Jorge Baigorri 19/04/10

Judgment of the court of 17 december1970
Case 25/70, Koster

1) Case facts:

The Hessischer Verwaltungsgerichtshof (higher administrative court of the land of Hesse) by virtue of article 177 of the EEC treaty has asked the court to give a ruling on the validity of regulation N° 102/64/EEC of the Commission of 28 July 1964 concerning the import and export licenses for cereals and processed cereals products , rice , broken rice and processed rice products, and whether articles 1 and 7 of that regulation are valid in so far as they relate to export licenses.
In view of the grounds of the judgment at first instance and appeal concerning the legality of the system of deposits established in art. 1 and 7, the higher administrative court of the land of Hesse formulated the question relating the “management committee” procedure introduced by article 25 and 26.

2) Problem:

In the question relating to the “management committee” procedure the court is asked to considered whether the common organization of the market in cereals laid down by article 26, must be considered to be contrary to the EEC treaty or whether this procedure is compatible with article 43 (2), 155,173 and 177.

3) Reasoning of the court:

The objective of the treaty was to create a common market and the agreement creates mutual obligations between them.
The Common Agricultural Policy is adopted by the council according to article 43 and regulation adopted according to a different procedure that article 43 can be done by the Council or the Commission with an authorization complying article 155.
In the light of article 16 the Commission was authorized to include in regulation N° 102/64, as regards exports licenses the obligation to export and deposit.
In answer to the question referred by Hessische , the Court under the article 16 and 155 , gives validity to the regulation N° 102/64 EEC of the Commission of 28 July 1964 concerning import and export