between Member States and third countries shall be prohibited". This means capital controls of various kinds are prohibited, including limits on buying currency, limits on buying company shares or financial assets, or government approval requirements for foreign investment . By contrast, taxation of capital, including corporate tax , capital gains tax and financial transaction tax , are not affected so long as they do not discriminate by nationality. According to
6732-551: The free movement of goods among the Member States, was aimed at preventing obstacles to the free movement of goods attributable to "action or inaction" by a Member State. The regulation empowered the Commission to request intervention by a Member State when the actions of private individuals were creating an "obstacle" to free movement of goods. A resolution was adopted by the Council and member state government representatives on
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#17327729894446864-463: The health literacy . Online shopping is usually more informationally rich than shopping at physical stores traveled to and usually has higher comparability and customizability. Production information-related developments can be useful for enabling, facilitating, or shifting towards sustainable consumption and support more sustainable products . Environmental life-cycle assessment (LCA) has been widely used for to assess environmental impacts across
6996-548: The insurance industry, product lines are indicated by the type of risk coverage, such as auto insurance , commercial insurance and life insurance . Various classification systems for products have been developed for economic statistical purposes. The NAFTA signatories are working on a system that classifies products called NAPCS as a companion to the North American Industry Classification System (NAICS). The European Union uses
7128-536: The "Low Voltage" Directive, specifically excludes (amongst other things) plugs and socket outlets for domestic use which are not covered by any Union norm and therefore must not be CE marked. Throughout the EU, as in other jurisdictions, the control of plugs and socket outlets for domestic use is subject to national regulations. Despite this, the illegal use of CE marking can be found on domestic plugs and sockets, particularly so-called "universal sockets". Product (business) In project management , products are
7260-401: The "freedom of establishment" in article 49, and " freedom to provide services " in article 56. In Gebhard v Consiglio dell’Ordine degli Avvocati e Procuratori di Milano the Court of Justice held that to be "established" means to participate in economic life "on a stable and continuous basis", while providing "services" meant pursuing activity more "on a temporary basis". This meant that
7392-514: The Agreement on the European Economic Area ), and Switzerland (through sectoral treaties ). The single market seeks to guarantee the free movement of goods , capital , services , and people , known collectively as the "four freedoms". This is achieved through common rules and standards that all participating states are legally committed to follow. Any potential EU accession candidates are required to agree to association agreements with
7524-404: The CE marking to it but has to take certain obligatory steps before the product can bear CE marking. The manufacturer must carry out a conformity assessment , set up a technical file , and sign a Declaration stipulated by the leading legislation for the product. The documentation has to be made available to authorities on request. Importers of products have to verify that the manufacturer outside
7656-673: The Commission adopted the Action Plan on Building a Capital Markets Union (CMU) setting out a list of key measures to achieve a true single market for capital in Europe, which deepens the existing Banking Union, because this revolves around disintermediated, market-based forms of financing, which should represent an alternative to the traditionally predominant (in Europe) bank-based financing channel. The EU's political and economic context call for strong and competitive capital markets to finance
7788-609: The Court of Justice found that a UK limited company operating in Denmark could not be required to comply with Denmark's minimum share capital rules. UK law only required £1 of capital to start a company, while Denmark's legislature took the view companies should only be started up if they had 200,000 Danish krone (around €27,000) to protect creditors if the company failed and went insolvent . The Court of Justice held that Denmark's minimum capital law infringed Centros Ltd's freedom of establishment and could not be justified, because
7920-399: The Court reasoned that the prohibition would deter people from buying it: it would have "a considerable influence on the behaviour of consumers" that "affects the access of that product to the market ". It would require justification under article 36, or as a mandatory requirement. In contrast to product requirements or other laws that hinder market access , the Court of Justice developed
8052-535: The Court suggested that a total ban for advertising alcohol on the radio, TV and in magazines could fall within article 34 where advertising was the only way for sellers to overcome consumers' "traditional social practices and to local habits and customs" to buy their products, but again the national courts would decide whether it was justified under article 36 to protect public health. Under the Unfair Commercial Practices Directive ,
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#17327729894448184-477: The Directive or Regulation and classification of the product. Many products (such as invasive medical devices, or fire alarm and extinguisher systems, Pressure Equipment, Lifts etc.) in most cases, have a mandatory requirement for the involvement of an authorised third party e.g. a "notified body". There are various attestation routes which include: Stage 4: Assessment of the product's conformity When all of
8316-538: The Dutch prohibition pursued a legitimate aim to prevent "undesirable developments in securities trading" including protecting the consumer from aggressive sales tactics, thus maintaining confidence in the Dutch markets. In Omega Spielhallen GmbH v Bonn a "laserdrome" business was banned by the Bonn council. It bought fake laser gun services from a UK firm called Pulsar Ltd, but residents had protested against "playing at killing" entertainment. The Court of Justice held that
8448-503: The EEA; only product categories subject to relevant directives or regulations are required (and allowed) to bear CE marking. Most CE-marked products can be placed on the market subject only to an internal production control by the manufacturer (Module A; see Self-certification , below), with no independent check of the conformity of the product with EU legislation ; ANEC has cautioned that, amongst other things, CE marking cannot be considered
8580-532: The EU during the negotiation, which must be implemented prior to accession. In addition, through three individual agreements on a Deep and Comprehensive Free Trade Area (DCFTA) with the EU, Georgia , Moldova , and Ukraine have also been granted limited access to the single market in selected sectors. Turkey has access to the free movement of some goods via its membership in the European Union–Turkey Customs Union . The United Kingdom left
8712-481: The EU economy. The CMU project is a political signal to strengthen the single market as a project of all 28 Member States, instead of just the Eurozone countries, and sent a strong signal to the UK to remain an active part of the EU, before Brexit. As well as creating rights for "workers" who generally lack bargaining power in the market, the Treaty on the Functioning of the European Union or TFEU also protects
8844-679: The EU external border goods may circulate freely between member states. Under the operation of the Single European Act , customs border controls between member states have been largely abandoned. Physical inspections on imports and exports have been replaced mainly by audit controls and risk analysis. Article 30 of the TFEU prohibits not only customs duties but also charges having equivalent effect. The European Court of Justice defined "charge having equivalent effect" in Commission v Italy . [A]ny pecuniary charge, however small and whatever its designation and mode of application, which
8976-420: The EU harmonised restrictions on restrictions on marketing and advertising, to forbid conduct that distorts average consumer behaviour, is misleading or aggressive, and sets out a list of examples that count as unfair. Increasingly, states have to give mutual recognition to each other's standards of regulation, while the EU has attempted to harmonise minimum ideals of best practice. The attempt to raise standards
9108-439: The EU has undertaken the necessary steps and that the documentation is available upon request. Importers should also make sure that contact with the manufacturer can always be established. Distributors must be able to demonstrate to national authorities that they have acted with due care and they must have affirmation from the manufacturer or importer that the necessary measures have been taken. If importers or distributors market
9240-507: The EU move further to a European Home Market . The "Four Freedoms" of the single market are: The range of "goods" (or "products") covered by the term "free movement of goods" "is as wide as the range of goods in existence". Goods are only covered if they have economic value, i.e. they can be valued in money and are capable of forming the subject of commercial transactions. Works of art , coins which are no longer in circulation and water are noted as examples of "goods". Fish are goods, but
9372-536: The European single market on 31 December 2020. An agreement was reached between the UK Government and European Commission to align Northern Ireland on rules for goods with the European single market, to maintain an open border on the island of Ireland . The market is intended to increase competition , labour specialisation , and economies of scale , allowing goods and factors of production to move to
9504-521: The German constitutional value of human dignity , which underpinned the ban, did count as a justified restriction on the freedom to provide services. In Liga Portuguesa de Futebol v Santa Casa da Misericórdia de Lisboa the Court of Justice also held that the state monopoly on gambling, and a penalty for a Gibraltar firm that had sold internet gambling services, was justified to prevent fraud and gambling where people's views were highly divergent. The ban
9636-415: The German government's arguments that the measure proportionately protected public health under TFEU article 36, because stronger beverages were available and adequate labelling would be enough for consumers to understand what they bought. This rule primarily applies to requirements about a product's content or packaging. In Walter Rau Lebensmittelwerke v De Smedt PVBA the Court of Justice found that
9768-564: The aim "to ensure normal conditions of competition and to remove all restrictions of a fiscal nature capable of hindering the free movement of goods within the Common Market". Aspects of the EU Customs area extend to a number of non-EU-member states, namely Andorra , Monaco , San Marino and Turkey, under separately negotiated arrangements. The United Kingdom agreed on a trade deal with the European Union on 24 December 2020, which
9900-427: The area where they are most valued, thus improving the efficiency of the allocation of resources. It is also intended to drive economic integration whereby the once separate economies of the member states become integrated within a single EU-wide economy. The creation of the internal market as a seamless, single market is an ongoing process, with the integration of the service industry still containing gaps. According to
10032-419: The classification of the product and its intended use. Every Directive or Regulation has a number of 'essential requirements' that the product has to meet before being placed on the market. The best way to demonstrate that these essential requirements have been met is by meeting the requirements of an applicable 'harmonised standard,’ which offer a presumption of conformity to the essential requirements, although
10164-407: The corresponding domestic transfer costs. This includes all member States of the EU, even those outside the eurozone providing the transactions are carried out in euro. Credit/debit card charging and ATM withdrawals within the Eurozone are also charged as domestic; however, paper-based payment orders, like cheques, have not been standardised so these are still domestic-based. The ECB has also set up
10296-465: The costs of receiving treatment in Germany. The Dutch health authorities regarded the treatment as unnecessary, so she argued this restricted the freedom (of the German health clinic) to provide services. Several governments submitted that hospital services should not be regarded as economic, and should not fall within article 56. But the Court of Justice held that health care was a "service" even though
10428-704: The decision-making mechanisms of the EEC and set a deadline of 31 December 1992 for the completion of a single market. In the end, it was launched on 1 January 1993. The new approach, pioneered at the Delors Commission, combined positive and negative integration, relying upon minimum rather than exhaustive harmonisation. Negative integration consists of prohibitions imposed on member states banning discriminatory behaviour and other restrictive practices. Positive integration consists of approximating laws and standards. Especially important (and controversial) in this respect
10560-420: The eight legitimately branded ones with a reputable name met safety standards, but none of those unbranded or with minor names did, despite bearing the [REDACTED] mark; non-compliant devices were actually potentially unreliable and dangerous, presenting electrical and fire hazards. There are also cases in which the product complies with the applicable requirements, but the form, dimensions, or proportions of
10692-610: The environment, press diversity, fairness in commerce, and more: the categories are not closed. In the most famous case Rewe-Zentral AG v Bundesmonopol für Branntwein , the Court of Justice found that a German law requiring all spirits and liqueurs (not just imported ones) to have a minimum alcohol content of 25 per cent was contrary to TFEU article 34, because it had a greater negative effect on imports. German liqueurs were over 25 per cent alcohol, but Cassis de Dijon , which Rewe-Zentrale AG wished to import from France, only had 15 to 20 per cent alcohol. The Court of Justice rejected
10824-442: The formal definition of the project deliverables that make up or contribute to delivering the objectives of the project. A related concept is that of a sub-product, a secondary but useful result of a production process. Dangerous products, particularly physical ones, that cause injuries to consumers or bystanders may be subject to product liability . A product can be classified as tangible or intangible . A tangible product
10956-419: The free movement of goods had to be balanced, and was probably subordinate. If a member state does appeal to the article 36 justification, the measures it takes have to be applied proportionately . This means the rule must be pursue a legitimate aim and (1) be suitable to achieve the aim, (2) be necessary, so that a less restrictive measure could not achieve the same result, and (3) be reasonable in balancing
11088-410: The freedom to provide services in respect of public works contracts. The Court of Justice has held that secondary education falls outside the scope of article 56, because usually the state funds it, though higher education does not. Health care generally counts as a service. In Geraets-Smits v Stichting Ziekenfonds Mrs Geraets-Smits claimed she should be reimbursed by Dutch social insurance for
11220-436: The government (rather than the service recipient) paid for the service. National authorities could be justified in refusing to reimburse patients for medical services abroad if the health care received at home was without undue delay, and it followed "international medical science" on which treatments counted as normal and necessary. The Court requires that the individual circumstances of a patient justify waiting lists, and this
11352-432: The identification number of the notified body; and a legally binding signature on behalf of the organization. The norms ( directives and regulations ) requiring CE marking affect the following product groups: There are numerous 'Agreements on Mutual Recognition of Conformity Assessment' between the European Union and other countries such as the US, Japan, Canada, Australia, New Zealand and Israel. Consequently, CE marking
11484-466: The interests of free trade with interests in article 36. Often rules apply to all goods neutrally, but may have a greater practical effect on imports than domestic products. For such "indirect" discriminatory (or "indistinctly applicable") measures the Court of Justice has developed more justifications: either those in article 36, or additional "mandatory" or "overriding" requirements such as consumer protection , improving labour standards , protecting
11616-545: The internal market by incorporating the Schengen Area within the competences of the EU. The Schengen Agreement implements the abolition of border controls between most member states, common rules on visas, and police and judicial co-operation. The official goal of the Lisbon Treaty was to establish an internal market, which would balance economic growth and price stability, a highly competitive social market economy , aiming at full employment and social progress, and
11748-406: The internal market, second by creating a European System of Central Banks to co-ordinate common monetary policy, and third by locking exchange rates and introducing a single currency, the euro . Today, 20 member states have adopted the euro , one is in the process of adopting ( Bulgaria ), one has determined to opt-out ( Denmark ) and 5 member states have delayed their accession, particularly since
11880-522: The investor. That case held a Dutch Wealth Tax Act 1964 unjustifiably exempted Dutch investments, but not Mr Baars' investments in an Irish company, from the tax: the wealth tax, or exemptions, had to be applied equally. On the other hand, TFEU article 65(1) does not prevent taxes that distinguish taxpayers based on their residence or the location of an investment (as taxes commonly focus on a person's actual source of profit) or any measures to prevent tax evasion . Apart from tax cases, largely following from
12012-427: The legitimate aim of good administration of justice. Case law states that the treaty provisions relating to the freedom to provide services do not apply in situations where the service, service provider and other relevant facts are confined within a single member state. An early Council Directive from 26 July 1971 included works contracts within the scope of services, and provided for the abolition of restrictions on
12144-431: The level of risk of the product , the CE marking is affixed to a product by the manufacturer or authorized representative who needs to ensure that the product meets all the CE marking requirements. In some cases, if a product has minimal risk, it can be self-certified by a manufacturer making a declaration of conformity and affixing the CE marking to their own product. Self-certification exists only for products that have
12276-607: The life cycle of products. There are LCA datasets that assess all products in some supermarkets in a standardized way. Consumers may seek reliable information to evaluate relevant characteristics of products such as durability and reliability. Development of 'transparency by design' scenarios have been suggested to "complement the physical product with layers of digital information", improving transparency and traceability (T&T). The app CodeCheck gives some smartphone users some capability to scan products for assessed ingredients. Many labels are considered to be flawed and few have
12408-601: The mark itself are not as specified in the legislation. In 2008, a logo very similar to CE marking was alleged to exist and to stand for China Export because some Chinese manufacturers apply it to their products. However, the European Commission says that this is a misconception. The matter was raised at the European Parliament in 2008. The Commission responded that it was unaware of the existence of any "Chinese Export" mark and that, in its view,
12540-527: The mark. The [REDACTED] mark indicates that the product may be traded freely in any part of the European Economic Area, regardless of its country of origin. It consists of the CE logo and, if applicable, the four digit identification number of the notified body involved in the conformity assessment procedure. The [REDACTED] mark on a product indicates that the manufacturer or importer of that product affirms its compliance with
12672-569: The market there, and the UKCA mark is not required. On 1 August, the UK's Department for Business and Trade announced that "The government intends to extend recognition of the [REDACTED] marking for placing most goods on the market in Great Britain, indefinitely, beyond December 2024", with "different rules for medical devices, construction products, cableways, transportable pressure equipment, unmanned aircraft systems, rail products, marine equipment and ecodesign". As of 2019, [REDACTED] marking
12804-404: The misunderstanding had arisen because a producer had failed to respect the precise dimensions and proportions of the mark as prescribed in the legislation. The Commission was also aware of fraudulent misuse of the mark on products that did not comply with the standards, but that this is a separate issue. It had initiated the procedure to register CE marking as a Community collective trademark , and
12936-565: The opinions of Advocate General Maduro , a series of cases held that government owned golden shares were unlawful. In Commission v Germany the Commission claimed the German Volkswagen Act 1960 violated article 63, in that §2(1) restricted any party having voting rights exceeding 20% of the company, and §4(3) allowed a minority of 20% of shares held by the Lower Saxony government to block any decisions. Although this
13068-410: The procedures as listed in the relevant Modules applied as stated by the relevant directives and regulations. A manufacturer can choose any notified body (notified for the certain directive or regulation and relevant Modules) in any Member State of the European Union. In reality, the self-certification process consists of the following stages: Stage 1: Identify the applicable norm(s) The first step
13200-473: The product category for each directive or regulation, the module chosen, and the name and registration number of the notified body involved in certification procedures (models). Notified bodies involved in certification procedures are organizations that have been nominated by a member state (according to an accreditation procedure) and have been notified by the European Commission . These notified bodies act as Independent Inspection organizations and carry out
13332-464: The products of other member states any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products. Furthermore, no Member State shall impose on the products of other member states any internal taxation of such a nature as to afford indirect protection to other products. In the taxation of rum case , the ECJ stated that: The Court has consistently held that
13464-433: The products under their own name, they take over the manufacturer's responsibilities. In this case they must have sufficient information on the design and production of the product, as they will be assuming the legal responsibility when they affix the CE marking. There are certain rules underlying the procedure to affix the marking: Since achieving compliance can be very complex, CE-marking conformity assessment, provided by
13596-547: The public interest in collecting taxes, denial of capacity went too far: it was an "outright negation" of the right of establishment. However, in Cartesio Oktató és Szolgáltató bt the Court of Justice affirmed again that because corporations are created by law, they are in principle subject to any rules for formation that a state of incorporation wishes to impose. This meant that the Hungarian authorities could prevent
13728-476: The purpose of Article 90 EC [now Article 110], as a whole, is to ensure the free movement of goods between the member states under normal conditions of competition, by eliminating all forms of protection which might result from the application of discriminatory internal taxation against products from other member states, and to guarantee absolute neutrality of internal taxation as regards competition between domestic and imported products. Free movement of goods within
13860-626: The relevant EU legislation and the product may be sold anywhere in the European Economic Area (EEA). It is a criminal offence to affix a [REDACTED] mark to a product that is not compliant or offer it for sale. For example, most electrical products must comply with the Low Voltage Directive and the EMC Directive , among others; toys must comply with the Toy Safety Directive . (The Low Voltage Directive
13992-423: The relevant procedures for the specific category of the product or choose the relevant procedures for a higher-category product. The manufacturer, after insuring that the relevant modules for the product category have been applied, will affix the [REDACTED] mark and draw up a Declaration of Conformity. The Declaration of Conformity contains a description of the product, the directive(s) and regulation(s) applied,
14124-399: The requirements have been established, the conformity of the product to the essential requirements of the norm(s) needs to be assessed. This usually involves assessment and/or testing, and may include an evaluation of the conformity of the product to the harmonised standard(s) identified in step 2. Stage 5: Compile the technical documentation Technical documentation, usually referred to as
14256-618: The requirements of all the norms that apply to its product. The European Commission is aware that CE markings, like other certifications marks, are misused. CE marking is sometimes affixed to products that do not fulfill the legal requirements and conditions, or it is affixed to products for which it is not required. In one case it was reported that "Chinese manufacturers were submitting well-engineered electrical products to obtain conformity testing reports, but then removing non-essential components in production to reduce costs". A test of 27 electrical chargers with UK sockets in 2008 found that all
14388-412: The rest of the developed world, Margaret Thatcher sent Lord Cockfield to the Delors Commission to take the initiative to attempt to relaunch the common market. Cockfield wrote and published a White Paper in 1985 identifying 300 measures to be addressed in order to complete a single market. The White Paper was well received and led to the adoption of the Single European Act , a treaty which reformed
14520-727: The same as the manufacturer part number (MPN). Because of the huge amount of similar products in the automotive industry , there is a special kind of defining a car with options (marks, attributes) that represent the characteristics features of the vehicle. A model of a car is defined by some basic options like body, engine, gearbox, and axles. The variants of a model (often called the trim levels ) are built by some additional options like color, seats, wheels, mirrors, other trims, entertainment and assistant systems, etc. Options, that exclude each other (pairwise) build an option family. That means that you can choose only one option for each family and you have to choose exactly one option. In addition,
14652-432: The same day, under which the member states agreed to take action where necessary to protect the free movement of goods and other freedoms, and to issue public information where there were disruptions, including their efforts to address obstacles to free movement of goods. The customs union of the European Union removes customs barriers between member states and operates a common customs policy towards third countries, with
14784-480: The same types of outlets, or fall within given price ranges." Many businesses offer a range of product lines which may be unique to a single organisation or may be common across the business's industry. In 2002 the US Census compiled revenue figures for the finance and insurance industry by various product lines such as "accident, health and medical insurance premiums" and "income from secured consumer loans". Within
14916-665: The same year the Maastricht Treaty set about to create an Economic and Monetary Union as the next stage of integration. Work on freedom for services took longer, and was the last freedom to be implemented, mainly through the Posting of Workers Directive (adopted in 1996) and the Directive on services in the internal market (adopted in 2006). In 1997 the Amsterdam Treaty abolished physical barriers across
15048-404: The self-employed, or "undertakings" such as companies or firms, have a right to set up an enterprise without unjustified restrictions. The Court of Justice has held that both a member state government and a private party can hinder freedom of establishment, so article 49 has both "vertical" and "horizontal" direct effect. In Reyners v Belgium the Court of Justice held that a refusal to admit
15180-502: The significant role that PIM plays is reducing the abandonment rate by giving better product information. European Single Market The European single market , also known as the European internal market or the European common market , is the single market comprising mainly the 27 member states of the European Union (EU). With certain exceptions, it also comprises Iceland , Liechtenstein , Norway (through
15312-412: The technical file, relating to the product or range of products needs to be compiled. This information should cover every aspect relating to conformity and is likely to include details of the design, development and manufacture of the product. Technical documentation will usually include: Stage 6: Make a declaration and affix the CE marking When the manufacturer, importer or authorised representative
15444-411: The time to "study the true environmental impact of every purchase". Full product transparency is a concept of making the full life-cycle impacts public. An important element that is required for various product information is supply chain transparency, which relates to human rights and supply chain sustainability . Produce traceability makes it possible to track produce from its point of origin to
15576-405: The use of a product, this can also infringe article 34. So, in a 2009 case, Commission v Italy , the Court of Justice held that an Italian law prohibiting motorcycles or mopeds from pulling trailers infringed article 34. Again, the law applied neutrally to everyone, but disproportionately affected importers, because Italian companies did not make trailers. This was not a product requirement, but
15708-643: The use of standards usually remains voluntary. Harmonised standards can be identified by searching the 'Official Journal' on the European Commission's website, or by visiting the New Approach website established by the European Commission and EFTA with the European Standardisation Organisations. Stage 3: Identify an appropriate route to conformity The process is not always a self-declaration process, there are various 'attestation routes' to conformity depending on
15840-470: The worst standards of accountability of boards, and low corporate taxes as a result. Similarly in Überseering BV v Nordic Construction GmbH the Court of Justice held that a German court could not deny a Dutch building company the right to enforce a contract in Germany on the basis that it was not validly incorporated in Germany. Although restrictions on freedom of establishment could be justified by creditor protection, labour rights to participate in work, or
15972-473: Was an agreement with a client was not a restriction. The Grand Chamber of the Court of Justice held the commission had not proven that this had any object or effect of limiting practitioners from entering the market. Therefore, there was no prima facie infringement freedom of establishment that needed to be justified. In regard to companies, the Court of Justice held in R (Daily Mail and General Trust plc) v HM Treasury that member states could restrict
16104-431: Was an equally applicable "selling arrangement" (not something that alters a product's content ) it was outside the scope of article 34, and so did not need to be justified. Selling arrangements can be held to have an unequal effect "in fact" particularly where traders from another member state are seeking to break into the market, but there are restrictions on advertising and marketing. In Konsumentombudsmannen v De Agostini
16236-416: Was established in principle through the customs union between its then- six member states . However, the EEC struggled to enforce a single market due to the absence of strong decision-making structures. Because of protectionist attitudes, it was difficult to replace intangible barriers with mutually recognized standards and common regulations. In the 1980s, when the economy of the EEC began to lag behind
16368-463: Was in discussion with Chinese authorities to ensure compliance with EU legislation . Chinese (and other non-EU) manufacturers are permitted to use the [REDACTED] mark provided that the goods have been manufactured in accordance with the relevant EU directives and regulations. Nevertheless, and despite the Commission's assurance that it is without foundation, this urban myth continues to propagate on many websites. In March 2017, another question
16500-825: Was liable for these hindrances to trade because the authorities "manifestly and persistently abstained" from preventing the sabotage. Generally speaking, if a member state has laws or practices that directly discriminate against imports (or exports under TFEU article 35) then it must be justified under article 36, which outlines all of the justifiable instances. The justifications include public morality , policy or security, "protection of health and life of humans , animals or plants", "national treasures" of "artistic, historic or archaeological value" and "industrial and commercial property". In addition, although not clearly listed, environmental protection can justify restrictions on trade as an over-riding requirement derived from TFEU article 11. The Eyssen v Netherlands c ase from 1981 outlined
16632-423: Was made from cocoa butter alone, but British, Danish and Irish manufacturers used other vegetable fats. They claimed the law infringed article 34. The Court of Justice held that a low content of vegetable fat did not justify a "chocolate substitute" label. This was derogatory in the consumers' eyes. A "neutral and objective statement" was enough to protect consumers. If member states place considerable obstacles on
16764-546: Was not an impediment to the actual purchase of shares, or receipt of dividends by any shareholder, the Court of Justice 's Grand Chamber agreed that it was disproportionate for the government's stated aim of protecting workers or minority shareholders. Similarly, in Commission v Portugal the Court of Justice held that Portugal infringed free movement of capital by retaining golden shares in Portugal Telecom that enabled disproportionate voting rights, by creating
16896-515: Was not required by countries of the Central European Free Trade Agreement (CEFTA), but CEFTA members Albania, North Macedonia, Serbia, and Montenegro had applied for membership of the European Union, and were adopting many of its standards within their legislation, as had most Central European former member countries of CEFTA that joined the EU, before joining. The formal legal status of the [REDACTED] mark
17028-896: Was proportionate as this was an appropriate and necessary way to tackle the serious problems of fraud that arise over the internet. In the Services Directive a group of justifications were codified in article 16 that the case law has developed. In May 2015 the Juncker Commission announced a plan to reverse the fragmentation of internet shopping and other online services by establishing a Single Digital Market that would cover digital services and goods from e-commerce to parcel delivery rates, uniform telecoms and copyright rules. The free movement of people means EU citizens can move freely between member states for whatever reason (or without any reason) and may reside in any member state they choose if they are not an undue burden on
17160-400: Was put to the European Commission on the statistics of the fraudulent use of the CE mark, reasserting the "China Export" myth. In reply, the Commission notes that it is the responsibility of Member States to take legal action on infringements; the Commission does not have statistics on the penalties that were imposed by Member States for the improper use of the CE marking. Directive 2006/95/EC,
17292-469: Was signed by Prime Minister Boris Johnson on 30 December 2020. Article 30 of the Treaty on the Functioning of the European Union ("TFEU") prohibits border levies between member states on both European Union Customs Union produce and non-EUCU (third-country) produce. Under Article 29 of the TFEU, customs duty applicable to third country products are levied at the point of entry into EUCU, and once within
17424-431: Was subject to restriction. If an activity does fall within article 56, a restriction can be justified under article 52 or over-riding requirements developed by the Court of Justice. In Alpine Investments BV v Minister van Financiën a business that sold commodities futures (with Merrill Lynch and another banking firm) attempted to challenge a Dutch law prohibiting cold calling customers. The Court of Justice held
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