(Judgment) Agriculture – Common organization of the markets – Milk and milk products – Additional levy on milk – Annual questionnaire on the application of the scheme addressed to the Member States – Notification to the Commission – Flat-rate reduction applied to advances on the entry of agricultural expenditure in the accounts in the event of non-compliance with the time-limit – Decision 93/673 – Legal basis – Breach of Regulation No 729/70 or the principle of proportionality – None (Council Regulation No 729/70; Commission Regulation No 536/93, Art. 8, fourth indent; Commission Decision 93/673)
In adopting Decision 93/673 fixing the flat-rate reduction to advances on the entry of agricultural expenditure in the accounts in the event of non-compliance with the time-limit for notification of the annual questionnaire on the application of the additional levy scheme for milk, which provides in particular for a reduction of 1% of the overall amount paid to the Member State concerned for the previous budget year for late notification, 0.5% of the same overall amount for calculation of the levy which is incorrect by more than 10%, and 0.04% for each item of information missing, the Commission validly relied on Article 8, fourth indent, of Regulation No 536/93 laying down detailed rules on the application of the additional levy, which requires Member States to notify the questionnaire, duly completed, before the date given and which authorizes the Commission to make a reduction to advances not only if the notification is late but also if it is incomplete or incorrect.
The above mentioned decision does not infringe Regulation No 729/70 on the financing of the common agricultural policy because the reduction to advances, which cannot be definitive, does not preclude verification of the justification for the reduction in the context of the clearance of accounts provided for by that regulation, in the course of which the Member State concerned will be able to present its views on the lawfulness of the reduction, so that the rights of the defence will be guaranteed.
Lastly, the decision does not breach the principle of proportionality, inasmuch as its aim is to fix, in the interests of uniform application and legal certainty, the way in which the reduction to advances is applied, and to that end defines the various ways in which failure to fulfil the duty to communicate the questionnaire may occur, with the corresponding rate of reduction. In that regard the characteristics attributable to the flat-rate element in the reductions are not sufficient to make the reduction disproportionate, having regard to its aim, since the reductions do not appear to be excessive in view of the importance of due notification for the management of the levy scheme.
Citations:
[1997] EUECJ C-69/94
Links:
Jurisdiction:
European
Agriculture
Updated: 03 June 2022; Ref: scu.161306