C-124/86 Commission v Italy

Judgment of the Court of 24 November 1987. - Commission of the European Communities v Italian Republic. - Failure by a Member State to fulfil its obligations - Failure to transpose Council Directive 83/183/EEC into national law - Tax exemptions applicable to permanent imports from Member States of the personal property of individuals. - Case 124/86. European Court reports 1987 Page 04661

Summary Parties Grounds Decision on costs Operative part

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MEMBER STATES - OBLIGATIONS - IMPLEMENTATION OF DIRECTIVES - FAILURE OF A MEMBER STATE TO FULFIL ITS OBLIGATIONS - REASONS FOR FAILURE - NOT ACCEPTABLE

( EEC TREATY, ART . 169 )

A MEMBER STATE MAY NOT PLEAD PROVISIONS, PRACTICES OR CIRCUMSTANCES EXISTING IN ITS INTERNAL LEGAL SYSTEM IN ORDER TO JUSTIFY A FAILURE TO COMPLY WITH OBLIGATIONS AND TIME-LIMITS LAID DOWN BY DIRECTIVES .

IN CASE 124/86

COMMISSION OF THE EUROPEAN COMMUNITIES, REPRESENTED BY SERGIO FABRO, A MEMBER OF ITS LEGAL DEPARTMENT, ACTING AS AGENT, WITH AN ADDRESS FOR SERVICE IN LUXEMBOURG AT THE OFFICE OF G . KREMLIS, ALSO A MEMBER OF ITS LEGAL DEPARTMENT, JEAN MONNET BUILDING, KIRCHBERG,

APPLICANT,

V

ITALIAN REPUBLIC, REPRESENTED BY LUIGI FERRARI BRAVO, HEAD OF THE DEPARTMENT FOR CONTENTIOUS DIPLOMATIC AFFAIRS, TREATIES AND LEGISLATIVE MATTERS AT THE MINISTRY OF FOREIGN AFFAIRS, ACTING AS AGENT, ASSISTED BY IVO BRAGUGLIA, AVVOCATO DELLO STATO, WITH AN ADDRESS FOR SERVICE IN LUXEMBOURG AT THE ITALIAN EMBASSY,

DEFENDANT,

APPLICATION FOR A DECLARATION THAT, BY FAILING TO ADOPT WITHIN THE PRESCRIBED PERIOD THE PROVISIONS NECESSARY TO COMPLY WITH COUNCIL DIRECTIVE 83/183/EEC OF 28 MARCH 1983 ON TAX EXEMPTIONS APPLICABLE TO PERMANENT IMPORTS FROM A MEMBER STATE OF THE PERSONAL PROPERTY OF INDIVIDUALS ( OFFICIAL JOURNAL 1983, L*105, P.*64 ), THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY,

THE COURT

COMPOSED OF : G . BOSCO, PRESIDENT OF CHAMBER, ACTING AS PRESIDENT, J . C . MOITINHO DE ALMEIDA, PRESIDENT OF CHAMBER, T . KOOPMANS, U . EVERLING, C . KAKOURIS, R . JOLIET AND F . SCHOCKWEILER, JUDGES,

ADVOCATE GENERAL : C . O . LENZ

REGISTRAR : B . PASTOR, ADMINISTRATOR

HAVING REGARD TO THE REPORT FOR THE HEARING AND FURTHER TO THE HEARING ON 1 APRIL 1987,

AFTER HEARING THE OPINION OF THE ADVOCATE GENERAL DELIVERED AT THE SITTING ON 1 APRIL 1987,

GIVES THE FOLLOWING

JUDGMENT

Grounds

1BY AN APPLICATION LODGED AT THE COURT REGISTRY ON 26 MAY 1986 THE COMMISSION OF THE EUROPEAN COMMUNITIES BROUGHT AN ACTION BEFORE THE COURT UNDER ARTICLE 169 OF THE EEC TREATY FOR A DECLARATION THAT, BY FAILING TO ADOPT WITHIN THE PRESCRIBED PERIOD THE MEASURES NECESSARY TO COMPLY WITH COUNCIL DIRECTIVE 83/183/EEC OF 28 MARCH 1983 ON TAX EXEMPTIONS APPLICABLE TO PERMANENT IMPORTS FROM A MEMBER STATE OF THE PERSONAL PROPERTY OF INDIVIDUALS ( OFFICIAL JOURNAL 1983, L*105, P.*64 ), THE ITALIAN REPUBLIC HAD FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY .

2ARTICLE 12*(1 ) OF DIRECTIVE 83/183/EEC PROVIDES THAT MEMBER STATES ARE TO BRING INTO FORCE THE REQUISITE LAWS, REGULATIONS AND ADMINISTRATIVE PROVISIONS BY 1 JANUARY 1984 AT THE LATEST . ARTICLE 12*(2 ) REQUIRES MEMBER STATES TO COMMUNICATE TO THE COMMISSION THE TEXT OF THE MAIN PROVISIONS OF NATIONAL LAW WHICH THEY HAVE ADOPTED IN THE FIELD COVERED BY THE DIRECTIVE .

3NOT HAVING RECEIVED FROM THE ITALIAN GOVERNMENT ANY COMMUNICATION CONCERNING MEASURES TO IMPLEMENT THE DIRECTIVE, THE COMMISSION SENT IT ON 21 DECEMBER 1984 A FORMAL NOTICE CALLING UPON IT TO SUBMIT ITS OBSERVATIONS . AFTER DELIVERING A REASONED OPINION ON 18 JULY 1985 AND AFTER GRANTING THREE REQUESTS MADE BY THE ITALIAN GOVERNMENT FOR EXTENSIONS OF THE PERIOD IT WAS ALLOWED FOR COMPLYING WITH THE REASONED OPINION, SO AS TO ENABLE IT TO ADOPT A DRAFT LAW RELATING TO THE DIRECTIVE, THE COMMISSION BROUGHT THE PRESENT ACTION .

4REFERENCE IS MADE TO THE REPORT FOR THE HEARING FOR A FULLER ACCOUNT OF THE FACTS, THE PROCEDURE AND THE SUBMISSIONS AND ARGUMENTS OF THE PARTIES, WHICH ARE MENTIONED OR DISCUSSED HEREINAFTER ONLY IN SO FAR AS IS NECESSARY FOR THE REASONING OF THE COURT .

5THE ITALIAN GOVERNMENT ACKNOWLEDGES THAT IT HAS NOT YET FULFILLED ITS OBLIGATIONS . AT THE HEARING IT STATED THAT THE DRAFT LAW DESIGNED TO IMPLEMENT THE DIRECTIVE WAS BEFORE PARLIAMENT AND HAD ALREADY RECEIVED THE ASSENT OF THE BUDGETARY COMMITTEE . THE LEGISLATIVE PROCESS WOULD CONTINUE BUT POLITICAL DIFFICULTIES HAD PREVENTED IT FROM BEING COMPLETED BEFORE THE COURT HEARING .

6IT SHOULD BE RECALLED THAT IT IS ESTABLISHED CASE-LAW THAT A MEMBER STATE MAY NOT PLEAD PROVISIONS, PRACTICES OR CIRCUMSTANCES EXISTING IN ITS INTERNAL LEGAL SYSTEM IN ORDER TO JUSTIFY A FAILURE TO COMPLY WITH OBLIGATIONS AND TIME-LIMITS LAID DOWN BY DIRECTIVES .

7IT MUST THEREFORE BE CONCLUDED THAT, BY FAILING TO ADOPT WITHIN THE PRESCRIBED PERIOD THE MEASURES NECESSARY TO COMPLY WITH COUNCIL DIRECTIVE 83/183/EEC OF 28 MARCH 1983 ON TAX EXEMPTIONS APPLICABLE TO PERMANENT IMPORTS FROM A MEMBER STATE OF THE PERSONAL PROPERTY OF INDIVIDUALS, THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY .

Costs

COSTS

8UNDER ARTICLE 69*(2 ) OF THE RULES OF PROCEDURE, THE UNSUCCESSFUL PARTY MUST BE ORDERED TO PAY THE COSTS . AS THE DEFENDANT HAS FAILED IN ITS SUBMISSIONS, IT MUST BE ORDERED TO PAY THE COSTS .

Operative part

ON THOSE GROUNDS,

THE COURT

HEREBY :

¹ DECLARES THAT, BY FAILING TO ADOPT WITHIN THE PRESCRIBED PERIOD THE PROVISIONS NECESSARY TO COMPLY WITH COUNCIL DIRECTIVE 83/183/EEC OF 28 MARCH 1983 ON TAX EXEMPTIONS APPLICABLE TO PERMANENT IMPORTS FROM A MEMBER STATE OF THE PERSONAL PROPERTY OF INDIVIDUALS, THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY;

Signatures

² ORDERS THE ITALIAN REPUBLIC TO BEAR THE COSTS .

O P I N I ON OF MR A D V O C A TE G E N E R AL L E NZ delivered on 1 April 1987 * Mr President, Members of the Court,

1In delivering my Opinion on the two actions brought against a Member State for failure to fulfil its Treaty obligations, which the Court has just heard, I propose to be brief.

2The Commission of the European Communities, the applicant, has in essence applied to the Court for a declaration, with costs, that the Italian Republic, the defendant, is in breach of its obligations under the EEC Treaty by failing to adopt within the time allowed the laws, regulations and administrative provisions necessary to comply with Council Directives 83/181/EEC and 83/183/EEC of 28 March 1983. 1

3The defendant has not denied the failure to fulfil its Treaty obligations of which it is accused, nor has it presented any formal submissions; it has merely pointed out that some of the provisions contained in the directives are already applicable in Italian law, albeit subject to different procedures and time-limits. It has also pointed out the efforts made — so far without success — to implement the directives in its national law prior to today's oral procedure.

4Under Article 93 of Directive 83/181/ EEC and Article 12 of Directive 83/183/EEC the Member States were required to bring into force the laws, regulations and administrative provisions necessary for compliance with the directives by 1 July and 1 January 1984 respectively. The defendant has undisputably failed to fulfil that obligation.

Conclusion

5I therefore propose that the Court should grant both applications and order the defendant to pay the costs of the proceedings.

* Translated from the German.

Notes

(1) Council Directive 83/181/EEC of 28 March 1983 determining the scope of Article 14 (1) (d) of Directive

(77) /388/EEC as regards exemption from value-added tax on the final importation of certain goods (Official Journal

(198) 3, L 105, p. 38); Council Directive 83/183/EEC of 28 March 1983 on tax exemptions applicable to permanent imports from a Member Sute of the personal property of individuals (Official Journal 1983, L 105, p. 64).