Proposal for a COUNCIL REGULATION (EC) on special arrangements for imports of maize and sorghum into Spain for the year 1994
Date: 1994-06-10
Institutions: European Commission
Subjects: Spain, agricultural levy, import, maize, market stabilisation, sorghum

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COMMISSION  OF  THE  EUROPEAN  CCMVKJNITIES 

C0M(94) 246 final 
Brussels, 10.06.1994 

94/0145 (ACC) 

Proposal  for a 

COUNCIL REGULATION  (EC) 

on special arrangements for imports of maize and sorghum 
into Spain for the year  1994 

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(presented by the Commission) 

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EXPLANATORY  MEMORANDUM 

According  to the Agreement between the European Economic  Community  and the 
United States of America  for the conclusion of the negotiations  under GATT 
Article XXIV.6, as approved  by Council Decision of  30 January  1987, the 
Community was committed  to open an annual quota of 2 million  tonnes of maize 
and  Q.3 million  tonnes of sorghum  for import  into Spain  for each of the 
years  1987 to  1992. These annual quotas were to be reduced  by the quantities 
of certain cereal  substitutes  imported  into Spain within  the same year. 

An extension of the initial Agreement  between the Community  and the United 
States of America  for  1994 was approved  by Council Regulation  (EC) No 532/94 
of 7 MArch  1994. special arrangements  for imports of maize  and  sorghum  into 
Spain should  be laid down  for  1994, with the aim of ensuring  fulfilment of 
the above-mentioned  commitment. As the Agreement was concluded  under 
Article  113 of the Treaty,  the Community  has exclusive competence  for these 
arrangements. 

Accordingly, the present draft regulation  provides  for special  arrangements 
for imports with  retroactive effect  from  1 January  1994. 

Proposal for 

COUNCIL REGULATION (EC) No 

of 

1994 

on special arrangements for imports of maize and sorghum 
into Spain for the year 1994 

THE COUNCIL OP THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in 

particular Article 113 thereof, 

Having regard to the proposal from the Commission1, 

Whereas, under Council Regulation  (EC) No 532/94 of 7 March  19942  extending 

the measures taken under the Agreement between the European  Community and the 

United  States of America  for the conclusion  of the negotiations  under GATT 

Article XXIV.6, the Community undertook, in respect of the year 1994, to open 

a quota  for  imports into Spain of two million tonnes of maize and  300 000 

tonnes of sorghum, minus the quantities of certain grain substitutes imported 

into that country during the same year; whereas the quantities of maize and 

sorghum imported must be used or 

processed  in Spain; whereas the Community  has sole  competence  for the said 

Agreement; 

Whereas, to ensure that the Agreement between the European Economic Community 

and the United  States of America  is implemented, the extended  arrangements 

provide  for  direct  purchase  on  the  world  market  or  application  of  a  levy 

reduction  system; whereas, however, imports of maize and sorghum  into Spain 

effected  on  preferential  terms  may  create  difficulties  for  the  Community 

market; whereas, to overcome that difficulty, provision should be made for the 

possibility of applying a countervailing duty to processed products exported 

either to third countries or to the rest of the Community; 

1 OJ No C 

2 OJ No L 68, 11.03.1994, p. 1. 

- 2 -

Whereas  the combination  of the advantages  provided  for under  the  arrangements 

established  by  Council  Regulation  (EEC) No 715/90  of  5 March  19903,  as  last 

amended  by  Commission  Regulation  (EEC) No 444/924  applicable  to  imports  into 

the  Community  of  sorghum  and maize  originating  in the African, Caribbean  and 

Pacific  (ACP)  states  or  in  the  overseas  countries  and  territories  and  under 

this  Regulation  is  liable  to  create  disturbances  on  the  Spanish  market  in 

cereals;  whereas  that  difficulty  can  be  overcome  by  setting  a  special 

reduction of the levy on maize and sorghum imported under this Regulation; 

whereas  provisions  are  required  to  cover  the  operations  arising  from  this 

Regulation  according  to  the mechanisms  laid  down  by  Council  Regulation  (EEC) 

No 729/70  of  21  April  1970  on  the  financing  of  the  common  agricultural 

policy^,  as  last  amended  by  Regulation  (EEC)  No 2048/886,  and  by  Council 

Regulation  (EEC)  No 1883/78  of  2  August  1978  laying  down  general  rules  for 

the  financing  of  interventions  by  the  European  Agricultural  Guidance 

Guarantee  Fund,  Guarantee  Section^,  as  last  amended  by  Regulation  (EEC) 

No 787/898, 

HAS ADOPTED THIS REGULATION: 

Article 1 

For  1994  imports  from  third  countries,  for  free  circulation  in  Spain,  of  a 

maximum  quantity  of two million  tonnes of maize  and  300  000 tonnes of  sorghum 

shall be effected as provided  in the following Articles. 

3 OJ No L 84, 30.3.1990, p. 85. 

4 OJ No L 52, 27.2.1992, p. 7. 

5 OJ No L 94, 28.4.1970, p. 3. 

6 OJ No L  185, 15.7.1988, p. 1. 

7 OJ No L 216, 5.8.1978, p. 1. 

8 OJ No L 85, 30.3.1989, p. 1. 

- 3 -

Article 2 

1.  The quantities referred to in Article  1 shall be reduced  in proportion to 

any  quantities  of maize  gluten, brewers' grains  and citrus  pulp  imported 

into  Spain  from  third  countries  during  the  year  1994.  Where  it  is 

ascertained  that  the  quantities  of  such  products  imported  into  Spain 

under  the cover of documents  establishing  their  Community  status  develop 

abnormally,  the  necessary  action  shall  be  taken  in  accordance  with  the 

procedure  laid down  in Article  23 of Council Regulation  (EEC) No  1766/92 

of 30 June  19929. 

The  quantities  of  maize  and  sorghum  referred  to  in  Article  1  shall  be 

allocated to processing or use in Spain. 

Article 3 

1.  Without  prejudice  to  Article  4,  in  respect  of  imports  of  maize  and 

sorghum  into Spain, but within the quantitative  limits  set in Article 2, 

a  reduction  shall  be  applied  to  the  levy  fixed  in  accordance  with 

Article  10 of Regulation  (EEC) No 1766/92. 

2.  The  amount  of  the  reduction  shall  be  fixed,  in  accordance  with  the 

procedure  laid  down  in  Article  23  of  Regulation  (EEC) No  1766/92, at a 

level  enabling  disturbance  of  the  Spanish  market  to  be  avoided.  The 

reduction may also be fixed by a tendering procedure. 

The reduction may be differentiated for imports of maize and sorghum into 

Spain under Regulation  (EEC) No 715/90. 

The reduction  shall be applied to imports of maize and sorghum into Spain 

effected on the basis of a licence valid only in that Member State. 

9 OJ No L  181, 1.7.1992, p. 21 

-  4 -

Article 4 

1.  with a view to effecting  the  imports referred  to  in Article  1, it may be 

decided,  under the procedure  laid down  in Article  23 of  Regulation  (EEC) 

No 1766/92, that  the Spanish  intervention  agency  shall  purchase  directly 

on the world market quantities of maize and sorghum to be determined, and 

shall  place  them  under  customs  warehousing  procedure  as  provided  for  in 

Council  Regulation  (EEC)  No 2503/88  on  customs  warehouses10  and 

Regulation 

(EEC)  No 2561/9011  laying  down  provisions 

for  the 

implementation thereof. 

2.  Quantities  purchased  pursuant to paragraph  1 shall be put up  for sale on 

the  Spanish  domestic  market,  in  accordance  with  the  procedure  laid  down 

in  Article  23  of  Regulation  (EEC) No 1766/92, on  terms  enabling  market 

disturbance to be avoided. 

3.  When the goods are placed in free circulation, an agricultural  levy shall 

be  charged,  equal  to  the  average  of  the  levies  applicable  in  Spain  and 

fixed  for  the  cereals  concerned  during  the  first  25  days  of  the  month 

preceding  the  date  of  acceptance  of  the  declaration  of  entry  into  free 

circulation,  minus  the  difference  between  the  threshold  price  and  the 

intervention price for the same month. 

Entry  into free circulation shall be effected by the Spanish  intervention 

agency. 

When the purchasers of the goods make payment to the intervention  agency, 

the  selling  price minus  the  levy  shall  correspond  to  revenue  from  sales 

within the meaning of Annex I to Regulation  (EEC) No 3492/9012. 

4.  The  purchasing  operation  provided  for  in  paragraph  1  shall  rank  as 

intervention  for  the  purpose  of  stabilizing  the  agricultural  markets 

within the meaning of Article  1(2)(b) of Regulation  (EEC) No 729/70. 

10 OJ No L 225, 15.8.1988, p. 1. 

11 OJ No L 246, 10.9.1990, p. 1. 

12 OJ No L 337, 4.12.1990, p. 3. 

-  5 -

Payments  by  the  intervention  agency  for  buying  as  provided  for  in 

paragraph  1 shall  be  borne  by  the  Community  as  they  arise  and  shall  be 

treated  in  the  same way  as  the  expenditure  referred  to  in Article  2 of 

Regulation  (EEC) No 1883/78. The Spanish  intervention  agency  shall record 

the  value  of  the  merchandise  purchased  at  a  price  of  'zero*  in  the 

account referred to in Article 4 of Regulation  (EEC) No 1883/78. 

Article 5 

At a frequency to be determined, the Commission shall record  in accounts: 

the  quantities  of  maize  and  sorghum  imported  into  Spain  from  third 

countries, 

the quantities of maize  gluten, brewers' grains  and citrus  pulp  imported 

into Spain. 

For  this  purpose,  the  Spanish  authorities  shall  supply  the  commission 

regularly with all necessary  information. 

Article 6 

The imports referred  to in Article  2 shall be effected  not later than the end 

of February of the following year. In the event of technical difficulties duly 

noted by the commission a period  of  importation  exceeding  that time  limit may 

be  laid  down  in  accordance  with  the  procedure  laid  down  in  Article  23  of 

Regulation  (EEC) No 1766/92. 

- 6 -

Article 7 

Where the markets  for products derived  from maize or sorghum  are disturbed, a 

countervailing  duty  may  be  introduced  in  accordance  with  the  procedure  laid 

down  in Article  2 3 of Regulation  (EEC) No 1766/92  for exports of t**« relevant 

products from Spain or for their consignment to other Member States. 

Article 8 

The  following  shall  be  adapted  in accordance  with  the  procedure  laid down in 

Article 23 of Regulation  (EEC) No 1766/92: 

any  measures  needed  to ensure  that  the  cereals, the  levy  for  which  has 

been reduced, are actually  processed  or used  in Spain; such measures may 

in particular provide for the deposit of a security, 

the  other  detailed  rules  for  the  application  of  this  Regulation,  and  in 

particular those relating to the issue of import licences; such rules may 

stipulate that the licences may be issued only  in Spain, after commission 

endorsement. 

Article 9 

This Regulation  shall enter into force on the day following  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, 

F I N A N C I AL 

STATEMENT 

1. BUDGET HEADING: Expenditure Bl-1003 
Bl-1000 

Revenue 

Date:  24.5.94 

APPROPRIATIONS: 214.0 

1023.4 

2. TITLE: 

Proposal  for a Council Regulation  (EC) on special arrangements for imports of maize and  sorghum  into 
Spain for the year 1994 

3. LEGAL BASIS: EC Treaty, and in particular Article 113 thereof 

4. AIMS OF PROJECT: 

To fix the quantities and lay down the implementing rules for the special arrangements for imports of 
maize and  sorghum into Spain following the extension of the Agreement on the matter by Council Regulation 
(EC) No 532/94 

5. FINANCIAL  IMPLICATIONS 

PERIOD OF 12 MONTHS 

(ECU million) 

CURRENT FINANCIAL 
YEAR  (1994) 
(ECU million) 

FOLLOWING FINANCIAL 
YEAR  (1995) 
(ECU million) 

5.0. EXPENDITURE 

- CHARGED TO THE EC BUDGET 

(REFUNDS/INTERVENTIONS) 

5.1. REVENUE 

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

5.0.1. ESTIMATED  EXPENDITURE 
5.1.1. ESTIMATED REVENUE 

5.2. METHOD OF CALCULATION: 

88.7 

p.m. 

88.7 

52.5 

10.5 

42.0 

1996 

p.m. 

1997 

1998 

1999 

Revenue: 1.5 million  t x ECU  29/t x 1.207  (DR) = ECU 52.5 million. ECU 29/t is the difference between the 
intervention  price for maize with 5 monthly  increases and the world market price  (C.I.F.) as contained 
in the 1995 PDB  [(106.6  + 5 x 1.16) -  (70 + 13)] = 29. 
It is assumed that 20% of the revenue will be received in 1994. 
Expenditure: 1.5 million t x ECU 49/t x 1.207  (DR) = ECU 88.7 million. 
ECU 49/t is the refund  for maize as contained in the 1995 PDB. 

6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

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? 

YES 

YES 

NO 

YES 

COMMENTS : 
The quantity provided for in Article 1(1) of  2.3 million t of maize and sorghum is reduced by 800 000 t, 
corresponding  to the estimated quantities of maize gluten, brewers' grains and citrus pulp imported  into 
Spain in 1994 in accordance with Article 2 of  the same Regulation. 
The 1995 PDB takes account of these imports. 

ISSN 0254-1475 

COM(94) 246  final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-94-260-EN-C 

ISBN 92-77-70099-8 

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