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COMMISSION OF THE EUROPEAN CCMVKJNITIES 
wv C0M(94) 246 final 
Brussels, 10.06.1994 
94/0145 (ACC) 
Proposal for a 
COUNCIL REGULATION (EC) 
on special arrangements for imports of maize and sorghum 
into Spain for the year 1994 
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(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
According to the Agreement between the European Economic Community and the 
United States of America for the conclusion of the negotiations under GATT 
Article XXIV.6, as approved by Council Decision of 30 January 1987, the 
Community was committed to open an annual quota of 2 million tonnes of maize 
and Q.3 million tonnes of sorghum for import into Spain for each of the 
years 1987 to 1992. These annual quotas were to be reduced by the quantities 
of certain cereal substitutes imported into Spain within the same year. 
An extension of the initial Agreement between the Community and the United 
States of America for 1994 was approved by Council Regulation (EC) No 532/94 
of 7 MArch 1994. special arrangements for imports of maize and sorghum into 
Spain should be laid down for 1994, with the aim of ensuring fulfilment of 
the above-mentioned commitment. As the Agreement was concluded under 
Article 113 of the Treaty, the Community has exclusive competence for these 
arrangements. 
Accordingly, the present draft regulation provides for special arrangements 
for imports with retroactive effect from 1 January 1994. 
Proposal for 
COUNCIL REGULATION (EC) No 
of 1994 
on special arrangements for imports of maize and sorghum 
into Spain for the year 1994 
THE COUNCIL OP THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in 
particular Article 113 thereof, 
Having regard to the proposal from the Commission1, 
Whereas, under Council Regulation (EC) No 532/94 of 7 March 19942 extending 
the measures taken under the Agreement between the European Community and the 
United States of America for the conclusion of the negotiations under GATT 
Article XXIV.6, the Community undertook, in respect of the year 1994, to open 
a quota for imports into Spain of two million tonnes of maize and 300 000 
tonnes of sorghum, minus the quantities of certain grain substitutes imported 
into that country during the same year; whereas the quantities of maize and 
sorghum imported must be used or 
processed in Spain; whereas the Community has sole competence for the said 
Agreement; 
Whereas, to ensure that the Agreement between the European Economic Community 
and the United States of America is implemented, the extended arrangements 
provide for direct purchase on the world market or application of a levy 
reduction system; whereas, however, imports of maize and sorghum into Spain 
effected on preferential terms may create difficulties for the Community 
market; whereas, to overcome that difficulty, provision should be made for the 
possibility of applying a countervailing duty to processed products exported 
either to third countries or to the rest of the Community; 
1 OJ No C 
2 OJ No L 68, 11.03.1994, p. 1. 
- 2 -
Whereas the combination of the advantages provided for under the arrangements 
established by Council Regulation (EEC) No 715/90 of 5 March 19903, as last 
amended by Commission Regulation (EEC) No 444/924 applicable to imports into 
the Community of sorghum and maize originating in the African, Caribbean and 
Pacific (ACP) states or in the overseas countries and territories and under 
this Regulation is liable to create disturbances on the Spanish market in 
cereals; whereas that difficulty can be overcome by setting a special 
reduction of the levy on maize and sorghum imported under this Regulation; 
whereas provisions are required to cover the operations arising from this 
Regulation according to the mechanisms laid down by Council Regulation (EEC) 
No 729/70 of 21 April 1970 on the financing of the common agricultural 
policy^, as last amended by Regulation (EEC) No 2048/886, and by Council 
Regulation (EEC) No 1883/78 of 2 August 1978 laying down general rules for 
the financing of interventions by the European Agricultural Guidance 
Guarantee Fund, Guarantee Section^, as last amended by Regulation (EEC) 
No 787/898, 
HAS ADOPTED THIS REGULATION: 
Article 1 
For 1994 imports from third countries, for free circulation in Spain, of a 
maximum quantity of two million tonnes of maize and 300 000 tonnes of sorghum 
shall be effected as provided in the following Articles. 
3 OJ No L 84, 30.3.1990, p. 85. 
4 OJ No L 52, 27.2.1992, p. 7. 
5 OJ No L 94, 28.4.1970, p. 3. 
6 OJ No L 185, 15.7.1988, p. 1. 
7 OJ No L 216, 5.8.1978, p. 1. 
8 OJ No L 85, 30.3.1989, p. 1. 
- 3 -
Article 2 
1. The quantities referred to in Article 1 shall be reduced in proportion to 
any quantities of maize gluten, brewers' grains and citrus pulp imported 
into Spain from third countries during the year 1994. Where it is 
ascertained that the quantities of such products imported into Spain 
under the cover of documents establishing their Community status develop 
abnormally, the necessary action shall be taken in accordance with the 
procedure laid down in Article 23 of Council Regulation (EEC) No 1766/92 
of 30 June 19929. 
The quantities of maize and sorghum referred to in Article 1 shall be 
allocated to processing or use in Spain. 
Article 3 
1. Without prejudice to Article 4, in respect of imports of maize and 
sorghum into Spain, but within the quantitative limits set in Article 2, 
a reduction shall be applied to the levy fixed in accordance with 
Article 10 of Regulation (EEC) No 1766/92. 
2. The amount of the reduction shall be fixed, in accordance with the 
procedure laid down in Article 23 of Regulation (EEC) No 1766/92, at a 
level enabling disturbance of the Spanish market to be avoided. The 
reduction may also be fixed by a tendering procedure. 
The reduction may be differentiated for imports of maize and sorghum into 
Spain under Regulation (EEC) No 715/90. 
The reduction shall be applied to imports of maize and sorghum into Spain 
effected on the basis of a licence valid only in that Member State. 
9 OJ No L 181, 1.7.1992, p. 21 
- 4 -
Article 4 
1. with a view to effecting the imports referred to in Article 1, it may be 
decided, under the procedure laid down in Article 23 of Regulation (EEC) 
No 1766/92, that the Spanish intervention agency shall purchase directly 
on the world market quantities of maize and sorghum to be determined, and 
shall place them under customs warehousing procedure as provided for in 
Council Regulation (EEC) No 2503/88 on customs warehouses10 and 
Regulation (EEC) No 2561/9011 laying down provisions for the 
implementation thereof. 
2. Quantities purchased pursuant to paragraph 1 shall be put up for sale on 
the Spanish domestic market, in accordance with the procedure laid down 
in Article 23 of Regulation (EEC) No 1766/92, on terms enabling market 
disturbance to be avoided. 
3. When the goods are placed in free circulation, an agricultural levy shall 
be charged, equal to the average of the levies applicable in Spain and 
fixed for the cereals concerned during the first 25 days of the month 
preceding the date of acceptance of the declaration of entry into free 
circulation, minus the difference between the threshold price and the 
intervention price for the same month. 
Entry into free circulation shall be effected by the Spanish intervention 
agency. 
When the purchasers of the goods make payment to the intervention agency, 
the selling price minus the levy shall correspond to revenue from sales 
within the meaning of Annex I to Regulation (EEC) No 3492/9012. 
4. The purchasing operation provided for in paragraph 1 shall rank as 
intervention for the purpose of stabilizing the agricultural markets 
within the meaning of Article 1(2)(b) of Regulation (EEC) No 729/70. 
10 OJ No L 225, 15.8.1988, p. 1. 
11 OJ No L 246, 10.9.1990, p. 1. 
12 OJ No L 337, 4.12.1990, p. 3. 
- 5 -
Payments by the intervention agency for buying as provided for in 
paragraph 1 shall be borne by the Community as they arise and shall be 
treated in the same way as the expenditure referred to in Article 2 of 
Regulation (EEC) No 1883/78. The Spanish intervention agency shall record 
the value of the merchandise purchased at a price of 'zero* in the 
account referred to in Article 4 of Regulation (EEC) No 1883/78. 
Article 5 
At a frequency to be determined, the Commission shall record in accounts: 
the quantities of maize and sorghum imported into Spain from third 
countries, 
the quantities of maize gluten, brewers' grains and citrus pulp imported 
into Spain. 
For this purpose, the Spanish authorities shall supply the commission 
regularly with all necessary information. 
Article 6 
The imports referred to in Article 2 shall be effected not later than the end 
of February of the following year. In the event of technical difficulties duly 
noted by the commission a period of importation exceeding that time limit may 
be laid down in accordance with the procedure laid down in Article 23 of 
Regulation (EEC) No 1766/92. 
- 6 -
Article 7 
Where the markets for products derived from maize or sorghum are disturbed, a 
countervailing duty may be introduced in accordance with the procedure laid 
down in Article 2 3 of Regulation (EEC) No 1766/92 for exports of t**« relevant 
products from Spain or for their consignment to other Member States. 
Article 8 
The following shall be adapted in accordance with the procedure laid down in 
Article 23 of Regulation (EEC) No 1766/92: 
any measures needed to ensure that the cereals, the levy for which has 
been reduced, are actually processed or used in Spain; such measures may 
in particular provide for the deposit of a security, 
the other detailed rules for the application of this Regulation, and in 
particular those relating to the issue of import licences; such rules may 
stipulate that the licences may be issued only in Spain, after commission 
endorsement. 
Article 9 
This Regulation shall enter into force on the day following its publication in 
the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in 
all Member States. 
Done at Brussels, For the Council, 
FINANCIAL STATEMENT 
Date: 24.5.94 
1. BUDGET HEADING: Expenditure Bl-1003 
Revenue Bl-1000 APPROPRIATIONS: 214.0 
1023.4 
2. TITLE: 
Proposal for a Council Regulation (EC) on special arrangements for imports of maize and sorghum into 
Spain for the year 1994 
3. LEGAL BASIS: EC Treaty, and in particular Article 113 thereof 
4. AIMS OF PROJECT: 
To fix the quantities and lay down the implementing rules for the special arrangements for imports of 
maize and sorghum into Spain following the extension of the Agreement on the matter by Council Regulation 
(EC) No 532/94 
5. FINANCIAL IMPLICATIONS 
5.0. EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) PERIOD OF 12 MONTHS 
(ECU million) 
88.7 
52.5 CURRENT FINANCIAL 
YEAR (1994) 
(ECU million) 
p.m. 
10.5 FOLLOWING FINANCIAL 
YEAR (1995) 
(ECU million) 
88.7 
42.0 
1996 
5.0.1. ESTIMATED EXPENDITURE 
5.1.1. ESTIMATED REVENUE p.m. 1997 1998 1999 
5.2. METHOD OF CALCULATION: 
Revenue: 1.5 million t x ECU 29/t x 1.207 (DR) = ECU 52.5 million. ECU 29/t is the difference between the 
intervention price for maize with 5 monthly increases and the world market price (C.I.F.) as contained 
in the 1995 PDB [(106.6 + 5 x 1.16) - (70 + 13)] = 29. 
It is assumed that 20% of the revenue will be received in 1994. 
Expenditure: 1.5 million t x ECU 49/t x 1.207 (DR) = ECU 88.7 million. 
ECU 49/t is the refund for maize as contained in the 1995 PDB. 
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 
6.2. IS A SUPPLEMENTARY BUDGET NECESSARY? 
NO 
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES 
COMMENTS : 
The quantity provided for in Article 1(1) of 2.3 million t of maize and sorghum is reduced by 800 000 t, 
corresponding to the estimated quantities of maize gluten, brewers' grains and citrus pulp imported into 
Spain in 1994 in accordance with Article 2 of the same Regulation. 
The 1995 PDB takes account of these imports. 
ISSN 0254-1475 
COM(94) 246 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-94-260-EN-C 
ISBN 92-77-70099-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg