CELEX: 62005CJ0011
Language: en
Date: 2006-05-11
Title: Judgment of the Court (Third Chamber) of 11 May 2006. # Friesland Coberco Dairy Foods BV v Inspecteur van de Belastingdienst/Douane Noord/kantoor Groningen. # Reference for a preliminary ruling: Gerechtshof te Amsterdam - Netherlands. # Community Customs Code - Arrangements for processing under customs control - Refusal by the national customs authorities of an application for authorisation for processing under customs control - Binding nature of the conclusions of the Customs Code Committee - None - Jurisdiction of the Court to rule on the validity of those conclusions in the context of Article 234 EC - None - Interpretation of Article 133(e) of the Customs Code - Interpretation of Articles 502(3) and 504(4) of Regulation (EEC) No 2454/93 - Overall assessment of all the circumstances of the application for authorisation. # Case C-11/05.

Case C-11/05
      Friesland Coberco Dairy Foods BV
      v
      Inspecteur van de Belastingdienst/Douane Noord/kantoor Groningen
      (Reference for a preliminary ruling from the Gerechtshof te Amsterdam)
      (Community Customs Code – Arrangements for processing under customs control – Refusal by the national customs authorities of an application for authorisation for processing under customs control – Binding nature of the conclusions of the Customs Code Committee – None – Jurisdiction of the Court to rule on the validity of those conclusions in the context of Article 234 EC – None – Interpretation of Article 133(e) of the Customs Code – Interpretation of Articles 502(3) and 504(4) of Regulation (EEC) No 2454/93 – Overall assessment of all the circumstances of the application for authorisation)
      Summary of the Judgment
      1.        Free movement of goods – Trade with non-member countries – Procedure for processing under customs control
      (Council Regulation No 2913/92, Art. 133(e))
      2.        Preliminary rulings – Jurisdiction of the Court – Acts adopted by the institutions 
      (Art. 234 EC; Council Regulation No 2913/92, Art. 133(e))
      3.        Free movement of goods – Trade with non-member countries – Procedure for processing under customs control
      (Council Regulation No 2913/92, Art. 133(e))
      4.        Free movement of goods – Trade with non-member countries – Procedure for processing  under customs control
      (Council Regulation No 2913/92, Art. 133(e); Commission Regulation No 2454/93, Art. 502(3))
      1.        The conclusions issued by the Customs Code Committee in the context of an application for authorisation for processing under
         customs control under Article 133(e) of Regulation No 2913/92 establishing the Community Customs Code, as amended by Regulation
         No 2700/2000, is not binding on national customs authorities when they are determining such an application.
      
      (see para. 33, operative part 4)
      2.        The conclusions issued by the Customs Code Committee in the assessment of an application for processing under customs control
         under Article 133(e) of Regulation No 2913/92 establishing the Community Customs Code, as amended by Regulation No 2700/2000,
         cannot be examined within the framework of Article 234 EC.
      
      (see para. 41, operative part 3)
      3.        Article 133(e) of Regulation No 2913/92 establishing the Community Customs Code, as amended by Regulation No 2700/2000, which
         lays down the economic conditions which must be fulfilled in order to grant authorisation for processing under customs control,
         refers to ‘the essential interests of Community producers of similar goods’. In that connection, in the assessment of an application
         for authorisation for processing under customs control under that provision, account must be taken not only of the market
         for the finished products but also the economic situation of the market for raw materials used to produce those products.
      
      (see paras 47, 52, operative part 1)
      4.        The criteria to be taken into consideration when assessing ‘processing activities to be created or maintained’ within the
         meaning of Article 133(e) of Regulation No 2913/92 establishing the Community Customs Code, as amended by Regulation No 2700/2000,
         and Article 502(3) of Regulation  No 2454/93 laying down provisions for the implementation of Regulation  No 2913/92 may include
         the criterion relating to the creation of a minimum number of jobs on account of the processing activities envisaged, but
         is not limited to that criterion. Those criteria depend on the nature of the processing activity concerned, and the national
         customs authority responsible for examining the economic conditions under those provisions must make an overall assessment
         of all the relevant factors, including those concerning the number of jobs created, the value of the investment made and the
         permanence of the activity envisaged. 
      
      (see para. 59, operative part 2)
JUDGMENT OF THE COURT (Third Chamber)
      11 May 2006 (*)
      
      (Community Customs Code – Arrangements for processing under customs control – Refusal by the national customs authorities of an application for authorisation for processing under customs control – Binding nature of the conclusions of the Customs Code Committee – None – Jurisdiction of the Court to rule on the validity of those conclusions in the context of Article 234 EC – None – Interpretation of Article 133(e) of the Customs Code – Interpretation of Articles 502(3) and 504(4) of Regulation (EEC) No 2454/93 – Overall assessment of all the circumstances of the application for authorisation)
      In Case C‑11/05,
      REFERENCE for a preliminary ruling under Article 234 EC from the Gerechtshof te Amsterdam (Netherlands), made by decision
         of 28 December 2004, received at the Court on 14 January 2005, in the proceedings
      
      Friesland Coberco Dairy Foods BV, trading as Friesland Supply Point Ede
      v
      Inspecteur van de Belastingdienst/Douane Noord/kantoor Groningen,
      THE COURT (Third Chamber),
      composed of A. Rosas (President of the Chamber), J. Malenovský, J.‑P. Puissochet, U. Lõhmus and A. Ó Caoimh (Rapporteur),
         Judges,
      
      Advocate General: M. Poiares Maduro,
      Registrar: M. Ferreira, Principal Administrator,
      having regard to the written procedure and further to the hearing on 8 December 2005,
      after considering the observations submitted on behalf of:
      –        Friesland Coberco Dairy Foods BV, by J.G. Olijve and J.P. Scholten, adviseurs,
      –        the Netherlands Government, by H. Sevenster and M. de Grave, acting as Agents,
      –        the Greek Government, by I. Chalkias and S. Papaioannou, acting as Agents,
      –        the Italian Government, by I.M. Braguglia, acting as Agent, and by G. Albenzio, avvocato dello Stato,
      –        the Commission of the European Communities, by J. Hottiaux, acting as Agent, and by Y. van Gerven, avocat,
      after hearing the Opinion of the Advocate General at the sitting on 2 February 2006,
      gives the following
      Judgment
      1        This reference for a preliminary ruling concerns the interpretation of Article 133(e) of Council Regulation (EEC) No 2913/92
         of 12 October 1992 establishing the Community Customs Code (OJ 1992 L 302, p. 1), as amended by Regulation (EC) No 2700/2000
         of the European Parliament and of the Council of 16 November 2000 (OJ 2000 L 311, p. 17), (‘the Customs Code’) and Articles
         502(3) and 504(4) of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of
         Council Regulation (EEC) No 2913/92 (OJ 1993 L 253, p. 1), as amended by Commission Regulation (EC) No 993/2001 of 4 May 2001
         (OJ 2001 L 141, p. 1) (‘the implementing regulation’).
      
      2        The reference was made in the course of proceedings between the Dutch company Friesland Coberco Dairy Foods BV (‘Coberco Dairy
         Foods’) and the Inspecteur van de Belastingdienst/Douane Noord/kantoor Groningen (Tax Inspector/Customs North/Groningen Office)
         (‘the Inspector’), concerning an application for the grant of an authorisation for processing under customs control (‘the
         application’).
      
       Legal background
       The Customs Code
      3        The Customs Code establishes a number of customs procedures with economic impact, including, in Articles 130 to 136, ‘Processing
         under customs control’.
      
      4        Article 130 of the Customs Code is worded as follows:
      
      ‘The procedure for processing under customs control shall allow non-Community goods to be used in the customs territory of
         the Community in operations which alter their nature or state, without their being subject to import duties or commercial
         policy measures, and shall allow the products resulting from such operations to be released for free circulation at the rate
         of import duty appropriate to them. Such products shall be termed processed products.’
      
      5        Under Article 132 of the Customs Code:
      
      ‘Authorisation for processing under customs control shall be granted at the request of the person who carries out the processing
         or arranges for it to be carried out.’
      
      6        Article 133 of the Customs Code provides:
      
      ‘Authorisation shall be granted only:
      …
      (e)      where the necessary conditions for the procedure to help create or maintain a processing activity in the Community without
         adversely affecting the essential interests of Community producers of similar goods (economic conditions) are fulfilled. The
         cases in which the economic conditions are deemed to have been fulfilled may be determined in accordance with the committee
         procedure.’ 
      
      7        In accordance with Articles 247 to 249 of the Customs Code, the Commission of the European Communities is to be assisted by
         a Customs Code Committee (‘the Committee’) under the conditions set out in those articles.
      
      8        As regards the Committee, Article 249 of the Customs Code provides:
      
      ‘The Committee may examine any question concerning customs legislation which is raised by its chairman, either on his own
         initiative or at the request of a Member State’s representative.’
      
       The implementing regulation
      9        Article 496 of the implementing regulation defines an ‘authorisation’ as permission by the customs authorities to use the
         arrangements.
      
      10      Article 502 of the implementing regulation provides:
      
      ‘1.       Except where the economic conditions are deemed to be fulfilled pursuant to Chapters 3, 4 or 6, the authorisation shall not
         be granted without examination of the economic conditions by the customs authorities.
      
      2.       For the inward processing arrangements (Chapter 3), the examination shall establish the economic unviability of using Community
         sources taking account in particular of the following criteria, the details of which are laid down in Part B of Annex 70:
      
      (a)      unavailability of Community-produced goods sharing the same quality and technical characteristics as the goods intended to
         be imported for the processing operations envisaged;
      
      (b)      differences in price between Community-produced goods and those intended to be imported;
      (c)      contractual obligations.
      3.      For the processing under customs control arrangements (Chapter 4), the examination shall establish whether the use of non-Community
         sources enables processing activities to be created or maintained in the Community.
      
      …’
      11      According to Article 503 of the implementing regulation:
      
      ‘An examination of the economic conditions involving the Commission may take place:
      (a)      if the customs authorities concerned wish to consult before or after issuing an authorisation;
      (b)      if another customs administration objects to an authorisation issued;
      (c)       on the initiative of the Commission.’
      12      Article 504 of the implementing regulation provides:
      
      ‘1.       Where an examination in accordance with Article 503 is initiated, the case shall be sent to the Commission. It shall contain
         the results of the examination already undertaken.
      
      2.      The Commission shall send an acknowledgement of receipt or notify the customs authorities concerned when acting on its own
         initiative. It shall determine in consultation with them whether an examination of the economic conditions in the Committee
         is required.
      
      3.      Where the case is submitted to the Committee, the customs authorities shall inform the applicant, or holder, that such a procedure
         has been initiated and, if the handling of the application is not completed, that the time‑limits laid down in Article 506
         have been suspended.
      
      4.       The Committee’s conclusion shall be taken into account by the customs authorities concerned and by any other customs authorities
         dealing with similar authorisations or applications.
      
      …’
      13      As regards the arrangements for processing under customs control, the first subparagraph of Article 551(1) of the implementing
         regulation provides:
      
      ‘The arrangements for processing under customs control shall apply for goods the processing of which leads to products which
         are subject to a lower amount of import duties than that applicable to the import goods.’
      
      14      According to Article 552 of the implementing regulation:
      
      ‘1.       For the types of goods and operations mentioned in Annex 76, Part A, the economic conditions shall be deemed to be fulfilled.
         
      
      For other types of goods and operations examination of the economic conditions shall take place.
      2.       For the types of goods and operations mentioned in Annex 76, Part B and not covered by Part A, the examination of the economic
         conditions shall take place in the Committee. Article 504(3) and (4) shall apply.’
      
      15      Annex 76, Part B, to the implementing regulation includes all the goods subject to agricultural policy measures.
      
       Regulation (EC) No 1260/2001
      16      In order to achieve the objectives of the common agricultural policy, and in particular to ensure that Community growers of
         sugar beet and sugar cane continue to benefit from the necessary guarantees in respect of employment and standards of living,
         measures to stabilise the market in sugar have been adopted by Council Regulation (EC) No 1260/2001 of 19 June 2001 on the
         common organisation of the markets in the sugar sector (OJ 2001 L 178, p. 1). 
      
       The main proceedings and the questions referred for a preliminary ruling
      17      Coberco Dairy Foods produces fruit drinks using as raw materials fruit juice concentrates, sugars, flavourings, minerals and
         vitamins, purchased from companies, some of which are established in Member States and others in third countries. Processing
         consists largely of mixing the fruit juices with water and sugar, pasteurising the product and then packaging it.
      
      18      In accordance with Article 132 of the Customs Code, on 23 July 2002, Coberco Dairy Foods made an application for authorisation
         for processing under customs control to the Dutch customs authorities in respect of three products: apple juice containing
         added sugar, orange juice containing added sugar and white sugar, other than cane sugar. It was stated in that application,
         under the heading of economic conditions, that the use of materials from third countries enabled processing activities to
         be maintained in the Community.
      
      19      As the goods and the processing envisaged feature in Annex 76, Part B, to the implementing regulation, the file was submitted
         to the Committee for examination of whether the economic conditions had been fulfilled.
      
      20      On 22 August 2003, the Commission lodged a working document with the Committee, from which it appears that Coberco Dairy Foods
         made its application for authorisation on account of serious competition from producers from Central and Eastern Europe. It
         was considering an initial investment of approximately EUR 750 000 in the construction of a processing plant which was expected
         to create two jobs. Without the application of the arrangements for processing under customs control, Coberco Dairy Foods
         would probably have decided to process the products in Central or Eastern Europe rather than in the Netherlands.
      
      21      The Committee examined that document at its meeting on 18 September 2003. The minutes of that meeting state that a representative
         of the Commission’s Directorate‑General for Agriculture had informed the Committee, first, of reductions in guarantees for
         the disposal of sugar in order to comply with the Community’s international commitments and, second, of the fact that Community
         sugar producers were ‘under pressure’ and that ‘duty‑free’ imports under the processing under customs control arrangements
         would increase that pressure. Consequently, the Directorate‑General for Agriculture did not support the application. Therefore,
         the Committee decided that the economic conditions were not fulfilled in this case.
      
      22      By decision of 27 October 2003, the Dutch customs authorities based their decision on the Committee’s conclusion recommending
         refusal of Coberco Dairy Foods’ application. The complaint brought by the latter was dismissed by the Inspector on 2 April
         2004.
      
      23      Coberco Dairy Foods therefore brought an action, on 10 May 2004, before the Gerechtshof te Amsterdam (Amsterdam Regional Court
         of Appeal).
      
      24      It is in those circumstances that by order of 28 December 2004 the Gerechtshof te Amsterdam decided to stay its proceedings
         and to refer the following questions to the Court for a preliminary ruling:
      
      ‘(1)      How should the words “without adversely affecting the essential interests of Community producers of similar goods” in Article
         133(e) [of the Customs Code] be interpreted? Can only the market for the finished product be considered or must the economic
         situation with regard to the raw materials for processing under customs control also be investigated?
      
      (2)      In relation to the assessment of the “processing activities to be created or maintained” under Article 502(3) [of the implementing
         regulation], is there a specific number of jobs which must, as a minimum, be made possible by the activities? What other criteria
         also apply to the interpretation of the cited text of the regulation?
      
      (3)      In the light of the answers to Questions 1 and 2, can the Court of Justice examine the validity of a conclusion of the Committee
         in preliminary ruling proceedings?
      
      (4)      If so, is the conclusion in this case valid with respect to both the reasons and the economic arguments adduced?
      (5)      If the Court of Justice cannot examine the validity of a conclusion, what interpretation should then be given to the words
         “[t]he Committee’s conclusion shall be taken into account by the customs authorities” in Article 504(4) [of the implementing
         regulation] if – in the first instance – the customs authorities and/or – on appeal – the national courts consider that the
         Committee’s conclusion cannot justify the rejection of the application for processing under customs control?’
      
       The fifth question
      25      By the fifth question, which it is appropriate to examine first, the national court raises the question of the interpretation
         of the words ‘[t]he Committee’s conclusion shall be taken into account by the customs authorities’ in Article 504(4) of the
         implementing regulation. It asks, essentially, whether that provision means that the Committee’s conclusion is binding on
         national customs authorities determining an application for authorisation for processing under customs control.
      
      26      It must be observed, first, that it is not apparent from the wording of Article 504(4) of the implementing regulation that
         the Committee’s conclusion is binding on the national customs authorities. According to the wording of that provision, the
         Committee’s conclusion need only be taken into account by the customs authorities dealing with the application, as well as
         by any other customs authorities dealing with similar authorisations or applications.
      
      27      That provision does not by any means require the national customs authorities automatically to follow the Committee’s conclusion.
         The national customs authorities may disregard the conclusion adopted by the Committee provided that they give reasons for
         their decision in that respect.
      
      28      That assessment of the legal nature of the Committee’s conclusion, and the extent of the obligation on the customs authorities
         when they consider that conclusion, is supported by the objective pursued by the establishment of the Committee. As is clear
         from the seventh recital in the preamble to the Customs Code, the establishment of the Committee seeks merely to ensure close
         and effective cooperation between the Member States and the Commission in the field of the Customs Code. As far as concerns
         applications for processing under customs control, that cooperation may and, sometimes, must give rise to an examination of
         the economic conditions referred to in Article 133(e) of the Customs Code and Article 502 of the implementing regulation and
         a consultation with the Committee before the customs authorities concerned issue an authorisation or after that authorisation
         has been issued.
      
      29      Although the Committee’s conclusion is intended to inform the customs authorities as to the economic conditions at issue,
         as provided by the Customs Code and the implementing regulation, it is not apparent anywhere in the implementing regulation,
         in particular in Article 504(4) thereof, or from the Committee’s role or the objective pursued by consultation with the Committee
         that the customs authorities concerned are thereby bound by the Committee’s conclusion.
      
      30      Furthermore, both Article 133(e) of the Customs Code, which provides that the cases in which the economic conditions are deemed
         to have been fulfilled may be determined in accordance with the committee procedure, and Article 249 thereof, which provides
         that the Committee may examine any question concerning customs legislation, confirm that the Committee’s role consists, in
         general, in assisting the competent national authorities to take decisions, not in imposing constraints on them. 
      
      31      That interpretation of Article 504(4) of the implementing regulation, according to which the Committee’s conclusion is not
         binding, cannot be called into question by the fact that in certain circumstances, particularly where, as in the main proceedings,
         goods subject to agricultural policy measures are concerned, consultation with the Committee is compulsory by virtue of Article
         552(2) of the implementing regulation. Even in such cases, the competent national authorities must only take account of the
         Committee’s conclusion and are not bound by it. A duty to consult the Committee cannot be treated as a duty to adopt its conclusion.
      
      32      As regards the practice followed by a number of Member States, particularly the Kingdom of the Netherlands, by which the customs
         authorities concerned automatically follow the Committee’s conclusion when it is negative, it must be observed that, under
         the relevant provisions of the Customs Code and the implementing regulation, those authorities are none the less free to adopt
         a position different from that of the Committee after making their own assessment of the circumstances and having given adequate
         reasons for their decision in that respect.
      
      33      In those circumstances, the answer to the fifth question must be that the Committee’s conclusion is not binding on national
         customs authorities when they are determining an application for authorisation for processing under customs control.
      
       The third and fourth questions
      34      By its third question, which it is appropriate to examine next, the national court asks essentially whether the validity of
         a conclusion of the Committee issued pursuant to Article 133(e) of the Customs Code may be examined in proceedings under Article
         234 EC. If the Court rules that it has jurisdiction to undertake such an examination, the national court asks, by its fourth
         question, about the validity of the Committee’s conclusion at issue in the main proceedings, both as regards its statement
         of reasons and the economic arguments relied on therein.
      
      35      Article 234 EC provides that the Court has jurisdiction to give preliminary rulings concerning the validity and interpretation
         of acts of the Community institutions and the European Central Bank.
      
      36      According to settled case-law, that provision confers on the Court jurisdiction to give a preliminary ruling on the validity
         and interpretation of all acts of the institutions of the Community without exception (Case C-322/88 Grimaldi [1989] ECR 4407, paragraph 8).
      
      37      In that connection, it is not disputed that the Committee’s conclusion cannot be imputed to the Commission. Since the Commission
         and the Member States may and, sometimes, must consult the Committee in the course of examining an application for authorisation
         for processing under customs control, the Committee’s conclusion cannot be regarded as constituting an act of the institutions,
         within the meaning of that case-law. That conclusion also follows from the objective pursued by the establishment of the Committee,
         which seeks merely to ensure close and effective cooperation between the Member States and the Commission in the field of
         the Customs Code.
      
      38      As regards the legal nature of the Committee’s conclusion, it must be recalled, first of all, as is clear from paragraphs
         26 to 33 of this judgment, that it is not binding on national customs authorities which are determining an application for
         authorisation for processing under customs control.
      
      39      That interpretation is confirmed by the case-law of the Court relating to other types of opinions, of a similar kind, such
         as, in particular, the opinions of the Committee on Common Customs Tariff Nomenclature established by Council Regulation (EEC)
         No 97/69 of 16 January 1969 on measures to be taken for uniform application of the nomenclature of the Common Customs Tariff
         (OJ, English Special Edition 1969(I), p. 12). It must be observed, as far as concerns the Committee’s conclusions, that, although
         they constitute an important means of ensuring the uniform application of the Customs Code by the customs authorities of the
         Member States and as such they may be considered as a valid aid to the interpretation of the Code, they do not have legally
         binding force (see, to that effect, Joined Cases 69/76 and 70/76 Dittmeyer [1977] ECR 231, paragraph 4; Case 798/79 Chem-Tec [1980] ECR 2639, paragraphs 11 and 12; and Case C‑35/93 Dr. Eisbein [1994] ECR I‑2655, paragraph 21).
      
      40      Since the Committee was established in order to ensure close and effective cooperation between the Member States and the Commission
         in the field of the Customs Code, the customs authorities of the Member States are only required to take its conclusions into
         account and are not bound to follow them when adopting a final decision. It is in fact the latter decision which must, if
         necessary, be subject to judicial review by the national court.
      
      41      Therefore, the answer to the third question must be that the validity of conclusions of the Committee issued in accordance
         with Article 133(e) of the Customs Code cannot be examined within the framework of Article 234 EC.
      
      42      In the light of the answer to the third question, there is no need to reply to the fourth question.
      
       The first question
      43      By its first question, the national court raises the question of the interpretation of the terms ‘without adversely affecting
         the essential interests of Community producers of similar goods’ in Article 133(e) of the Customs Code. It asks, essentially,
         whether, in the assessment of an application for authorisation for processing under customs control under that provision,
         account must be taken not only of the market for the finished products but also of the economic conditions of the market for
         raw materials used to produce those goods.
      
      44      Coberco Dairy Foods takes the view that the notion of ‘essential interests of Community producers of similar goods’, within
         the meaning of Article 133(e) of the Customs Code, must be interpreted as covering only an assessment of the interests of
         the Community producers of processed goods, that is to say finished products.
      
      45      The Greek and Netherlands Governments and the Commission take the view that, having regard to the terms, the context and the
         objectives of Article 133(e) of the Customs Code, an examination of the economic conditions requires that both the interests
         of the producers of the processed goods and those of the producers of goods similar to those used in the processing be taken
         into account. 
      
      46      The Italian Government submits, first, that the examination of the economic conditions must cover raw materials, since they
         are goods which benefit from the arrangements for processing under customs control and that the protection measures in these
         advantageous arrangements were provided for those goods. Second, and for the same purposes, that examination should be conducted
         by taking account of the Community market. Third, the decision which is taken should be applied in the same manner in all
         the Member States.
      
      47      It must be observed that the wording of Article 133(e) of the Customs Code, which refers to ‘the essential interests of Community
         producers of similar goods’ without stating whether it refers to producers of finished products or whether it also includes
         producers of raw materials used to produce those goods, does not provide a clear answer to the question referred, so that
         the context of that provision must be taken into account, namely the customs procedure with economic impact to which that
         provision applies and the objectives pursued by that procedure.
      
      48      Under Article 130 of the Customs Code, the procedure for processing under customs control allows non-Community goods to be
         used in the customs territory of the Community in operations which alter their nature or state, without their being subject
         to import duties or commercial policy measures, and allows the products resulting from such operations to be released for
         free circulation at the rate of the import duty appropriate to them. That procedure applies, in accordance with the first
         subparagraph of Article 551(1) of the implementing regulation, to goods the processing of which leads to products which are
         subject to a lower amount of import duty than that applicable to the import goods.
      
      49      The arrangements for processing under customs control were adopted in order to avoid negative consequences for processing
         operations in the Community from an automatic application of the Community Customs Tariff. However, by conferring an advantage
         on Community processors, who are not, under those arrangements, bound to pay customs duties on goods imported from third countries,
         those arrangements may none the less adversely affect the essential interests of any Community producers of the raw materials
         used in the processing.
      
      50      Given that potential conflict of interests, it is clear that the examination of the economic conditions laid down in Article
         133(e) of the Customs Code is intended to take account of those various interests, namely those of the processors of raw materials
         and those of Community producers of similar goods. The objective of that provision is, as the Commission rightly submits,
         that the advantages of an authorisation for processing under customs control in respect of processing operations should be
         assessed in the light of the possible impact of the issue of such an authorisation on the situation of the Community producers
         of goods similar to those being processed.
      
      51      That interpretation of the objective pursued by Article 133(e) of the Customs Code, that the interests of all Community producers
         must be protected, namely both those of the producers of finished products and those of the producers of raw materials used
         to produce those products, is, moreover, the only interpretation capable of taking account of the requirements of the common
         Community policies, including those of the common agricultural policy, as required by the third and fourth recitals in the
         preamble to the Customs Code.
      
      52      Therefore, the answer to the first question must be that, in the assessment of an application for authorisation for processing
         under customs control pursuant to Article 133(e) of the Customs Code, account must be taken not only of the market for the
         finished products but also of the economic situation of the market for the raw materials used to produce those products. 
      
       The second question
      53      By its second question, the national court asks what criteria are to be applied in order to interpret the expression ‘processing
         activities to be created or maintained’ in Article 502(3) of the implementing regulation, and whether, in particular, account
         must be taken of the creation, on account of the processing operations envisaged, of a minimum number of jobs.
      
      54      Coberco Dairy Foods argues that since that provision does not provide for any limit as to the number of jobs to be maintained
         or created, the number of jobs does not constitute therefore a relevant criterion.
      
      55      Before granting an authorisation for processing under customs control, the national customs authorities have a duty, in accordance,
         in particular, with Article 133(e) of the Customs Code and Article 502(3) of the implementing regulation, to examine whether
         certain economic conditions have been fulfilled, in particular as regards goods subject to agricultural policy measures, such
         as sugar.
      
      56      Pursuant to Article 133(e) of the Customs Code, that examination must establish whether the authorisation for processing under
         customs control may help create or maintain a processing activity in the Community without adversely affecting the essential
         interests of Community producers of similar goods. The criterion that the authorisation must be such as to enable processing
         activities in the Community to be created or maintained is repeated in Article 502(3) of the implementing regulation.
      
      57      While the provisions of the Community rules applicable to the arrangements for processing under customs control do not state
         the various criteria to be taken into consideration in the assessment of the economic conditions for which they provide, it
         is appropriate to recall the objectives pursued by those arrangements, set out in paragraphs 50 to 52 of this judgment, and
         the fact that the examination of those conditions is designed to take account of the different interests of the processors
         of raw materials and those of the Community producers of similar goods, while complying with the requirements of common policies.
      
      58      Having regard to those considerations, the Court observes, like the Netherlands and Greek Governments and the Commission,
         that the economic conditions referred to by those provisions must be assessed by reference to a number of factors, such as
         the value of the investment made, the permanence of the activity and its viability, the stability of the jobs created and
         any other relevant factor relating to the creation or maintenance of a processing activity. Although the creation of a minimum
         number of jobs on account of the processing activities envisaged constitutes a relevant factor in the examination of the economic
         conditions required by the Customs Code and the implementing regulation, it is not necessarily the only factor to be taken
         into consideration. The criteria to consider in that examination depend on the nature of the processing activity concerned
         and each examination of the economic conditions must be undertaken in the light of the specific circumstances of the situation.
      
      59      Accordingly, the answer to the second question must be that the criteria to be taken into consideration when assessing ‘processing
         activities to be created or maintained’ within the meaning of Article 133(e) of the Customs Code and Article 502(3) of the
         implementing regulation, may include the criterion relating to the creation of a minimum number of jobs on account of the
         processing activities envisaged, but is not limited to that criterion. Those criteria depend on the nature of the processing
         activity concerned, and the national customs authority responsible for examining the economic conditions under those provisions
         must make an overall assessment of all the relevant factors, including those concerning the number of jobs created, the value
         of the investment made and the permanence of the activity envisaged.
      
       Costs
      60      Since these proceedings are, for the parties to the main proceedings, a step in the action pending before the national court,
         the decision on costs is a matter for that court. Costs incurred in submitting observations to the Court, other than the costs
         of those parties, are not recoverable. 
      
      On those grounds, the Court (Third Chamber) hereby rules:
      1.       In the assessment of an application for authorisation for processing under customs control pursuant to Article 133(e) of
            Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code, as amended by Regulation (EC)
            No 2700/2000 of the European Parliament and of the Council of 16 November 2000, account must be taken not only of the market
            for the finished products but also of the economic situation of the market for the raw materials used to produce those products.
            
      2.      The criteria to be taken into consideration when assessing ‘processing activities to be created or maintained’ within the
            meaning of Article 133(e) of Regulation No 2913/92, as amended by Regulation No 2700/2000, and Article 502(3) of Commission
            Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92,
            as amended by Commission Regulation (EC) No 993/2001 of 4 May 2001, may include the criterion relating to the creation of
            a minimum number of jobs on account of the processing activities envisaged, but is not limited to that criterion. Those criteria
            depend on the nature of the processing activity concerned, and the national customs authority responsible for examining the
            economic conditions under those provisions must make an overall assessment of all the relevant factors, including those concerning
            the number of jobs created, the value of the investment made and the permanence of the activity envisaged.
      3.      The validity of conclusions of the Customs Code Committee issued in accordance with Article 133(e) of Regulation No 2913/92,
            as amended by Regulation No 2700/2000, cannot be examined within the framework of Article 234 EC.
      4.      The Customs Code Committee’s conclusion is not binding on national customs authorities when they are determining an application
            for authorisation for processing under customs control.
      [Signatures]
      * Language of the case: Dutch.