ENACTED BY THE DECREE OF 24 APRIL 1936 , AS AMENDED IN PARTICULAR BY DECREE NO 61/1033 OF 11 SEPTEMBER 1961 , INTRODUCING WHEAT-MILLING QUOTAS AND LIMITING THE PRODUCTION CAPACITY OF MILLS , BE JUDGED CONTRARY TO REGULATION ( EEC ) NO 2727/75 OF THE COUNCIL ON THE COMMON ORGANIZATION OF THE MARKET IN CEREALS OR TO ARTICLES 30 TO 37 OF THE EEC TREATY?
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6 UNDER ARTICLE 177 OF THE EEC TREATY THE COURT HAS NO JURISDICTION TO RULE ON THE COMPATIBILITY OF NATIONAL LEGISLATION WITH COMMUNITY LAW . IT MAY HOWEVER PROVIDE THE NATIONAL COURT WITH AN INTERPRETATION OF COMMUNITY LAW WHICH WILL ENABLE THAT COURT TO RESOLVE THE ISSUE OF LAW WITH WHICH IT IS FACED .
7 THE QUESTION REFERRED BY THE TRIBUNAL DE GRANDE INSTANCE , MACON , MAY THEREFORE BE UNDERSTOOD AS SEEKING TO KNOW WHETHER NATIONAL MEASURES IMPOSING MILLING QUOTAS SUCH AS THOSE AT ISSUE IN THE MAIN PROCEEDINGS ARE CONTRARY TO REGULATION NO 2727/75 OF THE COUNCIL AND ARTICLES 30 TO 37 OF THE EEC TREATY , ON A TRUE CONSTRUCTION OF THOSE PROVISIONS .
SCOPE OF THE COMMON ORGANIZATION OF THE MARKET IN CEREALS 8 IN ORDER TO REPLY TO THE FIRST PART OF THAT QUESTION , IT IS NECESSARY TO EXAMINE THE FUNCTIONING OF THE COMMON ORGANIZATION OF THE MARKET IN CEREALS AS LAID DOWN BY REGULATION NO 2727/75 . AS APPEARS FROM ARTICLE 1 OF THE REGULATION , THAT ORGANIZATION COMPRISES A PRICE AND TRADING SYSTEM . WHEAT FLOUR IS ONE OF THE PRODUCTS COVERED BY THE ORGANIZATION OF THE MARKET .
9 WITH REGARD TO TRADE , REGULATION NO 2727/75 PROVIDES FOR A NUMBER OF MEASURES CONCERNING IMPORTS AND EXPORTS TO AND FROM NON-MEMBER COUNTRIES : THE ISSUE OF IMPORT AND EXPORT LICENCES , THE CHARGING OF A LEVY , THE POSSIBLE GRANTING OF A REFUND AND THE APPLICATION OF SAFEGUARD MEASURES . THE IMPOSITION OF A MILLING QUOTA DOES NOT INTERFERE IN ANY WAY WHATSOEVER WITH THE FUNCTIONING OF THOSE MECHANISMS .
10 WITH REFERENCE TO THE PRICE SYSTEM IT SHOULD BE EMPHASIZED THAT REGULATION NO 2727/75 PROVIDES FOR THE SETTING OF PRICES FOR CEREALS , NOT FOR FLOUR , THE PRICE OF WHICH REFLECTS SUPPLY AND DEMAND ON THE INTERNAL MARKET OF THE COMMUNITY . ALTHOUGH IT IS THEREFORE TRUE THAT A SYSTEM OF MILLING QUOTAS DOES NOT DIRECTLY AFFECT THE APPLICATION OF THE PRICE SYSTEM FOR WHEAT , FOREST HAS ARGUED THAT THE SYSTEM IN QUESTION HAS AN INDIRECT EFFECT INASMUCH AS RESTRICTION OF MILLING CAPACITY DIMINISHES DEMAND FOR WHEAT .
11 IT MUST BE POINTED OUT IN THAT REGARD THAT IT IS CLEAR FROM STATISTICS FURNISHED BY THE FRENCH GOVERNMENT AND BY THE COMMISSION , STATISTICS WHICH WERE NOT CHALLENGED BY FOREST , THAT THE TOTAL QUANTITY OF MILLING RIGHTS UNDER THE SYSTEM IN QUESTION HAS ALWAYS EXCEEDED TO A CONSIDERABLE EXTENT THE QUANTITY OF WHEAT NECESSARY TO COVER DOMESTIC HUMAN CONSUMPTION IN THE MEMBER STATE CONCERNED . FURTHERMORE , THE LEGISLATION IN