COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 480 final 
Brussels, 08.11.1994 
94/ 0254 (CNS) 
Proposal for a 
COUNCIL- REGULATION (EC) 
on the crediting of securities, deposits and guarantees 
furnished under the common agricultural policy and 
subsequently forfeited, and repealing Regulation (EEC) No 352/78 
(presented by the Commission) 
Explanatory memorandum 
In accordance with Council Regulation (EEC) No 352/78 now in force, 
securities furnished in connection with the issue of export or import 
licences together with those furnished under a tendering procedure to 
ensure the submission of genuine tenders are forfeited for the benefit of 
national budgets. Since they are not used to reduce EAGGF expenditure, 
these securities are not subject to regular verification by the EAGGF of 
the satisfactory application of the rules governing their establishment 
and release. 
The attached draft Regulation aims to remedy this situation by including 
these securities among those which must be forfeited for the benefit of 
the EAGGF. 
At the same time this measure aims to ensure implementation of the 
commitments undertaken by the Community under the GATT on limiting the 
quantity and value of subsidized Community exports. 
Proposal 
' • f «Mr 
Council Regulation (EC) Ho /94 
of 
on the crediting of securities, deposits «red guarantees 
furnished under the common agricultural policy and 
subsequently forfeited, and repealing Regulation (EEC) Ito 352/78 
rm COUNCIL- <^ TOE BM&EM UNION* 
Waving regard to the Treaty establ ishing the European Community, and in 
particular Article 43 thereof. 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Pariiament, 
Whereas CounciI Regulation <I€C) No 352/78 of 20 February 197S*1> 
establishes in most cases where securities required in connection with 
operations relating to agricultural products are forfeited that these 
securities are to be used to reduce EAGGF expenditure; whereas as regards, 
in particular, securities furnished in connection with the issue of export 
or import licences and those furnished under a tendering procedure to ensure 
the submission of genuine tenders, provision is made, however, that the 
securities are to be retained by the Member States, assuming that they do 
not cover a risk of financial loss by the EAGGF; 
Whereas this latter assumption has proved to be uncertain in the light of 
experience and of the need for the Commission to ensure strict compliance 
with the conditions laid down governing the furnishing and release of those 
securities as part of the ver if.ication. carried out pursuant to Article 9 of 
Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the 
common agricultural policy*2^, as last amended by Regulation (EEC) No <3); 
whereas in order to ensure the uniform application of those conditions and, 
more especially, to ensure implementation of the commitments undertaken by 
the Community under the GATT on limiting the quantity and value of 
subsidized Community exports, provision should be made for those securities 
(1) 0J No L 50, 20.2.1978, p. 1 
(2) OJ No L 94, 21.4.1970, p. 13 
(3) 0J No L ... 
to be included among those which must be forfeited for the benefit of the 
EAGGF; 
Whereas, in the interest of clarity, Regulation (EEC) No 352/78 should be 
replaced in its entirety, 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. Any security, deposit or guarantee furnished and forfeited pursuant to 
provisions adopted under the common agricultural policy, hereinafter 
referred to as 'security', shall be used in its entirety by the paying 
authorities or bodies in the Member States to reduce EAGGF expenditure. 
2. However, any security which is forfeited in respect of food aid 
operations shall be used by the paying authorities or bodies in the 
Member States to reduce the food aid expenditure concerned. 
3. This Regulation shall not apply to any security furnished in order to 
guarantee payment of a duty constituting part of .the Communities' own 
resources as defined in Decision 88/376/EEC, Euratom, where the amount of 
such duty has already been determined pursuant to Article 2(1) of 
Regulation (EEC, Euratom) No 1552/89 and made available to the 
Commission. 
Article 2 
1. The securities referred to in Article 1(1) shall be deducted: 
(a) from the refunds concerned if the completed or proposed operation in 
respect of which the security was furnished concerns trade with 
third countr ies; 
(b) from the intervention expenditure concerned in all other cases. 
2. If the expenditure chargeable to the EAGGF is supported by accounts, such 
accounts shall be credited with any security referred to in Article 1(1). 
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• Article 3 
Detailed rules for the application of this Regulation shaft, where 
necessary, be adopted in accordance with the procedure fa id down in Article 
13 of Regulation CE1C> Me> 729/?©. 
Article 4 
Regulation (EEC) No 352/78 is hereby repeated with effect from t January 
This Regulation shaft enter Into force on the seventh day following its 
publication In the Off Ida I Journal of the European Communities. 
It shall apply to securities forfeited fro» 1 January 1995. 
This Régulât ion shal t be binding In its ent irety and direct ty apoiicahre 
atl Meaber States. 
Done at Brussels» 
. for the Council 
The PFestiiient 
Financial Statement 
1. BUDGET HEADING : Titles B-1. B-2 and B-3 APPROPRIATIONS : ECU 35 593 million 
2. TITLE : 
Proposal for a Council Regulation on the crediting of securities, deposits and guarantees furnished under 
the common agricultural policy and subsequently forfeited, and repealing Regulation (EEC) No 352/78 
3. LEGAL BASIS : Article 43 of the Treaty 
4. AIMS 
To ensure regular verification of the satisfactory application of the rules governing the establishment 
and release TO securities furnished in connection with the issue of export and import licences and those 
furnished under a tendering procedure by including them among htose which must be forfeited for the 
benefit of the EAGGF 
5. FINANCIAL IMPLICATIONS 
5JO EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
- NATIONAL AUTHORITIES 
- OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL PERIOD OF 12 MONTHS 
p.m. CURRENT FINANCIAL YEAR 
( 95 ) 
p.m. FOLLOWING FINANCIAL YEAR 
( 96 ) 
p.m. 
1997 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE p.m. 1998 
p.m. 1999 
p.m. 2000 
p.m. 
5.2 METHOD OF CALCULATION 
B.O CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ? 
YES 
€.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ? 
YES/NO 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ? 
YES/NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ? 
YES/NO 
COMMENTS : 
Up to now the securities in question are forfeited to the national budget. Under this measure they will be 
used to reduce EAGGF expenditure. Figures cannot be given for the resulting drop in EAGGF Guarantee Section 
expenditure. 
BSN 0254-1475 
DOCUMENTS 
J 
ïSBM92-77-83J0i-l 
Office for Officiai Publications of the 
L-2985 Luxembourg European Communities 
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