Summary
Parties
Subject of the case
Grounds
Decision on costs
Operative part
Keywords
COMMON CUSTOMS TARIFF - COMMUNITY TARIFF QUOTAS - FROZEN BEEF AND VEAL - POWER OF MANAGEMENT OF MEMBER STATES - APPOINTMENT OF NATIONAL SHARES - PERSONS CONCERNED - CONCEPT - UNDERTAKINGS BENEFITING FROM THE SPECIAL SYSTEM FOR IMPORTATION OF FROZEN BEEF AND VEAL INTENDED FOR PROCESSING - INCLUSION
( COUNCIL REGULATION NO 3063/78 , ART . 3 ( 1 ))
Summary
ANY METHODS OF ALLOCATION LAID DOWN BY A COMPETENT NATIONAL AUTHORITY , WHICH INVOLVE INCLUDING UNDERTAKINGS WHICH BENEFIT FROM THE SYSTEM CONTAINED IN ARTICLE 14 ( 1 ) ( B ) OF REGULATION NO 805/68 OF THE COUNCIL , AS AMENDED BY COUNCIL REGULATION NO 425/77 , AMONGST THE ' ' PERSONS CONCERNED ' ' , WHO ARE REFERRED TO IN THE PRIVISIONS OF ARTICLE 3 ( 1 ) OF COUNCIL REGULATION NO 3063/78 OPENING , ALLOCATING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR FROZEN BEEF AND VEAL , ARE COMPATIBLE WITH THOSE PROVISIONS , EVEN IF THEY RESULT IN A CORRESPONDING REDUCTION IN OTHER IMPORTERS ' SHARES IN THE ALLOCATION OF THE QUOTA IN QUESTION .
Parties
IN CASE 124/79
REFERENCE TO THE COURT UNDER ARTICLE 177 OF THE EEC TREATY BY THE COLLEGE VAN BEROEP VOOR HET BEDRIJFSLEVEN ( ADMINISTRATIVE COURT OF LAST INSTANCE IN MATTERS OF TRADE AND INDUSTRY ), THE HAGUE , FOR A PRELIMINARY RULING IN THE ACTION PENDING BEFORE THAT COURT BETWEEN
J . A . VAN WALSUM B.V ., HAVING ITS REGISTERED OFFICE IN ROTTERDAM
AND
PRODUKTSCHAP VOOR VEE EN VLEES ( THE NETHERLANDS CATTLE AND MEAT INTERVENTION BOARD ), HAVING ITS OFFICE AT RIJSWIJK ,
Subject of the case
ON THE INTERPRETATION OF ARTICLE 3 ( 1 ) OF COUNCIL REGULATION ( EEC ) NO 3063/78 OF 18 DECEMBER 1978 OPENING , ALLOCATING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR FROZEN BEEF AND VEAL FALLING WITHIN SUBHEADING 02.01 A II ( B ) OF THE COMMON CUSTOMS TARIFF ( 1979 ),
Grounds
1 BY ORDER OF 31 JULY 1979 , WHICH WAS RECEIVED AT THE COURT ON 6 AUGUST 1979 , THE COLLEGE VAN BEROEP VOOR HET BEDRIFJSLEVEN REFERRED TO THE COURT FOR A PRELIMINARY RULING UNDER ARTICLE 177 OF THE EEC TREATY A QUESTION ON THE INTERPRETATION OF ARTICLE 3 OF COUNCIL REGULATION NO 3063/78 OF 18 DECEMBER 1978 OPENING , ALLOCATING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR FROZEN BEEF AND VEAL FALLING WITHIN SUBHEADING 02.01 A II ( B ) OF THE COMMON CUSTOMS TARIFF FOR THE YEAR 1979 ( OFFICIAL JOURNAL , L 366 , P . 6 )
2 IT APPEARS FROM THE FILE THAT , IN THE CONTEXT OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ( GATT ), THE COMMUNITY HAS AGREED TO OPEN , AT A RATE OF DUTY OF 20 % , AN ANNUAL COMMUNITY TARIFF QUOTA FOR THE IMPORTATION OF BEEF AND VEAL FROM NON-MEMBER COUNTRIES WHICH HAVE SUBSCRIBED TO GATT ( SUBHEADING 02.01 A II ( B ) OF THE COMMON CUSTOMS TARIFF ). THE QUOTA IS ALLOCATED EACH YEAR BY THE COMMUNITY AMONGST THE MEMBER STATES , A SINGLE SUB-QUOTA BEING FIXED FOR THE BENELUX COUNTRIES WHICH RE-ALLOCATE IT AMONGST THEMSELVES . THE QUOTA ALLOCATED TO THE BENELUX COUNTRIES FOR 1979 BY REGULATION NO 3063/78 AMOUNTS TO A TOTAL OF 4 240 TONNES OF WHICH 2 756 TONNES ARE ALLOTTED TO THE NETHERLANDS UNDER AN INTERNAL SCALE OF APPORTIONMENT BETWEEN THE BENELUX COUNTRIES .
3 BY DECISION OF 11 JULY 1979 THE PRODUKTSCHAP VOOR VEE EN VLEES , WHICH IS RESPONSIBLE IN THE NETHERLANDS FOR THE ALLOCATION OF THE NATIONAL QUOTA , LAID DOWN A SCALE OF APPORTIONMENT OF THE QUOTA AMONGST THE UNDERTAKINGS CONCERNED . ON THAT OCCASION , AS IN PREVIOUS YEARS , IT DECIDED THAT THE ALLOCATION WOULD BE MADE IN PROPORTION TO THE AVERAGE IMPORTS OF BEEF AND VEAL TAKEN INTO ACCOUNT AND EFFECTED IN THE PERIOD OF THREE CALENDAR YEARS IMMEDIATELY PRECEDING THE YEAR IN QUESTION . FOR THAT PURPOSE THE PRODUKTSCHAP REGARDS AS IMPORTS OF BEEF AND VEAL ONLY THOSE AMOUNTS WHICH ARE SUBJECT TO A FULL OR PARTIAL LEVY OR FOR WHICH A COMMUNITY QUOTA HAS BEEN OPENED . IMPORTS FOR WHICH THE LEVY HAS BEEN TOTALLY SUSPENDED ARE NOT TAKEN INTO ACCOUNT .
4 BY ITS DECISION OF 11 JULY 1979 THE PRODUKTSCHAP ALSO INCLUDED AMONGST THE IMPORTS OF MEAT TAKEN INTO ACCOUNT FOR THE PURPOSE OF DIVIDING THE QUOTA IMPORTS WHICH HAD BEEN EFFECTED ON THE BASIS OF ARTICLE 14 ( 1 ) ( B ) OF REGULATION NO 805/68 OF THE COUNCIL OF 27 JUNE 1968 AS AMENDED BY ARTICLE 3 OF COUNCIL REGULATION NO 425/77 OF 14 FEBRUARY 1977 ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1968 ( I ), P . 187 , AND OFFICIAL JOURNAL L 61 , P . 1 RESPECTIVELY ). THAT PROVISION PROVIDES FOR A TOTAL OR PARTIAL SUSPENSION OF LEVY FOR FROZEN MEAT INTENDED FOR THE PROCESSING INDUSTRY FOR THE MANUFACTURE OF CERTAIN PRESERVED FOODS . THE AMOUNTS IMPORTED UNDER THAT PROVISION WERE TAKEN INTO ACCOUNT BY THE PRODUKTSCHAP BY REASON OF THE FACT THAT , DURING THE PERIOD UNDER CONSIDERATION , THEY HAD BENEFITED ONLY FROM A PARTIAL SUSPENSION OF LEVY .
5 THE APPELLANT IN THE MAIN ACTION CONSIDERED ITSELF TO HAVE BEEN ADVERSELY AFFECTED BY THAT NEW METHOD OF CALCULATION ADOPTED BY THE PRODUKTSCHAP . IT MAINTAINED THAT SINCE THAT NEW SCHEME RESERVED A SIGNIFICANT PART OF THE QUOTA TO THE PROCESSING INDUSTRY THE OPPORTUNITIES FOR IMPORTING AT THE REDUCED RATE OF DUTY OPEN TO IMPORTERS WHICH DO NOT CARRY ON PROCESSING WERE SIGNIFICANTLY REDUCED . SINCE THE ALLOCATION IS CARRIED OUT IN PROPORTION TO IMPORTS IN PREVIOUS TRADING YEARS THAT METHOD WOULD HAVE THE RESULT OF GRADUALLY INCREASING THE SHARE OF THE PROCESSING INDUSTRY TO THE PREJUDICE OF IMPORTERS SO AS COMPLETELY TO EXCLUDE THE LATTER IN THE LONG TERM .
6 DURING THE PROCEDURE BEFORE THE NATIONAL COURT THE QUESTION AROSE WHETHER THE PRODUKTSCHAP ' S DECISION TO INCLUDE IMPORTS COVERED BY ARTICLE 14 ( 1 ) ( B ) OF REGULATION NO 425/77 IN THE REFERENCE FIGURES FOR THE ALLOCATION OF THE NATIONAL GATT QUOTA WAS , IN THOSE CIRCUMSTANCES , INCOMPATIBLE WITH ARTICLE 3 ( 1 ) OF COUNCIL REGULATION NO 3063/78 WHICH OBLIGES MEMBER STATES TO GUARANTEE ALL PERSONS CONCERNED ESTABLISHED WITHIN THEIR TERRITORIES FREE ACCESS TO THE QUOTA SHARES ALLOCATED TO THEM .
7 ACCORDING TO THE COLLEGE VAN BEROEP , THE COMPATIBILITY OF THE PRODUKTSCHAP ' S DECISION WITH COMMUNITY LAW IS SERIOUSLY IN DOUBT . THE COLLEGE THEREFORE DECIDED TO SUSPEND THE SAID DECISION , AD INTERIM , SINCE IT WAS PROVED THAT IT AFFECTED THE INTERESTS OF THE APPELLANT , AND TO MAKE A REFERENCE TO THE COURT OF JUSTICE UNDER ARTICLE 177 OF THE EEC TREATY BY REQUESTING IT TO GIVE A PRELIMINARY RULING ON THE FOLLOWING QUESTION :
' ' IS IT INCOMPATIBLE WITH THE PROVISION IN ARTICLE 3 ( 1 ) OF COUNCIL REGULATION ( EEC ) NO 3063/78 OF 18 DECEMBER 1978 OPENING , ALLOCATING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR FROZEN BEEF AND VEAL FALLING WITHIN SUBHEADING 02.01 A II ( B ) OF THE COMMON CUSTOMS TARIFF ( 1979 ), OR INDEED WITH THE PRINCIPLE WHICH UNDERLIES THAT PROVISION , AND WHICH IN ACCORDANCE WITH THAT PROVISION IS NORMALLY FORMULATED IN THE COUNCIL REGULATIONS IN WHICH THE GATT QUOTAS ARE OPENED ANNUALLY , OR WITH ANY OTHER PROVISION OF THE TREATY OR WITH ANY OTHER BINDING COMMUNITY RULE OR LEGAL PRINCIPLE , FOR THE NATIONAL AUTHORITY , IN THE ALLOCATION OF THE GATT QUOTA , THE ADMINISTRATION OF WHICH IS ENTRUSTED TO THAT AUTHORITY , TO USE METHODS WHEREBY :
( A ) ENTITLEMENT TO A CONSIDERABLE PART OF THE GATT QUOTA IS RESERVED TO THE PROCESSING INDUSTRY IF AND SO FAR AS THAT INDUSTRY HAS IMPORTED FROZEN BEEF AND VEAL IN APPLICATION OF THE FAVOURABLE SYSTEM CONTAINED IN ARTICLE 14 ( 1 ) ( B ) OF REGULATION ( EEC ) NO 805/68 OF THE COUNCIL AS LAST AMENDED ; AND
( B)TRADERS TO WHOM THIS FAVOURABLE SYSTEM DOES NOT APPLY ARE DENIED ACCESS TO A CONSIDERABLE PART OF THE GATT QUOTA IN THE EVENT OF NO SHARE IN THAT CONSIDERABLE PART OF THE GATT QUOTA BEING ALLOCATED TO THEM BY THE NATIONAL AUTHORITY?
8 IN TERMS OF ARTICLE 3 ( 1 ) OF REGULATION NO 3063/78 ' ' THE MEMBER STATES SHALL TAKE ALL APPROPRIATE STEPS TO GUARANTEE ALL PERSONS CONCERNED ESTABLISHED WITHIN THEIR TERRITORIES FREE ACCESS TO THE QUOTA SHARES ALLOCATED TO THEM ' ' .
9 IT APPEARS FROM THE SECOND AND FOURTH RECITALS IN THE PREAMBLE THAT THAT PROVISION HAS THE AIM OF ENSURING ' ' EQUAL AND CONTINUOUS ACCESS TO THE QUOTA . . . FOR ALL PERSONS CONCERNED ' ' WHILE LEAVING ' ' TO EACH MEMBER STATE THE CHOICE OF A MANAGEMENT SYSTEM FOR ITS SHARE OF THE QUOTA SO THAT MAY ENSURE AN ALLOCATION WHICH IS APPROPRIATE FROM AN ECONOMIC VIEWPOINT ' ' .
10 THE SYSTEM PRACTISED BY THE NETHERLANDS PRODUKTSCHAP , WHICH CONSISTS IN TAKING IMPORTS CARRIED OUT IN THE COURSE OF PREVIOUS TRADING YEARS AS A REFERENCE CRITERION , SATISFIES , IN PRINCIPLE , THOSE REQUIREMENTS IN THAT IT GUARANTEES BOTH CONTINUITY IN THE FLOW OF IMPORTS AND THE ADJUSTMENT OF SUPPLIES TO ECONOMIC NEEDS .
11 IN FACT , THE COMPLAINT OF THE APPELLANT IN THE MAIN ACTION RELATES EXCLUSIVELY TO THE FACT THAT AS FROM THE 1979 SEASON THE PRODUKTSCHAP HAS INCLUDED IMPORTERS BENEFITING FROM THE SYSTEM OF IMPORTATION LAID DOWN IN ARTICLE 14 ( 1 ) ( B ) OF REGULATION NO 805/68 , AS AMENDED BY REGULATION NO 425/77 , AMONGST THE UNDERTAKINGS INVITED TO TAKE PART IN THE ALLOCATION OF THE QUOTA IN QUESTION .
12 IT DOES NOT APPEAR , HOWEVER , THAT , BY THAT EXPANSION , THE PRODUKTSCHAP HAS UNDULY RESTRICTED FREE ACCESS BY OTHER PERSONS CONCERNED TO THE QUOTA IN QUESTION . INDEED , IT APPEARS FROM THE EXPLANATIONS PROVIDED IN THE COURSE OF THE PROCEEDINGS THAT THE TAKING INTO ACCOUNT OF IMPORTS CARRIED OUT UNDER THE SAID PROVISION IS DUE TO THE FACT THAT THOSE IMPORTS ARE AT PRESENT SUBJECT TO LEVY , ALBEIT AT A REDUCED RATE . CONTRARY TO WHAT HAS BEEN CONTENDED BY THE APPELLANT IN THE MAIN ACTION , THAT EXPANSION OF THE NUMBER OF PERSONS BENEFITING FROM THE QUOTA DOES NOT HAVE THE RESULT , EVEN IN THE LONG TERM , OF EXCLUDING IMPORTERS WHO DO NOT SATISFY THE CONDITIONS FOR ACCESS TO THE BENEFIT OF THE SPECIAL SYSTEM OF IMPORTATION PROVIDED FOR IN ARTICLE 14 ( 1 ) ( B ) OF REGULATION NO 805/68 . IF ANY RELATIVE DISADVANTAGE TO THE CATEGORY OF IMPORTERS TO WHICH THE APPELLANT IN THE MAIN ACTION BELONGS WERE TO ARISE , THAT DISADVANTAGE WOULD ONLY BE THE CONSEQUENCE OF EXTENDING THE BENEFIT OF PARTICIPATION IN THE GATT QUOTA TO A CATEGORY OF IMPORTERS WHO UNQUESTIONABLY COME WITHIN THE CONCEPT OF ' ' PERSONS CONCERNED ' ' REFERRED TO IN ARTICLE 3 ( 1 ) OF REGULATION NO 3063/78 AND WHO HAVE ACCORDINGLY A LEGITIMATE INTEREST IN BEING INCLUDED IN THE ALLOCATION OF THE QUOTA .
13 IT APPEARS THEREFORE THAT , ACCORDING TO THE TEST LAID DOWN BY THE COURT IN ITS JUDGMENT OF 23 JANUARY 1980 IN CASE 35/79 GROSOLI AND OTHERS ( 1980 ) ECR , THE PRODUKTSCHAP DID NOT , BY ITS DECISION OF 11 JULY 1979 , GO OUTSIDE THE BOUNDS OF THE POWER OF MANAGEMENT LEFT TO THE MEMBER STATE CONCERNED .
14 IT DOES NOT APPEAR NECESSARY TO CONSIDER SEPARATELY THE ARGUMENT BASED BY THE APPELLANT IN THE MAIN ACTION ON ARTICLE 40 ( 3 ) OF THE EEC TREATY IN TERMS OF WHICH THE COMMON ORGANIZATION OF A MARKET ' ' SHALL EXCLUDE ANY DISCRIMINATION BETWEEN PRODUCERS OR CONSUMERS WITHIN THE COMMUNITY ' ' . INDEED , AS MOREOVER THE APPELLANT ITSELF RECOGNIZES , ARTICLE 3 OF REGULATION NO 3063/78 AMOUNTS ONLY TO A SPECIFIC EXPRESSION OF THAT PRINCIPLE IN THE LIGHT OF THE PARTICULAR FACTS OF THE ALLOCATION OF THE QUOTA IN QUESTION , REGARD BEING HAD TO THE OBJECTIVES OF ECONOMIC POLICY WHICH ARE PURSUED IN THE CONTEXT OF THE COMMON ORGANIZATION OF THE MARKET IN BEEF AND VEAL .
15 THE ANSWER TO THE QUESTION SUBMITTED SHOULD THEREFORE BE THAT ANY METHODS OF ALLOCATION LAID DOWN BY A COMPETENT NATIONAL AUTHORITY , WHICH INVOLVE INCLUDING UNDERTAKINGS WHICH BENEFIT FROM THE SYSTEM CONTAINED IN ARTICLE 14 ( 1 ) ( B ) OF REGULATION NO 805/68 OF THE COUNCIL , AS AMENDED BY COUNCIL REGULATION NO 425/77 , AMONGST THE ' ' PERSONS CONCERNED ' ' , WHO ARE REFERRED TO IN THE PROVISIONS OF ARTICLE 3 ( 1 ) OF COUNCIL REGULATION NO 3063/78 OF 18 DECEMBER 1978 OPENING , ALLOCATING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR FROZEN BEEF AND VEAL FALLING WITHIN SUBHEADING 02.01 A II ( B ) OF THE COMMON CUSTOMS TARIFF ( 1979 ), ARE COMPATIBLE WITH THOSE PROVISIONS , EVEN IF THEY RESULT IN A CORRESPONDING REDUCTION IN OTHER IMPORTERS ' SHARES IN THE ALLOCATION OF THE QUOTA IN QUESTION .
Decision on costs
16 THE COSTS INCURRED BY THE COMMISSION OF THE EUROPEAN COMMUNITIES , WHICH HAS SUBMITTED OBSERVATIONS TO THE COURT , ARE NOT RECOVERABLE .
AS THESE PROCEEDINGS ARE , IN SO FAR AS THE PARTIES TO THE MAIN ACTION ARE CONCERNED , IN THE NATURE OF A STEP IN THE ACTION PENDING BEFORE THE NATIONAL COURT , THE DECISION ON COSTS IS A MATTER FOR THAT COURT .
Operative part
ON THOSE GROUNDS ,
THE COURT ( SECOND CHAMBER ),
IN ANSWER TO THE QUESTIONS SUBMITTED TO IT BY THE PRESIDENT OF THE COLLEGE VAN BEROEP VOOR HET BEDRIJFSLEVEN BY ORDER OF 31 JULY 1979 , HEREBY RULES :
ANY METHODS OF ALLOCATION LAID DOWN BY A COMPETENT NATIONAL AUTHORITY , WHICH INVOLVE INCLUDING UNDERTAKINGS WHICH BENEFIT FROM THE SYSTEM CONTAINED IN ARTICLE 14 ( 1 ) ( B ) OF REGULATION NO 805/68 OF THE COUNCIL , AS AMENDED BY COUNCIL REGULATION NO 425/77 , AMONGST THE ' ' PERSONS CONCERNED ' ' , WHO ARE REFERRED TO IN THE PROVISIONS OF ARTICLE 3 ( 1 ) OF COUNCIL REGULATION NO 3063/78 OF 18 DECEMBER 1978 OPENING , ALLOCATING AND PROVIDING FOR THE ADMINISTRATION OF A COMMUNITY TARIFF QUOTA FOR FROZEN BEEF AND VEAL FALLING WITHIN SUBHEADING 02.01 A II ( B ) OF THE COMMON CUSTOMS TARIFF ( 1979 ), ARE COMPATIBLE WITH THOSE PROVISIONS , EVEN IF THEY RESULT IN A CORRESPONDING REDUCTION IN OTHER IMPORTERS ' SHARES IN THE ALLOCATION OF THE QUOTA IN QUESTION .
Full & Egal Universal Law Academy