Question 1

Analyze the relevant law and advise Continental Trade Ltd whether European law will
enable them to import their goods into the German market and compete effectively with
German producers.

Facts

Continental Trade Ltd, the Plaintiff is a French organic food producer which produces veggie-burger and
distributes fruits and vegetables to all EU countries wants to import their veggie-burgers into Germany.
But as ten children contracted salmonella by eating vegetable-based-burger, Germany, the defendant,
recently banned import of all non-meat-burger. Also the German government recently imposed higher tax
on grapes and grapes-based products without any justification. This resulted the CT’s sales of grapes in
Germany drop by 50%. However, the case doesn’t specify how much tax is imposed by Germany on
grapes-based products.

Issue

Continental Trade Ltd, the plaintiff, wants to import their veggie-burgers into Germany, the defendant,
but due to health related issues, Germany banned import of all non-meat-based burgers. German
government also imposed higher tax on all grapes-based product without any justification which
decreased the sales of CT’s grapes in Germany by 50%. The issue here is, can CT import its veggie-
burgers into Germany and can German government impose higher tax on grape-based products? Article
28(1), 30, 34 and 36 is applicable in this case.

Rules and relevant laws

• Article 28(1)
The Union shall comprise a customs union which shall cover all trade in goods and which shall involve
the prohibition between Member States of customs duties on imports and exports and of all charges
having equivalent effect, and the adoption of a common customs tariff in their relations with third
countries.

• Article 30
Customs duties on imports and exports and charges having equivalent effect shall be prohibited between
Member States. This prohibition shall also apply to customs duties of a fiscal nature.

• Article 34
Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between
Member States.

• Article 36
The provisions of Articles 34 and 35 shall not preclude prohibitions or restrictions on imports, exports or
goods in transit justified on grounds of public morality, public policy or public security; the protection of
health and life of humans, animals or plants; the protection of national treasures possessing artistic,
historic or archaeological value; or the protection of industrial and commercial property. Such
prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a
disguised restriction on trade between Member States.
Application

According to Article 28 and Article 30, there should be prohibition of customs duties on import and
export or any charges having equivalent effect between EU member states. But Germany the defendant,
imposed higher tax on grapes imported into Germany by CT the plaintiff, a French company i.e. a
member state of EU without any justification. So, according to Article 28 and Article 30, German
government cannot impose higher tax on grapes imported into Germany by CT.

According to Article 34, Germany the defendant, cannot impose ban on import of veggie-burgers from
CT the plaintiff, i.e. a member state. But Germany imposed the ban on non meat based burgers because
ten children contracted salmonella by eating vegetable-based burger. So according to Article 36, Germany
can impose the ban under protection of health and lives of humans.

Conclusion

Germany, the defendant, violated Article 28 and 30 of TFEU by imposing higher tax on grapes imported
into Germany by CT the plaintiff. So according to Article 28 and Article 30, CT can import its products
into Germany without having to pay any higher tax and compete effectively with German producers.

Germany also imposed ban on import of all non-meat-based burgers from all countries including member
states of EU, which violates Article 34. But as Germany imposed ban for the protection of health and
lives of human, according to Article 36, Germany can continue to impose the ban. Therefore, CT the
plaintiff, cannot import their veggie burgers to Germany.

Bibliography
CONSOLIDATED VERSION OF THE TREATY OF THE FUNCTIONING OF THE EUROPEAN UNION