1 BY ORDER OF 28 APRIL 1970 RECEIVED AT THE COURT ON 28 MAY 1970, THE HESSISCHER VERWALTUNGSGERICHTSHOF, BY VIRTUE OF ARTICLE 177 OF THE EEC TREATY, HAS ASKED THE COURT TO GIVE A RULING ON " THE VALIDITY OF REGULATION NO 102/64/EEC OF THE COMMISSION OF 28 JULY 1964 ON IMPORT AND EXPORT LICENCES FOR CEREALS AND PROCESSED CEREAL PRODUCTS, RICE, BROKEN RICE AND PROCESSED RICE PRODUCTS ( OJ 1964, P . 2125 ) AND, IN PARTICULAR, ON THE QUESTION WHETHER ARTICLES 1 AND 7 OF THAT REGULATION ARE VALID IN SO FAR AS THEY RELATE TO EXPORT LICENCES AND DEPOSITS LODGED FOR THE PURPOSE OF OBTAINING EXPORT LICENCES " .
2 IN ITS JUDGMENT GIVEN TODAY IN CASE 25/70 THE COURT HAS RULES THAT EXAMINATION OF THE QUESTION PUT BY THE HESSISCHER VERWALTUNGSGERICHTSHOF HAS NOT REVEALED ANY FACTOR CAPABLE OF AFFECTING THE VALIDITY OF THE PROVISIONS REFERRED TO .
3 HOWEVER, IN THIS CASE THE COURT IS ALSO ASKED IN ONE OF THE QUESTIONS SUBORDINATE TO THE PRINCIPAL QUESTION TO RULE WHETHER THE PROVISIONS OF ARTICLE 7 ( 1 ) OF REGULATION NO 102/64 ARE VALID IN A CASE " IN WHICH THE DEPOSIT IS LODGED FOR THE PURPOSE OF OBTAINING EXPORT LICENCES IN RESPECT OF WHICH THE AMOUNT OF THE REFUND HAS BEEN FIXED IN ADVANCE ".
4 UNDER THE TERMS OF THE SECOND INDENT OF ARTICLE 7 ( 1 ) OF REGULATION NO 102/64 THE DEPOSIT IS TO BE 5 UNITS OF ACCOUNT PER 1 000 KG IN CASES WHERE THE AMOUNT OF THE REFUND HAS BEEN FIXED IN ADVANCE . ACCORDING TO THE DEFENDANT IN THE MAIN ACTION, THIS AMOUNT, WHICH REPRESENTS A MULTIPLE OF THE DEPOSIT LAID DOWN IN CASES WHERE THE REFUND IS NOT FIXED IN ADVANCE, CONSTITUTES AN EXCESSIVE BURDEN, UNRELATED TO THE REAL OBJECTIVE OF THE SYSTEM OF DEPOSITS .
5 IT CANNOT BE DENIED THAT AS A PRINCIPLE IT IS NECESSARY TO FIX THE AMOUNT OF THE DEPOSIT REQUIRED IN THE CASE OF " ADVANCE FIXING " OF THE REFUND AT A HIGHER LEVEL THAN IN THE CASE OF A TRANSACTION GIVING RISE TO THE APPLICATION OF THE REFUND APPLICABLE ON THE DAY OF EXPORTATION . AS THE SYSTEM OF ADVANCE FIXING WAS CREATED IN THE INTERESTS OF TRADE, IT WAS NECESSARY TO PROVIDE AT THE SAME TIME, IN THE SCHEME OF THE REGULATION, FOR ADEQUATE GUARANTEES TO ELIMINATE THE POSSIBILITY THAT MACHINERY OF THE COMMON ORGANIZATION OF THE MARKETS MIGHT BE UPSET BY SPECULATION MADE POSSIBLE BY THE INTRODUCTION OF THIS OPTION .
6 TO THAT END, THE DEPOSIT WAS FIXED IN SUCH A MANNER AS TO TAKE INTO ACCOUNT PRICE TRENDS AND CONSEQUENTLY THE VARIATION IN REFUNDS DURING THE PERIOD OF VALIDITY OF THE EXPORT LICENCE . THE AMOUNT OF THE DEPOSIT MUST BE SUFFICIENT TO TAKE AWAY FROM EXPORTERS ANY INTEREST, AS THE PRICES ON THE EXTERNAL MARKETS VARY, IN CHANGING THEIR EXPORT PLANS AS THEY ARE APPARENT FROM THE LICENCES APPLIED FOR AND ISSUED . IT APPEARS THEREFORE THAT THE REQUIREMENT OF A HIGHER DEPOSIT IN CASES OF ADVANCE FIXING OF THE REFUND IS A METHOD NECESSARY TO GUARANTEE COMPLIANCE ON THE PART OF EXPORTERS WITH THE OBLIGATION ATTACHED TO THE ISSUE OF THE LICENCE AND THEREBY TO ENSURE THE ACCURACY OF THE FORECASTS OF FUTURE MARKET TRENDS .
7 TAKING INTO ACCOUNT THE SIYE OF PRICE FLUCTUATIONS WHICH CAN OCCUR ON THE MARKETS IN QUESTION, THIS AMOUNT IN NO WAY APPEARS EXCESSIVE . FURTHERMORE, DETERMINATION OF THE AMOUNT OF THE DEPOSIT FALLS WITHIN THE DISCRETION OF THE AUTHORITY HAVING THE POWER TO ADOPT REGULATIONS IN THE MATTER .