Keywords
Summary

Keywords

1 . TAX PROVISIONS - INTERNAL TAXATION - PROHIBITION OF DISCRIMINATION BETWEEN IMPORTED PRODUCTS AND SIMILAR DOMESTIC PRODUCTS - SIMILAR PRODUCTS - CONCEPT - INTERPRETATION - CRITERIA - SCOTCH WHISKY AND FRUIT WINE OF THE LIQUEUR TYPE

( EEC TREATY , ART . 95 , FIRST PARAGRAPH )

2 . TAX PROVISIONS - INTERNAL TAXATION - SYSTEM OF DIFFERENTIAL TAXATION - PERMISSIBILITY - CONDITIONS - PURSUIT OF OBJECTIVES THAT ARE COMPATIBLE WITH COMMUNITY LAW - NO DISCRIMINATORY OR PROTECTIVE EFFECT

( EEC TREATY , ART . 95 )

Summary

1 . IN ORDER TO DETERMINE WHETHER PRODUCTS ARE SIMILAR WITHIN THE TERMS OF THE PROHIBITION LAID DOWN IN THE FIRST PARAGRAPH OF ARTICLE 95 OF THE TREATY , IT IS NECESSARY TO CONSIDER WHETHER THEY HAVE SIMILAR CHARACTERISTICS AND MEET THE SAME NEEDS FROM THE POINT OF VIEW OF CONSUMERS . AS THE CONCEPT OF SIMILARITY MUST BE GIVEN A BROAD INTERPRETATION , THE SIMILARITY OF PRODUCTS MUST BE ASSESSED NOT ACCORDING TO WHETHER THEY ARE STRICTLY IDENTICAL BUT ACCORDING TO WHETHER THEIR USE IS SIMILAR AND COMPARABLE .

HENCE , IN ORDER TO DETERMINE WHETHER TWO CATEGORIES OF BEVERAGES ARE SIMILAR , IT IS NECESSARY FIRST TO CONSIDER CERTAIN OBJECTIVE CHARACTERISTICS , SUCH AS THEIR ORIGIN , THE METHOD OF MANUFACTURE AND THEIR ORGANOLEPTIC PROPERTIES , IN PARTICULAR TASTE AND ALCOHOL CONTENT , AND SECONDLY TO CONSIDER WHETHER OR NOT BOTH CATEGORIES OF BEVERAGES ARE CAPABLE OF MEETING THE SAME NEEDS FROM THE POINT OF VIEW OF CONSUMERS .

IT IS CLEAR FROM A COMPARISON OF SCOTCH WHISKY AND FRUIT WINE OF THE LIQUEUR TYPE , WHICH IS BASED ON THOSE CRITERIA , THAT THEY ARE NOT SIMILAR PRODUCTS .

2 . AT ITS PRESENT STAGE OF DEVELOPMENT COMMUNITY LAW , IN PARTICULAR THE SECOND PARAGRAPH OF ARTICLE 95 OF THE TREATY , DOES NOT RESTRICT THE FREEDOM OF EACH MEMBER STATE TO LAY DOWN TAX ARRANGEMENTS WHICH DIFFERENTIATE BETWEEN CERTAIN PRODUCTS ON THE BASIS OF OBJECTIVE CRITERIA , SUCH AS THE NATURE OF THE RAW MATERIALS USED OR THE PRODUCTION PROCESSES EMPLOYED . SUCH DIFFERENTIATION IS COMPATIBLE WITH COMMUNITY LAW IF IT PURSUES OBJECTIVES OF ECONOMIC POLICY WHICH ARE THEMSELVES COMPATIBLE WITH THE REQUIREMENTS OF THE TREATY AND ITS SECONDARY LEGISLATION , AND IF THE DETAILED RULES ARE SUCH AS TO AVOID ANY FORM OF DISCRIMINATION , DIRECT OR INDIRECT , IN REGARD TO IMPORTS FROM OTHER MEMBER STATES OR ANY FORM OF PROTECTION OF COMPETING DOMESTIC PRODUCTS . A SYSTEM OF TAXATION WHICH DIFFERENTIATES BETWEEN CERTAIN BEVERAGES DOES NOT UNDULY FAVOUR DOMESTIC PRODUCERS WHERE A SIGNIFICANT PROPORTION OF DOMESTIC PRODUCTION OF ALCOHOLIC BEVERAGES FALLS WITHIN EACH OF THE RELEVANT TAX CATEGORIES .