Posted: December 21st, 2015

Critically discuss and advise Pueblo as to how the law on the free movement of goods (as applied by Articles 30 and 110 TFEU) can be argued to the various payments and taxes levied in the above scenario.

Pueblo is a Spanish farmer of sheep and dairy cattle. There was an outbreak of sheep rot in some EU member states, although Pueblo’s farm was not affected. As a result of this disease, trade in live sheep was restricted in the EU although an all clear was recently announced. When Pueblo attempted to import some live sheep into France the French authorities required him to pay for a health inspection.

Pueblo exported milk to the UK. At the port of arrival he was required to pay a fee for storage and checking. He then paid a further amount for onward transportation.

Pueblo’s farm also produces different types of cheese. He imports some high quality cheese to Germany. The German authorities levy a 20% tax rate on Pueblo’s cheeses compared to a 10% tax on equivalent German cheeses. The authorities argue that this is justified as German cheeses are produced by environmentally friendly methods.

Pueblo discovered that alternatives to cheese (such as cold meat and food spreads) have only a 5% tax levied on them in Germany. Pueblo is arguing that this is affecting the sales of his cheeses in Germany.

Critically discuss and advise Pueblo as to how the law on the free movement of goods (as applied by Articles 30 and 110 TFEU) can be argued to the various payments and taxes levied in the above scenario.