Proposal for a Council Regulation (EC) amending Regulation (EC) No 3072/95 on the common organization of the market in rice and Regulation (EEC) No 2358/71 on the common organization of the market in seeds
Date: 1997-09-03
Institutions: European Commission
Subjects: agro-industry, common organisation of markets, monetary compensatory amount, rice, seed

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 03.09.1997 
COM(97)  421  final 

97/0218  (CNS) 

Proposal for a 

COUNCIL REGULATION (EC) 

amending Regulation (EC) No 3072/95 on the common organisation of the market in rice 
and Regulation (EEC) No 2358/71 on the common organisation of the market in seeds 

(presented by the Commission) 

E X P L A N A T O RY  TVIEMOR ANDTTM 

1. 

At the  time  of the  reform  of the  COM  for  rice, compensatory  payments  payable  from 
the  1997/98  marketing  year  were  introduced  by  the  new  basic  Regulation  (Council 
Regulation (EC) No 3072/95) with a view to offsetting  the reduction in the  intervention 
price for paddy rice pursuant to that Regulation. 

Rice  for  sowing  covered  by  CN  code  1006  10  10 is not  included  among  the  products 
covered  by  the  abovementioned  Regulation  and  accordingly  does  not  qualify  for 
compensatory  payments. In order to make up for this and to maintain the price of paddy 
rice irrespective of its subsequent use, the list of products covered by the COM for  rice 
should  be  amended  by  referring  to  the  code  for  paddy  rice  (1006  10)  without 
distinction. 

Nevertheless,  rice  for  sowing,  which  is  covered  by  the  COM  for  seeds  (Council 
Regulation  (EEC)  No  2358/71),  must  be  excluded  from  the  other  provisions  of  the 
COM for rice, in particular buying-in and the system of export refunds. 

Article  3(1)  of  Regulation  (EEC)  No  3072/95  sets  the  intervention  price  at 
ECU 298,35/t  for  the  1999/2000  and  subsequent  marketing  years.  Provision  should 
therefore  be made for  the compensatory  payment to remain  in force  for  the  1999/2000 
and subsequent marketing years also. 

The base area was established  for  each Member  State. When the scale of reductions  to 
be  applied  is  established,  the  reference  to  the  Commission  and  to  the  procedure  laid 
down  in  Article  22  (Management  Committee)  should  be  deleted  for  the  sake  of 
consistency  with  the  other  compensatory  payment  schemes,  and  in  particular  for 
cereals. 

The  extension  of  the  system  of  compensatory  payments  to  rice  for  sowing  must  not, 
however,  disturb  the balance  of the market  for  seeds. In order to preserve that  balance 
and in particular to safeguard  possibilities of disposing of rice seed in line with the base 
area  established  under  the  compensatory  payment  scheme,  a  mechanism  should  be 
introduced  to  stabilise  seed  production  by  fixing  a  maximum  quantity  on  which 
production  aid  is  payable.  The  maximum  quantity  for  the  Community  will  be  broken 
down among the producer Member States. 

Article 21 of Regulation  (EC) No  3072/95 provides for  mutual  notification  of the  data 
needed  to  apply  that  Regulation  and  the  Regulation  on  the  system  of  compensatory 
payments lays down the information  on the base area. Those provisions need  therefore 
not be reintroduced. 

Article  13(12)  of  Regulation  (EC) No  3072/95  states  that  proof  of  Community  origin 
must  be  provided  for  exports  of  paddy  rice  and  husked  rice.  Taking  account  of  the 
quantities  currently  imported  at  reduced  or  zero  import  duty  and  in  order  to  prevent 
imported  rice  from  being  exported  directly,  proof  of  Community  origin  must  be 
provided for all categories of rice. 

• i-

2. 

3. 

4. 

Proposal for a 

COUNCIL REGULATION (EC) No 

of 

amending Regulation (EC) No 3072/95 on the common organisation of the market  in  rice 
and Regulation (EEC) No 2358/71 on the common organisation of the market in seeds 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

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

Whereas the system of compensatory payments introduced  by Article 6 of Council  Regulation 
(EC) No  3072/95l  should  be extended to cover producers  of rice in the husk  (paddy  or  rough 
rice) for  sowing; whereas the fall  in prices attendant  on the reduction  in the  intervention  price 
provided for in Article 3 of that Regulation has an impact on prices of rice for sowing; whereas, 
given the  lack of adequate  compensation, there  is a risk that the result  would be  lower  use  of 
certified  seed and a deterioration in rice quality; 

Whereas rice for  sowing  should  be included  among the products  covered  by  Regulation  (EC) 
No 3072/95  solely  so  it  can  qualify  for  compensatory  payments;  whereas  it  should  be 
remembered  that  the product  qualifies  for  production  aid  for  seeds  under  Council  Regulation 
(EEC) No 2358/712, as last amended by Regulation (EEC) No  1740/9P; 

Whereas Article 3 of Regulation (EC) No 3072/95 fixes the intervention price for paddy rice at 
the same level for the  1999/2000 and subsequent marketing years; whereas provision should be 
made at the same time for the compensatory  payments fixed in Article 6 of that Regulation  to 
remain the same for the 1999/2000 and subsequent marketing years; 

Whereas,  pursuant  to  Article  6(4)  of  the  abovementioned  Regulation,  the  system  of 
compensatory  payments  is  to  be  applied  on  the  basis  of  an  area  established  by  producer 
Member State; whereas provision should accordingly be made for the reduction applying in the 
event of an overrun in that area to be determined by the Member State concerned; 

Whereas  Article  6(5)  of  that  Regulation  provides  for  information  to  be  forwarded  by  the 
Member  States  on  the  basis  of  declarations  from  producers  and  processors;  whereas  that 
provision should be amended to delete any reference to the national base area; 

1  OJ No L 329, 30.12.1995, p. 18. 

2  OJ No L 246,-5.11.1971, p. 1. 
3  OJ No L 163,26.6.1991, p. 39. 

-3-

Whereas it seems economically justified for export refunds to be granted subject to provision of 
proof  that  the  product  has  been  wholly  obtained  in  the  Community  within  the  meaning  of 
Council  Regulation  (EEC)  No  2913/92  of  12  October  1992  establishing  the  Community 
Customs Code4, as last amended by Regulation (EC) No  82/975; whereas that obligation does 
not apply in the event of re-export; 

Whereas, following  the extension of the system of compensatory payments to rice for  sowing 
and  in  order  to  ensure  balance  on  the  market  for  rice  seed,  in  particular  to  safeguard 
possibilities  of disposal  in line with the base area established  in Article  6 of Regulation (EC) 
No  3072/95,  a mechanism  should be  introduced to  stabilise  production  of rice  seed; whereas 
provision should be made for the system of compensatory payments to be extended and for the 
stabilisation  mechanism  established  to  apply from the  beginning  of  the  1998/99  marketing 
year, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 3072/95 is hereby amended as follows: 

1. 

In Article 1 : 

(a) 

paragraph 1 is replaced by the following: 

41.  The  common  organisation  of  the  market  in  rice  shall  comprise  a  price  and 
trading system and shall cover the following products: 

CN code 

Description 

(a) 

1006 10 

Rice in the husk (paddy or rough  rice) 

1006 20 

1006 30 

Husked (brown)  rice 

Semi-milled  rice  or  wholly  milled  rice,  whether  or  not 
polished or glazed 

(b) 

1006 40 00 

Broken  rice 

4  OJ No L 302,19.10.1992, p. 1. 

5  OJ No L 17,21.1.1997, p. 1. 

4--

(c) 

1102 30 00 

Rice  flour 

1103 14 00 

Groats and meal of  rice 

1103 29 50 

Pellets of  rice 

1104 19 91 

Flaked  rice 

11081910 

Rice starch'; 

(b) 

the following paragraph is added: 

'3. 

This Regulation shall apply to rice in the husk (paddy or rough rice) for 
sowing  covered by CN code  1006  10  10 solely  for the purposes  of the 
system of compensatory payments provided for in Article 6.' 

In Article 6: 

(a) 

in  paragraph  3,  the  heading  of  the  fourth  column  of  the  table  is  replaced  by 
'1999/2000 and subsequent marketing years'; 

(b) 

in paragraph 5: 

(i) 

the second subparagraph is replaced by the following: 

'Where the first subparagraph is applied, the Member  State concerned 
shall, before a date fixed in accordance with the procedure' laid down in 
Article  22 of this Regulation, determine the  scale  of the reductions to 
be  applied  to  the  compensatory  payment.  It  shall 
inform  the 
Commission immediately thereof.'; 

(ii) 

at the beginning  of  the third  subparagraph,  the  words  'For  each  base 
area' are deleted. 

In Article 13: 

(a) 

in  the  first  subparagraph  of  paragraph  12,  the  first  indent  is  replaced  by  the 
following: 

'- the products have been wholly obtained in the Community within the meaning 
of  Article  23  of  Regulation  (EEC)  No  2913/92,  except  where  paragraph  13 
applies,'; 

(b) 

the first subparagraph of paragraph 13 is replaced by the following: 

5~ 

'No export refund shall be granted on rice imported from and re-exported to third 
countries, unless the exporter proves that: 

-  the product to be exported and the product previously imported are one and the 

same, and 

-  all  the  import  duties  were  collected  on  the  product's  release  for  free 

circulation.' 

Article 2 

The following paragraph is hereby added to Article 3 of Regulation (EEC) No 2358/71 : 

'4a.  The maximum quantity of rice seed on which the aid is payable in the Community shall be 
fixed in accordance with the procedure referred to in paragraph 5. That quantity  shall be 
apportioned among the producer Member States.' 

Article 3 

This Regulation shall enter into force on the third day following  its publication in the Official 
Journal of the European Communities. 

However, Article  1(1) and Article 2 shall apply from 1  July 1998. 

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

Done at 

, 

For the Council 

-£-

FINANCIAL STATEMENT 

BUDGET HEADING:  1858 New item in the PDB 98 

APPROPRIATIONS: ECU 47m 

TITLE: 

Proposal for a Council Regulation amending Regulation (EC) No 3072/95 on the common organisation of the market in 
rice and Regulation (EEC) No 2358/71 on the common organisation of the market in seeds. 

LEGAL BASIS: Article 43 of the Treaty 

4. 
To amend Regulation (EC) No 3072/95 in order: 

AIMS: 

to introduce rice seeds in the list of products eligible for compensatory payments as from  the  1998/99 marketing year, 
to maintain the compensatory payments fixed up till the  1999/2000 marketing year and to extend them  for the subsequent 
marketing years; 

and to amend Regulation (EEC) No 2358/71  in order: 

to ensure a balance in the rice seeds market by introducing a stabilisation mechanism  for seeds production. 

FINANCIAL  IMPLICATIONS 

5.0 

EXPENDITURE 
-  CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 

-  NATIONAL  AUTHORITIES 
-  OTHER 

5.1. 

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

-  NATIONAL 

5.0.1 
5.1.1 

5.2 

ESTIMATED  EXPENDITURE 
ESTIMATED REVENUE 

METHOD OF CALCULATION: 

PERIOD OF 
12 MONTHS 

(ECU million) 

CURRENT 
FINANCIAL 
YEAR  (97) 
(ECU million) 

FOLLOWING 
FINANCIAL 
YEAR  (98) 
(ECU million) 

p.m. 

p.m. 

p.m. 

1999 
p.m. 

2000 
p.m. 

2001 
p.m. 

2002 
p.m. 

6.0 

6.1 

6.2 

6.3 

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

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

WILL A SUPPLEMENTARY  BUDGET BE NECESSARY? 

WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

YES/NO 

YES/NO 

¥ES/NO 

YES/NO 

OBSERVATIONS: 
This measure does not involve additional costs as the compensatory payments for the hectares of land sown to rice, including rice 
for seeds, are limited to the national base areas. 

-1' 

ISSN 0254-1475 

COM(97) 421  final 

DOCUMENTS 

EN 

03  17 

Catalogue number  :  CB-CO-97-424-EN-C 

ISBN  92-78-23744-2 

Office  for Official  Publications of the European  Communities 

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