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 )
Date: 1989-09-13
Institutions: European Commission
Subjects: Portugal, Spain, fruit, import, transitional period (EU)

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; 

3 

-  2 -

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. 

7 

- 3 -

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 

t he  C o m m i s s i o n . s h a l l,  on  t h e b â s i s ' of 

information  supplied  by .Member 

S t a t es 

or 

data  gathered  by  the  Commission  i t s e l f,  regularly  f o l l o w,  for  a 

p r o d u ct 

with  defined  commercial  c h a r a c t e r i s t i c s,  the  trend  of  average 

p r i c es 

f or 

products  coming  from  Spain  on  a ll  the  representative  markets  of 

t he  Community  of  Ten  for  which  prices  are  a v a i l a b l e,  namely  the  average 

p r i c es 

on 

the  most  representative 

import  markets  of  the  Member  S t a t es  and 

s i g n i f i c a nt 

prices  recorded  on  other  markets  for  large  q u a n t i t i es  of 

those 

p r o d u c ts 

o r, 

if  there  are  no  prices  on  the  most  representative  markets, 

s i g n i f i c a nt 

prices  recorded  on  other  markets  for  large  q u a n t i t i e s. 

X 

- 4 -

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. 

-  5 -

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. 

} 

- 6 -

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 

F I N A N C I AL 

S T A T E M E NT 

1. 

BUDGET  HEADING: 

1QQ0 

DATE 

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:  A r t i c L es  8 9 ( 1)  a nd  1 5 2 of  t he  S p a n i sh  A ct  Qf 

Accession 

4.  AIMS:  The measure  aims  to implement  article  152 of the Act of  Accession 

relating  to the import  compensation  mechanism 

PERIOD  OF  12  MONTHS 

CURRENT  FINANCIAL  YEAR 

FOLLOWING  FINANCIAL  YEAR 

C 89 

) 

( 

' 90 

) 

p . m. 

p . m. 

5.  FINANCIAL IMPLICATIONS: 
IMlfMMIMim 

n m M i m i f ï i i i f f i iï 
(munauniniit 
uintHfttfliHiua 
U i t i il 

5.1  REVENUE 

-  OWN RESOURCES  OF  THE EC 

( L E v i E S ) u i i n i mm 

— 

i, H I I I I I II 

i 

« 

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  THEN 

CURRENT  BUDGET? 

6 .1  CAN  THE  PROJECT  BE  FINANCED  BY  TRANSFER  BETWEEN  CHAPTERS  OF  THE  CURRENT  BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 

6.3  WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

COMMENTS: 

Y E S *# 

YESJWI 

I H T N0 

YES/i» 

The  i n t r o d u c t i on  of  an  o f f er  p r i ce  w i ll  have  the  same  e f f e ct  as  would  a 
reference  p r i c e. 
amount  to 

It  may  be  necessary  at  some  l a t er  date  to  apply  a  c o r r e c t i ve 
from  Spain  i n to  the  Community  of  Ten. 

imports 

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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