ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM(79)428
Vol.1979/0151

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)428final.
Brussels.26July1979
Proposalfora
COUNCILREGULATION (EEC)
layingdownthetradearrangements applicabletocertaingoodsresulting
fromtheprocessingofagricultural products
(submittedtotheCouncilbytheCommission )
V]/.v<.V"
COM(79)428final.

EXPLANATORY MEMORANDUM
Regulation(EEC)NO.1059/69laiddownthetradearrangementsapplying
tocertaingoods(e.g.confectionery ,,chocolate,"biscuits,pasta)
manufactured fromcertain "basicagriculturalproducts(e.g.cereals,
sugar,milkproducts).
Thesearrangements provideinparticularthat,onimportsofthesegoods,
achargemust"beleviedconsistingofafixedcomponentfortheprotection
oftheprocessingindustryandavariablecomponenttooffsetanydifferances
"betweenthepricesofthe"basicagricultural productsintheCommunity
andontheworldmarket.
Regulation1059/69^-as"beenamendedseveraltimes.Forreasonsof
claritythetimehascometorepublishit,withtheinclusionofthese
amendments.Atthesametime,itisproposedtointroduceeggsas"basic
products,andtocarryoutageneralrevisionofthetext.
Suchistheaimofthisregulation.

Proposal for a
REGULATION (EEC ) OFTHECOUNCIL
laying down thetrade arrangements applicable tocertain goods
resulting from theprocessing ofagricultural products
THE COUNCIL OPTHE EUROPEAN COMMUNITIES
Having regard totheTreaty establishing theEuropean Economic Community ,
andinparticular Articles 28,92to94,111to113,227and235thereof .
Having regard totheproposal from the Commission }
Having regard totheopinion oftheEuropean Parliament *^;
2Whereas Council Regulation (EEC )No1059 /69 laid down thetrade arrangements
for certain goods resulting from theprocessing ofagricultural products ;
whereas that Regulation provides inparticular that ,onimports ofsuch
goods ,acharge must helevied consisting ofafixed component forthe
protection oftheprocessing industry andavariable component tooffset
anydifference "between theprices oftherelevant agricultural products
inthe Community andontheworld market ;
Whereas theprovisions ofRegulation (EEC)NO1059/69have "been amended
several times ;whereas forreasons ofclarity anewversion ofthat
Regulation should bepublished ;
Whereas ,inaccordance with Article 3(l)ofCouncil Regulation (EEC)No.97/69
of16January 1969 onmeasures to "betaken foruniform application ofthenomen­
clature oftheCommon Customs Tariff 3,asamended byRegulation (EEC)No.280/77^t
theprovisions required forapplying thenomenclature oftheCommon Customs
Tariff totheclassification ofgoods areadopted inaccordance with thepro­
cedure laid down inArticle 3(2)and (3)ofthat Regulation ;whereas methods of
qualitative andquantitative analysis ofgoods andother ,technical provisions
necessary forclassifying goods towhich thetrade arrangements in
question apply cantherefore beadopted inaccordance with that procedure ;
0JNoC
20JNoL141,12.6.1969 ,p.1
30JNoL14,21.1.1969 ,P.1
40JNoL40,11.2.1977 »P.1

Whereas,inaccordancewithArticle11(l)ofCouncilRegulation(EEC)
No804/68^of27June1968onthecommonorganisationofthemarketin
milkandmilkproducts,asamended "byRegulation(EEC)NO1761/7^,aid
isgrantedforskimmedmilkproducedwithintheCommunityandprocessed
intocaseinifsuchmilkandthecaseinmanufactured fromitsatisfycertain
conditionslaiddowninArticle1ofCouncilRegulation(EEC)No987/68^;
whereas,,therefore,theapplicationofthisRegulationtogoodsfalling
withinsubheadings Nos.35.01Aand35.01CoftheCommonCustomsTariff -
shouldbedeferred; –-–
HASADOPTEDTHISREGULATION :
TITLE1
»
GENERALPROVISIONS
Article1 ■'
1.ThisRegulationdeterminesthetradearrangements applicabletocertain
goodsnotcovered "byAnnexIItotheTreaty:
(a)inthemanufactureofwhichoneormoreofthe"basioproductslisted
inArticle2have"beenused,eitherunprocessed orafterprocessing ;
or
(h)which,inaccordancewithArticle3,.areconsideredto"bemanufactured
fromproductsreferredtounder(a),or
(c)whichareclassified'underthesameheadingorsubheadingofthe
CCTasgoodsmentionedundera)orla)*
2.Thegoodsreferredtoinparagraph1(hereinaftercalled"goods")are
listedintheAnnextothisRegulation.
-ÒJNoL148,28.6.1968,p.13
%JNoL204,28.7.1978,p.6
70JNoL169,18.7.1968,p.6

Article2
Thefollowingshall "beconsideredtobe"basicproducts:
CCT
heading
NoDescription ofthebasic
product
Chapter10Cereals
04.02Milkandcream,preserved,
concentrated orsweetened
04.03 Butter
04.05Bird'seggsandeggyolks,
fresh,driedorotherwise
preserved,sweetenedornot
17.01Beetsugarandcanesugarin
solidform
17.03 Molasses
Article3
ForthepurposesofthisRegulation:
(a)goodsmadefrompotatostarch(headingNo,11.08AIV),fromthestarches
ofrootsandtubersfallingwithinheadingNo.07.06(headingNo.11»08AV)
andfromflourandmealfallingwithinheadingNo«11.04CoftheCommon
CustomsTariffshall"beconsideredtobemanufactured frommaize;
(b)goodsmadefromfreshmilk,notconcentratedorsweetenedhavinga
milkfatcontentnotexceeding0.1percent,shallbeconsidered
tobemadefrommilkpowdercomplyingwiththedefinitionoftheGroup
2pilotproductcontainedinAnnexItoCouncilRegulation(EEC)
No823/68of28June1968determiningthegroupsofproductsandthe
8specialprovisionsforcalculatingleviesonmilkandmilkproducts,
9aslastamendedbyRegulation(EEC)NoIOOO/78;"
(c)goodsmadefrommilkorcream,fresh,notconcentratedorsweetened,
havingamilkfatcontentexceeding0.1$shallbeconsideredtobe
madefrommilkpowdercomplyingwiththedefinitionoftheGroup3
pilotproductcontainedinAnnexItoRegulations(EEC)NO823/68.
OJNoL151,30.6.1968,p.3
90JNoL130,18.5.1978,p.3

-4-
Article4
1.TheCouncil,acting "byaqualifiedmajorityonaproposalfromthe
Commission,shalldetermineinrespectofallgoods:
(a)thetypeandcharacteristics ofthe"basicproductsto"beusedwhen
calculatingthevariablecomponentreferredtoinArticle5,
(b)thequantityofeachofthese"basicproductsconsideredtohave
"beenusedintheirmanufacture ,
account "beingtakenoftheCommonCustomsTariffclassification andany
changeswhichmay"bemadeinaccordancewiththerelevantrulesinthe
Treaty.
2.Methodsofqualitativeandquantitativeanalysisofthegoods,and
othertechnicalprovisionsnecessaryforidentifyingthemorfor
determiningtheircomposition ,shall"beadoptedinaccordancewiththe
■procedurelaiddowninArticle3(2)and(3)ofRegulation(EEC)NO97/69.
»
TITLEII
SYSTEMOFTRADE
Article5
1.OnimportationintotheCommunity,allgoodsshall"besubjecttothe
relevantchargeintheCommonCustomsTariffconsistingof:
(a)anadvaloremduty,whichisthefixedcomponent:
("b)avariablecomponent.
Thevariablecomponentshall "bedeterminedinaccordancewithArticle6
and7andisintendedtoreflect,forthequantitiesof"basicproducts
consideredtohave"beenusedinthemanufacture ofthegoods,the
difference "betweenthepricesofthoseproductsintheCommunityandthe
pricesofimportsofthoseproductsfromthirdcountries,whenthetotal
costofthosequantitiesofbasicproductsishigherin.theCommunity.
2.SubjecttoArticle14(3)and(4)1"thelevyingofanycustomsdutyot
chargehavingequivalenteffectotherthanthechargeprovidedforin
paragraph1shallbeprohibited.

-5-
Article6
1.TheCommissionshallfix"theamountofthevariablecomponentforall
goodsforthree-monthly periods "beginningon1February,1May,.1August
and1November.
2.Thevariablecomponentshall"becalculated onthebasisofthedifference,
forthequantityofeach"basicproductto"betakenintoconsideration ,
"between:
(a)theaveragethresholdpriceforeachofthethreemonthsofthe
quarterforwhichthevariablecomponentisfixed;and
("b)theaveragec.i.f.price(excludingspecialc.i.f.prices)orthe
free–at–frontierpriceusedwhenfixingtheleviesoneachofthe
"basicproductsinquestion,calculatedforaperiodconsistingof
thefirsttendaysofthemonthprecedingthequarterforwhichthe
variablecomponentisfixedandthetwomonthsimmediately preceding.
However,foreggs,thevariablecomponentshallbecalculatedin
accordancewith'therulesappliedforcalculatingtheleviescharged
onthoseproductsimportedassuch.
3.Ifnen,pursuanttotheregulations onthecommonorganisation ofmarkets,
aproductionrefundoraidisapplicableinallMemberStatestobasic
productsorassimilatedproductswithinthemeaningofArticle3the
amountofthevariablecomponentshallbecalculated onthebasisof
thepriceresultingfromtheapplication ofthesemeasuresinsteadofthe
averagethresholdpricereferredtoinparagraph2(a).
TheCouncil,actingbyaqualifiedmajorityonaproposalfromthe
Commission ,shalldeterminewhichgoodsaresubjecttotheprovisions
oftheprecedingsubparagraph.
4.Theamountofthevariablecomponentapplicabletogoodsobtainedby
processingseveralbasicproductsshallbethetotalincidenceofthe
pricedifferencesrecordedforeachofthebasic .productsinaccordance
withtheruleslaiddowninparagraph2and3.
5.Thevariablecomponentshallbefixedatzerowhentheamountthereofis
lessthan1EUCper100kilogrammes ofgoods.

Article7
Ifoneofthefactors "tobeusedforcalculating "thevariablecomponent
hasnot"beendeterminedlaythetenthofthemonthprecedingthequarter
forwhichthisvariablecomponentmust"befixed,theCommissionshall
calculatethevariablecomponentonthe"basisofthefactorusedfor
calculatingthevariablecomponentforthecurrentquarterinsteadof
thefactorwhichisnotavailable.
Whenthefactorwhichwasnotavailableisdetermined,theCommission,
mayfixcorrectedvariablecomponentsif,byreasonoftheapplication of
paragraph1,tradeisseriouslydisturbedorisindangerofbeing
seriouslydisturbed.
Article8
WheretheCommonCustomsTarifflaysdownamaximumrateofduty,the
chargeprovidedforinArticle5maynotexceedthismaximum.
Wherethemaximumrateofdutyreferredtointheprecedingsubparagraph
maybechargedonlyunderspecificconditions,theseconditionsshallbe
determinedinaccordancewiththeprocedurelaiddowninArticle3(2)
and(3)ofRegulation(EEC)No97/69*
Wherethemaximumrateofdutyreferredtoinparagraph1includes -an
additionaldutyonvariouskindsofsugar,expressedassucrose(ads),
oronflour(adf),suchadditionaldutyshallbecalculatedonthe
basisof:
(a)thedifference,calculatedinaccordancewiththeruleslaiddown
inArticles6and7»betweentheaveragethesholdpriceandthe
averagec.i.f.price(excludingspecialc.i.f.prices)forthe
vhitesugarorcerealflourtobeused,pursuanttoArticle4(l)(a-),
forcalculatingthevariable.componentapplicabletothegoodsin
question;•
(b)thequantityofwhitesugarorthequantityofflourcorresponding
tothequantityofthecerealsreferredtoin(a),fixedpursuantto
Article4(l)(b),forcalculatingthevariablecomponentapplicable
tothegoodsinquestion.

-7-
3.However ,at "therequest oftheimporter and "byway ofderogation from
paragraph 2(b),theadditional duty shall "becalculated onthebasis
ofthequantity ofsugar (expressed assucrose )orthequantity of
flour corresponding tothe content "byweight ofstarch intheimported
goods .Tothat end ,theimporter shall declare these quantities to
the competent authorities .
4.Each quarter the Commission shall determine :
(a)theamount oftheadditional duties ,calculated inaccordance with
paragraph 2;
(b)theprice differences referred toinparagraph 2(a).
5.For thepurposes ofparagraphs 2,3and 4»100kgofflour shall be
considered tobeequivalent to63.6 kgofstarch or140kgofcereals .
Article 9
*
1.Theamount oftherefund onagricultural products covered byth6
regulations onthecommon organisation ofmarkets ,andexported inthe
form ofgoods ,shall befixed inaccordance with those regulations .
2.Thequantity ofagricultural products covered bytheregulations onthe
common organisation ofmarkets which Member States admit under inward
processing andtherefore donotmake subject tolevies orcharges having an
effect equivalent tocustoms duties ,forthepurpose oforasaresult of
exporting such goods ,shall bedetermined inaccordance with therules
governing inward processing .
3.Thequantity ofgoods which Member States admit tinder inward processing
andtherefore donot make subject tothe charge provided for inArticle 5,
forthepurpose oforasaresult ofexporting other goods ,shall bethat
actually used inthemanufacture ofthelatter .
Article 10
Where pursant toaregulation onthe common organization ofaparticular
market ,levies ,charges orother measures areapplied toexports ofa
basic product ,theCommission maydecide toapply appropriate measures
with regard tocertain goods theexportation ofwhich ,because oftheir
high content ofthat basic product andtheuses towhich they maybeput ,is
likely tohinder the achievement oftheaims oftheagricultural sector
inquestion . . .

TheCommissionshalladoptsuchmeasuresafterconsultingtheMember
Statesandtalcingdueaccountofthespecificinterestsoftheprocessing
industries.
Anymeasuresadopted "bytheCommissionshall"becommunicated withoutdelay
totheCouncil,TheCouncil,acting "byaqualifiedmajority,maytakea
differentdecisionwithinonemonthofthedateofsuchcommunication ,
TITLEIII
PINALPROVISIONS
Article11
Goodsmanufactured orobtainedfromproductswhichdonotfallwithin
eitherofthecategoriesmentionedinArticle9(2)oftheTreatyshall'
A
notheadmittedtofreecirculationwithintheCommunity.
Article12
MemberStatesshallcommunicatetotheCommissiontheinformation necessary
forimplementingthisRegulationasregardsimportation ,exportation and
theproductionofgoods.Theprocedureforthecommunication ofthis
informationshall"befixed"bytheCommissionafterconsultingtheMember
States.
Article13
TheCouncil,actingunanimously onaproposalfromtheCommission,may
adoptspecialprovisionsgoverningtradeingoods"betweenMemberStates
andcertainStates,countriesandterritories ,underaspecialsystem.
Article14
TheCommissionmayadjustthedescription ofthegoodsandthereferences
totheCommonCustomsTariffheadingsandsubheadingsinthisRegulation }
ifsuchadjustmentsareduetoamendmentstotheCommonCustomsTariff
nomenclature .

-9-
Article15
1.TheCouncil,actingbyaqualifiedmajorityonaproposalfromthe
Commission,maytakemeasuresinrespectofanygoodstobringthe
provisionsofthisRegulationintolinewithanytechnical ,amendments
whichmaybemadetotherelevantregulations onagricultural
products,
2,Where,duringanyquarter,athresholdpriceisalteredoraproduction
refundoraidisintroduced,amendedorabolished,theCouncil,acting
byaqualifiedmajorityonaproposalfromtheCommission,maydecide
v;hethertocorrectthevariablecomponentandshalladoptthemeasures
necessarytothatend,
3.TheCouncil,actingbyaqualifiedmajorityonaproposalfromthe
Commission,maytakeappropriate measurestodealwiththepossible
effectontradebetweenMemberStatesandwiththirdcountriesofspecial
measureswhichmaybeadoptedunderthecommonorganisation ofagricultural
marketsasregardsthepricesofcertainbasicproducts,
4,TheCouncil,actingunanimously onaproposalfromtheCommission,
maytakeappropriate measurestodealwithaspecialsituationwhich
mayariseinrespectofcertaingoods.
Theperiodofvalidityoftheseprovisionsshallnot,however,exceed
sixmonths.
Article16
1.From1January1980CouncilRegulation (EEC)No1059/69ishereby
repealed.
2.ReferencesinCommunityinstrumentstoRegulation(EEC)No1059/69orto
anyArticlesthereofshallbetreatedasreferencestothisRegulationor
tothecorresponding Articlesthereof.

Article17
1.ThisRegulationshallenterintoforceonthedayofitspublication in
theOfficialJournaloftheEuropeanCommunities .
2.Thearrangements laiddownbythisRegulationshallapplywitheffect
from1January1980.However,itsapplication tocaseinsfalling
withinsubheading No35.01AoftheCommonCustomsTariffandto
caseinates andothercaseinderivatives fallingwithinsubheading
No35.01CoftheCommonCustomsTariffshallbedeferreduntilthe
Councilhasdetermined theprovisionsforsuchapplication .
DoneatBrussels,
FortheCounciI
ThePresident

-11-
ANNEX
CCT
Heading
NoM"M–«MM «MMMMM MMMIMMMMMM«MMMMMMlMMMl «
Description ofgoods
ex17.04Sugarconfectionery ,notcontainingcocoa,exceptliquorice
extractscontainingmorethan10$byweightofsucrosehut
notcontainingotheraddedsubstances
18.06Chocolateandotherfoodpreparations containingcocoa
19.02Haltextract;preparations offlour,meal,starchormalt
extract,ofakindusedasinfantfoodorfordieteticor■
culinarypurposescontaininglessthan5Qffobyweightofcocoa
19.03Macaroni,spaghettiandsimilarproducts
19.04Tapiocaandsago;tapiocaandsagosubstitutes obtainedfrom
potatoorotherstarches
19.05Preparedfoodsobtainedbytheswellingorroastingof
cerealsorcerealproducts(puffedrice,cornflakesand
similarproducts)
19.07*
Bread,ships'biscuitsandotherordinarybakers'waresnot
containingsugar,honey,eggsfats,cheeseorfruit;
communionwafers,cachetsofakindsuitablefor
pharmaceutical use,sealingwafers,ricepaperandsimilar
products
19.08Pastry,biscuits,cakesandotherfinebakers*wares,whether
ornotcontainingcocoainanyproportion
ex21.02Roastedcoffeesubstitutes ,andextracts,essencesand
concentrates thereofotherthanroastedchicoryandextracts,
essencesandconcentrates thereof
ex21.06Bakers'yeast
ex21.07Foodpreparations notelsewherespecifiedorincluded
containingsugar,milkproducts,cerealsorproductsbased
oncereals,oreggs
ex22.02Lemonade,flavouredspawatersandflavouredaeratedwaters,
andothernon-alcoholic beverages,notincludingfruitand
vegetablejuicesfallingwithinheadingNo20.07
–containingmilkormilkfats
ex29.04D-mannitol(mannitol),D–glucitol(sorbitol)
ex35.01Casein,caseinatesandothercaseinderivatives
35.05Dextrinsanddextringlues;solubleorroastedstarches,
starchglues
ex38.12Preparedglazingsandprepareddressingswithabasisof
amylaceoussubstances
38.19ΤD-glucitol(sorbitol)otherthanthatfallingwithinsubheading
29.04CIII I