No C 170/8 Official Journal of the European Communities 12. 7. 90 
STATE AID 
N 94/90 
(France) 
(Articles 92 to 94 of the Treaty establishing the European Economic Community) 
(90/C 170/05) 
Communication from the Commission pursuant to 
Article 93 (2) of the EEC Treaty to the other Member 
States and to parties concerned other than Member 
States concerning a draft French Government Decree 
prolonging a parafiscal charge for the benefit of the 
Comite National Interprofessionnel de PHorticulture 
Florale, Ornementale et des Pepinieres. 
1. By letter dated 13 March 1990, recorded as 
received on 15 March 1990, the French Permanent 
Representation to the European Communities notified 
the Commission pursuant to Article 93 (3) of the Treaty 
of the draft Decree prolonging until 31 December 1992 
the parafiscal charge for the benefit of the Comite 
National Interprofessionnel de l'Horticulture Florale, 
Ornementale et des Pepinieres (CNIH). 
2. French flower and ornamental plant growers and 
nurserymen are members of the CNIH. Since 1959 this 
Committee has been funded by a system of parafiscal 
charges. The French Government is proposing, in the 
draft Decree under consideration, to prolong this 
arrangement until 31 December 1992. The proceeds of 
the charge are used to finance measures contributing to 
the development of the industry. 
The measures are aimed at: 
— improving product quality and developing new 
production techniques, by means of research to be 
conducted jointly in close cooperation with institutes 
or universities in a number of Community countries, 
notably in the context of Community research 
programmes (Eclair), 
— improving vocational training with a view to 
upgrading occupations in the horticultural field, 
conducting advertising and promotional campaigns, 
i.e. distributing publications, ensuring a presence at 
national and international horticultural events, 
— providing a permanent information service on the 
development of Community rules on horticultural 
matters for French producers and traders. 3. After having considered these measures, and their 
financing by compulsory contributions, the Commission 
has reached the following conclusions: 
As regards the aim of the aids, the Commission would 
have no comment to make if the aids were not funded by 
charges imposed also on products imported from other 
Member States. 
According to the case law of the Court of Justice of the 
European Communities, the financing of a State aid by a 
special compulsory charge is an essential feature of such 
aid and, in assessing such aid, both the aid and its 
financing should be considered in the light of 
Community law. 
Therefore, although these aids are compatible as regards 
their form and objectives, it nevertheless remains true 
that, according to the case law of the Court of Justice, 
their financing by parafisical charges imposed also on 
imported Community products has a protective effect 
that exceeds the effect of the aid as such. 
In addition, the arrangements relating to the charge as 
they can be interpreted from the text of the Decree, 
namely: 
(a) a levy of 2,8 % at the time of first marketing by 
producers on all amounts and values of goods and 
services received or to be received, exclusive of tax, 
in return for the supply of chargeable products; 
(b) a levy of 2,8 % on imports, on the value, exclusive 
of tax, assessed at the place of importation into 
metropolitan France, etc.; 
(c) a levy of 1,4 % on resale by traders on the purchase 
price exclusive of tax; 
seem to indicate that a levy is imposed twice on imported 
goods, firstly at 2,8 % and secondly at 1,4 °/o on resale, 
which is greater than the levy on goods produced in 
France and placed directly on the market by the 
producer, i.e. 2,8 %. 
The effect of the differentiation therefore is to 
encourage consumers to seek supplies of the home-
produced product. Such distinction consequently has a 
12. 7. 90 Official Journal of the European Communities No C 170/9 
discriminatory and protective effect which is incom­
patible with Articles 95 of the EEC Treaty. 
4. The Commission has decided therefore to initiate 
the procedure laid down in Article 93 (2) of the Treaty 
in respect of the abovementioned draft Decree. 
Under this procedure the Commission hereby gives 
notice to the French Government to submit its comments 
within four weeks from the date of this letter. 
The French authorities should notify in particular the 
measures they are planning to take in order to ensure 
that products imported from the other Member States 
are exempted from the charge. In addition, the Commission informs the French 
Government that it will be giving notice to the other 
Member States and to other parties concerned, by 
publishing a communication in the Official Journal of the 
European Communities, to submit their comments. 
The Commission hereby gives the other Member States 
and interested parties notice to submit their comments on 
the measures in question within four weeks from the 
date of publication of this notice to: 
Commission of the European Communities, 
200 rue de la Loi, 
B-1049 Brussels. 
The comments will be communicated to the French 
Government.