1) In 1990, the company HVN Ltd wanted to export its products in different countries in Europe (Italy, France, and Germany). In this year there wasn’t a common market. So, the company had to pay customs duties for its importations in Europe (in our case in Italy . But, because EU hadn’t a free circulation of goods, it had to pay also, some charges like restrictions quantitative, qualitative, quotas, etc, when it wants to enter in each country which belong to EU. Moreover, it had to adapt its products to the market the countries didn’t have the same norms and currency (not the same exchange rate for the European countries so it can lost some money).
Since the Treaty of Maastricht in 1993, and according to the article 30 of the TFEU, these charges have been prohibited because, now, there is an internal market with the free circulation of goods, and the same currency (same exchange rate for all European countries). So the company only has to pay one time to export its products to all the countries of EU (no quotas, no restrictions, no custom duties, etc…).
We think it is better for it, to make a subsidiary in Europe because it shouldn’t have the any custom duty to enter in Europe and it doesn’t lost money nether.
2) According to the article 34 of TFEU quantitative restrictions are prohibited so France can’t limited the importation of red wine. So GAMARRA has to sue at the French Trade Court.
3) The German employees have to work 35h because the subsidiary is in France so its employees have to respect the French labor law because the French law surpass the Germany law ( 42h pers week) because a EU decision apply only in the concern country. The European directive is more important than the national laws so in 2012 the employees will be able to work 48h pers