ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)25
Vol.1976/0012

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenneetdelaCommunautéeuropéennedel'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiésconformément àl'article5dudit
règlement.
InaccordancewithCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
CommunityandtheEuropeanAtomicEnergyCommunity(OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
27.9.2003,p.1),thisfileisopentothepublic.Wherenecessary,classifieddocumentsinthis
filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung(EG,Euratom)Nr.1700/2003vom22.September2003
(ABI.L243vom27.9.2003,S.1),istdieseDateiderÖffentlichkeitzugänglich.Soweit
erforderlich,wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenanntenVerordnungfreigegeben.

/
COMMISSION OFTHEEUROPEAN COMMUNITIES
COM (76)25final
Brussels ,30January 1976
COUNCIL REGULATION (EEC )
i
onthe crediting ofsecurities ,deposits and guarantees
furnished under the common agricultural policy and
subsequently forfeited
(submitted totheCouncil "bytheCommission )
C0M(76 )25final

EXPLANATORY EEKCRANDUK
Within thecommon agricultural policy ,asignificant number ofsecurities
areprovided forunder thevarious Community .regulations .
Togive some examples ,such securities arerequired upon theissue ofexport
orimport licences with orwithout advance –fixing ;aspart oftendering proce­
dures sincases ofpayment ofadvances onsubsidies where theevent giving rise
toentitlement tothesubsidy hasnotyetoccurred ;inconnection with private
storage contracts ,incases oftheadvance fixing ofaid ,forsales ofgoods
which come from intervention stocks andmust beused forspecific purposes ;in
connection with denaturing operations ,and soon.
Ingeneral theregulations only laydown theprocedure forfurnishing thesecu­
rity ,itsamount ,andtheconditions for -itsrelease ,leaving open th-equestion
ofwhere tocredit thesecurity which isforfeited .Intheabsence ofspecific
provisions concerning thecrediting ofsuch security ,theMember States have
hitherto entered them ,onafinal orprovisional basis ,intheir national budgets .
Experience has ,however ,shown that theretention ofthesecurity bythe .Member
States isunsatisfactory .Infact ,asecurity isforfeited when theoperator
fails tomeet hiscommitments .Thelatter are ,however ,thecorollary ofthefinan­
cial benefits hehasreceived from thefunds oftheEAGGP .Asaresult ,inthis
case theEAGGP isfinancially disadvantaged ,andthis should bemade good by ^
crediting totheEAGGP thesecurity which wasdesigned tohold theoperator to
his .commitments .Inthis vray ,theprinciple according towhich thesecurity goes
totheparty which bears therisk oftheoperation -inparticular thedisadvan­
tages which mayresult iftheconditions forgranting abenefit arenotfulfilled -
issafeguarded .Consequently ,thesecurity which isforfeited should therefore
becredited ,ingeneral ,totheEAGGP 1bydeducting itfrom expenditure ,either
from refunds iftheproposed orcompleted operation constitues trade with non-
member countries ,orfrom intervention expenditure inallother cases .
Itshould belaid down ,however ,that these provisions donotapply totwokinds
ofsecurity ,namely security furnished upon theissue ofexport orimport licences
without advance fixing of ■therate ofrefund ,lev:/orcompensatory amount ,and
security furnished inconnection with tendering procedures with thesole purpose
ofensuring that thetenders submitted aregenuine .Inboth cases ,thedetriment
totneEAGGP does notseem sufficiently substantial forthesecurity forfeited
tobecredited toit,although itcannot bedenied that ,even inthose cases ,

-2-
the3AGGF might have tobear acertain degree ofprejudice owing tothe
.indirect effects ofthefailure ofthe operator tomeet his commitments .These
indirect effects mayappear ,inparticular ,atthemarket management
"level ,orintheform ofcharges relating tothestorage ofintervention products .
Moreover ,since food aidisfinanced under aspecial chapter oftheComrauntiy
Budget ,asecurity forfeited under food aidoperations should bededucted from
theexpenditure arising from such operations .

COUNCIL REGULATION (EEC )
onthecrediting ofsecurities ,deposits andguarantees
furnished under the common agricultural policy and
subsequently forfeited
THE COUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic
Community ,andinparticular Articles 43and209thereof ,
Having regard totheproposal from theCommission ,
Having regard totheOpinion oftheEuropean Parliament ,
Whereas under Community regulations numerous securities arerequired
inconnection with operations relating toagricultural products ;
whereas provision must bemade for thecrediting ofsuch securities
incases where they areforfeited ;
Whereas inmost cases where securities are forfeited ,theEuropean
Guidance andGuarantee Fund (EAGGF )suffers afinancial disadvantage
either because ithas afinanced ameasure and theoperator has
failed tomeet his obligations orbecause such failure bythe
operator subsequently involves the EAGGF inadditional expenditure
because ofthemechanisms oftheagricultural markets ;whereas this
disadvantage should consequently beremaidied bysetting against
EAGGF expenditure anysecurity which isforfeited ;
Whereas ,however ,those securities which areunlikely tocause a
sufficiently substantial financial disadvantage totheEAGGF should
beretained bytheMember States ;
Whereas anysecurity forfeited infood aidoperations should be
deducted from expenditure inthe "food aid expenditure "chapter of
theBudget ;
Whereas itisalso right that anysecurity forfeited aspart ofa
specific operation should bededucted from theexpenditure relating
tothat type ofoperation ;

-2-
Whereas similar rules already exist inone particular sector ,and
are therefore superceded bythe present Regulation ,
HAS ADOPTED THIS REGULATION :
Article 1
1)Subject toparagraph 2hereof ,this Regulation shall apply to
anysecurity ,deposit orguarantee furnished pursuant to
provisions adopted under the common agricultural policy ,
(hereinfaf terreferred toas"security "),and tofractions
thereof .
2)However this Regulation shall notapply toanysecurity furnished
a)inconnection with theissue oflicences without advance
fixing oftherate ofrefund ,levy oraccession compensatory
amount ;or
b)under atendering proceudre forthesole purpose ofensuring
the submission bytenderers ofgenuine tenders .
Article 2
1)Anysecurity referred toinArticle 1(1 )which isforfeited shall
beapplied inreduction ofEAGGF expenditure .
2)However ,anysecurity which isforfeited inrespect offood aid
operations shall beapplied inreduction oftheexpenditure under
theappropriate item ofthe "food aid expenditure "chapter of
the Budget .
Article 3
1)Anysecurity referred toinArticle 1(2)shall bededucted :
a)ifthecompleted orproposed operation inrespect ofwhich
the security was furnished concerns trade with non-member
countries ,from refunds under theappropriate budgetary item ,

-3_
b)inallother cases ,from intervention expenditure under
theappropriate budgetary item .
2)Iftheexpenditure chargeable totheEAGGF issupported by
accounts ,such accounts shall becredited with anysecurity
referred toinArticle 2(1).
Article 4
Article 14ofCouncil Regulation (EEC )No2306/70of10November
1970 onthefinancing ofintervention expenditure inrespect of
thedomestic market inmilk andmilk products ^ishereby
repealed .
Article 5
Detailed rules fortheapplication ofthis Regulation shall be
adopted inaccordance with theprocedure laid down inArticle 13
ofRegulation (EEC)No729/70^2\
Article 6
This Regulation shall apply toanysecurity forfeited with
effect from 1January 1976 .
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States .
Done atBrussels , FortheCouncil
The President
(1)OJNoL249 ,17.11.1970 ,s.4
(2)OJNoL94,28.4.1970 ,s.13

FaR3ATJC5&LGÏÂTEKS2EV2T.íoCae. •
1.12.1975
1.Linsoftha&fctconcerned:Items6,79°ftheBudget'
2.TSiloofthaactionsProposedregulation -oftheCouncilconcerningtheappropriation .
ofsecurities,suretiesorguarantees }undertakenforthepurposes
:ofthecommonagricultural policyandremainingforfeit.
3.tesfs:Articles43and209oftheTreaty.
Objectivesofthaaction:Appropriation ofsecuritiesforfeitedinthecaseofnon­
compliancewithcommunityregulationsconcerning FH10GA,by
reductionoftheexpendituretowhichtheyarerelated.
5.0Reduction .inbudgeted
expenditurennthnr.ssinaSnn8carPEfitKicrci&O()Ifotlodnijexorcisaf]
r 1linInllBIIMHIII'll I.-,r>;rJ-7IIIII1IIBI|||«–^––
I'i5-8K.ua.I-I5–8M.ua.
5.1^tiaatedcostsYear..19.77Year Year29.7ft.
5-8K.ua.5-8ti.ua.5-8l'Lua.
5.2Eathodofcalculation
Byprojectionfromthedatafrom,certainMemberStates.
6.)Possiul'ff-fikgaglr.obycreditswittenintotharelativschapterofthacarrcr.tBudget
6.2PossiblefinancingbytransfcsJi^^cra^napters ofthacurrantBudga'
"Yes"' &
6,3NecessityforasupplementaryBjdgat Ko
6.»waditstobesriitenintofuturebadasts No
Coeaents:Thereductionaffectsarticlesandbudgetaryitemsinvolvingrefund
andagricultural intervention ,andalsofoodaidexpenditure.