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Vol.1976/0034

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(76)94 Final
Brussels ,11March 1976
(
;
1
<1 •.
I
\ <
PROPOSED COUNCIL REGULATION (ESC)
amending annex IVRegulation (ESC)NO816/70laying down additional provisions
regarding thecommon organisation ofthewine market ,andthecommon customs
tariff regarding theexchange rates applicable upon customs duties forcertain
wines
\
COU (76)94Final

EXPLANATORY MMORMDUM
Inaccordancewiththegeneralrule,C3,containedinsection1ofthe
CommonCustomsTariff,theparitydeclaredtotheInternational Monetary
FundisappliedintheTariff,notablyinordertocalculatecustomsduties
expressedinunitsofaccount.Duetothecurrentcurrencyfluctuations
thisprovisionleadstomarketdistorsions betweenMemberStatesinthe
application oftheCommonCustomsTariffandforthisreasoncanbeacause
oftradedeflection .
Thus,tocorrectthissituation,theCommissionhasbegunworktoenableit
tolaybeforetheCouncil,assoonaspossible,aproposedmodification of
theabovementionedrule.
Thesituationdescribedrequiresfurthermore arapidsolutionconcerning
theimportation ofwinesgiventhatforthisproductthecustomsdutyisa
recessaryelementinthecalculation ofthefree-at-frontierreferenceprice
asdefinedbyCouncilRegulation(EEC)NO2506/75of29September1975
layingdownspecialrulesfortheimportation ofproductsinthet.dne-growing
sectororiginatingincertainthirdcountries.Thisregulationprovidesthat
thefree-at-frontierreferencepriceisequaltothereferencepriceminusthe
customsduties.
Ontheonehandeachoftheelementsisexpressedinunitsofaccountand
ontheotherthefree-at-frontierreferencepricemustbeconvertedinto
nationalcurrencyattheagricultural rate.'Undercurrentcircumstances
therateofcustomsdutyeffectively -appliedandusedwhennotingthe
complianceofthereference ,priceisconvertedfromnationalcurrencyaccording
toI.i'L,P.parities.Thusthissituationisriotcompatiblewiththeneedto
knowthetruelevelofofferprice,aftercustomsclearance,uponauniform
basisinordertoensureequivalententryconditionsforthisproductinto
theCommunityandespeciallytoallowthethirdcountriesconcernedto
obtainmaximumbenefitfror.thefinancialadvantagesinnlicitinthe
concessions .
ThustheCommissionhavingalreadyhadtoproposetotheCounciltopostpone
thedateofentryintoforceofRegulation (j^IC)lio2^06/75to1Julynext,
anaduetotheurgency,proposestotheCounciltoresolvetheproblemposed
bytheproductinquestionbyapplyingtoit,iortariffm.rtter;;,the
representative ratefixedforoperationscarriedoutunderprovisions ;ofthe
Co.vjnonAgricultural Policy.

Thisproposedregulation,beingbaseduponArticle43oftheEECtreaty,
requirestheconsultation oftheEuropeanParliament.
Thisproposalwouldhaveaninsignificant effectupontheCommunitybudget.

Proposed
COUNCIL REGULATION (EEC )No
of
amending Annex IVtoRegulation (EEC )No816/70
laying down additional provisions for the common
organisation ofthemarket inwine and the Common
Customs Tariff asregards the exchange rates
applicable tocustoms duties oncertain wines
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic
Community ,andinparticular Article 43,
Having regard totheproposal from theCommission ,
Having regard totheOpinion oftheEuropean Parliament ,
Whereas General Rule C3ofSection IofPart Iofthe Annex to
Council Regulation (EEC )No950/68of28June 1968 ontheCommon
Customs Tariff^,aslastamended byRegulation (EEC)No3000/75^^,
provides that theunit ofaccount byreference towhich certain
specific customs duties are expressed orthescope ofcertain headings
orsubheadings isdefined hasavalue of0.88867088 grajnmes of
fine gold ;
Whereas Council Regulation No129 onthevalue oftheunit ofaccount
and the exchange rates tobeapplied for thepurposes ofcommon
agricultural policy ,aslastamended byRegulation (EEC)No2543/73^^
allows measures tobetaken which derogate from theprinciple ofa
parvalue for theconversion ofonecurrency into another ;whereas
representative rates have been adopted intheagricultural sector
under this provision ;
Whereas theuse ofadifferent rate ofexchange from these rates
onecurrency into another those would lead toadistortion oftrade ;
Whereas this situation presents aspecial problem asregards the
system ofreference prices applicable towine ;
./.
(1)O.J. NoL172of22.7.1968 ,p.1
(2)O.J. No 304of24.11.1975 ,p.1
(3)O.J. No 106of30.10.1962 ,p.2553/62
(4)O.J. No 263of19.9-1973 ,p.1

-2-
Whereas ,forthis product ,Council Regulation (EEC )No2506/75of
29September 1975 laying down special rules forimportation of
products inthewine-growing sector originating incertain third
(1)countries v'provides that thefree-at-frontier reference price
shall equal thereference price less customs duties j
Whereas thesame rule should "beapplied tothese amounts ,expressed
inunits ofaccount ,when this areconverted into national currencies ,
sothat the effective level ofthe offer price after customs can be
clearance can beestimated onastandard basis ,both toensure that
thereference price isapplied uniformly without anyarticial
alteration ofthe pattern oftrade and toallow the third countries
concerned tobenefit fully from theadvantages resulting from the
concessions ,where this isappropriate ;whereas afixed rate of
exchange should beapplied inthis case inaccordance with Council
Regulation No129 ;
Whereas Annex IVtoCouncil Regulation (EEC )No816/70of28April
1970 laying down additional provisions for thecommon organisation
ofthemarket inwine^\aslastamended byRegulation (EEC)
No678/75^^,amended theCommon Customs Tariff ,
HAS ADOPTED THIS REGULATION :
Annex IV"Amendment ofthe Common Customs Tariff "toRegulation
-No816/70ishereby replaced bytheAnnec tothis Regulation in
respect oftheproducts falling within subheading No22.D5c.
This Regulation shall enter into force onthethird dayfollowing
thedayofitspublication intheOfficial Journal oftheEuropean
Communities .
Itshall apply with effect from l.July 1976 .
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States .Article 1
Article 2
Done atBrussels ,For the Council
The President
jTjÏToTJTNo 256of 2.10.1975 ,p.2
2)O.J. NoL99of 5.5.1970 ,p.1
3)O.J. NoL72of20.3.1975 ,p.43

ANNEX
Hcading
numbcr
ÎU.OSDescription
2
C.Other:
I.Ofmiactualalcoholicstrengthnotexceeding13°,incontainers
holding:
a)2litresorless
b)Morethan2litres
II.Ofanactualalcoholicstrengthexceeding13°butnotexceeding
15°,incontainersholding:
a)2litresorless
b)Morethan2litres
III.Ofanactualalcoholicstrengthexceeding15°butnotexceeding
18°,incontainersholding:
a)2litresorless:
1.Port,Madeira,sherry,Tokay(As/.uandSzamorodni )and
Setubalmuscatel(b)
2.Other
C.III.b)Morethan2litres:
1.Port,Madeira,sherryandSetubalmuscatel,.,.(i*/
2.Tokay(AszuandSzamorodni)._.(..£}
3.Other
IV.Ofanactualalcoholicstrengthexceeding18°butnotexceeding
22°,incontainersholding:
a)2litresorless:
1.Port,Madeira,sherry,Tokay(AszuandSzamorodni)and
Setubalnuiscatel('£)
2.,Other
•b)Morethan2litres:
1.Port,Madeira,sherryandSetubalmuscatel{$]
2.Tokay(AszuandSzamorodni)^j
3.Other
V.Ofanactualalcoholicstrengthexceeding22°,incontainersholding:
a)2litresorless
b)Morethan2litresRateofDuty
autonomous
••
orLcvy
IL)
12UA
perhl(a)'c.)
9UA
perhl(a)[c)
14UA
perhl(aXc
11UA
perhl(aVr
15UA
perhl
17UA
perhl(aXc'j
12UA
perhl
12UA
perhl
14UA
perhlIiconventional
16UA
perhl
19UA,
perhl
13UA
perhl
13UA
perhl
19UA,perhlÛ$(Cj
1<50UA
perhl
andper
degree+10UA
perhlfV'ö
1-60UA
perhi
and
perdegree«\)9UA,
perhl(.c)
11UA
perhlM
13-5UA
perhl
11UA
perhl
14-5UA
perhl
19UA,perhl(d)
12UA
perhl.
19UA
perhlcM
(b)liiuiviinjcrlinssuMicadinniso, or,:?'«nainoroducisinadditiontoihcrustomsduty.
(c)Therateofexchangetobeusedtoconverttheunitofaccountinwhichthecostumsduty
isexpressedintonationalcurrencyshall,bythewayofderogationfromtheGeneralRuleC3
containedinSection1ofPartlt"betherepresentative rateapplicabletowine,ifsucha
e.A®fixedinaccordancewithCouncilRegulationNo129onthe-valueof-theunitofaccount^J)Nolo6ofg|oTlo!?9^2pages11553/62)^pUrp°sesofthecommonagriculturalpolicy