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DOCUMENTS "COM"
COM(74)887
Vol.1974/0135

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)887final
19June1974
PROPOSAL FORA
REGULATION(EEC)OPTHECOUNCIL
amendingRegulation(EEC)Ho974/71oncertainmeasuresof
conjunctural policyto"betakeninagriculture followingthetemporary
wideningofthemarginsoffluctuation
forthecurrencies ofcertainMemberStates
(submittedtotheCouncilbytheCommission)
COM(74)887final

EXPLANATORY MEMORANDUM
I.
1.Article 4a(l)ofCouncil Regulation (EEC)NO974/71oncertain measures of
conjunctural policy tobetaken inagriculture following thetemporary widening
ofthemargins offluctuation for thecurrencies ofcertain Member States provides
that ,where Member States whose currencies have depreciated invalue aretrading
with third countries ,monetary compensatory amounts
(a)granted onimports shall bededucted from theimport charge ,
(b)charged onexports shall bededucted from theexport refund .
2.Theapplication ofArticle 4adoes notraise problems ofanadministrative nature
inrespect ofimports into theMember States ooncerned .Ontheother hand ,this is
notthecase incertain Member States asregards exports# Thelevying ofamounts in
trade with third countries isusually entrusted tonational bodies other than those
which grant export refunds .

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Administrative cooperation which would bepossible inprinciple between these
:twobodies encounters difficulties inpractice owing tothedifferent methods
ofcollecting levies atthefrontier andofgranting refunds .Itispossible
Iontheoneha>d ,pursuant totherules laiddown inRegulation (EEC)no974/71,
!thattheamount tobelevied exceeds therefund which istobegranted andonthe
other hand tnat .thegranting oftherefund often depends onfactors which remain
unknown until after theproduct hasleft theterritory andreached itsdestination
(refunds differentiated according todestination ).Inthese circumstances certain
Member States have difficulty •inapplying thededuction asprovided forinArticle
4a(l)(b)andprefer toseparate thegranting oftherefund from thelevying of
themonetary compensatory amount .
3.However ,such aseparation ,although desired bycertain Member States foradmini­
strative reasons ,hasconsequences going beyond simple administrative .practice .
Theintroduction ofthis seperation will have afinancial effeot .Owing to
existing financial rules this Geperation would result in •
,-anincrease inrefund expenditure ,
-anincrease inthereceipt ofownresources bytheMember States concerned
when themonetary compensatory amount isgranted onexports .Bearing inmind this
increase inexpenditure ,theincrease inreceipts ofownresources oftheMember
States concerned andnotforgetting theeffect ,intheownresources scheme ,of
theconcept ofthe "relative part "andthe10%collection costs itmust be
.concluded that thefinancial effect oftheseparation isaltogether different from
thefinancial effect envisaged byArticle 4a.
•Inview oftheadministrative difficulties asolution must however besought which
.both avoids such difficulties andhasafinancial effect similar tothat resulting
from thepresent version ofArticle 4a.Thus itisproposed that theMember States
concerned should beable todecide not toapply thededuction refered toandto
grant therefund separately from thelevying ofthemonetary compensatory amount .
However ,itisalso proposed that toachieve afinancial effect similar tothat
resulting from Article 4ainitspresent version ,foraccountancy purposes within
theEAGCF ,anaggregated deduction should bemade byapplying thedetailed
.ruleB tobeadopted inaccordance with theprocedure provided forinArticle 13
ofRegulation (EEC)No729/70 (Opinion oftheFund Committee -Commission
Decision ) . -

3
5.Financial effect
Since theobject ofthis proposal istoavoid certain administrative diffi­
culties bymaking use ofanaggregate method which does not interfere in
principle with theaccountancy method provided forinArticle *taofRegula­
tion (EEC )No97V71 thefinancial effect islimited tothemargin of
approximation inherent inthe use ofanaggregate method .
II.
Article 8(3 )ofRegulation (EEC )No.97^/71provides that each month the
Commission must submit tothe Council areport upon theapplication ofthe
same Regulation .Astheperiod ofvalidity ofthis Regulation was extended
itwas established that these reports lost must ofthe importance that
they had offered onthe establishment ofthe system ofcompensatory
amounts .This appears toindicate to indicate the revocation offuture
obligations toreport totheCouncil ;thus itisproposed toabolish the
paragraph inquestion .

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PROPOSAL FOR A
REGULATION (EEC) 'OPTHECOUNCIL
amending Regulation (EEC)NO974/71oncertain measures .
ofconjunctural policy tobetaken inagriculture following
thetemporary widening ofthemargins offluctuation for
the currencies ofcertain Member States
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community and in
particular Articles 28,43,209and235thereof ;
Having regard totheproposal from theCommission ;
Having regard totheOpinion oftheEuropean Parliament ;
Whereas Article 4a(l)ofCouncil Regulation (EEC)No974/71(l)of12May1971 on
certain measures ofconjunctural policy tobetaken inagriculture following the
temporary widening ofthemargins offluctuation forthecurrencies ofcertain
Member States ,aslast amended byRegulation (EEC)No3450/73(2),provides that in
trade with third countries compensatory amounts granted onimports shall bededucted
from theimport charge andthose charged onexports shall bededucted from theexport
refund ;whereas ,incases where atthetime ofexporting norefund isapplicable or
themonetary compensatory amount tobelevied ishigher than therefund ,that part
ofthemonetary compensatory amount which exceeds therefund ,ortheentire monetary
compensatory amount ,asthecase maybe,shall bepayable oncompletion ofcustoms
export formalities inaccordance with Article 6(l)ofCommission Regulation (EEC)
No1463/73(3)of30May1973 laying down detailed rules fortheapplication of
monetary compensatory amounts ,aslast amended byRegulation (EEC)No350/74(4);
Whereas theapplication ofArticle 4a(l)hasproved difficult from anadministrative
point ofview ;whereas even though theimport oharge maygenerally boreduced the
(1)OJNoL106 ,12May1971 ,p.l
(2)OJNoL353 ,22Deoember 1973 ,p.25
(3)OJNoL146 ,4June 1973 ,p.l
(4)OJNoL41,13February 1974 ,p«9

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deduction ofcompensatory amounts from the export refund may prove diffi­
cult where thegranting ofthe refund and the levying ofthecompensatory
amount are not effected bythe same national body and where the exact
amount ofthe refund isunknown atthe time ofcompletion ofcustoms
formalities ;
Whereas this difficulty may beavoided byauthorizing Member States not to
follov ;theprocedure referred toinArticle 4(1)(b)ofRegulation (EEC )
No97^/71forindividual transactions but touseanaggregate method which
does not interfere with the accounting procedure used uptonow }
Whereas Article 8(3)ofRegulation (EEC )No97V71 provides that each
month theCommission must submit tothe Council areport upon the usemade
ofthe same Regulation ;whereas experience makes evident that this obliga­
tion should berevoked ;
HAS ADOPTED THIS REGULATION :
Article 1
Thefollowing paragraphs arehereby added toArticle Ha (1)ofRegulation
(EEC )No97V71 :
"TheMember States concerned mayhowever decide not toapply the provi­
sions ofthepreceding paragraph contained under (b).
Member States availing themselves oftheright referred 'tointhesecond
paragraph shall ,byanaggregate method tobeadopted ,determine the
total amount ofthemonetary compensatory amounts which inaccordance
with thefirst paragraph should have been deducted from therefunds .
Foraccounting purposes intheBudget oftheEuropean Communities
-this total amount shall beconsidered tohave been deducted from the
refunds ,
-any excess over the sum ofthe refunds shall beconsidered tobea
monetary compensatory amount levied onexports .

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Detailed rules for theapplication oft'hepreceding paragraph shall be
adopted inaccordance with the procedure laid down inArticle 13of
theCouncil Regulation (EEC)No729/70^^of21April 1970onthe
financing ofthecommon agricultural policy ,aslast amended byRegu­
lation (EEC)No2788/72(6)".
Article 2
Article 8(3 )ofRegulation (EEC )No.97^/71isdeleted .
Article 3
This Regulation shall enter into force onthe day ofitspublication in
the Official Journal ofthe European Communities . • ■
Article 1shall apply with effect from 1February 1973 -
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels ,
For the Council ,
The President
OJNoL94,28Aprii 1970 ,p.13
OJNoL295 ,30December 1972 ,p.1