COMMISSION RECOMMENDATION of 19 July 1974 to the French Republic concerning the adjustment of the State monopoly of a commercial character in matches vis-à-vis the new Member States (74/430/EEC)

I. There exists in France a monopoly for the importation of matches which constitutes a State monopoly of a commercial character within the meaning of Article 37 of the EEC Treaty. The State alone may import matches, and has delegated its powers to the "Service d'exploitation industrielle des tabacs et des allumettes"(SEITA). On the other hand there are no restrictions on the marketing of matches, whether at the wholesale or at the retail level. Law No 72- 1069 of 4 December 1972 and Decree No 72-1253 of 29 December 1972, which lays down implementing measures, modified this monopoly as regards the original Member States of the European Communities.

II. Under Article 44 of the Act concerning the Conditions of Accession and the Adjustments to the Treaties, the new Member States are progressively to adjust their State monopolies of a commercial character within the meaning of Article 37 (1) of the EEC Treaty, so as to ensure that by 31 December 1977 no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of Member States ; moreover, the second subparagraph of Article 44 (1) imposes equivalent obligations on the original Member States in relation to the new Member States.

Under Article 44 (2) the Commission is required to address to the Member States, from the beginning of 1973, recommendations as to the manner in which and the timetable according to which the adjustment provided for in that Article must be carried out.

III. In the new Member States there are no monopolies of a commercial character relating to matches.

So far France has taken no steps to liberalize imports of matches from the new Member States. The Commission therefore feels that the adjustment provided for in Article 44 of the Act concerning the Conditions of Accession and the Adjustments to the Treaties should consist of eliminating that form of discrimination which consists of imposing quantitative restrictions on imports of matches from the new Member States, and which derives from the fact that SEITA has the discretionary power to grant or refuse import licences.

IV. For these reasons, and while reserving the right to take such further action as it may subsequently consider necessary in the light of the results obtained by the application of this Recommendation, the Commission recommends the French Republic, pursuant to Article 44 (2) of the Act concerning the Conditions of Accession and the Adjustments to the Treaties: 1. to open an import quota for matches from the new Member States of: - 3 % of 1973 national production for 1974,

- 5 % of 1974 national production for 1975,

- 9 % of 1975 national production for 1976,

- 15 % of 1976 national production for 1977,

it being understood that by 31 December 1977 all quantitative restrictions on imports of matches from the new Member States will have been removed;

2. inform all importers of the new opportunities offered to them by these quotas to obtain supplies of matches from the new Member States, in particular by publishing a Notice to importers in the Journal Officiel de la République Française.

3. to abolish by 31 December 1977 at the latest SEITA's exclusive right to import matches from and export matches to the new Member States.

Done at Brussels, 19 July 1974.

For the Commission

The President

François-Xavier ORTOLI