PURSUANT TO ARTICLE 18 ( 2 ) AND ( 3 ) OF THAT REGULATION THE PENALTY LAID DOWN IN CASE OF FAILURE TO FULFIL THE OBLIGATION IS , IN ESSENCE , PROPORTIONATE TO THE DEGREE OF THAT FAILURE .
19ON THE OTHER HAND , THE PROVISIONS OF ARTICLE 3 OF REGULATION NO 499/76 , PROMPTED BY ' ' ADMINISTRATIVE REASONS ' ' , PROVIDE NOT ONLY FOR A PERIOD WITHIN WHICH THOSE PROOFS MUST BE FURNISHED BUT ALSO THE LOSS OF THE WHOLE OF THE SECURITY IN THE EVENT OF FAILURE TO COMPLY WITH THAT PERIOD .
20THAT FIXED PENALTY , WHICH IS APPLIED TO AN INFRINGEMENT WHICH IS CONSIDERABLY LESS SERIOUS THAN THAT OF FAILURE TO FULFIL THE OBLIGATION WHICH THE SECURITY ITSELF IS INTENDED TO GUARANTEE , WHICH IS SANCTIONED BY AN ESSENTIALLY PROPORTIONATE PENALTY , MUST THEREFORE BE HELD TO BE EXCESSIVELY SEVERE IN RELATION TO THE OBJECTIVES OF ADMINISTRATIVE EFFICIENCY IN THE CONTEXT OF THE SYSTEM OF IMPORT AND EXPORT LICENCES .
21ALTHOUGH , IN VIEW OF THE INCONVENIENCE CAUSED BY THE BELATED PRODUCTION OF PROOFS , THE COMMISSION WAS ENTITLED TO INTRODUCE THE PERIOD LAID DOWN IN ARTICLE 3 OF REGULATION NO 499/76 FOR THE FURNISHING OF PROOF , IT SHOULD HAVE SANCTIONED FAILURE TO COMPLY WITH THAT PERIOD ONLY WITH A PENALTY CONSIDERABLY LESS ONEROUS FOR THOSE CONCERNED THAN THAT PRESCRIBING THE LOSS OF THE WHOLE OF THE SECURITY AND MORE CLOSELY ALLIED TO THE PRACTICAL EFFECTS OF SUCH AN OMISSION .
22INDEED , EVEN IF ADMINISTRATIVE EFFICIENCY REQUIRES THAT FILES SHOULD NOT REMAIN OPEN INDEFINITELY , IT MUST , HOWEVER , BE NOTED THAT FAILURE TO COMPLY WITH SUCH A PERIOD WILL BE EXCEPTIONAL IN NATURE IN THAT IT IS CONTRARY TO THE VERY INTERESTS OF THE EXPORTER OR IMPORTER CONCERNED , WHO WILL NORMALLY SEEK RELEASE OF HIS SECURITY AS SOON AS POSSIBLE .
23IT IS ACCORDINGLY APPROPRIATE TO REPLY TO THE QUESTION RAISED BY THE NATIONAL COURT THAT ARTICLE 3 OF REGULATION NO 499/76 IS INVALID .
Decision on costs
COSTS
24THE COSTS INCURRED BY THE COMMISSION OF THE EUROPEAN COMMUNITIES , WHICH HAS SUBMITTED OBSERVATIONS TO THE COURT , ARE NOT RECOVERABLE .
25AS THESE PROCEEDINGS ARE , IN SO FAR AS THE PARTIES TO THE MAIN ACTION ARE CONCERNED , A STEP IN THE ACTION PENDING BEFORE THE NATIONAL COURT , THE DECISION ON COSTS IS A MATTER FOR THAT COURT .
Operative part
ON THOSE GROUNDS ,
THE COURT ,
IN ANSWER TO THE QUESTION REFERRED TO IT BY THE TRIBUNAL ADMINISTRATIF , PARIS , BY JUDGMENT OF 22 MARCH 1978 , HEREBY RULES :
ARTICLE 3 OF COMMISSION REGULATION NO 499/76 OF 5 MARCH 1976 IS INVALID .