ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)2032
Vol.1973/0362

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COMMISSION OFTHEEXROEEANCOMMUNITIES
COM(73)2032final
Brussels,5December1973
-PROPOSAL FORA
REGULATION (me)OFTHECOUNCIL
extending "thearrangements made"byRegulation(EEC)No1253/73onimports
ofthewineproductexportedunderthelabelof
"CyprusSherry",originatinginandcomingfromCyprus,andtheintroduction
ofsubsidiesforsimilarwineproductsproduced
intheCommunityasoriginallyconstituted andexportedtoIrelandandthe
UnitedKingdom
(submittedtotheCouncilbytheCommission)
COIï(73)2032final

EXPLANATORY ME'IOItAIIDUM
TheAssociation AgreementwiththeRepublicofCyprusprovidesthat
specialimporttermsshallbeintroducedforwineexportedunderthelabel
"CyprusSherry",ofwhichCyprusexportsalargequantityandthesalesof
whichareessentialfortheCypruseconomy.Thesearrangements ,setoutin
a&exchangeoflettersannexedtothesupplementary protocoltothe
Agreement,weremotivatedbyaconcernnottointerrupttraditional exports
toIrelandandtheUnitedKingdomafter1February,1973,whenthereference
pricesforwinebecameapplicableinthenewMemberStates,Indeed,ifthe
referencepriceshadbeenappliedimmediatelytothatproductthen,bearing
inmindcertainquestionsofcompetition andquality,thisproductwould
probablyhavedisappeared fromtheBritishmarket.However,inordernot
toprolongindefinitely anarrangement whichwouldseriouslyjeopardize
attainmentoftheobjectivesofthecommonorganization ofthemarket,in
particularassuchspecialarrangements wouldbeboundtocreateaprecedent,
provisionsshouldbeadoptedbyCyprussothattherulesgoverningCyprus
Sherrycouldasquicklyaspossiblebealignedwiththegeneralruleslaid
downbytheCommunitywineregulations .
Thisiswhytheopeningoftheprovisionalspecialarrangements was
madesubjecttotheenactmentandbringingintoforcebyCyprus,during
agivenperiod,ofwinerulesconformingwiththoseinforcewithinthe
Community.
Asaresultofthisconcernnottointerrupttraditionaltradeflows
anddeliveries ontheIrishandBritishmarketsinsimilarCommunitywines
duringtheperiodoverwhich"CyprusSherry"benefitsfromthespecial
importterms,thevolumeofimportssubjecttothosearrangements was
limited,intheexchangeofletters,tothelevelactuallyimportedin
previousyears(200»000hectolitres).TheCouncilalsolaiddownmeasures
toenablesimilarCommunitywinestobesoldontherelevantmarketsin
conditionsofbalancedcompetitionwiththeCypruswine.

-2-
TheobjectofRegulation(EEC)No1253/73wastoimplement,from
1Februaryto31December1973,therelevantprovisionsoftheAgreement
betweentheCommunityandCyprusassetoutintheabovementionedexchange
ofletters*TheRegulationalsomakesprovisionforextendingthespecial
arrangements foraperiodsuchthattheycouldbeappliedtothe1974
harvest,uponconditionthatthelegislationtobeenactedbefore
1September1973byCypruswasinconformitywiththeCommunityrules.
Analysis,nowinprogress,ofthelegislationenactedbytheRepublic
ofCypruson31Augusthasshownthatincertainaspectsitdoesnotconform
withCommunitylegislation,sothatArticle6ofRegulationEECNo1^53/73,
whichsetsupsuchconformityasaconditionprecedentfortheextension,
cannotbeusedasabasisforextendingthepresentarrangements .Inthe
meantimecontacthasbeenmadewiththeCyprusauthoritiesinorderto
findouthowfaritispossibletomakethenecessarychangessothatthe
ruleswouldconformwithCommunityrules.Pendingresultsoftheresearch
beingcarriedoutwiththeauthorities ,whoarebeingmostcooperativein
thisrespect,fromwhichoneassumesthatthenecessaryconformitywill
beachieved,thepresentarrangements shouldbeextendedonthebasisof
Article43oftheTreaty.Thiswouldavoidanyunwarranted sudden
interruption intradeiftheCypriotauthorities ,asmayreasonablybe
expected,quicklymadethenecessarychangesintheirlawsinorderto
makethemconformwithCommunityrules.

FINANCIAL EFFECTS
1.Itfollowsfromwhathasalreadybeensaidthatifthereferenceprice
wasapplied,involvingcollectionuponimportsof"CyprusSherry"ona
countervailing chargepursuanttoArticle9(3)ofRegulation (EEC)
No816/70ofsome50u.a./iil,itwould"bevirtuallyimpossibletoimport
thisproducttoIrelandandtheUnitedKingdom.Consequently ,
non-application tothistypeofwineofacountervailing charge-which
•correspondstoanagriculturallevyforthepurposesofArticle2(a)of
theDecisionof21April1970onthereplacementoftheMemberStates'
financialcontribution bytheCommunity'sownresources-wouldhave
virtuallynoeffectonthetotalamountofincomeobtainedfromapplying
thecountervailing chargesonwine.
2.Thefinancialeffectoftheschemeofsubsidiesfordeliveriesof
Communitywinessimilarto"CyprusSherry"largelydependsonthelist
ofwinesreferredtoinArticle5oftheproposal.Thislistwillbe
drawn,upbytheCommission ,afterreceivingtheOpinionoftheManagement
Committee.Asaguideline,basedontheCommissiondepartments'draftwhichha
notyetbeensubmittedfortheOpinionoftheManagementCommittee,the
amountofthesubsidywillbe37u.a./hlanditcanbeexpectedthatthe
quantityofwineconcernedwill,assuminganoptimisticestimate,be
equivalenttoexportaofliqueurwineswhicharenotcoveredbya
registereddesignationoforiginfromtheCommunityofSixtothird
countries,i.e.,for1971f3»900hi.Inthiscasethecostwouldbe
145»000uea.fortheperiodoftheapplicationoftheproposedregulation
(lJanuaryto31December1974)*Thewayinwhichthisexpenditureis
tobefinancedbytheCommunitywillbemadeclearinaproposalfora
Regulationtobeputforwardsubsequently .

■proposalfora
REGULATION (EEC)OPTHECOUNCIL
extendingthearrangements madebyRegulation(EEC)No1253/73onimports
ofthewineproductexportedunderthelabelof
"CyprusSherry",originatinginandcomingfromCyprus,andtheintroduction
ofsubsidiesforsimilarwineproductsproduced
intheCommunityasoriginallyconstituted andexportedtoIrelandandthe
UnitedKingdom 1
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle43thereof!
HavingregardtotheproposalfromtheCommission !
HavingregardtotheOpinionoftheEuropeanParliament !
WhereasRegulation(EEC)No1253/73introducedarrangementsforimports
ofthewineproductexportedunderthelabelof"CyprusSherry",originating
inandcomingfromCyprusandsubsidiesforsimilarwineproductsproduced
intheCommunityasoriginallyconstituted andexportedtoIrelandandthe
UnitedKingdom;
Whereasthesearrangements areapplicableuntil31December1973!whereas,
however,pursuanttoArticle6ofRegulation(EEC)No1253/73»if,before
1September1973,theRepublicofCypmsenactslegislation onwine
productionwhichisinconformitywithCommunityrulesapplicabletoproducts
similartotheproductsspecifiedinArticle1,theCouncil,actingona
proposalfromtheCommissioninaccordancewiththevotingprocedurelaid
downinArticle43(2)oftheTreaty,istotakeallnecessarystepstoensure
thatthearrangements areextendedinaccordancewiththetermsofthe
(2exchangeoflettersannexedtotheProtocollayingdowncertainprovisions
relatingtotheAgreementestablishing anassociation betweentheEuropean
EconomicCommunityandtheRepublicofCyprusfollowingtheAccessionof
newMemberStatestotheEuropeanEconomicCommunity !
J^OJNoL133,21May1973,P.115
^'OJNoL133,21May1973,P.95/•••

Whereason31AugusttheRepublicofCyprusadoptednewrulesgoverning
wineandonloOctobersenttextsforperusalbytheCommissionj
Whereas,however,consideration ofthesetextsisnotyetfarenough
advancedforadecisionfinallytobetakenonwhetherthelegislation
enactedbyCyprusisinconformitywithCommunityrules5
Whereasthelegislation enactedshouldthereforebeexaminedwiththe
authoritiesofCypruswithaviewtomakinganynecessarychangesthereto;
WhereastheCypriotauthorities havedeclaredtheirwillingnessto
collaboratewiththeCommissioninordertoseekthebestwaysofapplying
theexchangeoflettersreferred ,toabove;
Whereasinthemeantimeanyinterruption inthearrangements applicableto
importsoftherelevantproductsintotheUnitedKingdomandIrelandshould
beavoided s

-3-
HASADOPTEDTHISREGULATION :
Article1
Fortheperiodfrora1Januaryto31December1974,thecountervailing
chargeprovidedforinthefirstsubparagraphofArticle9(3)ofRegulation
(EEC)NO8l6/70aslastamendedbyCouncilRegulation(EEC)No2593-/73^^
of24September1973>shallnotbeleviedonimportsintoIrelandandthe
UnitedKingdomofthewineproductexportedunderthelabelof"CyprusSherry"
originatinginandcomingfromCyprusuptoamaximumamountof2000,000
hectolitres .
Article2
1.Theamountof200,000hectolitresfixedinArticle1shallbedivided
intotwoquotas,theoneof2,000hectolitresforIrelandandtheother
of193,000hectolitresfortheUnitedKingdom,
2.ThesaidMemberStatesshallensurethatallimportersoftherelevant
productestablishedintheirterritoryhavefreeaccesstothequotas
attributedtothem.
3.TheextenttowhichthequotasoftheseMemberStateshavebeenusedup
shallbeassessedonthebasisofimportsoftheproductinquestion
passedthroughcustomsundercoverofdeclarations thatithasbeen
releasedforconsumption.
4*TheMemberStatesconcernedshallinformtheCommissionatregular
intervalsofimportsfromCyprusactuallysetoffagainsttheirquotas.
Article3
VJineproductsimportedintotheUnitedKingdomandintoIreland
freeofcountervailing charge,pursuanttoArticle1,maynotbeexported
tootherMemberStates.
^OJNoL99,5May1970,p.1
^^OJNoL259,26September,p.l

-4-
Article4 I
1.Subsidiesshallbegranted,inrespectofexportseffectedfro:.!
1February1973to1December1974toIrelandandtheUnitedKingdom
ofwineproductsproducedintheCommunityasoriginallyconstituted
whicharesimilartothewineproductexportedunderthelabelof
"CyprusSherry".
2.Thesubsidiesreferredtoinparagraph 1shallbecalculatedonthe
basisofthedifference ,onthemarketsoftheMemberStatesreferred
toinparagraph1,betweenthepricesoftheseCommunitywineproducts
andthepriceofthewineproductexportedunderthelabelof"CyprusSherri 1
Article5
Detailedrulesfortheapplication ofthisRegulation ,inparticular
thoseconcerningtheamountofthesubsidyandtheCommunitywineproducts
eligibleforaid,shallbeadoptedinaccordancewiththeprocedurelaid
downinArticle7ofRegulation No24ontheprogressiveestablishment ofa
commonorganization ofthemarketinwine
Article6
ThisRegulationshallenterinto
publication intheOfficialJournalof
ThisRegulationshallbebinding
inallMemberStates.forceonthethirddayfollowingits
theEuropeanCommunities.
initsentiretyanddirectlyapplicable
DoneatBrussels,
^'OJKo30,20.4.1962,p.939/62FortheCouncil
ThePresident