Report for the Hearing delivered in Case 263/87

I — Summary of the facts

A — Origin of the dispute

Grana Padano cheese is a hard granular cheese with a specific water and fat content. The adjective Padano refers to the Italian region where that cheese is traditionally manufactured, namely the plain around the river Po (which is called Padus in Latin).

Pursuant to Ministerial Order No 540 of 3 December 1969 on the manufacture and marketing of cheeses, the Danish Minister for Agriculture authorized, by means of a circular, the manufacture of Grana-type cheeses, provided that they complied with certain standards relating in particular to their form, texture, rind, water content and fat content. By the same order, he authorized the marketing of such cheeses under the name Dansk Grana or Dansk Grana Padano.

Article 5(1) of Regulation No 876/68 of the Council laying down general rules for granting export refunds on dairy products (Official Journal, English Special Edition 1968 (I), p. 234) provides that the Commission is periodically to adopt regulations containing a list of the products for which a refund is to be granted, together with the amount of the refund concerned.

By means of such periodical regulations, the Commission grants refunds for several types of cheese, of which the fifth type, E. Other (cheeses) is described as follows:

The present dispute stems from the fact that the Danish authorities paid to exporters of cheese of the Grana type produced in Denmark refunds for 1983, 1984 and 1985 at the rate for Grana Padano cheeses bearing the code 47.10.11 mentioned above (subheading 04.04 E I ex (a) 1 of the Common Customs Tariff). Since 1980, those refunds have been greater than those granted to the exporters of cheeses bearing code 47.10.22 (subheading 04.04 E I ex (a) 3 of the Common Customs Tariff).

The Commission refused, for the financial years involved, to reimburse to the Danish authorities the total refunds paid by the latter, confining itself to paying refunds at the lower rate specified for cheeses bearing code 47.10.22.

The Danish Government then brought an action for the annulment of the Commission decisions on the clearance of the accounts presented by the Member States in respect of the expenditure financed by the EAGGF for the financial years in question, in so far as that expenditure related to the reimbursement of refunds paid for exports of Grana-type cheeses produced in Denmark.

B — Course of the procedure

Upon hearing the report of the Judge-Rapporteur and the views of the Advocate General, the Court decided to open the oral procedure without any preparatory inquiry. The parties were invited to reply in writing to certain questions. They did so within the time-limit set for that purpose.

II — Conclusions of the parties

The Danish Government claims that the Court should declare void the Commission decision of 19 June 1987 and the decisions of 18 June 1987 on the clearance of the accounts presented by the Member States in respect of the European Agricultural Guidance and Guarantee Fund, Guarantee Section, expenditure for 1983, 1984 and 1985, to the extent to which it relates to the reimbursement of the refunds paid for exports of Grana-type cheese produced in Denmark.

The Commission contends that the Court should dismiss the application as unfounded and order the applicant to pay the costs.

III — Submissions and arguments of the parties

The Danish Government claims that any hard granular cheese of a specified fat content is a Grana Padano cheese qualifying for the refund corresponding to code 47.10.11, even if it is produced in Denmark. In support of that view, it advances, in essence, three arguments.

The Commission gives two main reasons for its contention that the cheese in question can qualify only for the lower refund applicable to the category of cheeses bearing code 47.10.22.

1 Language of the case: Danish.