ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)703
Vol.1977/0221

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COMMISSION OPTHEEUROPEAN COMMUNITIES
COM(77)703final.
Brussels,16December1977
,Proposalfora
COUNCILREGULATION (EEC) •
amendingRegulation(EEC)No2727/75on"thecommonorganizationof
themarketincereals
Proposalfora
COUNCILREGULATION(EEC)
amendingRegulation(EEC)No1418/76onthecommonorganizationof
themarketinrice
Proposalfora
COUNCILREGULATION (EEC)
amendingRegulation(EEC)No2742/75onproductionrefundsinthe
cerealsandricesectors
(submittedtotheCouncil "bytheCommission)
COM(77)703final.

EXPLANATORY ISKORAMJUM
Thepurpose ofthese ohree drafts istoreintroduce production refunds for
naizs groats andbroken rice used forbrewing andforquellraehl used in
baking .
There refunds were suppressed forgroats inAugust 1975 andforquellnehl
inAugust 1974 •TheEuropean Court ofJustice hasrecently ruled that such
suppression wascontrary totheprinciples ofequality andhascharged thecom­
petent institutions totake thenecessary steps toremedy thesituation .
Theproposals have been drawn upwith the court 'sruling inmind .
Itisproposed that the rates ofproduction refund formaize used for the
production ofgroats andmeal intended forbrewing ,forbroken rice intended
forbrewing and formaize andwheat used fortheproduction ofquellmehl
intended for baking "should respectively bethe same asthose available
formaize ,wheat orbroken rice used fortheproduction ofstarch .
Theadoption oftheproposed amendment toRegulation (SSC)No2742/75is
dependent ontheadoption bytheCouncil oftheproposed amendments to
Regulations Hos (ESC)2727/75and1418/76which both 'require theOpinion
ofParliament .

Proposal
COUNCILREGULATION (EEC)
amendingRegulation(EEC)No2727/75on"thecommonorganisationofthe
marketincereals
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,and
inparticularArticle43thereof*
HavingregardtotheproposalfromtheCommission ^
Havingregardtothe.OpinionoftheEuropeanParliament ,
WhereasCouncilRegulation(EEC)No2727/75of29October1975on"thecommon
organisation ofthemarketincereals,aslastamended"byRegulation (EEC)No
2)1386/77providesinArticle11foradiscretionary productionrefundfor
certainproductsusedforthemanufactureofstarch,ofpotatostarch,orof
glucosebydirecthydrolysis ;whereasstarchmaybeindirectcompetitionwith
quellmehlusedinbakingorwithmaizegroatsandmealusedinbrewing;
Whereasinitsjudgementsincases117/7^and16/77andincases124/76and
20/771"theCourtofJusticeconsidereditinconsistentwiththeprincipleof
equalitytograntaproductionrefundinfavourofcertainproductsandnotof
otherscompetingforthesameoutlets;whereastheCourtofJusticeheld
thatitisforthecompetentinstitutions responsibleforthecommonagricultural
policytotakethenecessaryaction;
Whereastheintroduction ofproductionrefundsfortheproductsinquestion
constitutesameansofconformingwiththeCourt'sconclusions t
HASADOPTEDTHISREGULATION *
.../
/6O•
1)OJNoL281,1.11.1975,p.1
2)OJNoL158,29.6.1977,p.1

Article 1
Article 11(l)ofRegulation (EEC)No2727/75shall bereplaced "bythe
following :
".1 Aproduction refund may "begranted :
(a)formaize andcommon wheat used intheCommunity forthe
manufacture ofstarch andofquellmehl intended for "baking ;
(b)forpotato starch ;
(c)formaize groats andmeal used intheCommunity forthemanufacture
ofglucose "bydirect hydrolysis ;
(d)formaize used inthemaize industry forthemanufacture ofmaize
groats andmeal (gritz )used "bythe "brewing industry .™
Article 2
This Regulation shall enter into force on1February 1978 .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels t FortheCouncil
The President

Proposal
COUNCILESOULATIOU (EEC)
amendingEegulation(ESC)Ho1418/76onthecommonorganisationofthemarket
inrica
THECOdfCILOFTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,and
inparticularArticle43"thereof,
HavingregardtotheproposalfromtheCommission ^
HavingregardtotheOpinionof"theEuropeanParliament,
IfhereasCouncilEegulation(EEC)STo/77of amendingBe«rulation
(EEC)¥02727/75onthecommonorganizationofthemarketincerealsenables
aproductionrefundtobegrantedonmaize-usedforthemanufactureofgroats
andmealusedinbrewing;
Whereassuchaproductionrefundshouldalso"beavailableforbrokenrice
usedbythebrewingindustryfortheproductionofbeer,soas"togiveit
thesameadvantagesasstarchandmaizegroatsandmeal, .
HASADOPTEDTBISBBOTLATIOH :
Article1
Article9(l)ofCouncilRegulation(EEC)NoL418/76of21June1976onthe
(?)
commonorganisation ofthemarketinrice,isherebyamendedtoreadasfollowsj
1.Aproductionrefundmaybegrantedforbrokenriceused
(a)inthemanufactureofstarch
(b)bythe"brewingindustryfortheproductionofbeer.
Article2
ThisRegulationshallenterintoforceon1February "1970.
ThisRegulationshall"babindinginitsentiretyanddirectlyapplicable *-
allMemberStates.
DoneatBrussels, TbrtheCouncil
ThePresident
1}0.TNoL
2)OJNoL166,.25.6*1976,ptl.

COUNCIL REGULATION (EEC )
amending Regulation (EEC)No2742/7?onproduction refunds inthecereals
and rice sectors
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation (EEC)No2727/75of29October 1975 on
thecommon organisation ofthemarket incereals aslast amended by
Regulation (EEC)No 1386/77 andinparticular Article 11(3)thereof ,
Having regard toCouncil Regulation (EEC)NoI4I8/76of21June 1976 onthe
common organisation ofthemarket inrice aslast amended byRegulation (EEC )
H58/774), particular Article 9(2)thereof ,
Having regard totheproposal from theCommission ,
Whereas ,inview ofthepossibility ofsubstitution inbaking between starch
andquellmehl ,thelevel oftherefund tobegranted onmaize andcommon wheat
used fortheproduction ofquellmehl destined foruse inhuman food should be
such astoachieve abalance between thecost ofsupplying thebakery industry
with starch orquellmehl ;whereas this objective would beachieved byfixing
theproduction refund onmaize andcommon wheat forthemanufacture ofquellmehl
destined foruse inbaking atthesame level asthat fixed inCouncil
Regulation (EEC)No2742/75onproduction refunds inthecereals andrice
5/ ,,« ,. /«««\ -, ^ 6)sectors »aslast amended byRegulation (EEC)No2139/77 ,fortheproduction
ofstarch from maize orcommon wheat ;
Whereas inview ofthepossibility ofsubstitution intheproduction ofbeer
between starch ontheonehand andmaize groats andmeal andbroken rice onthe
other ,the level oftheproduction refund tobegranted onmaize used bythe
maize industry inthemanufacture ofgroats andmeal forusebythebrewing
industry intheproduction ofbeer ,andonbroken rice used forthesame purpose
should besuch astoachieve abalance between the cost ofsupplying thebrewing
industry with either starch ,maize groats andmeal orbroken rice ;whereas this
objective would beachieved byfixing therefund onmaize forthemanufacture
ofgroats andmeal atthe same level astherefund onmaize forthemanufacture
ofstarch and ,also ,byfixing therefund onbroken rice used forbrewing atthe
same level astherefund onbroken rice forthemanufacture ofstarch ,
1)OJHoL281 ,1.11.1975 »P.!•
2)OJNo
3)OJNoL166 ,25.6.1976 ,p.1.
4)OJNo
5)OJNoL281 ,1.11.1975 ,P.57.
6)OJNoL249 ,30.9.1977 ,p.1.

HASADOPTEDTHISREGULATION :
Article1
Article1ofRegulation(EEC)No2742/75isherebyamendedtoread
asfollows:
"Article1
1.MemberStatesshallgrantaproductionrefundonmaizeforthemanufacture
•ofstarchandofquellmehldestinedforuseinthebakeryindustryof17
unitsofaccountpertonne.
2.MemberStatesshallgrantaproductionrefundoncommonwheatforthe
manufactureofstarchandofquellmehldestinedforuseinthebakery
industryof24,29unitsofaccountpertonne.
3.MemberStatesshallgrantaproductionrefundonbrokenriceforthe
manufactureofstarch20,89unitsofaccountpertonne."
Article2
Articles4and-5ofRegulation(EEC)No2742/75shallreadas
follows:
"Article4
1.MemberStatesshallgrantaproductionrefundonmaizegroatsandmealfor
themanufactureofglucoseundersubheading17.02BIIoftheCommonCustoms
Tariff^bytheprocessknownasdirecthydrolysis.Theproductionrefund
pertonneofmaizegroaisandmealsousedshallbe20,91unitsofaccount.
2.MemberStatesshallgrantaproductionrefundof17,00unitsofaccountper
tonneofmaizeusedbythemaizeindustryforthemanufactureofgroatsand
mealusedbythebrewingindustryintheproductionofbeer.
3.MemberStatesshallgrantaproductionrefundof20,89unitsofaccountper
tonneofbrokenriceusedbythebrewingindustryintheproductionofbsar.
Article5
MemberStatesBhalltakeallnecessarymeasurestoensurethattherefunds
referredtoinArticle4relatingtomaizegroatsandmealandtobrokenrice
andinArticle1relatingtoquellmehlshallbelimitedtothequantitiesof
maizegroatsandmeal,brokenriceandquellmehlactuallyusedintheCommunity,
asthecasemaybe,bythebrewingindustryfortheproductionofbeer,bythe
glucoseindustry,orbythebakingindustry."

ThisRegulationshall
ThisRegulationshall
allMemberStates.
DoneatBrussels,enterintoforceon1February1978.
bebindinginitsentiretyanddireotlyapplicable
FortheCouncil

FINANCIAL STATEMENT
DATE.28.11.77
BUDGETLINSCONCKRÎJEDt6012,6110(productionrefunds)•
2.ACTIONIDraftCouncilRegulationamendingRegulation2727/75and1418/76onthe
commonmarketarrangementsforcerealsandriceandRegulation2742/75on
productionrefundsinthecerealsandricesectors.
3.LEGALBASIStju<jgeinentoftheCourtofJusticeof19.10.77andArticle43.
4.objectives:Reintroduction ofproductionrefundsformaizegroatsandcereal
andbrokenrice,usedforbreweryandformaizeandcommonwheat
usedfortheproductionofquellmehl.
5.FINANCIAL COtîSECUU'CE
5.0Exrr:.'DiTu:-iE
-CHARGEDTOTHEECBUDGET
(R13KUI1US/1HTSRVHmONS)
-CHARGEETOKATICNALÀDMINISTR.
–CHARGEDTOOTHERNATIONAL GROUPS
5.1RECEIPTS
-0'.™RESOURCES OFT!!EEC
(î.KViETî/cuaTo;.^DUTIES)
–NATIONALTORTHEKAiiKETIJIC YEAH
5,7mio.u.a.CUiiRIOTFINANCIAL YEAR
LL.
5,7mio.u.a.FOLLOWING FINANCIAL TEAR
}
5,7mio.u.a.
TEAR...AS'UQ
5.0.1PLURIA.VNUALPATTERNOFEXPENDITURE5,7mio.U.a.
5.1.1PLURIANNUALPATTERNOKRECEIPTSYEAR•o•• «
5,7mio.u.a.YEAR
5,7mio.u.a.
5.2METHODOFCALCULATION
Maizeforgroats
Wheatforquellmehl
Maizeforquellmehl
BrokenRice420.000tx17u.a./t.
15.000tx24,29u.a./t
10.000tx17,00u.a./t
50.000tx20,89u.a»/t7,14Mue
0,36Mue
0,17Mue
1,05Mue
8,72Mue-1
6.0FINANCINGPOSSIBLEWITHCREDITSINSCRIBEDINRELEVANTCHAPTEROFCURRENTBUDGCT?
t6.1FINAtiCINUh033IBLE3YTRANSFERB31Via3lCHAFTER3OFCUR.iEMTBUDGET? TE3,.
I6.2MECœ.*iITÏFORASUPPLiûiîï.'TAR YBUDGET?Ϊ&5.,:
ΜΜΜΗΒΜΜΜυΜνι
t>.3CR^OITJTOiioWRITTENINTOFUTUREBUD3STS? Xï^/Ï.O_!
s
i
frmmm–m
COffiŒNTS 1
1)Thereintroduction ofproductionrefundsforgroatswouldleadtosone|substitionofstarch.Consequently ,expenditureonproductionrefunds f
forstarchcouldfall.Theeffectofthisisestimatedatabout3tnio. u.e;I-
thenetincreaseisestimatedat5.7mio.u.a. H
i