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COM(93) 211 final 
Brussels, 17 May 1993 
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Amended proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 986/86 laying down general rules 
for granting aid for skinned milk and skinmed-milk powder for use as feed 
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EXPLANATORY MEMORANDUM 
The purpose of this proposal is to amend the proposal for a Council Regulation 
which is the subject of document COM(90) 104 final of 26 March 1990, that in turn 
supplemented the original proposal contained in document COM(89) 448 final of 
9 October 1989. 
This additional proposal aims to limit the amount of aid for skimmed milk or 
skimmed-milk powder originating in third countries to the amount levied upon 
their importation into the Community. The proposed provision ensures that the 
price of the products involved cannot fall excessively to the detriment of the 
EAGGF budget thereby causing, moreover, distortions of competition with Community 
production. 
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Amendment to the proposal for a 
COUNCIL REGULATION (EEC) No 
amending Regulation (EEC) No 986/86 laying down general rules 
for granting aid for skimmed milk and skimmed-milk powder for use as feed 
The proposal for a Council Regulation which is the subject of document 
COM(90) 104 final is hereby amended as follows: 
1. The recitals of the proposal for a Regulation are replaced by the following: 
"Whereas Article 1(d) of Council Regulation (EEC) No 986/68 , as last 
amended by Regulation (EEC) No 1115/89 , defines skimmed-milk powder in 
particular as the by-product of the processing of milk or cream into butter, 
even though naturally or artificially soured, in the form of powder; whereas 
the manufacturing technique requires that soured buttermilk be neutralized 
before being processed into powder; whereas that definition should be 
supplemented by explicitly authorizing the neutralization of soured 
buttermilk prior to its processing into powder; 
Whereas Article 2a(3) of the said Regulation fixes a scale for the amount of 
aid for skimmed-milk powder; whereas application of this provision to 
products imported from third countries qualifying for a reduced levy may 
result in excessive reductions in their price on the Community market, 
thereby causing distortions of competition with Community production; whereas 
the amount of aid in such cases should be limited to the amount levied upon 
importation; 
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Whereas the second subparagraph of Article 3(1) of that Regulation provides, 
by way of derogation, that the Member States which consign skimmed-milk 
powder to another Member State are to be authorized to pay the aid in the 
place of the Member State where the skimmed-milk powder is denatured or 
incorporated into compound feedingstuffs; whereas because of the trend in the 
market situation that derogation need no longer be maintained;". 
2. Article 1 of the proposal for a Regulation is replaced by the following: 
"Article 1 
Regulation (EEC) No 986/68 is hereby amended as follows: 
1. The following sentence is added to Article 1(d): 
"Naturally or artificially soured buttermilk may be neutralized with a 
view to its processing into powder." 
2. The following paragraph is added to Article 2a: 
"5. Paragraph 3 notwithstanding, the amount of aid for skimmed milk or 
skimmed-milk powder imported from third countries may in no case 
exceed the amount levied upon importation into the Community." 
3. The second subparagraph of Article 3(1) is deleted." 
FINANCIAL STATEMENT (PLAI/EN/1552) 
DATE: 19 April 1993 
1. BUDGET HEADING: 
31-2020 APPROPRIATIONS: ECU 538 million 
2. TITLE: Amendment to the proposal for a Council Regulation amending Regulation (EEC) No 986/68 laying 
down general rules for granting aid for skimmed milk and skimmed-milk powder as feed 
3. LEGAL BASIS: 
Article 10(2) of Regulation (EEC) No 804/68 
4. AIMS OF PROJECT: 
To limit the amount of aid for skimmed milk or skimmed-milk powder originating in third countries to 
the amount levied upon their importation into the Community 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
- OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE Period of 12 months 
1994 
(ECU million) 
- 1.6 Current Financial Year 
1993 
(ECU million) 
- 0.1 Following Financial Year 
1994 
(ECU million) 
- 1.1 
1995 
- 1.6 1996 
- 1.8 1997 1998 
5.2 METHOD OF CALCULATION: 
See Annex 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
YES/NO 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
YES/NO 
OBSERVATIONS: 
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Annex 
1. Elements of the calculation 
Reduced levy: 1993 : ECU 980.4/t - 40% = ECU 588.2/t 
1994 - 1996: ECU 980.4/t - 60% = ECU 392.2/t 
Reduced aid: 1993 : ECU 592.5/t - ECU 588.2/t = ECU 4.3/t 
1994 - 1996: ECU 592.5/t - ECU 392.2/t = ECU 200.3/t 
Quantities imported at reduced levy: 
1993: 5 950 t 
1994: 6 550 t 
1995: 7 000 t 
1996: 7 500 t 
2. Calculation (calendar year) 
1993: 5 950 t x - ECU 4.3/t x 1.205 (DT) = ECU 0.3 million (B) 
1994: 6 550 t x - ECU 200.3/t x 1.205 (DT) » ECU 1.6 million (B) 
1995: 7 000 t X - ECU 200.3/t X 1.205 (DT) » ECU 1.7 million (B) 
1996: 7 500 t X - ECU 200.3/t X 1.205 (DT) « ECU 1.8 million (B) 
Implication for the financial year 
1993: - ECU 0.1 million (B) 
1994: - ECU 1.1 million (B) 
1995: - ECU 1.6 million (B) 
1996: - ECU 1.8 million (B) 
~ f-~ 
ISSN 0254-1475 
COM(93) 211 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-93-238-EN-C 
ISBN 92-77-55791-5 
Office for Official Publications of the European Communities 
1^2985 Luxembourg