Proposal for a COUNCIL DECISION on EU accession to the International Cotton Advisory Committee (ICAC)
Date: 2011-12-08
Institutions: European Commission
Subjects: accession criteria, cotton, international market, international organisation, primary product, textile industry

EUROPEAN COMMISSION 

Brussels, 8.12.2011 
COM(2011) 861 final 

2011/0420 (NLE) 

Proposal for a 

COUNCIL DECISION 

on EU accession to the International Cotton Advisory Committee (ICAC) 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The International Cotton Advisory Committee (ICAC) is the International Commodity Body 
(ICB)  for  cotton1.  Its  mission  is  to  assist  governments  in  fostering  a  healthy  world  cotton 
economy. It does this by ensuring transparency on the world cotton market, by serving as a 
clearing house for technical information on cotton production and by serving as a forum for 
discussion  of  cotton  issues  of  international  significance.  ICAC  acts  as  a  statistical  observer 
and  brings  together  producing,  consuming  and  trading  countries  and  all  segments  of  the 
cotton industry. It has an overall facilitating role, and is not engaged in cotton price setting or 
determination. 

To date, the ICAC is one of the few ICBs where the EU is not a member.  

On  various  occasions  (namely  in  its  Conclusions  of  2004,  2008  and  2010),  the  Council  has 
requested  the  Commission  to  consider  EU  membership  of  ICAC.  The  EU  is  a  producer  of 
cotton and has evolved from a net cotton importer (until 2008) to a net cotton exporter as of 
2009. The EU textiles and clothing industry is an important user of cotton cloth. Moreover, 
cotton  is  an  important  area  for  European  development  cooperation,  the  EU  having  been  the 
main donor to the African cotton sector since 2004. 

2. 

RESULTS  OF  CONSULTATIONS  WITH  INTERESTED  PARTIES  AND 
IMPACT ASSESSMENTS 

Taking into account the present situation, the Commission considers that membership to the 
ICAC would be desirable as it would: 

– 

– 

– 

allow  the  EU  to  express  its  views  on  cotton  with  a  single  voice  in  the  appropriate 
ICB, 

provide the EU access to information on cotton issues, in order to follow the cotton 
market and influence the cotton agenda, 

facilitate  linkages  and  partnerships  between  the  EU  private  sector  (cotton  and 
textiles), cotton producers (from the EU and from developing countries), and public 
authorities. 

The  ICAC  Secretariat  is  strongly  in  favour  of  EU  membership  as  it  will  increase  the 
importance and international status of ICAC as an ICB.] 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

As trade issues represent an important part of ICAC’s tasks, the Commission is of the opinion 
that EU exclusive competence is desirable under Article 207 TFEU 

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www.icac.org. 

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4. 

BUDGETARY IMPLICATION 

ICAC membership is based on the payment of an annual contribution. It is calculated on an 
annual basis as a function of the number of ICAC’s members (fixed part) and the volume of 
raw cotton traded by each member (variable part). A contribution of USD 360 000/year would 
be required, which will give the EU an appropriate influence in ICAC affairs and allow broad 
EU involvement in ICAC’s activities. 

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2011/0420 (NLE) 

Proposal for a 

COUNCIL DECISION 

on EU accession to the International Cotton Advisory Committee (ICAC) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207 (3) 
and (4), in conjunction with Article 218 (6) (a) thereof, 

Having regard to the proposal from the European Commission, 

After approval by the European Parliament2, 

Whereas: 

(1) 

(2) 

(3) 

The European Union (EU) is not a member of the International Cotton Advisory Committee. 

On 27 April 2004, 27 May 2008 and 10 May 2010, the Council, in its Conclusions on the EU 
Action  Plan  on  agricultural  commodity  chains,  dependency  and  poverty,  on  the  EU-Africa 
Partnership in support of cotton sector development and on enhancing the EU action in the area 
of  commodities,  respectively,  invited  the  Commission  to  consider  EU  membership  of  the 
International Cotton Advisory Committee. 

As the objectives of this organisation concern agriculture, trade and development policies, it is 
in the interest of the EU to accede to it, in accordance with Article II, Sections 1 and 2, of the 
Rules and Regulations of the International Cotton Advisory Committee. 

HAS ADOPTED THIS DECISION: 

Article 1 

The  accession  of  the  European  Union  to  the  International  Cotton  Advisory  Committee  is  hereby 
approved on behalf of the Union. 

The  Rules  and  Regulations  of  the  International  Cotton  Advisory  Committee  are  attached  to  this 
Decision. 

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OJ C , , p. . 

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Article 2 

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The President of the Council shall designate the person empowered to communicate on behalf of the 
European  Union,  the  present  Decision  to  the  International  Cotton  Advisory  Committee  in  order  to 
express  the  consent  of  the  European  Union  to  be  bound  by  the  Rules  and  Regulations  of  the 
Committee. 

Article 3 

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

Done at Brussels, 

For the Council 
The President 

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RULES AND REGULATIONS 

OF THE 

INTERNATIONAL COTTON ADVISORY COMMITTEE 

As adopted by the 31st Plenary Meeting - June 16, 1972 (With amendments through November 2008) 

ARTICLE I - TERMS OF REFERENCE 

The functions of the International Cotton Advisory Committee (hereinafter referred to as ICAC) are: 

a. 

b. 

c. 

d. 

a. 

b. 

To observe and keep in close touch with developments affecting the world cotton situation. 

To collect, disseminate, and keep complete, authentic and timely statistics and other information 
relating to world production, trade, consumption, stocks and prices of cotton; and other textile 
fibers, or of textiles, insofar as they affect the cotton economy and do not duplicate assignments 
that governments have given to other international bodies. 

To  suggest  to  member  governments  of  ICAC,  as  and  when  advisable,  any  measures  ICAC 
considers  suitable  and  practicable  for  the  furtherance  of  international  collaboration  directed 
towards developing and maintaining a sound world cotton economy. 

To  be  the  forum  for  international  discussions  on  matters  related  to  cotton  prices,  without, 
however,  prejudicing  discussions  currently  being  carried  on  elsewhere,  for  example,  in  the 
UNCTAD. Such discussions should take place regularly both in the Standing Committee and at 
annual Plenary Meetings. 

ARTICLE II – MEMBERSHIP 

Section 1- Eligibility for Membership 

Membership  in  ICAC  is  open  to  all  members  of  the  United  Nations  or  of  the  Food  and 
Agriculture Organization of the United Nations, expressing an interest in cotton. 

Any other government expressing an interest in cotton shall be eligible to apply for membership. 

Section 2 - Accession to Membership: Commitments of Acceding Governments 

Accession of any government to ICAC shall be effected by the following procedures: 

a. 

A  government  desiring  to  accede  shall  address  a  communication  to  the  Executive  Director 
stating that: 

(1) 

It has an interest in cotton; 

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(2) 

It is prepared to fulfill the obligations of membership with respect to: 

(a)  The acceptance of the Rules and Regulations of ICAC in effect at that time, 

(b)  The submission of information concerning the cotton situation and related matters 
within  its  own  country  in  accordance  with  the  prescribed  requirements  of  ICAC 
and any work programs that may be approved from time to time, and 

(c)  The payment of its assessments. 

b. 

c. 

d. 

e. 

The Standing Committee or  the Advisory Committee, as applicable, shall thereupon consider 
the communication of the government desiring to accede. 

Normally  the  accession  of  a  government  qualifying  for  membership  under  the  provisions  of 
Section 1 a. of this article shall be confirmed at the next meeting of the Standing Committee. 
However,  should  the  matter  of  accession  be  raised  at  a  Plenary  Meeting  the  Advisory 
Committee shall confirm the accession. 

Application  for  membership  from  any  other  government  shall  be  considered  by  the  Advisory 
Committee. 

Whenever it confirms or approves the admission of a government to membership in ICAC, the 
Standing Committee or Advisory Committee shall, at the same time, confirm the amount of the 
financial  contribution  assessed  to  such  government  in  the  year  of  its  accession  in  accordance 
with the provisions of Section 4 c. of this article. 

f. 

The Executive Director shall notify the government concerned in writing of the action taken. 

Section 3 - Withdrawal from Membership 

The  withdrawal  of  any  government  from  membership  in  ICAC  shall  be  effected  by  the  following 
procedure: 

a. 

b. 

Any government desiring to withdraw shall address a communication to the Executive Director 
to that effect, stating the date on which it is desired to make the withdrawal effective. 

The  Executive  Director  shall  inform  the  Advisory  Committee  or  the  Standing  Committee,  as 
applicable,  of  any  withdrawal  and,  in  acknowledging  the  withdrawal,  shall  notify  the 
government concerned of its financial status with ICAC. 

Section 4 - Financial Obligations of Members 

a. 

The assessment of each member government shall be the sum rounded to the nearest $100 of: 

(1)  A basic contribution: 40 percent of the total assessments shall be shared equally between 

member countries, and 

(2)  A  pro  rata  contribution:  the  total  of  the  pro  rata  contributions  shall  equal  budgetary 
demands  less  the  sum  of  the  equal  contributions.  The  pro  rata  contribution  shall  be 

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b. 

c. 

d. 

e. 

f. 

g. 

assessed  on  the  basis  of  average  trade  in  raw  cotton  (exports  plus  imports)  in  the  four 
most  recent  cotton  years  (August-July)  ended  prior  to  the  ICAC  fiscal  year  to  which 
contributions are applicable. 

Assessments shall be due on July 1 each year and payable during the following three months of 
ICAC's fiscal year. Each payment received from a member government shall be applied against 
the longest out standing debt due ICAC from that country. 

The initial assessment of a government acceding to membership in ICAC shall be calculated as 
provided in Section 4 a. of this Article. Such initial assessment shall be prorated according to 
the number of full quarters remaining in the ICAC's fiscal year. The pro rata contribution shall 
be determined by the relationship of the average trade that was used in determining the pro rata 
contributions last assessed for existing members. 

The  initial  assessment  of  a  government  acceding  to  membership  shall  be  due  on  the  date  on 
which its accession becomes effective and payable during the following three months. 

On withdrawal of a member government, no remission or refund shall be made of any part of its 
assessment  for  ICAC's  fiscal  year  during  which  the  withdrawal  takes  place.  Any  unpaid 
assessment for that year shall become payable on the date when the Executive Director receives 
the communication referred to in Section 3 a. of this Article. 

If the assessment of a member government is in arrears for twelve months, except for a minimal 
amount, not to exceed 15 percent of its current annual assessment, the Executive Director shall 
notify  the  government  concerned  that,  unless  payment  is  received  within  six  months  after  the 
date  of  notification,  the  provision  of  documents  and  other  services  will  be  discontinued 
thereafter.  If  payment  is  still  not  received  after  a  further  six  months,  the  membership  of  that 
member shall be suspended. 

A  government  that  has  withdrawn  from  membership  under  Section  3  of  this  Article  or  whose 
membership has been discontinued under Section 4 f. shall not be readmitted to membership until 
at  least  one-fifth  of  all  debts  due  ICAC  from  that  country  have  been  paid.  Membership  of  the 
government  shall  continue  only  if  no  additional  arrears  accumulate  while  its  debt  to  the 
Committee is being repaid in full, and only if the government continues to pay its debt to the 
Committee in installments of not less than one-fourth of the remainder per year. 

ARTICLE III - ADVISORY COMMITTEE 

Section 1 - Definition 

In  these  Rules  and  Regulations  the  words  "Advisory  Committee"  mean  ICAC  meeting  in  plenary 
session. 

Section 2 - Frequency and Location of Meetings 

Meetings of the Advisory Committee shall be held at the invitation of member governments. Normally, 
regular meetings shall be held at least once per calendar year. Additional meetings may be called by the 

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Standing Committee. Invitations to host plenary meetings cannot be accepted from countries that are more 
than one year in arrears in the payment of assessments to the ICAC. 

Meetings  of  the  Advisory  Committee  shall  alternate  as  much  as  possible  between  cotton  exporting  and 
cotton importing countries. As the seat of the organization is in the United States of America, meetings 
should be held more frequently there than in other member countries and generally at intervals of not 
more than five years. 

Section 3 - Attendance at Meetings 

An invitation from a member government to the International Cotton Advisory Committee offering to 
host a meeting of the Advisory Committee shall be extended with the understanding that delegations 
from  all  member  countries  are  entitled  to  attend  and  participate  in  the  meeting,  if  they  so  desire.  The 
Committee itself may issue the invitations to the member countries. 

a. 

b. 

c. 

d. 

a. 

b. 

a. 

Section 4 - Procedure at Meetings 

At each meeting of the Advisory Committee, the Conference Chair shall be designated by the 
host government. The Chair of the Standing Committee will serve as First Vice Chair. The host 
government may designate one or more other vice chairs. The Conference Chair shall normally 
preside at meetings of the Steering Committee and Plenary Sessions. Other Committees shall 
designate their own Chair and Vice Chairs. 

The  Executive  Director  of  ICAC  shall  serve  as  Secretary  General  and  may  appoint  one  or 
more  Associate  Secretaries  General.  Should  the  Executive  Director  be  unavailable,  the  host 
government shall designate the Secretary General. 

Each member government shall notify the Executive Director as soon as possible of the names 
of  its  representatives,  alternates,  and  advisors  and  such  other  information,  including  the 
designation of a head of delegation, as may be required for registration. 

During the discussions on any matter, any member government may raise a point of order and 
may  move  the  closure  or  adjournment  of  the  debate.  In  each  case,  the  presiding  officer  shall 
immediately state his ruling, which shall stand unless overruled by the meeting. 

Section 5 - Terms of Reference 

To appoint an Executive Director and to determine his basic contract and emoluments. 

To consider and act on any other matter within the terms of reference of ICAC. 

ARTICLE IV - STANDING COMMITTEE 

Section 1 - Relationship to Advisory Committee 

Between  Plenary  Meetings  the  Advisory  Committee  shall  be  represented  at  Washington  by  a 
Standing Committee, which shall be subordinate to it. 

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b. 

c. 

d. 

The  Advisory  Committee  may  delegate  authority  on  specific  matters  to  the  Standing 
Committee.  The  Advisory  Committee  may  modify  or  withdraw  any  such  delegation  of 
authority. 

All actions taken by the Standing Committee may be reviewed by the Advisory Committee. 

The Chair of the Standing Committee shall report at each meeting of the Advisory Committee on 
the activities of the Standing Committee since the last meeting. 

All members of ICAC are eligible to serve on the Standing Committee. 

Section 2 - Membership 

Invitations to host plenary meetings cannot be accepted from countries that are more than one year in 
arrears in the payment of assessments to the ICAC. 

Section 3 - Competence, Duties, and Responsibilities 

a. 

Substantive 

(1)  To  constitute  a  medium  for  exchange  of  views  in  regard  to  current  and  prospective 

developments in the international cotton situation. 

(2)  To  give  practicable  effect  to  all  directions,  decisions,  and  recommendations  of  the 

Advisory Committee. 

(3)  To prepare work programs. 

(4)  To  see  that  the  work  programs  are  carried  out  insofar  as  the  finances  of  the  ICAC  will 

permit. This responsibility shall involve, but not necessarily be limited to: 

(a)  Determination of the number, nature and distribution of reports and publications to 

be issued. 

(b)  Assignments to the Secretariat or to the appropriate subcommittee of those items 

in the approved work program that it does not wish to reserve for itself. 

(c) 

Improvement of statistics. 

(d)  Public relations. 

(5)  To  prepare  an  agenda  and  timetable  for  the  Advisory  Committee  and  to  make 
recommendations  for  consideration  by  that  Committee.  The  agenda  should  include  the 
date and place of the next meeting of the Advisory Committee. 

(6)  To establish practicable cooperation with the United Nations, the Food and Agriculture 
Organization  of  the  United  Nations,  the  International  Institute  for  Cotton,  and  other 
international organizations concerned with matters of interest to ICAC. 

b. 

Financial 

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To  oversee  the  finances  of  ICAC.  This  responsibility  shall  include,  but  not  necessarily  be 
limited  to,  adoption  of  a  budget  of  expenditures  and  a  scale  of  assessments  from  member 
governments for ICAC's next fiscal year. 

c. 

Administrative 

(1)  To create and maintain at Washington a Secretariat, which shall comprise an Executive 

Director and his staff. (See Article VII.) 

(2)  To  employ  such  staff  as  it  may  deem  necessary  for  the  purpose,  having  in  mind  the 
desirability  of  drawing  qualified  personnel  as  broadly  as  possible  from  participating 
countries. 

(3)  To appoint a new Executive Director and determine the terms of his employment in the 
event of a need in the interim period between meetings of the Advisory Committee. 

(4)  To  define,  as  it  finds  necessary  for  the  efficient  conduct  of  business,  the  duties  and 

responsibilities of any of its officers or of the Secretariat. 

(5)  To recommend amendments to these Rules and Regulations. 

Section 4 - Assignment of Work 

The  Standing  Committee  may  assign  work  to  any  subcommittee  on  matters  coming  within  the 
competence of that subcommittee. 

Section 5 - Procedures of the Standing Committee 

a. 

General 

(1)  Meetings shall be held at the call of the Chair or the Executive Director, at the request of 

any member government, or by decision of the Standing Committee. 

(2)  Notice of at least 10 days shall normally be given. 

(3)  Meetings shall be held in private unless the Standing Committee decides otherwise. 

b. 

Quorum 

(1)  One third of the membership shall constitute a quorum. 

(2) 

In  the  absence  of  a  quorum  the  meeting  shall  proceed  if  at  least  eight  countries  are 
represented. However, the minutes shall identify which decisions, if any, were adopted in 
the absence of a quorum and which governments, if any, abstained in their adoption. 

(3)  Any such decisions shall normally become binding. However, members  who were either 
absent or reserved their position may express their opposition within a period of ten days 
from  the  date  of  the  provisional  minutes  and  if  the  number  of  those  opposing  the 
decision is greater than those who supported the decision at the meeting, the decision will 
be overturned, which fact shall be reported in the final minutes. 

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c. 

Agenda 

(1)  Adoption of an agenda shall be the first order of business at all meetings. 

(2)  A  provisional  agenda  shall  be  prepared  by  the  Executive  Director  and  shall  be 
transmitted  to  all  member  governments  with  the  notice  of  the  meeting.  An  item  can  be 
placed on the provisional agenda by any member of the ICAC by notifying the Executive 
Director at least one week prior to the meeting. 

(3)  An item can be added to the agenda during a meeting unless opposed by a majority of 
those members present. However, any action taken on this item shall require unanimity 
for its adoption at that meeting. 

(4)  Any proposal newly introduced during a meeting shall require unanimity for its adoption 

at that meeting. 

d. 

Minutes 

(1)  Provisional minutes of meetings shall be prepared in summary form. A verbatim record 
shall  be  prepared  only  when  requested  by  the  Executive  Director,  an  officer,  or  a 
representative of a member government. 

(2)  Anyone present at a meeting shall have the right to revise material concerning or attributed 
to him. Any changes shall be notified to the Secretariat within 10 days of the meeting. 

(3)  Thereafter the final minutes shall be distributed to all member governments of ICAC. 

ARTICLE V - OFFICERS OF THE STANDING COMMITTEE 

Section 1 

a. 

b. 

c. 

d. 

The officers of the Standing Committee shall be Chair, First Vice Chair, and Second Vice Chair. 

The officers of the Standing Committee shall be elected at each regular Meeting of the Advisory 
Committee. They shall hold office until the election of their successors. 

In the election of the officers of the Standing Committee, the Advisory Committee shall take into 
account: 

(i) rotation on as broad a geographical basis as possible 

(ii) giving adequate representation both to cotton importing and cotton exporting countries 

(iii) ability, interest, and participation in the work of the Committee 

Officers shall serve without compensation from ICAC. All expenses of the officers shall be paid 
by their own governments unless the Standing Committee decides otherwise for particular and 
specific assignments involving travel costs. 

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Section 2 - Term of Office 

Officers  of  the  Standing  Committee  shall  be  elected  for  one  year.  In  exceptional  circumstances,  they 
may be re-elected for one additional term. When practicable, the First Vice Chair will be nominated to 
succeed the outgoing Chair and the Second Vice Chair nominated to succeed the First Vice Chair. 

Section 3 - Procedures Relating to Elections 

A nominating committee, open to all members of the ICAC, shall be convened no later than four months 
prior  to  the  Plenary  Meeting.  The  nominating  committee  will  elect  its  own  Chair.  The  nominating 
committee shall report to the Standing Committee which will then make appropriate recommendations to 
the Advisory Committee. Delegates to the Standing Committee representing countries that are more than 
one  year  in  arrears  in  the  payment  of  assessments  to  the  ICAC  at  the  time  of  the  meeting  of  the 
nominating committee shall not be eligible for nomination as Standing Committee officers. 

Section 4 – The Chair 

a. 

b. 

a. 

b. 

c. 

The  Chair  shall  be  the  principal  presiding  officer  and  ex-officio  a  member  of  all 
subcommittees and working groups. 

If for any reason the Chair cannot complete his term of office, the First Vice Chair shall become 
Chair ad interim for the period until a new Chair is elected. 

Section 5 - Vice Chairs 

The First Vice Chair shall preside over meetings of the Standing Committee in the absence of, 
or at request of, the Chair. 

The Second Vice Chair shall preside over meetings of the Standing Committee in absence of, or 
at request of, the Chair and/or First Vice Chair. 

If  for  any  reason  the  First  Vice  Chair  cannot  complete  his  term  of  office,  or  if  his  position  is 
vacated by reason of his having become Chair ad interim in accordance with Section 4 b. of 
this Article, the Second Vice Chair shall automatically become First Vice Chair ad interim for 
the period until new Vice Chair are elected. 

ARTICLE VI - SUBCOMMITTEES OF THE STANDING COMMITTEE 

Section 1 - The Standing Committee 

The  Standing  Committee  may  establish  subcommittees  or  working  groups,  prescribe  their  terms  of 
reference, and terminate or discharge them. 

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Section 2 

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Membership  in  any  subcommittee  or  working  group  shall  be  open  to  any  member  of  the  Standing 
Committee. 

Section 3 - Competence, Duties, and Responsibilities of the Subcommittees 

a. Each subcommittee: 

(1)  Shall be responsible to the Standing Committee for work assigned to it by the Advisory 

Committee or by the Standing Committee. 

(2)  May  bring  any  other  matter  within  its  competence  to  the  attention  of  the  Standing 

Committee. 

(3)  Shall  elect  its  own  Chair  and  Vice  Chair.  If,  for  any  reason,  the  Chair  of  any 
subcommittee is unable to continue in this capacity, the Vice Chair of that subcommittee 
shall become chair and the subcommittee shall elect a new Vice Chair. 

(4)  May prescribe its own rules of procedure, formal or informal. 

ARTICLE VII - SECRETARIAT 

Section 1 

The Secretariat shall be headed by an Executive Director who shall be a full time paid employee and 
shall hold office during the period of his contract of employment. 

a. 

b. 

It  shall  be  a  condition  of  his  employment  that  he  shall  not  hold  any  substantial  financial 
interest that would prejudice the conduct of the affairs of ICAC and that he shall not seek or 
receive instructions from any authority outside ICAC. 

The Executive Director shall receive equal treatment with other members of the Secretariat in 
all  matters,  except  for  determination  and  implementation  of  cost  of  living  adjustments  to 
salaries  and  contributions  to  retirement  benefits  which  will  in  the  case  of  the  Executive 
Director be determined by the UN system. 

c. 

The Executive Director 

(1)  Shall be: 

(a)  Treasurer of ICAC, but without personal financial liability in the normal discharge 

of such duties; 

(b)  Secretary General of the Advisory Committee; 

(c)  Secretary  of  the  Standing  Committee  and  its  subordinate  bodies,  unless  he 

delegates his responsibilities to a member of his staff; 

(d)  Custodian of all records of ICAC; 

(e) 

In charge of the staff of the Secretariat. 

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(2)  Shall have: 

(a)  Full responsibility for the work program assigned to the Secretariat; 

(b)  Responsibility  for  the  preparation  of  agenda;  timetables;  technical  documents; 

proceedings, notices and minutes of meetings; 

(c)  Responsibility  for  matters  of  protocol  and  for  communication  with  governments, 
other international bodies, and with national bodies interested in the work of ICAC. 

(3)  Shall: 

(a)  Represent the Standing Committee in arrangements with the host governments for 

meetings of the Advisory Committee: 

(b)  Assign technical assistance to committees at meetings of the Advisory Committee 

in consultation with the host governments; 

(c)  Prepare for the consideration of the Standing Committee an annual detailed budget 
to  include  the  following  headings:  Salaries;  pension  contributions;  travel  and 
subsistence; office equipment; rent and rates, providing an indication of the staff 
resources to be devoted to administrative, technical and other activities. 

(d)  Prepare  for  the  consideration  of  the  Standing  Committee  a  proposed  scale  of 

assessments. 

(e)  Provide  on  a  quarterly  basis  details  of  expenditure  to  date  against  the  approved 

budget. 

(4)  Shall be responsible for such other duties or responsibilities as are assigned to him from 

time to time by the Advisory Committee or by the Standing Committee. 

It shall be the responsibility of the Secretariat: 

Section 2 

a. 

b. 

c. 

To  request  from  member  governments  the  information  detailed  in  Article  IX  as  well  as  such 
special  information  as  may  be  requested  by  the  Advisory  Committee  or  by  the  Standing 
Committee. 

To develop and maintain arrangements for the exchange of information relative to the work of 
ICAC with non-member governments, other international organizations, and private bodies. 

To  prepare,  publish,  and  distribute  a  Quarterly  Statistical  Bulletin  [the  frequency  of  this 
publication  was  changed  to  twice  a  year  by  action  at  the  43rd  Plenary  Meeting],  a  Monthly 
Review  of  the  World  Situation  [the  frequency  of  this  publication  was  changed  to  every  other 
month by action at the 43rd Plenary Meeting], and a Press Release based thereon, in accordance 
with rules prescribed by the Advisory Committee or by the Standing Committee. 

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d. 

e. 

a. 

b. 

To prepare such other reports and analyses as may be requested by the Advisory Committee, 
the Standing Committee, the subcommittees, or working groups established pursuant to Article 
VI, Section 1. 

To notify member governments of meetings of the Advisory Committee, the Standing Committee 
and the subcommittees. The Executive Director shall decide whom to notify of other meetings. 

Section 3 

Press releases or other documents purporting to express the views or opinions of ICAC may be 
issued  only  with  the  approval  of  the  Advisory  Committee  or  of  the  Standing  Committee,  as 
appropriate. 

Statements or articles published by the Secretariat on its own initiative shall bear a disclaimer 
of any responsibility on the part of ICAC. 

It shall be the responsibility of member governments to designate a national coordinating agency which 
shall serve as principal point of contact with the Secretariat. 

Section 4 

ARTICLE VIII - FISCAL PROCEDURES 

The ICAC fiscal year shall begin July 1st. 

Section 1 

Section 2 

For each fiscal year a budget of expenditures and a scale of assessments of member governments shall 
be submitted by the Executive Director to the Standing Committee, which shall be entitled to amend 
them  in  whole  or  in  part  and  whose  action  thereon  shall  be  final  unless  modified  by  the  Advisory 
Committee. 

Section 3 - Accounts 

a. 

b. 

c. 

Expenditures shall be debited to the accounts of the fiscal year in which payments are actually 
made. 

Receipts shall be credited to the accounts of the fiscal year in which funds are actually received. 

The Secretariat shall prepare and submit to the Standing Committee quarterly statements of the 
current financial position of ICAC as of September 30, December 31, March 31 and June 30. 

Section 4 - Audits 

EN 

16 

   EN 

 
a. 

b. 

c. 

a. 

b. 

The Standing Committee shall retain an auditor of recognized standing and cause the accounts 
of ICAC to be audited at least once a year. 

Upon  any  change  in  incumbency  in  the  office  of  the  Executive  Director,  the  Standing 
Committee may cause a special audit to be made. 

Each auditor's report shall be submitted to the Standing Committee and Coordinating Agencies 
for approval at the next meeting of the Standing Committee following receipt of the report by 
the Secretariat. 

Section 5 - Funds 

Unless  otherwise  directed  by  the  Standing  Committee,  all  funds  received  by  ICAC  shall  go 
into a Working Fund. The Standing Committee shall determine from time to time a threshold 
dollar  amount  for  checks  written  on  the  Working  Fund  by  the  Secretariat,  at  or  above  which 
written  approval  from  the  Chair  of  the  Standing  Committee  is  required.  No  individual, 
including the Executive Director, may sign a check drawn on any of the Committee’s accounts 
to him or herself. 

A  Reserve  Fund  is  authorized  in  the  amount  to  be  fixed  from  time  to  time  by  the  Standing 
Committee.  Withdrawals  from  the  Reserve  Fund  may  be  authorized  by  the  Standing 
Committee, but only when the monies available in the Working Fund are inadequate to cover 
commitments  or  liabilities  of  ICAC.  Each  withdrawal  from  the  Reserve  Fund  must  be 
authorized in specific amount and timing. 

Section 6 - Investment 

Funds  in  excess  of  current  requirements  may  be  invested  in  prime  short-term  income-bearing  dollar 
securities  or  may  be  deposited  in  federally-insured  interest-bearing  accounts,  as  directed  by  the 
Standing Committee. 

a. 

b. 

c. 

a. 

Section 7 - Disposal of Assets 

Office furnishings and equipment no longer required by ICAC may be disposed of in accordance 
with procedures approved by the Standing Committee. 

If at any time dissolution of ICAC appears imminent, the Standing Committee shall decide how 
best  to  meet  the  outstanding  financial  obligations  of  ICAC  and  to  dispose  of  any  remaining 
assets. 

Any  assets  remaining,  after  all  financial  obligations  have  been  met  shall  be  prorated  to 
member  governments  whose  assessments  are  fully  paid  in  proportion  to  the  amount  actually 
contributed by each during the current and preceding three fiscal years. 

Section 8 - Retirement Plan 

The Standing Committee is authorized to establish a retirement plan for full time members of 
the Secretariat. 

EN 

17 

   EN 

 
b. 

If such a plan is established, 

(1) 

(2) 

(1) ICAC shall make annual contributions to the plan at least equal to, but no more than 
double, the annual contributions of participating employees. 

(2) The plan may be modified or discontinued by the Standing Committee. In case the 
plan  is  discontinued  or  ICAC  is  dissolved,  each  participating  employee  shall  receive  a 
refund,  both  of  his  contributions  and  ICAC's  contributions  on  his  behalf  with  interest 
accrued thereon. 

ARTICLE IX - PROVISION OF INFORMATION 

Section 1 

Governments,  through  their  coordinating  agencies,  shall  supply  such  available  information  as  may  be 
required to carry out the work program. Such information shall be sent directly to the Secretariat by the 
most expeditious means as soon as it becomes available. 

Section 2 

The following information shall be furnished each month unless otherwise indicated, except that data 
on regulations shall be sent only when a change is made or when specifically requested by the Secretariat. 

a. 

Quantities  of  lint  cotton  in  local  units  including,  where  feasible,  a  breakdown  into  the 
following  staple  lengths:  under  3/4",  3/4"  to  1-3/8",  1-3/8"  and  over,  or  their  metric 
equivalents. 

(1)  Stocks classified by country of growth, at the end of each month: 

(a) 

in mills and other consuming establishments, 

(b) 

in  public  and  private  warehouses,  in  transit  within  the  country,  and  all  other 
locations within the country. 

(2)  Ginnings (or pressings), 

(3) 

Imports, classified by country of growth or, if not available, by country of origin, 

(4)  Consumption, classified by country of growth, when feasible: 

(a) 

in spinning mills and other factories, 

(b) 

in households (annual estimate). 

(5)  Burned or otherwise destroyed (annual estimate), 

(6)  Exports, classified by country of destination, and where possible by variety, 

(7)  Re-exports, classified by country of destination. 

EN 

18 

   EN 

 
b. 

c. 

d. 

e. 

Indications  of  anticipated  production  such  as  area  of  cotton  to  be  planted,  fertilizer  sales, 
planting seed distribution, intentions of farmers to plant cotton, governmental area controls and 
goals. 

Forecasts  and  estimates  of  areas  planted  and  harvested,  yields  per  acre,  and  production  by 
varieties,  as  soon  as  available,  and  at  least  once  at  time  of  plantings  and  once  when  crop 
matures.  Crop  information  should  preferably  be  in  terms  of  lint  cotton  but  where  only  seed 
cotton data are available some indication of lint outturn should be supplied. 

Monthly, quarterly, or yearly statistics, whichever is more convenient, on production, imports by 
country  of  origin  and  exports  by  country  of  destination,  preferably  in  quantity  units,  of  cotton 
yarn and piece goods. 

Coordinating agencies are asked to report promptly, exclusive of the regular monthly report, all 
changes in government regulations which affect cotton. 

Section 3 

Governments  shall  cooperate  with  the  Secretariat  in  supplying  available  information  where  made 
necessary by the work program on production, imports, exports and prices of man-made cellulosic and 
non-cellulosic fibers and piece goods. 

ARTICLE X - LANGUAGES 

Section 1 

The official and working languages of ICAC shall be English, French, Spanish, Russian and Arabic. 

For meetings of the Advisory Committee: 

Section 2 

a. 

b. 

The  Standing  Committee  shall  decide  what  interpreting  facilities  the  ICAC  will  provide.  The 
ICAC shall not incur unbudgeted expenses in connection with these facilities. 

Formal statements by member governments shall be submitted by the originating government in 
at least one official language. 

For  practical  purposes  only,  the  English  language  normally  will  be  used  in  meetings  of  the  Standing 
Committee and subordinate bodies. 

Section 3 

a. 

The following shall be published in English, French and Spanish: 

Section 4 

EN 

19 

   EN 

 
• 

Summary records of discussions in meetings of the Advisory Committee 

•  Monthly  Review  of  the  World  Cotton  Situation  [the  frequency  of  this  publication  was 

changed to every other month by action at the 43rd Plenary Meeting] 

•  Minutes of the Standing Committee [translation into French and Spanish was suspended 

by action at the 43rd Plenary Meeting] 

b. 

The following shall be published in all official languages: 

• 

• 

• 

• 

Annual Review of the World Cotton Situation 

Report of the Chair of the Standing Committee 

Report of the Executive Director 

Final statement of the Plenary Meeting 

c. 

a. 

b. 

c. 

d. 

e. 

The Standing Committee shall determine what other documents of a substantive nature are to be 
printed  in  the  various  languages  considering  their  usefulness  to  members  and  budget 
implications. 

ARTICLE XI – VOTING 

Section 1 

In  their  decision  making  the  Advisory  Committee  and  the  Standing  Committee  shall  strive  for 
unanimity. 

In the event that a consensus cannot be achieved in the Standing Committee, the matter under 
consideration  may  be  referred  to  the  Advisory  Committee,  unless  it  is  specified  in  these  or 
other  ICAC  regulations,  that  the  matter  shall  be put to a vote in  the  Standing Committee. The 
Advisory  Committee  shall  proceed  by  consensus.  In  the  event  of  a  consensus  not  being 
achieved  in  the  Advisory  Committee,  the  matter  shall  be  put  to  a  vote  at  the  request  of  any 
delegate,  in  which  case  the  adoption  of  any  recommendation  or  proposal  shall  require  the 
approval of a two-thirds majority of member governments present and voting. 

Each member government shall be entitled to one vote. 

An abstention shall not be considered as a vote. 

Voting normally shall be by a show of hands unless the majority of members present and voting 
request roll call. A secret ballot shall be taken when requested by any member. 

ARTICLE XII - COOPERATION WITH OTHER ORGANIZATIONS 

EN 

Section 1 

20 

   EN 

 
a. 

b. 

ICAC shall cooperate with other organizations, public or private, national or international. The 
Standing  Committee  shall  determine  the  organizations  and  the  nature  and  extent  of  such 
cooperation. 

These organizations, as well as non-member governments and the public, may, with the approval 
of the host government, be invited to attend sessions of the Advisory Committee. Participation 
in the meetings shall be on such terms as the Advisory Committee or the Standing Committee 
may prescribe. 

ARTICLE XIII - AMENDMENTS 

These  Rules  and  Regulations  may  only  be  amended  by  the  Advisory  Committee  unless  specifically 
referred for amendment to the Standing Committee. 

ARTICLE XIV - SUPERSESSION 

These Rules and Regulations adopted June 16, 1972 supersede any prior act, resolution, or Rules and 
Regulations inconsistent with their provisions. 

EN 

21 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal  for  a  Council  Decision  regarding  the  EU  accession  to  the  International  Cotton  Advisory 
Committee (ICAC) 

1.2. 

Policy area(s) concerned in the ABM/ABB structure 

External  Relations,  Development  and  relations  with  ACP  States.  Obligations  to  international 
commodity organisations.  

1.3. 

Nature of the proposal/initiative 

Legislative act to enable the EU to become a member of the International Cotton Advisory Committee 
(ICAC) 

1.4. 

Objective(s) 

EU accession to the ICAC should be seen in the context of the EU's general approach of participating 
to the International Commodity Bodies (ICBs), as a tool for facilitating trade and trade relations 
between importers and exporters. The decision to participate in agreements of this type, which are seen 
as a way of facilitating development, is based on a detailed analysis of their objectives, which have 
been identified as follows: trade, facilitation of transparency in the cotton trade, encouraging members 
to embark on and develop a sustainable cotton economy, and a forum for consultations between 
Governments. The proposal and its objectives are consistent with the other financial instruments for the 
EU's participation in international organisations. 

1.5. 

Grounds for the proposal/initiative 

The initiative will enable the EU to participate and act as a full member in the international 
organisation's work on cotton, which is also in accordance with the wishes expressed several times by 
the Member States. 

1.6. 

Duration and financial impact 

No time limit is foreseen for the EU membership of ICAC. An annual contribution will be due. 

1.7.  Management method(s) envisaged 

Commission's direct participation in the work of the ICAC with exclusive competence in line with the 
legal basis of this proposal (Articles 207 TFUE). 

2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

In representing and speaking for the EU the Commission regularly reports on its work and activities 
both internally and to the Council in the framework of the PROBA Working Party on Commodities. 

EN 

22 

   EN 

 
2.2.  Management and control system 

The Commission is informed of and follows, on a constant basis, the ICAC's administrative and 
financial management. 

2.3.  Measures to prevent fraud and irregularities 

The ICAC offers the assurance that OLAF (European Anti-Fraud Office) or any other financial service 
may have access to its accounts and carry out audits or checks if so desired by the Commission. The 
ICAC undertakes to accommodate any inspection, investigation or visit at its premises. 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected 

Budget line 21 07 04 – Commodity agreements 

3.2. 

Estimated impact on expenditure 

3.2.1. 

Summary of estimated impact on expenditure  

First  annual  contribution  should  be  around  360,000  USD.  Contribution  is  calculated  on  an 
annual basis as a function of the number of ICAC's members (fixed part) and of the volume of 
raw cotton traded by each member (variable part). It may slightly vary from year to year; no 
major change is foreseen so far. 

3.2.2. 

3.3. 

Estimated impact on revenue: no 

EN 

23 

   EN 

 
 
1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Council  Decision  regarding  the  EU  accession  to  the  International  Cotton  Advisory 
Committee (ICAC) 

1.2. 

Policy area(s) concerned in the ABM/ABB structure3  

External  Relations,  Development  and  relations  with  ACP  States.  Obligations  to  international 
commodity organisations. 

1.3. 

Nature of the proposal/initiative  

X The proposal/initiative relates to a new action  
(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action4  
(cid:133) The proposal/initiative relates to the extension of an existing action  
(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

In the context of ABM this proposal is designed to achieve the goal of developing the Commission's 
role as an intellectual focal point for development through its direct and effective participation in the 
international debate on cotton. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective No.4 : promote sustainability in trade of the selected commodity 

ABM/ABB activity(ies) concerned : 21 07 Development cooperation actions and ad-hoc programmes 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The proposal will give the Commission exclusive competence to  act on behalf of  the  EU in order to 
express its policy and its position on the activities of ICAC in accordance with the EU's overall policy 
guidelines. Therefore it is in the Commission's interest to propose this decision in conformity with its 
institutional role and the wishes expressed several times by the Member States.  

The impact will mainly be felt in ICAC's strategic action and in its management. 

The EU contribution will contribute to the administrative and operational budget of ICAC. 

3 
4 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

EN 

24 

   EN 

 
                                                 
1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

As this is an international commodity body, there is no real indicator that can be used to measure the 
achievements  of  the  proposal.  However  the  willingness  of  all  members  to  continue  international 
cooperation  may  be  considered  a  positive  and  satisfactory  indicator.  Progress  towards  a  policy  of 
sustainability may also be interpreted as a positive indicator. 

1.5. 

Grounds for the proposal/initiative  

1.5.1 

Requirement(s) to be met in the short or long term  

Payment of the annual contribution. 

1.5.2.  Added value of EU involvement 

Involvement  of  the  EU  and  consistency  of  its  action  with  its  policy.  Fostering  the  cooperation  of 
member  states  while  reinforcing  their  role  and  expertise.  The  absence  of  such  an  International 
Community  Body  would  complicate  and  even  hinder  cooperation,  which  might  in  turn  undermine 
cooperation on cotton. The EU membership would stabilize ICAC's membership and secure its status. 

1.5.3.  Lessons learned from similar experiences in the past 

The experience of EU participating to ICBs is positive and appreciated by the ICBs.  

1.5.4.  Coherence and possible synergy with other relevant instruments 

Synergy  with  development  cooperation  programmes  on  cotton  (in  the  framework  of  the  EU-Africa-
Partnership on Cotton) will be enhanced through active membership of ICAC. 

1.6. 

Duration and financial impact  

(cid:133) Proposal/initiative of limited duration  

(cid:133) 
(cid:133) 

Proposal/initiative in effect from 
Financial impact from 

X Proposal/initiative of unlimited duration  

Implementation with a start-up period from 2012 to 2012, followed by full-scale operation. 

1.7.  Management mode(s) envisaged5  

X Centralised direct management by the Commission  
(cid:133) Centralised indirect management with the delegation of implementation tasks to: 
(cid:133) 
(cid:133) 

executive agencies  
bodies set up by the Communities6  

5 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

EN 

25 

   EN 

 
                                                 
(cid:133) 
national public-sector bodies/bodies with public-service mission  
(cid:133) 
persons entrusted with the implementation of specific actions pursuant to Title V of the Treaty 
on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of  Article  49  of  the 
Financial Regulation 
(cid:133) Shared management with the Member States  
(cid:133) Decentralised management with third countries  
(cid:133) Joint management with international organisations (to be specified) 

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

In  representing  and  speaking  for  the  EU  the  Commission  regularly  reports  on  its  work  and  activities 
both internally and to the Council in  the  framework of the  PROBA  Working  Party  on  Commodities. 
Commission's participation is meetings of the relevant forum 5 to 6 times a year. 

2.2.  Management and control system 

2.2.1.  Risk(s) identified  

Dissolution of the Organisation (rather unlikely to happen) 

2.2.2.  Control method(s) envisaged  

The  Commission's  delegation,  as  a  member  of  the  Advisory  Committee  and  of  the  Standing 
Committee,  has  controlling  and  management  powers.  Both  committees  discuss  and  approve  the 
administrative budget. All the accounts are made available to members and audits are performed once 
per year. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

The ICAC offers the assurance that OLAF (European Anti-Fraud Office) or any other financial service 
may have access to its accounts and carry out audits or checks if so desired by the Commission.  

The ICAC undertakes to accommodate any inspection, investigation or visit at its premises 

6 

As referred to in Article 185 of the Financial Regulation. 

EN 

26 

   EN 

 
                                                                                                                                                                        
3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected 

• 

Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Heading  of 
multiannual 
financial 
framework 

Number  
[Description] 

21.07.04 
Commodity Agreement 

• 

New budget lines requested  

DA/NDA 
(7) 

from 
EFTA8 
countries 

from 
candidate 
countries9 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

NO 

NO 

NO 

YES/NO 

In order of multiannual financial framework headings and budget lines. 

Heading of 
multiannual 
financial 
framework 

Number  
[Heading] 

Budget line 

Type of 
expenditure

Contribution  

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

YES/NO 

YES/NO 

YES/NO 

YES/NO 

7 
8 
9 

DA= Differentiated appropriations / DNA= Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

27 

   EN 

 
 
 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

Number 

[Heading] 

EUR million (to 3 decimal places) 

DG: DEVCO 

(cid:121) Operational appropriations  

Number of budget line 21.07.04 

Number of budget line 

Appropriations 
of 
 from the envelop of specific programs11  
Number of budget line 

an 

administrative 

TOTAL appropriations 
for DG DEVCO 

Year 
N10 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL (N+10) 

0.300 
0.300 

0.315 
0.315 

0.331 
0.331 

0.347 
0.347 

0.365 
0.365 

0.383 
0.383 

0.402 
0.402 

3.773* 
3.773* 

0.300 

0.315 

0.331 

0.347 

0.365 

0.383 

0.402 

3.773* 

0.300 

0.315 

0.331 

0.347 

0.365 

0.383 

0.402 

3.773* 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

nature 

financed 

Commitments 

Payments 

(3) 

=1+1a 
+3 

=2+2a 

+3 

(cid:121) TOTAL operational appropriations  

Commitments 

(4) 

10 
11 

EN 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect 
research, direct research. 

28 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelop of specific programs  

Payments 

(5) 

(6) 

TOTAL appropriations  
under HEADING 
of the multiannual financial framework 

Commitments 

=4+ 6 

0.300 

0.315 

0.331 

0.347 

0.356 

0.383 

0.402 

Payments 

=5+ 6 

0.300 

0.315 

0.331 

0.347 

0.356 

0.383 

0.402 

3.773* 

3.773* 

* the annual contribution to ICAC is calculated on the basis of a fix part (40% of ICAC's budget equally shared by all ICAC's members) and of a variable part (60% of 
ICAC budget, as a pro rata of the members' raw cotton traded volumes). 2012 contribution : 360,000 USD /Exchange rate considered for 2012: 1.4 USD/EUR + 20% 
margin + 5% increase per year. 

EN 

29 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
If more than one heading is affected by the proposal / initiative: 

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelop of specific programs  

(4) 

(5) 

(6) 

TOTAL appropriations  
underfor HEADINGS 1 to 4 
of the multiannual financial framework 

(Reference amount) 

Commitments 

=4+ 6 

0.300 

0.315 

0.331 

0.347 

0.356 

0.383 

0.402 

3.773* 

Payments 

=5+ 6 

0.300 

0.315 

0.331 

0.347 

0.356 

0.383 

0.402 

3.773* 

Heading of multiannual financial framework:  

5 

" Administrative expenditure " 

DG: DEVCO 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

TOTAL DG DEVCO 

Appropriations  

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

EUR million (to 3 decimal places) 

0.100 

0.100 

0.100 

0.100 

0.100 

0.100 

0.100 

1.000 

TOTAL appropriations 
under for HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

0.100 

0.100 

0.100 

0.100 

0.100 

0.100 

0.100 

1.000 

EN 

30 

E

EUR million (to 3 decimal places) 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL appropriations  
under HEADINGS 1 to 5 

Commitments 

0.400 

0.415 

0.430 

0.447 

0.465 

0.483 

0.502 

of the multiannual financial framework   Payments 

0.400 

0.415 

0.430 

0.447 

0.465 

0.483 

0.502 

4.773 

4.773 

Year 
N12 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

12 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

31 

E

 
  
 
 
 
                                                 
3.2.2.  Estimated impact on operational appropriations  

The proposal/initiative does not require the use of operational appropriations  
The proposal/initiative requires the use of operational appropriations, as explained 

(cid:133) 
(cid:133) 
below: 

3.2.3.  Estimated impact on appropriations of an administrative nature 

Summary 

X The proposal/initiative does not require the use of administrative appropriations 

3.2.4.  Estimated requirements of human resources  

(cid:133) 
(cid:133) 

The proposal/initiative does not require the use of human resources  
The proposal/initiative requires the use of human resources, as explained below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year
N 

Year
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as necessary to 
show the duration of the impact (see point 
1.6) 

(cid:121) Establishment plan posts (officials and 
temporary agents) 

21  01  01  01  (Headquarters  and 
Commission’s Representation Offices) 

1 

1 

1 

1 

1 

1 

1 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: 
FTE)13 

XX 01 02 01 (CA, INT, SNE from the 
"global envelope") 

XX 01 02 02 (CA, INT, JED, LA and 
SNE in the delegations) 

XX  01  04  yy 
14 

at Headquarters15 

13 

14 
15 

CA=  Contract  Agent;  INT=  agency  staff  ("Intérimaire");  JED=  "Jeune  Expert  en  Délégation"  (Young  Experts  in 
Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 

EN 

32 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
In delegations 

XX  01  05  02  (CA,  INT,  SNE  - 
Indirect research) 

10  01  05  02  (CA,  INT,  SNE  - 
Direct research) 

Other budget lines (specify) 

TOTAL 

XX is the policy area or budget title concerned. 

The  human  resources  required  will  be  met  by  staff  from  the  DG  who  are  already 
assigned  to  management  of  the  action  and/or  have  been  redeployed  within  the  DG, 
together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the 
managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary agents 

External personnel 

Coordination  of  action  with  Members  States-  Linking  with  cotton-
related EU policies - Taking part to meetings and ICACs activities. 

EN 

33 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.5.  Compatibility with the current multiannual financial framework  

Proposal/initiative is compatible with the current multiannual financial framework. 
Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

X 
(cid:133) 
multiannual financial framework. 
(cid:133) 
the multiannual financial framework16. 

Proposal/initiative requires application of the flexibility instrument or revision of 

3.2.6.  Third-party contributions  

The proposal/initiative does not provide for co-financing by third parties 

X 
The proposal/initiative provides for the co-financing estimated below: 

3.3. 

Estimated impact on revenue  

X 
(cid:133) 
(cid:133) 
(cid:133) 

Proposal/initiative has no financial impact on revenue. 
Proposal/initiative has the following financial impact: 
on own resources  
on miscellaneous revenue  

16 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

34 

   EN