OfficialJournaloftheEuropeanCommunities 193
31.7.67 OFFICIALJOURNALOFTHEEUROPEAN COMMUNITIES No174/1
REGULATION No359/67/EECOFTHECOUNCIL
of25July1967
onthecommonorganisationofthemarketinrice
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ,andinparticular
Articles42and43thereof;
HavingregardtotheproposalfromtheCommission :
HavingregardtotheOpinionoftheEuropean
Parliament 1;
Whereastheoperationanddevelopmentofthe
commonmarketinagriculturalproductsmustbe
accompanied bytheestablishment ofacommon
agriculturalpolicytoincludeinparticularacommon
organisationofagriculturalmarketswhichmaytake
variousformsdependingontheproduct;
WhereasRegulationNo16/641EEC2providedthat
thecommonorganisationofthemarketinrice
shouldbeestablishedprogressively from1964;
whereasthemainfeaturesofthemarketorganisation
thusestablishedare,forproducerMemberStates,the
annualfixingoftargetprices,publishedbeforethe
wintersowingsoastoallowproducerstomaketheir
cropplans,andthefixing,onthebasisofthetarget
price,ofaninterventionpriceatwhichthe
competentagenciesareobligedtobuyinthepaddy
ricewhichisofferedtothem,andofathresholdprice
towhichthepriceofimportedproductsmustbe
equatedbymeansofavariablelevy;whereasfor
non-producerMemberStatesitsmainfeatureisthe
annualfixingofacommonthresholdpricetobe
determinedforthefirstyearonthebasisoftheprice
recordedontheworldmarketandtowhichtheprice
oftheimportedproductsmustbeequatedbymeans
ofavariablelevy;
Whereasaprogressiveapproximation oftargetprices
andaprogressiveapproximation ofthresholdprices
wereprovidedforinArticle20(1)ofRegulationNo
16/64/EECsothatasingletargetpriceandasingle
thresholdpricemightbeattainedbytheendofthetransitionalperiod;whereastheconnectionbetween
themarketsincerealsandriceincertainaspectsof
productionandutilisationmakesitopportunethat,
theintroductionofasinglepricesystemforcereals
withintheCommunityfromthe1967/68marketing
■yearshouldbefollowedbytheestablishment ofa
singlepricesystemforriceforthesamemarketing
year;
Whereas,owingtothepricemechanismsbrought
intobeingbyRegulationNo16/64/EEC,thecreation
ofasinglemarketinriceforthewholeCommunity
doesnotdependsolelyontheremovalofall
obstaclestothefreemovementofgoodswithinthe
Communityandontheestablishment ofidentical
protectionatitsexternalfrontiers,butalsoonthe
adoptionofasystemcomprising :atargetpricefor
huskedricevalidforthewholeCommunity ;asingle
thresholdpriceforhuskedrice,asinglethreshold
priceformilledriceandasinglethresholdpricefor
brokenrice,suchpricestobefixedinsuchaway
that,onthemarketofthemarketingcentreofthe
areawiththegreatestdeficitintheCommunity ,the
sellingpriceoftheimportedproductisequaltothe
targetprice;relatedleviesinrespectofthirdcountries,
whicharethesameforthewholeCommunity ;and
interventionpricesfixedonthebasisoftargetprices;
whereas,therefore,thenecessaryadjustmentsshould
bemadetothesystemprovidedinRegulationNo
16/64/EEC;
Whereastheaimofthecommonagriculturalpolicyis
toattaintheobjectivessetoutinArticle39ofthe
Treaty;whereasinthericesector,inorderto
stabilisemarketsandtoensureafairstandardof
livingfortheagriculturalcommunityconcerned,
interventionagenciesshouldcontinuetotakeby
interventionmeasuresonthemarket,suchmeasures
howevertobestandardisedsoasnottoimpedethe
freemovementofricewithintheCommunity ;
WhereasfreemovementwithintheCommunity
shouldenablesurplusesinproductionareastobe
offsetagainstrequirementsindeficitareas;whereas,
soasnottoimpedesuchoffsetting,intervention
pricesshouldbefixedinsuchawaythatthe1OJNo156,15.7.1967,p.32.
2OJNo34,27.2.1964,p.574/64.

194 OfficialJournaloftheEuropeanCommunities
differencesbetweenthemreflectthedisparitieswhich,
givenanormalharvest,ariseundernatural
conditionsofpriceformationonthemarket,andthat
theforcesofsupplyanddemandmayhavefreeplay;
Whereasthesmoothadjustmentofthemarkettothe
regionalisation ofpricesrequiresintervention
agenciestobeable,inspecialcircumstances ,totake
interventionmeasuressuitedtothosecircumstances ;
whereas,however,sothattherequireduniformityof
interventionsystemsmaybemaintained,thosespecial
circumstances shouldbeassessedandtheappropriate
measuresdeterminedatCommunitylevel;
Whereasthetargetprice,interventionpricesand
thresholdpricesshould,inthecourseofthe
marketingyear,besubjecttoacertainnumberof«
monthlyincreasesinordertotakeaccount,among
otherthings,ofstoragecostsandinterestchargesfor
storingriceintheCommunityandoftheneedto
ensurethatthedisposalofstocksconformstomarket
requirements ;
Whereas,becauseofthespecialsituationofthe
marketinstarchesand,inparticular,theneedfor
thatindustrytokeeppricescompetitivewiththose
forsubstituteproducts,itisnecessarytoensureby
meansofaproductionrefund,thatthebrokenrice
usedbytheindustryismadeavailabletoitata
lowerpricethantheonewhichwouldresultfrom
applyingthesystemofleviesandcommonprices;
whereasbecauseofthespecialsituationofthemarket
inquellmehlitisnecessarytoprovideforsimilar
measuresforbrokenriceusedinmanufacturing that
product;
WhereasthecreationofasingleCommunitymarket
forriceinvolves,apartfromasinglepricesystem,the
introductionofasingletradingsystemattheexternal
frontiersoftheCommunity ;whereasatrading
systemincludingleviesandexportrefunds,combined
withinterventionmeasures,alsoservestostabilise
theCommunitymarket,inparticularbypreventing
pricefluctuationsontheworldmarketfromaffecting
pricesrulingwithintheCommunity ;whereas,
therefore,provisionshouldbemadeforcharginga
levyonimportsfromthirdcountriesandforthe
paymentofarefundonexportstothesecountries,
bothbeingdesignedtocoverthedifferencebetween
pricesrulingoutsideandwithintheCommunity ;
Whereasthecalculation .ofthatlevyandofthat
refundcanbemadeonthebasisofthe-respective
pricesofthemostrepresentativeproductsintherice
sector,namelyhuskedrice,milledriceandbroken
rice;whereasthecalculationofthelevyandthe
refundapplicabletoriceofferedatotherstagesof
processingcanbemadeonthebasisofthelevyand
therefundapplicabletowhicheverofthosethree
productsisnearesttothestageofthericeinquestion;whereas,moreover,asregardssemi-milled
andmilledriceandtheproductsprocessedfromrice
whicharecoveredbythisRegulation,accountshould
betaken,whencalculatingthelevy,oftheneedto
ensureameasureofprotectionfortheCommunity
processingindustry;
Whereas,inadditiontothesystemdescribedabove,
andtotheextentnecessaryforitsproperworking,
provisionshouldbemadeforregulatingor,whenthe
situationonthemarketsorequires,prohibitingthe
useof'inwardprocessingarrangements';whereas,
moreover,therefundshouldbefixedinsuchaway
thatoperationsunderinwardprocessing
arrangementsdonotleadtheCommunityprocessing
industrytouse,withaviewtoexport,basicproducts
importedfromthirdcountriesinpreferenceto
Communitybasicproducts;whereasthecreationofa
singlemarketinricenecessitatesCommunitycontrol
oftheinwardprocessingtrade;
Whereasthecompetentauthoritiesmustbeina
positionconstantlytofollowtrademovementsin
ordertoassessmarkettrendsandtoapplythe
measureslaiddowninthisRegulationasnecessary;
whereas,tothatend,provisionshouldbemadefor
theissueofimportandexportlicencesaccompanied
bythelodgingofadepositguaranteeingthatthe
transactionsforwhichsuchlicencesarerequestedare
effected;
Whereasthelevysystemmakesitpossibletodispense
withallotherprotectivemeasuresattheexternal
frontiersoftheCommunity ;whereas,however,'the
commonpriceandlevymachinerymayin
exceptionalcircumstances provedefective;whereas,
insuchcases,soasnottoleavetheCommunity
marketwithoutdefenceagainstdisturbanceswhich
mayarisetherefromaftertheimportbarrierswhich
existedpreviouslyhavebeen'removed,the
Communityshouldbeenabledtotakeallnecessary
measureswithoutdelay;
Whereastheestablishment ofasinglemarketinrice
involvestheremovalattheinternalfrontiersofthe
Communityofallobstaclestothefreemovementof
thegoodsinquestion;
Whereastheestablishment ofasinglemarketbased
onacommonpricesystemwouldbejeopardisedby
thegrantingofcertainaids;whereas,therefore,the
provisionsoftheTreatywhichallowtheassessment
ofaidsgrantedbyMemberStatesandtheprohibition
ofthosewhichareincompatiblewiththecommon
marketshouldbemadetoapplytorice;
Whereasthetransitionfromthesystemprovidedin
RegulationNo16/64/EECtothatestablishedbythis
Regulationshouldbeeffectedassmoothlyas
possible;whereas,tothatend,certaintransitional
measuresmayprovenecessary;

OfficialJournaloftheEuropeanCommunities 195
4.ThepricementionedinthisArticleand-the
standardqualityforwhichitisfixedshallbe
determinedinaccordancewiththeprocedurelaid
downinArticle43(2)oftheTreaty.Whereasthecommonorganisationofthemarketin
ricemusttakeappropriateaccount,atthesametime,
oftheobjectivessetoutinArticles39and110ofthe
Treaty;
"Whereas,inordertofacilitateimplementation ofthe
proposedmeasures,aprocedureshouldbeprovided
forestablishingcloseco-operationbetweenMember
StatesandtheCommissionwithintheManagement
CommitteeforCereals;Article3
Themarketingyearforalltheproductslistedin
Article1shallbeginon1Septemberandendon31
Augustofthefollowingyear.
HASADOPTEDTHISREGULATION :
Article1Article4
1.Thecommonorganisationofthemarketinrice
shallcompriseapriceandtradingsystemandcover
thefollowingproducts:
CCT
heading
NoDescriptionofgoods
(a)ex10.06A
ex10.06A
10.06BRiceinthehusk(paddyorrough
rice)
Huskedrice(cargoorbrownrice)
Milledrice,whetherornotpol­
ishedorglazed
(b)10.06CBrokenrice
(c)11.01D
ex11.02AIII(b)
11.08AIIIRiceflour
Ricegroatsandmeal,rolledor
flakedrice
Ricestarch1.Inordertoguaranteetoproducersthatthe
marketpricedoesnotfallbelowaminimumlevel,
interventionpricesforpaddyriceshallbefixedfor
theCommunity .
2.Thesepricesshallbefixedforround-grained
paddyriceofastandardqualitydeterminedonthe
basisofthevarietychosenfordeterminingthe
standardqualityforwhichthetargetpriceforhusked
riceisfixed,atthesamestageandunderthesame
conditions .
3.InterventionpricesforAriesandVercellishall
bedeterminedasfollows:
—bycalculatingthederivedtargetpriceforhusked
riceforAriesandVercelli,respectively ;
—byconvertingthatpriceintoapriceforpaddy
riceonthebasisoftheconversionrates,
manufacturing costsandthevalueof
by-products ;
—byreducingtheresultthusobtainedby4%.
Thepricederivationmentionedinthefirstindent
aboveshallbecalculatedinsuchawaythatthe
differencesbetweentheintervention pricesasalso
betweenthemandthetargetpricecorrespondtothe
pricedisparitiestobeexpectedinanormalharvest
undernaturalconditionsofpriceformationonthe
marketandallowthefreemovementofricewithin
theCommunityinaccordancewiththerequirements
ofthemarket.
Forotherlargemarketingcentresinareasofsurplus
productionwithintheCommunity ,thefollowing
pricesshallapply:
—theinterventionpriceforAriestocentresin
France;
—theinterventionpriceforVercellitocentresin
Italy.
4.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe2.ForpurposesofthisRegulation,paddyrice,
huskedrice,semi-milled rice,milledrice,
round-grained riceandbrokenricearetheproducts
definedinAnnexA.
TITLEI
Prices
Article2
1.Before1Augustofeachyear,atargetpricefor
huskedriceshallbefixedfortheCommunityforthe
marketingyearbeginningduringthefollowing
calendaryear.
2.Thispriceshallbefixedforround-grained rice
ofastandardquality.
3.ThispriceshallbefixedforDuisburgatthe
wholesalestage,goodsinbulk,deliveredto
warehouse,notunloaded.

196 OfficialJournaloftheEuropeanCommunities
5.DetailedrulesfortheapplicationofthisArticle
shallbeadoptedinaccordancewiththeprocedure
laiddowninArticle26,inparticularasregards:
—theminimumqualityandquantityrequiredfor
intervention ;
—thecorrectiveamountsapplicabletointervention ;
—thepriceincreasesandreductionsapplicableto
intervention ;
—theproceduresandconditionsfortakingoverby
theinterventionagencies;
—theproceduresandconditionsfordisposalby
interventionagencies.TreatyonaproposalfromtheCommission ,shallfix
theinterventionpricesforAriesandVercellieach
year,before1May,forthefollowingricemarketing
year.
5.Rulesforthedetermination oflargemarketing
centresforareasofsurplusproductionotherthan
AriesandVercelli,andthestandardqualitytowhich
theinterventionpricesrelate,shallbeadoptedin
accordancewiththeprocedurereferredtoin
paragraph4.
6.Themarketingcentresmentionedinthethird
subparagraph ofparagraph3shall,afterconsultation
withtheMemberStatesconcerned,bedetermined
before1Julyofeachyearforthefollowing
marketingyear,inaccordancewiththeprocedure
laiddowninArticle26.Article6
Article5TheCouncil,actinginaccordancewiththevoting
procedurelaiddowninArticle43(2)oftheTreaty
onaproposalfromtheCommission ,shalldetermine
theconditionsunderwhichinterventionagenciesmay
takespecialinterventionmeasurestoprevent,in
certainareasoftheCommunity ,substantialbuyingin
ofpaddyriceinpursuanceofArticle5(1).
Thenatureandscopeofsuchinterventionmeasures
shallbedeterminedinaccordancewiththeprocedure
laiddowninArticle26.
Beforetheexpiryofthefirstyearofapplicationof
thisRegulationtheCommissionshallsubmittothe
Councilareportontheresultsobtainedfrom
applicationofthemeasureslaiddowninthisArticle
andontheadvisabilityofamendingorrepealing
them.1.Throughoutthemarketingyeartheintervention
agenciesdesignatedbyMemberStatesshallbe
obligedtobuyinpaddyriceharvestedinthe
Communitywhichisofferedtothem,providedthe
offerscomplywithconditions,inparticularinrespect
ofqualityandquantity,tobedeterminedin
accordancewithparagraph5.
2.Theinterventionagenciesshallbuyinatthe
interventionpricerulingforthemarketingcentreat
whichthepaddyriceisoffered,underconditionsto
bedeterminedinaccordancewithparagraphs4and5.
Ifthequalityofthepaddyriceofferedisdifferent
fromthestandardqualityforwhichtheintervention
pricehasbeenfixed,theinterventionpriceshallbe
adjustedbyapplying:
—correctiveamountsrepresentingthedifferencesin
valuebetweenthevarietywhichcorrespondsto
thestandardqualityandtheothervarieties;and
—priceincreasesorreductionsrepresenting
variationsinqualitynotattributabletothevariety
classificationoftheproduct.
3.Underconditionstobelaiddowninaccordance
withparagraphs4and5,interventionagenciesshall
offerforsale,forexporttothirdcountriesorfor
supplytotheinternalmarket,paddyriceboughtin
pursuanttoparagraph1.Article7
1.Thetargetpriceandtheinterventionprices
shallbesubjecttomonthlyincreases,phasedoverthe
wholeorpartofthemarketingyear.
2.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe
Treatyon,aproposalfromtheCommission ,shall
before1Mayeachyeardetermineforthefollowing
marketingyearthenumberandtheamountofthe
monthlyincreasesandtheirphasingoverthe
marketingyear.
Article8
4.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe
TreatyonaproposalfromtheCommission ,shall
adoptgeneralrulesgoverningintervention .1.Acarry-overpaymentmaybegrantedinrespect
ofstocksremainingattheendofthemarketingyear
ofpaddyriceharvestedintheCommunityandof
huskedriceobtainedfromthatrice.

OfficialJournaloftheEuropeanCommunities 197
FromadatetobefixedbytheCouncil,actingin
accordancewiththevotingprocedurelaiddownin
Article43(2)oftheTreatyonaproposalfromthe
Commission ,andfrom1September1969atthe
latest,suchlicencesshallbevalidfortransactions
effectedintheCommunity .Untilthatdatesuch
licencesshallbevalidonlyfortransactionseffectedin
theMemberStatewhichissuedthem.
Theissueofsuchlicencesshallbeconditionalonthe
lodgingofadepositguaranteeingthatimportationor
exportationiseffectedduringtheperiodofvalidity
ofthelicence;thedepositshallbeforfeitedinwhole
orinpartifthetransactionisnoteffected,orisonly
partiallyeffected,withinthatperiod.
2.Theperiodofvalidityoflicencesandother
detailedrulesfortheapplicationofthisArticleshall
beadoptedinaccordancewiththeprocedurelaid
downinArticle26.Before1Julyofeachyear,theCouncil,actingin
accordancewiththevotingprocedurelaiddownin
Article43(2)oftheTreatyonaproposalfromthe
Commission ,shalldecidewhetheracarry-over
paymentshouldbegrantedinrespectofthe
above-mentioned productsand,ifso,towhatextent.
2.Thecarry-overpaymentshallnotexceed:
(a)forhuskedrice,thedifferencebetweenthetarget
pricevalidforthelastmonthofthemarketing
yearandthatvalidforthefirstmonthofthenext
marketingyear;
(b)forpaddyrice,thatdifferenceadjustedbythe
conversionrate.
3.Thecarry-overpaymentshallbegrantedonlyif
stocksreachaminimumquantity.
4.Theamountofthecarry-overpaymentshallbe
fixedinaccordancewiththeprocedurereferredtoin
paragraph1.
5.DetailedrulesfortheapplicationofthisArticle,
inparticulartheminimumquantityqualifyingfora
carry-overpaymentandthecategoriesofthose
entitledtoitshallbeadoptedinaccordancewiththe
procedurelaiddowninArticle26.Article11
Article91.Alevyequalforeachproducttothethreshold
pricelessthec.i.f.priceshallbechargedonimports
ofhuskedrice,milledriceorbrokenrice.
2.Alevyequaltothelevyapplicabletohusked
rice,adjustedbytheconversionrate,shallbecharged
onimportsofpaddyrice.
3.Alevyequaltothelevyapplicableto
round-grained milledrice,adjustedbytheconversion
rate,shallbechargedonimportsoflong-grained
milledrice.Thisadjustmentshallbemadeby
dividingthis-levybytherateapplicablewhen
long-grained huskedriceisconvertedinto
long-grainedmilledriceandbymultiplyingitbythe
rateapplicablewhenround-grained huskedriceis
convertedintoround-grained milledrice.
4.Alevyequaltothelevyapplicabletomilled
rice,adjustedbytheconversionrate,shallbecharged
onimportsofsemi-milledrice.
5.TheCommission shallfixtheleviesmentioned
inthisArticle.1.Aproductionrefundshallbegrantedfor
brokenricewhichhasbeenused:
(a)bythestarchindustryforthemanufactureof
starchandquellmehlasdefinedinAnnexA;
(b)bythebrewingindustry.
2.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe
TreatyonaproposalfromtheCommission ,shall
adoptrulesfortheapplicationofthisArticleandfix
theamountoftheproductionrefund.
TITLEII
Tradewiththirdcountries
Article10Article12
1.Alevyshallbechargedontheimportationof
productslistedinArticle1(1)(c),consistingoftwo
components :
(a)avariablecomponent,whichmaybefixedand
revisedonaflatratebasisandwhich
correspondstotheincidenceontheprimecostof
suchproductsofthelevyonthebasicproduct
usedintheirmanufacture :1.ImportsintotheCommunityorexports
therefromofanyoftheproductslistedinArticle1
shallbesubjecttothesubmissionofanimportor
exportlicencewhichmaybeissuedbyMember
Statestoanyapplicantirrespectiveoftheplaceofhis
establishment intheCommunity .

198 OfficialJournaloftheEuropeanCommunities
(b)afixedcomponentdesignedtoprotectthe
processingindustry.
2.Whereactualoffersfromthirdcountriesof
productslistedinArticle1(1)(c)donotcorrespond
tothepricewhichresultsfromthepriceofthebasic
productusedintheirmanufacture ,plusprocessing
costs,anamountfixedinaccordancewiththe
procedurelaiddowninArticle26maybeaddedto
thelevyfixedinaccordancewithparagraph1.
3.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe
TreatyonaproposalfromtheCommission ,shall
adoptrulesfortheapplicationofthisArticle.
4.TheCommissionshallfixtheleviesspecifiedin
paragraph1.2.Thethresholdpriceforhuskedriceshallbe
fixedinsuchawaythatontheDuisburgmarketthe
sellingpricefortheimportedproductcorrespondsto
thetargetprice,afterallowancefordifferencesin
quality.Thethresholdpriceshallbesubjecttothe
monthlyincreasesdeterminedforthetargetpricein
accordancewiththeprovisionsofArticle7.
ItshallbecalculatedforRotterdamforthesame
standardqualityasthetargetpriceforhuskedrice.
3.Thethresholdpriceformilledriceshallbe
derivedfromthethresholdpriceforhuskedriceby
makingadjustmentsfortheconversionrate,for
processingcostsandforthevalueofby-productsand
thenbyaddinganamountfortheprotectionofthe
industry.
ItshallbecalculatedforRotterdamforthesame
standardqualityasthethresholdpriceforhusked
rice.
4.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe
TreatyonaproposalfromtheCommission ,shallfix
thethresholdpriceforhuskedriceandtheprotective
amountmentionedinparagraph3.
5.Thethresholdpriceformilledriceshallbefixed
inaccordancewiththeprocedurelaiddownin
Article26.Article13
ArticleIS1.Thelevytobechargedshallbethatapplicable
onthedayofimportation .
2.However,asregardsimportsofriceandbroken
rice,thelevyapplicableonthedayonwhich
applicationforalicenceismade,adjustedforthe
thresholdpricewhichwillbeinforceduringthe
expectedmonthofimportation ,shallbeappliedtoan
importtobeeffectedduringtheperiodofvalidityof
thelicence,iftheapplicantsorequestswhenapplying
forthelicence.Apremium,fixedatthesametimeas
thelevy,shallbeaddedtothelevy,where
appropriate .
3.Adecisionmaybetakeninaccordancewiththe
procedurelaiddowninArticle26toapplythe
provisionsofparagraph2,inwholeorinpart,toany
oftheproductslistedinArticle1(1)(c).
4.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe
TreatyonaproposalfromtheCommission ,shall
adoptrulesfortheapplicationofparagraph2,
includingrulesforfixingpremiums,andmeasuresto
betakeninexceptionalcircumstances orwhere
importationisnoteffectedwithinthemonthlaid
down.
5.Thescaleofpremiumsshallbeadoptedbythe
Commission .1.Athresholdpriceforbrokenriceshallbefixed
fortheCommunityeachyear,before1May,forthe
followingmarketingyear.
2.Thispriceshallbefixedwithin:
(a)anupperlimitconstitutedbythethresholdprice
forhuskedricevalidforthesamemarketing
year:
—plushalftheamountofthemonthlyincreases
ofthatthresholdprice;and
—minusthepercentagebywhichtheaverage
c.i.f.priceforbrokenricedeterminedfor
Rotterdamfrom1September1964to31
August1966waslowerthantheaverageof
themostfavourableoffersforhuskedrice
determinedforRotterdamforthesame
period;
(b)alowerlimitconstitutedbythethresholdprice
formaizevalidforthesamemarketingyear:
—plushalftheamountofthemonthlyincreases
ofthatthresholdprice;andArticle14
1.ThereshallbefixedfortheCommunityeach
year,before1May,forthefollowingmarketingyear:
—athresholdpriceforhuskedrice;
—athresholdpriceformilledrice.

OfficialJournaloftheEuropeanCommunities 199
—plusthepercentagebywhichtheaveragec.i.f.
priceforbrokenricedeterminedfor
Rotterdamfrom1September1964to31
August1966washigherthantheaveragec.i.f.
priceformaizedeterminedforRotterdamfor
thesameperiodandadjustedforbagged
maize.
3.Ifquotationsontheworldmarketforhusked
rice,maizeandbrokenriceshow,overaperiodofat
leastsixmonths,considerablevariationsfromthe
averagequotationsrecordedduringtheperiod
mentionedinparagraph2,adifferentreference
periodshallbefixedfordeterminingthethreshold
priceforthefollowingmarketingyear.
4.Thethresholdpriceforbrokenriceshallbe
calculatedforRotterdamandforastandardquality.
5.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe
TreatyonaproposalfromtheCommission ,shallfix:
(a)thethresholdpriceforbrokenriceandthe
standardqualityforwhichitshallbefixed;
(b)ifneedbe,thereferenceperiodmentionedin
paragraph3.qualityforwhichthethresholdpriceforhusked
ricewasfixed,thosedifferencesthemselvestobe
adjustedinlinewiththerateapplicableon
conversionofround-grained huskedriceto
round-grained milledrice;
(b)long-grainedmilledrice,adjusted,inorderto
obtainthepriceofround-grained milledrice,for:
—theconversionrate,theprocessingcostsand
thevalueofby-productsapplicableon
conversionoflong-grainedmilledriceinto
long-grainedhuskedrice;
—differencesinqualitycomparedwiththe
standard "qualityforwhichthethresholdprice
forhuskedricewasfixed;
—theconversionrate,theprocessingcostsand
thevalueofby-productsapplicableon
conversionofround-grained huskedriceinto
round-grained milledrice;
(c)ifneedbe,semi-milledrice,adjustedforthe
conversionrate,forprocessingcosts,forthe
valueofby-productsandforanydifferencesin
qualitycomparedwiththestandardqualityfor
whichthethresholdpriceofhuskedricewas
fixed,thosedifferencesthemselvestobeadjusted
inlinewiththerateapplicableonconversionof
huskedriceintomilledrice.
4.Differencesinqualityshallbeexpressedby
meansofcorrectiveamountsrepresentingthe
differenceinvaluebetweenthevarietywhich
correspondstothestandardqualityforwhichthe
thresholdpricewasfixedandtheothervarieties.
5.Wherefreequotationsontheworldmarketare
notadeterminingfactorfortheofferpriceandwhere
thatpriceislowerthanthosequotations,aspecial
c.i.f.pricecalculatedonthebasisoftheofferprice
shallbesubstituted,solelyinrespectoftheimports
inquestionforthec.i.f.price.
6.DetailedrulesfortheapplicationofthisArticle,
inparticularthecorrectiveamounts,themethodof
calculatingc.i.f.pricesandthemarginwithinwhich
variationsinthefactorsusedforcalculatingthelevy
donotentailanyalterationofthelevy,shallbe
adoptedinaccordancewiththeprocedurelaiddown
inArticle26.Article16
1.Thereshallbe.calculatedforRotterdam :
—ac.i.f.priceforhuskedrice;
—ac.i.f.priceformilledrice;
—ac.i.f.priceforbrokenrice.
Thesec.i.f.pricesshallbecalculatedforgoodsin
bulkonthebasisofthemostfavourablepurchasing
opportunities ontheworldmarketdeterminedin
accordancewithparagraphs2and3.
2.Thec.i.f.priceforhuskedriceshallbe
calculatedonthebasisofthequotationsorpriceson
theworldmarketfor:
(a)huskedrice,adjustedforanydifferencesin
qualitycomparedwiththestandardquality;
(b)ifneedbe,paddyrice,adjustedforthe
conversionrate,forprocessingcosts,forthe
valueofby-productsandforanydifferencesin
qualitycomparedwiththestandardquality.
3.Thec.i.f.pricesformilledriceshallbe
calculatedonthebasisofrecordedquotationsor
pricesontheworldmarketfor:
(a)round-grained milledrice,adjustedforany
differencesinqualitycomparedwiththestandardArticle17
1.Totheextentnecessarytoenabletheproducts
listedinArticle1tobeexportedinthestatereferred
tothereinorintheformofgoodslistedinAnnexB
onthebasisofquotationsorpricesforthose

200 OfficialJournaloftheEuropeanCommunities
onaproposalfromtheCommission,mayprohibitin
wholeorinparttheuseofinwardprocessing
arrangements :
—inrespectofproductslistedinArticle1whichare
intendedforthemanufactureofproductslistedin
Article1(1)(c);
—and,inspecialcases,inrespectofproductslisted
inArticle1whichareintendedforthe
manufactureofgoodslistedinAnnexB.
2.Communityprovisionstoregulatetheinward
processingtradeintheproductslistedinArticle1
shallbeadoptednotlaterthan1July1968.
3.Rulestobeapplieduntiltheprovisions
mentionedinparagraph2enterintojforceshallbe
adoptedinaccordancewiththeprocedurereferredto
inparagraph1;theyshallapplyinrespectof:
(a)therateofyieldtobetakenwhendetermining
thequantityofArticle1productsusedinthe
manufactureofprocessedgoodsforexport;
(b)thedetermination ,forthepurposeofapplying
thelevy,ofthequantityofproductsusedinthe
manufactureofprocessedgoodsputintofree
circulation .
4.ForthepurposesofthisArticle'inward
processingarrangements'meansallthoseprovisions
determiningtheconditionsunderwhichproducts
fromthirdcountriesareusedintheCommunityin
themanufactureofgoodsforexportandenjoy
exemptionfromtheleviesapplicabletothem.productsontheworldmarket,thedifferencebetween
thosequotationsorpricesandpricesinthe
Communitymaybecoveredbyanexportrefund.
2.Therefundshallbethesameforthewhole
Community .Itmaybevariedaccordingtouseor
destination .
Therefundshallbegrantedonapplication .
Whentherefundisbeingfixedparticularaccount
shallbetakenoftheneedtoestablishabalance
betweentheuseofCommunitybasicproductsinthe
manufactureofprocessedgoodsforexporttothird
countriesandtheuseofthirdcountryproducts
broughtinunderinwardprocessingarrangements .
Refundsshallbefixedatregularintervalsin
accordancewiththeprocedurelaiddowninArticle
26.WherenecessarytheCommissionmay,atthe
requestofaMemberStateoronitsowninitiative,
altertherefundsintheinterveningperiod.
3.Theamountoftherefundapplicabletothe
exportofproductslistedinArticle1andofgoods
listedinAnnexBshallbethatapplicableontheday
ofexportation .
4.However,asregardsexportsofproductslisted
inArticle1(1)(a)and(b),therefundapplicableon
thedayonwhichapplicationforalicenceismade,
adjustedforthethresholdpricewhichwillbeinforce
duringthemonthofexportation,shallbeappliedto
anexporttobeeffectedduringtheperiodofvalidity
ofthelicence,iftheapplicantsorequestswhen
applyingforthelicence.Inthiscaseacorrective
amountfixedbytheCommissionshallbeappliedto
therefund.
Theprovisionsoftheprecedingsubparagraph may
beappliedinwholeorinparttoanyoftheproducts
listedinArticle1(1)(c)andinAnnexB.
5.TheCouncil,actinginaccordancewiththe
votingprocedurelaiddowninArticle43(2)ofthe
TreatyonaproposalfromtheCommission,shall
adoptgeneralrulesforgrantingexportrefundsand
criteriaforfixingtheamountofsuchrefunds.
6.DetailedrulesfortheapplicationofthisArticle
shallbeadoptedinaccordancewiththeprocedure
laiddowninArticle26.Article19
TheprocedurelaiddowninArticle26shallapplyfor
determining :
(a)theconversionratesbetween
—huskedriceandpaddyriceusedwhen
applyingArticle4(3),Article8(2)(b),Article
11(2)andArticle16(2)(b);
—huskedriceandmilledriceusedwhen
applyingArticle11(3),Article14(3)and
Article16(3)(a),(b)and(c);
—milledriceandsemi-milledrice,tobeused
inconsiderationwhenapplyingArticle11(4)Article18
'andArticle16(3)(c);
1.Totheextentnecessaryfortheproperworking
ofthecommonorganisationofthemarketinrice,the
Council,actinginaccordancewiththevoting
procedurelaiddowninArticle43(2)oftheTreaty(b)theprocessingcostsandthevalueofby-products
tobeusedwhenapplyingArticle4(3),Article14
(3)andArticle16(2)(b)and(3)(b)and(c).

OfficialJournaloftheEuropeanCommunities 201
Article20 TheCouncil,actinginaccordancewiththevoting
procedurelaiddowninArticle43(2)oftheTreaty
onaproposalfromtheCommission,shalladopt
rulesfortheapplicationofthisparagraphanddefine
thecasesinwhichandthelimitswithinwhich
MemberStatesmaytakeprotectivemeasures.
2.Ifthesituationmentionedinparagraph1arises,
theCommissionshall,attherequestofaMember
Stateoronitsowninitiative,decideuponthe
necessarymeasures;themeasuresshallbe
communicated totheMemberStatesandshallbe
immediatelyapplicable.IftheCommissionreceivesa
requestfromaMemberState,itshalltakeadecision
thereonwithintwenty-fourhoursfollowingreceiptof
therequest.
3.ThemeasuresdecideduponbytheCommission
maybereferredtotheCouncilbyanyMemberState
withinthreeworkingdaysfollowingthedayon
whichtheywerecommunicated .TheCouncilshall
meetwithoutdelay.Itmayamendorrepealthe
measuresinquestioninaccordancewiththevoting
procedurelaiddowninArticle43(2)oftheTreaty.1.Withoutprejudicetotheprovisionsof
RegulationNo156/66/EEC1thegeneralrulesforthe
interpretation oftheCommonCustomsTariffand
thespecialrulesforitsapplicationshallapplytothe
tariffclassification ofproductscoveredbythis
Regulation;thetariffnomenclature resultingfrom
applicationofthisRegulationshallbeincorporated
intheCommonCustomsTarifffromthedateon
whichthelatterisfullyapplied.
2.SaveasotherwiseprovidedinthisRegulationor
wherederogationtherefromisdecidedbythe
Council,actinginaccordancewiththevoting
procedurelaiddowninArticle43(2)oftheTreaty
onaproposalfromtheCommission,thefollowing
shallbeprohibited :
—thelevyingofanycustomsdutyorchargehaving
equivalenteffect;
—theapplicationofanyquantitativerestrictionor
measurehavingequivalenteffect.
Therestrictionofimportorexportlicencestoa
specifiedcategoryofthoseentitledtoreceivethem
shallbeoneofthemeasuresconsideredashaving
effectequivalenttoaquantitativerestriction.TITLEIII
Generalprovisions
Article23
Article21
1.Thefollowingshallbeprohibitedintheinternal
tradeoftheCommunity :
—thelevyingofanycustomsdutyorchargehaving
equivalenteffect;
—anyquantitativerestrictionormeasurehaving
equivalenteffect;Whenthec.i.f.priceofoneormoreoftheproducts
mentionedinArticle16(1)isappreciablyhigherthan
thethresholdprice,andthatsituationislikelyto
continue,therebydisturbingorthreateningtodisturb
theCommunitymarket,thenecessarymeasuresmay
betaken.
TheCouncil,actinginaccordancewiththevoting
procedurelaiddowninArticle43(2)oftheTreaty
onaproposalfromtheCommission,shalladopt
generalrulesfortheapplicationofthisArticle.—recoursetoArticle44oftheTreaty.
2.GoodslistedinArticle1whichare
manufactured orobtainedfromproductstowhich
Article9(2)andArticle10(1)oftheTreatydonot
applyshallnotbeadmittedtofreecirculationwithin
theCommunity .Article22
Article24 1.Ifbyreasonofimportsorexportsthe
Communitymarketinoneormoreoftheproducts
listedinArticle1experiencesoristhreatenedwith
seriousdisturbances whichmayendangerthe
objectivessetoutinArticle39oftheTreaty,
appropriatemeasuresmaybeappliedintradewith
thirdcountriesuntilsuchdisturbanceorthreatof
disturbancehasceased.SaveasotherwiseprovidedinthisRegulation,
Articles92to94oftheTreatyshallapplytothe
productionofandtradeintheproductslistedin
Article1.
Article25
MemberStatesandtheCommission shall
communicatetoeachothertheinformationnecessary1OJNo192,27.10.1966,p.3278/66.

202 OfficialJournaloftheEuropeanCommunities
fromtheCommission,shalldecideinthelightof
experiencewhethertoretainoramendtheprovisions
ofArticle26.forimplementing thisRegulation .Rulesforthe
communication anddistributionofsuchinformation
shallbeadoptedinaccordancewiththeprocedure
laiddowninArticle26.
Article29Article26
ThisRegulationshallbesoappliedthatappropriate
accountistaken,atthesametime,oftheobjectives
setoutinArticles39and110oftheTreaty.
Article30
TheadditionalamountprovidedforinArticle12(2)
andthepremiumprovidedforinArticle13(2)shall
beconsideredasleviesinrelationtothirdcountries
withinthemeaningofArticle11(4)ofCouncil
RegulationNo130/66/EEC2of26July1966onthe'
financingofthecommonagriculturalpolicy.
Article311.WheretheprocedurelaiddowninthisArticleis
tobefollowed,theChairmanshallreferthematterto
theManagementCommitteeforCerealssetupby
Article25ofCouncilRegulationNo120/67/EEC1of
13June1967onthecommonorganisationofthe
marketincereals(hereinaftercalledthe'Committee'),
eitheronhisowninitiativeorattherequestofthe
representative ofaMemberState.
TheprovisionsofArticle25oftheabove-mentioned
RegulationregardingthatCommitteeshallapplyin
full.
2.Therepresentative oftheCommissionshall
submitadraftofthemeasurestobetaken.The
CommitteeshalldeliveritsOpiniononsuch
measureswithinatime-limittobesetbythe
Chairmanaccordingtotheurgencyofthequestions
underconsideration .AnOpinionshallbeadoptedby
amajorityoftwelvevotes.
3.TheCommissionshalladoptmeasureswhich
shallapplyimmediately .However,ifthesemeasures
arenotinaccordancewiththeOpinionofthe
Committee,theyshallforthwithbecommunicated by
theCommission totheCouncil.Inthateventthe
Commissionmaydeferapplicationofthemeasures
whichithasadoptedfornotmorethanonemonth
fromthedateofsuchcommunication .
TheCouncil,actinginaccordancewiththevoting
procedurelaiddowninArticle43(2)oftheTreaty,
maytakeadifferentdecisionwithinonemonth.1.Shouldtransitionalmeasuresbenecessaryto
facilitatethetransitionfromthesystemprovidedin
RegulationNo16/64/EECtothatestablishedbythis
Regulation,inparticulariftheintroductionofthe
newsystemonthedateprovidedforwouldgiverise
tosubstantialdifficultiesinrespectof
certainproducts,suchmeasuresshallbeadoptedin
accordancewiththeprocedurelaiddowninArticle
26.Theyshallbeapplicableuntil31August1968at
thelatest.
2.Bywayofderogationfromtheprovisionsof
Article2,thepricesandstandardqualitiesmentioned
thereineffectiveforthe1967/68marketingyearshall
bedeterminedbytheCouncil,actinginaccordance
withthevotingprocedurelaiddowninArticle43(2)
oftheTreatyonaproposalfromtheCommission .
Article27
Article32
TheCommitteemayconsideranyotherquestion
referredtoitbyitsChairmaneitheronhisown
initiativeorattherequestoftherepresentative ofa
MemberState.
Article28ThisRegulationshallenterintoforceontheday
followingitspublicationintheOfficialJournalofthe
EuropeanCommunities .
ThesystemestablishedbythisRegulationshallapply
from1September1967,exceptforthemeasures
providedforinArticle31(1),whichmaybemadeto
applyfromthedateofentryintoforceofthis
Regulation .Attheendofthetransitionalperiod,theCouncil,
actinginaccordancewiththevotingprocedurelaid
downinArticle43(2)oftheTreatyonaproposal
1OJNo117,19.6.1967,p.2269/67. -OJNo165,21.9.1966,p.2965/66.

203 OfficialJournaloftheEuropeanCommunities
RegulationNo16/64/EECandtheprovisions
adoptedinimplementation thereof,exceptforthe
provisionsofRegulationNo3/63/EEC,1shallbe
repealedwitheffectfrom1September1967.FromthesamedateAnnexAofRegulationNo
120/67/EECshallbereadasfollowsinrespectof
tariffsub-headingNoex11.02exAIIIex(b):
'Other,exceptricegroatsandmealandrolledor
flakedrice'.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,25July1967.
FortheCouncil
ThePresident
H.HOECHERL
ANNEXA
Definitions
1.(a)Paddyrice:riceofwhichthegrainsarestillenclosedinthefloralhusk;
(b)Huskedrice:ricegrainsfromwhichthehuskshavebeenremoved,butwhicharestill
enclosedinthepericarp.Thistermembracesriceknowncommercially as'brownrice',
'cargorice','loonzainrice'and'risosbramato';
(c)Semi-milledrice:ricefromwhichonlypartofthepericarphasbeenremoved;
(d)Milledrice:ricefromwhichthewholeofthepericarphasbeenremoved,whetheror
notthegrainsstillretainlongitudinalwhitestriations.
2.(a)Round-grained rice:riceofwhich90%ormoreofthegrainshavealengthequaltoor
lessthan5-2millimetresandaratiooflengthtowidthoflessthan2;
(b)Long-grained rice:ricenotmeetingthespecificationsof(a).
Thegrainmeasurementsaretakenonmilledricebythefollowingmethod:
—takearepresentative samplefromthebatch;
—sievethesamplesoastoretainonlywholegrains;
—carryouttwomeasurementsconsistingof100grainseachandfindtheaverage;
—expresstheresultinmillimetres,roundedofftoonedecimalpoint.
3.Brokenrice:milledricegrainsfromwhichapiecelargerinvolumethanthepointhas
beenremoved.
4.Quellmehl:flourofwhichthestarchhasundergoneheatorothertreatmentthusincreasing
itsswellingcapacity.
1OJNo14,29.1.1963,p.153/63.

204 OfficialJournaloftheEuropeanCommunities
ANNEXB
CCT
heading
NoDescriptionofgoods
19.02 Preparationsofflour,meal,starchormaltextract,ofakindusedas
infantfoodorfordieteticorculinarypurposes,containinglessthan
50%byweightofcocoa
19.05 Preparedfoodsobtainedbytheswellingorroastingofcerealsor
cerealproducts(puffedrice,cornflakesandsimilarproducts)
19.06 Communionwafers,emptycachetsofakindsuitableforpharmaceutical
use,sealingwafers,ricepaperandsimilarproducts
ex21.07 Foodpreparationsnotelsewherespecifiedorincluded,containing
sugar,milkproducts,cerealsorcereal-basedproducts
35.05 Dextrinsanddextringlues;solubleorroastedstarches;starchglues
38.12AIPreparedglazingsandprepareddressingswithabasisofamylaceous
substances