VINAL CASE - GROUP C (GROUP 3)
S.p.A. Vinal v S.p.A. Orbat
Case 46/80
Court of Justice
14 January 1981
[1981] ECR 77
MEMORANDUM ON THE “S.P.A VINAL v. S.P.A ORBAT” CASE
In this short memorandum, we will analyze the answers of the Court of Justice given to the questions upon a preliminary ruling referred by the Pretura, Italian Court in Orbat “ S.p.A. Vinal v. S.p.A. Orbat” Case (Case 46/80) dated 14 January 1981”.
In the European Union, there is a “Customs Union” which aims at maintaining a free trade area between the Member States. Article 30 of the TFEU (ex Article 25 EC) states that “Customs duties on imports and exports and charges having equivalent effect shall be prohibited between Member States. This prohibition shall also apply to customs duties of a fiscal nature.” It means that Member States cannot apply custom duties on exports or imports between each other.
Moreover, in their relations with third countries, they shall apply the same external custom tariffs on all goods entering the Union. Custom Union allows the application of import quotas in some specific situations. As we have stated before, all these regulations look forward to the free movement of goods within the European Union (including Andorra, Monaco, San Marino and Turkey) without obstacles such as custom duties.
In the case stated above, the dispute between S.P.A Vinal and S.p.A Orbat arises from the different taxation of two products which are subject to their contractual relationship; i) denatured synthetic ethyl alcohol produced from petroleum and ii) denatured synthetic ethyl alcohol obtained from fermentation. The first product is taxed higher than the second product which is mostly imported from France.
Defendant’s claims and Commission’s opinions that support it, believe that these products are similar in practical use. Italy imposes higher taxes to the denatured synthetic ethyl alcohol more than the denatured synthetic ethyl alcohol obtained from fermentation in order to prevent
Case 46/80
Court of Justice
14 January 1981
[1981] ECR 77
MEMORANDUM ON THE “S.P.A VINAL v. S.P.A ORBAT” CASE
In this short memorandum, we will analyze the answers of the Court of Justice given to the questions upon a preliminary ruling referred by the Pretura, Italian Court in Orbat “ S.p.A. Vinal v. S.p.A. Orbat” Case (Case 46/80) dated 14 January 1981”.
In the European Union, there is a “Customs Union” which aims at maintaining a free trade area between the Member States. Article 30 of the TFEU (ex Article 25 EC) states that “Customs duties on imports and exports and charges having equivalent effect shall be prohibited between Member States. This prohibition shall also apply to customs duties of a fiscal nature.” It means that Member States cannot apply custom duties on exports or imports between each other.
Moreover, in their relations with third countries, they shall apply the same external custom tariffs on all goods entering the Union. Custom Union allows the application of import quotas in some specific situations. As we have stated before, all these regulations look forward to the free movement of goods within the European Union (including Andorra, Monaco, San Marino and Turkey) without obstacles such as custom duties.
In the case stated above, the dispute between S.P.A Vinal and S.p.A Orbat arises from the different taxation of two products which are subject to their contractual relationship; i) denatured synthetic ethyl alcohol produced from petroleum and ii) denatured synthetic ethyl alcohol obtained from fermentation. The first product is taxed higher than the second product which is mostly imported from France.
Defendant’s claims and Commission’s opinions that support it, believe that these products are similar in practical use. Italy imposes higher taxes to the denatured synthetic ethyl alcohol more than the denatured synthetic ethyl alcohol obtained from fermentation in order to prevent