Case C-495/00

Azienda Agricola Giorgio, Giovanni e Luciano Visentin and Others

v

Azienda di Stato per gli interventi nel mercato agricolo (AIMA)

(Reference for a preliminary ruling from the Tribunale amministrativo regionale del Lazio)

(Agriculture – Common organisation of the markets – Milk and milk products – Additional levy on milk – Regulations (EEC) Nos 3590/92 and 536/93 – Reference quantities – Ex post correction)

Summary of the Judgment

1. Member States – Obligations – Implementation of Community law – Application of the procedural and substantive rules of national law – Conditions

(EC Treaty, Art. 5 (now Art. 10 EC))

2. Agriculture – Common organisation of the markets – Milk and milk products –Additional levy on milk – Regulations Nos 3950/92 and 536/93 – Reference quantities – Ex post correction and recalculation of levies after the final date for payment of those levies – Whether permissible – Breach of the principle of the protection of legitimate expectations – None

(Council Regulation No 3950/92, Arts 1 and 4; Commission Regulation No 536/93, Arts 3 and 4)

1. According to the general principles on which the Community is based and which govern relations between the Community and the Member States, it is for the latter, under Article 5 of the EC Treaty (now Article 10 EC), to ensure that Community rules are implemented within their territories. In so far as Community law, including its general principles, does not include common rules to that effect then, when the national authorities implement Community rules, they are to act in accordance with the procedural and substantive rules of their own national law.

Nevertheless, when adopting measures to implement Community legislation, national authorities must exercise their discretion in compliance with the general rules of Community law, which include the principles of proportionality, legal certainty and the protection of legitimate expectations.

(see paras 39-40)

2. On a proper construction of Articles 1 and 4 of Regulation No 3950/92 establishing an additional levy in the milk and milk products sector and of Articles 3 and 4 of Regulation No 536/93 laying down detailed rules on the application of the additional levy on milk and milk products, it is not contrary to those provisions for a Member State, after checks have been carried out, to correct the individual reference quantities allocated to each producer and, after the unused reference quantities have been reallocated, to recalculate in consequence the additional levies payable, after the final date for payment of those levies for the milk marketing year concerned.

First, in so far as the individual reference quantity to which a producer can lay claim actually corresponds to the quantity of milk marketed by that producer during the reference year, that producer, who is as a rule aware of how much milk he has produced, can have no legitimate expectation that an inaccurate reference quantity will be continued. Second, producers can have no legitimate expectation that, when a production year expires, a certain unused individual reference quantity will be reallocated. Such reallocation is, by its nature, hypothetical and impossible to quantify in advance, for it depends upon the activity of other producers. A producer cannot therefore, before a production year has begun, have any legitimate expectation that a certain portion of unused quotas will be reallocated.

In addition, no legitimate expectation can be entertained as to the continuation of a situation which is plainly unlawful in the light of Community law, namely, the failure to apply the arrangements for the additional levy on milk. Milk producers in the Member States cannot legitimately expect, 11 years after the system was introduced, to be able to go on producing milk without limit.

(see paras 54-56, operative part)