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DOCUMENTS "COM"
COM(73)1604
Vol.1973/0278

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)1604final
Brussels,27September1973
.PROPOSALFORA
REGULATION (EEC)OFTHECOUNCIL
layingdowngeneralrulesto"beappliedin
theeventofthericemarketToeingdisturbed
(submittedtotheCouncilbytheCommission)
COM(73)1604final

VI/3.137 /73-E
EXPLAMTORY MEMORANDUM
Article 21ofCouncil Regulation No359/67/EECof25July 1967 provides
that theCouncil shall adopt general rules ofapplication inorder that
thenecessary measures may "betaken where thecifprice substantially
exceeds thethreshold price .
Since thebeginning of1973 supplies ofrice ontheworld market have
"been getting shorter and shorter .Theworld market price iscurrently
appreciably higher than thethreshold prices forallqualities ofrice .
Inthis situation ,andinorder toguarantee supplies ofrice inthe
Community ,theCommission adopted ,byRegulation (EEC)1405/73of
26May1973 1thesafeguard measures applicable totheexport ofrice
andbroken rice from theCommunity ,which prohibited theissue of
export licences .
Since thenewCommunity rice harvest ,which canbemarketed after
15October 1973i islikely tobeagood one ,itcanbeexpected that
there will beareasonable surplus ofrice available for export onthe
world market .
Theproposed measures provide inparticular forfixing export levies on
rice ,where thefact that world market prices arehigher than Community
prices make them necessary .
Theadoption ofthegeneral rules isnecessary inorder toensure acertain
consistency inthemanagement oftherice market which cannot beensured by
current rules .

VI/3.137/73-E
PROPOSAL FORA
_KEOULATIONfT5EC)0?THECOUNCIL
layingdowngeneralrulestobeappliedintheeventofthe
ricemarket "beingdisturbed
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity;
HavingregardtoCouncilRegulationNo359/6"J/EEC^of25July1967onthe
commonorganization ofthemarketinriceaslastamended "bytheActof
2Accession,andinparticularthesecondparagraphofArticle21thereof;
HavingregardtotheproposalfromtheCommission ;
WhereasArticle21ofRegulationNo359/67/EECprovidesthat,whenthe
cifpriceofoneormoreoftheproductsmentionedinArticlel6(l)of
thatRegulationisappreciablyhigherthanthethresholdprice,and
thatsituationislikelytocontinue,therebydisturbingorthreatening
todisturbtheCommunitymarket,thenecessarymeasuresmaybetaken;
Whereasthegeneralrulesforapplyingtheseprovisions,andinparticular
thecriteriaforestablishing thatthecifpriceisappreciablyhigherthan
thethresholdpriceandfordecidingwhetherthesituationislikelyto
continue,shouldbelaiddown;
Whereas,toavoiddisturbances ontheCommunitymarket,itisnecessaryto
ensureanadequatesupplyofrice;whereas,tothisend,leviescouldbe
chargedonexportsandtheissueofexportlicencescouldbesuspended
totallyorpartially ;
Whereasitisalsonecessarytoestablishcriteriaforcalculatingthe
exportlevyhavingregardtotheeconomicsituation;whereas,sothatan
appropriate exportpolicymaybepursuedduringthecurrencyofthatsituation
inaccordancewithmarketrequirements ,thefixingofexportleviesshouldbe
basedexclusively onthecriteriagoverningtheexportrules;
OJNo174,31JulyI967,p.1
20JNoL73,27March1972,p.14

-2-Vl/3.137/73-E
WhereasCommunityobligationstosupplyfoodaidaresuchthatexportsof
productsforthatpurposeshouldbeexcludedfromthisRegulation ;
HASADOPTEDTHISREGULATION :
Article1
1.Thecifpriceshallheregardedasappreciablyhigherthanthethreshold
pricewithinthemeaningofArticle21ofRegulationNo359/67/EECwhenit
exceedsit"byatleast2$.
2.Thisexcessshall "beregardedasbeinglikelytocontinuewherean
imbalancebetweensupplyanddemandisestablished andwherethisimbalance
islikelytopersisthavingregardtoforeseeable productionandmarketprice
trends. ■;
3.TheCommunitymarketshallberegardedasbeingdisturbedorthreatened
withdisturbance ,asaresultofthesituationreferredtoinparagraphs 1
and2,whereinternational tradepricesaresohighastoimpedeimportation
ofproductsmentionedinArticlel(l)(a)and(b)ofRegulationNo359/67/EEC
intotheCommunity,orprovokeexportationofsuchproductsfromtheCommunity
eitherofwhichsituationswouldjeopardizesupplieswithintheCommunity.
Article2
1.WheretheconditionsspecifiedinArticle21ofRegulation No359/67/EEC
aremet,inaccordancewiththecriterialaiddowninArticle1,thefollowing
measuresmaybetaken:
-applicationofanexportlevy,whichmaybefixedbyatenderingprocedure,
-fixingofatimelimitfortheissueofexportlicences,
-totalorpartialsuspensionoftheissueofexportlicences,
-totalorpartialrejectionofoutstandingapplications fortheissueof
exportlicences.

-3-VI/3.137/73-E
2.Themeasuresprovidedforinparagraph1maytoetakeninrespectof
oneormoreoftheproductslistedinArticle1ofRegulationNo359/67/EEC,
wherethisismadenecessarytoythemarketsituationandtherelationship
betweenthoseproducts.
3.Themeasuresreferredtoinparagraph1shallbeabrogatedatthelatest
assoonasitisfoundthat,foraperiodofthreeconsecutive weeks,the
conditionreferredtoinArticle1(l)isnolongerfulfilled.
Article3
1.Thefollowingshallbetakenintoaccountwhentheexportlevyisintroduced
forproductslistedinArticlel(l)(ajand(to)ofRegulationNo359/67/EEC:
(a)situationandtrends:
-forricepricesandavailablequantitiesontheCommunitymarket,
-forricepricesandforproductsprocessedfromriceontheworld
market;
(b)theobjectivesofthecommonorganizationofthemarketinrice,
namelytobalancethatmarketbothasregardssuppliesandasregards
trade;
(c)theneedtoavoiddisturbancesoftheCommunitymarket;
(d)theeconomicaspectoftheexports.
2.TheexportlevyonproductscoveredbyArticlel(1)(o)of
RegulationNo359/67/EECshallbefixedbyreferencetothecriteriaspecified
inparagraph1(a)(b)(c)and(d)above.Thefollowingshallalsobetaken
intoaccount:
(a)pricesforbrokenriceonthevariousCommunitymarkets;
(b)quantityofbrokenricenecessaryformanufacturing therelevantproduct
and,whereappropriate ,valueoftheby-products ;
(c)possibilities andtermsofsaleoftherelevantproductontheworld
market.
3.Wherethesituationontheworldmarketorthespecificrequirements of
certainmarketssorequire,theexportlevymaybedifferentiated .

-4-VI/3.137/73-E
4.Theexportlevyto"bechargedshallbethatinforceonthedayofexportation.r
>
However,theexportlevyinforceonthedayonwhichthelicenceisappliedformay,
onapplication fromtheinterestedpartybelodgedatthesametimeastheapplication
foralicence,andbefore1p.m.beappliedtoexportstobeeffectedduringthe
periodofvalidityofthatlicence.
5.NolevyshallbeappliedtoexportseffectedbywayoffoodaidunderArticle23a
ofRegulationNo359/67/EEC.
I
Article4
1.Detailedrulesfortheapplication ofthisRegulationshallbeadoptedinaccordance
withtheprocedurelaiddowninArticle26ofRegulationNo359/67/EEC.
2.Bythesameprocedureandforeachproduct:
-theDecisiontointroducethemeasuresprovidedforinArticle2andtorevokethe
measuresprovidedforinthesecond,thirdandfourthindentsofArticle2(1)
shallbetaken;
-theexportlevyshallbefixedfromtimetotime.
3.Shouldtheneedarise,theCommunitymayintroduce,abolishorvarytheexportlevy.
Article5
InanemergencytheCommission maytakethemeasuresreferredtointhethirdand
fourthindentsofArticle2(1).ItshallnotifyitsDecisiontotheMemberStates
andshallpublishitonthenoticeboardsatitsHeadquarters .
Themeasuresshall,byvirtueofsuchaDecision,beappliedtotherelevantproducts
fromthedatespecifiedtothisend;thisdayshallbesubsequenttothatof
notification .
ADecisionrelatingtomeasuresreferredtointhethirdindentofArticle2(l)
shallapplyfornotmorethansevendays.
Article6
ThisRegulationshallenterintoforceonthethirddayfollowingthatofitspublication
intheOfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,1973. 'P°rtheCouncil
ThePresident