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COMMISSION RECOMMENDATION

OF 18 NOVEMBER 1974

TO THE ITALIAN REPUBLIC CONCERNING THE ADJUSTMENT OF THE NATIONAL MANUFACTURED TOBACCO MONOPOLY IN RESPECT OF TRADE WITH THE NEW MEMBER STATES

( 74/598/EEC )

I

IN ITALY MANUFACTURED TOBACCO IS SUBJECT TO A NATIONAL MONOPOLY OF A COMMERCIAL CHARACTER WITHIN THE MEANING OF ARTICLE 37 ( 1 ) OF THE EEC TREATY . UNDER ARTICLES 45 ET SEQ . OF LAW NO 907 OF 17 JULY 1942 ( 1 ) THE AAMS ( AMMINISTRAZIONE AUTONOMA DEI MONOPOLI DI STATO ) HAS EXCLUSIVE IMPORT , EXPORT AND SELLING RIGHTS BASED ON THIS MONOPOLY .

THE FIRST SUBPARAGRAPH OF ARTICLE 44 ( 1 ) OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION AND THE ADJUSTMENTS TO THE TREATIES LAYS DOWN THAT THE NEW MEMBER STATES SHALL PROGRESSIVELY ADJUST 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 ) SPECIFIES THAT THE ORIGINAL MEMBER STATES SHALL HAVE EQUIVALENT OBLIGATIONS IN RELATION TO THE NEW MEMBER STATES .

ARTICLE 44 ( 2 ) PROVIDES THAT " FROM THE BEGINNING OF 1973 THE COMMISSION SHALL MAKE RECOMMENDATIONS AS TO THE MANNER IN WHICH AND THE TIMETABLE ACCORDING TO WHICH THE ADJUSTMENT PROVIDED FOR IN THIS ARTICLE MUST BE CARRIED OUT , IT BEING UNDERSTOOD THAT THE MANNER AND TIMETABLE MUST BE THE SAME FOR THE NEW MEMBER STATES AND THE ORIGINAL MEMBER STATES " .

IT IS NOT AND COULD NOT BE THE PURPOSE OF THIS RECOMMENDATION TO PRONOUNCE UPON THE COMPATIBILITY OF THIS MONOPOLY WITH THE PROVISIONS OF ARTICLE 37 ( 1 ) OF THE TREATY WITH RESPECT TO THE ORIGINAL MEMBER STATES , IN PARTICULAR AS FAR AS THE RETAIL SECTOR IS CONCERNED .

AS THE NEW MEMBER STATES HAVE NO MONOPOLY ARRANGEMENTS FOR THE PRODUCTS IN QUESTION THERE IS NO NEED TO MAKE TO THEM ANY RECOMMENDATION UNDER THE FIRST SUBPARAGRAPH OF ARTICLE 44 ( 1 ) REFERRED TO ABOVE .

GIVEN ON THE OTHER HAND THAT THE AAMS STILL EXERCISES EXCLUSIVE IMPORT , EXPORT AND SELLING RIGHTS FOR MANUFACTURED TOBACCO IN RELATION TO THE NEW MEMBER STATES , THE COMMISSION CONSIDERS THAT THE ADJUSTMENT PROVIDED FOR IN THE SECOND SUBPARAGRAPH OF ARTICLE 44 ( 1 ) OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION AND THE ADJUSTMENTS TO THE TREATIES REQUIRES THE PROGRESSIVE REMOVAL OF THE DISCRIMINATION IN RESPECT OF IMPORTS OF MANUFACTURED TOBACCO FROM THE NEW MEMBER STATES WHICH IS IMPLICIT IN THE FACT THAT THE AAMS MAY REFUSE OR GRANT IMPORT LICENCES AT ITS DISCRETION .

THE ADJUSTMENT SHOULD ALSO BE CARRIED OUT IN SUCH A WAY THAT THE AAMS'S PRESENT EXCLUSIVE IMPORT , EXPORT AND WHOLESALE-SELLING RIGHTS FOR MANUFACTURED TOBACCO FROM THE NEW MEMBER STATES ARE WITHDRAWN BY 31 DECEMBER 1977 AT THE LATEST .

II

ACCORDINGLY , THE COMMISSION , WHILE RESERVING ITS POSITION PENDING THE OUTCOME OF THIS RECOMMENDATION , RECOMMENDS THAT THE GOVERNMENT OF THE ITALIAN REPUBLIC SHOULD , IN PURSUANCE OF ARTICLE 44 ( 2 ) OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION AND THE ADJUSTMENTS TO THE TREATIES :

1 . OPEN THE FOLLOWING QUOTAS FOR IMPORTS OF MANUFACTURED TOBACCO FROM THE NEW MEMBER STATES :

- 1974 - 3 % OF NATIONAL PRODUCTION IN 1973 ,

- 1975 - 5 % OF NATIONAL PRODUCTION IN 1974 ,

- 1976 - 9 % OF NATIONAL PRODUCTION IN 1975 ,

- 1977 - 15 % OF NATIONAL PRODUCTION IN 1976 ,

ON THE UNDERSTANDING THAT , FROM 31 DECEMBER 1977 AT THE LATEST , QUANTITATIVE RESTRICTIONS WILL NO LONGER BE PERMITTED ;

2 . INFORM ALL CONCERNED , BY MEANS OF APPROPRIATE PUBLICITY , THAT THEY CAN OBTAIN SUPPLIES OF MANUFACTURED TOBACCO FROM THE NEW MEMBER STATES WITHIN THESE QUOTAS ;

3 . WITHDRAW , BY 31 DECEMBER 1977 AT THE LATEST , THE AAMS'S PRESENT EXCLUSIVE IMPORT , EXPORT AND WHOLESALE-SELLING RIGHTS FOR MANUFACTURED TOBACCO FROM THE NEW MEMBER STATES .

DONE AT BRUSSELS , 18 NOVEMBER 1974 .

FOR THE COMMISSION

THE PRESIDENT

FRANCOIS-XAVIER ORTOLI

( 1 ) GAZZETTA UFFICIALE NO 199 , 25 . 8 . 1942 .