COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 539 final 
Brussels, 5 November 1993 
Proposal for a 
COUNCIL REGULATION (EEC) 
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on special arrangements for imports of maize into Portugal 
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EXPLANATORY MEMORANDUM 
Point 8 of the Memorandum of understanding on certain oil seeds between the 
European Economic Community and the United States of America within the 
framework of the GATT approved by Council Decision 93/355/EEC of 8 June 
1993<1), lays down that the Community shall grant a reduced-tariff quota 
for the import of 500 000 tonnes of maize into Portugal beginning in the 
1993/94 marketing year. The reduced tariff shall be fixed at a rate that 
ensures that the quota is filled. 
To allow the Community's undertaking to be fulfilled, specific arrangements 
for importing maize into Portugal must be introduced. This draft proposal 
for a Council Regulation provides for the introduction of such 
arrangements, retroactive to 1 July 1993. As the understanding was 
concluded pursuant to Article 113 of the Treaty, the arrangements fall 
within the exclusive competence of the Community. 
Included among the import arrangements are a reduced rate of import levy 
and the opening of tendering procedures for reducing the import levy. The 
option of purchasing on the world market by the Portuguese intervention 
organization is also provided for in this draft regulation. 
(1) OJ No L 147, 18.6.1993, p. 25. 
3 
Proposal for a 
Council Regulation (EEC) No 
of 1993 
on special arrangements for imports of maize into Portugal 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Article 113 thereof, 
Having regard to the proposal from the Commission, 
Whereas, pursuant to Council Decision 93/355/EEC of 8 June 1993<1) 
concerning the conclusion of a Memorandum of understanding on certain oil 
seeds between the European Economic Community and the United States of 
America within the framework of the GATT, the community has undertaken, 
beginning in the 1993/94 marketing year, to open a reduced-tariff quota for 
imports into Portugal of 500 000 tonnes of maize; whereas this understanding 
falls within the exclusive competence of the Community; ^ 
Whereas, to ensure that the understanding between the European Economic 
Community and the United states of America is carried out, provision has 
been made to reduce the tariff to a level allowing the quota to be fully 
used; whereas this reduction may be envisaged by applying a reduction of the 
import levy; whereas, however, the imports into Portugal at preferential 
terms may create difficulties for the Community market, particularly in view 
of Council Decision 87/224/EEc(^) concerning the agreement between the 
European Economic Community and the United States of America concerning the 
conclusion of the negotiations under Article XXIV (6) of the General 
Agreement on Tariffs and Trade (GATT); whereas to overcome this difficulty, 
the possibility of restricting the use or processing of these quantities of 
maize in Portugal and the possibility of applying a countervailing duty to 
the processed products exported either to third countries or to the rest of 
the Community should be provided for; 
(1) OJ No L 147, 18.6.1993, p. 25. 
(2) OJ No L 98, 10.4.1987, p.l. 
Whereas the accumulation of benefits provided for, on the one hand, as part 
of the arrangements established by Council Regulation (EEC) No 715/90 of 5 
March 1990(3), as last amended by Commission Regulation (EEC) No 444/92(4) 
and applicable when importing into the Community sorghum wheat and maize 
originating in the African, Caribbean and Pacific States (ACP States) or the 
overseas territories, or on the other hand pursuant to this Regulation is 
such as to create disturbances on the Portuguese cereals market; whereas 
this difficulty can be overcome by fixing a countervailing duty specific to 
the levy applying to maize imported pursuant to this Regulation; ; 
Whereas provisions are required to cover the operations arising from this 
Regulation in accordance with the mechanisms laid down by council Regulation 
(EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural 
policy<5), as last amended by Regulation (EEC) No 204 8/88<6), and by 
Council Regulation (EEC) No 1883/78 of 2 August 1978 laying down general 
rules for the financing of interventions by the European Agricultural 
Guidance and Guarantee Fund, Guarantee Section^7), as last amended by 
Regulation (EEC) No 787/89<8>, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Imports of a maximum quantity of 500 000 tonnes of maize from third 
countries for free circulation in Portugal shall be undertaken in accordance 
with the conditions laid down in the following Articles. 
Article 2 
1. Without prejudice to Article 3, in the case of imports of maize into 
Portugal and within the quantitative limits set down in Article 1, a 
reduction shall be applied to the levy fixed in accordance with Article 
10 of Regulation (EEC) No 1766/92. 
(3) OJ No L 84, 30.3.1990, p. 85. 
(4) OJ No L 52, 27.2.1992, p. 7. 
(5) OJ No L 94, 28.4.1970, p. 3. 
(6) OJ no L 185, 15.7.1988, p. 1. 
(7) OJ No L 216, 5.8.1978, p. 1. 
(8) OJ No L 85, 30.3.1989, p. 1. 
2. The amount of the reduction shall be fixed in accordance with the 
procedure laid down in Article 23 of Regulation (EEC) No 1766/92 at a 
level enabling disturbances on the Portuguese market to be avoided. The 
reduction may also be fixed by a tendering procedure. 
The reduction may be differentiated for imports of maize into Portugal 
under Regulation (EEC) No 715/90. 
3. The reduction shall be applied to imports of maize into Portugal on the 
basis of a licence valid only in that Member state. 
Article 3 
1. With a view to effecting the imports referred to in Article 1, it may be 
decided, under the procedure laid down in Article 23 of Regulation (EEC) 
No 1766/92, that the Portuguese intervention agency shall purchase on the 
world market quantities of maize to be determined and shall place them in 
Portugal under the customs warehousing procedure as provided for in 
Council Regulation (EEC) No 2503/88 on customs warehouses(9) and 
Regulation (EEC) No 2561/90(1°) laying down provisions for the 
implementation thereof. 
2. Quantities purchased pursuant to paragraph 1 shall be put up for-'sale on 
the Portuguese domestic market in accordance with the procedure laid down 
in Article 23 of Regulation (EEC) No 1766/92, on terms that enable market 
disturbances to be avoided. 
3. When the maize is placed in free circulation, an agricultural levy shall 
be levied equal to the average of the levies applicable in Portugal and 
fixed for the cereal concerned during the first twenty-five days of the 
month preceding the date of acceptance of the declaration of entry into 
free circulation, minus the difference between the threshold price and 
the intervention price for the same month. 
Entry into free circulation shall be effected by the Portuguese 
intervention agency. 
When the purchasers of the goods pay the intervention agency, the selling 
price minus the levy shall correspond to revenue from sales within the 
meaning of Annex I of Regulation (EEC) No 3492/9 0(11). 
4. The purchase provided for in paragraph 1 shall rank as an intervention to 
stabilize the agricultural markets within the meaning of Article 1(2)(b) 
of Regulation (EEC) Ho 729/70. 
(9) OJ No L 225, 15.8.1988, p.l. 
(10) OJ No L 246, 10.9.1990, p.l. 
(11) OJ No L 337, 4.12.1990, p. 3. 
5. The payments made by the intervention agency for the purchases provided 
for in paragraph 1 shall be borne by the community as they arise and 
shall be treated in the same way as the expenditure referred to in 
Article 2 of Regulation (EEC) No 1883/78. The Portuguese intervention 
agency shall record the value of the goods purchased at a price of "zero" 
in the account referred to in Article 4 of Regulation (EEC) No 1883/78. 
Article 4 
( At a frequency to be determined, the Commission shall record the quantities 
of maize imported into Portugal from third countries. 
For this purpose the Portuguese authorities shall regularly supply the 
Commission with all necessary information. 
Article 5 
The imports referred to in Article 1 shall be carried out during each 
marketing year. 
Article 6 
Where the markets for maize or products derived therefrom are distdÇbed, a 
countervailing duty may be introduced in accordance with the procedure laid 
down in Article 23 of Regulation (EEC) No 1766/92 for exports of the 
products in question from Portugal or for their consignment to other Member 
States. 
Article 7 
The following shall be adopted in accordance with the procedure laid down in 
Article 23 of Regulation (EEC) No 1766/92: 
the measures needed to ensure, where appropriate, that the cereals for 
which the levy has been reduced are actually processed or used in 
Portugal; such measures may, apart from the lodging of a security, 
provide in particular either for a restriction on the use of the maize 
imported into Portugal pursuant to this Regulation or the application of 
a countervailing duty where it is noted that the Community market in 
maize has been disturbed as a result of the consignment of significant 
quantities of maize from Portugal to other Member States; 
all other detailed rules for implementing this Regulation, and in 
particular those relating to the issue of import licences; such rules may 
stipulate that the licences may be issued only in Portugal, after 
Commission endorsement. 
Article 8 
This Regulation shall enter into force on the day following its publication 
in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in 
all Member States. 
Done at Brussels For the Council 
* 
Financial Statement Date : (FF/93/035) 
H/10/1993 
1. BUDGET HEADING : B2-5160 Expenditure 1003 
Income Î004 APPROPRIATIONS : 2U (LR 94) 
1023.4 
2. TITLE : 
Proposal for a Council Regulation on special arrangements for imports of maize into Portugal 
3. LEGAL BASIS : EEC Treaty, Article 43 in particular 
4. AIMS 
Special arrangements for the import into Portugal of 500 000 tonnes of maize at a reduced 
tariff as provided for in the Memorandum of understanding concluded between the Community 
and the United States of America 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
I - NATIONAL PERIOD OF 12 MONTHS CURRENT FINANCIAL YEAR 
( ECU m ) 
39.8 
39.8 FOLLOWING FINANCIAL YEAR 
( ECU m ) 
32.6 
32.6 
1996 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 16.3 
16.3 1997 
8.4 
8.4 1998 
8.4 
8.4 1999 
8.4 
8.4 
5.2 METHOD OF CALCULATION 
See Annex 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ? 
YES 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ? 
YES 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ? 
NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ? 
COMMENTS YES 
This measure can be financed from within the appropriations provided for in the budget. 
kVMaW 
The importation of 500 000 tonnes of reduced-tariff maize will result in the 
export of an additional 500 000 tonnes of fodder cereals. 
It is presumed that the amount of the levy will be equal to the amount of 
the export refund. 
Levy refunds 
ECU(A)/t 
Quantity 
million tonnes 
Dual rate 
Expenditure and 
own resources 
million ECU 1994 
66 
0.5 
1.207 
39.8 1995 
54 
0.5 
1.207 
32.6 1996 
28 
0.5 
1.207 
16.9 1997 
et seq. 
14 
0.5 
1.207 
8.4 
3 
ISSN 0254-1475 
COM(93) 539 final 
DOCUMENTS 
EN il 03 
Catalogue number : CB-CO-93-576-EN-C 
ISBN 92-77-60629-0 
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