27. 11. 90 Official Journal of the European Communities No C 297/3 
Proposal for a 
COUNCIL REGULATION (EEC) No .. . 
of ... 
determining the general rules for the system of accession compensatory amounts for milk 
and milk products during the second stage of the accession of Portugal 
(90/C 297/03) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to the Act of Accession of Spain and 
Portugal, and in particular Article 234 (2) thereof, 
Having regard to the proposal from the Commission, 
Whereas Article 310 of the Act of Accession provides for 
the fixing of prices, for Portugal, at a level which may be 
different to that of the common prices; whereas, pursuant 
to Article 240 of the Act, such differences in price level are 
to be compensated for by a system of compensatory 
amounts; 
Whereas the accession compensatory amounts are intended 
to avoid disturbances in trade resulting from differences 
in prices; whereas, as a consequence, the application of 
accession compensatory amounts is not required where 
there is no fear of such disturbances; whereas, as regards 
butter in particular, pursuant to Article 240 (2) of the Act, 
no such amount need be fixed given the slight difference 
between the prices applicable in Portugal and the common 
prices; 
Whereas the situation as regards trade in skimmed-milk 
powder, where the price applicable in the Azores differs 
from that applicable in mainland Portugal, would warrant 
setting the accession compensatory amount on the basis of 
the latter price; 
Whereas Article 311 of the Act provides that the accession 
compensatory amounts for milk products other than butter 
and skimmed-milk powder are to be fixed using coefficients 
to be determined; whereas, for the determination of such 
coefficients, account should be taken, in particular, of the 
differences between the prices recorded on the Portuguese 
market and the prices recorded in the other Member 
States; Whereas, where it becomes necessary, provision should be 
made for the possible introduction of a system for the 
advance fixing of accession compensatory amounts; 
Whereas a certain amount of deflection of trade and 
distortion of competition may, in particular, occur in the 
final period of moves towards price alignment and when 
common prices are applied throughout the Community; 
whereas it is therefore justified that measures intended to 
avoid such deflection and distortion should apply for such 
time as is necessary, 
HAS ADOPTED THIS REGULATION: 
Article 1 
For the purposes of this Regulation: 
— 'Community of Ten' means the Community as 
constituted on 31 December 1985, 
— 'accession compensatory amounts' means compensatory 
amounts applicable in trade between the Community of 
Ten and Portugal, between Spain and Portugal and 
between the latter and third countries. 
Article 2 
No compensatory amount shall be set for butter or for milk 
fat contained in other products. 
Article 3 
The accession compensatory amounts applicable for each 
year shall be: 
(a) for skimmed-milk powder, equal to the difference 
between the intervention price fixed for mainland 
Portugal and the intervention price applicable in the 
Community of Ten or in Spain; 
(b) for the other products listed in Article 1 of Council 
Regulation (EEC) No 804/68 (*), fixed using one or 
more of the following factors: 
(!) OJ No L 148, 28. 6. 1968, p. 13. 
No C 297/4 Official Journal of the European Communities 27. 11. 90 
— the difference between the prices recorded on the 
Portuguese market and the prices recorded in the 
Community of Ten or in Spain, 
— the quantities of raw materials used in the 
manufacture of the products concerned, 
— specific manufacturing costs. 
Article 4 
In trade between the Community of Ten and Portugal, or 
between Spain and Portugal, accession compensatory 
amounts shall be levied or granted by the Member State 
concerned whose price level used for the determination of 
the accession compensatory amounts is the highest. 
Article 5 
1. The accession compensatory amount applicable shall 
be that in force at the time of acceptance of the declaration 
of import or export. Article 6 
1. The following shall be determined in accordance with 
the procedure laid down in Article 30 of Regulation (EEC) 
No 804/68: 
(a) the detailed rules for the application of this Regulation 
and, in particular, for fixing the accession 
compensatory amounts; 
(b) the procedure for granting and levying accession 
compensatory amounts in order to prevent any 
deflection of trade or distortion of competition. 
2. Measures to prevent any deflection of trade or 
distortion of competition may continue to apply, for as 
long as is deemed necessary, after the accession 
compensatory amounts have been discontinued. 
2. However, where necessary, the introduction of a 
system for the advance fixing of the accession 
compensatory amount may be decided upon in accordance 
with the procedure set out in Article 6. Article 7 
This Regulation shall enter into force on 1 January 1991. 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at Brussels, 
For the Council