Van Gend En Loos Case
Van Gend en Loos Case
The Van Gend en Loos v Nederlandse Administratie der Belastingen case, also known as Case 26/62, is a landmark decision by the European Court of Justice, which had significant implications for the European Union legal system. Decided in 1963, this case established the doctrine of direct effect, which allows individuals and companies to rely on European Union law in proceedings taken before national courts.
Background
The case originated from Van Gend en Loos, a Dutch postal and transportation company, established in 1809 and later acquired by DHL. Van Gend en Loos imported a chemical substance, urea formaldehyde, from West Germany to the Netherlands. The authorities in the Benelux countries reclassified the chemical into a category with higher customs duties, thereby imposing an increased tariff on Van Gend en Loos.
The company contested the tariff, arguing that it violated Article 12 of the Treaty Establishing the European Economic Community, which prohibited new customs duties or increased tariffs between member states.
Legal Question
The core question was whether Article 12 of the Treaty had direct effect, meaning that it could be relied upon by individuals in national courts without any further implementation by the member states. The Dutch Tariefcommissie, a court that handled disputes related to tariffs, referred the question to the European Court of Justice under the preliminary ruling procedure.
Judgment
The European Court of Justice ruled in favor of Van Gend en Loos, establishing that European Union law could create rights and obligations not only for the member states but also for individuals and companies. The Court asserted that the European Economic Community was more than an agreement between member states; it was a new legal order for the benefit of which the states had limited their sovereign rights.
The decision laid down the criteria for direct effect: the provision must be clear, precise, and unconditional. This case is a cornerstone in the development of the European Union legal system, reinforcing the supremacy of European law over conflicting national law and empowering individuals to invoke European provisions in national courts.
Impact
The Van Gend en Loos case was instrumental in shaping the supranational nature of European Union law. It was followed by other significant rulings, including Costa v ENEL, which further established the principle of supremacy of EU law. These cases collectively contributed to the foundation of the European legal order and enhanced the role of the European Court of Justice in ensuring the uniform application of EU law across member states.