1 . TAX PROVISIONS - INTERNAL TAXATION - PROVISIONS OF THE TREATY - OBJECTIVE
( EEC TREATY , ART . 95 )
2 . TAX PROVISIONS - INTERNAL TAXATION - PROVISIONS WHOSE EFFECT IS TO PROTECT DOMESTIC PRODUCTION - SIMILAR DOMESTIC AND IMPORTED PRODUCTS - CONCEPT OF ' ' SIMILAR PRODUCTS ' ' - FLEXIBLE INTERPRETATION
( EEC TREATY , FIRST PARAGRAPH OF ART . 95 )
3 . TAX PROVISIONS - NATIONAL TAXATION - PROVISIONS WHOSE EFFECT IS TO PROTECT DOMESTIC PRODUCTION - COMPETING DOMESTIC AND IMPORTED PRODUCTS - CONCEPT OF COMPETING PRODUCTS - CRITERIA FOR APPRAISAL
( EEC TREATY , SECOND PARAGRAPH OF ART . 95 )
1 . THE FIRST AND SECOND PARAGRAPHS OF ARTICLE 95 OF THE TREATY COMPLEMENT THE PROVISIONS ON THE ABOLITION OF CUSTOMS DUTIES AND CHARGES HAVING EQUIVALENT EFFECT SINCE THEIR OBJECTIVE IS TO ENSURE THE FREE MOVEMENT OF GOODS BETWEEN THE MEMBER STATES UNDER NORMAL CONDITIONS OF COMPETITION BY ELIMINATING ANY FORM OF PROTECTION WHICH MAY RESULT IN THE APPLICATION OF INTERNAL TAXATION WHICH DISCRIMINATES AGAINST PRODUCTS FROM OTHER MEMBER STATES . IN THAT RESPECT ARTICLE 95 GUARANTEES THE COMPLETE NEUTRALITY OF INTERNAL TAXATION AS REGARDS COMPETITION BETWEEN DOMESTIC PRODUCTS AND IMPORTED PRODUCTS .
2 . THE FIRST PARAGRAPH OF ARTICLE 95 MUST BE INTERPRETED WIDELY SO AS TO COVER ALL TAXATION PROCEDURES WHICH CONFLICT WITH THE PRINCIPLE OF THE EQUALITY OF TREATMENT OF DOMESTIC PRODUCTS AND IMPORTED PRODUCTS ; IN ORDER TO DO SO IT IS THEREFORE NECESSARY TO INTERPRET THE CONCEPT OF ' ' SIMILAR PRODUCTS ' ' WITH SUFFICIENT FLEXIBILITY . THUS IT IS NECESSARY TO CONSIDER AS ' ' SIMILAR ' ' PRODUCTS WHICH HAVE SIMILAR CHARACTERISTICS AND MEET THE SAME NEEDS FROM THE POINT OF VIEW OF CONSUMERS . IT IS ACCORDINGLY NECESSARY TO DETERMINE THE SCOPE OF THE FIRST PARAGRAPH OF ARTICLE 95 ON THE BASIS NOT OF THE CRITERION OF THE STRICTLY IDENTICAL NATURE OF THE PRODUCTS BUT ON THAT OF THEIR SIMILAR AND COMPARABLE USE .
3 . IF THE CONDITION OF SIMILARITY REQUIRED BY THE FIRST PARAGRAPH OF ARTICLE 95 OF THE TREATY IS NOT FULLY MET THE SECOND PARAGRAPH OF THAT ARTICLE HAS THE FUNCTION OF COVERING ALL FORMS OF INDIRECT PROTECTION THROUGH TAXATION IN THE CASE OF PRODUCTS WHICH , WITHOUT BEING SIMILAR WITHIN THE MEANING OF THE FIRST PARAGRAPH , ARE NEVERTHELESS IN COMPETITION , EVEN PARTIAL , INDIRECT OR POTENTIAL .
WITH REGARD TO SPIRITS FOR HUMAN CONSUMPTION , SPIRITS OBTAINED FROM CEREALS AND RUM , AS PRODUCTS OF DISTILLATION , SHARE WITH SPIRITS OBTAINED FROM WINE SUFFICIENT COMMON CHARACTERISTICS TO FORM , AT LEAST IN CERTAIN CIRCUMSTANCES , AN ALTERNATIVE CHOICE FOR CONSUMERS . THAT FINDING CONSTITUTES SUFFICIENT GROUND FOR HOLDING THAT SUCH PRODUCTS ARE IN COMPETITION WITH EACH OTHER AND THAT IT IS NOT PERMISSIBLE FOR TAXATION IMPOSED ON THEM TO HAVE A PROTECTIVE EFFECT IN FAVOUR OF NATIONAL PRODUCTION . IN THIS RESPECT IT IS IMPORTANT , DISREGARDING ANY COMPARISON OF QUANTITIES CON- SUMED AND IMPORTED , TO TAKE INTO CONSIDERATION THE POTENTIAL MARKET FOR THE PRODUCTS IN QUESTION IN THE ABSENCE OF PROTECTIVE MEASURES . ACCORDINGLY ARTICLE 95 PROHIBITS A NATIONAL SYSTEM OF TAXATION AFFECTING DIFFERENTLY IMPORTED WHISKY AND DOMESTIC PRODUCTION OF SPIRITS OBTAINED FROM WINE .