17.1.74 OfficialJournaloftheEuropeanCommunities NoL14/23
COMMISSION DECISION
of17December 1973
onpara-fiscaltaxesfinancingthe'TechnicalCentres'forleatherandforthe
clockandwatch-making industry
(OnlytheFrenchtextisauthentic)
(74/8/EEC)
couldthereforebeconsideredcompatiblewiththe
commonmarket,oncondition,however,thatthe
methodoffinancingismodifiedandthatthepara­
fiscaltaxesfinancingthesesystemsarenolonger
leviedonproductsimportedfromtheMemberStates;
WhereasinrespectofJudgmentNo47/69of25June
1970fromtheCourtofJusticeoftheEuropean
Communities onaidtothetextilesectorinFrance,
financedbyapara-fiscaltaxworkinginasimilarway
tothoseintroducedforthe'TechnicalCentres'
referredtoabove,theCourtstatedinitsjudgmentthat
itconsideredtheaidsystemtobeincompatiblewith
theprovisionsoftheEECTreatyonaccountofits
methodoffinancingandregardlessoftheamountof
thetax;THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle93
(2),firstparagraphthereof;
Havingcalleduponinterestedpartiestosubmittheir
comments ;
Whereasapara-fiscaltaxwasintroducedinFranceon
21September1966,byDecreeNo66-717,onthesale
ofwatchesofallsizesandofpartseitherproducedin
Franceorimported;whereastheproceedsofthetax,
estimatedin1970atFF2million,areallocatedtothe
'TechnicalCentre'fortheclockandwatch-making
industrywhichisresponsibleforcarryingoutresearch
work,standardization withaviewtothetechnical
developmentandcontrolofthesector;
Whereasasimilarsystemtothatintroducedfor
watcheswasintroducedforthehides,skinsand
leatherindustrybyDecreeNo68-791of5September
1968,asamendedbyDecreeNo70-151of20
February 1970;whereas,pursuanttothosedecrees,a
para-fiscaltaxrangingfrom0-15%to0-62%tobe
allocatedtothe'TechnicalCentre'forleatherislevied
onthesaleoffinishedhides,skinsandleatherandon
productsinwhichfinishedhides,skinsandleather
areincorporated ,whetherproducedinFranceor
imported;whereasrevenuefromthetaxamountedto
approximately FF9-3millionin1971;whereasthe
objectivesofthe'TechnicalCentre'fortheleather
industryaresimilartothosepursuedinthecaseofthe
clockandwatch-making industryandrelateto
research,technicalassistanceandstandardization of
qualitywhicharenecessaryfortheFrenchhides,
skinsandleatherindustry;
WhereastheCommission hasexamined,inthecase
ofboththesystemsreferredtoabove,theeffectof
publicinterventionintheformofaidandthemethod
offinancingthataid,andwhereasitconsidersthatif
theeffectsoftheaidsystems,bearinginmindthe
aimsofthe'TechnicalCentres',bebroughtunderthe
conditionslaiddownintheprovisionforaderogation
containedinArticle92(3c)oftheEECTreaty,andWhereasinitsjudgmenttheCourtofJusticestatedit
consideredsuchsystemstobeincompatible withthe
commonmarket,eveniftheResearchInstitutesin
thevarioussectorsweretomaketheresultsoftheir
researchworkavailabletointerestedpartiesintherele­
vantsectorsintheotherMemberStates;whereas
makingthefacilitiesandfindingsoftheResearch
Institutesavailablewould,infact,notnecessarily
implythatatruesharingoftheseservices,ofequal
benefittoall,sinceevenifequaltreatmentwere
ensuredinrespectofstandardization ,Frenchundertak­
ingswouldbegivenanadvantageinpractice,inthe
natureofthings;
WhereastheCommission ,inLetterNo71-20030of6
January1971,requestedtheGovernments ofFrance
andoftheotherMemberStatestoexamineand
modifysimilarsystemswhichmightbeinforcein
theircountries,inviewoftheDecreeoftheCourt
referredtoabove;whereastheFrenchGovernment ,in
particularinLetterNo71-12581of14October1971,
informedtheCommission thatitdidnotconsiderit
necessarytomodifytheaidsystemfortheclockand
watch-making andthehides,skinsandleatherindus­
tries;whereasthemainreasonforsuchanattitude
wasthat,becauseoftheirexchangesofinformation
withsimilarinstitutesintheotherMemberStates,the,
FrenchGovernment considerstheworkoftheFrench
'TechnicalCentres'tobeequallybeneficialtotherele­
vantindustriesintheotherMemberStates;

NoL14/24 OfficialJournaloftheEuropeanCommunities 17.1.74
Whereason15September1972(J)theCommission
thereforeinitiatedtheprocedurelaiddowninArticle
93(2),firstsubparagraph ,oftheEECTreatyinrespect
oftheaidsystemfortheclockandwatch-making and
thehides,skinsandleatherindustries,andwhereas,in
thisconnection ,ithascalledupontheFrenchGovern­
ment,theotherMemberStatesandanyotherparties
whichmightbeinterestedtosubmittheircomments ;
Whereasinaletterof25October1972,theFrench
Government senttheCommission itscommentsin
whichitstressedonceagain:
(a)thattheworkofthe'Centres'isavailabletoany
interestedpartiesintheotherMemberStates;
(b)thatexchangesofinformationtakeplacebetween
those'Centres'andtheundertakingsorinstitutes
inthesefieldsintheotherMemberStates;
(c)thattheFrenchGovernmentthereforedoesnot
consideritnecessarytomodifytheaidsystemsin
question;
WhereasthemajorityoftheMemberStatesandsome
otherinterestedpartiesotherthantheMemberStates
havesenttheCommission theircommentswhich
showthattheyconsider:
—thatonaccountofthemethodoffinancingthem,
theaidsystemsinforceinFrancedistortcompeti­
tiontothedisadvantageofsimilarindustriesin
theMemberStatesotherthanFrance;
—thatsuchsystemsinvolvingtaxationofimports
imposeanadditionalburdenonCommunity
producersexportingtoFrance,whoreceive
nothinginexchange;
Whereastheclockandwatch-making industrysector
—andtheshoe-makingsectorwhichprocessesthe
productsofthehides,skinsandleatherindustry—
alsoreceiveotheraidsgrantedbythe'Comiteinterr­
egionaldelamontre'andbythe'Comitededevelop­
pementdel'lndustriedelaChaussure';whereasthese
complementary systemsareintendedtoprovide
supportincommercialandstructuralrespectsandas
regardspromotionoftheseindustries,theeffectsof
whichareaddedtothoseoftheactivitiesofthe'Tech­
nicalCentres';
Whereastheclockandwatch-making andthehides,
skinsandleatherindustriesintheMemberStates
otherthanFrancehaveavailabletothemforthe
researchworknecessaryforthepursuitoftheiractivi­ties—eitherwithintheirownundertakingsorwithin
adhocinstitutes—inthefirstinstance,research
centresfinancedbynationalresources;
WhereasinoneMemberStatethereisaResearch
Instituteforthehides,skinsandleatherindustry
whoseresourcesareobtainedinpartfromanaid
systemfinancedbyreceiptsfromtaxesonimports;
whereastheCommissionhasinitiatedtheprocedure
laiddowninArticle169,firstsubparagraph ,ofthe
EECTreaty,againstthisaidsystem,
HASADOPTED THISDECISION :
Article1
TheRepublicofFranceshallmodifybefore28
February1974thesysteminforceinFranceproviding
foraidfromthe'Centretechniquedel'industriehorlo­
gere'fortheclockandwatch-makingindustry,sothat
productsofthatindustryimportedfromtheother
MemberStatesshallnolongerbesubjecttothepara­
fiscaltaxintroducedbyDecreeNo66-717of21
September1966onthesaleofwatchesofallsizesand
ofseparateparts.
Article2
TheRepublicofFranceshallalsomodifybefore28
February1974thesysteminforceinFranceproviding
foraidfromthe'CentreTechniqueducuir'forthe
hides,skinsandleatherindustry,sothatthese
productsandproductsinwhichthesematerialsare
incorporatedandwhichareimportedfromtheother
MemberStatesshallnolongerbesubjecttothepara­
fiscaltaxintroducedbyDecreeNo68-791of5
September1968onthesaleoftheproductsreferred
toabove.
Article3
ThisDecisionisaddressedtotheRepublicofFrance.
DoneatBrussels,17December1973.
FortheCommission
ThePresident
Francois-Xavier ORTOLI
(')SeeLetterNo72-27824of15September1972fromthe
Commission .