1 BY JUDGMENT DATED 10 DECEMBER 1973, LODGED AT THE REGISTRY ON 17 DECEMBER 1973, THE ECONOMIC MAGISTRATE OF THE ARRONDISSEMENTSRECHTBANK OF HAARLEM HAS REFERRED TO THE COURT, UNDER ARTICLE 177 OF THE EEC TREATY, A QUESTION FOR A PRELIMINARY RULING, ON THE INTERPRETATION OF REGULATION NO 234/68 OF THE COUNCIL OF 27 FEBRUARY 1968 ON THE ESTABLISHMENT OF A COMMON ORGANIZATION OF THE MARKET IN LIVE TREES AND OTHER PLANTS, BULBS, ROOTS AND THE LIKE, CUT FLOWERS AND ORNAMENTAL FOLIAGE ( OJ L 55, P . 1 ), IN THE LIGHT OF CERTAIN PROVISIONS OF THE DUTCH REGULATION RELATING TO HYACINTH CULTIVATION, MADE ON 29 JUNE 1971 BY THE 'PRODUKTSCHAP VOOR SIERGEWASSEN' AND APPROVED BY THE MINISTER OF AGRICULTURE BY DECREE OF 28 JULY 1971 .
2 BY THE EFFECT OF THIS NATIONAL REGULATION, THE CULTIVATION OF HYACINTH BULBS IS FORBIDDEN TO ANYONE OTHER THAN THE HOLDER OF A CULTIVATION LICENCE WHICH IS GRANTED ANNUALLY, BY THE 'PRODUKTSCHAP' FOR A SPECIFIC AREA .
3 IT APPEARS FROM THE COURT FILE THAT THE QUESTION REFERRED FOR A PRELIMINARY RULING WAS SUBMITTED, IN THE COURSE OF CRIMINAL PROCEEDINGS AGAINST A GROWER, FOR HAVING ENGAGED IN THE CULTIVATION OF HYACINTH BULBS WITHOUT HOLDING SUCH A LICENCE .
4 MORE SPECIFICALLY IT SEEKS AN ANSWER TO THE QUESTION WHETHER A SYSTEM RESTRICTING PRODUCTION, SUCH AS THAT ESTABLISHED BY THE DUTCH REGULATION FOR THE TRADE IN QUESTION, IS COMPATIBLE WITH ARTICLE 10 OF REGULATION NO 234/68, WHICH PROHIBITS INTER ALIA 'ANY QUANTITATIVE RESTRICTION OR MEASURE HAVING EQUIVALENT EFFECT' IN THE INTERNAL TRADE OF THE COMMUNITY .
5 THE NATIONAL SYSTEM IN QUESTION AND THE PROVISION UNDER COMMUNITY LAW OF WHICH THE INTERPRETATION IS REQUESTED RELATE TO DIFFERENT STAGES OF THE ECONOMIC PROCESS, THAT IS TO SAY TO PRODUCTION AND TO MARKETING RESPECTIVELY .
6 ACCORDINGLY IT IS NECESSARY TO PUT ARTICLE 10, WHICH IN THE FIRST PLACE RELATES TO MARKETING, BACK INTO THE GLOBAL SYSTEM OF THE ORGANIZATION OF THE MARKET SET UP BY REGULATION NO 234/68 .
7 IN THE ABSENCE OF EXPRESS PROVISIONS AS TO THE COMPATIBILITY OF A NATIONAL REGULATION RESTRICTING PRODUCTION WITH THE ORGANIZATION OF THE MARKET SET UP BY REGULATION NO 234/68, IT IS NECESSARY TO SEEK THE SOLUTION TO THE QUESTION REFERRED IN THE LIGHT OF THE OBJECTS AND THE PURPOSES OF THE REGULATION WITHIN THE FRAMEWORK OF THE PRINCIPLES LAID DOWN BY THE TREATY ITSELF .
8 IN THE SECTOR OF LIVE TREES AND OTHER PLANTS, BULBS, ROOTS AND THE LIKE, CUT FLOWERS AND ORNAMENTAL FOLIAGE, REGULATION NO 234/68 HAS SET UP AN ORGANIZATION OF THE MARKET CHARACTERIZED IN THE WORDS OF ARTICLE 1 THEREOF, BY 'COMMON QUALITY STANDARDS AND A TRADING SYSTEM '.
9 AS REGARDS TRADE, ARTICLE 10 HAS THE PURPOSE OF ELIMINATING ANY QUANTITATIVE RESTRICTIONS OR MEASURES HAVING EQUIVALENT EFFECT IN THE INTERNAL TRADE OF THE COMMUNITY BY IN PARTICULAR PROHIBITING CUSTOMS DUTIES OR MEASURES HAVING EQUIVALENT EFFECT AND QUANTITATIVE RESTRICTIONS OR MEASURES HAVING EQUIVALENT EFFECT .
10 MOREOVER, ARTICLE 11 DECLARES THAT IN PRINCIPLE THE PROVISIONS OF ARTICLES 92 AND 93 OF THE TREATY SHALL APPLY TO TRADE IN THE PRODUCTS IN QUESTION, WITH A VIEW TO ELIMINATING INTERFERENCE WITH COMPETITION BY THE GRANT OF STATE AID .
11 APART FROM RULES CONCERNING THE MARKETING OF THE PRODUCTS THE ORGANIZATION OF THE MARKET ALSO INVOLVES DIVERSE PROVISIONS APPLICABLE TO THE PRODUCTION STAGE .
12 MAJOR IMPORTANCE IS IN THIS RESPECT GIVEN TO COMMON QUALITY STANDARDS, THE APPLICATION OF WHICH, IN THE WORDS OF THE PREAMBLE, 'SHOULD HAVE THE EFFECT OF ELIMINATING FROM THE MARKET PRODUCTS OF UNSATISFACTORY QUALITY AND OF PROMOTING COMMERCIAL RELATIONS ON THE BASIS OF GENUINE COMPETITION '.
13 SEEN IN THIS LIGHT, ARTICLES 1, 2 AND 3 PROVIDE A TOTALITY OF COMMUNITY MEASURES ON THE INTRODUCTION OF COMMON QUALITY STANDARDS, HAVING THE PURPOSE OF ENCOURAGING TRADE INITIATIVES WITH A VIEW TO IMPROVING THE QUALITY OF THE PRODUCTS AND OF PERFECTING THE ORGANIZATION OF PRODUCTION .
14 EVEN IF THE QUALITY STANDARDS WERE INTENDED TO DEAL MERELY WITH THE MARKETING OF THE PRODUCTS, THEY WOULD NEVERTHELESS HAVE A RESTRICTIVE EFFECT ON THE PRODUCTION STAGE .
15 IT THUS FOLLOWS FROM THE GENERAL TENOR OF THE REGULATION THAT, AS REGARDS THE INTERNAL TRADE OF THE COMMUNITY, THE ORGANIZATION OF THE MARKET FOR THE PRODUCTS IN QUESTION IS BASED UPON FREEDOM OF COMMERCIAL TRANSACTIONS UNDER CONDITIONS OF GENUINE COMPETITION, THANKS TO STABILIZATION OF THE QUALITY OF THE PRODUCTS .
16 SUCH A SYSTEM EXCLUDES ANY NATIONAL SYSTEM OF REGULATIONS WHICH COULD IMPEDE DIRECTLY OR INDIRECTLY, ACTUALLY OR POTENTIALLY, TRADE WITHIN THE COMMUNITY .
17 A NATIONAL ORGANIZATION HAVING THE PURPOSE OF RATIONING PRODUCTION AFFECTS - OR IS AT ANY RATE CAPABLE OF AFFECTING - THE SYSTEM OF TRADE THUS DEFINED, AND MUST ACCORDINGLY BE CONSIDERED A MEASURE HAVING AN EFFECT EQUIVALENT TO QUANTITATIVE RESTRICTIONS WITHIN THE MEANING OF THE REGULATION .
18 ACCORDINGLY THE QUESTION REFERRED OUGHT TO BE ANSWERED TO THE EFFECT THAT ARTICLE 10 OF REGULATION NO 234/68, INTERPRETED WITHIN THE FRAMEWORK OF THE TOTALITY OF THE PROVISIONS ON THE ESTABLISHMENT OF A COMMON ORGANIZATION OF THE MARKET IN LIVE TREES AND OTHER PLANTS, BULBS, ROOTS AND THE LIKE, CUT FLOWERS AND ORNAMENTAL FOLIAGE, EXCLUDES THE EXISTENCE OF ANY NATIONAL SYSTEM HAVING THE PURPOSE OF QUANTITATIVELY RESTRICTING THE CULTIVATION OF ONE OF THE PRODUCTS FALLING WITHIN THE COMMON ORGANIZATION OF THE MARKET .
19/20 THE COSTS INCURRED BY THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS AND BY THE COMMISSION OF THE EUROPEAN COMMUNITIES, WHICH HAVE SUBMITTED OBSERVATIONS TO THE COURT, ARE NOT RECOVERABLE, AND AS THESE PROCEEDINGS ARE, INSOFAR AS THE PARTIES TO THE MAIN ACTION ARE CONCERNED, A STEP IN THE ACTION PENDING BEFORE THE NATIONAL COURT, COSTS ARE A MATTER FOR THAT COURT .
ON THOSE GROUNDS,
THE COURT
IN ANSWER TO THE QUESTION REFERRED TO IT BY THE ECONOMIC MAGISTRATE OF THE ARRONDISSEMENTSRECHTBANK OF HAARLEM BY A JUDGMENT DATED 10 DECEMBER 1973, HEREBY RULES :
ARTICLE 10 OF REGULATION NO 234/68, INTERPRETED IN THE FRAMEWORK OF THE TOTALITY OF THE PROVISIONS RELATING TO THE ESTABLISHMENT OF A COMMON ORGANIZATION OF THE MARKET IN LIVE TREES AND OTHER PLANTS, BULBS, ROOTS AND THE LIKE, CUT FLOWERS AND ORNAMENTAL FOLIAGE, EXCLUDES ANY NATIONAL SYSTEM HAVING THE PURPOSE OF QUANTITATIVELY RESTRICTING THE CULTIVATION OF ONE OF THE PRODUCTS FALLING WITHIN THE COMMON ORGANIZATION OF THE MARKET .
