New EU Regulation on Mutual Recognition principle of goods lawfully placed on the market in one Member State
The new Regulation on the mutual recognition of goods lawfully marketed in another Member State (Regulation 2019/515) was adopted in February 2019, entered into force on 18 April 2019 and will apply from 19 April 2020.
The 2019 Regulation which replaces the former Regulation 764/2008aims to improve the rules governing the trade of goods in the EU single market.
One of the fundamental principles of the EU is the principle of mutual recognition, which derives from the case-law of the European Court of Justice in the application of the free movement of goods embedded in the European Treaties. It essentially requires the EU Member States to guarantee the introduction of goods, which have been lawfully marketed in another EU Member State. In case a Member State restricts the market access it needs to clearly justify why the market access has been restricted.
Several novelties have been brought forward by the new revised Regulation:
· Mutual Recognition Declaration which is a self-voluntary declaration that can be used in front of the authorities to prove the lawful marketing of goods in one Member State.
· Assessment of the legality of goods in the other EU Member States. The Regulation introduces a procedure through which the Member States can assess if goods were legally marketed in another Member State. Only in the extreme cases where the goods pose a risk to the safety or health of persons, the ‘’Member State of destination’’ may temporary suspend the entry of the concerned goods. Once the assessment is finalized, the competent authority of the Member State shall notify and justify its administrative decision and it shall provide for the remedies and procedures available under its national law and a reference to the SOLVIT procedure.
· SOLVIT procedure is a non-judicial mechanism, which has the purpose of settling disputes between individuals or business and Member States regarding the EU law.
· Product Contact Points: through those entities, the new Regulation also tries to raise awareness and promote the free movement and the mutual recognition of goods principles in every Member State.
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