ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)86
Vol.1977/0034

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)86 final .
Brussels ,18March 1977 *
Proposal fora
COUNCIL REGULATION (EEC )
amending Regulations (EEC)No1599/75andNo706/"]6
onthearrangements applicable toagricultural
products andcertain goods resulting from the
processing ofagricultural products originating in
theAfrican ,Caribbean andPacific States orinthe
overseas countries and territories
(presented bytheCommission totheCouncil )
COM(77)86final .

VI/420/77-E
EXPLANATORY M3lORAN T:DUM
1.Theregulationsconcerningprioranddefinitiveapplicationofthe
importregimeregardingagricultural productsandcertaingoodsre­
sultingfromtheprocessingofagricultural productsoriginatingin
theAfrican,CaribbeanandPacificStates(ACP)orinthe"overseas
countriesandterritories"(OCT)laydownthemeasurestoavoidde­
flectionoftradeofproductssubjecttotheapplication oflevies
orvariablecomponentsduringthetimewhenaccessionmonetarycom­
pensatoryamountsareappliedfortradeintheseproductsbetween
theCommunityasoriginallyconstituted andthenewMemberStates.
Theperceptionofaccessioncompensatory amountsupontheproducts
inquestionoriginatingintheACPorOCTis,asarule,likelyto
createdeflectionoftrade.Nonetheless ,forrice,ithasbeenno­
tedthattheconditionforthelevyadvantagegranted,whichconcerns
therespectofacertainlevelofC.I.F.priceforobtainingare­
ducedlevy,whichtogethercometowardsthethresholdprice,ensures
thattheimportersaresubjecttonormalcompetition ,irrespective
oftheimportingMemberState,whenaccountistakenoftheacces­
sion'cbmpensatory amounts.
Under-theseconditionstheCommissionproposestoexcludericefrom
thesaidprovisions ,tobeeffectiveretroactively ,forthefirst
periodofapplicationduringwhichtheseprovisionswereeffectively
inoperation.
2.Financialimplication
Fromafinancialpointofviewtheproposedregulationdoesnotin­
volvesumsotherthanthosealreadynotedintheproposedregula­
tionsconcerningtheregimeapplicabletoagricultural productsand
certaingoodsresultingfromtheprocessingofagricultural products
originatingintheACPandOCT(Doc.COM(76)174final,pageIII
ar.dDoc.CCM(76)31final).

VI/420/77-2
.proposalfora
COUNCILREGULATION (EEC)Nohi
OF
amendingRegulations (EEC)Nosl599/75and706/76on
thearrangements applicabletoagricultural products
andcertaingoodsresultingfromtheprocessingofagricultural
productsoriginatingintheAfrican,CaribbeanandPacificStates
orintheoverseascountriesandterritories
THECOUNCILOFTHEEUROPEANCCKMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommuni­
ty,andinparticularArticles43and113thereof;
HavingregardtotheproposalfromtheCommission ;
HavingregardtotheOpinionoftheEuropeanParliament ;
WhereasCouncilRegulation (EEC)No706/76of30March1976onthear­
rangementsapplicabletoagricultural productsandcertaingoodr.re­
sultingfromtheprocessingofagricultural productsoriginatinginthe
African,CaribbeananaPacificStatesorintheoverseascountriesand
territories(l)providesinparticularforthereductionofimportle­
viesforcertainagricultural products;
Whereassomeoftheseproductsaresubjecttothesystemofaccession
compensatory amountsintradebetweentheCommunityasoriginallycons­
titutedandthenewMemberStates;whereastheapplicationofsuch
amountstoproductsbenefiting fromtheregimeprovidedforbyRegu­
lation(EEC)No7O6/76isinprinciplelikelytoleadtodeflectionof
trade;whereasArticle21,secondparagraph,ofthatRegulationprovides
thatmeasuresmaybetakentopreventsuchdeflection ;
.Whereasnoriskoftradedeflectioncanexistfortheproductslistedin
Article8ofRegulation (EEC)No106/j6;whereasthisisduetothe
provisioninArticle9ofthatRegulation ,wherebythecifexportprice,
)O.J.I7oL85,31.3.1976,p.2
/
••/••

-2- VI/420/77-E
l-
increased "bytheamountofthereducedlevy,mustbeequalto
orgreaterthanthethresholdprice,adjustedifnecessaryforthepro­
ductinquestion,reduced "byacertainamount;whereastheeffectis
thatimportersaresubjecttonormalcompetitionirrespective ofthe
importingMemberState,accountbeingtakenofaccessioncompensatory
amounts;
Whereasthe§econdparagraphofArticle21ofRegulation
7O6/76.isthusnotrelevantasregardstheproductslistedinArticle8of
thatRegulation ;whereasitisthereforenecessarytoamendtheprovisionin
question;
Whereastheconsiderations justoutlinedarealsoapplicableduring
theperiodofapplication oftheregimelaiddownbyCouncilRegu]a-
tion(EEC)Ho1599/75of24June1975on+<hearrangementsapplicable
toagricultural productsandcertaingoodsresultingfromtheproces­
singofagricultural productsoriginatingintheAfrican,Caribbean
andPacificStatesorintheoverseascountriesandterritories (2),
aslastam®ndedbyRegulation (EEC)No405/76(2);whereas,fesaraver,
theregimeresultingfromtheabovementioned Rcdilationneedbe
modifiedretrospectively onlyfortheperiodwhenspecificmeasuresto
avoidtradedeflections wereinoperation,
HASADOPTEDTHISREGULATION :
(EEC)NO706/76isamendedtoreadasfollows:
"However,duringtheperiodofapplication ofaccessioncompensa­
toryamountsintradebetweentheCommunityasoriginallyoonstitutod
andthenev/MemberStates,.measurestoprevent -deflectionsoftrade
for •productsotherthanthouespecifiedinArticle8shallbetakenArticle1
ThesecondparagraphofArticle21ofRegulation
;)O.J.NoL166,28.6.1975,p.67
O.J.IToL50,26.2.1976,p.1/.

-3- VI/420/77-E
inaccordancewith"theprocedurelaiddowninArticle22,ifthisproves
necessary".
Article2
Attherequestofthoseconcerned,theprovisionsofthe
secondsubparagraphofArticle22(l)ofRegulation(SEC)No1599/75in
forceduringtheperiod1July1975to31December1975shallnotapply
totheproductsspecifiedinArticle8ofthatRegulation.
Article3
ThisRegulationehallenterintoforceonthetnirdday
followingitspublicationintheOfficialJournaloftheEuropeanCom­
munities.
ThisRegulationshallbebindinginitsentiretyanddi­
rectlyapplicableinallMemberStates.
Done<lc FortheCouncil,
ThePresident