Report for the Hearing delivered in Case 212/88

I — Facts and procedure

In 1976 and 1977, Mr Levy and Mr Bazini, the accused in the main proceedings, sold textile products in France through the Belgian companies Belgium American Corporation and Incotex. The sale to French customers was made though a limited liability company incorporated under French law, called Dorotex. Between 8 March 1976 and 31 May 1977, Dorotex had 22 import declarations relating to Belgian articles with a customs value of FF 3998357 lodged with the customs authorities by its customs agent. The goods imported in reusable cardboard boxes or cardboard boxes marked Belgium had been manufactured in South Korea, Taiwan or Pakistan and had been released for free circulation in Belgium.

It is apparent from the Notice to importers of products not originating in Member States of the EEC in respect of which the benefit of the Community system is applied for (free circulation), published on 24 February 1974 in the Journal officiel de la République française, that at the time importation into France was conditional on submission of an AC licence in the case of products for which the liberalized regime is not applicable for the country of origin. According to the order for reference, the goods in question in this case were not liberalized. The accused were accordingly prosecuted for importing prohibited goods, contrary to Article 426(2) and (3) and Article 414 of the French Customs Code.

When the case came before it, the cour d'appel (Court of Appeal), Paris, decided to stay the proceedings, taking the view that it was appropriate to submit to the Court the following question for a preliminary ruling:

The order for reference from the cour d'appel, Paris, was lodged at the Court Registry on 2 August 1988.

In accordance with Article 20 of the Protocol on the Statute of the Court of Justice of the EEC, written observations were submitted by the Government of the French Republic, represented by M. Belliard, acting as Agent, and by the Commission of the European Communities, represented by Mrs Berardis-Kayser, a member of its Legal Department, acting as Agent.

On hearing the report of the Judge-Rapporteur and the views of the Advocate General, the Court decided to open the oral procedure with any preparatory inquiry.

By order of 15 March 1989, the Court decided, pursuant to Article 95(1) and (2) of the Rules of Procedure, to assign the case to the Third Chamber.

II — Written observations submitted to the Court

1. The French Government considers that, in its question, the cour d'appel is essentially asking the Court whether Community law prohibited a Member State in 1976 to 1977, first, from making imports of textile products coming from nonmember countries and put into free circulation in another Member State subject to the issue of an import licence and, secondly, from imposing the penalties provided for in Article 414 of the Customs Code on persons who make false import declarations. According to the French Government, both those questions should be answered in the negative.

2. The Commission considers that the question submitted for a preliminary ruling seeks to ascertain whether Article 30 of the Treaty must be interpreted as precluding national rules which make the importation of textile products originating in a nonmember country and put into free circulation in another Member State of the Community to the requirement of a prior licence and a system of declarations of origin, backed by the threat of criminal penalties.

1 Language of the case: French.