Company X imported bananas from Brazil with valid import permissions but new protective measures banning banana imports from Brazil were introduced after the shipment arrived. This caused Company X to lose money from purchasing and transporting the bananas as well as potential profits from selling them, since returning or reselling the bananas was not economically viable. The new protective measures violated the principle of legitimate expectations in administrative law since Company X reasonably expected to import the bananas based on the permissions granted prior to the policy change.
Original Description:
Original Title
Public Administration and Administrative Policies 2019
Company X imported bananas from Brazil with valid import permissions but new protective measures banning banana imports from Brazil were introduced after the shipment arrived. This caused Company X to lose money from purchasing and transporting the bananas as well as potential profits from selling them, since returning or reselling the bananas was not economically viable. The new protective measures violated the principle of legitimate expectations in administrative law since Company X reasonably expected to import the bananas based on the permissions granted prior to the policy change.
Company X imported bananas from Brazil with valid import permissions but new protective measures banning banana imports from Brazil were introduced after the shipment arrived. This caused Company X to lose money from purchasing and transporting the bananas as well as potential profits from selling them, since returning or reselling the bananas was not economically viable. The new protective measures violated the principle of legitimate expectations in administrative law since Company X reasonably expected to import the bananas based on the permissions granted prior to the policy change.
The complainant company X from Germany is an importer of bananas from
Brazil. Company X has valid import permissions (individual administrative decision) from Brazil, which were issued by EU administration. Company X loaded banana transport on the ship and sent it from Brazil on 31st March 2016? On 10th April 2016 community protection administrative measures have been introduced which ruled on immediate suspension of banana imports from Brazil. From EU point of view it was necessary to protect the common market during the crisis. Company X just after arrival to Germany, in the port, on 14th April 2016, found out about new protective measures. As a result of the ban of the banana import from Brazil it lost money for the banana purchase, transport and it lost the benefits from selling bananas in EU. It was economically non profitable to send the transport back and it had to destroy bananas.
1. What is the problem of this case? Describe it.
2. Which principle of public administration the case does concern? 3. Whether the principle was violated or not? Justify your opinion. 4.Who is responsible for the problem appearing in this case? Justify your answer.