C-126/82
ECLI:EU:C:1983:14
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JUDGMENT OF 25. 1. 1983 — CASE 126/82
powers regarding the conditions for 4. The aim of Article 7 of the Treaty is authorizing undertakings established to eliminate any discrimination on in their territory. Those provisions, by the ground of nationality resulting their very nature, may be relied upon from the legislation or administrative in legal proceedings; it is therefore for practices of a given Member State the national court or tribunal to check rather than any disparity in the way whether the relevant national legis- in which undertakings of different lation conforms to those provisions if Member States are treated as a result a party relies upon them in of differences between the legislation proceedings before that court. of the Member States, in the absence of a common transport policy.
Thus, by virtue of the First Council 3. By virtue of the provisions of the Directive on the establishment of First Council Directive on the certain common rules for the inter- establishment of certain common rules national carriage of goods by road, for the international carriage of goods the fact that a Member State imposes by road the competent authorities of a on transport undertakings established Member State are entitled to continue in its territory quantitative restrictions to apply to undertakings established regarding the load capacity to be in its territory a system of authoriz- employed in international carriage of ations for the types of international goods between Member States does carriage of goods by road for hire or not amount to discrimination contrary reward listed in Annex II to the to Article 7 of the EEC Treaty even directive if the aim of such a system is though it is under an obligation, by to restrict the load capacity to be used virtue of Article 1 (3) of that directive, by those undertakings for the inter- to allow within its territory without national carriage of goods, even if any restriction transport operations they satisfy all the other requirements originating in other Member States laid down by the national legislation even in cases where those Member for authorization to engage in States impose less severe conditions national and international carriage of regarding load capacity on the under- goods. takings established in their territory.
In Case 1 2 6 / 8 2
R E F E R E N C E to the C o u r t u n d e r Article 177 of the E E C T r e a t y by the R a a d van State, Afdeling v o o r de Geschillen van Bestuur [Administrative Appeals Division of the State C o u n c i l ] , of the N e t h e r l a n d s , for a preliminary ruling in the action p e n d i n g before that court between
SMIT v COMMISSI!-: GRENSOVERSCHRIJDEND BEROEPSGOEDERENVERVOER
D. J. SMIT TRANSPORT BV, a transport undertaking having its registered office in T h e H a g u e ,
and
COMMISSIE GRENSOVERSCHRIJDEND BEROEPSGOEDERENVERVOER van de Stichting Nederlandsche Internationale Wegvervoer Organisatie [Committee of the Netherlands International Road H a u l a g e Organization on the Commercial Carriage of G o o d s A b r o a d ] ,
on the effect in national law and on the interpretation of Articles 1 (3) and 3 of the First Council Directive of 23 July 1962 on the establishment of certain c o m m o n rules for international transport (carriage of goods by road for hire or reward), and on the interpretation of Article 7 of the E E C Treaty,
THE COURT
composed of: J. Mertens de Wilmars, President, P. Pescatore, A. O'Keeffe and U. Everling (Presidents of Chambers), G. Bosco, T . K o o p m a n s , O . D u e , K. Bahlmann and Y. Galmot, Judges,
Advocate General: G. Reischl Registrar: P. H e i m
gives the following
JUDGMENT
Facts and Issues
The facts of the case, the course of the I — F a c t s and w r i t t e n p r o c e d u r e procedure and the observations sub- mitted under Article 20 of the Protocol In the Netherlands the carriage of goods on the Statute of the Court of Justice of by road is governed principally by the the EEC may be summarized as follows: Wet Autovervoer Goederen (Law of
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4 August 1951 governing the carriage of involved in the carriage of goods, goods by motor vehicle; Staatsblad 342), including the interests of society in which has since been amended a number general". of times, and by the Uitvoeringsbesluit Autovervoer Goederen (Decree of 16 Furthermore, the secondary legislation January 1954 adopting administrative applicable to this case (Decree of the regulations for implementing the Law Minister van Verkeer en Waterstaat governing the carriage of goods by [Minister of Transport, Water Control motor vehicle; Staatsblad 6). and Construction] of 2 February 1954, on the delegation of powers relating to the international carriage of goods for Article 4 of the law provides that the hire or reward, Nederlandse Staats- carriage of goods by road is subject to courant 1954, No 26) provides that, as a possession of an authorization or to general rule, applications are not to be registration for transport on own rejected if they ralte to the international account; Article 18 of the decree makes carriage of goods for hire or reward. the international carriage of goods by road for hire or reward likewise subject D. J. Smit Transport BV, a transport to a special authorization. Authorization undertaking established in The Hague to effect international carriage is subject, and specializing in international re- pursuant to Article 25 of the decree, to movals, obtained on 17 March 1976 an the applicant's being already in authorization valid until 3 June 1981 to possession of one or more authorizations effect for hire or reward the inter- for other forms of transport of goods, as national carriage of goods to and from provided for by the law. all European countries with a maximum load capacity of 18 tonnes. The law lays down specific conditions On 3 April 1979 Smit sought to have the for issuing an authorization to effect the authorization amended to allow the carriage of goods by road for hire or maximum load capacity to be increased
reward: Article 56 lays down criteria of a to 36.29 tonnes so as to be able to use all "qualitative" nature (technical aptitude its vehicles at the same time for such and creditworthiness), whilst pursuant to carriage. Article ' 44 the authorization must indicate the maximum payload allowed for the operation. Its request was rejected by a decision of 13 September 1979 of the Commissie Grensoverschrijdend Beroepsgoederen- The decree also provides, in Article 23, vervoer of the Stichting Nederlandsche that individual authorizations to effect Internationale Wegvervoer Organisatie. the international carriage of goods for The reason given for the refusal was the hire or reward is subject to the fixing of fact that it was not in the "general a maximum load capacity. interests of transport" to increase the authorized capacity, which was not justified by existing demand in the field Article 36 of the law provides that an of transport, as an investigation had authorization may be refused and that "a revealed that the Smit undertaking was departure may be made from the terms using only part of the transport capacity of the application" in the "general which it had already been authorized to interests of transport", an expression use. which is stated by Article 1 of the law to embrace "the need for fair and balanced On 10 December 1979 Smit challenged management of the various interests the decision by application to the Crown
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and the case was referred to the State authorizes its own nationals to Administrative Appeals Division of the engage in the activities mentioned in this Raad van State. directive."
In support of its action it relied in The directive of 23 July 1962 was particular on the argument that restrict- amended by the following Council ing load capacity was incompatible with Directives: 72/426/EEC of 19 December the First Council Directive of 23 July 1972 (Official Journal, English Special 1962 on the establishment of certain Edition 1972 (28-30 December), p. 71; common rules for international transport 74/149/EEC of 4 March 1974 (Official (carriage of goods by road for hire or Journal L 84, p. 8); 77/158/EEC of 14 reward (Official Journal, English Special February 1977 (Official Journal L 48, p. Edition 1959-1962, p. 267), especially 30); 78/175/EEC of 20 February 1978 Articles 1 (3) and 3 thereof. (Official Journal L 54, p. 18); and 80/49 of 20 December 1979 (Official Journal Article 1 (1) of the directive provides as 1980, L 18, p. 23). Those amendments follows: do not affect the provisions which were relied upon before the Administrative Appeals Division of the Raad van State. "Each Member State shall, by the end of 1962 at the latest and in the manner laid down in paragraphs (2) and (3) of this On 6 April 1982, after obtaining an article, liberalize the types of inter- authorization by Royal Decree dated 26 national carriage of goods by road for March 1982, the Administrative Appeals hire or reward involving other Member Division of the Raad van State decided States listed in Annexes I and II to this to refer to the Court of Justice for a directive, where such carriage is preliminary ruling pursuant to Article performed to or from the territory of 177 of the EEC Treaty the following that Member State or passing in transit questions, which were raised before it in across the territory of that Member the course of a full administrative appeal State." based on the Law governing the carnage of goods by motor vehicle: Pursuant to Article 1 (3) the types of carriage listed in Annex II, which include 1. Is it the responsibility of a national "removals by undertakings having special court or tribunal to examine national staff and equipment for this purpose", legislation in the light of Articles 1 (3) and 3 of the First Council Directive of 23 July 1962 on the establishment "shall no longer be subject to a quota of certain common rules for certain system. They may, however, remain types of carriage of goods by road subject to authorization provided no between Member States (as last quantitative restriction is involved; in such case Member States shall ensure amended by Council Directive that decisions on applications for auth- 78/175/EEC of 20 February 1978 orization are given within five days of (Official Journal L 54, p. 18) if an receipt." appellant relies on those provisions to support his case?
According to Article 3 : 2. If so, may those provisions be construed as allowing the competent "This directive shall not affect the authorities of a Member State the conditions under which any Member freedom to apply a system of author-
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izations for the types of international member of its Legal Department; on 16 carriage of goods by road for hire or July by the Government of the Kingdom reward mentioned in Annex II to the of the Netherlands, represented by directive to undertakings established C. H. A. Plug, Secretary General of the in that Member State if the aim of Ministry of Foreign Affairs; and on 20 such a system is to restrict the load July 1982 by the Government of the capacity to be used by them in the Federal Republic of Germany, rep- carriage of goods abroad, even if resented by Martin Seidel, Ministerialrat, those undertakings satisfy the relevant and Ernst Röder, Regierungsdirektor at requirements of creditworthiness and the Federal Ministry of Economic technical aptitude laid down by Affairs. national legislation as regards the carriage of goods abroad and inland and if, pursuant to the national Upon hearing the report of the Judge- licensing system for the carriage of Rapporteur and the views of the goods inland, they possess load Advocate General the Court decided to capacity which has been approved as open the oral procedure without any being perfectly satisfactory? preparatory inquiry. However, the Smit undertaking, the Government of the Kingdom of the Netherlands and the 3. If the answer to Question 2 is in the Commission were each asked to answer affirmative, does the prohibition of a question before the hearing. discrimination on grounds of national- ity laid down in Article 7 of the EEC Treaty, properly construed, mean that a statutory licensing system whereby transport undertakings established in II — W r i t t e n o b s e r v a t i o n s sub- one Member State are subject to m i t t e d to t h e C o u r t quantitative restrictions as regards the load capacity to be employed in the carriage of goods between Member 1. The observations submitted by the States may be operated if transport Government of the Kingdom of the undertakings established in other Netherlands may be summarized as Member States are not or may not he follows. subject to such restrictions by that Member State under Community law? First question
The reference for a preliminary ruling from the Administrative Appeals Division The national legislation implementing of the Raad van State of the Netherlands the first directive is wholly in conformity was lodged at the Court Registry on with the directive. 7 April 1982.
As regards in particular the provisions Pursuant to Article 20 of the Protocol on contained in Article 1 (3) and Article 3 the Statute of the Court of Justice of of the directive they may, in the light of the EEC, written observations were the criteria which have been established submitted on 18 June 1982 by the by the decisions of the Court of Justice, Commission of the European Communi- be relied upon by individuals before the ties, represented by Auke Haagsma, a courts.
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Second question effects such transport from or to the Member State in which he is established, or from or to a third Member State.
The purpose of the system of author ization for the international carriage of goods in the Netherlands is not to The view that Article 3 of the directive restrict undertakings' load capacity, but docs not affect national rules governing to achieve and maintain healthy market access by its own nationals to the conditions and profitable commercial occupation of international carrier of activity; restricting load capacity might, goods is borne out by the opinion of the in certain conditions, be one of the Economic and Social Committee on the effects of the system. Commission's original proposal.
In adapting Netherlands legislation to Article 3 of the directive of 23 July 1962 the requirements of the directive and of provides for the continuance of national the subsequent amendments thereto, the systems of authorization inasmuch as Government of the Netherlands, without they apply to a countiy's own nationals. any objection on the part of the The expression "conditions under which Commission, has always followed that any Member State authorizes its own view, which appears to be shared by the nationals to engage in the activities" other Member States. mentioned in the directive must be given a broad interpretation so as to include authorization schemes which may entail a restriction of load capacity. Article 3 is Moreover, in the first recital in the not restricted to conditions for access preamble to the directive, which states to the occupation (technical aptitude, that "the adoption of a common solvency and creditworthiness); in other transport policy involves, inter alia, provisions, such as the Commission's laying down common rules for the inter proposal of 15 June 1967 for a Council national carriage of goods by road to or regulation concerning access to the from the territory of a Member State or occupation of transport operator and passing across the territory of one or rules governing capacity (Journal Officiel more Member States" there is no L 254, p. 3), access to the occupation indication that the rule applies equally to and rules controlling capacity are national systems of authorization discussed separately. governing access by a country's own nationals to the occupation of inter national carrier of goods. Community rules to that effect have yet to emerge, The liberalization which the directive despite the Commission's proposal in requires can only refer to systems of 1967 and the fact that Article 75 (1) of authorization governing access by the Treaty provides for the establishment foreign undertakings to the territory of a of common rules applicable to inter (different) Member State in order to national transport; the question arises effect the types of carriage referred to in whether once the transitional period has Annex I or Annex II from or to that expired the present situation, where in territory or in transit across it. The many cases types of carriage not covered wording of Article 1 of the directive by the directive of 1962 are still subject implies that little significance is attached to quota restrictions, is still compatible to whether the foreign undertaking with the Treaty.
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The second question may therefore be complying with the provisions of the answered in the affirmative. directive if it prescribes for the types of carriage referred to in Annex II a Third question maximum payload, in particular when the latter is lower than the ceiling which The directive does not affect national is fixed within the territory of the systems of authorization inasmuch as Member State in question. they apply to a country's own nationals; as Community legislation on transport The reply to the question must be in the stands at present, nationals of a Member affirmative, subject to certain restrictions. State may therefore still be subjected by that State to certain restrictions which do not apply to transport undertakings Merely restricting the authorized established in other Member States. payload for the international carriage of goods does not amount to a That cannot amount to a breach of the "quantitative restriction" within the prohibition of discrimination contained meaning of Article 1 (3) of the directive : in Article 7 of the EEC Treaty: the payload is fixed for a single vehicle application of national systems of auth- and the restriction can only affect the orization does not give rise to any way in which loads are distributed for inequality in the treatment of EEC transport between different vehicles. citizens on grounds of nationality of the Restricting the payload does not in itself kind prohibited by Article 7. According prevent the transport undertaking to the case-law of the Court of Justice concerned from obtaining as many there is no breach of the prohibition of authorizations as it wishes for an discrimination contained in Article 7 unlimited number of vehicles. where rules apply, not on the basis of the nationality of the undertaking, but on the basis of the place where the under- The restrictions on the authorized taking is established. Only differences in payload which are permitted by the rules the treatment of undertakings not of the Member State within which the established in the Member State carriage is to be effected are equally concerned would amount to a breach of compatible with other provisions of the prohibition of discrimination; that Community law, in particular those question does not arise in this case. concerning the freedom to provide services.
2. The Government of the Federal Republic of Germany submits, in Restrictions on payload exist in all the substance, the following observations. Member States of the Community; maximum loads, which have been fixed at levels which vary widely from one First question Member State to another, have not yet been harmonized; national provisions The case-law of the Court of Justice is remain applicable. Council Directive consistent to the effect that this question 65/269 of 13 May 1965 concerning the must be answered in the affirmative. standardization of certain rules relating to authorizations for the carriage of Second question goods by road between Member States (Official Journal, English Special Edition The question must be understood as 1965-1966, p. 64) deals solely with auth- asking whether a Member State is orization procedures and does not touch
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on national substantive rules. The model A restriction of the maximum payload authorizations annexed to the directive for the international carriage of goods is provide expressly for "restrictions, if therefore compatible with the first any", which may include, in particular, directive in so far as it is within the limits restrictions on the payload. The carrier is fixed by the Member States through required to comply, in the territory of whose territory the carriage is to be each Member State, with the laws, regu- effected. lations and administrative provisions of that State, and in particular with those concerning transport and traffic. The application of such a restriction by a Member State might, in certain cases, be aimed solely at restricting access to the Community law does not compel transport market for undertakings; in the Member States to allow vehicles German legislation that is not the case. registered in other Member States to travel within their territory with a payload which meets the restriction Third question applicable in the countiy of origin when that is higher than in the country visited. It is in the general interest to retain the national restrictions on payload. The Authorizations issued in compliance with different maxima fixed at national level the requirements of the first directive and for payloads for vehicles are attributable with those of Directive 65/269 do not to significant differences in the topo- offend against Article 7 of the EEC graphical and technical characteristics of Treaty. the road networks in the various Member States. National restrictions of that sort are only at variance with Community law if, as the Court of It would be contrary to the directive if Justice has held, they are not in due when granting authorizations for the proportion to the requirements of road international carriage of goods Member safety. States fixed different restrictions on payload for one and the same journey: for international carriage between several Member States the authorization must take account of the restrictions which The maximum payload adopted by the Member State which issues the auth- apply to the payload in the various States orization depends on the scope of the concerned and therefore refer expressly authorization. The models annexed to to the lowest of the various ceilings in Directive 65/269 show that the author- question. If the directive is applied ization defines its geographical scope; correctly it is immaterial to know which the authorization may be issued only if it Member State has issued the authoriz- takes account of the legislative ation. requirements of all the Member States in question, and applies the most stringent provisions if there is a discrepancy The nationality of the carrier is wholly between the various national provisons; irrelevant in that respect; according to as far as the payload is concerned, the Article 1 of Directive 65/269 the authorization must therefore mention the authorization is to be issued by the maximum payload of whichever Member Member State in which the vehicle to be State prescribes the lowest. used for such carriage is registered.
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As to the lawfulness of the various izations to undertakings established in a national restrictions on payload in the Member State other than that which light of Article 7 of the EEC Treaty, it issues the authorization; if so, it does not must be emphasized that the restrictions affect the power of each Member State apply regardless of the nationality of the to issue authorizations to its own carrier or the driver of the vehicle. nationals. The question whether the Netherlands system of restricting load capacity for its own nationals in the carriage of goods between Member However the third question is to be States is compatible with the first interpreted, it shows no infringement of directive does not arise; the reply to Article 7 of the EEC Treaty, provided the second question must be in the that the authorization is issued in affirmative. conformity with the requirements of the two directives in question. That hypothesis is supported by the fact that the aim of the directive is to 3. The Commission observes with eliminate "obstacles in the transport regard to the first question raised by the sector"; such obstacles existed when the Administrative Appeals Division of the directive was adopted and continue to Raad van State of the Netherlands that exist in the case of types of carriage whatever the direct effect, if any, of the which do not appear in the annexes to first directive or the provisions thereof the directive, especially where it is a the result can only be that Member question of obtaining international auth- States are prohibited after the expiry of orizations in Member States other than the period allowed for implementing that in which the undertaking concerned the directive from relying, as against is established. individuals, on national provisions which are incompatible with the directive. Before any decision as to whether However, it might also be considered Articles 1 (3) and 3 of the directive are that where there are obstacles to author- directly applicable, therefore, it must first izations' being issued by a Member State be determined whether or not the to its own nationals, the directive might Netherlands legislation determining the have been intended to eliminate those, maximum authorized load capacity for too. That view finds support in the first the international carriage of goods is recital in the preamble to the directive, compatible with the directive. according to which "the adoption of a common transport policy involves, inter alia, laying down common rules"; if they are to be truly common, such rules must Second question apply without distinction to all individuals regardless of the Member State of which they are nationals. The way in which Articles 1 (3) and 3 are to be interpreted depends generally on the view which is taken of various (b) The directive may be interpreted as aspects of the directive. relating to all authorizations for the international carriage of goods issued by a Member State whether to its own (a) The directive may be regarded as nationals or to those of other Member applying solely to the grant of author- States.
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In that case the authorizations issued by orization" within the meaning of Article a Member State to its own nationals 1 (3) of the directive. would also, in principle, be subject to the requirements of the directive. Arguments which may be advanced in favour of a negative reply are that the authorization in question concerns access In the case of Article 3, in particular, it to the occupation of international carrier may be noted that it is not worded as a of goods, that the conditions governing provision which derogates from the other access to the occupation may include articles of the directive, but that its aim is both qualitative criteria and criteria to define the scope thereof; this view is based on supply and demand and that borne out by the history of the article. the authorization does not, therefore, according to Article 3, fall within the
scope of the directive. A similar line of argument is that the authorization is not, The question arises whether Article 3 of in so far as it is based on the criterion of the directive concerns authorization "to supply and demand, an authorization engage in activities" stricto sensu, in other governing access to the occupation, but words, solely as regards the qualitative rather an authorization relating to the conditions which must be complied with, pursuit of such an occupation and to or whether it should be understood as activities on a particular market; having a wider meaning so as to include although they are not caught by the conditions based on the criterion of derogation contained in Article 3, such
supply and demand. Howsoever that authorizations remain outside the scope may be, even if a restriction on capacity of the directive. such as that provided for in the Netherlands rules falls outside the scope of Article 3 that would not necessarily These two interpretations have one bring it within the ambit of the directive feature in common: they are based on itself: Article 3 is designed solely to the principle that Article 1 (3) is define the scope of the directive by concerned solely with specific author- indicating what it clearly does not cover, izations to effect one or a number the scope of the directive must be of well-defined journeys; under both positively established in the light of the interpretations more general systems of other provisions it contains, in particular authorization would not fall within the Article 1 (3). terms of the directive regardless of
whether or not they were covered by Article 3. That provision prohibits, in particular, the application of a quota system to The arguments which militate in favour removals, which may, by contrast, be of an affirmative reply to the question subject to authorization provided that are based on the principle that Article 1 that does not have the effect of a (3) of the directive covers all systems quantitative restriction. Article 1 (3) does of authorization which cannot be not exclude all quantitative restrictions, considered as governing access stricto but only those which result from the sensu to the occupation, in other words, systems of authorization to which it concerning solely qualitative criteria; in
refers. The issue is therefore whether an that case the authorization, inasmuch as authorization to effect the international it concerns criteria based on supply and carriage of goods of the kind in question demand, falls within the terms of Article in the main action constitutes an "auth- 1(3).
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The reply to the second question put by unequal treatment based on the place of the Raad van State must indicate establishment, but unequal treatment whether the first directive concerns solely based on discrimination on grounds of authorizations issued by a Member State nationality. to undertakings of other Member States, or includes authorizations issued to its own nationals and, in that case, whether Article 1 (3) concerns only specific auth- Nevertheless, a distinction must be made orizations or also more general authori- according to which answer is given to zations. the second question. Should the Court decide that the first directive concerns only authorizations issued by a Member State to undertakings established in First question another Member State, it would be possible to claim that there is unequal treatment between nationals of Member States, but, in that case, Article 7 would If the Court considers that the legislation not apply. If, by contrast, the first at present in force in the Netherlands is directive is considered applicable without incompatible with the first directive, it distinction to authorizations issued by a will be necessary to determine whether Member State to nationals of other individuals may rely on the provisions of Member States and to its own nationals, the directive before the Raad Van State it would be possible to claim that there is of the Netherlands. unequal treatment only if the Court adopts the theory that the system of authorization in question and the restriction on capacity which it entails According to the case-law of the Court are not covered by the directive or, as a individuals must, in such a case, be in a result, by Article 1 (3); in that case the position to invoke Articles 1 (3) and 3 of conclusion must be that in the absence of the first directive in order to obtain a harmonization Member States retain the review as to whether the national power to determine the conditions on implementing measures are compatible which authorizations are to be issued. with those provisions. Each Member State would thus determine for itself the conditions on which carriers established on its territory may obtain authorizations to engage in the activities in question; that too would Third question amount not to discrimination based on nationality, but to discrimination based on the place of establishment. Since an affirmative reply to the second question cannot be ruled out consideration must be given to whether Article 7 prohibits the imposition on The reply to the third question should be carriers established in a given Member that the continuance of a legal system State of restrictions which are not of authorization whereby carriers imposed on carriers established in established in a Member State are another Member State. If thus worded, subject to quantitative restrictions on the question must be answered in the load capacity which do not apply to negative: Article 7 clearly concerns not carriers established in other Member
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States does not amount to discrimination In so far as the system of authorizations prohibited by Article 7 of the EEC in question in the main action is Treaty. considered as regulating conditions for access to the occupation in question, restricting the capacity by applying a criterion which is linked with supply and demand is not incompatible with Directive 74/561 Directive 74/561.
If in answer to the second question the Court should take the view that systems of authorization such as that which is the III — O r a l p r o c e d u r e subject-matter of the main action do not fall within the ambit of the first directive, it would be advisable to determine whether or not such systems are compatible with other provisions of At the sitting on 19 October 1982 oral Community law, in particular Council argument was presented and replies were Directive 74/561 of 12 November 1974 given to the questions put by the Court on admission to the occupation of road- by D. J. Smit Transport BV, the plaintiff haulage operator in national and inter- in the main proceedings, represented by national transport operations (Official D B. J. Siemensinä, an expert on the Journal L 308, p. 18). That directive lays issue of authorizations under the Wet down only qualitative conditions (credit- Autovervoer Goederen, the Government worthiness, financial standing and of the Kingdom of the Netherlands competence of the carrier); the question represented by Adriaan Bos, Assistant is therefore whether its provisions are Legal Adviser, Ministry of Foreign exhaustive on that point and exclude any Affairs, assisted by Wouter van Zijst, consideration of other conditions, in Head of Department, Ministry of particular conditions related to the Transport, as technical adviser, the concept of supply and demand, or Government of the French Republic, whether it merely harmonizes three represented by Alexandre Carnclutti, conditions without preventing Member Secretaiy for Foreign Affairs, Ministry of States from applying others. There is Foreign Relations, and the Commission, nothing to indicate that the directive is represented by A. Haagsma. aimed at an exhaustive harmonization of conditions for access to that occupation; its purpose is to harmonize objective qualitative criteria. Criteria which take account of supply and demand would be Smit argued in particular that it had the far more difficult to harmonize because right, using the whole of its fleet of they depend entirely on the actual vehicles, to carry goods not only within situation on a particular market. The fact the borders of the State where it was that the directive does not refer to such established but also beyond them; that criteria does not justify the conclusion removals constituted a very special sector that they may not be applied but, on the of the transport business; that it had used contrary, implies that the directive does the authorization it had received in not affect them and that they have not respect of removals in a wholly profitable yet been harmonized. manner and that excessively restrictive
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load capacity criteria were not out by the nationals of other Member permissible in the light of the directive. States and an authorization system involving a restriction on load capacity The Government of the Kingdom of the falls within Article 3 and not within Netherlands emphasized the embryonic Article 1 (3) of the directive, Such a nature of the common transport policy restriction constitutes, within the mean- and expressed the view that a system of ing of Article 3, a condition relating to bilateral quotas was not really compatible authorization to engage in the activities with the principles laid down in the mentioned irr the directive and, provided Treaty in that field. It also pointed out that it serves the general interest, its that the Government of the Federal imposition on the nationals of that Republic of Germany, in its written Member State is permissible; Article 1 observations, confused the concept of the (3) of the directive refers only to a maximum load capacity of vehicle with system applicable to undertakings the authorized load capacity of a established outside the State which issues transport undertaking. the authorization. In .the view of the Government of the The Commission reiterated its view that French Republic, the relevant provisions Article 3 of the directive should be of the directive have direct effect; interpreted widely and that a restriction Community law, as it now stands and in on the load capacity of the type at issue the absence of harmonization, does not in the main proceedings is incompatible prevent a Member State from impos- with that provision. ing on or applying to its nationals requirements which are less favourable The Advocate General delivered his than those which it imposes or applies in opinion at the sitting on 30 November respect of the same operations'• carried 1982.
Decision
1 By j u d g m e n t of 6 April 1982, which was received at the C o u r t o n 7 April 1982, the Administrative Appeals Division of the R a a d van State [State Council] referred to the C o u r t for a preliminary ruling u n d e r Article 177 of the E E C T r e a t y three questions concerning the effect in national law and the interpretation of Articles 1 (3) and 3 of the First Council Directive of 23 J u n e 1963 o n the establishment of certain c o m m o n rules for international transport (carriage of g o o d s , by r o a d for hire or reward) (Official· J o u r n a l , English Special Edition, 1959-1962, p. 267) and on the interpretation of Article 7 of the E E C T r e a t y .
2 T h o s e questions w e r e raised in the course of an action b r o u g h t by a transport u n d e r t a k i n g established in the N e t h e r l a n d s which specializes in international removals against a decision of the Commissie Grensover-
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schrijdend Beroepsgoederenvervoer van de Stichting Nederlandsche Inter- nationale Wegvervoer Organisatie [Committee of the Netherlands Inter- national Road Haulage Organization on the Commercial Carriage of Goods Abroad], rejecting its application for an increase in its transport capacity for international transport operations.
3 It appears from the file on the case that by virtue of prior decisions adopted by the same authority the plaintiff's authorized capacity is 50.1 tonnes for national transport and it is authorized to use 18 tonnes of that total capacity for international transport. The plaintiff applied for the latter capacity to be increased to 36.29 tonnes, which corresponded to its effective transport capacity at that time, in order to enable it to use all its vehicles for inter- national transport.
4 That request was rejected by the Commissie Grensoverschrijdend Beroeps- goederenvervoer by virtue of the national legislation on carriage of goods by road, namely the "Wet Autovervoer Goederen [Law governing the carriage of goods by motor vehicle] of 4 August 1951 and the Uitvoeringsbesluit Autovervoer Goederen (Decree adopting administrative regulations for implementing the Law governing the carriage of goods by motor vehicle) of 16 Janaury 1954. The reason given for that rejection was that it was not in the general interests of transport to increase the authorized capacity in the absence of an existing demand for international transport, as an investigation had shown that Smit was not using (to the full) the transport capacity for which it already had authorization.
5 In the proceedings before the Raad van State, Smit relied on the provisions of the Directive of 23 July 1962 pursuant to which certain types of carriage, including removals by undertaking having special staff and equipment for that purpose, are no longer to be subject to a quota system. It argued that, by permitting restrictions on intra-Community transport capacity, the Netherlands legislation is contrary to that directive and that its effect is to put undertakings established in the Netherlands at a competitive disad- vantage in relation to the removal undertakings of other Member States.
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6 The Commissie Grensoverschrijdend Beroepsgoederenvervoer, for its part, drew attention to Article 3 of the same directive, according to which the directive is not to affect the conditions under which any Member State authorizes its own nationals to engage in the activities mentioned therein.
7 The Raad van State considered that a question of interpretation of Community law had been raised and submitted the questions referred to above to the Court.
T h e first q u e s t i o n
8 The first question submitted by the Raad van State is as follows :
"Is it the responsibility of a national court or tribunal to examine national legislation in the light of Articles 1 (3) and 3 of the First Council Directive of 23 July 1962 (Official Journal, English Special Edition 1959-62, p. 267), on the establishment of certain common rules for certain types of international carriage of goods (as last amended by Council Directive 78/175/EEC of 20 February 1978 (Official Journal L 54, p. 18)) if an appellant relies on those provisions to support his case?"
9 In order to answer this question it is sufficient to refer to the Court's well- established case-law concerning the effect of directives, most recently mentioned in its judgment of 19 January 1982 in Case 8/81 Ursula Becker v Finanzamt Münster-Innenstadt [1982] ECR 53.
10 It is apparent from that case-law that if the provisions of the directives are unconditional and sufficiently precise, as far as their subject-matter is concerned, they may be relied on in legal proceedings by individuals where the Member State in question has not correctly implemented the directive within the framework of its domestic legislation.
1 1 The provisions referred to by the plaintiff in the main proceedings comply with that requirement. In fact Article 1 (3) contains a precise and unconditional prohibition in so far as it forbids the application of any quota
SMIT v COMMISSIE GRENSOVERSCHRIJDEND BEROEPSGOEDERENVERVOĽR
or quantitative restriction to the types of carriage listed in Annex II to the directive. Article 3 reserves certain powers to the Member States regarding the conditions which they may impose for authorization of transport under takings subject to their authority to engage in the activities mentioned in the directive. By its very nature, in so far as it defines the powers of the Member States in that area, that provision may also be relied upon in legal proceedings where it appears that the national authorities have exceeded their powers as defined by the directive.
12 Thus it must be stated in reply to the first question that it is the responsibility of the national court or tribunal to examine the relevant national legislation in the light of Articles 1 (3) and 3 of the First Council Directive on the establishment of certain common rules for international transport if a party relies on those provisions in proceedings before that court.
The second question
i3 The second question submitted by the Raad van State is as follows:
"If so, may those provisions be construed as allowing the competent auth orities of a Member State the freedom to apply a system of authorizations for the types of international carriage of goods by road for hire or reward mentioned in Annex II to the directive to undertakings established in that Member State if the aim of such a system is to restrict the load capacity to be used by them in the carriage of goods abroad, even if those undertakings satisfy the relevant requirements of creditworthiness and technical aptitude laid down by national legislation as regards the carnage of goods abroad and inland and if, pursuant to the national licensing system for the carnage of goods inland, they possess load capacity which has been approved as being perfectly satisfactory?"
1 4 The answer to this question must be obtained by reference to the purpose and structure of the directive of 23 July 1962.
is By virtue of Article 1 of the directive the Member States are required to liberalize the types of international carriage of goods by road for hire or
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reward involving other Member States listed in Annexes I and II to the directive, by the end of 1962 at the latest. According to paragraph (3) thereof "the types of carriage listed in Annex II shall no longer be subject to a quota system. They may, however, remain subject to authorization provided no quantitative restriction is involved; in such case Member States shall ensure that decisions on applications for authorizations are given within five days of receipt".
i6 Article 3 provides as follows. "This directive shall not affect the conditions under which any Member State authorizes its own nationals to engage in the activities mentioned in this directive." As the Commission has rightly stated in the course of the proceedings, that provision must be taken to relate to the authorization accorded by each Member State to undertakings established in its territory to engage in the activities mentioned in the directive, regardless of the nationality of the persons concerned.
i7 The Commission supports the view taken by the plaintiff in the main proceedings and considers that the requirement laid down in Article 1 (3) that all quotas must be abolished may be relied upon by all transport under- takings in the Community without distinction and that, consequently, the "conditions" referred to in Article 3 of the directive relate solely to conditions of quality and not to conditions of quantity of the type existing in the Netherlands legislation.
is The Governments of the Federal Republic of Germany, the French Republic and the Kingdom of the Netherlands, on the other hand consider that the word "conditions" in Article 3 is used in a general sense and therefore includes conditions relating to restrictions on transport capacity, such as are found not only in the Netherlands legislation but also in the legislation of the other Member States.
i9 In view of those different interpretations it is appropriate to state in the first place that the directive of 23 July 1962 is a first measure designed to establish certain common rules for international transport and that, according to the second recital in the preamble thereto, it was adopted with a view to the "progressive expansion" of the international carriage if goods by road, account being taken of developments in trade and the movement of goods within the Community.
SMIT v COMMISSIE GRENSOVERSCHRIJDEND BEROEPSGOEDERĽNVĽRVOER
20 It therefore seems, as is confirmed by the contents of Annexes I and II to the directive, that the directive is intended to liberalize certain types of carriage by road within the Community without yet laying down uniform conditions for authorization to engage in the activities in question.
2i In those circumstances, although Article 1 (3) of the directive provides that the types of carriage listed in Annex II thereto are no longer to be subject to a quota system but may remain subject to authorization provided that no quantitative restriction is involved, the terms "quota" and "quantitative restriction" can only relate to the measures which a Member State applies to transport carried out by undertakings established in another Member State.
22 Furthermore, the requirement contained in Article 1 (3) that each Member State is to ensure that decisions on applications for authorization are given within five days of receipt can only be explained, within the framework of the directive in question, if it is taken to relate to an application for authorization coming from another Member State.
23 That interpretation is in conformity with the content of Article 3 of the directive which leaves the Member States the power to fix the conditions for authorizing undertakings established in their territory to engage in the activities mentioned in the directive and which therefore implies, in the absence of other rules of Community law applicable to this field, that another Member State may impose on such undertakings conditions which restrict their transport capacity.
24 Consequently, as Community law stands at present, legislation of a Member State which is intended to restrict capacity in relation to the types of inter national transport listed in Annex II to the directive in order to maintain a balance between transport needs and available capacity cannot be considered to be contrary to the directive.
25 Thus, it must be stated in reply to the second question that the provisions at issue must be interpreted as meaning that the competent authorities of a Member State are entitled to continue to apply to undertakings established in its territory a system of authorizations for the types of international carriage
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of goods by road for hire or reward listed in Annex II to the directive if the aim of such a system is to restrict the load capacity to be used by those undertakings for the international carriage of goods, even if they satisfy all the other requirements laid down by the national legislation for authorization to engage in national and international carriage of goods.
The third question
26 The third question submitted by the Raad van State is as follows :
"If the answer to Question 2 is in the affirmative, does the prohibition of discrimination on grounds of nationality laid down in Article 7 of the EEC Treaty, properly construed, mean that a statutory licensing system whereby transport undertakings established in one Member State are subject to quantitative restrictions as regards the load capacity to be employed in the carriage of goods between Member States may be operated if transport undertakings established in other Member States are not or may not be subject to such restrictions by that Member State under Community law?"
27 It follows from the reply given to the second question that, in the absence of a common policy in this area, the Council directive recognizes that responsibility is to be divided among the Member States, so that each Member State may determine the conditions subject to which undertakings established in its own territory may be authorized to engage in the types of transport referred to in the directive in order to maintain, as far as is necessary, a balance between supply and demand in the sector in question. The application of national legislation cannot be regarded as discrimination contrary to the Treaty on the ground that other Member States may apply less severe restrictions to the transport undertakings established in their territory. The aim of Article 7 of the Treaty is to eliminate any discrimi- nation on the ground of nationality resulting from the legislation or administrative practices of a given Member State rather than any disparity in the way in which undertakings of different Member States are treated as a result of differences between the legislation of the Member States, in the absence of a common transport policy.
SMIT v COMMISSIE GRENSOVERSCHRIJDEND BEROEPSGOEDERENVERVOER
28 Thus, it must be stated in reply to the third question that the fact that, by virtue of the directive of 23 July 1962, a Member State imposes on transport undertakings established in its territory quantitative restrictions regarding the load capacity to be employed in international carriage of goods between Member States does not amount to discrimination contrary to Article 7 of the EEC Treaty even though it is under an obligation, by virtue of of Article 1 (3) of that directive, to allow within its territory without any restriction transport operations originating in other Member States even in cases where those Member States impose less severe conditions regarding load capacity on the undertakings established in their territory.
Costs
29 The costs incurred by the Governments of the Kingdom of the Netherlands, the Federal Republic of Germany and the French Republic and by the Commission of the European Communities, which have submitted observations to the Court, are not recoverable. As these proceedings are, in so far as the parties to the main proceedings 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,
T H E COURT,
in answer to the questions submitted to it by the Administrative Appeals Division of the Raad van State, by order of 6 April 1982, hereby rules as follows :
1. It is the responsibility of the national court to examine the relevant national legislation in the light of Articles 1 (3) and 3 of the First Council Directive of 23 July 1962, on the establishment of certain common rules for the international carriage of goods by road if a party relies on those provisions in proceedings before that court.
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2. The provisions in question must be interpreted as meaning that the competent authorities of a Member State are entitled to continue to apply to undertakings established in its territory a system of author- izations for the types of international carriage of goods by road for hire or reward listed in Annex II to the directive, if the aim of such a system is to restrict the load capacity to be used by those undertakings for the international carriage of goods, even if they satisfy all the other requirements laid down by the national legislation for author- ization to engage in national and international carriage of goods.
3. The fact that, by virtue of the directive of 23 July 1962, a Member State imposes on undertakings established in its territory quantitative restrictions regarding the load capacity to be employed in the inter- national carriage of goods between Member States does not amount to discrimination contrary to Article 7 of the EEC Treaty even though it is under an obligation, by virtue of Article 1 (3) of that directive, to allow within its territory without any restriction transport operations originating in other Member States even in cases where those Member States impose less severe conditions regarding load capacity on the undertakings established in their territory.
Mertens de Wilmars Pescatore O'Keeffe Everling
Bosco Koopmans Due Bahlmann Galmot
Delivered in open court in Luxembourg on 25 January 1983.
P. Heim J. Mertens de Wilmars Registrar President