Keywords

Summary



Keywords

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1 . Agriculture - Common organization of the markets - Cereals - Co-responsibility levy - Processing cereals from other Member States - Calculation of the levy - "Green" exchange rate applicable - Rate applicable in the Member State in whose territory the first-stage processing was carried out

( Commission Regulation No 2040/86, Art . 2 ( 1 ) )

2 . Agriculture - Common organization of the markets - Cereals - Co-responsibility levy - Payment by the undertakings which carry out first-stage processing - Entire amount to be passed on to their suppliers

( Council Regulation No 2727/75, Art . 4 ( 6 ), as amended by Regulation No 1579/86; Commission Regulation No 2040/86, Art . 5 ( 1 ) )

3 . Agriculture - Common organization of the markets - Cereals - Co-responsibility levy - Variations in the amount of the levy depending on the State in which first-stage processing is carried out - Variations inherent in the system of "green" exchange rates - Infringement of the prohibition of obstacles to the free movement of goods - Absence - Discrimination between producers - Absence

( EEC Treaty, Arts 12, 16, 34 and 40 ( 3 ); Council Regulation No 1676/85, Art . 2 ( 1 ) )

Summary

1 . Article 2 ( 1 ) of Regulation No 2040/86 is to be interpreted as meaning that the co-responsibility levy in the cereals sector must be calculated using the agricultural conversion rate which is applicable for the Member State in whose territory the first-stage processing of the cereals is carried out since, irrespective of the origin of the cereals, the processor must pay the levy to the competent body of that Member State .

2 . The combined provisions of Article 4 ( 6 ) of Regulation No 2727/75, as amended by Regulation No 1579/86, and Article 5 ( 1 ) of Regulation No 2040/86 are to be interpreted as meaning that operators who undertake first-stage processing of cereals must subsequently pass on to their suppliers any positive or negative difference between the co-responsibility levy payable by those operators and the discount which, as part of a practice adopted by the operators to facilitate administrative and accounting control, they receive from their suppliers on account of that levy .

3 . In the context of the co-responsibility scheme in the cereals sector, the variations in the different Member States in the amount of the levy are the direct result of the difference between the agricultural conversion rates, which are applicable under the common agricultural policy by virtue of Article 2 ( 1 ) of Regulation No 1676/85, and the market rates of the currencies involved . The establishment of agricultural conversion rates, as distinct from market rates, is justified, with regard to trade between Member States, by the need to compensate for the effects of fluctuations in unstable exchange rates which, in a system where markets for agricultural products are organized on the basis of common prices, can disturb trade . Thus, the measure in question seeks to ensure that normal trade patterns are maintained in spite of the effect of divergent monetary policies . It cannot therefore be subject to the prohibition laid down by Articles 12, 16 and 34 of the Treaty .

The differences in the amount of levy paid by cereals producers, depending on the Member State in which the first-stage processing was carried out, are the result of the fact that the entire amount of the levy, calculated using the agricultural conversion rate applicable for the Member State where first-stage processing of the cereals takes place, is passed on to the producers . The entire amount of the levy is passed on in order to ensure that it is neutral in its effect as regards processors and any intermediate suppliers, so that the financial burden of the levy falls on the producers alone who, by their very production, contribute to the creation of structural surpluses on the cereals market . The different treatment of producers within the Community which results is thus objectively justified and consequently cannot be described as discrimination within the meaning of Article 40 ( 3 ) of the Treaty .