COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(89) 541 final 
Brussels, 8 November 1989 
Proposal for a 
COUNCIL REGULATION (EEC) 
laying down derogating provisions as regards storage contracts 
for olive oil in Greece, Spain and Portugal and as regards 
the definition of olive oil Intended for export 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. Article 20d of Regulation No 136/66/EEC provides that where prices on 
the Community market for olive oil are close to the Intervention 
price during a period to be determined, It be decided to permit the 
conclusion of storage contracts. Such contracts may only be 
concluded with recognized producer groups or recognized associations 
within the meaning of Regulation (EEC) No 1360/78. 
In view of the special structural situation In Spain, Portugal and 
Greece, where such groups and associations were not set up, 
derogating measures have been adopted to permit other organizations 
to conclude storage contracts. 
Since then the situation has not changed substantially. In fact, 
owing to the special features of production and marketing structures, 
a limited number of groups have been set up and recognized within the 
meaning of Regulation (EEC) No 1360/78. Consequently, a very small 
number of producers are able to have access to storage contracts In 
those countrles. 
Under these conditions, until such time as the application of the 
abovementloned Regulation produces Its full effects and In order not 
to damage the producers, a derogation should be provided, for two 
additional production years, from Article 20d of Regulation 
No 136/66/EEC by making provision In addition for bodies other than 
those provided for In Regulation (EEC) No 1360/78 to be able to 
conclude storage contracts. 
2. The second indent of Article 35 (3) of Regulation No 136/66/EEC 
provides that the description "pure" can be used until 31 December 
1989 for exports to non-member countries of olive oil as referred to 
in point 3 of the Annex thereto. 
However, until such time as the descriptions defined within the 
framework of International Olive Oil Agreement are adapted and in 
order not to damage Community exporters, the abovementloned 
derogation should be maintained until 31 December 1990. 
2 
Proposal for a 
COUNCIL REGULATION (EEC) 
laying down derogating provisions as regards storage 
contracts for olive oil in Greece, Spain and Portugal and 
as regards the definition of olive oil intended for export 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation No 136/66/EEC of 22 September 1966 on 
the establishment of a common organization of the market In oils and 
fats*1*, as last amended by Regulation (EEC) No 1225/89<2>, and in 
particular Article 36 thereof, 
Having regard to the proposal from the Commission, 
Whereas Article 20d (3) of Regulation No 136/66/EEC provides that where 
prices on the Community market for olive oil are close to the Intervention 
price over a period to be determined, it be may decided to permit the 
conclusion of storage contracts; whereas such contracts may be concluded 
solely with recognized producer groups or recognized associations thereof 
within the meaning of Council Regulation (EEC) No 1360/78*3>, as last 
amended by Regulation (EEC) No 3875/88<4>; 
(1) OJ No L 172, 30.9.1966, p. 3025/66. 
(2) OJ No L 128, 11.5.1989, p. 15. 
(3) OJ No L 166, 23.6.1978, p. 1. 
(4) OJ NO L 346, 15.12.1988, p. 3. 
3 
- 2 
Whereas, In the case of Greece, Spain and Portugal, their special 
structural conditions in recent years have not permitted the setting up of 
a sufficient number of organizations necessary for the conclusion of 
storage contracts within the meaning of Regulation (EEC) No 1360/78; 
whereas at present the situation has not changed significantly; whereas, as 
a consequence, in those Member States a very small number of producers 
would be able to conclude storage contracts; whereas, until such time as 
the application of the abovementioned Regulation in Greece, Spain and 
Portugal achieves its full effects and in order not to prejudice the 
producers in those Member States, a derogation should be laid down for a 
limited period from Article 20d of Regulation No 136/66/EEC by providing, 
in addition, for the possibility of storage contracts to be concluded with 
bodies other than those laid down in Regulation (EEC) No 1360/78; 
Whereas the second indent of Article 35 (3) of Regulation No 136/66/EEC 
provides that the term "pure" may be used until 31 December 1989 for 
exports to third countries of olive oil as referred to In point 3 of the 
Annex thereto; whereas until such time as the terms defined within the 
framework of the International Olive Oil Agreement are amended and In order 
not to prejudice Community exporters, the abovementioned derogation should 
be maintained for a limited period for export to third countries, 
HAS ADOPTED THIS REGULATION: 
4 
- 3 -
Article 1 
By way of derogation from Article 20d (3) of Regulation No 136/66/EEC and 
for the 1989/90 and 1990/91 marketing years, storage contracts for olive 
oil may also be concluded in Greece, Spain and Portugal by recognized 
producers' organizations or recognized associations thereof within the 
meaning of that Regulation, who hold olive oil of Community origin, 
produced by their own members and who have suitable facilities for Its 
storage. 
Article 2 
By way of derogation from the second Indent of Article 35 (3) of Regulation 
No 136/66/EEC and for a period extending to 31 December 1990, the Member 
States may authorize the .use of the expression "pure olive oil" for oil as 
referred to In point 3 of the Annex to that Regulation and Intended for 
export. 
Article 3 
This Regulation may enter Into force on the day of its publication in the 
Official Journal of the European Communities. 
This Regulation shall be binding In its entirety and directly applicable in 
a 11 Member States. 
Done at For the Council 
5 
FINANCIAL STATEMENT 
DATE: 9 October 1989 
1. BUDGET HEADING: 1239 Other Intervention In the 
form of storage APPROPRIATIONS: ECU 15 ml 11 Ion 
(1990 draft budget) 
2. TITLE: Council Regulation laying derogating provisions as regards storage contracts for olive oil in 
Greece, Spain and Portugal and descriptions of olive oil Intended for export. 
3. LEGAL BASIS: Article 36 of Council Regulation No 136/66/EEC 
4. AIMS OF PROJECT: To make possible the application in Greece, Spain and Portugal of any regulations 
authorizing the conclusion of storage contracts and to avoid damage to Connunlty exporters as regards 
descriptions. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/ INTERVENT ION) 
- NATIONAL ADMINISTRATION 
-OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL Period of 12 months 
NIL Current Financial Year 
1989 
NIL Following Financial Year 
1990 
NIL 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 
5.2 METHOD OF CALCULATION: 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES/ND 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
YES/ND 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
YES/ND 
_i 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
YES/ND 
OBSERVATIONS: 
6 
FICHE D'IMPACT SUR LA COMPETITIVITE ET L'EMPLOI 
I. Guelle est La justification principale de la mesure ? 
- Permettre aux producteurs d'huile d'olive en Espagne , au Portugal et en 
Grèce de bénéficier du régime des contrats de stockage ainsi que ce dernier 
existe dans le reste de la Communauté. 
- Permettre aux exportateurs de concurrencer sur un pied d'égalité les exporta­
tions des autres pays producteurs sur les marchés tiers. 
II. Caractéristiques des entreprises concernées. En particulier : 
(a) Y a-t-U un grand nombre de PME ? NON 
(b) Note-t-on des .concentrations dans des régions 
i.éligibles aux aides résionales des Etats membres ? 
OUI 
Inéligibles au Feder ? OUI 
III. Quelles sont les obligations impesées directement aux entreprises ? 
NEANT 
IV. Quelles sent les obligations susceptioies o'être imposées indirectement 
aux entreprises via les autorités locales ? 
NEANT 
V. Y a-t-il.des mesures spéciales pour les PKÏ ? '* Lesquelles ? 
NON 
VI. Quel est l'effet prévisible 
a) sur la compétitivité des entreprises ? 
EFFET POSITIF INDIRECT 
3 sur L ' emploi ? 
EFFET POSITIF INDIRECT 
VII. Les partenaires sociaux ont-ils été ccrsulrés ? CUI Quels sont lz<jrs 
avis ? 
NEANT 
7-

ISSN 0254-1475 
COM(89) 541 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-89-527-EN-C 
ISBN 92-77-54838-X 
Office for Official Publications of the European Communities 
L-2985 Luxembourg