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COMMISSION RECOMMENDATION

OF 20 SEPTEMBER 1974

TO THE FRENCH REPUBLIC CONCERNING ADJUSTMENT OF THE STATE MONOPOLY OF A COMMERCIAL CHARACTER IN SPIRITS " VIS-A-VIS " THE NEW MEMBER STATES

( 74/501/EEC )

I . BY NOTE DATED 14 FEBRUARY 1959 , THE GOVERNMENT OF THE FRENCH REPUBLIC INFORMED THE COMMISSION OF THE EUROPEAN ECONOMIC COMMUNITY THAT IN FRANCE ETHYL ALCOHOL AND ALSO POTABLE SPIRITS ( EAUXDE-VIE ) ET BOISSONS SPIRITUEUESES ) SUBJECT TO A STATE MONOPOLY OF A COMMERCIAL CHARACTER WITHIN THE MEANING OF ARTICLE 37 OF THE EEC TREATY .

UNDER COUNCIL REGULATION NO 7 BIS OF 18 DECEMBER 1959 ( 1 ) , ETHYL ALCOHOL OBTAINED FROM AGRICULTURAL PRODUCTS , EXCLUDING POTABLE SPIRITS , WAS ADDED TO ANNEX II TO THE EEC TREATY . ON 6 MARCH 1972 THE COMMISSION SENT TO THE COUNCIL A PROPOSAL FOR A REGULATION ON THE COMMON ORGANIZATION OF THE MARKET IN THIS PRODUCT ( 2 ) .

TO AVOID PREJUDGING THE PROVISIONS TO BE ADAPTED , WHICH WILL CONCERN ETHYL ALCOHOL OF BOTH AGRICULTURAL AND NON-AGRICULTURAL ORIGIN , THIS RECOMMENDATION DEALS ONLY WITH POTABLE SPIRITS .

THERE ARE NO RESTRICTIONS ON THE IMPORTATION AND MARKETING OF POTABLE SPIRITS IN FRANCE . HOWEVER , SUCH PRODUCTS FROM , IN PARTICULAR , THE NEW MEMBER STATES ARE SUBJECT TO A SURCHARGE OF AN AMOUNT EXCEEDING THE CHARGE ON SIMILAR FRENCH PRODUCTS .

II . UNDER THE FIRST SUBPARAGRAPH OF 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 .

THE SECOND SUBPARAGRAPH OF ARTICLE 44 ( 1 ) PROVIDES THAT THE ORIGINAL MEMBER STATES ARE TO HAVE EQUIVALENT OBLIGATIONS IN RELATION TO THE NEW MEMBER STATES , WHILE ARTICLE 44 ( 2 ) REQUIRES THE COMMISSION TO MAKE RECOMMENDATIONS , FROM THE BEGINNING OF 1973 , AS TO THE MANNER IN WHICH AND THE TIME TABLE ACCORDING TO WHICH THE ADJUSTMENT PROVIDED FOR IN ARTICLE 44 MUST BE CARRIED OUT .

III . SINCE , IN THE NEW MEMBER STATES , THERE ARE NO MONOPOLIES OF A COMMERCIAL CHARACTER IN THIS PARTICULAR INDUSTRY , THERE IS NO NEED TO ADDRESS RECOMMENDATIONS TO THEM UNDER THE FIRST SUBPARAGRAPH OF ARTICLE 44 ( 1 ) . HOWEVER , THE COMMISSION CONSIDERS THAT THE ADJUSTMENT OF THE FRENCH MONOPOLY AS PROVIDED FOR IN THE SECOND SUBPARAGRAPH OF ARTICLE 44 ( 1 ) OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION AND THE ADJUSTMENTS TO THE TREATIES SHOULD INCLUDE REMOVAL OF THE DISCRIMINATION WHICH CONSISTS OF APPLYING HEAVIER TAXATION ON POTABLE SPIRITS IMPORTED FROM THE NEW MEMBER STATES THAN ON SIMILAR NATIONAL PRODUCTS . IN ORDER TO RESPECT THE PRINCIPLE THAT THE MONOPOLY SHOULD BE ADJUSTED PROGRESSIVELY - FOR IT ALSO CONCERNS ETHYL ALCOHOL , THE COMMISSION IS OF THE OPINION THAT THIS DISCRIMINATION SHOULD BE REMOVED NOT LATER THAN 31 DECEMBER 1975 .

IV . FOR THESE REASONS , AND WHILST 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 , TO MODIFY THE REGULATIONS COVERING SPIRITS NOT LATER THAN 31 DECEMBER 1975 , SO THAT THE CHARGES LEVIED ON SPIRITS IMPORTED FROM THE NEW MEMBER STATES DO NOT EXCEED THOSE LEVIED ON COMPARABLE NATIONAL PRODUCTS .

DONE AT BRUSSELS , 20 SEPTEMBER 1974 .

FOR THE COMMISSION

THE PRESIDENT

FRANCOIS-XAVIER ORTOLI

( 1 ) OJ NO 7 , 30 . 1 . 1961 , P . 71/61 .

( 2 ) OJ NO C 43 , 29 . 4 . 1972 , P . 3 .