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DOCUMENTS "COM"
COM(74)524
Vol.1974/0089

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)524final
Brussels,19April1974
PROPOSAL TOEA
REGULATION (EEC)OFTHECOUNCIL
amendingRegulation(EEC)No1695/73determiningtowhatextentthe
monetarycompensatory amounts?applicabletobeefandveallayreason
ofthedepreciation ofacurrencymay"behigherthanthechargeon
importsfromthirdcountries .
(submittedtotheCouncilbytheCommission)
COr(74)5?4final

EXPLANATION OPMOTIVES
TheCouncil Regulation (ESC)No1695/73 25June 1973 determined ,by-
derogation from Article 4(a)ofRegulation (EEC)NO974/71»"theextent to
which thecompensatory amounts forbeef andveal resulting from acurrency
depreciation could begreater than theimport duty ongoods from third
countries .This measure had asaneffect theapplication ofthe same compen­
satory amounts tocalves andyoung bovine animals forfattening asthose
applied toother calves and other adult bovines inorder tomaintain the
economic advantage accorded tocalves andyoung bovine animals intended for
fattening before theapplication ofArticle 4(a)ofRegulation (EEC)
No974/71.
Infact thecustoms duty applied tocalves intended forfattening ofless
than 80kgis4$andthat applied toyoung male bovines intended forfattening
is8$although thecustoms duty applied toother calves andother adult bovines
is16fc»
Asaresult ofthedepreciation ofcertain currencies and inparticular ofthe
lire from 13February 1973 theappreciation ofArticle 4(a)ofRegulation
(EEC)No974/71hasconcelled attheadvantage described above *
Therefore this draft regulation hastheintention togive thesame economic
advantage ,in /.retroactive form andondemand oftheinterested party ,during
theperiod 13February 1973 to24June 1973 •
Moreover itisconfirmed that onexports from France andGermany toItaly ,
theoperators intheexporting Member States donotbring theproof ofthe
destination ofthecalves oftheadult bovines since forintracommunity
exchanges theadministrative formalities doriotallow adistinction tobe
made between animals intended forfattening andtheother animals .
Theestimate ofexpenditure tobecharged totheEAGGF isgiven intheAnnex
tothis draft Regulation .

rSGUTiATIOil (E3C)OPTHECOD1IGIL
\
amendingRegulation(EEC)N°1695/73determiningtowhatextentthemonetary
compensatory amountsapplicabletobeefandvealbyreasonofthedepreciation
ofacurrencymaybehigherthanthechargeonimportsfromthirdcountries
TII3COUNCILOFTHEEUROPEANCOOJNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity;
HavingregardtoCouncilRegulation(EEC)IT0974/71of12Kay1971^"oncertain
measuresofconjun®turalpolicytobetakeninagriculturefollov;ingthe
temporarywideningofthemarginsoffluctuationforthecurrencies ofcertain
MemberStates,aslastamendedbyRegulation(EEC)N°3450/73tandin
particularthesecondsubparagraph ofArticle4(a)(2)thereof;
HavingregardtotheproposalfromtheCommission ;
"WhereasCouncilRegulation(EEC)N°1695/73of25June1973^determiningto
whatextentthemonetarycompensatory amountsapplicabletoboefandvealby
reasonofthedepreciation ofacurrencymaybehigherthanthechargeon
importsfromthirdcountrios,asamendedbyRegulation(EEC)N°1824/73^"»
limitedfrom25June1973"theapplicationofArticle4(a)(2)ofRegulation
(EEC)N°974/71forcalvesandyoungmalebovineanimalsreferredtoinArticle
11cfCouncilRegulation(EEC)N°8O3/6Gof27June1968^onthecommon
organization ofthemarketinbeefandveal,aslastamendedbyRegulation
(EEC)N°1P7/736;
Whereasithasbeenconfirmedthattheeconomicreasonsleadingtothe
adoptionofArticlel(l)and(2)ofRegulation (EEC)N°1695/73already
existedtothesameextentduringtheperiodfrom13February1973to24June
1973;
0JN°L106,12May1971.p.1
QJN°L353»22December1973»P»25
30JN°L173,23June1973,p.7
4QJN°L185,7July1973,P.1
^QJN°L148,28Juno1968,p.24
^0JN°L25»30January1973»P»23

Uhoroas,moreover,ithasbeenconfirmedthattheadministrative provisions
donotallowanydifferentiation tobemadeintrade "betweenKemberStates
betweentheanimalsreferredtoinArticle11ofRegulation(SEC)IT0805/68
andothercalvesoradultbovineanimals;whereas,therefore,theprovisions
ofArticlel(l)and(2)byRegulation(EEC)N°1595/73should,onapplication
byaninterestedparty,applyretrospectively from13February1973;
HASADOPTEDTHISREGULATION :
Articlei
ThefollowingrubparagraphisaddedtoArticle2ofRegulation(EEC;
N°1695/73:
"Articlel(l)and(2)shallapply,onapplicationbyaninterestedparty,
tooperationscarriedoutfrom13February1973*"
Article2
ThisRegulationshallenterintoforceonthethirddayfollowingits
publicationintheOfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels, FortheCouncil
ThePresident

ANNEX
Financial impact ofthe proposed measure
Although theproposal ismeant tocover intra-Corumunity trade and trade
with non-aiember countries ,thepattern oftrade issuch that inpractice
only imports into Italy ofthe animals concerned are affected and benefit
from the proposed measure .
The information supplied totheCommission departments indicates that for
theperiod from 13February 1973 to2kJune 1973 thefollowing numbers
were involved :
-Exports from France toItaly :approximately 20000head
-Exports from Germany toItaly :approximately kO000head
Total 60000 head
or 4800metric tons live
weight .
With themonetary compensatory amounts standing at92.00 U.A. permetric
tonlive weight ,theadditional expenditure would besome 44l600U.A.
Asthis expenditure isformonetary compensatory amounts inintra -
Community trade ,itisconsidered ,financially ,asintervention within the
meaning ofArticle 3ofRegulation (EEC )No729/70andcharged toChapter
79 (Article 792 "Monetary compensatory amounts ")oftheBudget ofthe
European Communities .
Chapter 79'1973 Appropriations kQk578000Utilization kOk57?564
(including transfer ofrecently proposed appropriations )
197^Appropriations 363000000
The additional expenditure resulting from theproposed measure represents
0.1% oftheappropriations entered under this chapter and0.3$ ofthe
appropriations entered under Article 792 (163million u.a.). Itshould be
noted that utilization oftheappropriations ofthis Article ismainly
determined bythe extent ofthe float ,inpercentage terras ,oftheMember
States' currencies ,andalso that thepercentages mentioned above arewell
below themargin ofuncertainty which affects financial estimates .Asthe
proposal concerns operations carried out in1973 »themultiannual forecasts
are not affected .