1 BY ORDER OF 22 JANUARY 1976 , WHICH REACHED THE COURT REGISTRY ON 26 JANUARY 1976 , THE GIUDICE CONCILIATORE HAS REFERRED TO THE COURT OF JUSTICE FOR A PRELIMINARY RULING FOUR QUESTIONS ON THE INTERPRETATION AND VALIDITY OF REGULATION NO 648/73 OF THE COMMISSION OF 1 MARCH 1973 LAYING DOWN DETAILED RULES FOR THE APPLICATION OF ' MONETARY ' COMPENSATORY AMOUNTS ( OJ L 64 , OF 9.3.1973 , P . 1 ) AND REGULATION NO 905/73 OF THE COMMISSION OF 23 MARCH 1973 FIXING THE AMOUNT BY WHICH THE ' MONETARY ' COMPENSATORY AMOUNTS ARE TO BE ADJUSTED ( OJ L 92 , OF 7.4.1973 , P . 1 ).
2 THE QUESTIONS HAVE BEEN REFERRED TO THE COURT IN RELATION TO AN ACTION BETWEEN IRCA , THE PLAINTIFF IN THE MAIN ACTION , AND THE ITALIAN REVENUE AUTHORITIES . IRCA HAS CLAIMED THAT THE REVENUE AUTHORITIES SHOULD BE ORDERED TO REPAY A SUM WRONGLY ASSESSED FOR PAYMENT BY REASON OF THE FACT THAT CERTAIN COMPENSATORY AMOUNTS WITH WHICH IRCA OUGHT TO HAVE BEEN CREDITED HAD BEEN WRONGLY CALCULATED .
3 THE UNDERTAKING ARGUED THAT WHEN , ON 22 MARCH 1973 , IT IMPORTED 563 PARCELS OF FROZEN MEAT AND OFFALS OF BOVINE ANIMALS , THE CUSTOMS AUTHORITIES APPLIED THE PRESCRIBED CUSTOMS DUTY , NAMELY LIT . 1 563 570 , CREDITED THE UNDERTAKING WITH LIT . 1 506 780 BY WAY OF MONETARY COMPENSATORY AMOUNTS AND , AFTER SUBTRACTING THIS CREDIT FROM THE IMPORT CHARGE , WHICH IN THIS CASE CORRESPONDED TO THE CUSTOMS DUTY , CLAIMED PAYMENT OF THE DIFFERENCE , NAMELY LIT . 56 790 .
4 THE QUESTIONS REFERRED TO THE COURT SEEK ENLIGHTENMENT FIRST ON WHETHER THE COMMUNITY REGULATION ON WHICH THE REVENUE AUTHORITIES BASED THEIR CALCULATIONS ARE VALID , AND SECONDLY ON WHETHER THE RETROACTIVE EFFECT WHICH THE ADMINISTRATION ALLEGEDLY GAVE TO THOSE REGULATIONS IS COMPATIBLE WITH THE PRINCIPLES AND RULES OF THE COMMUNITY LEGAL ORDER .
5 IT IS APPROPRIATE TO EXAMINE FIRST THE QUESTIONS RELATING TO THE VALIDITY OF REGULATIONS NOS 648/73 AND 905/73 ( QUESTIONS 2 , 3 AND 4 ).
6 BEFORE GOING IN DETAIL INTO THE PROBLEMS RAISED BY THESE QUESTIONS , MENTION SHOULD BE MADE OF THE FACT THAT REGULATION NO 974/71 OF THE COUNCIL WAS AMENDED BY REGULATION NO 509/73 WHICH NOT ONLY ADDED ARTICLE 4A TO IT BUT CHANGED AND EXTENDED THE WHOLE SYSTEM BECAUSE OF WORLD-WIDE CURRENCY DISTURBANCES WHICH AFFECTED THE RATE OF EXCHANGE OF SEVERAL MEMBER STATES FROM 13 FEBRUARY 1973 ONWARDS .
7 THIS MODIFICATION RENDERED IT NECESSARY FOR THE COMMISSION TO REPLACE ITS OLD IMPLEMENTING REGULATION NO 1013/71 ( OJ L 110 , P . 8 ) BY REGULATION NO 648/73 . THE LATTER LAYS DOWN FIRST HOW THE COEFFICIENTS CORRESPONDING TO THE VARIATIONS IN THE RATES OF EXCHANGE ARE TO BE FIXED , AND SECONDLY HOW THE PRICES TO WHICH THESE COEFFICIENTS ARE TO BE APPLIED ARE TO BE DETERMINED BY PROVIDING , IN ARTICLE 5 , THAT : ' A BASIC COMPENSATORY AMOUNT SHALL BE FIXED FOR EACH MEMBER STATE FOR WHICH THE CONDITIONS SET OUT IN ARTICLE 1 OF REGULATION ( EEC ) NO 974/71 ARE FULFILLED ' . THUS THE TWO FACTORS NECESSARY FOR CALCULATING THE MONETARY COMPENSATORY AMOUNTS ARE FIXED BY THE COMMISSION SO AS TO ENSURE THAT THE SYSTEM SET UP IS APPLIED IN A PROMPT AND UNIFORM MANNER .
8 NEXT , REGULATION NO 649/73 OF THE COMMISSION OF 1 MARCH 1973 FIXING THE ' MONETARY ' COMPENSATORY AMOUNTS ( OJ L 64 , P . 7 ) IN THE FORM ADOPTED AND PUBLISHED , PROVIDES IN ARTICLE 1 : ' WITHOUT PREJUDICE TO THE PROVISIONS OF ARTICLE 4A ( 2 ) OF REGULATION ( EEC ) NO 974/71 ' MONETARY ' COMPENSATORY AMOUNTS SHALL BE ARRIVED AT AS FOLLOWS : 1 . THE BASIC AMOUNTS SHOWN IN ANNEX I FOR THE MEMBER STATE CONCERNED SHALL BE MULTIPLIED BY THE COEFFICIENT SHOWN IN ANNEX II . . . '
9 ARTICLE 6 OF REGULATION NO 648/73 PROVIDES : ' 1 . FOR THE PURPOSES OF APPLYING ARTICLE 4A ( 2 ) OF REGULATION ( EEC ) NO 974/71 THE COMMISSION SHALL FIX THE AMOUNTS BY WHICH THE ' MONETARY ' COMPENSATORY AMOUNTS ARE TO BE ' ADJUSTED ' . 2 . THE AMOUNTS FIXED PURSUANT TO PARAGRAPH ( 1 ) SHALL BE ALTERED AT REGULAR INTERVALS IF THIS IS RENDERED NECESSARY BY CHANGES IN THE CHARGE ON IMPORTS FROM THIRD COUNTRIES ' .
10 PURSUANT TO THIS PROVISION , THE COMMISSION ADOPTED AND PUBLISHED ITS REGULATION NO 905/73 .
11 THE ANSWER TO THE QUESTION WHETHER REGULATIONS NOS 648/73 AND 905/73 OF THE COMMISSION WERE ADOPTED IN ACCORDANCE WITH ARTICLES 4A AND 6 OF REGULATION NO 974/71 OF THE COUNCIL IS THAT THOSE REGULATIONS WERE PROPERLY ADOPTED , PARTICULARLY WHEN ACCOUNT IS TAKEN OF THE EXCEPTIONALLY WIDE TERMS OF ARTICLE 6 OF REGULATION NO 974/71 , WHICH REQUIRES THE COMMISSION TO ADOPT DETAILED RULES FOR APPLICATION AND PROVIDES THAT THOSE DETAILED RULES SHALL COVER IN PARTICULAR THE FIXING OF THE COMPENSATORY AMOUNTS .
12 THE THIRD QUESTION ASKS WHETHER THE VALIDITY OF REGULATIONS NOS 905/73 AND 648/73 IS NOT AFFECTED BY THE FACT THAT ' THEIR IMPLEMENTATION PUTS ITALIAN IMPORTERS IN A DIFFERENT SITUATION IN COMPARSION WITH IMPORTERS BELONGING TO COUNTRIES WITH A STRONG CURRENCY , AND . . . THEY ALWAYS INVOLVE A DIVERGENCE UNFAVOURABLE TO ITALIAN IMPORTERS BETWEEN THE VALUE CALCULATED AS A LUMP SUM BY THE COMMUNITY FOR THE ' MONETARY ' COMPENSATORY AMOUNTS AND THE VALUE DETERMINED BY THE ITALIAN CUSTOMS AUTHORITIES UPON IMPORTATION '
13 THE REASON WHY THE IMPORTERS AND EXPORTERS OF THE DIFFERENT MEMBER STATES ARE PUT IN DIFFERENT SITUATIONS IS TO BE FOUND NOT IN THE APPLICATION OF THE SYSTEM OF COMPENSATORY AMOUNTS BUT IN THE CIRCUMSTANCES WHICH LED TO ITS INTRODUCTION , NAMELY THE MOVEMENTS OF NATIONAL CURRENCIES BEYOND THE LIMITS OF FLUCTUATION AUTHORIZED BY INTERNATIONAL RULES . THE VERY PURPOSE OF THE SYSTEM OF COMPENSATORY AMOUNTS IS TO PREVENT THESE CURRENCY MOVEMENTS FROM DISTURBING THE FUNCTIONING OF THE COMMON AGRICULTURAL POLICY . HOWEVER IT WOULD BE EXPECTING TOO MUCH TO REQUIRE THE SYSTEM OF COMPENSATORY AMOUNTS TO ELIMINATE COMPLETELY THE DIFFERENCES IN SITUATION OF IMPORTERS OR EXPORTERS IN THE MEMBER STATES AND TO SHELTER THEM FROM ALL THE CONSEQUENCES OF THE VARIATIONS IN THE RATES OF EXCHANGE OF THE NATIONAL CURRENCIES . MOREOVER , ALTHOUGH THE SYSTEM CHOSEN MAY IN CERTAIN CASES PLACE ITALIAN IMPORTERS IN AN UNFAVOURABLE SITUATION COMPARED WITH IMPORTERS OF OTHER MEMBER STATES , THE SAID SYSTEM MAY , FOR THE SAME REASONS , HAVE THE REVERSE EFFECT AS REGARDS EXPORTERS .
14 THEREFORE THE VALIDITY OF THE REGULATIONS IN QUESTION CANNOT BE AFFECTED BY THE FACTS SET OUT IN THE THIRD QUESTION .
15 THE FOURTH QUESTION ASKS WHETHER THE SAID REGULATIONS ' ARE . . . VALID ALTHOUGH THEY INTRODUCE A DIFFERENCE IN THE APPLICATION OF MONETARY MEASURES BETWEEN TRADE IN THE MEAT OF BOVINE ANIMALS AND THAT IN OTHER PRODUCTS COMING UNDER THE AGRICULTURAL REGULATIONS ' . IN THIS CONNEXION THE NATIONAL COURT STATES THAT THE SUPPOSED IMPOSSIBILITY OF DETERMINING THE VALUE FOR TAX PURPOSES OF THE GOODS IMPORTED DOES NOT APPLY TO ITALY , WHERE , FOR THE REASONS SET OUT IN THE QUESTION , NO SUCH IMPOSSIBILITY EXISTS .
16 IT IS NOT CORRECT THAT REGULATION NO 905/73 ONLY COVERS BEEF AND VEAL , AS ANNEXES I AND II THERETO COMPRISE A PART A RELATING TO CEREALS AND A PART B RELATING TO BEEF AND VEAL . IT FOLLOWS THAT THAT REGULATION IS NOT AN EXCEPTIONAL MEASURE ADOPTED FOR BEEF AND VEAL ALONE , BUT CONSTITUTES A GENERAL MEASURE IMPLEMENTING ARTICLE 4A OF REGULATION NO 974/71 FOR THE AGRICULTURAL PRODUCTS WHICH THAT ARTICLE WAS INTENDED TO COVER .
17 HOWEVER , THE PLAINTIFF IN THE MAIN ACTION ALLEGES THAT THE WAY IN WHICH ARTICLE 4A IS APPLIED BY REGULATION NO 905/73 IS UNACCEPTABLE AS REGARDS BEEF AND VEAL BECAUSE , CONTRARY TO THE PROVISIONS GOVERNING THE OTHER AGRICULTURAL PRODUCTS , THE COMMON CUSTOMS TARIFF DOES NOT SET A FIXED RATE CALCULATED BY WEIGHT ON THE IMPORTATION OF BEEF AND VEAL , BUT AN AD VALOREM DUTY OF 10 % .
18 NEVERTHELESS BOTH REGULATION NO 649/73 AND REGULATION NO 905/73 RESPECTIVELY SET FOR BEEF AND VEAL A BASIC AMOUNT AND AN ADJUSTING AMOUNT UNDER ARTICLE 4A OF REGULATION NO 974/71 . THESE AMOUNTS DO NOT REFLECT THE VALUE OF SPECIFIC GOODS . THEREFORE , IN THE CASE OF AN IMPORTATION OF BEEF AND VEAL OF A VALUE HIGHER THAN THE AVERAGE OF WORLD-WIDE PRICES WHICH DETERMINES THE BASIC AMOUNT AND THE ADJUSTING AMOUNTS , A DIFFERENCE WOULD ARISE INVOLVING A REQUIREMENT FOR THE IMPORTER TO PAY A PORTION OF THE CUSTOMS DUTIES NOTWITHSTANDING THE FACT THAT THE TRUE VALUE OF THE GOODS OUGHT , IT IS ARGUED , TO ENTITLE HIM TO A MORE FAVOURABLE CALCULATION OF THE COMPENSATORY AMOUNTS .
19 THE WHOLE SYSTEM OF MONETARY COMPENSTORY AMOUNTS IS FOUNDED ON THE PRINCIPLE THAT THESE AMOUNTS ARE NOT BASED ON THE PRICES IN FACT PAID FOR THE GOODS , BUT ON BASIC AMOUNTS FIXED BY THE COMMISSION FROM WEEK TO WEEK . ALTHOUGH THIS PRINCIPLE MAY BRING ABOUT DISADVANTAGES IN INDIVIDUAL CASES NOT ONLY IN THE BEEF AND VEAL SECTOR , BUT AS REGARDS ALL THE AGRICULTURAL PRODUCTS CONCERNED , IT IS NEVERTHELESS UNAVOIDABLE BECAUSE OF THE NECESSITY OF MAINTAINING UNIFORMITY IN ITS APPLICATION AND OF ENSURING THAT IT IS ADMINISTERED WITH THE UTMOST POSSIBLE DESPATCH .
20 MOREOVER THIS PRINCIPLE IS THE ONE MOST IN LINE WITH THE PURPOSE OF THE SYSTEM , WHICH IS NOT TO INDEMNIFY THE PARTIES CONCERNED AGAINST THE CONSEQUENCES OF DISTURBANCES ON THE WORLD CURRENCY MARKETS , BUT TO RENDER THE FUNCTIONING OF THE COMMON ORGANIZATIONS OF AGRICULTURAL MARKETS POSSIBLE NOTWITHSTANDING THE FLUCTUATIONS OF THE CURRENCIES OF THE MEMBER STATES .
21 FURTHERMORE AN EXCEPTION SUCH AS THE ONE SUGGESTED BY THE PLAINTIFF WOULD MEET WITH GRAVE DIFFICULTIES , SINCE AS REGARDS INTRA-COMMUNITY TRADE GOODS ARE VALUED ACCORDING TO CRITERIA WHICH ARE NOT UNIFORM .
22 IT FOLLOWS FROM THE FOREGOING THAT THE QUESTIONS REFERRED TO THE COURT OF JUSTICE BY THE NATIONAL COURT HAVE DISCLOSED NO FACTOR OF SUCH A KIND AS TO AFFECT THE VALIDITY OF REGULATIONS NOS 648/73 AND 905/73 .
23 THE FIRST QUESTION ASKS WHETHER REGULATION NO 905/73 PUBLISHED IN THE OFFICIAL JOURNAL OF 7 APRIL 1973 COULD BE APPLIED TO AN IMPORTATION WHICH TOOK PLACE ON THE PRECEDING 22 MARCH AND , IF SO , WHETHER THERE EXISTS UNDER THE COMMUNITY LEGAL SYSTEM A PRINCIPLE OR A RULE ALLOWING THE COMMUNITY AUTHORITIES TO ADOPT RETROACTIVE LEGISLATION .
24 THE PURPOSE AND ORGANIZATION OF THE SYSTEM OF MONETARY COMPENSATORY AMOUNTS MAKE IT INEVITABLE THAT THE AMOUNTS APPLICABLE FOR A CERTAIN PERIOD SHALL ONLY BE FIXED AFTER THE EVENT , SINCE IN THE NATURE OF THINGS THE DECISIVE FACTORS CAN IN GENERAL ONLY BE DETERMINED TOWARDS THE END OF THAT PERIOD . SUCH IN PARTICULAR IS THE CASE CONCERNING PERIODS DURING WHICH EITHER RATES OF EXCHANGE OR WORLD PRICES ARE SUBJECT TO CONSIDERABLE VARIATIONS . THEREFORE SUCH A FIXING OF COMPENSATORY AMOUNTS FOR PERIODS WHICH HAVE ALREADY COME TO AN END AT THE TIME WHEN THE FIXING TAKES PLACE CANNOT BE DESCRIBED AS RETROACTIVE APPLICATION . MOREOVER THE PREVIOUS RULES ON THE SAME SUBJECT-MATTER CONFIRM THE FOREGOING AND MAKE IT CLEAR THAT THE INTERESTED PARTIES MUST FOR A LONG TIME HAVE BEEN AWARE OF THE NEEDS OF THE MACHINERY INTRODUCED .
25 IT SHOULD BE NOTED THAT THE SYSTEM OF COMPENSATORY AMOUNTS WAS NOT INTRODUCED BUT ONLY AMENDED BY REGULATIONS NOS 509/73 AND 648/73 . THE LAST APPLICATION OF THE PREVIOUS SYSTEM , NAMELY REGULATION NO 450/73 OF THE COMMISSION OF 6 FEBRUARY 1973 , FIXING THE MONETARY COMPENSATORY AMOUNTS FOR CERTAIN CEREALS , MUST HAVE CEASED TO BE EFFECTIVE BY REASON OF THE ENTRY INTO FORCE , ON 26 FEBRUARY 1973 , OF THE AMENDMENT TO REGUALTION NO 974/71 MADE BY REGULATION NO 509/73 .
26 IT WAS THEREFORE NECESSARY , IN ORDER THAT THERE BE NO DISCONTINUITY IN THE APPLICATION OF A SYSTEM WHICH HAD BECOME ESSENTIAL TO THE FUNCTIONING OF THE COMMON AGRICULTURAL POLICY , TO ADOPT RULES AND TO FIX AMOUNTS FOR THE PERIOD SUBSEQUENT TO THAT DATE . IN THESE CIRCUMSTANCES REGULATIONS NOS 648/73 AND 649/73 COULD ONLY PROVIDE THAT THEY WERE TO APPLY WITH EFFECT FROM 26 FEBRUARY 1973 . MOREOVER , AS HAS JUST BEEN STATED , SUCH A FIXING OF THE COMPENSATORY AMOUNTS AFTER THE EVENT WAS INHERENT IN THE NATURE OF THE SYSTEM .
27 HOWEVER , THE AMOUNTS LAID DOWN BY REGULATION NO 649/73 HAD TO BE ADJUSTED IN ACCORDANCE WITH ARTICLE 4A OF REGULATION NO 974/71 , AS ARTICLE 1 OF THE FIRST OF THOSE REGULATIONS EXPRESSLY PROVIDES . THESE ADJUSTMENTS FORMED AN INTEGRAL PART OF THE AMOUNTS FIXED BY REGULATION NO 649/73 AND THE REGULATIONS WHICH FOLLOWED IT , EVEN THOUGH THE FIXING THEREOF TOOK PLACE AFTER A CERTAIN UNDERSTANDABLE DELAY .
28 SINCE , IN THE CIRCUMSTANCES SET OUT ABOVE , IT IS APPROPRIATE TO RECOGNIZE THAT REGULATION NO 649/73 VALIDLY APPLIED WITH EFFECT FROM 26 FEBRUARY 1973 ALTHOUGH IT WAS ONLY PUBLISHED ON 9 MARCH 1973 , IT FOLLOWS THAT THE SAME MUST BE TRUE OF REGULATION NO 905/73 WHICH CONSTITUTES THE NECESSARY COMPLEMENT OF REGULATION NO 649/73 , AND WHICH WAS FORESEEABLE FROM THE DAY WHEN REGULATION NO 509/73 WAS PUBLISHED .
29 IT FOLLOWS FROM ALL THE FOREGOING THAT IT IS RIGHT TO STATE THAT WITH REGARD TO MONETARY COMPENSATORY AMOUNTS THE FACT THAT THE FACTORS NECESSARY FOR THEIR CALCULATION ARE ONLY DETERMINED AFTER THE PERIOD DURING WHICH THE SAID AMOUNTS HAVE BECOME APPLICABLE IS FREQUENTLY INHERENT IN THE SYSTEM ITSELF , PARTICULARLY AT A TIME OF SUDDEN AND UNFORESEEABLE CHANGES IN MARKET CONDITIONS , AND CANNOT , THEREFORE , BE CONSIDERED , ON SUCH GROUNDS , AS GIVING THE RULES A RETROACTIVE EFFECT .