ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)2150
Vol.1973/0391

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)2130final
Brussels,18December1973
PROPOSAL FORA
REGULATION(EEC)OPTHECOUNCIL
concerning Communityfinancingofexpenditure incurredin
respectofthesupplyofagricultural productsasfoodaid
(submittedtotheCouncilbytheCommission)
COM(73)2150final

üa?jl,AUATO'?Y ?:är;^?.ANiriii.i
1.Oorarm tyexpenditure incurred inrespect of"thesupply ofagriculture !pro­
duct t>naioodaidhajhitherto b«?*?n finfincnd bytheCommunity invarious ways
dapendiryr onthWproducts crtheconditions ofsupply .
a)Dairy products
–inthecaco ofproducts from public intervention stocks ,expenditure
hasbeen financed bytheGuarantee Section oftheEACG.F under Council
Relation (]SC)N°2305/70 ;
–inthecc.ca ofskitr^cd milk powder p'.r^'ir.sod onthemarket ,expenditure
hasteen financed under ChG.pt or90of "JheBudget –"Pood aid
expenditure "-intjee'manner provided byCouncil Regulation (EEC)
K°4-12/72of28February 1972a\2inCouncil Reflation (EC)N°2721/7?
of15Secember 1972 .
b)Forcoreaic ,financing isdivided be.tv.-een FDCGA andchapter £0oft,vr;
general buu /je»callea ""'oodaidexpenditure ",inaccordance with Council
-\7ul?<•ion/h.X')J,°20^2/6$of17October 1969 asamended byCouncil
Regulation (mz)11°1703/7?of3August 1972 .
0)Onthecontrary ,expenditure inrecrect ofsupply ofsugar andofe^
products relates infull tochaot-sr 90,

Itisdesirabletoharmonisetheconditionsofcommunityfinancingcf
expenditure incurredinthesupplyofagricultural products -asfoodaid
cothatallsectorswillbotreatedinasimilarmanner.
2.Moreover,itisdesirable,toobtainaclearerpictureoftheactualcost,
ontheonehandoffoodaid,andontheotherofexpenditurerelatingto
thecommonagricultural policy.*
Forthispurpose,itisproposedtogroliptogether:
a)UnderChapter90oftheBudget"Poodaidandexpenditure "food
aidexpenditureproper,thatis,theworldmarketvalueoftheproduct
expensesincurredinsupplyingproducts,i.e.deliverycostsandany
processingandmanufacturing costs,anddistribution costs.
b)RefundstobemadeasaresultofdifferencesbetweenCommunity
internalpricesandworldmarketpriceswillcontinuetobecharged
againstChapters6and7relatingtotheCuaranteeSectionofthe
EACCF.
Therefundinquestionhereisthatcorresponding totheCommonCustom
Tariffheadingoftherelevantproductwherethedestinationisnot
aparticularone,sincetherefundsfo1"ruchdestinations donot
alwaysreflectthedifferences betweenGonmunityinternalprices ■
andworldmarketprices.
3.Itshouldbenotedthatdeliverieseffectedpursuanttoconventions or
contractsalreadyinforce,havebeencompleted (inthecasesofbuttercil
andeggproducts)orarerearingcompletion (inthecasesofskimmedmilk
poivder,cerealsandsuga/')»Itis*thereforedesirable,toavoidcomplicating
theaccountinginrespectofcurrentexpenditure andcreatingdifficulties
asthenowsystemisputintoeffect,toretainthearrangements already
inforcewheretheoperationsinquestionhavealreadytakenplaceorare
stillbeingcarriedout..Article1thereforeconcernsitselfwithopera-■
tion3carriedoutunderconventions ,agreementsorregulations subsequent
to30November1973.
ItisalsodesirabletoamendRjgulation (EEC)n°2306/70v/ithaviewto
limitingitsprovisions ,inrespectofdairyproductssuppliedasfoodaid,
tothosesuppliedunderCouncilRegulationspreviousto1December1973,
(article4ofthepresentRegulation),

Financialandbudgetaryaspects '
ThisRegulationdoesnotinvolveadditionalexpenditure ;itmerelyreappor­
tionsCommunitybudgetexpenditurebetweenChapters6and7»concerning -the
GuaranteeSectionoftheE.A.<J.G.F.,andChapter90relatingtofoodaid.
OncethisRegulationhasbeenadopted,itwillbenecessarytotransfer
fundsfromtheGuaranteeSectionoftheAgricultural GuidanceandGuarantee
FundtoChapter90-"Foodaidexpenditure",sothatthismodification can
beputintoeffectinthe1974budget.Thenomenclature ofthebudgetshould
beadjustedsimultaneously .

PROPOSAL FORA
REGULATION(EEC)OPTHECOUNCIL
concerning Communityfinancingofexpenditure
incurredinrespectof*thesupplyofK&riculturalproducts
asfoodaid
THECOUNCILOPTHEEUROPEANCOM-rjNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticles43arid205thereof;
HavingregardtotheproposalfromtheCommission ;
HavingregardtotheOpinionoftheEuropeanParliament ;
WhereastheCommunitygrantsfoodaidtodevelopingordisaster-stricken coun­
triesandguaranteesthefinance^
Whereastherulesoperativeatpresentprovidethatthisexpenditureisfinan­
cedinvariouswaysdependingontheproductsandtheconditions ,beingeither
totallychargeabletochapter.90°ftheGeneralBudgetoftheCommunitiescalled
"Foodaidexpenditure "ortotheGuaranteeSectiontheEuropean/gri-
/_•culturalGuidanceandGuaranteeFundorpartiallytoeach;
Whereasinthesecircumstances itisnotpossibletoobtainaclearpicture
ofthecostofthecommonmarketpolicyforthesectorsconcernedorofthe
costofthefoodaidpolicy;furthermoreitcomplicatesthemanagementof
appropriations ,sinceexpenditureissometimeschargedagainsttheGuarantee
SectionoftheE,A.G.G.F.,sometimesagainstChapter90oftheBudgetandsome­
timespartlyagainsteach; ,

whereas itisadvisable toharm onICQ inthe different sectors the conditions
«
ofcommunity financing 1ofexpenditure resulting from thesupply ofagricultu
r
ralproducts asfood aid ,and toalter therules atpresent inoperation "by
derogation from Council Regulation (EEC)N°729/70of21April 1970 onfinan -
?
cing ofthecommon general policy (l)aslact amended byRegulation (EEC)
K°2788/72(2)andparticularly articles 1and3astocharge expenditure
corresponding tothedifference betiveen Community internal prices andworld
*
prices against the E.A.G.G.P.andexpenditure other than that borne bythe
E.A.G.G.P.against Chapter 90.;
Whereas thepresent provisions apply tocrp<?nditure onfood aidsupplied
pursuant toconventions ,agreements orCouncil Regulations adopted after
30November 1973 ;
Whereas amendments .should therefore bemade toCouncil Regulation (EEC)K°
2306/70of10November 1970 onthefinancing ofintervention expenditure
inrespect oftheinternal market inmilk andmilk products (3),asamended
byRegulation (ESC)N°2681/72(4),sothat itwill apply only todeliveries
made inrespect ofconventions oragreements already completed ;
Whereas itisdesirable ,inorder tofacilitate thecarrying outof
Community food aidmeasures ,toinstitute asystem ofadvance payments
forexpenditure coming under Chapter 90of theBudget based onthe
system established forthe E.A.G.G.P. ;
Whereas itisdesirable |hatprovision bemade fortheCommission to
laydown implementing rules ,should need arise ;
HAS ADOPTED THIS REGULATION :
(1)0JK°L94,28April 1970 .p.13
(2)QJN°L29!?.30December 1972 ,P. 1
(3 QJK°L249 ,17November 1970 ,P. 4
(4)0JN°L289 ,27December 1972 ,P.12

Article1
BywayofrierogationfromRegulation (EEC)729/70,expenditureinrespect
ofthesupplyofagricultural productsasfoodaidpursuanttoCouncil
Regulationsadoptedafter30November1973ortoconventionsoragreements
concludedbytheCouncilafterthatdateshallbefinancedbytheCommunity
andshallbochargedinpartagainsttheGuaranteeSectionoftheE.A.C.G.F.
andinpartagainstChapter90-"Food*Aidexpenditure"-ofthe
BudgetoftheEuropeanCommunities .*
Thisexpenditureshallincludethevalueofthemerchandise andtheexpenses
arisingo\itoftheexecutionofthevariousphaseswhicharechargeableto
theCommunitybyreasonoftheprovisionsinrespectoftheaforementioned
supplies,butshallnotincludeadministrative expenses.
Article2
1.TheGuaranteeSectionoftheE.A.G.G.F.shallberesponsibleforexpen­
ditureinrespectofrefundsonexportstothirdcountrieswiththeexcep­
tionofrefundsforcertaindestinations .
2.Thatportionoftheexpenditure envisagedinarticle1whichisnotcovered
bytheproviousparagraphshallbechargedagainstChapter90-"Foodaid
expenditure "-oftheBudgetoftheEuropeanCommunities.
Article3
1.TheMemberStatesshalldesignatetheauthorities ,departments andbodies
empoweredtomakepaymentsinrespectoftheexpenditure definedinthe
presentRegulation.T^'.Mcmbo^Statesshall,shouldthisnotalreadyhave
beendone,informtheCommissionassoonaspossibleofthenatureand
constitutions ofsuchauthorities ,departments andbodies,oftheadministra'
tiveandaccountingrulesunderwhichtheyoperateandshalleachforward
anyreportorpartofareportconcerningsuchexpenditure fromtherele­
vantsxipervisoryauthorities .
2.Forthisexpenditure ,theCommission ,afterconsultation vriththeCommittee
inaccordancewitharticle2ofRegulation(EEC)n°729/70
-shallgrantadvancestotheMemberStatesconcerned,periodically and
ondemandbythem;
–shallaudittheaccountsoftheMemberStatesonthebasisofsupporting
documentsforwardedbythoseMemberStatestotheCorrpis3ion.

4.-
.Arlicir4
Council Regulation (EEC )N°2306 /70of10November 1970 isamended as
follows : •
1.Article 4»paragraph 1,subparagraph i),iscompleted bytheinsertion
following theword "Council "ofthefollowing text :
"adopted before 1December JL973and
2.Article 5?paragraph 1,subparagraph i)iscompleted bytheinsertion
following theword "Council "ofthefollowing text :
"adopted before 1December 1973 and
Article 5
Theprovisions ofarticles 8and9ofRegulation (EEC)N°729/70areappl
cable byanalogy toexpenditure envisaged bythepresent Regulation .
Article 6
Rules fortheimplementation ofthis Regulation shall beadopted ,should
theneed arise ,inaccordance with theprovisions ofArticle 13of
Regulation (EEC)N°729/70.
Article 7
This Regulation shall enter into force onthethird dayfollowing its
publication intheOfficial Journal oftheEuropean Communities .
Itshall have effect asfrom 1December 1973 .
/ •
This Regulation shall bebinding initsentirety anddirectly applicable
inall Kember States .
Done atBrussels
\
For the Council
ThePresident ,