COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC89) 425 final 
Brussels, 13 September 1989 
Proposal for a 
COUNCIL REGULATION (EEC) 
laying down general rules for implementing the 
Act of Accession of Spain and Portugal as regards the 
compensation mechanism on imports of fruit and vegetables 
originating in Spain 
(presented by the Commission) 
(J^ 
EXPLANATORY MEMORANDUM 
Article 131 of the Act of Accession of Spain provides that fruit and 
vegetables falling within Regulation (EEC) No 1035/72 are subject to a regime 
of specific transitional arrangements consisting of two phases. Article 152 
provides that during the second phase, which begins on 1 January 1990 and ends 
on 31 December 1995, a compensation mechanism is to be introduced on import 
into the Community of Ten for those fruit and vegetables coming from Spain for 
which a reference price is fixed with regard to third countries. The rules 
governing the mechanism are laid down also. 
The purpose of the attached draft Regulation is to establish general rules for 
applying the mechanism. 
In view of the similarity between the compensation mechanism on importation 
and the reference price arrangements governed by Articles 23 to 27 of 
Regulation (EEC) No 1035/72, the Commission is proposing to incorporate all 
the technical, administrative and procedural provisions of the reference 
prices arrangements, subject to certain specific provisions of Article 152 of 
the Act of Accession. 
-s 
Proposal for a 
COUNCIL REGULATION (EEC) 
laying down general rules for implementing the Act of Accession 
of Spain and Portugal as regards the compensation mechanism 
on imports of fruit and vegetables originating in Spain 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to the Act of Accession of Spain and Portugal,and in particular Article 
89(1) thereof, 
Having regard to the Commission's proposal, 
Whereas Article 152 of the Act of Accession provides that from the beginning 
of the second phase of the transitional period for Spain a compensation mechanism is to 
be introduced on imports into the Community, as constituted on 31 December 
1985, hereinafter referred to as the "Community of Ten", for fruit and vegetables for 
which a reference price is fixed with regard to third countries; 
Whereas among the measures necessary for implementing the mechanism, rules 
should be laid down in particular for recording the producer prices for 
products or varieties representative of the production marketed for the 
purpose of calculating the Community offer price; whereas it should be borne 
in mind that the prices listed concern. products packaged for transportation; 
Whereas for the purpose of determining the Spanish offer price calculated each 
marketing day on the basis of the representative rates recorded, the rates to 
be regarded as such should be defined; whereas in order to obtain a realistic 
overview of the market situation, the rates to be used should relate to a 
significant proportion of the good- presented on the markets; whereas consequently the 
nature of the rates and the quancicy of products to be taken into 
consideration for calculating the Spanish offer price should be specified; 
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Whereas where the offer price of the Spanish product is lower than the 
Community offer price, compensation is to be achieved by levying a corrective 
amount in accordance with Article 152(2)(d) and (e) of the Act of Accession; 
whereas in order to enable the compensation mechanism to operate 
satisfactorily under sound conditions and to-ensure that Spanish products are 
not subject to more stringent arrangements than those applying to products 
originating in third countries, provision should be made for the fixing or 
discontinuance of: a corrective amount to be based on the prices recorded 
for several consecutive market days, and the method to be applied should be 
defined; 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. The Community offer price, referred to in Article 152(2)(a) of the Act of 
Accession, applicable to the whole Community of Ten, shall be fixed for 
each marketing year or for each of the periods into which the year may be 
subdivided on the basis of seasonal price variations. It shall be fixed 
before the beginning of the marketing year. However, for the period from 
1 January 1990 to the end of the 1989/1990 marketing year, it shall be 
fixed before 1 January 1990. 
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2. The producer prices to be used for determining the Community offer price 
shall be those for a home-grown product with defined commercial 
characteristics, recorded on the representative market or markets situated 
in the production areas where prices are lowest, for the products or 
varieties which represent a considerable proportion of production marketed 
for part of the year or throughout the year and which fall within quality 
class I and satisfy specified requirements as regards market preparation. 
When the average of prices recorded on each representative market is being 
calculated, prices which could be considered excessively high or 
excessively low in relation to normal price fluctuations on the market 
shall be disregarded. 
3. The transport costs referred to in Article 152(2)(a) of the Act of 
Accecssion may be calculated on a flat-rate basis. 
Article 2 
For the purpose of calculating the Spanish offer price referred to in Article 152(2) (b) of the Act of Accessions 
the Commission.shall, on thebâsis'of information supplied by .Member 
States or data gathered by the Commission itself, regularly follow, for a 
product with defined commercial characteristics, the trend of average 
prices for products coming from Spain on all the representative markets of 
the Community of Ten for which prices are available, namely the average 
prices on the most representative import markets of the Member States and 
significant prices recorded on other markets for large quantities of those 
products or, if there are no prices on the most representative markets, 
significant prices recorded on other markets for large quantities. 
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The following shall be regarded as representative: 
- the prices of class I products, provided that the quantities of this 
class represent not less than 50% of the total quantity marketed; 
- the prices of class I products, together with, where the products in 
this class represent less than 50% of the total quantity, the prices, 
used as they stand, of class II products in respect of the quantity 
that will cover 50% of the total quantity marketed; 
- the prices, used as they stand, of class II products, in cases where 
there are no class I products, unless a decision is taken to multiply 
them by a conversion factor if, by reason of production conditions in 
Spain, such products have not, because of their quality, been normally or 
traditionally marketed in class I. Where the prices are multiplied by 
a conversion factor, customs duties shall first be deducted. 
Article 3 
Fo the purpose of implementing Article 152(2)(d) and (e) of the Act or 
Accession, the following procedure shall be applied: 
1. If the Spanish offer price remains at least ECU 0 6 below the Community 
offer price for two consecutive market days, a corrective amount shall be 
introduced, save in exceptional circumstances. This amount shall be equal 
to the difference between the Community offer price and the arithmetic 
mean of the last two Spanish offer prices available. 
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2. Where the Spanish offer price recorded during a period of 5 to 7 
consecutive market days is alternatively higher and lower than the 
Community offer price, and where Spanish offer prices higher or lower than 
the Community offer price are recorded during two consecutive market days 
without the provision contained in paragraph 1 being applied, a corrective 
amount shall be introduced, save in exceptional circumstances, in 
derogation from that paragraph and under the conditions laid down below. 
- The corrective amount shall be introduced where three Spanish offer 
prices lower than the Community offer price are recorded and where one 
of the Spanish offer prices is at least ECU 0 6 lower than the 
Community offer price; 
- The corrective amount shall be equal to the difference between the 
Community offer price and the last available Spanish offer price at 
least ECU 0 6 lower than the Community offer price. 
3. The corrective; amount introduced pursuant to paragraphs 1 and 2 shall be 
the same for all Member States of the Community of Ten and shall be levied 
in addition to the customs duties in force. 
4. The corrective amount introduced in accordance with paragraph 1 shall not 
be adjusted unless a change in the factors used in its calculation gives 
rise from the time of its actual application, during three consecutive 
market days, to an adjustment in its amount of more than ECU 0.6. 
A decision to abolish the corrective amount shall be taken where, from the 
time of actual application of that amount, the Spanish offer 
prices for two consecutive market days are at least equal to the Community 
offer price or if there are no prices during six consecutive working 
days. Such decision shall be taken also if the application of the first 
subparagraph results in a corrective amount of zero. 
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5. The corrective amount introduced in accordance with paragraph 2 shall be 
levied during 6 days. 
It shall be abolished prior to the expiry of that period only if: 
- the application of paragraph 1 results in the fixing of a new higher 
corrective amount, or 
- from the time of actual application of the corrective amount the 
Spanish offer prices during three consecutive market days are at least 
equal to the Community offer price. 
Article 4 
1. Detailed rules for the application of this Regulation and the Community 
offer price shall be adopted in accordance with the procedure laid down in 
Article 33 of Council Regulation (E£C) ,No 1035/72 . 
2. A decision to introduce, adjust or abolish the correctfc/e amount shall be 
taken by the Commission. 
Article 5 
This Regulation shall 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 
all Member States. 
Done at Brussels, For the Council 
(1) 0J No L 118, 20.5.1972, p.1. 
S 
FINANCIAL STATEMENT 
DATE 
1. BUDGET HEADING: 1QQ0 APPROPRIATIONS: 
2. TITLE: Determination of the general implementing rules under the Spanish Act 
of Accession relating to the import compensation mechanism in the fruit and 
vegetable sector. 
3. LEGAL BASIS: ArticLes 89(1) and 152of the Spanish Act Qf Accession 
4. AIMS: The measure aims to implement article 152 of the Act of Accession 
relating to the import compensation mechanism 
5. FINANCIAL IMPLICATIONS: 
IMlfMMIMim nmMimifïiiiffiiï (munauniniit uintHfttfliHiua 
Uitiil 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEviES)uiinimm 
— i, HIIIIIII i « 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE PERIOD OF 12 MONTHS 
p.m. CURRENT FINANCIAL YEAR 
C89 ) FOLLOWING FINANCIAL YEAR 
( '90 ) 
p.m. 
5.2 METHOD OF CALCULATION: 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THEN 
CURRENT BUDGET? YES*# 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
YESJWI 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? IHTN0 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/i» 
COMMENTS: 
The introduction of an offer price will have the same effect as would a 
reference price. It may be necessary at some later date to apply a corrective 
amount to imports from Spain into the Community of Ten. 
a 
FICHE D'IMPACT SUR LA COMPETITIVITE ET L'EMPLOI 
I. Quelle est la Justification principale de la assure ? 
Mise en oeuvre de la seconde phase de l'adhésion de l'Espagne dans le 
secteur des fruits et légumes. 
II. Caractéristiques des entreprises concernées 
En parti cul 1er : 
- Y a-t-ll un grand nombre de P.M.E. ? Oui 
- Note t'on des concentrations dans des régions : Oui 
- AHglbles aux aides régionales des E.M. ? 
- éliglbles au Feder ? 
III. Quelles sont les obligations i«posées directement aux entreprises ? 
Néant 
IV. Quelles sont les obligations susceptibles d'être I«posées 
Indirectement aux entreprises via les autorités locales ? 
Néant 
V. Y a-t-ll des mesures spéciales pour les PME ? Aucune 
- lesquelles ? 
VI. Quel est l'effet prévisible ? 
- sur la compétitivité des entreprises ? Néant 
- sur l'emploi ? Néant 
VII. Les partenaires sociaux ont-Ils été consultés ? Non 
- avis des partenaires sociaux 
yjo 
ISSN 0254-1475 
COM(89) 425 final 
DOCUMENTS 
EN 03 01 
Catalogue number : CB-CO-89-385-EN-C 
ISBN 92-77-52723-4 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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