DECLARED THE SECURITY OF UKL1 670 370 FORFEIT . MAN SUGAR THEREUPON BROUGHT AN ACTION IN THE QUEEN ' S BENCH DIVISION OF THE HIGH COURT OF JUSTICE FOR REPAYMENT OF THE SECURITY , CONTENDING THAT ITS FORFEITURE WAS ' GROSSLY UNFAIR ' AND THAT THE COMMUNITY RULES WHICH IMPOSED THE FORFEITURE WERE CONTRARY TO THE PRINCIPLE OF PROPORTIONALITY .
7 MR JUSTICE GLIDEWELL DECIDED TO STAY THE PROCEEDINGS AND REFERRED THE CASE TO THE COURT OF JUSTICE FOR A PRELIMINARY RULING ON THE QUESTION :
' WHETHER ARTICLE 6 ( 3 ) OF COMMISSION REGULATION ( EEC ) NO 1880/83 IS INVALID FOR BREACH OF THE PRINCIPLE OF PROPORTIONALITY IN THAT IT PURPORTS TO REQUIRE , EXCEPT IN THE EVENT OF FORCE MAJEURE , THE FORFEITURE OF THE ENTIRE SECURITY IN EVERY CASE WHERE , AS A RESULT OF AN UNINTENTIONAL FAILURE ON THE PART OF THE APPLICANT , AN APPLICATION FOR AN EXPORT LICENCE IS NOT RECEIVED BY THE COMPETENT INTERVENTION AGENCY WITHIN THE PERIOD LAID DOWN BY THE LEGISLATION ' .
THE PROVISIONS OF COMMUNITY LAW APPLICABLE TO EXPORTS OF SUGAR TO NON-MEMBER COUNTRIES
8 IT IS COMMON GROUND THAT FOR MANY YEARS THE COMMUNITY SUGAR MARKET HAS BEEN CHARACTERIZED BOTH BY STRUCTURAL SURPLUSES AND BY PRICES HIGHER THAN THOSE ON THE WORLD MARKET . UNDER THE COMMON ORGANIZATION OF THE SUGAR MARKET , THE BASIC PROVISIONS OF WHICH ARE SET OUT IN COUNCIL REGULATION ( EEC ) NO 1785/81 OF 30 JUNE 1981 ( OFFICIAL JOURNAL 1981 , L 177 , P . 4 ), SURPLUS SUGAR MAY BE EXPORTED TO NON-MEMBER COUNTRIES SUBJECT TO LICENCE AND WITH THE BENEFIT OF REFUNDS WHICH ARE DESIGNED TO MAKE GOOD THE DIFFERENCE BETWEEN THE PRICE PREVAILING IN THE COMMUNITY AND THE LOWER PRICE PREVAILING ON THE WORLD MARKET . ARTICLE 13 OF THAT REGULATION STATES THAT THE ISSUE OF AN EXPORT LICENCE IS CONDITIONAL UPON THE LODGING OF A DEPOSIT WHICH GUARANTEES THAT THE EXPORT WILL BE EFFECTED DURING THE PERIOD OF VALIDITY OF THE LICENCE AND WHICH IS FORFEIT IN WHOLE OR IN PART IF THE TRANSACTION IS NOT EFFECTED , OR IS ONLY PARTIALLY EFFECTED , WITHIN THAT PERIOD .
9 IN GENERAL TERMS THE SYSTEM OPERATES BY MEANS OF STANDING INVITATIONS TO TENDER ISSUED BY THE COMMISSION IN ORDER TO DETERMINE THE REFUNDS ON EXPORTS OF SUGAR . TENDERS ARE SUBMITTED BY TRADERS TO THE NATIONAL INTERVENTION AGENCIES AND THE SUCCESSFUL TENDERERS ARE DESIGNATED BY THE COMMISSION AFTER IT HAS CONSULTED THE MANAGEMENT COMMITTEE FOR SUGAR . THE TENDERS MUST INDICATE , INTER ALIA , THE AMOUNT OF SUGAR WHICH THE TENDERER WISHES TO EXPORT AND THE LEVEL OF REFUND WHICH HE CONSIDERS NECESSARY TO ENABLE HIM TO SELL THE SUGAR ON THE WORLD MARKET . THE COMMISSION IS THUS ABLE TO DETERMINE , IN THE LIGHT OF THE TENDERS RECEIVED , THE QUANTITIES OF SUGAR TO RELEASE AND THE APPROPRIATE LEVEL OF REFUND .
10 COMMISSION REGULATION ( EEC ) NO 1880/83 OF 8