Irish Creamery Milk Suppliers Association and others v Government of Ireland and others; Martin Doyle and others v An Taoiseach and others.
Date: 1981-03-10
5 BEFORE AN ANSWER IS GIVEN TO THAT QUESTION IT SHOULD BE RECALLED THAT ARTICLE 177 OF THE TREATY ESTABLISHES A FRAMEWORK FOR CLOSE COOPERATION BETWEEN THE NATIONAL COURTS AND THE COURT OF JUSTICE BASED ON THE ASSIGNMENT TO EACH OF DIFFERENT FUNCTIONS . THE SECOND PARAGRAPH OF THAT ARTICLE MAKES IT CLEAR THAT IT IS FOR THE NATIONAL COURT TO DECIDE AT WHAT STAGE IN THE PROCEEDINGS IT IS APPROPRIATE FOR THAT COURT TO REFER A QUESTION TO THE COURT OF JUSTICE FOR A PRELIMINARY RULING .
6 THE NEED TO PROVIDE AN INTERPRETATION OF COMMUNITY LAW WHICH WILL BE OF USE TO THE NATIONAL COURT MAKES IT ESSENTIAL , AS THE COURT HAS ALREADY STATED IN ITS JUDGMENT OF 12 JULY 1979 ( CASE 244/78 UNION LAITIERE NORMANDE ( 1979 ) ECR 2663 ) TO DEFINE THE LEGAL CONTEXT IN WHICH THE INTERPRETATION REQUESTED SHOULD BE PLACED . FROM THAT ASPECT IT MIGHT BE CONVENIENT , IN CERTAIN CIRCUMSTANCES , FOR THE FACTS IN THE CASE TO BE ESTABLISHED AND FOR QUESTIONS OF PURELY NATIONAL LAW TO BE SETTLED AT THE TIME THE REFERENCE IS MADE TO THE COURT OF JUSTICE SO AS TO ENABLE THE LATTER TO TAKE COGNIZANCE OF ALL THE FEATURES OF FACT AND OF LAW WHICH MAY BE RELEVANT TO THE INTERPRETATION OF COMMUNITY LAW WHICH IT IS CALLED UPON TO GIVE .
7 HOWEVER , THOSE CONSIDERATIONS DO NOT IN ANY WAY RESTRICT THE DISCRETION OF THE NATIONAL COURT , WHICH ALONE HAS A DIRECT KNOWLEDGE OF THE FACTS OF THE CASE AND OF THE ARGUMENTS OF THE PARTIES , WHICH WILL HAVE TO TAKE RESPONSIBILITY FOR GIVING JUDGMENT IN THE CASE AND WHICH IS THEREFORE IN THE BEST POSITION TO APPRECIATE AT WHAT STAGE IN THE PROCEEDINGS IT REQUIRES A PRELIMINARY RULING FROM THE COURT OF JUSTICE .
8 HENCE IT IS CLEAR THAT THE NATIONAL COURT ' S DECISION WHEN TO MAKE A REFERENCE UNDER ARTICLE 177 MUST BE DICTATED BY CONSIDERATIONS OF PROCEDURAL ORGANIZATION AND EFFICIENCY TO BE WEIGHED BY THAT COURT .
15 NEVERTHELESS , THE METHODS USED TO IMPLEMENT A NATIONAL INCOMES POLICY WHICH INCLUDES , AMONG OTHER PERSONS , AGRICULTURAL PRODUCERS WOULD BE INCOMPATIBLE WITH THE TREATY AND WITH THE RULES ON THE COMMON ORGANIZATION OF MARKETS IF THESE METHODS INTERFERED WITH THE FUNCTIONING OF THE MACHINERY EMPLOYED BY THOSE ORGANIZATIONS IN ORDER TO ACHIEVE THEIR ENDS . THE REAL PROBLEM POSED BY THE DUTY IN QUESTION IN RELATION TO THOSE RULES IS THEREFORE WHETHER , APART FROM THE TAXATION OF THE INCOMES OF AGRICULTURAL PRODUCERS ENVISAGED BY THE GOVERNMENT OF IRELAND AND PRECISELY BECAUSE OF THE BASIS OF ITS ASSESSMENT AND THE WAY IN WHICH IT IS COLLECTED , IT HAS PRODUCED OTHER EFFECTS CAPABLE OF OBSTRUCTING THE FUNCTIONING OF THE MACHINERY ESTABLISHED BY THE ORGANIZATIONS IN QUESTION .
19 IT IS FOR THE NATIONAL COURT TO DECIDE WHETHER THE CHARGE WHICH IT IS CALLED UPON TO CONSIDER HAS IN FACT HAD EFFECTS WHICH OBSTRUCT THE WORKING OF THE MACHINERY ESTABLISHED BY THE COMMON ORGANIZATIONS OF THE MARKET . WITH A VIEW TO THE DECISION WHICH HAS TO BE MADE IN THAT RESPECT BY THE NATIONAL COURT IT IS , HOWEVER , POSSIBLE TO IDENTIFY CERTAIN FEATURES OF COMMUNITY LAW .
20 THE ESSENTIAL AIM OF THE MACHINERY OF THE COMMON ORGANIZATIONS IN QUESTION IS TO ACHIEVE PRICE LEVELS AT THE PRODUCTION AND WHOLESALE STAGES WHICH TAKE     INTO ACCOUNT BOTH THE INTERESTS OF COMMUNITY PRODUCTION AS A WHOLE IN THE RELEVANT SECTOR AND THOSE OF CONSUMERS , AND WHICH GUARANTEE MARKET SUPPLIES WITHOUT ENCOURAGING OVER-PRODUCTION . THOSE AIMS MIGHT BE JEOPARDIZED BY NATIONAL MEASURES ADOPTED UNILATERALLY , WHICH HAVE AN APPRECIABLE INFLUENCE , EVEN IF UNINTENTIONALLY , ON PRICE LEVELS ON THE NATIONAL MARKET AT THE SAME STAGES , OR ON SUPPLIES ON THAT MARKET . IN THE CASE OF A DUTY SUCH AS THE ONE IN THIS CASE , THE RISK OF SUCH INFLUENCE DEPENDS NOT ONLY ON ITS RATE AND THE PERIOD FOR WHICH IT IS IN FORCE , BUT EQUALLY ON THE SITUATION ON THE MARKET IN QUESTION AND , AS REGARDS SUPPLIES , ABOVE ALL ON HOW GENERAL ITS EFFECT IS , THAT IS TO SAY , THE NUMBER OF AGRICULTURAL PRODUCTS TO WHICH IT APPLIES . A SHORT-TERM DUTY ON A LARGE NUMBER OF PRODUCTS MAY BE NEUTRAL IN THE SENSE THAT IT DOES NOT ALTER THE STRUCTURE OF AGRICULTURAL PRODUCTION . ON THE OTHER HAND , IF THE DUTY ENCOURAGES PRODUCERS TO REPLACE SOME OF THE PRODUCTION OF THE GOODS SUBJECT TO THE DUTY BY PRODUCTION OF OTHER GOODS NOT SUBJECT THERETO , THE DUTY IS LIABLE TO CREATE DISTORTION ON A NUMBER OF MARKETS .
23 IT IS APPROPRIATE TO POINT OUT IN THIS RESPECT THAT IN SO FAR AS IT MAY BE ESTABLISHED THAT APPLICATION OF AN INTERNAL DUTY FALLS MORE HEAVILY ON SALES FOR EXPORT THAN ON DOMESTIC SALES THE DUTY HAS AN EFFECT EQUIVALENT TO A CUSTOMS DUTY ON EXPORTS . THIS WOULD NOT BE SO , HOWEVER , IN THE CASE OF A DUTY WHICH     IS APPLIED SYSTEMATICALLY AND IN ACCORDANCE WITH THE SAME CRITERIA TO ANIMALS , IN THE WORDS OF THE GOVERNMENT OF IRELAND , ' '  AT THE POINT OF WITHDRAWAL FROM THE NATIONAL HERD , WHETHER FOR EXPORT OR FOR SLAUGHTER ' ' .
24 ON ALL THOSE GROUNDS , THE REPLY TO THE SECOND QUESTION SHOULD BE AS FOLLOWS :
- A TEMPORARY NATIONAL DUTY INTENDED TO BE BORNE BY AGRICULTURAL PRODUCERS AS PART OF AN INCOMES POLICY DIVIDING TAX BURDENS AMONG THE VARIOUS SECTORS OF THE WORKING POPULATION , BUT APPLIED IN THE FORM OF AN INDIRECT TAX ON THE VALUE OF CERTAIN AGRICULTURAL PRODUCTS SUBJECT TO COMMON ORGANIZATIONS OF THE MARKETS AT THE TIME OF THEIR DELIVERY FOR PROCESSING , STORAGE OR EXPORT AND PAYABLE EITHER BY THE EXPORTER OR BY THE PROCESSING OR STORAGE UNDERTAKING , WHO WERE ENTITLED TO RECOVER THE AMOUNT OF THE DUTY FROM THE PRODUCERS , WAS NOT , IN PRINCIPLE , INCOMPATIBLE WITH THE PROVISIONS OF THE EEC TREATY ON AGRICULTURAL POLICY , OR WITH COMMUNITY RULES ON THE COMMON ORGANIZATION OF THE MARKETS .

- SUCH INCOMPATIBILITY WOULD , HOWEVER , EXIST IF AND IN SO FAR AS THE DUTY HAD THE EFFECT OF IMPEDING THE PROPER FUNTIONING OF THE MACHINERY ESTABLISHED AS PART OF THE RELEVANT COMMON ORGANIZATIONS FOR THE FORMATION OF COMMON PRICES AND TO REGULATE MARKET SUPPLIES .

- IT IS FOR THE NATIONAL COURT TO DECIDE WHETHER , AND IF SO TO WHAT EXTENT , THE DUTY WHICH IT IS CALLED UPON TO CONSIDER HAS IN FACT HAD SUCH EFFECTS .

- A DUTY SUCH AS THAT DESCRIBED ABOVE , EVEN IF IT IS APPLIED TO BOVINE ANIMALS EXPORTED ON THE HOOF WHEN THEY ARE DELIVERED FOR EXPORT , DOES NOT FALL WITHIN THE PROHIBITION OF CHARGES HAVING AN EFFECT EQUIVALENT TO CUSTOMS DUTIES ON EXPORTS IF IT IS ALSO APPLIED , SYSTEMATICALLY AND IN ACCORDANCE WITH THE SAME CRITERIA , TO BOVINE ANIMALS WHICH ARE NOT BEING EXPORTED , AT THE TIME OF THEIR DELIVERY FOR SLAUGHTER .