FROM OTHER MEMBER STATES OR ANY FORM OF PROTECTION OF COMPETING DOMESTIC PRODUCTS .
7 MORE SPECIFICALLY, THE COURT HAS HELD ON SEVERAL OCCASIONS THAT IN THE PRESENT STATE OF COMMUNITY LAW ARTICLE 95 OF THE EEC TREATY DOES NOT PROHIBIT MEMBER STATES, IN THE PURSUIT OF LEGITIMATE ECONOMIC OR SOCIAL AIMS, FROM GRANTING TAX ADVANTAGES, IN THE FORM OF EXEMPTIONS FROM OR REDUCTION OF TAXES, TO CERTAIN TYPES OF SPIRITS OR TO CERTAIN CLASSES OF PRODUCERS, PROVIDED THAT SUCH PREFERENTIAL SYSTEMS ARE EXTENDED WITHOUT DISCRIMINATION TO IMPORTED PRODUCTS CONFORMING TO THE SAME CONDITIONS AS PREFERRED DOMESTIC PRODUCTS .
8 THE ABOVE CRITERIA ARE SATISFIED IN THIS INSTANCE .
9 WITH REGARD TO THE AIMS PURSUED BY THE CONTESTED TAX SCHEME, THE FRENCH GOVERNMENT EXPLAINED DURING THE ORAL PROCEDURE THAT NATURAL SWEET WINES ARE MADE IN REGIONS CHARACTERIZED BY LOW RAINFALL AND RELATIVELY POOR SOIL, IN WHICH THE DIFFICULTY OF GROWING OTHER CROPS MEANS THAT THE LOCAL ECONOMY DEPENDS HEAVILY ON THEIR PRODUCTION . THE FRENCH GOVERNMENT MAINTAINS THAT THE TAX ADVANTAGE ENJOYED BY THOSE WINES THUS TENDS TO OFFSET THE MORE SEVERE CONDITIONS UNDER WHICH THEY ARE PRODUCED, IN ORDER TO SUSTAIN THE OUTPUT OF QUALITY PRODUCTS WHICH ARE OF PARTICULAR ECONOMIC IMPORTANCE FOR CERTAIN REGIONS OF THE COMMUNITY . SUCH ECONOMIC POLICIES MUST BE REGARDED AS COMPATIBLE WITH THE REQUIREMENTS OF COMMUNITY LAW .
10 FURTHERMORE, WITH REGARD TO THE EXTENSION OF THE PREFERENTIAL SCHEME TO IMPORTED PRODUCTS, IT MUST BE CONCLUDED THAT THE CRITERION OF "TRADITIONAL AND CUSTOMARY PRODUCTION" APPLIES WITHOUT DISTINCTION TO DOMESTIC AND IMPORTED PRODUCTS . THERE IS NOTHING IN THE EVIDENCE BEFORE THE COURT TO SUGGEST THAT THE APPLICATION OF THE SCHEME IN FACT GIVES PREFERENCE TO FRENCH WINES AT THE EXPENSE OF WINES WITH THE SAME CHARACTERISTICS FROM OTHER MEMBER STATES . IN PARTICULAR, IT HAS NOT BEEN DEMONSTRATED THAT BECAUSE OF PHYSICAL FACTORS OR PATTERNS OF PRODUCTION THE TAX ADVANTAGE IN QUESTION OPERATES SOLELY, OR EVEN PREPONDERANTLY, TO THE BENEFIT OF THE FRENCH PRODUCT . IT SHOULD BE ADDED THAT NATIONAL PROVISIONS WHICH COVER BOTH DOMESTIC AND IMPORTED PRODUCTS WITHOUT DISTINCTION CANNOT BE REGARDED AS CONTRARY TO COMMUNITY LAW MERELY BECAUSE THEY MIGHT LEND THEMSELES TO DISCRIMINATORY APPLICATION, UNLESS IT IS PROVED THAT THEY ARE ACTUALLY APPLIED IN THAT WAY .
11 CONSEQUENTLY, THE OBJECTION BASED ON THE FACT THAT THE BENEFIT OF THE PREFERENTIAL TAX SCHEME IS CONFINED TO LIQUEUR WINES WHOSE PRODUCTION IS "TRADITIONAL AND CUSTOMARY" MUST BE REJECTED .
REQUIREMENT OF CONTROLS IN THE MEMBER STATE OF EXPORTATION
12 THE COMMISSION FURTHER MAINTAINS THAT THERE IS DISCRIMINATION CONTRARY TO ARTICLE 95 OF THE TREATY INASMUCH AS WINES IMPORTED FROM OTHER MEMBER STATES QUALIFY FOR THE PREFERENTIAL TAX SCHEME ONLY IF THEY ARE SUBJECT TO CONTROLS IN THE MEMBER STATE OF EXPORTATION WHICH AFFORD GUARANTEES EQUIVALENT TO THOSE REQUIRED OF NATURAL SWEET WINES PRODUCED IN FRANCE . ACCORDING TO THE COMMISSION, THAT REQUIREMENT HAS THE EFFECT OF DISQUALIFYING PRODUCTS FROM OTHER MEMBER STATES WHICH MAKE NO PROVISION FOR ANALOGOUS CONTROLS,