COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(89) 448 final 
Brussels, 9 October 1989 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 966/68 laying down general rules for 
granting aid for skimmed milk and skimmed-milk powder for 
use as feed 
(presented by the Commission) 
&*7V<tff 
EXPLANATORY MEMORANDUM 
The attached proposal for a regulation amends Regulation (EEC) No 986/68 
laying down general rules for granting aid for skimmed milk and skimmed-milk 
powder for use as feed, the second subparagraph of Article 3(1) of which 
provides by way of derogation that Member States consigning skimmed-milk 
powder to another Member State may pay the aid instead of the Member State • 
where the powder is denatured or incorporated in compound feed. 
Since the provision was introduced in June 1976 the factors governing 
operation of the market organization have changed to such an extent that the 
grounds on which it was introduced no longer exist. This is particularly relevant 
as regards the effect of the provision in question on EA6GF expenditure. 
Moreover since the control arrangements are necessarily more 
complicated the scope for fraud is greater, even more 
than in the case of the normal arrangements laid down by Commission Regulation 
(EEC) No 1725/79. 
Until 1987 only Italy made use of this special arrangement but three other 
Member States have since then invoked their right to apply it. The risk of a 
worsening of the situation therefore leads the Commission to propose 
abolishing the provision (second subparagraph of Article 3(1) of Regulation 
(EEC) No 986/68). 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 986/68 laying down general rules for 
granting aid for skimmed milk and skimmed-milk powder for use as feed 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 804/68 of 27 June 1968 on the 
common organization of the market in milk and milk products (1), as last 
amended by Regulation (EEC) No 763/89 (2), and in particular Article 10(2) 
thereof, 
Having regard to the proposal from the Commission, 
Whereas the second subparagraph of Article 3(1) of Council Regulation (EEC) 
No 986/68 (3), as last amended by Regulation (EEC) No 1115/89 (4), provides 
exceptionally that Member States consigning skimmed-milk powder to another 
Member State may pay the aid instead of the Member State in which the 
skimmed-milk powder is denatured or incorporated in compound feed; whereas 
following the development of the market situation this exception should no 
longer be maintained; 
(1) OJ No L 148, 28.6.1968, p. 13. 
(2) OJ No L 84, 29.3.1989, p. 1. 
(3) OJ No L 169, 18.7.1968, p. 4. 
(4) OJ No L 118, 29.4.1989, p. 7. 
- 2 -
HAS ADOPTED THIS REGULATION: 
Article 1 
The second subparagraph of Article 3(1) of Regulation (EEC) No 
986/68 is hereby deleted. 
Article 2 
This Regulation shall enter into force on the day of its publication in the 
Official Journal of the European Communities. 
It shall apply to skimmed-milk powder consigned after 31 December 1989. 
This Regulation shall be binding in its entirety and directly applicable in 
all Member States. 
Done at Brussels, For the Council 
FINANCIAL STATEMENT 
Oat* lo.Q.1989 
1. BUDGET HEADING : '. 2020 A«*oeiAT10*S : ECU 5g0 mi L 11 Of» 
2. TITLE : Proposal for a Council Regulation amending Regulation (EEC) N° 986/68 laying down general 
rules for granting aid for skimmed milk and skimmed milk powder for use as feed 
3. LEGAL BASIS Article 10 (2) of Regulation (EEC) N° 804/68 
4. AIMS OF PROJECT : To syspgp,-) the provisions authorizing the Member States which consign skimmed milk 
powder to another Member State to pay the aid in place of the Member State where the skimmed milk 
powder is denatured or incorporated in compoundfeedingstuffs. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO T^E EC BUOGET 
•(«crumt/ INTERVENTIONS) 
- NATIONAL APNlittSTMTlOH 
5.1 RECEIPTS 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL PERIOD OF 12 MONTHS 
- ECU 42,3 millier] 
(B) CURRENT FINANCIAL YEAR 
< 1989 ? FOLLOWING FINANCIAL TEAR 
0220 2 
- EClUl,Omillion (B) 
1991 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED RECEIPTS ECU 3,3 
million(B) .1992 
- ECU 3,3 
million (B) 1993 1994 
5.2 METHOO OF CALCULATION (1990) 
ECU million (B) 
Impact of change in double rate 
240.000 t x Ecu 600/t x (1,125 - 1,102) x4 1/2 « - 1,2 
Impact of additional payment period 
240.000 t x Ecu 600/t x 1,102 (DR) x 3/12 = - 39,8 
6.0 CAN TH£ PROJECT BE FINANCED FROM APPRO01 ATI ONS ENTEREO IN frt£ RELEVANT CHAPUP OF ;nfc CURRINT CH-JCOE 
TES. 
6.1 CAN THE PROJECT BE FINANCED BT TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ? 
6.2 IS X SUPPLEMENTARY BUDGET 8E NECESSARY 
6.3 WILL FU7J3E 3U0GET APPR08IATIONS BE NECESSARY ? 
OBSERVATIONS ; 
It is assumed that the impact of the measure relates mainly to the 1990 financial year 
and will lead to savings following the change in the average double rate and, in respect only of the 
first 12 months of application, owing to an additional period before payment of the aid in the 
importing Member State, estimated at three months. 

ISSN 0254-1475 
COM (89) 448 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-89-434-EN-C 
ISBN 92-77-53264-5 
Office for Official Publications of the European Communities 
L-2985 Luxembourg