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More specifically, this review will consider EU competence in:- Trade in goods within the Internal Market, as well as the way in which thistrade is regulated, including through product regulation; product safety; qualitylabelling; market surveillance; and standardisation;- The EU Customs Union, collection of taxes and duties at the EU frontier andcustoms’ role in trade facilitation; and- Intellectual property, for which EU legislation provides some uniformsystems of protection for unitary rights, and also affects internal and externaltrade.3. CompetenceFor the purposes of this review, we are using a broad definition of competence.Put simply, competence in this context is about everything deriving from EU lawthat affects what happens in the UK. That means examining all the areas wherethe Treaties give the EU competence to act, including the provisions in theTreaties giving the EU institutions the power to legislate, to adopt non-legislativeacts, or to take any other sort of action. But it also means examining areaswhere the Treaties apply directly to the Member States without needing anyfurther action by the EU institutions.The EU’s competences are set out in the EU Treaties. These provide the basisfor any actions the EU institutions take. The EU can only act within the limits ofthe competences conferred on it by the Treaties. Where the Treaties do notconfer competences on the EU, they remain with the Member States. The freemovement of goods, including the Customs Union and intellectual property, isspecifically covered in Articles 28 to 37, and 118 of the Treaty on the Functioningof the EU (TFEU).There are different types of competence: exclusive, shared and supporting. Onlythe EU can act in areas where it has exclusive competence, such as the customsunion and common commercial policy. In areas of shared competence, such asthe Internal Market or environment and energy, either the EU or the MemberStates may act, but the Member States may be prevented from acting once theEU has done so. In areas of supporting competence, such as culture, tourismand education, both the EU and the Member States may act, but action by theEU does not prevent the Member States from taking action of their own.The EU must act in accordance with fundamental rights as set out in the Charterof Fundamental Rights (such as freedom of expression and non-discrimination)and the principles of subsidiarity and proportionality. Under the principle ofsubsidiarity, where the EU does not have exclusive competence, it can only act ifit is better placed than the Member States to do so because of the scale oreffects of the proposed action. Under the principle of proportionality, the content4
and form of EU action must not exceed what is necessary to achieve theobjectives of the EU treaties.4. Objectives of this reviewThe aim of the review is to consider:(1) how and why EU competence has developed on trade in goods within theInternal Market; the Customs Union; and the protection of intellectual property;(2) what the current balance of competence is between the UK and the EU inthese areas;(3) how this competence is exercised in practice, including whether it is workingin the UK’s national interest; and(4) the EU’s current direction of travel in these areas, including the potentialfuture development of the Internal Market, Customs Union and intellectualproperty rights policy, and future challenges and opportunities for the UK.This review will seek to address the issues in a comprehensive, evidence-based,and analytical way. Whilst it is being led by the Government, it will also involvenon-governmental experts, organisations and other individuals who wish to feedin their views. Foreign governments, including our EU partners, and the EUinstitutions, are also invited to contribute. The progress of the review will betransparent, including in respect of the contributions submitted to it.This part of the Balance of Competences review will explore the current state ofEU competence on the free movement of goods within the Internal Market,setting out areas of exclusive EU competence; areas outside EU competence(and therefore reserved to Member States) and where the boundary currently sitsin areas of shared competence.Links to other reviewsThe free movement of goods is just one of the ‘Four Freedoms’ that make up theEU’s Internal Market (see diagram below). The other three ‘freedoms’ will becovered in separate reports, and there will be an overall Synoptic Review toexamine the Internal Market as a whole.5
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Free Movement of Goods - Gov.uk

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