PROPOSAL FOR A COUNCIL REGULATION ( EEC ) LAYING DOWN DEROGATING PROVISIONS AS REGARDS STORAGE CONTRACTS FOR OLIVE OIL IN GREECE, SPAIN AND PORTUGAL AND AS REGARDS THE DEFINITION OF OLIVE OIL INTENDED FOR EXPORT
Date: 1989-11-08
Institutions: European Commission
Subjects: food consumption, olive oil

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(89) 541  final 

Brussels, 8  November  1989 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

laying down derogating provisions as regards storage  contracts 

for olive oil  in Greece, Spain and Portugal  and as regards 

the definition of olive oil  Intended  for export 

(presented  by  the  Commission) 

EXPLANATORY  MEMORANDUM 

1. 

Article  20d of Regulation  No 136/66/EEC provides  that where prices on 

the Community  market  for olive oil  are close  to the  Intervention 

price during a period  to be determined,  It be decided  to permit  the 

conclusion of storage contracts.  Such contracts may only be 

concluded with  recognized  producer  groups or  recognized  associations 

within the meaning of Regulation  (EEC) No 1360/78. 

In view of  the special  structural  situation  In Spain, Portugal  and 

Greece, where such groups and associations were not set up, 

derogating measures have been adopted  to permit  other  organizations 

to conclude storage contracts. 

Since  then  the situation has not  changed  substantially.  In fact, 

owing  to the special  features of production  and marketing  structures, 

a  limited number  of groups have been set up and recognized within the 

meaning of Regulation  (EEC) No 1360/78.  Consequently, a very small 

number  of producers are able  to have access  to storage contracts  In 

those countrles. 

Under  these conditions, until  such  time as the application of  the 

abovementloned Regulation produces  Its full effects and  In order not 

to damage  the producers, a derogation should be provided,  for  two 

additional  production  years, from Article  20d of  Regulation 

No 136/66/EEC by making provision  In addition  for bodies other  than 

those provided  for  In Regulation  (EEC) No 1360/78 to be able to 

conclude  storage contracts. 

2. 

The second  indent of Article 35 (3) of Regulation No  136/66/EEC 

provides  that  the description  "pure" can be used until  31  December 

1989 for exports  to non-member  countries of olive oil  as referred  to 

in point  3 of  the Annex  thereto. 

However, until  such  time as the descriptions defined within  the 

framework of  International Olive Oil Agreement  are adapted  and  in 

order  not  to damage Community  exporters, the abovementloned 

derogation should  be maintained  until  31 December  1990. 

2 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

laying down derogating provisions as regards storage 

contracts  for olive oil  in Greece, Spain and Portugal  and 

as regards the definition of olive oil  intended  for export 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to the Treaty establishing  the European Economic  Community, 

Having  regard  to Council  Regulation  No 136/66/EEC of  22  September  1966 on 

the  establishment  of  a  common  organization  of  the  market  In  oils  and 

fats*1*,  as  last  amended  by  Regulation  (EEC)  No 1225/89<2>,  and  in 

particular  Article  36 thereof, 

Having regard  to the proposal  from the Commission, 

Whereas  Article  20d  (3)  of  Regulation  No 136/66/EEC  provides  that  where 

prices on  the Community  market  for olive oil  are close  to the  Intervention 

price  over  a  period  to  be  determined,  it  be  may  decided  to  permit  the 

conclusion  of  storage  contracts;  whereas  such  contracts  may  be  concluded 

solely  with  recognized  producer  groups  or  recognized  associations  thereof 

within  the  meaning  of  Council  Regulation  (EEC)  No 1360/78*3>,  as  last 

amended by Regulation  (EEC) No 3875/88<4>; 

(1) OJ No L 172, 30.9.1966, p. 3025/66. 

(2) OJ No L 128, 11.5.1989, p. 15. 

(3) OJ No L 166, 23.6.1978, p. 1. 

(4) OJ NO L 346, 15.12.1988, p. 3. 

3 

-  2 

Whereas,  In  the  case  of  Greece,  Spain  and  Portugal,  their  special 

structural  conditions  in  recent  years  have  not  permitted  the  setting  up  of 

a  sufficient  number  of  organizations  necessary  for  the  conclusion  of 

storage  contracts  within  the  meaning  of  Regulation  (EEC)  No  1360/78; 

whereas  at  present  the  situation  has not  changed  significantly;  whereas,  as 

a  consequence,  in  those  Member  States  a  very  small  number  of  producers 

would  be  able  to  conclude  storage  contracts;  whereas,  until  such  time  as 

the  application  of  the  abovementioned  Regulation  in  Greece,  Spain  and 

Portugal  achieves  its  full  effects  and  in  order  not  to  prejudice  the 

producers  in  those  Member  States,  a  derogation  should  be  laid  down  for  a 

limited  period  from  Article  20d  of  Regulation  No  136/66/EEC  by  providing, 

in  addition,  for  the  possibility  of  storage  contracts  to  be  concluded  with 

bodies  other  than  those  laid  down  in Regulation  (EEC) No  1360/78; 

Whereas  the  second  indent  of  Article  35  (3)  of  Regulation  No  136/66/EEC 

provides  that  the  term  "pure"  may  be  used  until  31  December  1989  for 

exports  to  third  countries  of  olive  oil  as  referred  to  In  point  3  of  the 

Annex  thereto;  whereas  until  such  time  as  the  terms  defined  within  the 

framework  of  the  International  Olive  Oil  Agreement  are  amended  and  In order 

not  to  prejudice  Community  exporters,  the  abovementioned  derogation  should 

be maintained  for  a  limited  period  for  export  to  third  countries, 

HAS ADOPTED  THIS  REGULATION: 

4 

-  3 -

Article 1 

By  way  of  derogation  from  Article  20d  (3) of  Regulation  No  136/66/EEC  and 

for  the  1989/90  and  1990/91  marketing  years,  storage  contracts  for  olive 

oil  may  also  be  concluded  in  Greece,  Spain  and  Portugal  by  recognized 

producers'  organizations  or  recognized  associations  thereof  within  the 

meaning  of  that  Regulation,  who  hold  olive  oil  of  Community  origin, 

produced  by  their  own  members  and  who  have  suitable  facilities  for  Its 

storage. 

Article  2 

By way of  derogation  from  the second  Indent  of Article  35  (3) of  Regulation 

No  136/66/EEC  and  for  a  period  extending  to  31  December  1990,  the  Member 

States may  authorize  the .use of  the expression  "pure olive  oil"  for  oil  as 

referred  to  In  point  3  of  the  Annex  to  that  Regulation  and  Intended  for 

export. 

Article  3 

This  Regulation  may  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 

a 11 Member  States. 

Done  at 

For  the Council 

5 

FINANCIAL  STATEMENT 

DATE: 9 October 1989 

1. BUDGET HEADING: 1239 Other  Intervention In the 
form of storage 

APPROPRIATIONS: ECU 15 ml 11 Ion 

(1990 draft budget) 

2. TITLE: Council  Regulation  laying derogating provisions as regards storage contracts for olive oil in 

Greece, Spain and Portugal and descriptions of olive oil  Intended for export. 

3. LEGAL BASIS: Article 36 of Council Regulation  No 136/66/EEC 

4. AIMS OF PROJECT: To make possible the application  in Greece, Spain and Portugal of any regulations 

authorizing the conclusion of storage contracts and to avoid damage to Connunlty exporters as regards 
descriptions. 

Period of 12 months 

Current Financial Year 
1989 

Following Financial Year 
1990 

NIL 

NIL 

NIL 

5.  FINANCIAL  IMPLICATIONS 

5.0 EXPENDITURE 

-  CHARGED  TO THE  EC  BUDGET 
- 
(REFUNDS/ INTERVENT ION) 
-  NATIONAL  ADMINISTRATION 
-OTHER 

5 .1  REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 

- NATIONAL 

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 THE CURRENT BUDGET? 
YES/ND 

6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6 .2 

IS  A  SUPPLEMENTARY  BUDGET  NECESSARY? 

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OBSERVATIONS: 

YES/ND 

YES/ND 

_i 

YES/ND 

6 

FICHE  D'IMPACT  SUR  LA  COMPETITIVITE  ET  L'EMPLOI 

I. 

Guelle  est  La  justification  principale  de  la  mesure  ? 

-  Permettre  aux  producteurs  d'huile  d'olive  en  Espagne  , au  Portugal  et  en 

Grèce  de  bénéficier  du  régime  des  contrats  de  stockage  ainsi  que  ce  dernier 
existe  dans  le  reste  de  la  Communauté. 

-  Permettre  aux  exportateurs  de  concurrencer  sur  un  pied  d'égalité  les  exporta 

tions  des  autres  pays  producteurs  sur  les  marchés  tiers. 
II.  Caractéristiques  des  entreprises  concernées.  En  particulier  : 

(a)  Y  a - t -U  un  grand  nombre  de  PME  ?  NON 

(b)  Note-t-on  des .concentrations  dans  des  régions 

i.éligibles  aux  aides  résionales  des  Etats  membres  ? 

OUI 

Inéligibles  au  Feder  ?  OUI 

III.  Quelles  sont  les  obligations  impesées  directement  aux  entreprises  ? 

NEANT 

IV.  Quelles  sent  les  obligations  susceptioies  o'être  imposées  indirectement 

aux  entreprises  via  les  autorités  locales  ? 

NEANT 

V. 

Y  a-t-il.des  mesures  spéciales  pour  les  PKÏ  ? 

'* 

Lesquelles  ? 

NON 

VI.  Quel  est  l'effet  prévisible 

a) sur  la  compétitivité  des  entreprises  ? 

EFFET  POSITIF  INDIRECT 

3  sur  L ' emploi  ? 

EFFET  POSITIF  INDIRECT 

VII.  Les  partenaires  sociaux  ont-ils  été  ccrsulrés  ?  C UI 

Quels  sont 

lz<jrs 

avis  ? 

NEANT 

7-

ISSN 0254-1475 

COM(89) 541  final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-89-527-EN-C 

ISBN 92-77-54838-X 

Office for Official Publications of the European Communities 
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