Action
Single Market/UK SOLVIT Centre 
The Internal Market, opportunities for your business
Improving the Internal Market in the 21st century
When the Internal Market is not working
Action
Single Market/ UK SOLVIT Centre here to help
Action
Single Market/UK SOLVIT Centre Taking your complaint
further
Common Problem areas
Contact the UK SOLVIT Centre
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The Internal Market - opportunities
for you
Sometimes
known as the Single European Market or the Internal
Market, the Internal Market was forged through an
agreement between a number of European countries to
pull down barriers and build an area without internal
frontiers: an area in which four fundamental freedoms
- the free movement of goods, people, services and
capital - were assured.
In
practical terms this has been achieved through the
complete removal of customs barriers between all EU
Member States and through mutual recognition of goods
and service standards.
The
EU Enlargement with the inclusion of the 10 new Member
States, all operating under the same rules, has made
the Internal market the world’s largest single market.
With a single market of over 450 million consumers,
UK businesses and citizens will benefit from access
to a market larger than the USA and Japan combined.
This is set to expand further with Romania and Bulgaria
scheduled to join in 2007 and Turkey and Croatia set
to join in years to come. The Internal market consists
of 25 Member States of the European Union together
with Iceland, Norway and Liechtenstein.
The advantages of the Internal Market have been huge. It has:
- Eliminated trade tariffs and customs barriers to give British companies
a wider market for UK goods.
- Made it easier and quicker to trade by reducing export bureaucracy
and establishing common product and safety standards
so that manufacturers can sell their products all
over Europe without lengthy and expensive re-testing
in every country.
- Opened up the European labour market through mutual recognition
of skills and qualifications.
- Increased choice has helped to bring down prices through greater
competition and liberalisation: cheaper air fares,
lower energy costs and lower telephone charges are
just part of the result.
- Made public purchasing more open and established fairer competition
Improving the Internal Market in the 21st century
The Internal Market has greatly improved the environment
for both business and citizens across Europe. Nonetheless,
some trade barriers remain, often where common standards
are yet to be agreed and national legislation still
applies. The UK is working with the European Commission
to improve the Internal Market and ensure that it
responds to the new challenges presented by the developing
global economy. Current reforms aim to help the market
respond to the economic challenges of the new millennium
and make Europe the most advanced knowledge-based
economy in the world.
When
the Internal Market is not working
There
is no doubt that the creation of the Internal Market
has brought huge benefits to business and citizens
across Europe. Many British exporters and UK citizens
have taken advantage of the improved conditions to
expand their markets and provide their services in
Europe. However, whilst most do not encounter difficulties
trading in Europe, some do.
Enforce your rights
The
Country of Origin Principle known as Mutual Recognition
is the cornerstone of the Internal Market. In simple
terms, it means that products or services acceptable
in one Member State cannot be banned in any other
Member State except in exceptional circumstances.
In addition, skills and qualifications gained in one
Member State are recognised in all others. The mutual
recognition of national rules removes the need for
detailed agreements between Member States, except
in certain areas eg to protect health and ensure safety.
Directives setting common standards across the EU
have been passed where Member States have agreed that
legislation is required on health and safety grounds.
Products complying with the requirements can circulate
freely. Some exporters still experience problems because
some countries continue to have health and safety
concerns or because of a lack of understanding of
EU regulations by national authorities.
Information and Problem Solving
It
is in the interests of manufacturers, service providers
and consumers across Europe that the Internal Market
works as well as possible. To gather information about
how well the market is performing, the European Commission
has established a ‘Dialogue with Citizens and Business’.
The dialogue uses local European Information Centres
to provide EU-related information and advice to business
and obtain feedback about their experience of trading
in Europe. The Commission has also produced a series
of leaflets outlining citizens’ rights and set up
a network of SOLVIT Centres to try and resolve problems
of misapplication of EU Rules informally and Speedily
without the need for legal action. The Action Single
Market is the UK SOLVIT Centre and is based at the
Department of Trade and Industry.
The Action Single Market/UK SOLVIT Centre,
here to help
The Action Single Market/UK SOLVIT Centre.
The Action Single Market/UK SOLVIT Centre exists to improve the advice and help given
to businesses and citizens experiencing problems exercising
their Internal Market rights, and to investigate
complaints from other Member States wishing to do
so. Specifically, Action Single Market/UK SOLVIT Centre’s
role is to assist where the problems arise from a
misapplication of Internal Market rules. However,
the Unit also assists with problems relating to other
Cross Border matters and deals with some 100 substantive
cases a year, most of which are resolved to the satisfaction
of the UK customer.
SOLVIT:
Effective Problem Solving in the Internal Market
SOLVIT is a new EU-wide online database that links Co-ordination
Centres and allows cases to be rapidly passed on (securely)
to the SOLVIT Centre in the Member State where the
problem has arisen. It represents an alternative and
informal approach to problem solving and as such,
proposed solutions are not binding. Therefore, if
you are not satisfied with the solution proposed,
you can still initiate more formal proceedings.
As
SOLVIT is an Alternative Dispute Resolution Mechanism,
there are certain instances where the system will
not be used. These include where legal proceedings
are already underway; where deadlines under national
law need to be respected to maintain rights and where
the problem is a business-to-business or business
to consumer one. Examples of some of the problems
SOLVIT can deal with include voting rights, car registration,
border control, market access of goods, Recognition
of Professional Qualifications, public procurement,
VAT issues and establishment of a company. Further
details are available in the Commission Communication
SOLVIT website at (http://europa.en.int/comm/internal_market/solvit/index_en.htm
The majority of cases are resolved through direct discussion
with the country where the problem has arisen. The
process usually takes two to three months, though
it can be longer if the UK takes the complaint to
the European Commission.
Fighting
Your Corner In Europe
Action Single Market/UK SOLVIT Centre team provides
a free service which includes:
- Advice and information to businesses and citizens
- Taking up complaints with the appropriate national authority and,
where necessary, the European Commission
- Presentations to business about the work of Action Single Market
All enquiries are treated as commercially confidential.
The
service is designed to ensure that any company or
citizen can afford to take action to ensure their
product can compete fairly in any part of the Internal
Market. If you have a problem exercising your rights
in Europe, however trivial it might seem, we want
to know about it.
If your company is experiencing difficulties trading with
EU or EFTA countries in the Internal Market, contact
us today.
UK SOLVIT Centre/Action Single Market, Kingsgate House,
66-74 Victoria Street, London SW1E 6SW
Tel: 020 7215 4459/4481
Fax: 020 7215 4720
E-mail: asm@dti.gsi.gov.uk
Action Single Market/UK SOLVIT Centre can solve your
problem
Action Single Market/UK SOLVIT Centre aims to resolve your
problems in the quickest and most efficient way. In
most cases, we will do this informally through our
contacts in the relevant Member State. Occasionally,
however, we have to pursue a case formally through
the Commission.
Our first step is to gain a clear understanding of the issues
involved so that we can present your case to the appropriate
authorities as convincingly as possible. To get a
full picture of the situation, we may need to meet
you to talk through your case. This can be at your
own premises.
Once we understand your case, we will let you know if we
think there are genuine grounds for complaint. If
there are we will take the case forward on your behalf.
You will receive a written acknowledgement of your
complaint within five working days of telling us about
it, followed by a progress report within two to three
weeks. The progress report will let you know what
we can do and what we have achieved in our investigations
so far.
How
We Pursue Your Complaint
In resolving your case:
- We will approach the SOLVIT Co-ordination Centre in the Member State
concerned directly or by getting in touch with the
British Embassy there
- If that proves unsuccessful, we will put a case to the European
Commission.
- In accordance with Part II Schedule I of the Data Protection Act
1998, Action Single Market/UK SOLVIT Centre will
need your consent to disclose your details in order
to pursue your problems with the relevant authorities.
What
You Can Do To Strengthen Your Case
When presenting your complaint there are a number of steps
you can take which will help us to take the matter
forward more quickly. It will help us if you provide:
- A brief summary of the issue
- Any correspondence on the matter
- Any relevant documentation
- Any other supporting evidence
Don’t forget - all material you give us will be treated as
commercially confidential.
Taking your complaint further
A large majority of cases (around 80%), are resolved without
having to involve the commission. This is in part
because the Action Single Market team can call on
a wide network of expertise in presenting your case,
including:
- Technical experts
- Government legal services
- Specialists throughout Whitehall
- British Embassies throughout Europe
Complaining
through the European Commission
If
the bilateral approach proves unsuccessful, the Action
Single Market/UK SOLVIT Centre will help you to present
your case to the Commission and will monitor its progress.
It is possible that the Commission may pursue with
a formal infraction procedure. Outlined under the
EC Treaty, the infraction process involves a number
of stages in which the Commission writes to the Member
State concerned and acts as arbiter. Because the procedure
is formal, it can take some time to resolve individual
cases - even, in some of the worst cases, several
years. This can be frustrating, but the involvement
of the Commission can add considerable weight in fighting
your cause. The final step in such an investigation,
is taking the case to the European Court of Justice.
However, virtually all cases are resolved before they
reach this stage.
Getting
Others Involved
In some cases, a trade barrier affects an entire sector of
the economy. In these circumstances, it may be helpful
to involve the appropriate Trade Association or other
representative bodies. Most are happy to act as liaison
points with Action Single Market where a particular
issue is affecting a whole sector. Again, commercial
confidentiality will be fully respected in such cases.
Common Problem areas
Many of the cases referred to Action Single Market/UK SOLVIT
Centre focus on the same issues because there are
some areas where gaps remain in European law. Here
are some of the most common problem areas.
Public
procurement
Governments and other public authorities are major purchasers
of goods and services, accounting for more than £500
billion worth of business in the European Union each
year. European purchasing rules are intended to open
such contracts to cross-border competition and to
make sure that businesses across the EU find out about
government procurement opportunities. Details of tenders
are published on-line in the Official Journal of
the European Communities.
Unfortunately sometimes public authorities act unfairly.
If you think your company is being unjustly excluded
from bidding for a government contract, we will try
to make sure that you get the chance to compete on
equal terms in much the same way as we would deal
with any other case. You can also take action under
the EU’s Public Purchasing Remedies and Compliance
Directives, which give you the right to appeal to
national courts where there is discrimination. Information
about public procurement rules can be found at the
European
Procurement Service website. Guidance on the EC
rules is also available on the Office
of Government Commerce website.
Technical Standards Standards are specifications for goods
and services which are agreed by consensus and approved
by a recognised standardisation body. Usually they
are drafted by European or international standards
organisations at the instigation of industry or other
interested parties to enable access to wider markets
and to offer protection to the consumer.
While many standards and associated testing and certification
requirements have been harmonised at European or international
level, some have not. Surveys of business show that
national requirements remain one of the major obstacles
to trade within Europe. For advice about standards,
contact the British
Standards Institution. For information about standards
and technical regulations generally, including about
CE markings, see the DTI’s web pages on standards.
These include links to a number of other useful sites.
VAT
One area which causes frustration to a number of businesses
is the considerable delay they experience reclaiming
VAT paid up-front in another Member State. Bureaucratic
procedures mean that these delays can run into months,
even years. The Action Single Market/UK SOLVIT Centre
has experience of dealing with such problems and has
achieved notable successes in facilitating refunds
and in some cases recovering interest which has resulted
from delays in payment.
State
Aids
Member states, including the UK, can develop aid programmes
to support industry, but the European Commission has
considerable powers to monitor, control and restrict
the forms and levels of aid to ensure that it does
not distort, or threaten to distort competition.
If
you think you are losing out because of unfair government
subsidies to a rival in another Member State, get
in touch with the Action Single Market/UK SOLVIT Centre
team. We will try to establish whether the subsidy
has been approved by the Commission. Low pricing is
not, in itself, sufficient evidence of unlawful subsidy.
Nonetheless, if the Commission has not approved the
aid package, we can ask it to investigate formally
and if proven, order the recovery of the unlawful
aid with interest from the date granted.
Labelling
Goods on sale in the Internal Market must comply with a number
of compulsory labelling requirements. In addition,
some Member States use a variety of voluntary labelling
schemes, particularly relating to environmental issues.
All labels have to be readable and accurate and should
not mislead the consumer. Nonetheless, excessive labelling
requirements can impose additional costs on businesses
and because of this can constitute a barrier to trade.
If you believe that the labelling you are being asked
to provide goes beyond what is reasonable, contact
us and we will take up your case with the relevant
authorities.
The European Commission provides information about doing
business in Europe on its website. The site includes
advice on a number of these issues, including public
procurement and standards. For details see http://www.europa.eu.int/business
Useful contacts
Department
of Trade and Industry
Action Single Market
Kingsgate House
66-74 Victoria Street
LONDON SW1E 6SW
Tel: 020 7215 4212
Fax: 020 7215 4720
Email: asm@dti.gsi.gov.uk
You can find out more about the Single Market on the DTI’s website. General
information about Britain and Europe is available
at www.fco.gov.uk.
The
European Commission
The European Commission can also provide information about
the Single Market and advise companies about how to
contact their local European Information Centres.
The Commission has four offices in the UK:
|
8, Storey’s
Gate
London
SW1P 3 AT
Tel: 020 7973 1992
Fax: 020 7973 1900/10
|
Windsor House
9/15 Bedford Street
Belfast BT2 7EG
Tel: 02890240708
Fax: 02890248241
|
|
4 Cathedral
Road
Cardiff
CF1 9SG
Tel: 029 20895020
Fax: 029 20895035
|
9 Alva Street
Edinburgh
EH 2 4PH
Tel: 0131 225 2058
Fax: 0131 226 4105
|
For general information from the Commission, see www.europa.eu.int/business
EFTA
For information on the EFTA members of the Single Market
(Norway, Iceland and Liechtenstein) contact:
EFTA Secretariat
74 rue de Treves
B-1040 Brussels
Tel: (+ 32 2) 286 1711
Fax: (+ 32 2) 286 1750
Other
useful numbers
Small Business Service (European Union and International
Section)
Robert
Kelly
Tel. 020 7215 0275/
Email: robert.kelly@sbs.gsi.gov.uk
Business Links Signpost Line, Tel. 0845 6000 787 will put
businesses in touch with their nearest Business Link.
Trade
Partners UK, Tel. 020 7215 5444/5445 will put
businesses in touch with trade promotion experts within
DTI.
The Office
of Government Commerce, Tel. 020 7211 1334/1335
can advise about the EC procurement rules.
The British
Standards Institution,Tel. 020 8996 9001 can advise
about standards.
Last updated 24 April 2004
