2007/361/EC: Commission Decision of 4 May 2007 on the determination of surplus stocks of agricultural products other than sugar and the financial consequences of their elimination in relation to the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (notified under document number C(2007) 1979)
Date: 2007-05-04
Institutions: European Commission
Subjects: accession to the European Union, agricultural product, common organisation of markets, economic consequence, surplus stock

L 138/14

EN

Official Journal of the European Union

30.5.2007

COMMISSION

COMMISSION DECISION

of 4 May 2007

on the determination of surplus stocks of agricultural products other than sugar and the financial
consequences of their elimination in relation to the accession of the Czech Republic, Estonia,
Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia

(notified under document number C(2007) 1979)

(Only the Czech, Greek, Estonian, Latvian, Lithuanian, Maltese, Polish, Slovak and Slovenian versions are
authentic)

(2007/361/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

prices mean that normal carryover stock should be
assessed in the light of factors varying from sector to
sector.

Having regard to the Treaty of Accession of the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
Slovenia and Slovakia,

Having regard to the Act of Accession of the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
Slovenia and Slovakia, and in particular paragraph 4 of
Chapter 4 of Annex IV thereto,

Whereas:

(1)

Poland,

Paragraph 2 of Chapter 4 of Annex IV to the 2003 Act
of Accession provides that any stock of agricultural
product private as well as public, in free circulation at
the date of accession within the territory of the Czech
Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary,
(hereinafter
Malta,
referred to as ‘the new Member States’), and exceeding
the quantity which could be regarded as constituting a
normal carry-over of stock should be eliminated at the
expense of
the new Member States. The concept of
normal carry-over should be defined for each product
on the basis of the criteria and objectives specific to
each market organisation.

Slovenia

Slovakia

and

(2)

Both the criteria and objectives particular to each market
organisation and the relationship between prices in the
new Member States before accession and Community

(3)

(4)

(5)

The basis for calculating levels of surplus stocks should
be the variation in domestic production plus imports less
exports in the twelve months immediately preceding
accession, namely 1 May 2003 to 30 April 2004,
compared to the average of variation in domestic
production plus
the three
previous twelve-month periods.

less exports

imports

for

The Commission invited the new Member States
comments on the general methodology of the calculation
and to present any arguments on specific situations
which would justify higher than normal stocks. The
Commission then proceeded as a first step to assess
the comments on the general methodology and finalise
the methodology based on an overall analysis of the
situation to produce a horizontal approach to be
applied to all new Member States. As a second step, an
evaluation of the specific arguments put forward by the
new Member States has been carried out. On the basis of
the result of this evaluation, the results of the horizontal
exercise have been adjusted.

The results of the calculation should be adjusted to take
into consideration that some categories of products, such
as butter and butter-oil, different qualities of rice, hops,
seeds, wine alcohol, tobacco, and cereals are effectively
interchangeable and could be considered as a group, so
that an increase in stock levels of certain products in a
group may be offset by a reduction in stock levels of
other products in the group.

30.5.2007

EN

Official Journal of the European Union

L 138/15

(6)

(7)

(8)

(9)

New Member States have suggested that production and
trade could have been subject
to a developing trend
during the period of calculation, in particular where the
economic development of their economies was affected
by the prospect of accession to the European Union.
Neglecting such a trend could lead to an overestimation
of surplus stock levels. The calculation has thus been
adjusted by the introduction of a mechanism to take
into account this trend for both production and trade.
(Application of this mechanism should also deal with any
similar trends in internal consumption).

(12)

The calculation should be based on official monthly
Eurostat data transmitted by the Member States, where
this is available.
In cases where such data are not
available or are incomplete a best estimate method
should be applied using other available sources of infor-
mation, established in close contact with the new
Member States.

The other sources of information which have been used
are yearly Eurostat data, data from the new Member
States' balance sheets for the products concerned, and
data sent officially to the Commission by the new
Member States which is
certified by the national
statistical authority.

to establish the financial consequences on the basis of
the difference between the internal and external price
level, as reflected by the average export refund during
the twelve-month period immediately after accession.

for

For products not subject to export refunds in cases such
as preserved mushrooms, garlic, fruit juices for which
significant levels of surplus stocks have been established
in certain new Member States,
an equivalent
approach, it is appropriate to take as a basis the price
differences between the average internal and external
prices. In view of the temporary nature of the financial
consequences arising from the establishment of surplus
stocks for different agricultural products in certain new
Member States, the corresponding amounts should be
paid by
concerned into the
Community budget. It is necessary to fix the date on
which these payments should be made.

the Member

States

(13)

the potentially important

financial conse-
In view of
quences that a Member State may face, it is justified to
extend over four years the period for the payment of
these amounts by the Member States concerned.

(14) Whereas the relevant management committees have not
delivered opinions within the time limits set down by
their chairmen,

Certain country-specific situations have been taken into
account at
in
particular certain specific circumstances in which stocks
were built up.

the request of new Member States

HAS ADOPTED THIS DECISION:

the

resulting amounts of

(10) A threshold should be introduced in order to cover
situations where
surplus
stocks are relatively small compared to what could be
regarded as a normal carry-over stock. This covers the
margin of error of the statistical information gathered in
the particular circumstances of the pre-accession period
and the complexity and scope of this exercise. No charge
should hence be payable by a new Member State on the
amount of surplus stock of a particular product, as
calculated,
is no more than 10 % of
what could be regarded as a normal carry-over stock
for that product in the new Member State concerned.

this amount

if

(11)

the surplus stocks,

appropriate method for

calculating the
The most
in the
financial consequences of
light of the objective of paragraph 2 of Chapter 4 of
Annex IV to the 2003 Act of Accession should consist
in an evaluation of the cost of their disposal
in each
sector concerned. In cases where export refunds existed
for products in the year after accession, it is appropriate

Article 1

The quantities of agricultural products in free circulation in the
new Member States at
the date of accession exceeding the
quantities which could be regarded as constituting a normal
carryover of stock at 1 May 2004, and the amounts to be
the
charged to the new Member States in consequence of
expense of elimination of those quantities are set out in the
Annex.

Article 2

The amounts set out in the Annex shall be considered as

1.
revenue for the Community budget.

2.
The Member States may pay these amounts set out in the
Annex to the Community budget in four equal instalments. The
first instalment shall be paid by the last day of the second
month following the month in which this Decision is notified
to the new Member State concerned. Subsequent instalments
shall be paid by 31 May 2008, 31 May 2009 and 31 May
2010 respectively.

L 138/16

EN

Official Journal of the European Union

30.5.2007

This Decision is addressed to the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Malta, Poland, Slovenia
and Slovakia.

Article 3

Done at Brussels, 4 May 2007.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

30.5.2007

EN

Official Journal of the European Union

L 138/17

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