CELEX: 51975PC0327
Language: en
Date: 1975-06-26
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL amending Regulation No 120/67/EEC on the common organization of the market in cereals#Proposal for a REGULATION (EEC) OF THE COUNCIL amending Regulation No 359/67/EEC on the common organization of the market in rice#Proposal for a REGULATION (EEC) OF THE COUNCIL on production refunds in the cereals and rice sectors (submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 327
Vol. 1975/0116
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 ---pagebreak---        COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                     *
                                                       COM(75)327 final.
                                                       Brussels . 26 June 1975
                                     Proposal for a
                             REGULATION ( EEC ) OF THE COUNCIL
           amending Regulation No 120/67/EEC on the common organization of
                                 the market m cereals
                                     Proposal for a
                             REGULATION ( EEC)' OP THE COUNCIL
           amending Regulation No 359/67/EEC on the common organization of
                                   the market in ri ce
                                     Proposal for a
                              REGULATION ( EEC ) OF THE COUNCIL
              on production refunds in the cereals and rice sectors
                   ( submitted by the Commission to the Council )
COM(75 ) 327 final .
 ---pagebreak---                              EXPLANATORY MEMORANDUM
The purpose of "this proposal is "to complete "the Council 's decision regarding
starch production refunds during the 1975/76 marketing year and also to avoid
difficulties which would have arisen if refunds on maize groats and broken
rice used for brewing were terminated whilst those on starch used for brewing
were maintained . The following rates of refund are proposed :
a)  Maize used for Starch         9*25 u.a./ton
b)  Wheat used for Starch        15*10 u.a./ton
c)  Broken Rice for Starch       11.40 u.a./ton
d)  Potato Starch                14*90 u.a./ton
e) Maize Groats and Broken Rice used for beer; rates derived from a) and c).
Refunds for wheat , broken rice and potato starch have been derived from the
maize refund of 9*25 u.a./ton as follows :
          1974/75 - Average maize refund « 23-51 u.a./ton
          1975/76 - Proposed maize refund » 9*25 u.a./ton
           ( ie . a reduction of 60.66$)
 Applying the same percentage reduction to both wheat and broken rice results
 a) 1974/75 - Average wheat refund ■ 38.28 u.a./ton
                  Reduction of 60.66$      *    23*22 u.a./ton
      1975/76 - Proposed wheat refund -         15*06 u.a./ton
                                                say 15*10 u.a./ton
 b) 1974/75 - Average broken rice refund « 28.96 u.a./ton
                   Réduction of 60.66$           - 17*57 u.a./ton
      1975/76 – Proposed broken rice refund ■ 11*39 u.a./ton
                                                    say llc40 u.a. /ton
  The proposed refund on potato starch and the minimum potato price have been
  derived as follows :
  a) Refund
       1975/76 Proposed maize refund = 9*25 u.a./ton
       1975/76 Potato starch refund       ■ 9*25 x
                                          ■ 14*89 u.a./ton say 14*90 u.a./ton
 ---pagebreak---                                        - 2 -
    b ) Minimum price
        1975/76 - August maize threshold price            m 123*40 u.a./ton
        1975/76 - Proposed production refund              ■ 9*25 u.a./ton
        1975/76 - Effective supply price                  ■ 114.15 u.a./ton
                  χ ΟοηνβΓβχοη Γ&ΐβ ( 1.61 )              ■ 183.78 u.a./ton
                    Allowance for value of by products
                    and transport costs ( - 27*70)        ■ 156.08
                                                            I56.O8 u.a./ton
    Thus , the minimum price for quantity of potatoes required for manufacture
    of 100 kg of potato starch ■   15.608
3.  Since the Council decided to fix a flat refund which gives rise to substantial
    amendments to the existing text of Council Regulation (EEC) So 1132/74 and
    since there have been a number of other amendments to this Regulation during
    the current marketing year it is proposed to repeal Regulation (EEC ) So 1132/74
    and to publish the provisions relating to refunds in a new Regulation *
4*  However , before refunds on groats and broken rice can be reinstated , modifications
    to Council Regulation (EEC ) So 120/67 and So 359/67 will also be required. Amend­
    ments to these Regulations necessitate that the European Parliament     be
    consulted .
5 * By slightly reducing the overall rate of refund , ( eg 9*25 u.a./ton for maize )
    from that originally decided by the Council the inclusion of groats and mead
    and broken rice ( for brewing) should not incur additional expenditure .
 ---pagebreak---                                    Proposal for a
                    REGULATION (EEC ) TTn     /-j* pp THE COUNCIL
       amending Regulation No I20/67/EEC on the common organization of the
                               market in cereals
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community, and
in particular Article 43 thereof;
Having regard to the proposal from the Commission;
Having regard to the Opinion of the European Parliament ;
Whereas Council Regulation No I20/67 /EEC        of 13 June 1967 on the common
organization of the market in cereals , as last amended "by Regulation (EEC )
No 665/75 ^ provides in Article 11 for a discretionary production refund for
certain products used for the manufacture of starch or potato starch or inten­
ded for the manufacture of glucose , "but does not provide for the possibility
of granting a refund for the production of maize groats and meal for use by
the brewing industry in the manufacture of beer as from 1 August 1975*
Whereas the absence of such a refund for the production of maize groats and
meal for use by the brewing industry in the manufacture of beer oould , in the
circumstances likely to obtain , disturb the balance between the cost of
supplying the brewing industry with maize starch on the one hand , and with
maize groats and meal on the other; therefore it appears necessary to provide
for a discretionary refund for the production of maize groats and meal for use
by the brewing industry in the manufacture of beer;
HAS ADOPTED THIS REGULATION :
1 ) OJ No 117 , 19.6.1967 , p. 2269/67
2 ) OJ No L 72 , 20.3.1975 » s . 14.
 ---pagebreak---                                  Article 1
The text of Article 11 ( l ) of Regulation No 120/67/EEC shall be completed by
the addition of the following sub paragraph !
d) for maize used in the Community by the maize industry for the manufacture
   of maize groats and meal (gritz ) used in the Community brewing industry for
   the production of beer.
                                 Article 2
This Regulation shall enter into force on 1 August 1975 *
This Regulation shall be binding in its entirety and directly applicable in
all Member States *
Done at Brus sels .
                                                   For the Council
                                                    The Président
 ---pagebreak---                                Proposal for a
                    REGULATION (EEC ) No       /75 OF TEE COUNCIL
       amending Regulation No 359A>7/EEC on the common organization of the
                                  market in rice
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and
in particular Article 43 thereof;
Having regard to the proposal from the Commission;
Having regard to the Opinion of the European Parliament ;
Whereas Article 9 of Council Regulation No 359/67/EEC ^ of 25 July 1967 on
the common organization of the market in rice , as last amended by Regulation
(EEC) No 668/75      provides for a discretionary production refund for broken
rice used by the starch industry for the manufacture of starch but does not
provide for the possibility of granting a refund for the production of broken
rice for use by the brewing industry in the manufacture of beer as from 1
September 1975}
Whereas the absence of such a refund oould in the circumstances likely to obtain
disturb the balance between the cost of supplying the brewing industry with maize
starch and maize groats and meal on the one hand and broken rice on the other;
therefore it appears necessary to provide for a discretionary refund for the
production of broken rice for use by the brewing industry in the manufacture of
beer;
HAS ADOPTED THIS REGULATION :
1 ) OJ No 174» 31.7.1967 » P. 1 .
2) OJ No L 72 , 20.3.1975 » P « 18
 ---pagebreak---                                  Article 1
Article 9 ( l ) of Regulation No 359/67/EEC nhsll be replaced V the following:
1.  A production refund may be granted for broken rice used
    a) in the manufacture of starch
    b) by the brewing industry for the production of beer.
                                 Article 2
This Regulation shall enter into force on 1 September 1975 *
This Regulation shall be binding in its entirety and directly applicable in all
Member States .
Done at Brusaels ,
                                                         For the Council
                                                           The Président
 ---pagebreak---                                Proposai    for a
                    REGULATION ( ESC ) NO        OP THE COUNCIL
              on production refunds in the cereals and rice sectors
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community;
Having regard to Council Regulation No I20/67/EEC ^ of 13 June 1967 on the
common organisation of the market in cereals , as last amended by Regulation
(EEC ) No 665/75      and in particular Article 11 ( 3) thereof;
Having regard to Council Regulation No 359/67/EEC ^ of 25 July 1967 on the
common organisation of the market in rice , as last amended by Regulation (EEC )
No 668/75 ^ t       in particular Article 9(2) thereof;
Having regard to the proposal from the Commission ;
Whereas , on account of the special situation on the market in starches and , in
particular , the need for the starch industry to ensure that its prices are
competitive with those of substitute products , Regulation Nos I20/67/EEC and
359/67/EEC provided for the granting of a production refund , in order that the
starch industry might obtain the basic products it requires at a lower price
than that which would result from the application of the rules of the common
organisation of the markets in the products in question ;
                                   from the level of common prices and
Whereas an assessment of the situation resulting/from the competition between ,
on the one hand maize starch , rice starch and potato starch and on the other ,
the substitute chemical products , indicates that the production refund on maize
used in starch manufacture should be fixed at 0.925units of account per 100
kilogrammes ; whereas a production refund of 1.510 units of account per 100 kilo­
grammes of common wheat and of I.140 units of account per 100 kilogrammes of
broken rice used for starch manufacture ensures a proper balance between the
use of these products and the use of maize ; whereas , however , the level of the
abovementioned refunds should be guaranteed only insofar as the price of the
basic products on the world market is situated below the threshold price for
each of these products ;
1 ) OJ No   117 , 29.6.1967 , p. 2269/67 .
2 ) OJ No L 72 , 20.3.1975 » P. 14 .
3 ) OJ No 174 , 31.7.1967 , P. 1 .
4 ) OJ No L 72 , 20.3.1975 , P. 18 .
 ---pagebreak--- Whereas on account of the connection between the production prices of the raw
materials used in the manufacture of cereal and potato starches and of the
interchangeability of these two products , a "balanced relationship should he
maintained between the prices of these products ; whereas the refund granted
should therefore be the same for both of these products ; whereas , however ,
the refund paid to producers of potato starch should be such as to assure
Community potato producers of a price allowing them a fair income , while the
market conditions for cereals used in starch manufacture and the common market
organisations governing them are such as to ensure that their price is in fact
held at the level of the threshold price ; whereas steps should therefore be
taken to ensure that potato producers ultimately benefit from the refund paid
to producers of potato starch ;
Whereas the level of the production refund to be granted on maize used by the
maize industry in the manufacture of groats and meal for use by the brewing
industry in the production of beer , and on broken rice used for the same purpose
should be such as to achieve a balance between the cost of supplying the brewing
industry with maize starch , on the one hand , and with maize groats and meal and
broken rice , on the other} whereas this objective will be achieved by fixing the
refund on maize for the manufacture of groats and meal at the sane level as the
refund on maize for the manufacture of starch and , also , by fixing the refund on
                                   1.140
broken rice used for brewing at / units of account per 100 kilogrammes ;
Whereas the refund to be granted on groats and meal for the manufacture of glucose
by the process known as direct hydrolysis should be fixed at such a level as to
achieve a balance between glucose manufactured by such a process and glucose
manufactured from starch ;
Whereas , in the event of appreciable and persistent variations in the world price
of maize , common wheat and broken rice , these refunds should be limited , so long
as world market prices remain high , in such a way as to deter imports at prices
below the world market level and to prevent the financial burden of production
refunds from becoming excessive ;
Whereas the abovementioned measures should not disturb the markets in third
countries ; whereas , therefore , in the event of an appreciable and persistent
increase in prices on the said markets , provision should be made for conpensa^-
tory measures consisting of the charging of a levy on exported products with a
view to reducing the advantages granted to Community manufacturers to an appro­
priate level ;
 ---pagebreak--- Whereas under Article 57 of the Act of Accession       ' in fixing the level of the
various elements of the price and intervention system , except for intervention
prices | account is to be taken for the new Member States to the extent necessary
for the proper functioning of Community rules , of the difference in prices ex­
pressed by the compensatory amount } whereas , however , for the application of this
provision, the compensatory amount may be reduced in accordance with Article 7
of Council Regulation (EEC) No 229/73 ^ of 31 January 1973 laying down general
rules for the system of compensatory amounts for cereals and fixing these for
certain products , as last amended by Regulation (EEC ) No 2518/74        and Article
5 of Council Regulation (EEC) No 243/73 ^ of 31 January 1973 laying down general
rules for the system of compensatory amounts for rice and fixing these amounts for
certain products, as last amended by Regulation (EEC) No 1999/74 ^ of 29 July 1974
Whereas Council Regulation No 1132/74 ^of 29 April 1974 on production refunds in
the cereals and rice sectors , as last amended by Regulation (EEC ) No 3113/74
has frequently been amended; whereas , for reason of clarity, it is preferable to
publish the provisions relating to production refunds on cereals and rice in a
new Regulation}
HAS ADOPTED THIS REGULATION :
                                       TITLE I
                        Production refunds on cereal starch
                                      Article 1
1 * Member States shall grant a production refund on maize for the manufacture
of starch of /^. unit of account per 100 kilogrammes less any accession compen­
satory amount applicable *
2 . Member States shall grant a production refund on common wheat for the manu­
facture of starch of / units of account per 100 kilogrammes , less any compen­
 satory amount applicable .
 1 ) OJ No L 73 , 27.3.1972 , p . 14.       6 ) OJ No L 128 , 10.5.1974, p . 24.
 2 ) OJ No L 27 , 1.2.1973, p. 25.          7) OJ No L 332 , 12.12.1974, P» 1 »
 3) OJ No L 270, 5.10.1974, P-
 4) OJ No L 29 , 1.2.1973, p. 26 .
 5 ) OJ No L 209 , 31.7.1974, P. 5-
 ---pagebreak---                                       - 4 -
3.     Member States shall grant a production refund on "broken rice for the manufac­
ture of starch of 1*140 units of account per 100 kilogrammes less any accession
compensatory amount applicable .
                                   TITIfi  II
                             Production refunds on potato starch
                                   Article 2
Member States shall grant a production refund of 1 .490 units of account per 100
kilogrammes of potato starch , in accordance with the provisions of Articles 3 and
 9.
                                   Article 3
1.     The price to be paid to the producer at the delivered-to-factoxy stage for the
quantity of potatoes required to manufacture 100 kilogrammes of potato starch shall
be equal to the amount of the production refund mentioned in Article 2 , increased
by an amount of not less than 15 » 6o8 units of account .
2.     The production refund shall be caloalated on the basis of the quantity of pota­
toes delivered to starch manufacturers , account being taken of the starch content
of the potatoes at the time of delivery .
It shall be paid in full to the starch manufacturer if he furnishes proofs
- of the quantities of potatoes delivered to him and their starch content at the
    time of delivery;
- of payment to the producer of an amount not less than the price fixed in paragraph
    1 , account being taken of the starch content of the potatoes .
Where the price to the producer is less than the minimum referred to in the second
indent of the preceding subparagraph , the refund paid to the starch manufacturer
shall be reduced by the difference in question .
                                       TITLE   III
                           Production refunds on maize groats and
                                    meal and broken rice
                                       Article 4
 1 . Member States shall grant a production refund on maize used by the maize mdu–
 ---pagebreak---                                         - 5 -
 stry for the manufacture of groats and meal used by the brewing industry in
 the production of beer equal to the refund granted on the same date on maize
 for starch manufacture .
 2.   Member States shall grant a production refund on broken rice used by the
 brewing industry in the production of beer ofl . 140 units of account per 100
 kilogrammes less any accession compensatory amount applicable .
                                     Article 5
 Member States shall grant a production refund on maize groats and meal for the
 manufacture of glucose under subheading 17.02 B II of the Common Customs Tariff ^
 by the process known as direct hydrolysis .
 The production refund per 100 kilogrammes of maize groats and meal so used shall be
1.13d units of account less any accession compensatory amount applicable .
                                     Article 6
 Member States shall take all necessary measures to ensure that the refunds men­
 tioned in Articles 4 and 5 are limited to the quantities of maize groats and
 meal and broken rice actually used in the Community by the brewing industry in
 the production of beer or by the glucose industry.
                                     TITLE   IV
                              General provisions
                                     Article 7
 1.    If the prices of the basic products mentioned in Article    1  show
 appreciable and persistent variations on the world markets in relation to
                                           their respective threshold prices less the
 production refund , the production refunds specified in Articles l t 2 and 4
            may be altered by the Council acting on a qualified majority on a
 proposal from the Commission .
 2.    If the world market price of maize , common wheat or broken rice appreciably
 and persistently exceeds its respective threshold price      less the production refund ,
  an export levy shall be introduced for
  l ) Pursuant to Regulation No 189/66/EEC , the products falling within tariff subheading
      17.02 B I are subject to the same arrangements as those laid down for products
      falling within subheading 17.02 B II .
 ---pagebreak---                                     - 6 -
products falling within headings 11.08 A , 11.09 , 17.02 B II , 17.05 B and 23.03
A I of the Common Customs Tariff to compensate for the difference between prices
on the world market and the amounts referred to in the previous paragraph relating
to the "basic products concerned. The Commission shall fix the export levy.
                                 Article 8.
Member States shall inform the Commission not later than four months after the
end of the marketing year of the quantity of products for which production
refunds have been paid.
                                 Article 9
Detailed rules for the application of this Regulation shall be adopted in
accordance with the procedure laid down in Article 26 of Regulation No
I20/67/EEC and Article 26 of Regulation No 359/^7/EEC in particular as regards :
a) the export levy referred to in Article 7 ( 2 );
b) the granting of advances on production refunds which may involve the giving
   of security;
c) the calculation , in accordance with a scale drawn up in tenns of the starch
   oontent of the product , of the quantity of potatoes required to manufacture
   100 kilogrammes of starch;
d) the conditions under which potatoes are accepted and paid for and the condi­
   tions under which the proof mentioned in the second subparagraph of Article
   3 ( 2 ) must be furnished.
                                 Article 10
Regulation (EEC ) No 1132/74 is hereby repealed.
                                 Article 11
This Régulation shall enter into force :
- on 1 August 1975 » for products covered by Regulation No 120/67/EEC ,
– on 1 September 1975 » for products covered by Regulation No 359/67/EEC .
  This Regulation shall be binding in its entirety and directly applicable
  in all Member States .
  Done at Brussels .                                      For the Council
                                                            The Président