Joined Cases C-480/00 to C-482/00, C-484/00, C-489/00 to C-491/00 and C‑497/00 to C-499/00

Azienda Agricola Ettore Ribaldi and Others

v

Azienda di Stato per gli interventi nel mercato agricolo (AIMA) and Others

(References for a preliminary ruling from the Tribunale amministrativo regionale del Lazio)

(Agriculture – Common organisation of the markets – Milk and milk products – Additional levy on milk – Regulations (EEC) Nos 3950/92 and 536/93 – Reference quantities – Ex post correction – Notification of producers)

Summary of the Judgment

1. Member States – Obligations – Implementation of Community law – Application of the procedural and substantive rules of national law – Conditions

(EC Treaty, Art. 5 (now Art. 10 EC))

(Council Regulation No 3950/92, Art. 10; Commission Regulation No 536/93, Arts 3 and 4)

3. Agriculture – Common organisation of the markets – Milk and milk products – Additional levy on milk – Regulations Nos 3950/92 and 536/93 – Reference quantities – Ex post correction and recalculation of levies after the final date for payment of those levies – Whether permissible – Breach of the principle of the protection of legitimate expectations – None

(Council Regulation No 3950/92, Arts 1 and 4; Commission Regulation No 536/93, Arts 3 and 4)

4. Agriculture – Common organisation of the markets – Milk and milk products – Additional levy on milk – Regulations Nos 3950/92 and 536/93 – Reference quantities – Ex post correction – Obligation to notify producers – The national court to determine whether that obligation has been fulfilled, having regard to the principle of legal certainty

(Council Regulation No 3950/92; Commission Regulation No 536/93)

1. According to the general principles on which the Community is based and which govern relations between the Community and the Member States, it is for the latter, under Article 5 of the EC Treaty (now Article 10 EC), to ensure that Community rules are implemented within their territories. In so far as Community law, including its general principles, does not include common rules to that effect then, when the national authorities implement Community rules, they are to act in accordance with the procedural and substantive rules of their own national law.

Nevertheless, when adopting measures to implement Community legislation, national authorities must exercise their discretion in compliance with the general rules of Community law, which include the principles of proportionality, legal certainty and the protection of legitimate expectations.

(see paras 42-43)

2. The purpose of the system of the additional levy on milk is to re-establish, by limiting milk production, the balance between supply and demand in the milk market, which is characterised by structural surpluses. This measure, therefore, is within the ambit of the objectives of rational development of milk production and, by contributing to a stabilisation of the income of the agricultural community affected, that of ensuring a fair standard of living for the agricultural community.

It follows that the additional levy is not to be regarded as a penalty analogous to those provided for under Articles 3 and 4 of Regulation No 536/93 laying down detailed rules on the application of the additional levy on milk and milk products. The additional levy on milk amounts to a restriction arising from market policy rules or structural policy.

Moreover, as Article 10 of Regulation No 3950/92 establishing an additional levy in the milk and milk products sector clearly shows, the additional levy is to be considered to be intervention to stabilise agricultural markets and is to be used to finance expenditure in the milk sector. It follows that, apart from its obvious aim of requiring milk producers to observe the reference quantities allocated to them, the additional levy has an economic objective too, in that it is intended to bring to the Community the funds necessary for disposal of milk produced by producers in excess of their quotas.

(see paras 57-59)

3. On a proper construction of Articles 1 and 4 of Regulation No 3950/92 establishing an additional levy in the milk and milk products sector and of Articles 3 and 4 of Regulation No 536/93 laying down detailed rules on the application of the additional levy on milk and milk products, it is not contrary to those provisions for a Member State, after checks have been carried out, to correct the individual reference quantities allocated to each producer and, after the unused reference quantities have been reallocated, to recalculate in consequence the additional levies payable, after the final date for payment of those levies for the milk marketing year concerned.

First, in so far as the individual reference quantity to which a producer can lay claim actually corresponds to the quantity of milk marketed by that producer during the reference year, that producer, who is as a rule aware of how much milk he has produced, can have no legitimate expectation that an inaccurate reference quantity will be continued.

Second, no legitimate expectation can be entertained as to the continuation of a situation which is plainly unlawful in the light of Community law, namely, the failure to apply the arrangements for the additional levy on milk. Milk producers in the Member States cannot legitimately expect, 11 years after the system was introduced, to be able to go on producing milk without limit.

(see paras 66-68, operative part 1)

4. Regulation No 3950/92 establishing an additional levy in the milk and milk products sector and Regulation No 536/93 laying down detailed rules on the application of the additional levy on milk and milk products are to be interpreted as requiring that the original allocation of individual reference quantities and any later alteration to them should be notified to the producers concerned by the competent national authorities.

The principle of legal certainty demands that that communication should be of such a nature as to give the natural or legal persons concerned all information relating to the original allocation of their individual reference quantity or later alteration to it. It is for the national court to determine, on the basis of the facts before it, whether that is so in the cases in the main proceedings.

(see para. 87, operative part 2)

JUDGMENT OF THE COURT (Sixth Chamber) 25 March 2004 (1)

(Agriculture – Common organisation of the markets – Milk and milk products – Additional levy on milk – Regulations (EEC) Nos 3950/92 and 536/93 – Reference quantities – Ex post correction – Notification of producers)

In Joined Cases C-480/00 to 482/00, C-484/00, C-489/00 to C-491/00 and C-497/00 to C-499/00,

REFERENCES to the Court under Article 234 EC by the Tribunale amministrativo regionale del Lazio (Italy) for a preliminary ruling in the proceedings pending before that court between

intervener:

on the interpretation and validity of Articles 1, 2 and 4 of Council Regulation (EEC) No 3950/92 of 28 December 1992 establishing an additional levy in the milk and milk products sector (OJ 1992 L 405, p. 1), and of Articles 3 and 4 of Commission Regulation (EEC) No 536/93 of 9 March 1993 laying down detailed rules on the application of the additional levy on milk and milk products (OJ 1993 L 57, p. 12),

THE COURT (Sixth Chamber),,

composed of: V. Skouris (Rapporteur), acting for the President of the Sixth Chamber, C. Gulmann, J.-P. Puissochet, F. Macken and N. Colneric, Judges,

Advocate General: P. Léger,

after considering the written observations submitted on behalf of:

after hearing the oral observations of Azienda Agricola Ettore Ribaldi, represented by E. Ermondi, of D. Buttiglione and Others, represented by G.R. Notarnicola and M. de Stasio, of Azienda Agricola Ettore Raffa and Others, C.Balestreri and N.Musini, acting for Azienda Agricola Tenuta di Fassia, represented by M. Condinanzi and B. Nascimbene, of Azienda Agricola ‘Corte della Piacentine’ and Others, represented by R. Corradi and M. Tomaselli, avvocato, of Cesare e Michele Filippi ss and Cooperativa Produttori Latte della Lessinia arl, represented by M. Aldegheri, of Azienda Agricola Simone e Stefano Gonal di Gonzato, represented by F. Volpe, F. Gabrieli and F. Piazza, avvocato, of Azienda Agricola Gianluigi Cerati e Maria Ceriali ss, represented by S. Bernocchi, of the Italian Government, represented by O. Fiumara, of the Greek Government, represented by G. Kanellopoulos, acting as Agent, of the Council, represented by F. Ruggeri Laderchi, and of the Commission, represented by C. Cattabriga, acting as Agent, at the hearing on 12 December 2002,

after hearing the Opinion of the Advocate General at the sitting on 8 May 2003,

gives the following

‘For seven new consecutive periods of twelve months commencing on 1 April 1993, an additional levy shall be payable by producers of cows’ milk on quantities of milk or milk equivalent delivered to a purchaser or sold directly for consumption during the 12-month period in question in excess of a quantity to be determined.

The levy shall be 115% of the target price for milk.’

‘(1)

In accordance with a decision of the Member State, the contribution of producers towards the levy payable shall be established, after the unused reference quantities have been reallocated or not, either at the level of the purchaser, in the light of the overrun remaining after unused reference quantities have been allocated in proportion to the reference quantities of each producer, or at national level, in the light of the overrun in the reference quantity of each individual producer.

…

(4)

‘(1)

(2)

Where the individual reference quantities undergo a definitive change, the quantities referred to in Article 3 shall be adjusted in accordance with the procedure laid down in Article 11.

…’

‘The levy shall be considered as intervention to stabilise agricultural markets and shall be used to finance expenditure in the milk sector.’

‘(1)

…

(2)

Where that time-limit is not observed, the purchaser shall be liable to a penalty equal to the amount of the levy due for a 0.1% overrun on the quantities of milk and milk equivalent delivered to them by producers. Such penalty may not exceed ECU 20 000.

(3)

(4)

Where the time-limit for payment is not met, the sums due shall bear interest at a rate per annum fixed by the Member State and which shall not be lower than the rate of interest which the latter applies for the recovery of wrongly paid amounts.’

‘(1)

…

(2)

Where that time-limit is not observed, the producer shall be liable to the levy on all the quantities of milk and milk equivalent sold directly in excess of his reference quantity or, where there is no overrun, to a penalty equal to the amount of levy due for a 0.1 % overrun of his reference quantity. Such penalty may not exceed ECU 1 000.

Where a declaration is not submitted before 1 July, the second paragraph of Article 5 of Regulation … No 3950/92 shall apply 30 days after the Member State has served notice.

(3)

(4)

Where the time-limit for payment is not met, the sums due shall bear interest at a rate per annum fixed by the Member State …’

‘(1)

…

…’

‘(1)

…

(3)

…’

First question (C-480/00 to C-482/00, C-484/00, C-489/00 to C-491/00 and C-497/00 to C-499/00)

‘May the provisions contained in Articles 1 and 4 of … Regulation … No 3950/92 … and Articles 3 and 4 of … Regulation … No 536/93 be interpreted as meaning that it is possible, in cases of administrative or judicial challenge to the relevant measures, to derogate from the time-limits prescribed for the allocation of quotas and the operation of adjustments and levies?’

Second question (C-480/00 to C-482/00, C-484/00, C-489/00 to C-491/00 and C-497/00 to C-499/00)

‘If not, are the provisions contained in Articles 1 and 4 of … Regulation … No 3950/92 … and Articles 3 and 4 of … Regulation … No 536/93 … valid, in the light of Article 33 EC (formerly Article 39 of the EC Treaty), in so far as they do not provide that derogations may be made from the periods they prescribe for the allocation of individual reference quantities and for the operation of adjustments and levies, in cases of administrative or judicial challenge to those measures?’

Third question (C-480/00 to C-482/00, C-484/00, C-489/00 to C-491/00 and C-497/00 to C-499/00)

‘Are Regulations … Nos 3950/92 and 536/93 to be interpreted as meaning that the application of the system introduced by that legislation excludes the allocation and official notification to producers of individual reference quantities or that it excludes the official redistribution among its producers by the Member State of the global quantity which that State is guaranteed?’

Fourth question (C-480/00 to C-482/00, C-484/00, C-489/00 to C-491/00 and C-497/00 to C-499/00)

‘May Articles 3 and 4 of Regulation … No 3950/92 be interpreted as meaning that the Member State need not necessarily give official notification of individual reference quantities to producers or that it may allocate reference quantities to those producers without notifying them individually?’

Fifth question (C-484/00)

‘May Regulations … Nos 3950/92 and 536/93 be interpreted as meaning that the individual reference quantity need not necessarily be notified separately to each producer, but may be communicated in other ways such as the publication of bulletins?’

Sixth question (C-480/00, C-490/00 and C-491/00)

‘May Article 2(1) of Regulation … 3950/92 and Article 3(3) of Regulation … No 563/93 be interpreted as leaving the Member States free to determine privileged categories of producers who must be compensated in priority to others?’

Seventh question (C-481/00)

‘May Regulations … Nos 3950/92 and 536/93 be interpreted as permitting Member States to determine privileged categories of producers who must be compensated in priority to others, in particular by placing the “disadvantaged” areas in a secondary position in relation to mountain areas?’

Observations submitted to the Court

The Court’s answer

The principle of legal certainty demands that that communication should be of such a nature as to give the natural or legal persons concerned all information relating to the original allocation of their individual reference quantity or later alteration to it. It is for the national court to determine, on the basis of the facts before it, whether that is so in the cases in the main proceedings.

On those grounds,

THE COURT (Sixth Chamber),

in answer to the questions referred to it by the Tribunale amministrativo regionale del Lazio by judgments of 6 July 2000, hereby rules:

Skouris

Gulmann

Puissochet

Macken

Colneric

Delivered in open court in Luxembourg on 25 March 2004.

R. Grass

V. Skouris

Registrar

President