COAAilSSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 264 final 
Brussels, 17 July 1991 
m>& 
mmem^mi'i-M-
•ife 
kf-y -Î. Proposal for a 
COUNCIL REGULATION (EEC) 
amending Council Regulation (EEC) No 3877/86 
of 16 December 1986 
on imports of rice of the long-grain aromatic BasmatI variety 
(presented by the Commission) 
EC: 
EXPLANATORY MEMORANDUM 
The special import arrangements for Basmati rice were introduced by 
Council Regulation (EEC) No 3877/86 of 16 December 1986. 
The objective of these arrangements is to facilitate trade in Basmati 
rice, which is produced in the Punjab region, on the Pakistan-India 
border. 
The period of application of these arrangements runs from 
1 January 1987 to 30 June 1991. They provide for a 25% reduction in 
the Import levy on Basmati rice produced In Pakistan and India up to an 
annual quantity of 10 000 tonnes husked equivalent. 
The application of the arrangements has not presented any particular 
difficulties. The objectives of Regulation (EEC) No 3877/86 (promotion 
ana" market diversification for BasmatI rice) have largely been 
achieved. Total Imports of BasmatI rice from Pakistan and India have 
risen substantially. The arrangements have also helped to open up new 
markets In the Member states. Operators In the Member States have been 
able to take advantage of the ay s tern Introduced by 
Regulation (EEC) Mo 3877/86. This has meant that Basmati rice la no 
longer Imported exclusively into one Member State and has become more 
widely known and consumed In greater quantities In the Community. 
Basmati rice is produced exclusively In, and is of major economic 
Importance to regions In India and Pakistan which do not have many 
alternative crops. 
The extension of the present arrangements for Basmati rice Is 
consequently important both for the economy of those regions and for 
reasons of trade and development policy in Pakistan and India. 
The Agreement for commercial, economic and development cooperation 
between the European Economic Community and the 
Islamic Republic of Pakistan expired on 22 April 1991 and is 
automatically renewed each year unless it is denounced by either party 
six months before expiry. 
-%-
The annual renewal of the arrangements for Basmati rice has introduced 
a factor of uncertainty in trade. It is accordingly proposed to extend 
the arrangements for a further five-year period, subject, however, to 
the agreement with the Islamic Republic of Pakistan remaining in force. 
In view of the foregoing, the Commission proposes that the Council 
approve the appended draft Regulation. 
-h~ 
Proposal for a 
Council Regulation (EEC) No 
of 
amending C<Hjnci I 'ftoguletion (EEC) No 3877/86 
of 16 December 1986 
on imports of rice of the long-grain aromatic Basmati variety 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 113 thereof, 
Having regard to the proposal from the Commission, 
Whereas imports of rice of the long-grain aromatic Basmati variety into 
the Community have proceeded satisfactorily and the annual quantity 
provided for has been used up; 
Whereas exports of Basmati rice play a vital role in the economic 
development of the region of production; 
Whereas, for reasons of trade and cooperation policy with regard to 
third countries, the reduction in the levy as provided for in 
Council Regulation (EEC) No 3877/861 should continue without any 
change in the quantity concerned; 
Whereas the Agreement for commercial, economic and development 
cooperation between the European Economic Community and the 
Islamic Republic of Pakistan2 was concluded for a period of five years 
expiring on 22 ApriI 1991, though the Agreement is automatically 
renewed from year to year unless it is denounced by either party six 
months before expiry; 
1 OJ No L 361, 20.12.1986, p.1. 
2 OJ No L 108, 25.4.1986, p.3. 
•-5~-
Whereas, in order to prevent annual extensions of the concession from 
creating a climate of uncertainty, Regulation (EEC) No 3877/86 should 
be extended for a further five-year period while making provision for 
an obligation on the Commission to terminate the application of that 
Regulation where the abovementioned Agreement lapses before 
30 June 1996, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 3877/86 is hereby amended as follows: 
1. Article 2 is replaced by the following: 
"Article 2 
Article 1 shall apply to imports of a quantity of Basmati rice 
equivalent to 10 000 tonnes of husked rice per year for the period from 
1 July 1991 to 30 June 1996, provided that a certificate of 
authenticity from the exporting country, recognized by the Community, 
is presented." 
2. Article 4 is amended as follows: 
f In the second paragraph, the date "30 June 1991" is replaced by 
J "30 June 1996"; 
1 
3 The following third paragraph is inserted: 
I "However, if the Agreement for commercial, economic and development 
I 
| cooperation between the European Economic Community and the 
i 
Islamic Republic of Pakistan lapses before that date, the Commission 
shall terminate the application of the arrangements provided for in 
this Regulation with effect on 1 July of the year in question." 
Article 2 
FICHE FINANCIERE b~ 
1^: 
—JH^X— i •• > j— i n »i n i m *mm*mi*tmmn0lm i an miit—tmtmittiui m m**>4* \ _i ».•••»• 
1. LIGNE tUMETAftË : tOO {Hetteurees propres) c*t»m ,« tfio'-tCU 
t. INTITULE ME LA MESURE : 
Modification du règlement (CEE) n' 3877/66 <** Cottseil du 16.12.1966, relatif aux 
Importations de riz aromatique à grains longs de fi variété "basmati" relevant de la 
•ous-poeltlon ex- 10.06 Bl et H du tarif douanier commun. 
3. BASE JURIDIQUE : Traité CEE et notamment l'article 113 
4. OBJECTIFS DE LA MESURE : 
Reconduction de i'accord entre la CEE et la République islamique du Pakistan 
concernant les Importations de riz "basmati" avec un abattement de 25 X du prélèvement 
à I'importât ion. 
5. INCIDENCES FINANCIERES PERIODE DE 
12 MOIS 
Mio ECU EXERCICE EN 
COURS (91) 
Mio ECU EXERCICE 
SUIVANT (92) 
Mio ECU 
5.0 DEPENSES A LA CHARGE 
- DU BUDGET DES CE 
(REST ITUT IONS/1NTERVENTIONS) 
- DES BUDGETS NATIONAUX 
- D'AUTRES SECTEURS 
5.1 RECETTES 
- RESSOURCES PROPRES DES CE 
(PRELEVEMENTS/DROITS DE DOUANE) 
- SUR LE PLAN NATIONAL - 1 Mio ECU 
5.0.1 PREVISIONS DES DEPENSES 
5.1.1 PREVISIONS DES RECETTES 1 Mio ECU 
1996 
p.m 
5.2 MODE DE CALCUL : 
- 0,01 Mio ECU x 360 x 25 % x 1,143 (DT) - - 1 Mio ECU 
6.0 FINANCEMENT POSSIBLE PAR CREDITS INSCRITS AU CHAPITRE CONCERNE DU BUDGET 
EN COURS D'EXECUTION OUI 
6.1 FINANCEMENT POSSIBLE PAI: VIREMENT ENTRE CHAPITRES DU BUDGET EN COURS 
D'EXECUTION 
6.2 NECESSITE D'UN BUDGET SUPPLEMENTAIRE NON 
6.3 CREDITS A INSCRIRE DANS LES BUDGETS FUTURS OUI 
OBSERVATIONS : 
Ji est fait l'hypothèse que ces importations auront tcujourG lieu, avec ou sans réduction 
de prélèvement, en tenant compte que la Communauté ne produit pas cette variété de riz. 
ISSN 0254-1475 
COM(91) 264 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-91-311-EN-C 
ISBN 92-77-74279-8 
Office for Official Publications of the European Communities 
LP2985 Luxembourg