COMMISSION REGULATION ( EEC ) NO 2917/77 OF 28 DECEMBER 1977 ON TRANSITIONAL MEASURES CONCERNING THE APPLICATION OF MONETARY COMPENSATORY AMOUNTS TO CERTAIN PRODUCTS IN THE CEREALS SECTOR ( OFFICIAL JOURNAL 1977 , L 340 , P . 37 ).
2THE DISPUTE CONCERNS THE APPLICATION OF THE MONETARY COMPENSATORY AMOUNTS SYSTEM TO DURUM WHEAT AND CERTAIN OF THE PRODUCTS DERIVED THEREFROM WHICH ARE NOT COVERED BY ANNEX II TO THE TREATY AND ARE THE SUBJECT OF A SPECIFIC ARRANGEMENT UNDER ARTICLE 235 OF THE TREATY ACCORDING TO THE TERMS OF ARTICLE 1 ( 2 ) ( B ) OF REGULATION NO 974/71 OF THE COUNCIL OF 12 MAY 1971 ON CERTAIN MEASURES OF CONJUNCTURAL POLICY TO BE TAKEN IN AGRICULTURE FOLLOWING THE TEMPORARY WIDENING OF THE MARGINS OF FLUCTUATION FOR THE CURRENCIES OF CERTAIN MEMBER STATES ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1971 ( I ), P . 257 ).
3THE COMMISSION CONSIDERED THAT THE ABSENCE OF MONETARY COMPENSATORY AMOUNTS HAD IN SUMMER 1977 CAUSED DIFFICULTIES AS REGARDS BOTH DURUM WHEAT AND THE PRODUCTS DERIVED THEREFROM , THAT DEFLECTIONS OF TRADE IN THE CASE OF DURUM WHEAT AND DISTORTIONS OF COMPETITION IN THE CASE OF SOME OF THE PRODUCTS IN QUESTION HAD BEEN NOTED , AND THAT THIS STATE OF AFFAIRS WAS FURTHERMORE WORSENED BY THE SHARP DROP IN SUPPLIES OF HOME-GROWN DURUM WHEAT AND THE INCREASED NEED FOR IMPORTS FROM NON-MEMBER COUNTRIES .
4CONSEQUENTLY , BY REGULATION NO 2604/77 IT INTRODUCED MONETARY COMPENSATORY AMOUNTS IN RESPECT OF PRODUCTS UNDER IN PARTICULAR TARIFF SUBHEADINGS 10.01 B ( DURUM WHEAT ), 11.02 A I ( A ) ( GROATS AND MEAL OF DURUM WHEAT ), 19.03 A ( MACARONI , SPAGHETTI AND SIMILAR PRODUCTS CONTAINING EGGS ), 19.03 B I ( MACARONI , SPAGHETTI AND SIMILAR PRODUCTS CONTAINING NO COMMON WHEAT FLOUR OR MEAL ) AND 19.03 B II ( OTHER MACARONI , SPAGHETTI AND SIMILAR PRODUCTS ).
5A FEW LATER , BY REGULATION NO 2792/77 OF 15 DECEMBER 1977 , THE COMMISSION ADDED A PARAGRAPH TO ARTICLE 2 OF THE PRECEDING REGULATION , ACCORDING TO WHICH THE COMPENSATORY AMOUNTS INTRODUCED BY THE LATTER SHALL NOT APPLY ' ' TO OPERATIONS CARRIED OUT UNDER COVER OF A CERTIFICATE FIXING THE EXPORT REFUND OR THE IMPORT LEVY IN ADVANCE IN RESPECT OF WHICH THE APPLICATION WAS LODGED PRIOR TO 26 NOVEMBER 1977 ' ' .
6TWO WEEKS LATER , BY REGULATION NO 2917/77 , THE COMMISSION DECIDED THAT DURING THE PERIOD FROM 2 JANUARY 1978 TO 28 FEBRUARY 1978 THE COMPENSATORY AMOUNTS FIXED FOR THE PRODUCTS FALLING WITHIN TARIFF SUBHEADINGS 10.01 B ( DURUM WHEAT ) AND 11.02 A I ( A ) ( GROATS AND MEAL OF DURUM WHEAT ) WERE TO BE GRANTED ON CERTAIN EXPORTS AND IMPORTS ONLY UNDER SPECIFIED TERMS .
7THE ITALIAN GOVERNMENT CLAIMS THE ANNULMENT OF THE THREE REGULATIONS AT ISSUE , BUT CONSIDERS THAT IT HAS TO PUT FORWARD GROUNDS FOR ITS CLAIM ONLY IN RESPECT OF REGULATION NO 2604/77 AS THE FATE OF