ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)341
Vol.1981/0108

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)341 final
Brussels,8July1981
ACTIONTAKENBYTHECOMMISSION FOLLOWING
THEREPORTBYTHESPECIAL COMMITTEE OFINQUIRY
ONTHEE.A.G.G.F. GUARANTEE SECTION(CEREALS)
(ReportfromtheCommission totheCouncil)
■%-a^r- %■%r
•1'-! <71-*ir~f~:i t"l-d\A^ Fh !r-i*^Fh)tt*,1/vk<Φη.
COM(81)341final

ActiontakenbytheCommissionfollowing
theReportbytheSpecialCommitteeofInquiry
ontheE.A.G.G.F. GuaranteeSection(cereals)
Atitsmeetingon22July1980,theCounciltooknoteoftheSpecialCommittee
ofInquiry'sreportonthecerealssectorundertheE.A.G.G.F.GuaranteeSection
(COM(79)686final).Thefollowingstatementwasrecordedintheminutesof
themeeting:
"TheCounciltakesnotewithinterestofthereportdrawnupbytheSpecial
CommitteeofInquiryconcerningtheGuaranteeSectionoftheE.A.G.G.F.,
cerealssector.
TheCouncil,referringtoitsresolutions of16December1975and27June1977,
requests •
-theCommissiontospeeduptheimplementation ofthemeasuresneededtocarry
outtherecommendations oftheSpecialCommitteeofInquiry,tosubmit
appropriateproposalstoit,ifnecessary,withthisendinviewandtoreport
backtoitbefore30June1981onthemeasuresactuallyundertaken;
-theMemberStatesandtheCommissiontointensifytheircollaboration with
theaimofimprovingthemeansofpreventing anddetectingirregularities ;
-theMemberStatestoimprovetheirnationalcontrolmethodsasmuchas
possible."

2.
ThisdocumentisthereportrequestedbytheCeuneiL.
TheactiontakenontheSCI'sreporthasbeenarrangedundertwoheadings
forgreaterclarity:measuresrelatingtothecerealssectorproperand
measuresofageneralnaturerelatingtotheE.A.G.G.F.GuaranteeSection.
I.Actiontakeninthecerealssector
1.TheCommissionhasproposedvariousmeasurestotheCouncildesignedto
rationalize spendinginthecerealssector-inparticular byre-establishing
1abetterbalancebetweensupplyanddemandinthesector.
Themeasuresare: •
-Introduction oftheprincipleofco-responsibility inthecereals
sector.TheCouncilacceptedtheprincipleofco-responsibi lity,for
commonwheatandfeedgrainsatitsmeetingof30Marchto1April1981.
-Animprovement in1980/81and1981/82inrelativepricelevelsunderthe
"silo"systembyraisingcommonintervention prices,andparticularly
thereferencepriceforminimumqualitycereals,bylessthanthetarget
price;theaimbeingtofacilitatethesaleoflocalproduction onthe
Communitymarket.
-Agradualconvergence ofthepriceofryewith-thelevelforotherfeed
grains(seeArticle3(1)ofRegulationn°2727/75asamendedby
Regulationn°1870/80).Fromthe1982/83marketingyearonwards,the
intervention priceforryewillbeatthesamelevelasthecommon
intervention price.
-Liftingofthe.minimumqualityforcommonwheatforbreadmaking ..
./.
1SeeCOM(79)710final,COM(80)10final(1980/81prices)andCOM(81)50
final(1981/82prices)

3.
-improvement ofthecompensatory allowancesystem.Fromthe1981/82
marketingyearonwards,themaximumallowanceistobethedifference
betweentheintervention priceinthefirstmonthofthemarketing
yearpluselevenmonthlyincrements andtheintervention priceforthe.
nextmarketingyear.'Theaimofthiswayofincreasingtheallowance
♦-
istoavoidarushofsellingintointervention atapointwhenmost
ofthecerealstocksattheendofamarketingyearcanbesolddirectly
onthemarket.
2.On22April1980(Regulationn°998/80)and3October1980(Regulation
n°2556/80)theCommissioninstitutedspecialintervention measuresfor
commonwheatintheformofprivatestoragecontracts.Thesecontracts
wereoflimiteddurationand,inthecaseofRegulationn°998/80,aright
ofpre-emption wasprovidedfor.••
X '
3.TheCommissionhasundertakentosubmitareportondurumwheattothe
Councilandthisreportisintheprocessofbeingdrafted.
4.Commissionstaffareintheprocessofdrawing^upanewsystemforthe
starchsector..Untilanofficialproposalismade,andthiscanbemade
onlyafterwideconsultation withallthepartiesconcerned,andafter
theCouncilhastakenadecision,norestructuring ofpresentarrangements
willbeundertaken. -

4.
5.Thecalculation ofmonetarycompensatory amountshasagainbeen
changed.Production refundshavebeentekdnintoaccountinworking
outMCAsforstarches,reducing MCAsby11%.Anumberofcoefficients
havealsobeencut,asshowninthetablebelow." *
Product formercoefficient newcoefficient
11.01E.11 0.92 0.45
11.02AIa 1.39. 1.33
11.02GII 0.68 0.30
11.08AIII' 2.07 χ >1.69
11.08AIV 1.61 ' 1.51
11.09 3.60 . 2.30
6.Thecalculation ofrefundsforprocessedproductshasbeenadjusted
totakebetteraccount,firstly,oftheactualcomposition ofsuchproducts
and,secondly,ofthepricesituation ontheCommunitymarket.The
changeshaveresultedinreducingrefunds.
7.Asregardsmanagementoftheintervention system,particularly thequestion ~
ofresponsibilityincasesofaccident,firesetc.,theSCI'srecommenda­
tionshavebeenincorporated intoaproposedCouncilRegulation .
(COM(80)761finalof26November1980)designedtoconsolidate existing
arrangements relatingtothefinancingofintervention measuresinvolving
thebuying-in,storageandsaleofagricultural productsbyintervention
agencies.-TheCommission'sdepartments havealsobegundiscussions with
nationalexpertsonchangestoRegulation (EEC)n°376/70layingdownthe
procedure andconditionsforthedisposalofcerealsheldbyintervention
agencies..Inthisconnection,theCommissionwillbetakingaccountof
thecommentsoftheSCIontheinitiation ofsalesoperations and
theharmonization ofpublicannouncement procedures .

Actionofagénéralnature
/ '
1.Cooperation andmutualassistance amongMemberStates
Inordertoimprove,atCommunity'level,thecooperation andmutual
assistancethatarenecessaryfortheCustomsUnionandthecommon
agricultural policytofunctionsmoothly,theCommission in1973presented
aproposalfora,regulation onmutualassistance toensurecorrectappli­
cationofcustomsandagricultural regulations (OJC100,22.11.1973).
ThisRegulation wasadoptedbytheCouncilon19May1981andwillcome
intoeffecton1July1981.
Similarly,adraftRegulation whichintroducesforownresources a
aystemlikethatestablished byRegulation (EEC)n°283/72(OJL36,
10.2.1972 )dealingwithactionagainstfraudinthefieldofagricultural
spendinghasalsobeensenttotheCouncilbytheCommission (OJC88,
4.4.1979).
2.Administration ofCommunitytransit
TheCommission'sstaffhasstartedtodrawupacollectionofexamples
oftheuseofT5control'copies.
Underthemulti-annual programmeI'orimplementing theCustomsUnion,
anadhocgroupchairedbyarepresentative oftheCommission and--
consisting ofseniorofficialsfromtheMemberStateshasbeensetup
ontheinitiative oftheCommission,withtheagreementoftheMember
States'customsservices,toreviewtheapplication inpracticeof
Communitycustomslegislation .Asanexperiment,ithasbeendecided
toexaminetheCommunitytransitsystem.ThegroupwilllookatT5
controlcopies.Itwillbeissuingareportonceithascompletedits
investigations ,whichwilldealwithboththeinstructions givenby

6.
MemberStatesonapplyingthesystemandthewayitisactually
implemented bycustomsofficials.Thisreport,whichisnowbeing
drafted,willbestudiedbytheCommitteeonCustomsProblemsatits
nextmeetinginthecomingautumn. ■•' \
Thereportwillcontainanumberofsuggestionsrelatingnotonlyto
Communityarrangements butalsotosomenationalpracticesandeven
certaindetailsofadministrative organization intheMemberStates.
Forthisreasonitshouldbeconsideredwithintheappropriate forums
andattheappropriate level.
Asupplementtothereportwillbeissuedtowardstheendoftheyear
dealingwithapplication ofthesysteminGreece.SinceGreece's
accessionisveryrecent,itseemedpreferabletowaituntilthecountry
hadaccumulated someexperienceinapplyingthetransitsystembefore
embarkingonastudyofthesituationthere.
3.Tariffheadings ' ' ~-
TheCommission'sdepartments keepcarefulandconstantwatchtoensure
thattheinsertionofnewtariffitemsinChapters1-24oftheCommon
customsTariffisconfinedtotheminimumcompatiblewiththeapplica­
tionofthecommonagricultural policyandthattheproductsinvolved
aredistinguishable onobjectivecriteriafromotherproducts.~
Tariffheadingsareindispensibleinregardtoimportingandexporting.
Thesolutionsfoundtotheproblemsofdistinguishing andcontrolling
productsarethebestavailableintermsofproperadministration and
effectivemonitoring.
4.Ascertaihing thedestination ofgoodsincasesofdifferential refund
rates.
TheCommission'sstaffhavegatheredinformation fromtheMemberStates
onthedifficulties involvedinsecuringadequateproofofdestination

7.
ingrantingrefunds. *
OneMemberStatehasstill,toreply,andGreecehasnotbeenincluded
becauseitwasnotaMemberStateatthetimethequestionnaire was
sentout..
9
Fromthisinformation,alisthasbeenmadeofnon-membercountriesin
whichitisdifficulttoobtaindocumentsprovingarrivalofgoods
fromeachoftheMemberStates..FurtherlistssuppliedbyMemberStates
cover •
-thenon-membercountriesinwhichagricultural productsareimported
byandfortheaccountofstateorganizations ;
-supervising bodiesthatissuerecognizedcertificates ofunloading.
5.Sensitiveproductsintermsoffraud
Aprocedureforgivingadvancenoticetocustomsofficesofdestination "
ofconsignments ofsomesensitivecategoriesofgoodswasintroduced,
butexperiencewithitinthefirstsixmonthsshowedthatitwasonerous
forthecustomsservicesandtheresultsborenorelationtotheeffort-
andcostentailed.AttheunanimousrequestoftheMemberStatesitwas
agreedtorenewtheapplication oftheprocedureforafurthertrial
.periodonlyandtoconfineittoconsignments recognizedassuspect.
Followingthisfurthertrialtheprocedurewasstoppedforthereasons
given.
ν.
6.Sanctions
Combattingfraudcallsformoresuitablelegalinstruments thanthe
Communitycurrentlyhasatitsdisposal.

AdrafttreatyisatpresentbeforetheCouncilwhichwouldamend
theTreatiesestablishing theEuropeanCommunities soastopermit
theadoptionofcommonrulesontheprotection undercriminallaw
ofthefinancialinterestsoftheCommunities andtheprosecution
ofinfringements oftheprovisionsofthoseTreaties(OJC222,.
22.9.1976). -
Althoughtheadoptionofthesecommonruleswouldbeofgreatvalue,
theywouldnotansweralltheproblems(intermsofequalandeffective
treatmentforallimporters/exportersunderasetofCommunityrules)
thatresultfromtheexistenceofwidelydifferinganti-fraudprovisions
amongtheMemberStates.
Dataprocessing
TheDatacentralen systemforapplyingdataprocessingtothemanagement
andfinancialadministration ofagricultural marketshasnowbecome
operational .Anumberofchecksarealreadybeingcarriedoutbythe
centralcomputeron,forexample,themonthlytotalofexpenditure,
therunningtotalofexpenditure andthefinancialstatusofagiven
budgetitem.
Othertasksarealsobeingperformed,suchasthefollow-uptolending
operations andforecasting ofcreditrequirements .-
TheCaddiaproject-includes,amongotherthings,astudyonthedata
processingneedsoftheMemberStatesandCommissionwithregardto
information onimportsandexportsofallproducts,includingagricultural
products,andotherinformation neededformarketmanagementandfinancial
controlwhichistobecirculatedintheCommunity.
Thefirstphaseofanalysisandresultingrecommendations bythe
consortiumofconsultants hasbeencompleted.

AsaresultoftheCADDIAconsortium'sreport,theCommissionis
preparingproposalsonthedevelopment ofdataprocessingsystemsin
theCommunity,A
Itisplannedtoconductin-depthstudiesleadingeventuallyto
-computersystemsforexchangingurgentdataneededinthemanagement
"ofthecommonagricultural policyandbytheCustomsUnionService;
-anautomated commoncustomstariff(TARIC);-
-systemsforcollectingstatistical andaccountingdata(including'
EAGGFaccounting).
Oneofthepilotprojectsinvolvescomputerizing theclearanceof
transitdocuments.Theaimofthestudyistosetupasystemtospeed
uptransitdocumentprocedures andmakethemmoreefficient;search
procedureincasesofirregularity wouldalsobecovered.Ultimately,
theintentionwouldbetoeliminatethedifficulties oftransmitting
transitdocuments.TheCommitteeonCommunityTransithasinvestigated
thevolumeofoperations whichcomputerization 6fthiskindmightembra
andhasproducedamemorandumgiving,intheformofverygeneral
instructions,theidealsolutionsthepilotstudyshouldbeaimingat.
Unfortunately,thepilotprojecthasnotyetbeenimplementedforlack
offunds.\