ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)62
Vol.1978/0022

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)62 final
Brussels,13February1978
Proposalfora
COUNCILREGULATION (EEC)
amendingRegulation (EEC)No1418/76onthe
commonorganization ofthemarketinrice
(submittedtotheCouncilbytheCommission )
COM(78)62final

EXPLANATORY MEKORANDtJM
1.Pursuant tothefirst subparagraph ofArticle 227 (2)oftheEECTreaty ,
thecommon organisation ofthe market inrice applies totheFrench
overseas departements ,with theexceptions oftheprovisions relating
totheEuropean Agricultural Guidance and Guarantee Fund .Refunds ana
intervention measures arefinanced byFrance while levies areconsidered
asCommunity own resources and areentered under its Budget .
2.Theoverseas department ofReunion ,having nodomestic rice production
iscompletely dependent onimports These have been asfollows :
mtonnes
'
Origin 1975!
1976 1977 (sixmonth )
Italy 24.518 3.970
France 1
Non–member countries 19.475 52.901 15.400
Total 43.993 56.571 15.401
Among themain suppliers areAsian countries suoh asThailand and
Pakistan .
3.Rice forms theprincipal foodstuff oftheleast "favoured categories ofthe
population ofReunion .Percapita consumption is110kilograms perannum
compared with 3kilograms perannum intheCommunity with the result
that theeffect oflevies weighs considerably more heavily onthefamily '
budget oftheinhabitants ofReunion .
4«Rice isimported into Reunion almost exclusively intheform oflong-grained
husked rice .In1976/77i-*10average levy forthis category ofrice was
138.25 units ofaccount pertonne andduring thefirst five months ofthe
1977/78marketing year 99*75 units ofaccount pertonne .Theworld market
prices recorded atRotterdam ,foruncorrected quality ,was 215.35
•.. and245.64 units ofaccount pertonne respectively for
the same periods .
5.Toimprove itssupply situation itisproposed that import levies should
nolonger beapplied torice intheoverseas department ofReunion ,this
measure being limited however tothe level ofthe component forthepro­
tection oftheindustry (11.50 units ofaccount pertonne )formilled and
semi–milled rice .Forthesake ofequality ,rice from theCommunity should
enjoy thesame advantage .Itistherefore necessary ,tosubsidize Community

-2
suppliestoReunion.Sothatthissubsidymaybefinancedbythe
EuropeanAgricultural andGuidanceandGuaranteeFunditisproposed
thattheprovisionsconcerningtheGuaranteeSectionoftheEAGGP
shouldalsoapplytothesaidDepartmentinrespectofriceproducts.

COUNCILREGULATION (EEC)
amendingRegulation (EEC)No1416/76onthecommonorganisationofthe
marketinrice
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticles43and227thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament
WhereaspursuanttothefirstsubparagraphofArticle227(2)oftheEEC
Treaty,thecommonorganisation ofthemarketinriceappliestothe
Frenchoverseasdepartments ;whereasimportleviesareconsideredasown
resourcesoftheCommunity;
WhereasnoriceiscultivatedintheoverseasdepartmentofReunion;whereas
thisdepartmentisthereforecompletelydependentonimports;
Whereasriceconstitutes thebasicfoodstuffoftheleastfavouredcategories
ofthepopulationofReunion;whereaspercapitaconsumption considerably exceeds
thatoftheCommunity;whereasthesupplypositionshouldbeimprovedbythe
introduction ofspecialarrangements forrice forlocalconsumption ;
Whereasimportleviesshouldthereforenolongerbeappliedintheoverseas
departmentofReunion;
Whereasthethresholdpriceformilledriceincludesacomponentforthe
protectionoftheindustrywhichiscurrentlyfixedat11.50unitsofaccount
pertonne;whereasinordertocontinuetoprotecttheindustryestablished
inReunion,alevyequaltotheamountofthisprotection componentshouldbe
maintained .
WhereasriceimportedintoReuniondoesnotonlycomefromnon-membercountries
butalsofromMemberStates;whereas,intheinterestsofequaltreatment
andCommunitypreference,ricefromMemberStatesshouldenjoyanadvantage
corresponding tothataccordedtoricefromnon-mambercountries;
WhereastheexpenditureincurredbytheMemberStatesasaresultoftheir
obligations underCouncilRegulation(EEC)NoI4IB/76of21June1976
2)onthecommonorganisation ofthemarketinrice,asamendedbyRegulation
(EEC)No115B/77tarefinancedbytheGuaranteeSectionoftheEuropean
Agricultural GuidanceandGuaranteeFundpursuanttoArticles2and3of
1)OJNo
2)OJNoL166,25.6.1976,p.l.
3)OJNoL136,2.6.1977,p.13.

Council Regulation (EEC )No729/70of21April 1970 onthefinancing of
thecommon agricultural policy aalast amendad byRegulation (EEC)
No2788/725^;
Whereas ,however ,pursuant toArticle 227 (2)oftheTreaty andinthe
absence ofprovisions tothecontrary adopted bytheCouncil ,such Community
financing does notapply toexpenditure arising outoftheapplication of
Regulation (EEC)No1418/76 French overseas departments ;
Whereas thenon-application ofthelevy torice imported from non-member
countries isonly justified ifrice from Member States enjoje anequivalent
advantage jwhereas this implies asubsidy equal totheamount ofthelevy ;
whereas itisnot justified toexclude such asubsidy from Community financing
whereas itshould consequently beprovided that Article 40(4)oftheTreaty
should apply totheFrench department 'of "Reunion also inrespect ofrice ;
HAS ADOPTED THIS REGULATION :
Article 1
Thefollowing Articles arehereby added toRegulation (EEC)No1418/76
I. "Article 11a
1.This Article shall apply toproducts intended for
consumption intheFrench overseas department ofReunion .
2.Bywayofderogation from Article 11(l)(a ),(b),
(c),(d)and (i),nolevy shall becharged onimports ofproducts
falling within tariffs subheading 10.06 Aand10.06 CintheFrench
overseas department ofReunion .
3.Bywayofderogation from Article 11(1)(e),(f),
(g)and (h),thelevy tobecharged onimports ofproducts falling
within tariff subheading 10.06 BintheFrench overseas department
ofReunion shall beequal tothe amount fortheprotection ofthe
industry referred toinArticle 14(3)*
4*Fordeliveries totheoverseas department ofReunion ofproducts
falling within tariff heading No10.06 originating inMember States
andcovered byoneofthesituations referred toinArticle 9(2)of
theTreaty ,asubsidy shall begranted equal tothelevy applicable
totheproduct concerned onthedayonwhich theproduct isreleased
themarket inReunion .However ,forproducts falling within
tariff subheading No10.06 B,this subsidy shall bereduced bythe
amount fortheprotection oftheindustry referred toinparagraph 3.
4)OJNoL94,28.4.1970 ,p.13.
5)OJNoL295,3O.i2.i972 ,p.1.

5.detailedrulesfortheapplicationofthisArticleshallbe
adoptedinaccordancewiththeprocedurelaiddowninArticle27.
II.Article2<4a
Article40(4)oftheTreatyandtheprovisionsadoptedtoimplement
Article40shallapply,insofarastheGuaranteeSectionofthe
EuropeanAgricultural GuidanceandGuaranteeFundisconcerned,to
theFrenchoverseasdepartmentofReunioninrespectoftheproducts
referredtoinArticle1H#
Article2
ThisRegulationshallenterintoforceonthethirddayfollowingits
publication intheOfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels,
FortheCouncil

FINANCIAL STATEMENT
1003BATE.8.2.78
1.BUDGETLINECONCEHWED I84m.E.U.A.
CREDITSI1mE.U.A,
NMBMHBMMIMMWMMMHMMHHNHMMINNBLLMHMNNMMHWMIIHHHNIMMMMMMMIHHHMBHMMHIMMW
I2.ACTIONIProposalforaCouncilRegulationamendingRegulation
!onthecommonorganisation ofthemarketinrice.(EEC)No1418/76
3.LEGALBASIS.Articles43and227oftheTreaty
4.OBJECTIVESIToimprovethesupplysituationinriceontheIslandofReunion.
5.FINANCIAL CONSEQUENCE
5.0EXPENDITURE
-CHARGEDTOTOEECBUDGET
(HiXXXS/lHTERVENTIONS)
-CHARGEDTONATIONALAEKCNISTR.
-CHARGEDTOOTHERNATIONALCBOUPS
5.1RECEIPTS
-OWNRETiO'JRCi3 OFTHEEC
(LEVIi^/aaacKjqso^fis ^
-NATIONALPERI0D0?12MOETHSCURRENT^JANCIALTEARFOLLOWINGY^ANCIALYEAHj
0.5M.E.U.A.
-5*0M.E.U.A.0.3M.E.U.A.
-3.0M.È.U.A.0.5M.E.U.A.
-4.0M.E.U.A.
I98D
TEAST9SImd1552
TEAfi/!•«#•••«••••••0#5nwu.a.
t••4*^nitEtUtAp5.0.1PLURIANNUALPATTERSOPEXPENDITURE
5.1.1PLURIANNUALPATTERNOFRECEIPTS0*3m.u*a«
–4*0m*E«U«AéÛ#5m.u.a.
–4*0m*EtU«A<
5.2KETHODOFCALCULATION _ , ...„r-ANN+___Estimatedimportsfromnon-membercountries:45.000tonnesperyear.
EstimatedimportsfromCommunitymarket5.000tonnesperyear.
Estimatedrateofthelevynotapplied*9°unitsofaccountpertonne
EstimatedamountofthesubsidyforCommunityricex90unitsofaccountper
tonne
j6.0FINANCINGPOSSIBLEWITHCREDITSINSCRIBEDINRELEVANTCHAPTEROFCURRENTBUDGET7XSES/N0
j6.1FINANCINGPOSSIBLEBYTRANSFERBETWEENCHAPTERSOFCURREKTBUDGET?TES/ifâcX
6.2NECESSITYFOBASUPPLEMENTARY BUDGET?
xxsca/NO|
6.3CREDITSTOBEWRITTENINTOFUTUREBUDGETS?
II||>w–1 –m–––BaawnwawaroBM ––MBW–t–ww iMIIIIIIHW––ixssj&tx .
COKXa.'TS 1