ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)1911
Vol.1973/0336

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73 )1911 final
Brussels ,13November 1973
PROPOSAL FOR A
COUNCIL REGULATION
ma*-**- *■■^ .
concerning theuseto "bemade during acertain period ofinward
processing arrangements intrade inagricultural products
"between Member States oftheCommunity asoriginally constituted
and the new Member States and "between the new Member States themselves
(submitted totheCouncil "bytheCommission )
COM(73 )1911 final

YI/2682/7>E
EXPLANATORY MEMORANDUM
SomeoftheRegulations whichestablishthecommonorganization ofmarkets
containaprovisionwhichhastheeffectofprohibiting inwardprocessing
arrangements intradebetweenMemberStates;thisprovisionresultsnot
onlybecauseoftheinherentincompatibility betweeninwardprocessing
arrangements andtheregulationofpricesbutalsobecausetheabsenceof
chargesintheexchangesbetweentheMemberStatessincetheinstitution
ofthecommonorganization ofmarkets.
However,x.'hilesuchmeasuresarejustifiedintradebetweentheCommunity
asoriginallyconstituted andthenewMemberStatesandbetweenthenew
MemberStatesthemselveswheretheproductsinvolvedaresubjecttoprice
regulation,theydonotappeartobenecessaryeconomicallyinthecaseof
productsinrespectcfwhichcustomsdutiesorcomponentsintendedto
ensuretheprotectionoftheprocessingindustrystillapply.
ThisdraftRegulationthushasatwo-foldobject:
–tobringabouttheprohibition onlyofsuchinwardprocessing
operationsasareliabletodistorttheoperationoftheprice
regulatorsappliedunderthecommonagricultural policy,and
-topermitonlysuchinwardprocessingoperationsasdonotcause
suchdistortion,aslongascustomsdutiesorcomponentsintendedto
ensuretheprotectionoftheprocessingindustryarestillapplied.

VI/2682/73-E
Proposalfora
COUTTCILREGULATION'
concerningthouseto"bemadeduringacertainperiodofinwardprocessing
arrangements intradeinagricultural productsbetweenMemberStatesofthe
Communityasoriginallyconstituted andthenewMemberStatesandbetween
thenewMemberStatesthemselves
THECOUNCILOPTHEEUROPEAN "COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity;
4HavingregardtotheTreatyconcerningtheaccessionofnewMemberStates
totheEuropeanEconomicCommunityandtotheEuropeanAtomicEnergy
Community,signedatBrusselson22January .1972,andinparticularArticle
62(1)oftheAct(2)annexedthereto;
HavingregardtotheproposalfromtheCommission ;
WhereassomeoftheRegulations whichestablishthecommonorganization of
marketscontainaprovisionwhichprohibitstheadmissiontofree
circulationwithintheCommunityofgoodssubjecttosuchorganization
whicharemanufactured orobtainedfromproductstowhichArticle9(2)and
Article10(1)totheTreatydonotapply.
Whereasforaslong,ascustomsdutiesorcomponentsintendedtoensurethe..
protectionoftheprocessingindustrystillapplytotradeincertain ,
agricultural productsbetweenMemberStatesoftheCommunityasoriginally
constituted andthenewMemberStatesandbetweenthenewMemberStates
themselves,itmayboeconomicallyjustifiabletoprocessorworkunder
inwardprocessingarrangements productsofeverykindand,subject-to'
Article45of"theAct,toadmitthecompensating product,whichissubject-
tocustomsdutiesortoaprotectivecomponent,tofreecirculation ;
Whereastoenablesuchoperationstobecarriedout,specialprovisions
shouldbeadopted,tobeapplicableduringtheperiodconcerned;
(1)O.J.Ko.L73of27.3.1972,p.5
(2)O.J.Ho.L73of27.3.1972,p.14

2
Whereasduringtheperiodreferredtoabovecompensating productsmay"be
manufactured orassembledfromproductsimportedfromanotherMemberState
whichfulfiloneoftheoonditionsreferredtoinArticle9(2)ofthe
Treaty;whereaswhonthesecompensating productsareliableto
compensatory amountsintradebetweenMemberStatestheresultisthat
priceregulation nolongerhasanyeffect;whereasitisimportant
thereforetoprohibittheadmissionofsuchcompensating productstofree
circulation ;
/
-HASADOPTEDTHISREGULATION :
Article 1
ForthepurposesofthisRegulationtheMemberStatesoftheCommunityas
originallyconstitutedshallberegardedasasingleMemberState.
Article2
1.Itshallbeincompatible withthesystemofcompensatory amounts
providedforinArticle550)(a)"fc*10ActofAccessiontoexportfrom
oneMeiaberStatetoanothercompensating productswhichhavebeen
manufactured orassembledfromproductsnotsubjectintheexportingMember
Statetoeither:
-compensatory amounts,asprovidedforinArticle55°f"th"3Actof•■
Accession;
-leviesorotheramountsortaxes,asprovidedforunderthecommon
agricultural policy. '_
2.Wherethelevyincludesacomponentintendedtoensuretheprotection
oftheprocessingindustryparagraph 1shallnotap'olyinrespectofsuch'
component • : . ■■<...
Article3
Article21(2)ofRegulation No,120/67/EECandcorrespondingprovisions
inotherRegulations onthecommonorganisation ofmarltetsghall'be
suspendedforaslongascustomsdutiesbetweenMemberStatesorcomponents
intendedtoensuretheprotectionoftheprocessingremaininforce.

/
\
-3- VI/2682/73-E
Article4
&•
ThisRogulaticaishallenterintoforceonthodayofitspublicationinthe
OfficialJournaloftheEuropeanCommunities .
Itshallapplyfrom1January1974*
ThisRegulationshallbe"bindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels, 1973
FortheCouncil
ThePresident