Proposal for a Council Regulation amending Regulations (EC) No 1452/2001, (EC) No 1453/2001 and (EC) No 1454/2001 as regards the conditions for the re-exportation and re-dispatch of products covered by the specific supply arrangements
Date: 2004-03-09
Institutions: European Commission
Subjects: Azores, Canary Islands, French overseas department and region, Madeira, agricultural product, aid to agriculture, peripheral region, regional aid, supply

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 09.03.2004 
COM(2004) 155 final 

2004/0051 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulations (EC) No 1452/2001, (EC) No 1453/2001 and (EC) No 1454/2001  
as regards the conditions for the re-exportation and re-dispatch of products  
covered by the specific supply arrangements 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

The purpose of Council Regulations (EC) Nos 1452/2001, 1453/2001 and 1454/2001 was to 
adopt specific measures for applying the CAP in the outermost regions (Azores and Madeira, 
French overseas departments and Canary Islands). These measures are aimed at improving the 
conditions in which agricultural products are produced and marketed in those regions, and at 
mitigating the effects of their exceptional geographical situation and constraints as recognised 
in Article 299(2) of the Treaty. In particular, specific supply arrangements entailing economic 
advantages  were  introduced  with  a  view  to  guaranteeing  supplies  and  mitigating  the 
additional costs of the remoteness, insularity and outermost location of these regions. 

In order to ensure that the economic advantages of  the specific  supply arrangements do  not 
provoke  diversions  of  trade  in  the  products  concerned,  these  Regulations  prohibit  the 
re-dispatch  or  re-exportation  of  those  products  from  the  outermost  regions,  with  a  few 
exceptions.  Such  a  prohibition,  and  the  strict  conditions  applicable  to  the  exceptions, 
constitute constraints on the development of certain traders' economic activities. It is proposed 
that  the  dispatch  or  exportation  of  the  products  concerned  should  be  authorised  after  the 
economic advantage has been reimbursed. 

Regulation  (EC)  No  1453/2001  stipulates  that  the  prohibition  on  re-dispatching  and 
re-exporting  the  products  concerned  will  not  apply  to  trade  flows  between  the  Azores  and 
Madeira.  This  provision  allows  trade  to  be  conducted  between  the  Azores  and  Madeira 
without any distinction being made between processed and unprocessed products. It has led to 
sugar  from  Madeira  covered  by  the  specific  supply  arrangements  being  the  subject  of 
speculative dealing in the Azores, where the market is facing difficulties. It is proposed that 
such trade in products covered by the specific arrangements for supplies from the Azores to 
Madeira or vice versa be restricted to processed products alone. 

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2004/0051 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulations (EC) No 1452/2001, (EC) No 1453/2001 and (EC) No 1454/2001  
as regards the conditions for the re-exportation and re-dispatch of products  
covered by the specific supply arrangements 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles 36, 37(2) and 299(2) thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

(3) 

1 
2 
3 

4 

5 

Council  Regulation  (EC)  No  1452/2001  of  28  June  2001  introducing  specific 
measures  for  certain  agricultural  products  for  the  French  overseas  departments, 
amending  Directive  72/462/EEC  and  repealing  Regulations  (EEC)  No  525/77  and 
(EEC) No 3763/91 (POSEIDOM)3, Council Regulation (EC) No 1453/2001 of 28 June 
2001 introducing specific measures for certain agricultural products for the Azores and 
Madeira  and  repealing  Regulation  (EEC)  No  1600/92  (POSEIMA)4,  and  Council 
Regulation  (EC)  No  1454/2001  of  28  June  2001  introducing  specific  measures  for 
certain  agricultural  products  for  the  Canary  Islands  and  repealing  Regulation  (EEC) 
No  1601/92  (POSEICAN)5  prohibit  the  re-exportation  and  re-dispatch  of  products 
covered by specific supply arrangements, save in a few exceptional cases. 

Regulations  (EC)  Nos  1452/2001  and  1453/2001  authorise  exports  of  processed 
products  to  third  countries  in  order  to  encourage  regional  trade  and  traditional 
consignments of processed products. 

Regulation  (EC)  No  1454/2001  authorises  traditional  exports  and  consignments  of 
processed products. It also authorises exports of products in their unprocessed state or 
products resulting from local packaging of such products, under certain conditions to 

OJ C […] […], p. […] 
OJ C […] […], p. […] 
OJ  L  198,  21.7.2001,  p.  11.  Regulation  amended  by  Regulation  (EC)  No  1782/2003  (OJ  L  270, 
21.10.2003, p. 1). 
OJ  L  198,  21.7.2001,  p.  26.  Regulation  last  amended  by  Regulation  (EC)  No  55/2004  (OJ  L  8, 
14.1.2004, p. 1). 
OJ  L  198,  21.7.2001,  p.  45.  Regulation  last  amended  by  Regulation  (EC)  No  1782/2003  (OJ  L  270, 
21.10.2003, p. 1). 

3 

 
 
  
 
                                                 
be  laid  down  by  the  Commission,  including  reimbursement  of  aid  or  payment  of 
import duties. 

(4) 

In  order  to  allow  economic  activity  to  be  developed  in  the  outermost  regions,  the 
exportation or dispatch of products covered by specific supply arrangements should be 
authorised after the aid has been reimbursed or import duties have been paid, except in 
the case of trade in unprocessed products between the Azores and Madeira, which has 
resulted in speculative dealing where certain products are concerned. 

(5) 

Regulations  (EC)  Nos  1452/2001,  1453/2001  and  1454/2001  should  be  amended 
accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

The first subparagraph of Article 3(5) of Regulation (EC) No 1452/2001 is hereby replaced by 
the following: 

"Products covered by the specific supply arrangements may be re-exported to third countries 
or  re-dispatched  to  the  rest  of  the  Community  only  on  the  conditions  laid  down  by  the 
Commission under the procedure referred to in Article 23(2). These conditions shall include 
in particular reimbursement of the aid received under the specific supply arrangements for the 
products referred to in paragraph 2 or payment of import duties on the products referred to in 
paragraph 1. This restriction shall not apply to trade flows between the FOD." 

Article 2 

Article 3(5) of Regulation (EC) No 1453/2001 is hereby replaced by the following: 

"5. 

Products  covered  by  the  specific  supply  arrangements  may  be  re-exported  to  third 
countries or re-dispatched to the rest of the Community only on the conditions laid 
down  by  the  Commission  under  the  procedure  referred  to  in  Article  35(2).  These 
conditions  shall  include  in  particular  reimbursement  of  the  aid  received  under  the 
specific supply arrangements for the products referred to in paragraph 2 or payment 
of import duties on the products referred to in paragraph 1. 

The restriction referred to in the first subparagraph shall not apply to products which 
are  processed  in  the  regions  of  the  Azores  or  Madeira  and  contain  raw  materials 
covered by the special supply arrangements, where those products: 

(a) 

are  exported  in  the  context  of  traditional  exports  or  regional  trade  from  the 
Azores or Madeira to third countries, or 

(b) 

are dispatched in the context of: 

(i) 

traditional  consignments  from  the  Azores  or  Madeira  to  the  rest  of  the 
Community, or 

(ii) 

trade flows between the Azores and Madeira.   

No  export  refund  shall  be  granted  for  the  products  referred  to  in  the  second 
subparagraph." 

4 

 
 
  
 
Article 3 

Article 3(5) of Regulation (EC) No 1454/2001 is hereby replaced by the following: 

"5. 

Products  covered  by  the  specific  supply  arrangements  may  be  re-exported  to  third 
countries or re-dispatched to the rest of the Community only on the conditions laid 
down  by  the  Commission  under  the  procedure  referred  to  in  Article  21(2).  These 
conditions  shall  include  in  particular  reimbursement  of  the  aid  received  under  the 
specific supply arrangements for the products referred to in paragraph 2 or payment 
of import duties on the products referred to in paragraph 1. 

The  restriction  referred  to  in  the  first  subparagraph  shall  not  apply  to  traditional 
exports  or  traditional  consignments  to  the  rest  of  the  Community  of  products 
processed from the products in question in the Canary Islands. 

No  export  refund  shall  be  granted  for  the  products  referred  to  in  the  second 
subparagraph." 

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

Article 4 

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

Done at Brussels, 

For the Council 
The President 

5 

 
 
  
 
 
 
FINANCIAL STATEMENT 

1. 

2. 

3. 

4. 

BUDGET HEADING: 
05 02 11 04 

APPROPRIATIONS:
€249 million 

TITLE: 
Council  Regulation  amending  Regulations  (EC)  No  1452/2001,  (EC)  No  1453/2001  and  (EC) 
No 1454/2001 as regards the conditions for the re-exportation and re-dispatch of products covered by 
the specific supply arrangements 

LEGAL BASIS: 
Articles 36, 37(2) and 299(2) of the EC Treaty 

AIMS: 
To prevent speculative dealing in products covered by the special supply arrangements. 

5. 

FINANCIAL IMPACT 

5.0 

EXPENDITURE CHARGED TO 
– 
THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
– 
– 

NATIONAL AUTHORITIES 
OTHER 

5.1  REVENUE 

– 
EC OWN RESOURCES 
(LEVIES/CUSTOMS DUTIES) 
– 

NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2  METHOD OF CALCULATION: 

– 

12-MONTH 
PERIOD 

(EUR million) 
p.m. 

CURRENT 
FINANCIAL 
YEAR  2004 
(EUR million) 
p.m. 

FOLLOWING 
FINANCIAL 
YEAR  2005 
(EUR million) 
p.m. 

– 

– 

– 

2006 
p.m. 
– 

2007 
p.m. 
– 

2008 
p.m. 
– 

2009 
p.m. 
– 

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  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 

YES / NO 

YES / NO 

YES / NO 

6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 

YES / NO 

OBSERVATIONS: 

The  measure  could  entail  slight  savings  as  a  result  of  the  aid  being  repaid  in  the  event  of  re-dispatch.
However, they cannot be calculated at present. 

6