Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 3759/92 on the common organization of the market in fishery products and aquaculture
Date: 1994-09-30
Institutions: European Commission
Subjects: aquaculture, crustacean, market intervention, marketing standard, producer organisation, product quality

COMVIISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(94) 403 final 
Brussels, 30.09.1994 

94/0212 (CNS) 

Proposal 

f or  a 

COUNCIL  REGULATION  (EC) 

amending  Regulation 

(EEC)  No  3759/92 

on  the  common  organization  of  the  market 
in  f i s h e ry  products  and  aquaculture 

(presented  by  the  Commission) 

Explanatory Memorandum 

This proposal for a Council Regulation amending Regulation  (EEC) 
No 3759/92 of 17 December 1992 on the common organization of the 
market  in fishery products and aquaculture contains three main 
sets of provisions: 

1.  The anticipated enlargement of the Union on 1 January 1995 

will require some adjustments to be made: 

As the Community  agreed during the negotiations with 
Norway  to  maintain  the  Norwegian  scheme  for 
recognizing producers' organizations, it is necessary 
to make  provision  in the basic  "markets" Regulation 
for  the  possibility  of  recognizing  a  producers' 
organization  exclusively  for  a  specific  area  of 
activity. 

The  lists  of  products  eligible  for  market  support 
mechanisms  given  in  the  Annexes  to  the  basic 
Regulation must be supplemented. 

2.  Under  Article  18(9)  of  Regulation  (EEC)  No 3759/92,  the 
Council, having studied the relevant Commission report, is 
obliged  to  decide  on  any  proposal  to  review  the 
compensation scheme for tuna before 31 December 1994. 

3.  The  serious  crisis  in  the  fishing  industry, while mostly 
structural  in  nature,  calls  for  adjustments  to  and 
innovations  in  the  common  organization  of  the  market  so 
that,  while  the  Community  holds  to  its  international 
commitments, producers'  incomes can be maintained  and the 
conditions  created  to  bring  about  an  increase  in  their 
incomes,  which  have  been  considerably  affected  by  the 
crisis.  To this end it is proposed to: 

replace the existing  system of monitoring  in advance 

the  extension  of producers'  organizations'  rules  to 
non-members with an appraisal after the event so as to 
shorten  the  time  required  for  implementation,  the 
producers' organizations being thus able to react more 
quickly to market trends; 

introduce, in the case of measures taken on the basis 
of  Articles  22,  23  or  24,  the  requirement  on  non-
members  trading  within  the  area  of  activity  of  a 
producers'  organization  to  observe  the  withdrawal 
price for the products in question.  This measure will 
ensure  that  the  steps  taken  by  the  producers' 
organizations  when  the  market  is  disturbed  are  not 
rendered  ineffectual  or  useless.  Furthermore,  the 
measure  will  improve  the  compatibility  of  the 
reference prices/minimum import prices mechanism with 
Article XI of the GATT by introducing a more rational 
system  to  restrict  supply  on  the  Community  market 
should minimum prices be applied. 

Provision  needs  to  be  made  in  consequence  for 
compensation from the Member States to non-members of 
producers'  organizations  who  are  obliged  to  observe 
the withdrawal price; 

grant special recognition and temporary assistance to 
those 

producers' organizations which draw up and  implement 
a  plan  to  improve  product  quality  and  marketing 
approved by the competent national  authorities.  The 
system  is modelled  closely on that used  for start-up 
aid and its aim is to encourage  the organizations in 
question to develop a- policy of adding value to their 
production, which should increase the average price of 
fresh products; 

AO^ 

provide  for  special  financial  compensation  for 
withdrawals  in cases of exceptional  intervention  for 
a  limited period  as a result of market disturbances. 
The mechanism will improve the liquidity of producers' 
organizations  which  are  called  upon  to  make 
significant compensatory payments to their members in 
times  of  crisis  and  are  often  obliged  to  increase 
membership dues in order to do so. 

Apart  from the three sets of measures above, the proposal also 
includes  a  provision  to  ban  the  use  by  the  producers' 
organizations of the margin of tolerance of up to 10% below the 
Community  withdrawal  or  selling  price  in  cases  where  minimum 
prices  are applied  to  imports.  This provision  was previously 
included  in a Commission Regulation  laying down detailed  rules 
for the application of the system of reference prices, which is 
currently being recast.  It seems more appropriate to include it 
in the basic Regulation. 

Ak> 

Proposal for a Council Regulation  (EC) 
amending Regulation  (EEC) No 3759/92 

on the common organization of the market 
in fishery products and aquaculture 

The Council of the European Union, 

Having regard to the Treaty establishing the European Community, 
and in particular Articles 42 and 43 thereof, 

Having regard to the proposal  from the Commissionl, 

Having regard to the opinion of the European Parliament2, 

Having  regard  to  the  opinion  of  the  Economic  and  Social 
Committee3, 

Whereas the accession of certain new members to the Union will 
require  changes  in the  rules on  the  recognition  of producers' 
organizations  and  amendments  to  the  list  of  species  eligible 
under the intervention mechanisms of the common organization of 
the market, 

Whereas the producers' organizations are the pivot on which the 
common organization of the market turns;  whereas, given current 
adverse market  conditions, their  role must  be  strengthened  so 
that  they  can  implement  more  quickly  the measures  to  regulate 
supply  and  stabilize  prices;  whereas  for  this  purpose  the 
validity  of  any decisions  taken by  the Member  States  obliging 
non-members  of  these organizations  to  comply  with  their  rules 
must be checked after the event; 

stc 

Whereas, should the market be seriously disturbed, the activities 
of  the producers'  organizations  must be  supported  so  that  the 
effectiveness of the measures adopted by them can be ensured to 
the greatest possible extent; whereas, to this end, non-members 
who  trade  within  the  area  of  activity  of  a  representative 
producers' organization must be obliged to comply with the rules 
adopted by the said organization as regards restricting supply, 
in so far as provisions are adopted pursuant to Articles 22, 23 
and 24 of Regulation  (EEC) No 3759/924, and  in respect  of  the 
products concerned; whereas in this case the Member States must 
grant these non-members an indemnity under certain conditions; 

Whereas,  for  various  reasons,  the  average  prices  of  the  most 
important  products have suffered an appreciable and lasting fall 
on  the  Community market; whereas  this  trend  has a  significant 
effect on producers' income; whereas, while continuing to observe 
the  Community's  international  obligations,  measures  should 
accordingly be adopted that can better match supply to the needs 
of the market so that a fair income for producers can be ensured 
as  far  as  possible;  whereas  encouraging  the  producers' 
organizations  to  improve  the  quality  of  their  products 
contributes  to the achievement of these aims; whereas  specific 
recognition  giving  right  to  financial  aid  under  certain 
circumstances  must  be  provided  for  so  as  to  assist  the 
initiatives of the producers' organizations in this regard; 

Whereas, in applying the Community withdrawal or selling prices 
for the products listed in Annex I, the producers' organizations 
may make use of a 10% margin of tolerance  above and. below  the 
said prices; whereas, when the said products are being imported, 
account must be taken when comparing the free-at-frontier price 
and the reference price of any use by the producers' organization 
of the 10% tolerance margin below the Community prices; whereas 
the  use  of  this  lower  tolerance  margin must  not  be  permitted 

4 OJ No L 388, 31.12.1992, p. 1 

where imports of the products in question are required to observe 
the reference price or are subject to a countervailing charge; 

Whereas  in a turbulent market  the producers' organizations  are 
frequently  required  to  deal  with  significant  withdrawals  of 
certain  products,  which  is  likely  to  adversely  affect  their 
liquidity  and  thus  their  ability  to  implement  other  market 
support measures; whereas provision should accordingly be made 
for  special  financial  compensation,  under  certain  conditions, 
once significant withdrawals occur over a limited period; 

Whereas, in the case of the tuna market, the supply requirements 
of the Community industry and the need to protect the income of 
producers justifies maintaining the tariff status of the products 
in question and the compensatory mechanism in accordance with the 
provisions in force;  whereas, to ensure that production does not 
develop abnormally, with a consequent deterioration in associated 
costs, the conditions under which the said mechanism is triggered 
should  be  reviewed;  whereas,  furthermore,  in  the  light  of 
experience,  the  compensatory  allowance  scheme  should  be 
simplified  so  as  to  reduce  the  length  of  time  required  for 
payment of the allowance to the producers' organizations eligible 
for it, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation  (EEC) No 3759/92 is hereby amended as follows: 

1.  The following Article is inserted after Article 4: 

"Article 4a 

Member States may exclusively recognize a producers' 
organization for a specific area of activity if it is 

found to be representative under the terms of 
Article  5(1)." 

2.  Article 5(2) is replaced by the following: 

"2. Before their decision enters into force, Member 
States shall notify to the Commission the rules which 
they intend to make obligatory pursuant to paragraph 1. 

Where the Commission is unsure as to the validity of the 
decision, it may ask the Member State in question within 
one month of receipt of the said notification to suspend 
application of the decision in whole or in  part.  In 
this case and within two months from that same date, the 
Commission: 

shall confirm that the rules notified may be made 
obligatory, 

or 

by means of a reasoned decision, declare null and 
void the extension of the rules decided by the 
Member State where it finds them to be incompatible 
with Community law.  In this case the Commission 
decision shall apply from the date on which the 
request to suspend the rules was sent to the Member 
State." 

3.  The following Article is inserted after Article 5: 

"Article 5a 

1.  Non-members who market within the area for which a 

producers' organization is representative one or 
more products for which measures have been adopted 
pursuant to Articles 22, 23 or 24 of this Regulation 

shall, for the period in which the said measures 
apply, be required to comply with the rules referred 
to in Article 5(1)(a) and  (b), should the producers' 
organization concerned apply them to the products in 
question. 

In this case the Member States shall apply Article 
5(4) and  (5) and grant non-members an indemnity 
under the terms laid down in Article 6. 

2.  At the start of each fishing year, the Member States 
shall prepare and notify to the Commission the 
updated list of the producers' organizations that 
fulfil the conditions for representativeness and the 
corresponding areas for which they are 
representative. 

This list shall be published as an annex to the 
measures adopted by the Commission pursuant to 
Articles 22, 23 or 24." 

4.  The following chapter is inserted in Title II 

"Chapter 3 

Specific measures to improve product quality 

Article 7a 

1.  The Member States shall grant specific recognition to 
producers'  organizations  as  referred  to  in  Article 
4(1)  that market  the products  listed  in Annex  I and 
Annex VI and that have submitted a plan to improve the 
quality  of  the  products  approved  by  the  competent 
national authorities. 

2.  The  primary  purpose  of  the  plan  referred  to  in 

paragraph  1 shall be to  improve product  quality  and, 
where  appropriate, marketing;  the plan  shall provide 
for the following in particular: 

a marked  improvement  in the quality of products 
on board, 

optimal quality maintenance during unloading and 
sale, 

application of adequate quality controls. 

3.  The Member States shall forward to the Commission the 
plans  that  the  producers'  organizations  submit  to 
them. 
These  plans  may  not  be  approved  by  the 
competent  authority  in  the  Member  State  until  they 
have been  sent to the Commission  and  sixty days have 
subsequently  elapsed  during which  the Commission  can 
request changes or reject the plan. 

4.  Detailed  rules  for  the  application  of  this  Article 
shall be adopted in accordance with the procedure laid 
down in Article 32. 

Article 7c 

1.  Article  7  notwithstanding,  the  Member  States  shall 
grant  the  producers'  organizations  that  have  been 
specifically  recognized  under  Article  7a (1)  aid  to 
facilitate  the  implementation  of  their  plans  to 
improve quality and marketing. 

Entitlement  to  the  aid  in question  shall be  for  the 
three  years  following  the  date  on  which  specific 
recognition was granted. 

The aid in the first, second and third years may not 
exceed  3%,  2%  and  1% respectively  of  the production 
value of the products covered by the plan and marketed 
by the producers* organizations. As a ercentage of the 
research  and  administrative  costs  allocated  by  the 
organization to carry out the plan the aid may not be 
greater than 60% in the first year, 50% in the second 
year and 40% in the third year. 

The aid shall be paid in the year following that for 
which it was approved. 

Fifty per cent of the aid granted shall be refunded by 
the European Agricultural Guidance and Guarantee Fund, 
Guidance Section. 

3.  The Member States shall monitor the implementation of 
the plans to improve quality and marketing which they 
have approved. 

Each year they shall send the Commission, along with 
their  application  for  payment  of  the  Community 
contribution, a report describing progress as regards 
improvements 
in  quality  for  each  producers' 
organization benefiting from the specific recognition 
provided  for in Article 7a. 

4.  Detailed  rules  for  the  application  of  this  Article 
shall be adopted in accordance with the procedure laid 
down in Article 32." 

5.  The following subparagraph is added to Article 12(1) (a) and 

Article 14(1) : 
"The 10% margin of tolerance below the Community price may 
not be applied to products whose importation is subject to 
the terms of Article 22(4)(b) and (c); 

6.  The following Article is inserted after Article 12: 

"Article 12a 

1.  Where,  in  a  given  calendar  month,  the  withdrawals 
effected  by  a producers' organization  reach,  in  the 
case of a product listed in Annex I A or D, 10% of the 
quantities of the said product placed on sale in the 
same  month  pursuant  to  the  rules  adopted  by  the 
producers'  organization  in  accordance  with  Article 
4(1),  the  Member  State  shall  grant  the  producers' 
organization concerned special financial compensation, 
equivalent to 95% of the withdrawal price applied by 
the  said  organization,  for  the  quantities  of  the 
product in question withdrawn from the market which do 
not exceed 14% of the quantities placed on sale in the 
month in question. 

Eligibility  for  this  special  financial  compensation 
shall be granted subject to compliance with the terms 
and  rules  laid  down  in Article  12(1),  (2), (4) and 
(5),  except  for  the  increase  mentioned  in  Article 
12(1)(c), which shall be reduced to 5. 

Special financial compensation may not be granted for 
more  than  two  successive  calendar  months  and may  be 
granted  only, for  a maximum  of  four  calendar  months 
over the whole fishing year. 

The  quantities  accepted  for  special  financial 
compensation  shall not be eligible  for the  financial 
compensation provided  for in Article 12, nor  for the 
carry-over aid provided for in Article  14. 

2.  Detailed  rules  for  the  application  of  this  Article 
shall be adopted in accordance with the procedure laid 

8 

down in Article 32". 

7.  The word "canning" in the heading of Chapter 3 of Title III 

is hereby replaced by "processing". 

8.  Article 17 is replaced by the following: 

"Article 17 

1.  The  Council,  acting  by  qualified  majority  on  a 
proposal  from  the Commission,  shall  fix  for  each  of 
the products listed in Annex III a Community producer 
price  before  the  start  of  the  fishing  year.  This 
price  shall  be  established  in  accordance  with  the 
first and second indents of Article 9(2). 

In fixing this price, account shall also be taken of 
the need to 

consider the supply conditions for the Community 
processing industry, 

help support producers' incomes, 

avoid the creation of surpluses in the Community. 

These prices shall apply throughout the Community and 
shall be fixed for each fishing year. 

2. 

The Member States shall notify the Commission of the 
average  monthly  prices  recorded  at  representative 
wholesale markets or ports  for products of Community 
origin  as  referred  to  in  paragraph  1  which  have 
defined commercial characteristics. 

3.  For  the purposes  of paragraph  2, the  representative 
markets and ports in the Member States shall be those 

where  a  significant  proportion  of  Community  tuna 
production  is marketed. 

4.  Detailed rules for the application of this Article, in 
particular  the  fixing  of  conversion  factors  for  the 
various  species, sizes and presentations  of tuna and 
a  list  of  the  representative  markets  and  ports 
referred  to  in  paragraph  3,  shall  be  adopted  in 
accordance  with  the  procedure  laid  down  in  Article 
32. " 

9.  Article  18 is replaced by the following: 

"Article 18 

1.  An  allowance  may  be  granted  to  the  producers' 
organizations for the quantities of products listed in 
Annex  III  caught  by  their  members,  then  sold  and 
delivered to processing industries established within 
the  customs  territory  of  the  Community  and  intended 
for  the  industrial  manufacture  of  products  falling 
within CN code 1604.  This allowance shall be granted 
when,  for a given quarter, 

the  average  selling  price  recorded  on  the 
Community market 

and 

the free-at-frontier price referred to in Article 
22  plus,  where  appropriate,  the  applicable 
countervailing charge 

are both lower than a triggering threshold equivalent 
to 85% of the Community producer price for the product 
in question. 

10 

The Member  States shall prepare or update and notify 
to the Commission  the list of the industries referred 
to in this paragraph before the start of each fishing 
year. 

2.  The amount of the allowance in any case may not exceed: 

neither  the  difference  between  the  triggering 
threshold  and  the  average  selling  price  of  the 
product  in question on the Community market, 

nor a flat-rate amount equivalent  to 12% of this 
threshold. 

3.  The  maximum  total  quantity  of  each  of  the  products 
eligible  for  the  allowance  shall  be  limited  to  an 
amount equal to the average of the quantities sold and 
delivered,  under  the  terms  set  out  in  paragraph 1, 
during  the  equivalent  quarter  in  the  three  fishing 
years preceding that for which the allowance is paid. 

4.  The amount of the allowance granted to each producers' 

organization shall be equal to: 

the  ceiling  laid  down  in  paragraph  2  for  the 
quantities of the product in question which have 
been disposed  of in accordance with paragraph 1 
and  which  do  not  exceed  the  average  of  the 
quantities  sold  and  delivered  under  the  same 
conditions  by  its  members  in  the  equivalent 
quarter in the three fishing years preceding the 
year for which the allowance is paid, 

50% of the ceiling  laid down  in paragraphe  for 
the quantities  of the product  in question which 
exceed the quantities referred to in the previous 

11 

indent and which are equal to the surplus of the 
quantities resulting  from the allocation of the 
quantities eligible pursuant to paragraph 3 among 
the producers' organizations. 

The  allocation  shall  be  made  proportionally  between 
the producers' organizations in question on the basis 
of  their  respective  average  production  in  the 
equivalent  quarter  in  the  three  fishing  years 
preceding the year for which the allowance is paid. 

5.  The  producers'  organizations  shall  allocate  the 
allowance  granted  to their members proportionally  on 
the basis of the quantities produced by them and sold 
and delivered in accordance with paragraph 1. 

6.  Detailed rules for the application of this Article, in 
particular  the amount and the conditions under which 
the  allowance  is  granted,  shall  be  adopted  in 
accordance with the procedure laid down in Article 32." 

10.  Annexes I and VI are hereby amended in accordance with the 

Annex to this Regulation. 

Article 2 

This Regulation shall enter into force on 1 January 1995. 

This Regulation  shall be binding  in its  entirety  and  directly 
applicable in all Member States. 

Done at Brussels, 

For the Council 

12 

^Annexl 

CN codes 

A. hresh or chilled products ot heading Nos 0302 and 0307 

21.  ex 0302 69 97 

|  Great silver smet (Argentina silus) 

D. Live, fresh or chilled products or products cooked by steaming or by boiling in water 

ex 0306 23  10, ex 0306 23 31 and 

Shrimps of the species Crangon crangon and 

ex 0306 23 39 

Deep-water prawn (Bandalus borealis) 

"Annex VI 

Fresh or chilled products of the following  species 

CN code 

14) Catfish  (Anarhichas spp.) 

ex 0302 69 97 

15) Roundnose grenadier (Coryphaenoides rupestris) 

ex 0302 69 97 

16) Greenland halibut (Reinhardtius hippoglossoides) 

0302 21  10 

17) Atlantic halibut (Hippoglossus hippoglossus) 

0302 21 30 

18) Tusk (Brosme brosme) 
B n a H B g M M C s a s s s s s s s s s s e s s s s s a s s s s s a s s s & s s s s s a a H B B a s sb 

ex 0302 69 97 

- < * "* 

FINANCIAL  STATEMENT 

I.HUDGET  HEADING 

1.261  Aid  lor  fishery  and  aquaculture  products 

APPROPRIATIONS.ECU  35m 

DATE:  20.7.94 

2  TITI.I 

Proposal  lor  ;• Council  Regulation  (EC)  amending  Regulation  (EEC)  No  3759/92  on  the  common  organization  of  the  market  in  fishery  and  aquaculture 

products 

3.  LEGAL  BASIS  Articles  42  and  43  ol  the  EC  Treaty  and  the  Acts  of  Accession  ol  the  new  Member  States 

4.  AIMS  To  include  new  species  now  taken  into  account  and  expand  the  rules  on  producers*  organizations  as  a  result  of  the  new  accessions 

To  amend  the  aid  scheme  for  tuna. 

To  adjust  the  compensation  paid  in  times  of  crisis. 

5.  FINANCIAL  CONSEQUENCE 

1995 

5.0.  EXPENDITURE 

-  CHARGED  TO  EC  BUDGET 

-  NATIONAL  AUTHORITIES 

5.1.-RECEIPTS 

50  1  ESTIMATED  EXPENDITURE 

-  ICI  I  I  in 

ECU  1  m 

ECU  I  m 

ECU  1  m 

1995 

1996 

1997 

1998 

5.1.1.  ANTICIPATED  RECEIPTS 

5.2.  METHOD  OF  CALCULATION  : 

-  Community  and  autonomous  withdrawals  and  carryovers  of  new  species 

-  compensatory  allowance  for  tuna 

-  special  compensation 

6.0.  FINANCING  POSSIBLE  WITH  CREDITS  INSCRIBED  IN  RELEVANT  CHAPTER  OF  CURRENT  BUDGET 

6.1.  FINANCING  POSSIBLE  BY  TRANSFER  BETWEEN  CHAPTERS  OF  CURRENT  BUDGET 

6.2.  NECESSITY  FOR  A  SUPPLEMENTARY  BUDGET 

6.3.  CREDITS  TO  BE  WRITTEN  INTO  FURTURE  BUDGETS 

ECU  3.0m 

ECU(6.0)m 

ECU  2.0m 

YES 

NO 

YES 

COMMENTS  : The  reduction  in this  budget  heading  is  compensated  for  by  an  increase  in  budget  heading  2.181,  which  is  also  affected  by  this  proposal  to  amend 

the  Regulation. 

M 

FINANCIAL  STATEMENT 

l.BUDGET  HEADING  : 2.181 Transitional measures  and innovatory  schemes and aid for producers' 
organizations 

APPROPRIATIONS: ECU  10m 

2. TITLE  : Proposal  for a Council  Regulation  (EC) amending  Regulation  (EEC) No 3759/92 on the common  organization  of the  market  in fishery  and  aquaculture 
products 

DATE:  20.7.94 

3.  LEGAL  BASIS  : Articles 42 and 43 of the  EC Treaty 

4. AIMS 

To adjust  the aid to producers' organizations  for introducing plans to improve quality 

5. FINANCIAL CONSEQUENCE 

5.0.  EXPENDITURE 

- CHARGED TO EC BUDGET 
- NATIONAL  AUTHORITIES 

5.1.  RECEIPTS 

5.0.1. ANTICIPATED  EXPENDITURE 

5.1.1. ANTICIPATED  RECEIPTS 

5.2. METHOD OF CALCULATION 

1995 

ECU  l  m 
ECU  lm 

1996 

ECU  lm 

1995 

ECU  l  m 

1997 

1998 

ECU  1  m 

ECU  1  m 

6.0. FINANCING POSSIBLE  WITH CREDITS  INSCRIBED  IN RELEVANT  CHAPTER  OF CURRENT BUDGET 

6.1. FINANCING POSSIBLE BY TRANSFER  BETWEEN  CHAPTERS  OF CURRENT BUDGET 

6.2. NECESSITY  FOR A SUPPLEMENTARY  BUDGET 

6.3. CREDITS  TO BE WRITTEN  INTO FURTURE  BUDGETS 

NO 

NO 

YES 

YES 

COMMENTS  : The increase in this budget heading is offset  by a reduction  in budget heading  1.261, which is also affected  by this proposal to amend the 
Regulation. 

A<: 

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COM(94) 403 final 

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