CELEX: 51974PC0329
Language: en
Date: 1974-05-27
Title: Proposal for a REGULATION of the council laying down special provisions applicable to trade in tomato concentrates between the Community as originally constituted and the new Member States (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 329
Vol. 1974/0058
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 ---pagebreak--- COMMISSION CF THE! EUP.OEHAN COMMUNITIES
                                            COM(74)329 final
                                            Brussels , 27 May 1974
                                Proposal for a
                           REGULATION of the council
            laying down special provisions applicable to trade in
           tomato concentrates "between the Community as originally
                    constituted and the new Member States
                ( submitted to the Council by the Commission)
   CCM(74) 329 final
 ---pagebreak---                        EXPLANATORY              MEMORANDUM
 1.           In a normal market situation , the prices for tomato concentrates
 in the new Member States would be substantially lower than those in the
Community as originally constituted .
2.           In orderto protect the competitive position of producers in the
old Member States on the markets in the new Member States , it was agreed ,
when a compromise was reached concerning the establishment of a common trade
system for products processed from fruit and vegetables , that the Commission
would draw up a proposal making provision for the grant of refunds on exports
of tomato   concentrates to the new Member States .     The refunds , to be gran­
ted in the form of compensatory amounts , would be phased out in annual stages
over the course of the transitional period .
3.           A provision must be included to specify how the compensatory
amounts are to fit into the present financing arrangements .      As regards
compensatory amounts granted or levied in trade between old and new Member
States , it is proposed that , for the purposes of the financing of the common
agricultural policy , such amounts should be regarded as intervention inten­
ded to stabilise the market .      As regards exports to third countries , it is
proposed that the compensatory amount be deducted from the corresponding
export refund (where the refund is equal to or greater than the compensatory
amount ). It should be noted that there is no provision for a compensatory
amount to be levied on imports from third countries .
4.           As_ rc_gards the_ J'in^cialjsffects , in practice only exports of
tomato concentrates from the old to the new Member States are of any impoi*-
tance   Assuming annual exports of 5«000 "t and a compensatory amount of 9
u.a. /lOO kg ( present level of the refund additional ), expenditure would
amount to 450*000 u.a . for a 12 month period ( and in fact this figure corres­
ponds to the expenditure on refund before 1 February 1973 )* Allowing for
the proposed reduction of compensatory amounts ( 80$ from 1 July 1974 » etc .),
additional expenditure is expected to amount to some 400.000 u.a . in 1974
 ---pagebreak---                                                        2»
and to some 3o»C00 u.a. in 1$75 »     This expenditure could be charged
against Chapter 68 - Fruit and 'Vegafbleg f Article" 5&12 - Other inter­
ventions , of the Budget of the European Communities# .
Chapter 68 t 1973    Appropriations     –  63*460.000 u.a.    ' '     "
                     Utilization      •    34*490.348 u.a#
               1974  Appropriai ions . -   68.100.000 u.a .              ,
             i
The expenditure which would result from the proposed measure represents
only 0,7$ of the appropriations provided for tinder this Chapter and is
thus well within the margin allowed for in the multiannual "budgetary-
estimates .
 ---pagebreak---                                Pfropos&l for a
                          REGULATION OP THE COUNCIL
laying down special provisions applicable to trade in tomato concentrates
between the Community as originally constituted and the new Member States
                          THE COUNCIL OP THE EUROPEAN COMIUNITIES ,
                          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 in normal circumstances the price for tomato concentrates in the
Community as originally constituted is substantially higher than on the
world market ; whereas this difference in prices could harm the competitive
position on the markets of the new Member States of producers in the Com­
munity as originally constituted ;
Whereas the situation is likely to jeopardize the aims of the common agri­
cultural policy as laid down in Article 39 of the Treaty ; whereas , to
remedy the position , special measures must be taken to safeguard the com­
petitive position on the markets of the new Member States of producers in
the Community as originally constituted :
 ---pagebreak--- vJli'- rec-s compensatory amounts should therefore "be introduced for tomato con­
centrates , to be granted or levied in trade between the new Member States
and the Community as originally constituted or third countries ; whereas , '
however , it will suffice if such compensatory amounts are applied only
where a refund is granted pursuant to article 3a of Council Regulation (EEC )
No 865/68*' of 28 June 1968 on the common organization of the market in pro­
ducts processed from fruit and vegetables :
                                              1
whereas the compensatory amounts should be phased out as the Common Customs
Tariff duties are progressively introduced in the new Member States ;
Whereas provision should be made to ensure that the said amounts are accounted
for under the arrangements for the finanoing of the common agricultural
policy;
                               HAS ADOPTED THIS REGULATION :
Article 1
               . Where in respect of tomato concentrates falling within subheading
No 20,02 of the Common Customs Tariff an export refund is granted pursuant
to Article 3a of Regulation (EEC ) No 865/68 , then f in ojwIqj? to
to offset existing price differences in trade between the new Member States
and' the Community as originally constituted or between the hew liember
States arid third countries , as system of compensatory amounts as set out
in the following Articles shall be applied .
Article 2
                 In intrar-Community trade , the Memtrer States of the Community as
originally constituted shall        -             t"
– levy compensatory amounts on imports from the new Member States ;
– grant compensatory amounts on exports to tho new Kember States# . . , ■         .
( 1 ) OJ No L 153 , 1.7.1968 , p. 8
 ---pagebreak---                                                              3.
Article 3
         In the o.-se of exports from the new Member States to third countries ,
the export refund shall "be equal to the difference between the refund refer­
red to in Article 1 and the compensatory amount •
Article 4
         Until 30 June 1974 » the compensatory amount shall be equal to the
export refund referred to in Article 1 .   After that date , the compensatory
amount shall be progressively reduced in five stages .
The five reductions shall be such as to reduce "the level of the compensatory
amounts to 80 , 60 , 40, 20 and 0$ respectively of the said refunds and shall
be made on :
            1 July 1974
            1 July 1975
            1 July 1976
            1 July 1977
            1 January 1978
Article 5
         The compensatory amount applicable shall be that in force on the
day of importation or exportation .
Article 0
         Such detailed rules as may be necessary for the application of this
Regulation shall be adopted in accordance with the procedure laid down in
Article 15 of Regulation (SEC ) No 865/68.
Article 1
1.       The compensatory amounts as provided for in Article 1 , which are levied or
granted in trade between the Member States, shall be regarded for the pur­
poses cf the financing of the common agricultural policy as intervention
intended to stabilise the agricultural markets .
2.       Such detailed rules as may be necessary for the application of this
Article shall be adopted in accordance with the procedure laid down in
Council Regulation (EEC ) No 729/70^^ of 21 April 1970
(1 ) OJ No L 94 , 28 April 1970 , p. 13
 ---pagebreak---                                                         4.
Article 8
            This Regulation shall enter into force on the day following
its publication in the Official Journal of the European Communities#
            This Regulation shall be binding in its entirety and directly
applicable in all Member States .
                                          Done at Brussels ,
                                          Pbr the Council
                                          The President