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DOCUMENTS "COM"
COM(79)276
Vol.1979/0106

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(79)276final
Brussels-28May1979
Proposalfora
COUNCILDIRECTIVE
ontemporarysuspensionoftheapplicationofinwardprocessing
arrangements tocertaindairyproducts
(submittedtotheCouncilbytheCommission )
X^X- ./,>
–v•■g3
GTA^
C0M<79)276final

EXPLANATION
Themarket situation intheCommunity forwhey ,skimmed milk powder and
batter become ?more andmore difficult andthere isatpresent asurplus
production ofthese products intheCommunity .Hiesurplus that cannot be
quiokly eliminated ,since there arefewoutlets ontheworld market and
hence only limited possibilities forexport ,entails serious difficulties
fortheproper working ofthecommon organisation ofthemarket inmilk
andmilk produots .
Inorder toremedy this serious market situation theCouncil adopted
regulation (EEC)no.1961/75prohibiting theuseofinward processing
arrangements inrespect ofskimmed milk powder .Furthermore theuse ofinward
processing arrangements larespeot ofbutter wasprohibited byCommission
Regulation (EEG)NO.3352/75ASlast amended byRegulation (ESC)no.
2119/78andtheCommission inorder toavoid substitution ofSMPbywhey
powder has submitted aproposal totheCouncil prohibiting theuse ofinward
processing arrangements forwhey .These measures however ,only partially
cover thecases where itiseconomically justified andpossible toexclude the
use ofinward processing arrangements inrespect ofsuch products ,and itis
therefore indicated tosupplement these measures .This maybedone bya
directive applying article 5(l)oftheCouncil directive ontheharmonisation
ofprovisions laid down bylaw ,regulation oradministrative action inrespeot
ofinward processing (69/73/EEC).
Article 29of'thebasic directive sets outtheprocedure fortheadoption of
such anapplication directive ,i.e. adoption bytheCouncil aoting ona
qualified majority onaproposal from theCommission .
Adraft proposal foranapplication directive isannexed .
Having regard totheserious state ofthemarket intheCommunity formilk
andmilk products itisnecessary that theproposal betransmitted tothe
Council asquickly aspossible .

Proposal for a
COUNCIL DIRECTIVE
ontemporary suspension oftheapplication ofinward processing arrange­
ments tocertain dairy products
THECOUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ;
Having regard toCouncil Directive 69/73/EECof4March 1969 ontheharmon­
ization ofprovisions laid down bylaw,regulation oradministrative action
1 . . ... .. 2inrespect ofinward processing ,aslast amended byDirective 76/119/EEC ,
and inparticular Article 129thereof ;
Having regard totheproposal from theCommission ;
Whereas Article 5(1)ofDirective 69/73/EECprovides that thecompetent
authorities maygrant authorizations inallcases where inward processing
arrangements would contribute towards providing themost favourable conditions
fortheexport ofgoods resulting from such processing without conflicting with
essential interests ofproducers within theCommunity ;whereas Article 5(2)
ofthe Directive referred toabove provides that certain operations are
considered tocontribute towards providing themost favourable conditions for
exports without conflicting with essential interests ofproducers within the
Community ;
Whereas theuseofinward processing arrangements hasbeen prohibited toa
certain extent inrespect ofmilk powder andbutter byCouncil Regulation (EEC)
3 . .... . . .. ..4No1961 /75,aslast amended byRegulation (EEC)No875/7randCommission
Regulation (EEC)No3352/75"*,aslastamended byRegulation (EEC)No2119/78^
andinrespect ofwheybyCouncil Regulation (EEC)No /79^;
Whereas there isasurplus ofskimmed milk powder andbutter atpresent inthe
Community ;whereas there arevery fewoutlets ontheworld market ,which
•considerably limits thepossibility ofexporting these products ;whereas all
capacity forabsorbing surpluses must therefore bedevoted toCommunity
production ;
10JNoL58of8.3.1969 ,p.1
30JNoL200of28.7.1975 ,p.6
?0JNoL330of24.12.1975 ,p.28
7,0JNoL24of30.1.1976 ,p.58
40JNoL106,29.4.1 977,p.23
60JNoL246of8.9.1978 ,p..12

Whereastheworldmarketdoes,however,offersomeoutletsforcertain
processedproductsnotcoveredbytheprohibitions ofusingtheinward
processing arrangements ;whereastheCommunityprocessingindustries may
obtaintheirwhey,skimmedmilkpowderandbutterforthemanufacture of
suchproductsfromthirdcountriesandprocessitunderinwardprocessing
arrangements ;
WhereastheCommunitymarketwillenabletheseindustriestoobtainample
suppliesofwhey,skimmedmilkpowderandbutterofCommunityorigin,thus
relievingtheCommunitymarketinthoseproducts;whereastheuseofsuch
productsfromthirdcountriesisthereforeliabletojeopardize theproper
workingofthecommonorganization ofthemarketinmilkandmilkproducts
andthusconflictwithessentialinterestsofproducerswithintheCommunity;
£
Whereasitisnecessarytoensureauniformapplication ofArticle5(1)of
theDirective (EEC)69/73/EEC;
HASADOPTEDTHISDIRECTIVE :
Article 1
WithoutprejudicetotheprovisionsofArticle5(2)ofDirective No69/73/EEC
andtotheprovisionsofRegulation (EEC)Nos1961/75,3352/75and/79,
theinwardprocessing arrangements concerningtheproductsmentionedbelow,
introducedintothecustomsterritoryoftheCommunityfromthirdcountries,
areconsidered,until ,asconflicting withessentialinterests
ofproducerswithintheCommunity:
CCTheadingNo Description ofgoods
04.02AI Whey
04.02AIIb)1 Milkandcream,inpowderorgranules,ofafat
contentbyweight,notexceeding 1.5%,otherthan
thoseinimmediatepackingsofanetcapacityof
2.5kgorless
04.03 Butter

Article2
Article1shallnotaffectimportsmadeunderinwardprocessingarrange­
mentswithin30daysfrom providedtheyaremade
pursuanttoauthorizations validonthatdate.
Article3
TheMemberStatesshallbringintoforcethemeasuresnecessarytocomply
withthisDirectivenotlaterthan
Article4
ThisDirectiveisaddressedtotheMemberStates.
DoneatBrussels. FortheCounciI
ThePresident