A DECLARATION THAT THE REFUSAL WAS NULL AND VOID ON THE GROUND THAT THE REGULATION ON WHICH IT IS BASED IS INCOMPATIBLE WITH CERTAIN PROVISIONS OF THE TREATY .
4 REGULATION ( EEC ) NO 563/76 WAS PROMULGATED AT A TIME WHEN THE STOCKS OF SKIMMED-MILK POWDER BOUGHT IN BY THE INTERVENTION AGENCIES PURSUANT TO REGULATION ( EEC ) NO 804/68 OF THE COUNCIL OF 27 JUNE 1968 ON THE COMMON ORGANIZATION OF THE MARKET IN MILK AND MILK PRODUCTS ( OJ ENGLISH SPECIAL EDITION 1968 , P . 176 ) HAD REACHED CONSIDERABLE PROPORTIONS AND WERE CONTINUING TO INCREASE DESPITE THE MEASURES ADOPTED BY THE COMMUNITY INSTITUTIONS TO CURB THE TENDENCY TOWARDS OVER-PRODUCTION OF MILK AND TO INCREASE THE SALE OF SKIMMED-MILK POWDER .
5 THE SYSTEM ESTABLISHED BY REGULATION ( EEC ) NO 563/76 THE APPLICATION OF WHICH WAS NOT EXTENDED BEYOND THE END OF THE ORIGINAL PERIOD OF APPLICATION , WHICH EXPIRED ON 31 OCTOBER 1976 , WAS DESIGNED TO REDUCE STOCKS THROUGH THE INCREASED USE IN FEEDING-STUFFS OF THE PROTEIN CONTAINED IN SKIMMED-MILK POWDER .
6 TO THIS END THE REGULATION MADE THE GRANT OF THE AIDS PROVIDED FOR CERTAIN VEGETABLE PROTEIN PRODUCTS AS WELL AS THE FREE CIRCULATION IN THE COMMUNITY OF CERTAIN IMPORTED ANIMAL FEED PRODUCTS SUBJECT TO THE OBLIGATION TO PURCHASE SPECIFIED QUANTITIES OF SKIMMED-MILK POWDER .
7 IN ORDER TO ENSURE THAT THIS OBLIGATION WAS FULFILLED THE GRANT OF AID AND FREE CIRCULATION WERE SUBJECT TO THE PROVISION OF A SECURITY OR THE PRODUCTION , ON THE PRESCRIBED FORM , OF EVIDENCE OF THE PURCHASE AND OF THE DENATURING OF THE PRESCRIBED QUANTITIES OF SKIMMED-MILK POWDER .
8 UNDER ARTICLE 1 OF COMMISSION REGULATION ( EEC ) NO 753/76 OF 31 MARCH 1976 LAYING DOWN DETAILED RULES FOR THE SALE OF SKIMMED-MILK POWDER FOR USE IN ANIMAL FEED ( OJ L 88 , P . 1 ), SKIMMED-MILK POWDER HELD BY THE INTERVENTION AGENCIES WAS RESOLD BY THEM IN FULFILMENT OF THE OBLIGATION TO PURCHASE AT A PRICE OF 52.16 U . A . PER 100 KG , MULTIPLIED BY A COEFFICIENT WHICH , IN THE CASE OF THE NETHERLANDS , AMOUNTED TO 0.8874 .
9 THE DENATURING COSTS TO BE BORNE BY THE PURCHASER WERE BETWEEN 1 AND 3 U . A . PER 100 KG .
10 DURING THE PERIOD WHEN REGULATION ( EEC ) NO 563/76 APPLIED , THE MARKET PRICE OF SOYA OIL CAKE , A VEGETABLE PRODUCT WITH A NUTRITIONAL VALUE COMPARABLE TO THAT OF SKIMMED-MILK POWDER FOR USE IN ANIMAL FEED OTHER THAN THAT FOR YOUNG CALVES , VARIED BETWEEN 13.30 AND 20.40 U . A . PER 100 KG , THE AVERAGE BEING ABOUT 18 U . A . PER 100 KG .
11 THE COMPULSORY PURCHASE OF SKIMMED-MILK POWDER WAS , THEREFORE , IMPOSED AT A PRICE EQUAL TO ABOUT THREE TIMES ITS VALUE AS ANIMAL FEED .
12 THE SECURITY , WHICH WAS RELEASED ONLY ON PRODUCTION OF PROOF OF THE PURCHASE OF