ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)553
Vol.1977/0181

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)553final
Brussels,31October1977
Proposalfora
COUNCILREGULATION
amendingRegulation(EEC)No1035/72on
thecommonorganization ofthemarketin
fruitandvegetablesandRegulation(EEC)
No2601/69layingdownspecialmeasures
toencouragetheprocessingofcertain
varietiesoforanges
(submittedtotheCouncilbytheCommission)
COM(77)553final

EXPLANATORY MEMORANDUM
STrBJBCTsProposalforaRegulationamendingRegulation(ESC)No1035/72onthe
commonorganization ofthemarketinfruitandvegetablesandRegulation
(EEC)Mo2601/69layingdownspecialmeasurestoencouragetheprocessing
ofcertainvarietiesoforanges*
CouncilRegulation(EEC)Fa1035/?2of18May1972onthecommonorganization
ofthomarketinfruitandvegetables,aslastamendedbyRegulation(ESC)
No1034/77?doesactfixthedatesofthebeginningandendofthemarketing
yaareorseasonsforproductssubjecttotheintervention systemorforproducts
forwhichthereisareferencepries.
Experienceacquiredinparticular whentherepresentative ratesforthevarious
currencieswereadjustedhasprovedtheneedtofixmarketingyearsorseasons
fortheseproducts®
Withrespecttotablegrapes,thereisconsiderable overproduction whichmayresult
eitherinmassivewithdrawalsorinthemaking:ofwinewhichisthenturned
intoalcoholinundeBirablaquantity.PendingtheresultsthattheCouncil
measurestoremedytheEituationwillnodoubthave,itseemsadvisableto
takestepstoestablishabalancebetweenthepricetheproducerwouldobtainfor
histablegrapesiftheygotointervention andtheirpriceifusedformakingwine.
er•
StJchabalanoeoouldbeachievedbyapplyingconversionfactorsintheoaloulation
ofthewithdrawalprioe,anditisproposedtoamendRegulation(EBC)No1035/72
tothiseffect.
(l)CouncilRegulation(EEC)Noll6$f]6of17
aconversion premiuminthewinesector
(OJNoL135t24.5.1976.p.34)May197"onthegrantingof

W3tlx respect torefsrenca prices forproducts subject tofinancial compensation ,
wader Council Regulation (EEC)NO2511/S9of9December 1969 laying down special
measures forimproving "theproduction andmarked lagofCommunity citrus fruit 9
-thelink that has "been mad© between changes inthebase andpurchase prices ,
changes infinancial compensation andchanges inthereference prices hastended to
©rod® Community preference anditwould seem asweli toremedy thesituation®
Thefixing ofaeingl® countervailing charge where theprices ofagiven product
entering from several non–member countries arebelow thereference price hasled9
inparticular atthebeginning ofthe1977marketing year ,torepeated changes in
thecountervailing charges .Such asituation canonly engender uncertainty and
confusion anditisproposed that thesituation relating toeachprovenance should
betreated separately and,ifappropriate ,thecountervailing charge should b«
fixed atasuitable level foreach oneandtreated separately .,
Itisstipulated inCouncil Regulation (EEC)No2601/69of18December 1969laying
down special measures toencourage theprocessing ofcertain varieties oforanges ,
aslastamended byRegulation (EEC)No2483^5 ,that oneofthefactors tobeused
inoalculing thefinancial compensation tobegranted toprocessors is"theprice
processors usually payfortheir supplies ,siichaprice being calculated onthe
basis oftheprices prevailing inth®industry during thethree marketing years
preceding theoneforwhich thatcompensation isgranted ",th®other factor
being the '"minimum price "tobepaidbyprocessors fortheoranges which theybuy®
./<

Initallyreservedfortonnageiaexcess?ofth<3averagequantitiesprocessedduring
thethreemarketingyearspreceding1969/709thegrantingoffinancialcompensation
wasextendedin1975toallthequantitiesofproductsprocessedtoyprocessors®
Sincethen,theconceptof"priceprocessorsusuallypayfortheirsupplies"has
tendedto"becomemergedwiththatof"minimumprice",whichwouldhavetheeffect,
onthebasisofth©presenttext,ofreducingthefinancialcompensationtoa
derisoryamount#
InordertoensurethatRegulation(ESC)No2601/69retainsitspracticaleffects,
theoritariaforfixingthefinanolalcompensation should "bealtered.

PROPOSAL FORACOUNCIL REGULATION
amending Regulation (EEC)No1035A2 t-beeommon .organization ofthemarket
infruit andvegetables andRegulation (EEC)No2601/69laying downspecial
measures toencourage theprocessing ofcertain varieties oforanges
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing the
European Economic Community ,andinparticular
As"fciole 43thereof ,
Having regard totheproposal from theCommission ,
Having regard totheopinion oftheEuropean
Parliament ,
Whereas Council Regulation (EEC)NO1035/72of18May1972onthecommon organi­
zation ofthemarket infruit andvegetables 1,aslastamended byRegulation
(EEC)No1034/772,doesnotfixthedates ofthebeginning andendofthemarke~
tingyears orseasons forfresh fruit andvegetables produoed intheCommunity j
whereas experience hasshown theneed ,inparticular when therepresentative
rates forthevarious currencies areadjusted ,tofixmarketing periods atleast
forproducts subject totheintervention system orforwhich there arereferenoe
prioes j
Whereas Article 16(4)ofRegulation (EEC)No1035/72provides that theprice
atwhich theproducts subject tointervention arebought inpursuant to
Article 19shall beoaloulated byapplying conversion factors tothebuying~in
price ?whereas ,withrespect tograpes ,there arestructural surpluses ofthis
product forwhich corrective measures havealready beentaken ;whereas ,pending
theresults ofthese measures 9conversion factors should beapplied tothe
buying-in price tomaintain abalance between theintervention price fortable
grapes andtheprice obtained byth®producer forthat s&ra®product whenintended
forwine -making s
1)OJNoL118,20,5.1972 ,p«1
2)OJNoL125s 19.5*1977 »P.1

2.
Whereas Article 23ofRegulation (EEC)No1035 /72lays down thecriteria forfixing
reference prices ;whereas inthecase of"products qualifying Tinder the system of
financial compensation provided forinCouncil Regulation (EEC)No2511/69of
9December 1969laying down speoial measures forimproving theproduction and
marketing ofCommunity citrus fruit aslast amended "byRegulation (EEC)
(2)No1034/77 1reference prices arefixed atthesame level asfortheprevious
marketing year ,andmaybeadjusted byapercentage not exceeding thedif­
ference between thepercentage change inthebase andpurchase prioes andthe
percentage change infinancial compensation compared with theprevious marketing
year ;whereas thewayinwhioh thesystem hasbeen applied haseroded Community
preference fortheproducts oonoerned ;whereas this situation should be
remedied bymeasures providing foranappropriate inorease inreferenoe prices ,
account being taken oftheinorease infinancial compensation ;
(1)OJNoL318,18.12.1969 /p.1
(2)OJNoL125 ,19.5.1977 ,P.1
/.

WhereasArticle25ofRegulation(EEC)No1035/72providesthat*&3reitwould
beappropriatetoapplyacountervailingchargeinrespectofanumberof
exportingcountriesforthesa®@productandthesaneperiodjasinglecharge
shallbeappliedinrespectofthosecountriesunlesstheentrypricesforone
ormoreofthosecountriesareabnormallylowinrelationtoentryprices
recordedfortheotherexportingcountryorcountriesconcerned;whereasrecent
experiencehasshownthatapplicationoftheseprovisionsresultsinrepeated
adjustments .tothecountervailing charge^causinguncertaintyamong
tradersswhereasthis >oouldbepreventedifthesituationofeach
exportingcountryweretreatedseparately!whereas9appropriatemeasuresshould9
therefore-beprovidedforj
WhereasCouncilRegulation(EEC)No2601/69of18December1969layingdown
specialmeasurestoencouragetheprocessingofoertainvarietiesoforanges,
aslastamendedbyRegulation(EEC)No2483/T22,laysdownthecriteriaonthe
basisofwhichthefinancialcompensationgrantedtoprocessorsisfixed;
whereasoneofthesecriteriaistheprio©whichprocessorsusuallypayfortheir
supplies,whichiscalculatedonthebasisofthepricesprevailinginthe
industryduringthethreemarketingyearsprecedingtheoneforwhichfinancial
compensationisgranted|whereas,followingtheextensionofthegrantingof
financialcompensationtoincludeallquantitiesoforangesboughtbytheindustry,
thepricesprevailingintheindustryaretendingtobecomeidenticaltothe
minimumprice|whereasnewcriteriashouldthereforebelaiddownforfixingthe
financialcompensation !whereasthesecriteriashouldestablishadirectrelation­
shipbetweenthemovementofth®minimumpriceandchangesintheproportionof
thatpricewhiohispayablebytheprocessor,
HASADOPTEDTHISREGULATION t
Article 1
Thefollowingparagraph3isaddedtoArticle1ofRegulation(EEC)
No1035A21
M3„ThemarketingyearsorseasonsshallbeasfollowsS
–fortomatoesandcucumbers,from1Januaryto31December,
–forcherries,from1Aprilto30September,
–forpeaches,from1Mayto31October,
–forcauliflowersandgrapes^from1Mayto30Aprilofthefollowingyear,
–forplums,from1Juneto31October,
–forpearsandlemons,from1Juneto31Mayofthefollowingyear,
(1)OJNoL324,27.12,1969 »P®21
(2)OJNoL254»1«10.1975,P*5

4
–forapples ,from 1July "to30June ofthefollowing year ,
–fororanges ,from 1October to30June ofthefollowing year ,
–formandarine (inoluding tangerines andsatstunas ),Clementines ,wilkings and
other similar citrus hybrids ,from 1November to30April ofthefollowing
year .:„
Fortheother produots ,themarketing years orseasons shall be
determined ,ifneoessary ,inaooordanoe with theprooedure laid down inArticle 33.*
Article 2
Thethird subparagraph ofArtiole 16(1 )ofRegulation (EEC)No1035/72
isamended toread asfollows t
"Indetermining theperiod forwhich these prioes aretoapply ,slaok market pe­
riods atthebeginning andattheendofthemarketing year shall bebedisregarded'
Article 3
Thefollowing subparagraph isadded after theseoond subparagraph of
Article 16(4)ofRegulation (EEC)NO1035A2 *
"With respeot totable grapes ,theconversion faotors shall besofixed asto
maintain abalanoe between theprice atwhioh theproduct isbought inunder .
Artiole 19and .theprioe obtained forgrapes produced with aview tothe
obligatory distillation ofwine made from table grapes ***

Article 4
Article 23(2)ofRegulation (EEC)Ho1035/72i»tended toreadasfollows
"2.Reference prices shall "befixed *
_onthebasis ofthearithmetic Beanofproducer prices ineachMember State
plus ,withrespect toproducts subject totheSystem offinancial ccmpei*-
sation provided forinArticle 8ofHegulation (EEC)Ho2511/69.«>•
amount defined inparagraph 4,
.account being taken oftheaverage changes inthebaseandpurchase prices .
However ,ifapplication oftheabove criteria toproduct ,subject to
thesystem offinancial cessation provided forinArticle 8ofRegulation (MB)
Ho2511/69results inanincrease inreference prices ,thisincrease shallbe
limited tothedifference between theamount oftheincrease arising fromappli­
cation ofthesaidcriteria andtheamount oftheinorease infinancial compensat­
ioncompared withtheprevious marketing year."
Article 5
1.Paragraph 2ofArticles 25and25aofRegulation (BSC)*Fo1035/72isdeleted .
Paragraph 3ofthese Articles -becomes paragraph 2.
2.Thefirst subparagraph ofArticle 26(1)ofRegulation (EEC)HO1035/72is
amended toread asfollows t
-Where ,after thecharge introduced under Article 25hascomeintoeffect ,
there arechanges intheitems usedtocalculate it,saohchanges shall
notbetaken intoaccount unless anduntil thejrresult inachange over
three successive market daysofmorethan 1unitofaccount inthesaid
chargea ™
•Λ

Article6
Article3(1)ofRegulation(EEC)No2601/69isamendedtoreadasfollowsl
"1.MemberStatesshallgrantfinancialcompensation tothoseprocessors who
haveconcludedcontractsinaccordancewiththeprovisionsofArticle2*
Thefinanoialcompensation shallbefixedsothatthedifferencebetween
theminimumpriceandthefinancialcompensation doesnotvaryinrelationtothat
recordedforthepreviousmarketingyearbyapercentageexceedingthepercentage
variationintheminimumprice*
Thefinanoialcompensation shallbepaidtothoseconcernedattheir
i
requestassoonasthesupervisoryauthoritiesintheMemberStatewhereprocessing
isoarriedouthaveascertainedthattheproduotsunderoontraothavebeenprocessed.
Theamountofsuchfinanoialcompensation shallbefixedbeforethebeginning
ofeachmarketingyear*"
Artide7
ThisRegulationshallenterintoforoeonthethirddayfollowingits
publicationintheOffioialJournaloftheEuropeanCommunities.
ArtioleAshall,however,forthe1977/78marketingyearapplyonlytothose
referenoeprioes'whichhavenotyet'beenfixedatthedateofentryinto,forceofthis
Regulation *
ThisRegulationshallbebindingini'tsentiretyanddireotlyapplicablein
allMemberStates*
DoneatBrussels
FortheCounoil
ThePresident

-r"TJ.-NRR''J:■'i»:..SVJJI ^
|loBUr/U/TLIN5GOHCfcTCJEP3
*fV2?/rΓ:rj.,s^d/rù/7?
Chnpt-er'101Chapter68,item5813J
*'^TopolalforaCouncilReflationamendingBeg.(EEC)Ko1035/72ontheco^onorganizationofthemarketin-fruitandvegetablesandReg.(bSu)No2o^./oy
layingdowng^ecial^m^^-aveF !^processingofcertain|varieties
3.LEGALBASIStArticle43oftheTreaty
MKWi■ ; ,
4'<fnt<roductionofdatesforthebeginningandendofthemarketingyearorseason
forcertainproducts;changein.themethodofcalculatingtiiefinancial |
compensationtobegrantedtoprocessor^•oforanges0 l
5.FINANCIALCONSEQUENCE
5.0EXF".IDXTVHE
-CIIARGEDTOTHRECBUDGET
(RiJ-UlJlÆ/l'JTEfiVIi'JTIOHS )
«CHAHCEDTONATIONALADtaWISTR.,
–CHAKCEDTOOTHEHNATIONALOROUFS
5.1RECEIPTS
–ownrkiouiwïsoptüeec
(LEVIES/CUiJTOWlDUTIES)
-NATIONAL. _ „,
FOfcMARKETXWÖTSARISUïfREfJ?FZHAHCZAJ»TEAJR I
MJLUUUMSRSnegligible
negligibleJLjlLL
negligible
negligiblefcllow.noki,'ja.'jcx..lran
negligible ■j
negligible 4
TEAS
5.0.1PLURIA-VNUAti PATTERNOFEXPENDITURE
5.1.1PLURIANNUAI .PATTERNOFRECEIPTSYEAK TSAR
Negligible .
rww'Hi'iiw
5.2KETHODOPCALCUUTION •i++),.>4*a«/.<al
'fa)intervention 8thechangexnthemethodofcalculatingthefinancial
,.compensationisofa,technicalnaturefendthereforeresults
-inanegligibleChangeinthefinancialeffeots.
(b)conteWailing .charge:thesearealsochangesofatechnicalnature;the
;financialeffects?thereforeremainnegligible.
6.0FINANCINGPOSSIBLEWITHCREDITSINSCRIBESINRELEVANTCHAPTEROFCURRENTBUDGET7 ÏES/ttfc
6.1FINANCINGPOSSIBLEBYTRANSFERBETWEENCHAPTERSOFCURRENTBUDGET?
6.2NECESSITY FORASUPPLEMENTARY BUDGET?.
6.3CRZOITSTOBEWRITTENINTOFUTUREBUDGETS1
COMXQtTS 9TEKS/NOYSS/tfO|