(STTU) Sub Tropical Trade Union

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(STTU) Sub Tropical Trade Union

Post  Atanosia on Sun Oct 05, 2014 12:38 am

WELCOME TO THE SUBTROPICAL-TRADEUNION

-Flag of The S.T.T.U.-

The S.T.T.U. is an international organization open to nations within the SubTropical zone, the goals of the union are to establish a singular market consisting of member state markets within the S.T.T.U. and increase political ties between member states and their influence internationally.

Headquarters of the S.T.T.U.



Free movement of goods

Customs duties and taxation

Main article: STTU Customs Union

The SubTropical Trade Union is also a customs union. This means that member states have removed customs barriers between themselves and introduced a common customs policy towards other countries. The overall purpose of the duties is "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".

Customs duties

Article 30 TFSTTU prohibits member states from levying any duties on goods crossing a border, both goods produced within the STTU and those produced outside. Once a good has been imported into the EU from a third country and the appropriate customs duty paid, Article 29 TFSTTU dictates that it shall then be considered to be in free circulation between the member states. Neither the purpose of the charge, nor its name in domestic law, is relevant.

Since the Single SubTropical Act, there can be no systematic customs controls at the borders of member states. The emphasis is on post-import audit controls and risk analysis. Physical controls of imports and exports now occur at traders' premises, rather than at the territorial borders. Charges having equivalent effect to customs duties

Article 30 of the TFSTTU prohibits not only customs duties but also charges having equivalent effect.

Any pecuniary charge, however small and whatever its designation and mode of application, which 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 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 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. A charge is not a customs duty or charge having equivalent effect if:

it relates to a general system of internal dues applied systematically and in accordance with the same criteria to domestic products and imported products alike,
if it constitutes payment for a service in fact rendered to the economic operator of a sum in proportion to the service, or subject to certain conditions, if it attaches to inspections carried out to fulfil obligations imposed by Union law.

Taxation

Article 110 of the TFSTTU provides:

No Member State shall impose, directly or indirectly, on 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, it is stated that:
The Court has consistently held that 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."

Quantitative restrictions and measures having equivalent effect

In addition to prohibiting customs duties and discriminatory taxes, the TFSTTU, in Article 34, prohibits quotas and “measures having equivalent effect”. But what are measures having equivalent effect and how do they affect trade between member states? The Treaty does not answer these questions and the SubTropical Court has over several decades provided detailed case law interpreting Article 34. The Court has said that discriminatory and non-discriminatory rules of member states (therefore not actions of private corporations or individuals) that hinder intra-Union trade, in the absence of a permissible justification, shall be illegal.
Directly discriminatory rules

Directly discriminatory rules distinguish between national and imported goods in law and in fact. A prohibition of imports imposed by state A on goods from state B is directly discriminatory but restrictions do not have to take the shape of prohibitions or quotas. A Member State can lead advertising and promoting campaigns that favours domestic products, or it can impose higher prices or more stringent conditions (such as health inspections) on imported goods. The key to discrimination is that domestic products are not subject to the added difficulties, and are therefore put at an advantage.
Indirectly discriminatory rules

Indirectly discriminatory rules that hinder trade do not distinguish in law but do so in fact. They impose a higher burden on the importer due to additional work it has to complete to make the product marketable. Although in law the rules apply equally to domestic producers and importers, in reality the burden is born by importers, the domestic producers already complying with the rules. If, in addition, the product is marketed in a number of member states, the exporter from state A might be subject to as many different regimes as there are countries into which he is hoping to import.

For example, a (fictitious) law is that alcoholic drinks of a particular kind must not contain more than 40% alcohol. Law applies to all those who wish to market the alcoholic drinks in question – whether they are domestic in origin or foreign. In that respect, in law, they do not discriminate. On the other hand, as a result of their presence, a legally marketed drink either has to be modified and its alcohol contents reduced to only 40% or must be absent from the market altogether. STTU law, under the circumstances mentioned in the previous paragraph, prohibits this kind of distinction: although the law appears to treat all parties equally, in fact domestic producers are favoured.

Product requirements and certain selling arrangements

Naturally, allegations can be made against any rule that inconveniences the trader, and this includes a very large number of rules. Therefore, in the last of the mentioned cases, the Court decided that only rules relating to product requirements (shape, size, colour, etc.) should be illegal, while those relating to selling arrangements (opening hours, staff training requirements, etc.) will mostly not be. The division was an attempt to limit the number of cases to only those situations where, in the absence of discrimination, there is real danger of importer suffering the presence of dual burden.

Justification

Under certain circumstances, member states whose rules have been disapplied may defend them. For rules that discriminate, a defence will be possible under Article 36 which mentions, among other grounds for prohibition or restriction of free movement, public morality, public policy, public security, protection of health, etc. For example, a national restriction of import of meat from certain countries will be justified, though deemed contrary to free movement rules, if the member state can justify it by proving that it was necessary for "the protection of health and life of humans". A restriction of importation of pornographic material may be justified on the grounds of public morality, if such material is normally illegal in the said Member State. Non-discriminatory rules may be justified not only by reference to Article 36 but also to a Court-made list of exceptions, and are commonly referred to as "mandatory requirements"

Free movement of capital

Free movement of capital is intended to permit movement of investments such as property purchases and buying of shares between countries. Until the drive towards Economic and Monetary Union the development of the capital provisions had been slow. Post-Maastricht there has been a rapidly developing corpus of judgements regarding this initially neglected freedom. The free movement of capital is unique in that it is a goal of the STTU to pursue a liberal capital regime with third countries.

Capital within the STTU may be transferred in any amount from one country to another. All intra-STTU transfers in Dollars are considered as domestic payments and bear the corresponding domestic transfer costs. This includes all member States of the STTU, even those outside the dollarzone providing the transactions are carried out in dollar. Credit/debit card charging and ATM withdrawals within the dollarzone are also charged as domestic, however paper-based payment orders, like cheques, have not been standardised so these are still domestic-based. The STO has also set up a clearing system, TARGET, for large dollar transactions.

Free movement of services

The free movement of services and of establishment allows self-employed persons to move between member states in order to provide services on a temporary or permanent basis. While services account for between sixty and seventy percent of GDP, legislation in the area is not as developed as in other areas. This lacuna has been addressed by the recently passed Directive on services in the internal market which aims to liberalise the cross border provision of services. According to the Treaty the provision of services is a residual freedom that only applies if no other freedom is being exercised.

The Free Movement of Services is established in Article 56 TFSTTU, with further guidance in Article 57 – 62 TFSTTU. Exceptions are found in Articles 51-55 TFSTTU (common with Freedom of Establishment). The freedom prohibits restrictions on free circulation of services within Member States. Services are defined in the negative, “they are normally provided for remuneration, in so far as they are not governed by the provisions relating to freedom of movement for goods, capital and persons.” (Art. 57 TFSTTU)

The services are distinguished from freedom of establishment based on their temporary rather than permanent nature and from free movement of workers based on the fact that the freedom affects corporate entities and individuals outside of the relationship of employment. Chapter 3 of Title IV applies to services as long as either the service moves across the border, or the provider moves or the service itself moves (e.g. an internet purchase).

The freedom to provide services is directly effective, meaning that member states must ensure that national laws do not conflict with the provisions. The Court has recognised that the obstacles to freedom to provide services may arise both from discriminatory and indistinctly applicable rules.

Two directives are also of particular relevance - the Posting of Workers Directive, sometimes referred to as the Posted Workers Directive, and the Directive on services in the internal market.

Freedom of establishment

The principle of the freedom of establishment has a basis in Articles 49-55 of the TFSTTU. To better understand the freedom of establishment, Article 49 and Article 54 tend to be read together. According to Article 49 "...restrictions on the freedom of establishment of nationals of a Member State in the territory of another Member State shall be prohibited.... Freedom of establishment shall include the right to take up and pursue activities as self-employed persons and to set up and manage undertakings, in particular companies or firms within the meaning of the second paragraph of Article 54..." This second paragraph defines 'companies or firms' as "...companies or firms constituted under civil or commercial law, including cooperative societies, and other legal persons governed by public or private law, save for those which are non-profit-making." The right of establishment, therefore, is granted both to natural and legal persons.

The principle has been broadly interpreted by the SubTropical Court. However, its restrictions have been narrowly and literally interpreted. For example, the SubTropical Court held that "...the exceptions allowed by the first paragraph ... cannot be given a scope which would exceed the objective for which this exemption clause was inserted.". The teeth of this principle is that natural persons, who are nationals of a Member State, and Community companies may take up economic activity in any Member State in a stable and continuous way and cannot be discriminated against based on nationality or the mode of incorporation.

Free movement of people

The free movement of people means STTU citizens can move freely between member states to live, work, study or retire in another country. This required the lowering of administrative formalities and more recognition of professional qualifications of other states.

Broadly defined, this freedom enables citizens of one Member State to travel to another, to reside and to work there (permanently or temporarily). The idea behind STTU legislation in this field is that citizens from other member states should be treated equally with domestic ones – they should not be discriminated against.

The main provision of the freedom of movement of persons is Article 45 of the TFSTTU that prohibits restrictions on the basis of nationality.

Free movement of workers

Main article: Freedom of movement for workers

Workers have the right to move to a different Member State, to look for work and be employed under the same conditions as nationals of that State (subject to a number of reserved areas greatly varying according to country: this means in many instances nationals of country A exercising a profession in country B the equivalent of which a national of country B would not be authorised to exercise in country A), number and benefit from the same social and tax advantages. This right has been extended by the Court of Justice to family members that accompany the worker, although they derive their rights from the main holder. Family members from non-STTU states also have these rights. To claim these rights, family members must complete specific paperwork.

Free movement for the non-economically active

Main article: Citizenship of the European Union

Following the Maastricht Treaty, the rights of economically active persons to free movement within the STTU have been complemented by limited rights for non-economically active citizens to move freely within the STTU, under Article 21 (1) of the TFSTTU on the right to move and reside freely within the STTU.

Member States of the S.T.T.U.
----------------------------------------------------
The Empire of Great Eurussia
The Federation of Atanosia
----------------------------------------------------

OBSERVE
Nations that are not within the SubTropical zone have a possibility of joining if they possess a habited colony within that area and the capital is not positioned further than 550 kilometers from it.


Last edited by Atanosia on Sun Oct 05, 2014 3:28 am; edited 6 times in total
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Re: (STTU) Sub Tropical Trade Union

Post  Xolox on Sun Oct 05, 2014 1:02 am

Xolox would like to join as soon as our quarantine lifts ( Or now if that is allowed)

OOC: you left a couple of EU'S and European Unions in the law part.
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Re: (STTU) Sub Tropical Trade Union

Post  Atanosia on Sun Oct 05, 2014 2:32 am

Xolox wrote:Xolox would like to join as soon as our quarantine lifts ( Or now if that is allowed)

OOC: you left a couple of EU'S and European Unions in the law part.
The Union will keep that in mind. (+ sorry!)
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NOTICE

Post  Great Eurussia on Sun Oct 05, 2014 7:03 am

Spoiler:

Atanosia wrote:
WELCOME TO THE SUBTROPICAL-TRADEUNION

-Flag of The S.T.T.U.-

The S.T.T.U. is an international organization open to nations within the SubTropical zone, the goals of the union are to establish a singular market consisting of member state markets within the S.T.T.U. and increase political ties between member states and their influence internationally.

Headquarters of the S.T.T.U.



Free movement of goods

Customs duties and taxation

Main article: STTU Customs Union

The SubTropical Trade Union is also a customs union. This means that member states have removed customs barriers between themselves and introduced a common customs policy towards other countries. The overall purpose of the duties is "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".

Customs duties

Article 30 TFSTTU prohibits member states from levying any duties on goods crossing a border, both goods produced within the STTU and those produced outside. Once a good has been imported into the EU from a third country and the appropriate customs duty paid, Article 29 TFSTTU dictates that it shall then be considered to be in free circulation between the member states. Neither the purpose of the charge, nor its name in domestic law, is relevant.

Since the Single SubTropical Act, there can be no systematic customs controls at the borders of member states. The emphasis is on post-import audit controls and risk analysis. Physical controls of imports and exports now occur at traders' premises, rather than at the territorial borders. Charges having equivalent effect to customs duties

Article 30 of the TFSTTU prohibits not only customs duties but also charges having equivalent effect.

Any pecuniary charge, however small and whatever its designation and mode of application, which 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 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 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. A charge is not a customs duty or charge having equivalent effect if:

it relates to a general system of internal dues applied systematically and in accordance with the same criteria to domestic products and imported products alike,
if it constitutes payment for a service in fact rendered to the economic operator of a sum in proportion to the service, or subject to certain conditions, if it attaches to inspections carried out to fulfil obligations imposed by Union law.

Taxation

Article 110 of the TFSTTU provides:

No Member State shall impose, directly or indirectly, on 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, it is stated that:
The Court has consistently held that 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."

Quantitative restrictions and measures having equivalent effect

In addition to prohibiting customs duties and discriminatory taxes, the TFSTTU, in Article 34, prohibits quotas and “measures having equivalent effect”. But what are measures having equivalent effect and how do they affect trade between member states? The Treaty does not answer these questions and the SubTropical Court has over several decades provided detailed case law interpreting Article 34. The Court has said that discriminatory and non-discriminatory rules of member states (therefore not actions of private corporations or individuals) that hinder intra-Union trade, in the absence of a permissible justification, shall be illegal.
Directly discriminatory rules

Directly discriminatory rules distinguish between national and imported goods in law and in fact. A prohibition of imports imposed by state A on goods from state B is directly discriminatory but restrictions do not have to take the shape of prohibitions or quotas. A Member State can lead advertising and promoting campaigns that favours domestic products, or it can impose higher prices or more stringent conditions (such as health inspections) on imported goods. The key to discrimination is that domestic products are not subject to the added difficulties, and are therefore put at an advantage.
Indirectly discriminatory rules

Indirectly discriminatory rules that hinder trade do not distinguish in law but do so in fact. They impose a higher burden on the importer due to additional work it has to complete to make the product marketable. Although in law the rules apply equally to domestic producers and importers, in reality the burden is born by importers, the domestic producers already complying with the rules. If, in addition, the product is marketed in a number of member states, the exporter from state A might be subject to as many different regimes as there are countries into which he is hoping to import.

For example, a (fictitious) law is that alcoholic drinks of a particular kind must not contain more than 40% alcohol. Law applies to all those who wish to market the alcoholic drinks in question – whether they are domestic in origin or foreign. In that respect, in law, they do not discriminate. On the other hand, as a result of their presence, a legally marketed drink either has to be modified and its alcohol contents reduced to only 40% or must be absent from the market altogether. STTU law, under the circumstances mentioned in the previous paragraph, prohibits this kind of distinction: although the law appears to treat all parties equally, in fact domestic producers are favoured.

Product requirements and certain selling arrangements

Naturally, allegations can be made against any rule that inconveniences the trader, and this includes a very large number of rules. Therefore, in the last of the mentioned cases, the Court decided that only rules relating to product requirements (shape, size, colour, etc.) should be illegal, while those relating to selling arrangements (opening hours, staff training requirements, etc.) will mostly not be. The division was an attempt to limit the number of cases to only those situations where, in the absence of discrimination, there is real danger of importer suffering the presence of dual burden.

Justification

Under certain circumstances, member states whose rules have been disapplied may defend them. For rules that discriminate, a defence will be possible under Article 36 which mentions, among other grounds for prohibition or restriction of free movement, public morality, public policy, public security, protection of health, etc. For example, a national restriction of import of meat from certain countries will be justified, though deemed contrary to free movement rules, if the member state can justify it by proving that it was necessary for "the protection of health and life of humans". A restriction of importation of pornographic material may be justified on the grounds of public morality, if such material is normally illegal in the said Member State. Non-discriminatory rules may be justified not only by reference to Article 36 but also to a Court-made list of exceptions, and are commonly referred to as "mandatory requirements"

Free movement of capital

Free movement of capital is intended to permit movement of investments such as property purchases and buying of shares between countries. Until the drive towards Economic and Monetary Union the development of the capital provisions had been slow. Post-Maastricht there has been a rapidly developing corpus of judgements regarding this initially neglected freedom. The free movement of capital is unique in that it is a goal of the STTU to pursue a liberal capital regime with third countries.

Capital within the STTU may be transferred in any amount from one country to another. All intra-STTU transfers in Dollars are considered as domestic payments and bear the corresponding domestic transfer costs. This includes all member States of the STTU, even those outside the dollarzone providing the transactions are carried out in dollar. Credit/debit card charging and ATM withdrawals within the dollarzone are also charged as domestic, however paper-based payment orders, like cheques, have not been standardised so these are still domestic-based. The STO has also set up a clearing system, TARGET, for large dollar transactions.

Free movement of services

The free movement of services and of establishment allows self-employed persons to move between member states in order to provide services on a temporary or permanent basis. While services account for between sixty and seventy percent of GDP, legislation in the area is not as developed as in other areas. This lacuna has been addressed by the recently passed Directive on services in the internal market which aims to liberalise the cross border provision of services. According to the Treaty the provision of services is a residual freedom that only applies if no other freedom is being exercised.

The Free Movement of Services is established in Article 56 TFSTTU, with further guidance in Article 57 – 62 TFSTTU. Exceptions are found in Articles 51-55 TFSTTU (common with Freedom of Establishment). The freedom prohibits restrictions on free circulation of services within Member States. Services are defined in the negative, “they are normally provided for remuneration, in so far as they are not governed by the provisions relating to freedom of movement for goods, capital and persons.” (Art. 57 TFSTTU)

The services are distinguished from freedom of establishment based on their temporary rather than permanent nature and from free movement of workers based on the fact that the freedom affects corporate entities and individuals outside of the relationship of employment. Chapter 3 of Title IV applies to services as long as either the service moves across the border, or the provider moves or the service itself moves (e.g. an internet purchase).

The freedom to provide services is directly effective, meaning that member states must ensure that national laws do not conflict with the provisions. The Court has recognised that the obstacles to freedom to provide services may arise both from discriminatory and indistinctly applicable rules.

Two directives are also of particular relevance - the Posting of Workers Directive, sometimes referred to as the Posted Workers Directive, and the Directive on services in the internal market.

Freedom of establishment

The principle of the freedom of establishment has a basis in Articles 49-55 of the TFSTTU. To better understand the freedom of establishment, Article 49 and Article 54 tend to be read together. According to Article 49 "...restrictions on the freedom of establishment of nationals of a Member State in the territory of another Member State shall be prohibited.... Freedom of establishment shall include the right to take up and pursue activities as self-employed persons and to set up and manage undertakings, in particular companies or firms within the meaning of the second paragraph of Article 54..." This second paragraph defines 'companies or firms' as "...companies or firms constituted under civil or commercial law, including cooperative societies, and other legal persons governed by public or private law, save for those which are non-profit-making." The right of establishment, therefore, is granted both to natural and legal persons.

The principle has been broadly interpreted by the SubTropical Court. However, its restrictions have been narrowly and literally interpreted. For example, the SubTropical Court held that "...the exceptions allowed by the first paragraph ... cannot be given a scope which would exceed the objective for which this exemption clause was inserted.". The teeth of this principle is that natural persons, who are nationals of a Member State, and Community companies may take up economic activity in any Member State in a stable and continuous way and cannot be discriminated against based on nationality or the mode of incorporation.

Free movement of people

The free movement of people means STTU citizens can move freely between member states to live, work, study or retire in another country. This required the lowering of administrative formalities and more recognition of professional qualifications of other states.

Broadly defined, this freedom enables citizens of one Member State to travel to another, to reside and to work there (permanently or temporarily). The idea behind STTU legislation in this field is that citizens from other member states should be treated equally with domestic ones – they should not be discriminated against.

The main provision of the freedom of movement of persons is Article 45 of the TFSTTU that prohibits restrictions on the basis of nationality.

Free movement of workers

Main article: Freedom of movement for workers

Workers have the right to move to a different Member State, to look for work and be employed under the same conditions as nationals of that State (subject to a number of reserved areas greatly varying according to country: this means in many instances nationals of country A exercising a profession in country B the equivalent of which a national of country B would not be authorised to exercise in country A), number and benefit from the same social and tax advantages. This right has been extended by the Court of Justice to family members that accompany the worker, although they derive their rights from the main holder. Family members from non-STTU states also have these rights. To claim these rights, family members must complete specific paperwork.

Free movement for the non-economically active

Main article: Citizenship of the European Union

Following the Maastricht Treaty, the rights of economically active persons to free movement within the STTU have been complemented by limited rights for non-economically active citizens to move freely within the STTU, under Article 21 (1) of the TFSTTU on the right to move and reside freely within the STTU.

Member States of the S.T.T.U.
----------------------------------------------------
The Empire of Great Eurussia
The Federation of Atanosia
----------------------------------------------------

OBSERVE
Nations that are not within the SubTropical zone have a possibility of joining if they possess a habited colony within that area and the capital is not positioned further than 550 kilometers from it.


Eurussia reconsiders its recent intention of membership to the Sub Tropical Trade Union. In the initial proposals, it is our understanding that the union is a free trade union, only. But citing the inclusion of customs union, taxation, product requirements, free movement of workers, and free movement of people, our capabilities to impose our policies will be limited.


Hence, Eurussia requests to be categorized as an Observer State for the time being.
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Re: (STTU) Sub Tropical Trade Union

Post  Xolox on Mon Jan 05, 2015 6:11 am

Xolox is leaving this organization(if I was ever admitted), and since the founder nation has left the region, can we remove this thread?
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Re: (STTU) Sub Tropical Trade Union

Post  Great Eurussia on Tue Jan 06, 2015 10:12 pm

Xolox wrote:Xolox is leaving this organization(if I was ever admitted), and since the founder nation has left the region, can we remove this thread?

Noted.
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