NoL128/24 OfficialJournaloftheEuropeanCommunities 10.5.74
REGULATION (EEC)No1132/74OFTHECOUNCIL
of29April1974
onproductionrefundsinthecerealsandricesectors
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,useofrice,therefundforbrokenriceshouldbe
fixedatsuchafigurethatthepriceofbrokenrice
isbroughtdownto10-20unitsofaccountper100
kilogrammes ;whereas,however,thelevelofthe
abovementioned supplypricesshouldbeguaranteed
onlyinsofarasthepriceofthebasicproductson
theworldmarketissituatedbelowthethreshold
priceforeachoftheseproducts;
Whereasonaccountoftheconnectionbetweenthe
productionpricesoftherawmaterialsusedinthe
manufactureofcerealandpotatostarchesandof
theinterchangeability ofthesetwoproducts,a
balancedrelationshipshouldbemaintainedbetween
thepricesoftheseproducts;whereastherefund
grantedshouldthereforebethesameforbothof
theseproducts;whereas,however,therefundpaid
toproducersofpotatostarchshouldbesuchasto
assureCommunitypotatoproducersofaprice
allowingthemafairincome,whilethemarket
conditionsforcerealsusedinstarchmanufacture
andthecommonmarketorganizations governing
themaresuchastoensurethattheirpriceisin
factheldatthelevelofthethresholdprice;whereas
stepsshouldthereforebetakentoensurethatpotato
producersultimatelybenefitfromtherefundpaid
toproducersofpotatostarch;HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ;
HavingregardtoCouncilRegulationNo120/67/
EEC(*)of13June1967onthecommon
organization ofthemarketincereals,aslast
amendedbyRegulation (EEC)No1125/74(2),and
inparticularArticle11(3)thereof;
HavingregardtoCouncilRegulationNo359/67/
EEC(3)of15July1967onthecommonorganization
ofthemarketinrice,aslastamendedbyRegulation
(EEC)No1129/74(4),andinparticularArticle9
(2)thereof;
HavingregardtotheproposalfromtheCommission ;
Whereas,onaccountofthespecialsituationonthe
marketinstarchesand,inparticular,theneedfor
thestarchindustrytoensurethatitspricesare
competitivewiththoseofsubstituteproducts,
RegulationNos120/67/EECand359/67/EEC
providedforthegrantingofaproductionrefund,in
orderthatthestarchindustrymightobtainthe
basicproductsitrequiresatalowerpricethanthat
whichwouldresultfromtheapplicationoftherules
ofthecommonorganizationofthemarketsinthe
productsinquestion;
Whereasapreciseassessmentofthesituation
resultingfromthelevelofcommonpricesandfrom
thecompetitionbetween,ontheonehand,maize
starch,ricestarch,potatostarchand,ontheother,
thesubstitutechemicalproducts,indicatesthatthe
refundshouldbefixedatsuchafigurethatthe
priceofmaizeusedinstarchmanufactureisbrought
downto8-20unitsofaccountper100kilogrammes ;
whereasthispriceof8-20unitsofaccountfor
commonwheatensuresaproperbalancebetween
theuseofthisproductandtheuseofmaize;
whereasinordertoobtainthesamebalanceintheWhereastheleveloftheproductionrefundtobe
grantedonmaizeusedbythemaizeindustryinthe
manufactureofgroatsandmealforusebythe
brewingindustryintheproductionofbeer,andon
brokenriceusedforthesamepurposeshouldbe
suchastoachieveabalancebetweenthecostof
supplyingthebrewingindustrywithmaizestarch,
ontheonehand,andwithmaizegroatsandmeal
andbrokenrice,ontheother;whereasthisobjective
willbeachievedbyfixingtherefundonmaizefor
themanufactureofgroatsandmealatthesame
levelastherefundonmaizeforthemanufacture of
starchand,also,byfixingtherefundonbroken
riceatalevelwhichreducesthepricetothebrewing
industryto10-20unitsofaccountper100kilo­
grammes;
C)OJNo117,19.6.1967,p.2269/67.
(2)Seepage12ofthisOfficialJournal.
(3)OJNo174,31.7.1967,p.1.
(4)Seepage20ofthisOfficialJournal.WhereasArticle11(1)ofRegulationNo120/67/EEC
providedforaproductionrefundtobegrantedon
groatsandmealforthemanufactureofglucoseby
theprocessknownasdirecthydrolysis;whereas

10.5.74 OfficialJournaloftheEuropeanCommunities NoL128/25
lation(EEC)No178/73(8),havefrequentlybeen
amended;whereas,forreasonsofclarity,itispre­
ferabletoincludealltheprovisionsrelatingto
productionrefundsoncerealsandriceinasingle
Regulation,
HASADOPTED THISREGULATION :
TITLEI
Productionrefundsoncerealstarch
Article1thisrefundshouldbefixedatsuchalevelasto
achieveabalancebetweenglucosemanufactured by
directhydrolysisandglucosemanufactured from
starch;
Whereas,intheeventofappreciableandpersistent
variationsintheworldpriceofmaize,common
wheatandbrokenrice,theserefundsshouldbe
limited,solongasworldmarketpricesremainhigh,
insuchawayastodeterimportsatpricesbelow
theworldmarketlevelandtopreventthefinancial
burdenofproductionrefundsfrombecomingex­
cessive;
Whereastheabovementioned measuresshouldnot
disturbthemarketsinthirdcountries;whereas,
therefore,intheeventofanappreciableand
persistentincreaseinpricesonthesaidmarkets,
provisionshouldbemadeforcompensatory
measuresconsistingofthechargingofalevyon
exportedproductswithaviewtoreducingthe
advantagesgrantedtoCommunitymanufacturers to
anappropriatelevel;
WhereasunderArticle57oftheActofAccession(1),
infixingthelevelofthevariouselementsoftheprice
andinterventionsystem,exceptforintervention
prices,accountistobetakenforthenewMember
States,totheextentnecessaryfortheproperfunc­
tioningofCommunityrules,ofthedifferencein
pricesexpressedbythecompensatory amount;
whereas,however,fortheapplicationofthispro­
vision,thecompensatory amountmaybereducedin
accordancewithArticle7ofCouncilRegulation
(EEC)No229/73(2)of31January1973layingdown
generalrulesforthesystemofcompensatory amounts
forcerealsandfixingtheseforcertainproducts,as
lastamendedbyRegulation (EEC)No1967/73(3)
andArticle5ofCouncilRegulation (EEC)No243/
73(4)of31January1973layingdowngeneralrules
forthesystemofcompensatory amountsforriceand
fixingtheseamountsforcertainproducts;1.MemberStatesshallgrantaproductionrefund
onmaizeandcommonwheatforthemanufacture
ofstarchequaltothedifferenceper100kilogrammes
betweenthethresholdpriceforeachoftheseprod­
ucts,lessanyaccessioncompensatory amountappli­
cable,and8-20unitsofaccount.
Theproductionrefundonmaizeforthemanufacture
ofstarchshallbeincreasedinItalyby0-30unitof
accountper100kilogrammesofmaize.
Thisincreaseshallnot,however,applyifrecourse
ishadtotheprovisionsofArticle23(2)ofRegulation
No120/67/EEC..
2.MemberStatesshallgrantaproductionrefund
onbrokenriceforthemanufactureofstarchequal
tothedifferenceper100kilogrammesbetweenthe
thresholdpriceforbrokenrice,lessanyaccession
compensatory amountapplicable,and10-20units
ofaccount.
TITLEII
Productionrefundsonpotatostarch
Article2WhereasCouncilRegulationNo367/67/EEC(5)of
25July1967fixingproductionrefundsonmaize
groatsandmealandbrokenriceusedinthebrewing
industry,aslastamendedbyRegulation (EEC)No
1926/73(6),andCouncilRegulationNo371/67/EEC
(7)of25July1967fixingproductionrefundson
starchesandquellmehl,aslastamendedbyRegu­MemberStatesshallgrantaproductionrefundper
100kilogrammesofpotatostarch,calculatedataflat
rateinaccordancewiththeprovisionsofArticles3
and9,whichshallbeequaltotheaverageamountof
therefundgrantedduringtheperiodbeginningon
1Augustandendingon31Julyofthefollowing
yearper161kilogrammesofmaizeforstarchmanu­
facture.(x)OJNoL73,27.3.1972,p.14.
(2)OJNoL27,1.2.1973,p.25.
(2)OJNoL201,21.7.1973,p.8.
(4)OJNoL29,1.2.1973,p.26.
(5)OJNo174,31.7.1967,p.36.
(6)OjNoL199,19.7.1973,p.3.
C)OjNo174,31.7.1967,p.40. (8)OJNoL25,30.1.1973,p.5.

NoL128/26 10.5.74 OfficialJournaloftheEuropeanCommunities
Article3 Article5
MemberStatesshallgrantaproductionrefundon
maizegroatsandmealforthemanufactureofglucose
undersubheading17.02BIIoftheCommonCustoms
Tariff(1)bytheprocessknownasdirecthydrolysis.
Theproductionrefundper100kilogrammesofmaize
groatsandmealshallbeequaltothedifferenceper
100kilogrammes betweenthethresholdpricefor
maize,lessanyaccessioncompensatory amount
applicable,and8·20unitsofaccountmultipliedby
thecoefficient1·23.
Article61.Thepricetobepaidtotheproduceratthe
delivered-to-factory stageforthequantityofpotatoes
requiredtomanufacture100kilogrammesofpotato
starchshallbeequaltotheamountoftheproduction
refundmentionedinArticle2,increasedbyan
amountofnotlessthan10·45unitsofaccount.
2.Theproductionrefundshallbecalculatedonthe
basisofthequantityofpotatoesdeliveredtostarch
manufacturers ,accountbeingtakenofthestarch
contentofthepotatoesatthetimeofdelivery.
Itshallbepaidinfulltothestarchmanufacturer if
hefurnishesproof:
—ofthequantitiesofpotatoesdeliveredtohim
andtheirstarchcontentatthetimeofdelivery;
—ofpaymenttotheproducerofanamountnot
lessthanthepricefixedinparagraph1,account
beingtakenofthestarchcontentofthepotatoes.
Wherethepricepaidtotheproducerislessthanthe
minimumreferredtointhesecondindentofthe
precedingsubparagraph ,therefundpaidtothe
starchmanufacturer shallbereducedbythediffer­
enceinquestion.MemberStatesshalltakeallnecessarymeasuresto
ensurethattherefundsmentionedinArticles4and5
arelimitedtothequantitiesofmaizegroatsand
mealandbrokenriceactuallyusedintheCommunity
bythebrewingindustryintheproductionofbeer
orbytheglucoseindustry.
TITLEIV
Generalprovisions
Article7
TITLEIII1.Ifthepricesofthebasicproductsmentionedin
Articles1,4and5showappreciableandpersistent
variationsontheworldmarketsinrelationtothe
amountsspecifiedinthesaidArticles,namely8l20
unitsofaccountformaizeandcommonwheatand
10·20unitsofaccountforbrokenrice,theseamounts
maybealteredbytheCouncilactingonaqualified
majorityonaproposalfromtheCommission .
2.Iftheworldmarketpriceof,ontheonehand,
maizeorcommonwheat,and,ontheother,broken
riceappreciablyandpersistentlyexceeds8·20and
10·20unitsofaccount,respectively,anexportlevy
tocompensateforthedifferencebetweenpriceson
theworldmarketandsupplypricesforthesebasic
productswithintheCommunityshallbeintroduced
forproductsfallingwithinheadings11.08A,11.09,
17.02BII,17.05Band23.03AIoftheCommon
CustomsTariff.TheCommissionshallfixtheexport
levy.Productionrefundsonmaizegroats
andmealandbrokenrice
Article4
Article8
MemberStatesshallinformtheCommission not
laterthanfourmonthsaftertheendofthemarketing
yearofthequantityofproductsforwhichproduction
refundshavebeenpaid.1.MemberStatesshallgrantaproductionrefund
onmaizeusedbythemaizeindustryforthemanu­
factureofgroatsandmealusedbythebrewing
industryintheproductionofbeerequaltothe
refundgrantedonthesamedateonmaizeforstarch
manufacture .
2.MemberStatesshallgrantaproductionrefund
onbrokenriceusedbythebrewingindustryinthe
productionofbeer,equaltothedifferenceper
100kilogrammes betweenthethresholdpricefor
brokenrice,lessanyaccessioncompensatory amount
applicable,and10·20unitsofaccount.(*)PursuanttoRegulationNo189/66/EEC,theproducts
fallingwithintariffsubheading17.02BIaresubject
tothesamearrangements asthoselaiddownfor
productsfallingwithinsubheading17.02BII.

10.5.74 OfficialJournaloftheEuropeanCommunities NoL128/27
Article9 proofmentionedinthesecondsubparagraph of
Article3(2)mustbefurnished.
Article10DetailedrulesfortheapplicationofthisRegulation
shallbeadoptedinaccordancewiththeprocedure
laiddowninArticle26ofRegulationNo120/67/
EECandArticle26ofRegulationNo359/67/EECin
particularasregards:
(a)theexportlevyreferredtoinArticle7(2);
(b)thegrantingofadvancesonproductionrefunds
whichmayinvolvethegivingofsecurity;
(c)thecalculation,inaccordancewithascaledrawn
upintermsofthestarchcontentoftheproduct,
ofthequantityofpotatoesrequiredtomanufac­
ture100kilogrammesofstarch;
(d)theconditionsunderwhichpotatoesareaccepted
andpaidforandtheconditionsunderwhichtheRegulationNos367/67/EECand371/67/EECare
herebyrepealed.
Article11
ThisRegulationshallenterintoforce:
—on1August1974,forproductscoveredby
RegulationNo120/67/EEC,
—on1September1974,forproductscoveredby
RegulationNo359/67/EEC.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatLuxembourg ,29April1974.
FortheCouncil
ThePresident
J.ERTL