Entreprise F.lli Cucchi v Avez S.p.A. [1977] EUECJ R-77/76 (25 May 1977)

Entreprise F.lli Cucchi v Avez S.p.A. [1977] EUECJ R-77/76 (25 May 1977)

National surcharges on sugar, even if applied to both domestic and imported products, may only be considered charges having equivalent effect to customs duties if they specifically and solely benefit the taxed domestic product and meet strict criteria; otherwise, they fall outside the scope of Articles 9 and 13 EEC...

Source-derived case information.

Citation
[1977] EUECJ R-77/76
Parties
Plaintiff: Fratelli Cucchi; Defendant: Avez S.p.A.
Jurisdiction
European Union
Judgment Date
25 May 1977
Procedural Posture
Reference for a Preliminary Ruling / Judgment on Preliminary Questions
Outcome
Questions answered as set out in the judgment; national court to determine compatibility of surcharges with Community law based on criteria provided.
Legal Topics
Internal Taxation, Customs Duties, Charges Having Equivalent Effect, Market Organization, State Aids, Price Formation
European Union Law Agricultural Law Customs Law Internal Taxation Customs Duties Charges Having Equivalent Effect Market Organization State Aids +1 more

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Parties

Fratelli Cucchi

Plaintiff

Avez S.p.A.

Defendant

Procedural Posture

Reference for a Preliminary Ruling / Judgment on Preliminary Questions

Legal Issues

  1. 1 Whether national surcharges on sugar, applied to both domestic and imported products, are compatible with EEC Treaty and relevant regulations.
  2. 2 Whether such surcharges constitute charges having equivalent effect to customs duties or discriminatory internal taxation.
  3. 3 Whether Member States may unilaterally impose charges or intervention measures affecting price formation in the context of the common organization of the sugar market.

Ratio Decidendi

National surcharges on sugar, even if applied to both domestic and imported products, may only be considered charges having equivalent effect to customs duties if they specifically and solely benefit the taxed domestic product and meet strict criteria; otherwise, they fall outside the scope of Articles 9 and 13 EEC Treaty. The Community has exclusive competence to adopt intervention measures affecting price formation in the sugar market under Regulation (EEC) No 3330/74, and Member States may not unilaterally impose such measures without express authorization.

Court Disposition

Questions answered as set out in the judgment; national court to determine compatibility of surcharges with Community law based on criteria provided.

Orders

  • A duty within a general system of internal taxation can only be a charge having equivalent effect to a customs duty if it solely finances activities for the specific advantage of the taxed domestic product, the taxed and benefiting products are the same, and charges on the domestic product are fully offset.
  • Under Regulation (EEC) No 3330/74, the Community alone is competent to adopt specific measures involving intervention in price formation; infringement may be challenged before national courts by any person whose stocks are affected.