C-244/78
ECLI:EU:C:1979:198
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JUDGMENT OF 12. 7. 1979 — CASE 244 /78
In Case 244/78
REFERENCE to the Court under Article 177 of the EEC Treaty by the Tribunal de Commerce, Paris, for a preliminary ruling in the action pending before that court between
UNION LAITIERE NORMANDE, a group of agricultural co-operatives, Condé- sur-Vire,
and
FRENCH DAIRY FARMERS LIMITED, London,
on the interpretation of certain provisions in Regulation No 1411/71 of the Council of 29 June 1971 (Official Journal, English Special Edition, 1971, (II), p. 412), as amended by Council Regulation, No 566/76 of 15 March 1976 (Official Journal 1976, L 67, p. 23) regarding imports into the United Kingdom of standardized whole milk, UHT treated, coming from France,
THE COURT
composed of: H. Kutscher, President, J. Mertens de Wilmars and Lord Mackenzie Stuart (Presidents of Chambers), P. Pescatore, M. Sørensen, A. O'Keeffe, G. Bosco, A. Touffait and T. Koopmans, Judges,
Advocate General: H. Mayras Registrar: A. Van Houtte
gives the following
JUDGMENT
Facts and Issues
I — Facts and procedure milk products established by Regulation No 804/68 of the Council of 27 June 1. Milk is subject to the common 1968 (Official Journal, English Special organization of the market in milk and Edition 1968 (I), p. 176).
UNION LAITIERE NORMANDE v FRENCH DAIRY FARMERS
Regulation No 1411/71 of the Council non-standardized whole milk shall of 29 June 1971 (Official Journal, not prohibit, without prejudice to English Special Edition 1971 (II), p. requirements for the protection of 412), adopted as part of that organi public health: zation, lists in Article 3 (1) (a) and (b) the products to which it applies, that is (a) the preparation within its to say "milk" and "drinking milk", the territory of standardized whole latter including "raw milk", "whole milk for sale within the territory milk", "semi-skimmed milk" and of another Member State which "skimmed milk". The second indent of has opted for the latter formula; subparagraph (b) of that provision, amended and supplemented by Council (b) the marketing within its territory Regulation No 566/76 of 15 March of standardized whole milk 1976 (Official Journal 1976, L 67, p. 23) coming from another Member provides that the term "whole milk" State, when the fat content of within the meaning of these rules such milk is not less than a comprises two formulae: "standardized guideline figure fixed by the whole milk" and "non-standardized Council acting on a proposal whole milk". from the Commission in accordance with the voting Article 1 of Regulation No 566/76 procedure laid down in Article shows that "standardized" whole milk 43 (2) of the Treaty. differs from "non-standardized" whole milk in that the fat content of the first 7. The guideline figure in paragraph 6 (at least 3 . 50 %) may be constituted by (b) shall be fixed by 1 January of additives, whereas that of the second (at each year for the following milk least 3 % must not be the result of any year. However, it shall be fixed in alteration whatsoever since the milking 1976 for the period from 1 October stage. Ireland and the United Kingdom 1976 until the end of the 1976/77 opted for the formula of non-stan milk year. dardized whole milk. The guideline figure shall be fixed In addition, Article 3 of Regulation No for each Member State which opts for the formula of non-standardized 1411/71, as amended by Regulation No 566/76, makes the following provisions whole milk; it shall be the weighted for "whole milk", standardized or non- average fat content of the whole standardized, in paragraphs (5) to (7): milk produced and marketed in the Member State in question during the previous year." "5. With regard to whole milk, Member States shall apply within their territories, as from 1 October 1976 The guideline figure referred to in at the latest, one of the two paragraph (6) (b) above, for the milk formulae set forth in the second year 1978/1979, is 3.78% for the indent of paragraph 1 (b). They shall United Kingdom, according to Article 1 decide on the formula for their of Council Regulation No 300/78 of territory by 1 July 1976 and shall 13 February 1978 (Official Journal 1978, inform the Commission accordingly L 45, p. 5). on or before that date.
British Statutory Instrument 1976 No 6. As from 1 October 1976, a Member 1883 (Drinking Milk Regulations 1976) State that opts for the formula of applies Regulation No 1411/71, as
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amended by Regulation No 566/76, to packaging of milk, in particular Regu the United Kingdom. lation 30 (2) of Statutory Instrument No 277 of 17 February 1959 concerning milk and milk products (The Milk and Dairies (General) Regulations, 1959) amended 2. The Union Laitière Normande by Statutory Instrument No 1033 of 16 (hereinafter referred to as "the U.L.N.") June 1977 (The Milk (Special which was incorporated under French Designation) Regulations 1977). law in the form of a group of agri cultural co-operatives, made a contract on 1 June 1978 with French Dairy A letter of 20 July 1978 from the Farmers Ltd. (hereinafter referred to as Ministry of Agriculture, Fisheries and "F.D.F."), a company incorporated Food informed the company that stan under English law, for supplies of stan dardized whole milk with a fat content dardized whole milk with a fat content of 3.78% can only be imported and higher than 3.78 %, treated by the marketed in the United Kingdom if it is process known as ultra-high temperature there given ultra-high temperature (UHT) treatment and produced in treatment and packaged on registered France. premises. The Ministry added that the information it was giving only dealt with regulations which directly impinged on Under the terms of the contract F.D.F. imported milk, and that there were other agreed to buy, for collection before regulations applicable to "domestic" 30 September 1978, 300 000 litres of sales of milk, such as the Milk (Great packaged UHT milk, in brick-shaped Britain) Order 1977, as amended, and packs of one litre, in cartons of 12 packs. the 1963 weights and measures provisions (Weights and Measures Act 1963) which specified the permitted sizes of retail containers. A first consignment of 144 cartons was sent by the U.L.N, on 12 June 1978, but was returned by F.D.F. on the same day Not having a dealer's licence, F.D.F. on the ground that an import licence decided according to a letter dated from the British Ministry of Agriculture 12 September 1978 to take steps to was required to import the goods into terminate the contract. the United Kingdom, by virtue of Article 5 (1) of the Importation of Carcases and Animal Products Order 1972 of 29 February 1972 (made under the The U.L.N, considered the arguments Diseases of Animals Act 1950). Later, the presented by F.D.F. invalid and brought U.L.N, made a second delivery of pre an action against it, by a writ issued on packed UHT milk, which could be 27 September 1978, before the Tribunal imported into the United Kingdom de Commerce, Paris, for non-per under a licence granted to F.D.F. on 4 formance of the contract in question. August 1978. The latter found they were The U.L.N, based its action mainly on unable to market the milk, however, Article 30 of the Treaty and on the because the competent British provisions of Council Regulation No 566/76. administrative authority refused to grant the dealer's licence required for that purpose, on the ground that the imported product did not comply with In a judgment of 16 October 1978, the the British legislation on treatment and Tribunal de Commerce, Paris, decided to
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMERS
stay the proceedings and refer to the Member State compatible with the Court, under Article 177 of the EEC terms of Article 3 (6) of Regulation Treaty, the following questions for a No 1411/71 (as enacted by Article 2 preliminary ruling: of Council Regulation No 566/76), which stipulates requirements of public health as the only reservation I. Can Article 3 (6) of Regulation No in relation to intra-Community trade? 1411/71 (as enacted by Article 2 of Council Regulation No 566/76 of 15 March 1976), which provides that 5. Does the combined effect of the British national measures based on a Member State that opts for the formula of non-standardized whole reasons of protection of health and on milk shall not prohibit, without the application of the national weights prejudice to requirements for the and measures legislation constitute a protection of public health, ... the means of arbitrary discrimination or a marketing within its territory of stan disguised restriction on trade between dardized whole milk coming from Member States such as are prohibited another Member State, when the fat by Article 36 of the Treaty? content of such milk is not less than a guideline figure fixed by the Council ..., be interpreted, as the authorities 3. A certified copy of this judgment of the United Kingdom appear to do, was received at the Court Registry on 6 November 1978. as meaning that milk thus imported may be marketed only for purposes other than human consumption? The Union Laitière Normande, represented by Mr Funck-Brentano, Advocate at the Cour de Paris, the 2. Does the reservation concerning the protection of public health contained Government of the French Republic, in Article 3 (6) of Regulation No represented by its Agent, Guy de 1411/71 (as enacted by Article 2 of Lacharrière, Legal Adviser at the Regulation No 566/76) justify British Ministry for Foreign Affairs, the national legislation requiring the Government of the United Kingdom, reprocessing and repackaging of represented by W. H. Godwin, Treasury UHT milk produced and packaged in Solicitor's Office, and by Peter Scott and another Member State according to P. G. Langdon-Davies, and the Com methods which are identical to those mission of the European Communities, used in the United Kingdom and have represented by its Legal Advisers, Etienne Lasnet and Bjarne Hoff-Nielsen, been approved by the national submitted their written observations administrative authorities in that under Article 20 of the Protocol on the Member State? Statute of the Court of Justice of the EEC. 3. If the second question is answered in the negative, does the aforementioned Upon hearing the report of the Judge- British national legislation constitute a Rapporteur and the views of the measure having an effect equivalent to Advocate General, the Court opened the a restrictive measure prohibited by the oral procedure, after inviting the French Treaty? Government, the Government of the United Kingdom, the Union Laitière 4. Is the application of British weights Normande and the Commission of the and measures legislation to milk European Communities to give certain produced and packaged in another written explanations.
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II — Written observations sub The common organization of the market mitted under Article 20 of in milk, established by Regulation No the Protocol on the Statute 804/68 of 27 June 1968 and amended of the Court of Justice of by, in particular, Regulations No the EEC 1411/71 of 29 June 1971 and No 566/76 of 15 March 1976, precludes any- national rules which require the issue of an import licence and a dealer's licence. A — The Union Laitière Normande considers that the requirements imposed The British national requirements for the by British law on importers of milk, issue of these licences also constitute a especially standardized whole milk, are measure having an equivalent effect to a incompatible with Community law. The quantitative restriction which is not following are the requirements justified by any principle of Community concerned: law.
1. an import licence and a dealer's 2. (a) In view of the geographical licence must be obtained; position of the United Kingdom, the requirement that imports be made in bulk compels continental operators to 2. the standardized whole milk must be transport standardized whole milk in imported in bulk in order that it may special containers, which obviously be reprocessed and repackaged in complicates delivery of this product, as it Great Britain on premises registered can only be effected by sea. for the purpose; Indeed, any measure which subjects imports of foreign products to conditions 3. products must be packaged in pint different from, or more difficult to containers. satisfy than, those required for national products amounts to a measure having an effect equivalent to a quantitative restriction according to Commission 1. To import standardized whole milk Directive No 70/50 of 22 December into Great Britain a special licence is 1969. required under Article 5 (1) of the Importation of Carcases and Animal Products Order 1972. Whether or not (b) The obligation imposed on the product can be put on the market importers to carry out reprocessing and depends then on the grant of a dealer's repackaging of the product in Great licence, according to Regulation 30 (2) Britain on premises registered for the of Statutory Instrument No 277 on milk, purpose must be considered as a measure of 17 February 1959, supplemented by having an effect equivalent to a Statutory Instrument No 1033 of 16 June quantitative restriction, since it makes it 1977. impossible to market in Great Britain milk imported from another Member State, for the reprocessing and repack The case-law of the Court of Justice aging can only be carried out in British shows quite definitely that the territory on premises specially registered requirement of these two licences is for the purpose by local authorities, contrary to the principle of the free whose competence has certain territorial movement of goods. limits.
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMERS
It cannot be argued, as do the British were adopted for a purpose compatible authorities, that such an obligation is with the interests of the Community, and necessary to protect the life and health on condition that the restrictions they of consumers and that it is therefore impose are in proportion to that purpose. justified by Article 36 of the EEC Treaty.
That is not so in the case of the British regulations, the provisions of which are That article authorizes Member States in manifestly disproportionate to the fact to derogate from the rules purpose they are actually meant to concerning the free movement of goods achieve. for, among other reasons, the protection of health and life of humans and animals, provided that the measures adopted do not constitute a means of In fact they require subsequent heat arbitrary discrimination or a disguised treatment for whole milk which has restriction on trade between Member already been given ultra-high States. temperature treatment prior to expor tation from France, with apparatus made and licensed, moreover, in the United Because it makes an exception to one of Kingdom, and which is thus free of all contamination. In addition, this milk was the fundamental principles of the Common Market, Article 36 must be found on analysis by the British interpreted and applied strictly. The laboratory to satisfy the requirements of derogations from the free movement of the British legislation. goods for which it provides are allowed solely to the extent to which they prove to be indispensable for the protection of consumers. In the present instance, the British national provisions stipulating that stan dardized whole milk cannot be marketed until it has been reprocessed and Human health and life must obviously be repackaged in Great Britain on premises a primary concern of the national auth registered for that purpose constitute not orities, and it is for the Member States to merely a measure having an effect decide on the domestic measures which equivalent to a quantitative restriction should be taken to give full effect to this prohibited by the Treaty, but also a concern within the limits imposed by the means of arbitrary discrimination and a Treaty; but Member States may not disguised restriction on trade between adopt measures preventing imports Member States. which, but for such measures, would be allowed, including those which make importation more difficult or bur densome than marketing the national 3. Lastly, the obligation to market the product. imported milk in containers holding a pint or a multiple or sub-multiple thereof makes it more difficult, both now and in According to the case-law of the Court the future, to import into Great Britain of Justice, certain measures adopted by and is therefore a typical example of a States only escape the prohibition in measure having equivalent effect pro Articles 30 to 34 of the Treaty if they hibited by Community law.
JUDGMENT OF 12. 7. 1979 — CASE 244/78
Although Council Directive No 71/354 having an equivalent effect to a of 18 October 1971 (Official Journal, quantitative restriction, which must not English Special Edition 1971 (III), p. be applied to a product made up in 878) on the approximation of the laws of another Member State in which the units the Member States relating to units of of measurement in force already comply measurement, amended by Directive No with the provisions in the Community 76/770 of 27 July 1976 (Official Journal directives on harmonization. 1976, L 262, p.' 204) authorizes Great Britain to use the traditional British measures for packaging its national products until 31 December 1979, it cannot impose such measures on Next, the U.L.N. notes that the products coming from other Member combination of British national measures States which already comply with the referred to led the court making the directives on harmonization mentioned reference to the Court of Justice to ask above. whether Article 2 (6) of Regulation No 566/76 should be interpreted as auth orizing the marketing in Great Britain of standardized whole milk only for This interpretation is borne out by purposes other than human consumption. Article 5 of Council Directive No 75/106 dated 19 December 1974 (Official Journal 1975, L 42, p. 1) relating to the making-up by volume of certain prepackaged liquids, which In order to reply to this question, it is clearly states that "Member States may necessary to examine the Community not refuse, prohibit or restrict the placing text in the light of its actual scope and on the market of prepackages which effectiveness. Now, the effect of this satisfy the requirements ... laid down in regulation is to allow the marketing of this directive for reasons concerning the standardized whole milk in a Member volume of the contents ...". State which has opted for the formula of non-standardized whole milk, with no other requirement than compliance with the guideline figure for the fat content It would be unjust to force the U.L.N. to fixed for that country, and protection of sell in terms of the pint in order to public health. The true purpose of the comply with the British national weights regulation is thus to encourage the and measures legislation, for the burden development of the market in milk imposed on it would be excessive seeing between Member States. that from 1 January 1980 Great Britain will have to comply with the harmo nization directives mentioned above, and that it would therefore be unreasonable to create in the meantime a special The United Kingdom did not mention packaging line which could not possibly the requirements, which it now advances pay for itself in such a short time. in Statutory Instrument 1976 No 1885 giving effect to Regulation No 566/76. A purely national regime for milk producers in the United Kingdom can Thus the obligation to sell by the pint not be applied to Common Market should be considered as a measure operators.
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMERS
The U.L.N. claims accordingly that the But the British regulations provide that Court of Justice should declare that to market this product within the Article 30 et seq. of the Treaty and territory of the United Kingdom a Article 2 (6) of Council Regulation No dealer's licence must also be granted 566/76 invalidate the British national which requires the milk to be given heat provisions at issue in the main dispute, treatment a second time on registered since these measures are measures having premises and to be "repackaged", which an equivalent effect to quantitative means that the imported milk is placed in restrictions which are forbidden by the a less favourable competitive position. Treaty, and which are not covered by the exception allowed by Article 36 in the circumstances of this case (treatment of standardized whole milk in apparatus In those circumstances the United similar to that used in Great Britain and Kingdom market is a protected market. packaging on premises authorized by the The proof is that French exports of French national authorities). drinking milk to the United Kingdom are totally non-existent, whereas with other EEC countries they exceed 200 000 tonnes per year in the aggregate.
B — The French Government observes that, in the first place, the milk exported by the U.L.N. to the United Kingdom C — The Government of the United complies with the requirements of Regu Kingdom sets out to give full details of lation No 1411/71, as amended by the legislation at issue in the questions Regulation No 566/76, with regard in referred to the Court and to show that it particular to the fat content of whole in no way conflicts with provisions of milk, and of Council Regulation (EEC) Community law. It therefore omits to No 300/78 fixing, as provided in the deal initially with the problem of above-mentioned regulation, the admissibility of the questions in the form guideline figure for the fat content of in which they are put. standardized whole milk imported into Ireland and the United Kingdom.
The United Kingdom legislation which affects the importation of the plaintiff company's milk falls under three Moreover, this milk had all the headings: guarantees as to quality necessary for the protection of public health. For that purpose, the United Kingdom grants import licences only on condition that — protection of animal health; the heat treatment given to UHT milk meets the British standards, which are higher than the French ones. France agreed to comply with those standards. Specific tests were carried out in the — protection of human health; processing plants and a veterinary certi ficate was issued certifying that the conditions required by British regulations had been met. — regulation of quantities.
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The United Kingdom considers that the Regulations by the appropriate local requirements imposed by its legislation in authority. The local authority can only relation to the protection of human and register premises in its own district. animal health are essential. On. the other hand, it considers that the requirement as to selling the product by the pint and not by the litre is not particularly important Section 37 (1) of the Food and Drugs but it is one which is not, at present, Act 1955 provides that the use of a incompatible with Community law. "special designation" is obligatory for the purpose of sales of milk for human consumption. Section 36 (1), however, provides that no person shall use a special designation for a designated area As to the requirements concerning the unless he holds a licence authorizing the protection of animal health (the use of that designation. Regulation 4 of provisions which the British Government the Milk (Special Designation) Regu discusses first because they are the ones lations 1977 requires any person who which most affected the plaintiff's plans intends to use in relation to milk a to import), milk imported into the special designation authorized by the United Kingdom has been controlled regulations to apply in writing to the since 1954. The milk is required to be licensing authority for a licence. heat-treated before it is imported to prevent the risk of spreading animal disease. It was for this reason that an import licence setting out the milk to be By Regulation 6 the licence is to be imported had to be obtained. Such a subject to the general conditions set out licence was duly granted, and no in Schedule 1 and (in this case) Part IV complaint was made in this connexion. of Schedule 2 to the regulations (which sets out in detail the requirements for the ultra-high temperature treatment).
The legislation for the protection of human health applies equally to imported The result of this legislation is that no and to home-produced milk. local authority has power to grant a licence to sell milk for human consumption as "ultra-heat treated" if :
Regulation 30 (2) of the Milk and Dairies (General) Regulations, 1959, as — the milk has not been treated in the amended by Regulation 2 of the Milk manner described in Pan IV of and Dairies (General) (Amendment) Regulations 1977 provides that, with Schedule 2 to the 1977 Regulations, and exceptions immaterial to this case, every bottle or carton in which it is intended to deliver milk to consumers must be filled and closed on registered premises. Registered premises means dairies which — the treatment, filling and closing of have been inspected and registered under the canons has not been carried out Part III of the above-mentioned 1959 on registered premises.
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMERS
It is a basic principle of United Kingdom milk shall be prepacked only in food and drugs legislation that the quantities of one third of a pint, half a hygienic production and handling of all pint, or a multiple of half a pint. food should be ensured. Milk presents a particular hazard in this respect; its consumption in the United Kingdom is widely distributed and it is normally The milk prepacked by the U.L.N in drunk by the consumer without any one-litre canons does not comply with cooking or other processing. It is this requirement. essential, therefore, that it should come on to the market in a clean and safe condition. The United Kingdom is of the opinion that the questions referred to the Court really come down to asking whether the British legislation set out above is In general, this objective is achieved by compatible heat-treating the milk to ensure that it is free from infective agents. The first requirement, therefore, is to ensure that this treatment is carried out under (a) with Article 3 (6) of Regulation officially approved conditions at the (EEC) No 1411/71 of the Council, dairy, and that the milk is then packaged as substituted by Article 2 of Council and handled in ways which avoid any Regulation (EEC) No 566/76 or risk of re-contamination. This is achieved essentially by means of the registration and licensing system and by testing samples of milk at any time (b) with Articles 30 and 36 of the EEC before its delivery to the consumer. But Treaty read together. real safeguards can only be achieved by the application of all these procedures; merely testing by means of random samples is not sufficient. It is therefore Article 3 (6) of Regulation No 1411/71 essential to rely on a combination of requires the United Kingdom (as a testing and tight control over the Member State which has opted for the conditions under which the milk is formula of non-standardized whole processed and distributed. milk) not to prohibit the marketing within its territory of standardized whole milk coming from another Member State, provided that the fat content The United Kingdom is of the fulfuls certain requirements. But this considered opinion that in the absence of obligation is made expressly "without Community legislation harmonizing the prejudice to requirements for the standards of hygiene for milk, these protection of public health". requirements arc necessary in the interests of human health.
The requirements of the British public health legislation that the milk, once Lastly, the weights and measures imported, should be treated and packed legislation at present in force in the in the required manner, are not measures United Kingdom (namely the Weights having an effect equivalent to and Measures Act 1963) provides that quantitative restrictions on imports under
JUDGMENT OF 12. 7. 1979 — CASE 244/78
Article 30. Even if they were, they would legislation on this matter and respectfully be justified under Article 36 on the asks the Court to answer the second grounds of protecting the health and life question in the affirmative. of humans.
The form of the third question is open to Proceeding to examine the first question, objection, for it asks the Court to the Government of the United Kingdom express an opinion on the compatibility observes that it appears to be founded of a national measure with Community upon a misapprehension. The United la-., something which is outside its Kingdom does not, in fact, interpret sphere of jurisdiction. In effect, this Article 3 (6) of Regulation No 1411/71 question asks whether Articles 30 and 36 as meaning that milk imported under of the EEC Treaty read together prohibit that regulation "may be marketed only national legislation by one Member State for purposes other than human requiring the reprocessing and repacking consumption", but rather as permitting of UHT milk produced in another the importing State to require that the Member State according to methods existing rules of law for the protection of which are identical to those required by public health must be complied with the legislation of the first Member State. before the milk can be sold for human The United Kingdom Government consumption. considers that, for the reasons already given, the reply to this question should be in the negative. The second question is based on the premise that the milk is produced and The fourth question is again a question as packed in the exporting Member State to the compatibility of the United according to methods which are identical Kingdom legislation with Community to those used in the United Kingdom. But, as the Commission itself has legislation. recognized, practices vary as between one Member State and another. Until The requirement of the United Kingdom Community provisions are adopted for legislation that milk should be sold by heat-treating milk intended for human the pint is in conformity with the terms consumption, it is the United Kingdom of Article 7 (2) of Council Directive Government which is responsible for the 75/106/EEC on the approximation of health of the population of the United the laws of the Member States relating Kingdom. Without wishing to cast any to the making-up by volume of certain aspersions on the methods used by the pre-packaged liquids, which permits plaintiffs or on measures in force in any the United Kingdom to defer part of the Community, the United implementation of this directive (which Kingdom points out that in the absence will require the United Kingdom to of Community legislation it has no way permit pre-packaged milk made up in of ensuring that milk imported from quantities of one litre to be placed on the other Member States meets the market within its territory) until 31 requirements necessary for the protection December 1979. of human health.
This being so, it is in the submission of Therefore, until appropriate Community the United Kingdom impossible to measures are adopted, the United interpret Article 3 (6) of Regulation No Kingdom Government considers it 1411/71 as requiring the United necessary to maintain in force its own Kingdom to permit milk to be sold in a
UNION LAITIERE NORMANDE v FRENCH DAIRY FARMERS
pre-packed quantity which is, for the harmonization of the national legal time being, not required under systems on the protection of human and Community law. animal health has yet to be achieved. For this reason the national legislation remains in force as long as there are no Accordingly, the fourth question should binding Community rules and subject, of be answered in the affirmative, which course, to the application of the rules of means that the fifth question should be the Treaty. answered in the negative.
The first question which, as the Commission points out, really concerns D — The first point made by the Article 3 (6) of Regulation No 1411/71, Commission is that in the view of the as amended by Article 2 (6) of Regu consistent rulings by the Court in past lation No 566/76, is of doubtful cases it will not challenge the practical relevance, as the distinction admissibility of the questions even between human consumption and other uses is not relevant to the case. It is the though they concern, at least in part, the compatibility of national legislation with milk itself, not the use to which it is put, Community law. It then goes on to note which might present a danger to public that there is a provision in Article 22 (1) health. In any case it is easy to answer of the basic regulation for the sector of the question, seeing that Regulation No milk and milk products (Regulation No 1411/71 deals solely with drinking milk. 804/68 of the Council of 27 June 1968) Such milk can only be sold in the which expressly prohibits in the internal importing Member State (the United trade of the Community the levying of Kingdom in this case) if it meets the any customs duty or charge having guideline figure regarding fat content equivalent effect, and any quantitative which the Council has fixed for that Member State. restriction or measure having equivalent effect.
That does not imply, however, that the Member States must automatically allow It does not, however, contain any milk which meets the guideline figure provisions concerning the production regarding fat content so fixed to be and marketing of milk and milk imported. The provision in question products. expressly states that the national requirements for the protection of public health are still to apply. In spite of the proposals on the subject submitted to it by the Commission, to date the Council has adopted neither In the second and third questions the general rules concerning the quality and court making the reference asks whether marketing of milk, nor regulations national legislation requiring the concerning health problems in the reprocessing and repackaging of UHT production and marketing of heat- milk produced and packaged in another treated milk. Member State constitutes measures having an effect equivalent to quantitative restrictions and whether, if The Community legislation on the that is so, the latter, although prohibited quality and marketing of drinking milk is by Community law, may be justified therefore incomplete, the more so since under Article 36 of the Treaty.
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All the Member States have detailed therein (meaning, in this case: necessary health control regulations at all stages at for the protection of the health of which milk is distributed. The main regu humans and animals) but also appro lations applicable in this respect in the priate, that is to say, proportionate to the United Kingdom stipulate that all UHT end pursued. milk sold for consumption must be packaged in Britain on premises registered by the appropriate local auth The Commission thinks it is necessary to orities. This makes it practically give some details at this point about the impossible to market in Great Britain concept of UHT milk, the methods of UHT milk which has already been pre ultra-high temperature treatment and its packaged in another Member State, effects. By subjecting the milk to a especially as the British health authorities certain temperature for a very brief space are not authorized to inspect and, where of time, its freedom from infectious appropriate, register premises situated in germs and its long-term preservation can other Member States. The regulations be assured. are moreover of such a nature as to discourage in advance all imports, even future ones. The second question is expressly based by the court making the reference to the There cannot therefore be any doubt Court of Justice on the assumption of that these regulations answer to the fact that the national legislation requires concept of a measure having equivalent the reprocessing and repackaging of effect, as defined by the Court of Justice imported milk even when it has already in numerous judgments. been treated and packaged by the UHT method in conditions which are identical to those required in the importing It is accordingly appropriate to consider country. whether the restrictions thus imposed on the free movement of UHT milk may be authorized by Article 36 of the Treaty. It The Commission is of the opinion that is a fact that, in sectors where no in those circumstances the national provisions have been adopted by the measures in question here cannot be Community to harmonize health regu justified under Article 36. They lack the lations, Member States are still entitled requirement of necessity, because the to invoke the grounds given in Article 36 national authorities cannot act on the to derogate from the prohibition against basis of vague, generalized assumptions any measure having equivalent effect. In on the risks of contamination, notably by the sphere of UHT milk this harmo foot and mouth disease. Since the nization has not yet been achieved: that treatment required by British legislation is why Regulation No 1411/71 refers to is identical to that to which the product the protection of health provided for by Article 36. has been subjected prior to being imported into the United Kingdom, it would seem to be manifestly superfluous. But because it allows a derogation from the fundamental principle of the free movement of goods, Article 36 must It is, however, possible — adds the be given a strict interpretation. The Commission — that the UHT milk was measures which it authorizes must be not treated and packaged in the exporting only justified on the grounds mentioned country in conditions which, whilst not
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMERS
identical to those required by the If the British regulations are really based importing country, afford hygiene on considerations relating to health, it is guarantees as to protection from hard to see why the United Kingdom infectious germs which are in large authorities allow milk to be imported in measure equivalent to those of the bulk prior to being given UHT treatment importing country. This question was not in Britain, a fortiori, why they allow pre expressly asked by the court making the packaged cream — high-temperature reference but it would be useful to treated or even fresh — to be imported consider it in view of its importance. without requiring that product to be Obviously it is difficult to define the reprocessed and repackaged. Certainly equivalent guarantees, because in the no less a risk of contamination by absence of harmonization the concepts infectious diseases is present in these of health control vary from one country products than in the UHT milk, if the to another. But it does appear that the latter does in fact present such risks. treatment of milk is in large measure similar from one Member State to another and has the same essential effect; that is to say, the destruction of infectious germs which pose a threat to human and animal health.
Lastly, these measures are particularly restrictive in view of the fact that, contrary to what happens in most of the other Member States, they do not allow the health authorities in the importing country to check on the spot whether the apparatus used for treating and packaging UHT milk in the exporting country operates in exactly the same way But, says the Commission, even if real differences in the results of such UHT as that used in the importing country or treatment could be shown to exist be at least affords comparable health guarantees. tween Member States, the question arises whether that situation justifies the systematic nature of measures of the kind which gave rise to the main action. The authorities in the importing country require, in fact, that all imported milk, regardless of its place of origin, should be reprocessed and repackaged. Now, if As to the point raised by the fourth a Member State argues that the question, it has nothing whatsoever to do treatment carried out in the exporting with the proviso concerning the country and certified by the health auth protection of health mentioned in Article orities in that country really offers an 3 (6) of Regulation No 1411/71, as equivalent guarantee, the systematic amended by Regulation No 566/76. application of the restrictions may be That regulation is silent on the subject of inappropriate and excessive in relation to any requirements concerning weights the purpose of protecting health. Such and measures. That does not however measures ought to be applied to combat exclude the possibility that other a real, or highly probable, health risk, Community legislation may concern which can reasonably be disregarded in weights and measures which may have to the case of UHT treated milk. be complied with in packaging milk.
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The British legislation requires imported (1) Article 3 (6) of Regulation No milk to be prepackaged in quantities of 1411/71 of the Council of 29 June 1971, one third of a pint, half a pint or as amended by Regulation No 566/76 multiples of half a pint, which compels should be interpreted as applying only to importers to repackage all milk pre milk intended for human consumption. packaged for example in one-litre containers.
(2) & (3) Regulations requiring the As far as the Community is concerned, reprocessing and repackaging of UHT milk which has been treated and declares the Commission, the Council adopted a directive on 19 December packaged in another Member State, when such treatment and packaging has 1974 on the approximation of the laws of the Member States relating to the not been carried out on premises making-up by volume of certain pre registered for the purpose by the auth packaged liquids (Official Journal 1975 orities of the importing country and on that country's territory, constitute a L 42, p. 1). Among other products, milk falls within the sphere of application of measure having an effect equivalent to that directive, Article 5 of which provides quantitative restrictions on imports. that "Member States may not refuse, prohibit or restrict the placing on the Such measures having an effect market of pre-packages which satisfy the equivalent to quantitative restrictions are requirements and tests laid down in this not justified within the meaning of directive for reasons concerning the Article 36 of the EEC Treaty on the volume of the contents, the determi grounds of health protection so long as it nation of such volume or the methods by can be shown — and that is a matter to which they have been checked". For milk be decided individually in each case by in particular the directive refers to pre the national courts — that the UHT packaging in terms of the litre. milk is accompanied by a certificate or health-control document declaring that the milk has been treated and packaged However, it is provided in Article 7 (2) of the same directive that certain in the exporting country by means identical to those used in the importing Member States, including the United country or affording the same Kingdom, are authorized to "defer guarantees. implementation of this directive and the annexes thereto until 31 December 1979 at the latest". (4) Article 3 (6) of Regulation No 1411/71 of the Council of 29 June 1971, It follows that, subject to the standstill as amended by Regulation No 566/76 provision which appears in the same provides that, without prejudice to Article, the United Kingdom may until requirements for the protection of public 31 December 1979 impose a requirement health, Member States shall not prohibit as to capacity where milk is pre the marketing of standardized whole packaged, namely that it be done in milk when the fat content of such milk quantities in terms of the pint. complies with the requirements laid down by Community legislation. For the above reasons, the Commission proposes the following replies to the It follows that this regulation does not questions which have been referred to prejudice other regulations on the the Court: subject, particularly those concerning the
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMERS
making-up by volume of certain pre III — Oral procedure packaged liquids such as UHT milk. Article 7 (2) of the directive issued by the Council on 19 December 1974 on The Union Laitière Normande, the approximation of the laws of the represented by Mr Funck-Brentano, Member States relating to the making-up Advocate at the Cour de Paris, the by volume of certain pre-packaged Government of the United Kingdom, liquids authorizes certain Member States, represented by Mr Scott, and the including the United Kingdom, to defer Commission of the European Com implementation of the directive until 31 munities, represented by its Legal December 1979 at the latest, subject to Advisers, Mr Lasnet and Mr Hoff- the standstill imposed by the third Nielsen, submitted oral observations at paragraph of the same article. the hearing on 31 May 1979.
(5) The reply to the preceding questions makes it unnecessary to reply The Advocate General delivered his to this question. opinion at the hearing on 14 June 1979.
Decision
1 In a judgment of 16 October 1978, received by the Court on 6 November 1978, the Tribunal de Commerce, Paris, referred to the Court of Justice for a preliminary ruling under Article 177 of the EEC Treaty some questions concerning the interpretation of certain provisions of Council Regulation No 566/76 of 15 March 1976 (Official Journal 1976, L 67, p. 23) amending Regulation (EEC) No 1411/71 as regards the fat content of whole milk, and of Articles 30 and 36 of the Treaty.
2 These questions arose in the course of an action between a group of agri cultural co-operatives incorporated under French law and its English sub sidiary concerning the performance, on 30 September 1978, of a contract to supply standardized whole milk produced in France and exported to the United Kingdom. The milk in question had a fat content of 3.78 %, had been given ultra-high temperature (UHT) treatment, and was packaged in one-litre containers.
The importing company, which held an import licence for the supplies in question, had not obtained from the British authorities the dealer's licence
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required by Regulation 4 in Pan II of Statutory Instrument No 1033 of 16 June 1977 — The Milk (Special Designation) Regulations 1977 — in order to market in England all milk, imported or not, under the special designation "UHT".
3 When the aforementioned company decided to terminate the contract in a letter of 12 September 1978, its supplier, the group of agricultural co operatives, brought an action against it on 27 September 1978 before the Tribunal de Commerce, Paris, for non-performance of the contract concerning those supplies, relying in particular on Regulation No 566/76 of the Council and on Article 30 of the EEC Treaty.
4 The Tribunal de Commerce, Paris, decided to stay proceedings and referred the following questions to the Court of Justice for a preliminary ruling under Article 177 of the EEC Treaty:
"1. Can Article 3 (6) of Regulation No 1411/71 (as enacted by Article 2 of Council Regulation No 566/76 of 15 March 1976), which provides that a Member State that opts for the formula of non-standardized whole milk shall not prohibit, without prejudice to requirements for the protection of public health, ... the marketing within its territory of stan dardized whole milk coming from another Member State, when the fat content of such milk is not less than a guideline figure fixed by the Council ..., be interpreted, as the authorities of the United Kingdom appear to do, as meaning that milk thus imported may be marketed only for purposes other than human consumption?
2. Does the reservation concerning the protection of public health contained in Article 3 (6) of Regulation No 1411/71 (as enacted by Article 2 of Regulation No 566/76) justify British national legislation requiring the reprocessing and repackaging of UHT milk produced and packaged in another Member State according to methods which are identical to those used in the United Kingdom and have been approved by the national administrative authorities in that Member State?
3. If the second question is answered in the negative, does the aforementioned British national legislation constitute a measure having an effect equivalent to a restrictive measure prohibited by the Treaty?
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMER
4. Is the application of British weights and measures legislation to milk produced and packaged in another Member State compatible with the terms of Article 3 (6) of Regulation No 1411/71 (as enacted by Article 2 of Council Regulation No 566/76), which stipulates requirements of public health as the only reservation in relation to intra-Community trade?
5. Does the combined effect of the British national measures based on reasons of protection of health and on the application of the national weights and measures legislation constitute a means of arbitrary dis crimination or a disguised restriction on trade between Member States such as are prohibited by Article 36 of the Treaty?"
5 Before proceeding to examine the questions which have been referred to the Court for a preliminary ruling, it should be noted that, whilst Article 177 of the Treaty does not permit the Court to evaluate the grounds for making the reference, the need to afford a helpful interpretation of Community law makes it essential to define the legal context in which the interpretation requested should be placed.
6 Although the national court did not give its reasons for asking the Court to interpret the Community law, it appears from the file on the case that it considers an interpretation necessary for its decision on the consequences which are to follow from the non-performance of the disputed contract to ascertain whether the English legislation which prevents the marketing of the products in question within the United Kingdom was or was not, at the date on which those products were imported, justified under Community law.
7 It also appears from the file on the case that, whereas certain provisions in that legislation, such as Regulation 4 in Part II of the British Statutory Instrument No 1033 of 16 June 1977, read together with the provisions in Schedule 2, Part IV require, for obtaining a dealer's licence for whole milk bearing the special designation "UHT", that the product, immediately after having been treated by the UHT method, be packaged on "registered premises", other provisions in the same legislation, especially those in the Weights and Measures Act 1963, provide in paragraph 3, Part V of Schedule
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4 that for the marketing of any "pre-packaged" milk, whether imported or not, the product must be made available for distribution in containers of a capacity of one third of a pint, half a pint, or a multiple of half a pint.
8 It is accepted that in this case the milk in question was imported into the United Kingdom and made available for distribution in that Member State in containers with a capacity of one litre. Since this milk was "pre-packed" in a way which did not comply with the requirements laid down by the British Weights and Measures Act 1963, the first difficulty in marketing the goods in England was presented by the provisions in that act, so that in fact the question of the compatibility with Community law of the British legislation concerning the marketing of UHT whole milk in the United Kingdom must, in the case of the imports concerned in this dispute, be considered first with reference to that act.
9 That being so, the fourth question should be answered first and the others examined only if it appears that the British national legislation concerning the packaging of pre-packed milk could not have applied in this case to the marketing in England of the product under discussion.
10 In order to encourage the approximation of the national laws concerning weights and measures in the context of Article 100 of the EEC Treaty, the Council, on the basis of Directive No 71/316 of 26 July 1971 (Official Journal 1971, L 207, p. 1) and Directive No 71/354 of 18 October 1971 (Official Journal 1971, L 243, p. 29), later amended by the Act of Accession, adopted Directive No 75/106 of 19 December 1974 on the approximation of the laws of the Member States relating to the making-up by volume of certain pre-packaged liquids (Official Journal 1975, L 42, p. 1), the provisions of which are, by virtue of point 7 of Annex III, applicable equally to milk when sold by volume.
11 The object of this directive, according to the first recital in the preamble, is to harmonize "the conditions of presentation for sale of liquids in pre packages", on the ground that these conditions are, in most of the Member States, "the subject of mandatory regulations which differ from one Member State to another, thereby hindering trade in such pre-packages".
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMER
12 For those reasons the directive determines the conditions which pre-packages containing the products listed in Annex III, such as milk, measured by volume for the purpose of sale "in individual quantities of between 0.05 litre and five litres inclusive" must satisfy before they may be marketed within the Community, and provides in Article 5 that "Member States may not refuse, prohibit or restrict the placing on the market of pre-packages which satisfy the requirements and tests laid down in this directive for reasons concerning the volume of the contents ...".
13 The same directive further provides in Article 7(1) that Member States have a period of 18 months from the date of its notification in which to put into force the laws, regulations and administrative provisions needed in order to comply with it. It also states in paragraph (2) of that Article that "Belgium, Ireland, the Netherlands and the United Kingdom may defer implementation of this directive and the annexes thereto until 31 December 1979 at the latest".
14 Consequently the United Kingdom is authorized until 31 December 1979, by an express provision in the directive cited above, to maintain in force the provisions of its national laws fixing the capacity of packages for products allowed onto the market, in particular those of the Weights and Measures Act 1963, the effect of which is not to allow the marketing of milk in that Member State unless the product is packaged in containers with a capacity of one third of a pint, half a pint or a multiple of half a pint.
15 Since it is accepted that the product in dispute was imported into the United Kingdom pre-packaged in one-litre containers in the course of the year 1978, it follows from Article 7 (2) of Directive No 75/106, cited above, that the provisions in the British Weights and Measures Act can be applied to the marketing of the products in question in England without infringing the rules of Community law.
16 On those grounds the reply to the fourth question must be that since the final date for implementing the provisions of Council Directive No 75/106
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of 19 December 1974 on the approximation of the laws of the Member States relating to the making-up by volume of certain pre-packaged liquids was, by Article 7 (2) thereof, deferred in the case of the United Kingdom until 31 December 1979 at the latest, the retention by that Member State of the provisions of the Weights and Measures Act 1963 was not, at the date of the imports in question, prohibited by the rules of Community law and could therefore at that date be applied to the marketing in England of pre packaged milk from another Member State, made up in containers of a capacity of one litre.
17 Since the reply to the fourth question makes it unnecessary to examine the other questions referred by the national court for a preliminary ruling, a decision on them is not required.
Costs
18 The costs incurred by the Government of the French Republic, the Government of the United Kingdom and the Commission of the European Communities, which submitted observations to the Court are not recoverable. As the proceedings are, in so far as the parties to the main action are concerned, in the nature of a step in the action pending before the national court, the decision on costs is a matter for that court.
On those grounds,
THE COURT,
in answer to the questions referred to it by the Tribunal de Commerce, Paris, by judgment of 16 October 1978, hereby rules:
Since the date for the implementation of the provisions of Council Directive No 75/106 of 19 December 1974 on the approximation of the laws of the Member States relating to the making-up by volume of certain pre-packaged liquids was, by Article 7 (2) thereof, deferred in the case of the United Kingdom until 31 December 1979 at the latest, the
UNION LAITIÈRE NORMANDE v FRENCH DAIRY FARMERS
maintenance in force by that Member State of the provisions of the Weights and Measures Act 1963 was not, at the date of the imports in question, prohibited by the rules of Community law and could therefore at that date be applied to the marketing in England of pre-packaged milk from another Member State, made up in containers of a capacity of one litre.
Kutscher Mertens de Wilmars Mackenzie Stuart Pescatore Sørensen
O'Keeffe Bosco Touffait Koopmans
Delivered in open court in Luxembourg on 12 July 1979.
A. Van Houtte H.Kutscher
Registrar President
OPINION OF MR ADVOCATE GENERAL MAYRAS DELIVERED ON 14 JUNE 1979<apnote>1</apnote>
Mr President, three quarter pints) of ultra-heat treated Members of the Court, standardized whole milk within the meaning of Article 2 (6) of Council I — It may be useful to recall the facts Regulation No 566/76, consigned to its at the origin of this reference for a pre London subsidiary, French Dairy liminary ruling by the Tribunal de Farmers. The consignment was turned Commerce, Paris. back on the same day on the ground that no import licence had been issued by the On 12 June 1978 the Union Laitière United Kingdom Ministry of Agriculture. Normande, the plaintiff in the main action, dispatched to the United Later the plaintiff sought and was Kingdom by lorry a pallet of 72 cartons granted, on 1 August 1978, such an (each carton containing 12 brick-shaped import licence, which was valid until 31 packs of one litre, that is to say, one and August. It was emphasized, however,
I — Translated from the French.