CELEX: 51989PC0116
Language: en
Date: 1989-03-16
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1418/76 on the common organization of the market in rice (presented by the Commission)

ARCHIVES HISTORIQUES
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COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (89) 116
Vol. 1989/0035
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                     COM(89 ) 116 final
                                     Brussels /16   March 1989
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                            Proposal for a
                       COUNCIL REGULATION ( EEC )
         amending Regulation ( EEC ) No 1418 / 76 on the common
                 organization of the market in rice
                    ( presented by the Commission )
 ---pagebreak---                                                                        41c
                                                                       41C /  ±
                                EXPLANATORY MEMORANDUM
l. Reunion qualifies for special import arrangements for rice owing to the
   importance of this product in the population 's diet ( 80 kg per inhabitant ,
   i.e. approximately 20 times the pro capita consumption recorded for the
   rest of the Community ). Reunion has no domestic production .
   Imports of rice into Reunion are governed by a provision derogating from
   the basic Regulation on rice (Article 11a of Regulation ( EEC ) No 1418 / 76 ).
   The arrangements provide :
   ( a ) for imports from non-member countries : for a derogation from the
         normal levy arrangements permitting :
           (i)  for husked rice , total exemption from the levy ;
         ( ii ) for milled rice , limitation of the levy to the amount to protect
                the industry only ( 13,90 ecu/ t ).
   ( b ) for consignments of Community origin : for a subsidy equal :
           (i)  for husked rice : to the amount of the levy on husked rice ;
         ( ii ) for milled rice , to the amount of the levy on milled rice minus
                the amount for the protection of the industry ( 13,90 ecu / t ).
                                                                                 г
 ---pagebreak---                                              2
   2.   The application of the arrangements raises two problems :
        -   the lack of adequate protection to ensure the competitiveness of the
            Reunion industry in the face of imports of wholly milled rice .
            the automatic mechanism laid down as regards the amount of the subsidy
            to consignments of Community origin , which has resulted in excessive ,
            unwarranted subsidies being granted by law .
   3.   This proposal for a Regulation amends the existing arrangements as regards
        imports of milled rice into Reunion and the amount of the subsidies for
        consignments of Community origin . The following adaptations are proposed :
            milled rice will be subject to the normal levy multiplied by a
            coefficient of 0,30 ; the amount thus obtained should protect the
            existence and allow for the development of the Reunion rice industry ;
        -   the amount of the subsidies for consignments of Community origin will
            be fixed periodically in accordance with the management committee
            procedure and on the basis of the same general criteria applying for
            the fixation of the export refunds .
            This proposal does not affect the special provisions for eh ACP States or the
           overseas countries and territories laid down in Regulation ( EEC ) No 486 /85 (1 )
           for supplies of rice to Reunion ,
       The proposed measures and in particular the amendment of the mechanism for
       fixing the subsidies will bring about budget savings .
( 1 ) 0J No L 61 , 1.3.1985 , p. 4
                                                                                 J
 ---pagebreak---                                      - 3 -
k. When this amendment to Regulation ( EEC ) No 1418 / 76 is adopted , provision
   should be made for the updating of the Combined Nomenclature codes
   following the latest amendment which came into force on 1 January 1989 .
   This adaptation is purely formal and entails no consequences .
                                                                                 H
 ---pagebreak---                                       Proposai for a
                          COUNCIL REGULATION ( EEC )
                     amending Regulation ( EEC ) No 1418 / 76 on the
                      common organization of the market in rice
  THE COUNCIL OF 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 ,
 Having regard to the opinion of the Economic and Social Committee ,
Whereas the classification of rice was amended by Council Regulation ( EEC )
            1    .       .         ...        .....            _ _2
No 3877 / 87 ; whereas Annex I to Council Regulation ( EEC ) No 2658 / 87 cf 23 July 1987 on the
tariff and statistical nomenclature and on the Common Customs Tariff was accordingly
amended by Regulation ( EEC ) No 3174 / 88"’ ; whereas the Combined Nomenclature codes
                                                             L
in Article 1(1 ) of Council Regulation ( EEC ) No 1418 / 76 , as last amended by
Regulation ( EEC ) No 2229 / 88 "> , should therefore be updated ;
 Whereas Article 11a of Regulation ( EEC ) No 1418 / 76 lays down measures
 derogating from the levy arrangements provided for in Article 11 of that
 Regulation and in particular the collection of a levy on imports of milled
 rice , reduced to the amount for the protection of the industry ;     whereas the
 reduction of the levy to the amount for the protection of the industry is
 insufficient to ensure the competitiveness of the Reunion rice industry ;
 whereas the arrangements for imports of milled rice into Reunion should be
 amended as regards the collection of the levy ;
1 0J No L  365, 24.12.1987, p.1 .
20J  No L  256, 7.9.1987, p.1 .
30J  No L  298, 31.10.1988, p.1 .
40J  No L  166, 25.6.1976, p.1 .
50J  No L  197, 26.7.1988, p.30 .
 ---pagebreak--- Whereas the subsidy arrangements provided for in Article lla(4 ) of Regulation
( EEC ) No 1418 / 76 do not permit direct control of the trend in the amount of
the subsidy on the basis of the prices or quotations on the Community market ;
whereas periodical fixing of the subsidy would permit the amount to be adapted
more closely to the requirements of the Community market on the one hand and
to the supply requirements of the Reunion market on the other hand ,
HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                             3
                                        Artide 1
Regulation ( EEC ) No 1418 / 76 is hereby amended as follows :
1.  Article 1(1 ) is replaced by the following :
    "1 . The common organization of the market in rice shall comprise a price
         and trading system and shall cover the following products :
                 CN code             :             Description
         : ( a ) 1006 10 21          : Rice in the husk
                 1006 10 23
                 1006 10 25
                 1006 10 27
                 1006 10 92
                 1006 10 94
                 1006 10 96
                 1006 10 98
                 1006 20             : Husked ( brown ) rice
                 1006 30             : Semi-milled or wholly milled rice ,
                                     : whether or not polished or glazed
         : (b ) 1006 40 00           : Broken rice
         : (c ) 1102 30 00           : Rice flour
                 1103 14 00          : Groats and meal of rice
                 1103 29 50          : Pellets of rice
                 1104 19 91          : Flaked rice
                 1108 19 10          : Rice starch
                                                                             9
 ---pagebreak---                                          - 4 -
2. Article 11a is replaced by the following :
    " Article 11a
   1 . This Article shall apply to products intended to be consumed in the
        French overseas department of Reunion .
   2 . Notwithstanding Article 11 ( 1 ) ( a ), ( b ), ( c ), ( d ) and ( i ), no
        levy shall be charged on imports of products falling within subheadings
        1006 10 ( excluding 1006 10 10 ), 1006 20 and 1006 40 00 into the French
        overseas department of Reunion .
   3 . Notwithstanding Article 11(1)(e ), ( f ), ( g ) and ( h ), the levy
        to be charged on imports of products falling within subheading 1006 30
        into the French overseas department of Reunion shall be multiplied by a
        coefficient of 0,30 .
   4 . A subsidy may be fixed for consignments to the French overseas
        department of Reunion of products falling within heading 1006 excluding
        subheading 1006 10 10 which come from the Member States and are in one
        of the situations referred to in Article 9(2 ) of the Treaty .
        That subsidy shall be fixed on the basis of the difference between the
        prices or quotations of the relevant products on the world market and
        the prices or quotations of those products on the Community market .
        The subsidy shall be granted on application by the party concerned .
        The subsidy shall be fixed periodically in accordance with the
        procedure laid down in Article 27 . However , where the need arises , the
        Commission may , at the request of a Member State or on its own
        initiative , alter the subsidy in the interval .
                                                                                  ?
 ---pagebreak---     5 . The regulations on the financing of the common agricultural policy
        shall apply to the subsidy provided for in paragraph 4 .
    6 . The detailed rules for the application of this Article shall be adopted
        in accordance with the procedure laid down in Article 27 ."
                                     Article 2
This Regulation shall enter into force on the third day following that of its
publication in the Official Journal of the European Communities .
It shall apply from
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                                For the Council
 ---pagebreak---             FINANCIAL            STATEMENT                    :-
                                                              : Date :
 1 . Budget heading : 1041 Revenue                 Appropriations : 27 m ecu
                                                                       1 48 .. ra ecu
 2 . Title : Council Regulation amending Regulation ( EEC ) No 1418 /86 on the common
               organization of the market in rice
 3 . Legal basis : Treaty establishing the European Economic Community , and in
                     particular Article 43 thereof
4 . Aims of project : To amend the existing arrangements as regards imports of
                         milled rice into Reunion and the amount of subsidies for
                         deliveries of Community origin
                                                 period of        current               following
                                                 12 months     financial year         financial year
5.       Financial implications                                    ( 1989 )               ( 1990 )
5.0      Expenditure
         - charged to the EC budget               - 12,1               -                      -
5.1      Receipts
                                                  p.m . ( 1 )          -
                                                                                            p·m·
                                                   1991              1992
5.0.1 Estimated expenditure                       - 12,1             - 12,1
5.1.1 Estimated receipts                            p.m .                p · ID ·
5.2 Method of calculation :
          Current expenditure :       35 000 t x 615 ecu/ t x 1,084 (DR ) = 23,3 m ecu
          Future expenditure : ( 2 ) 15 000 t x 300 ecu/ t x 1,084 ( DR ) )          4,9 m ecu
                                ( 3 ) 20 000 t x 300 ecu/ t x 1,057 ( DR ) )         6,3 m ecu
                                                                Difference        - 12,1 m ecu
6.0 Can the project be financed from appropriations entered in the relevant chapter
        of the current budget ?                                                             yes
6.1 Can the project be financed by transfer between chapters of the current budget ?
6.2 Is a supplementary budget necessary ?                                                        no
6.3 Will future budget appropriations be necessary ?                                       yes
Observations :
    ( 1 ) Current revenue comes from the levy collected on imports of milled rice and is
          marginal . The application of this measure will have financial consequences on
          the revenue , which cannot be expressed in figures and is also marginal .
    ( 2 ) Estimate of rice consigned to the overseas department of Reunion after the
          application of the measure .
    ( 3 ) Remainder of rice exported to non-member countries .
                                                                                                 Ao
 ---pagebreak---                          FICHE 0 ' IMPACT SUR LA COMPETITIVITE ET L' EMPLOI
     I.     Quelle est la justi f i cat ion principale de la mesure ?
        - AdaDtation des codes de la N.C.
   ■    - Meilleure protection de l' industrie commerciale
        - Eviter des opérations commerciales spéculatives
   II .     Caractéristiques des entreprises concernées . En particulier :
            ( a ) Y a - t - i l un grand nombre de PME ?    NON
            ( b ) Note - t - on des concentrations dans des régions
                  i . éligibles aux aides régionales des Etats membres ?
                 11 . éligibles au Feder ?
     a
  III . Quelles sont les obligations imposées directement aux entreprises ?
                    Aucune nouvelle obligation
  IV .     Quelles sont les obligations susceptibles d' être imposées indirectement
           aux entreprises via les autorités locales ?
                      Aucune
 V.       Y a - t - il des mesures spéciales pour les PME ?             '*    Lesquelles ?
 VI .     Quel est l' effet prévisible
         a) sur la compétitivité des entreprises ?
              L' industrie locale est plus protégée et elle peut mieux se développer .
         b) sur L 'emploi ?         /
VII . Les partenaires sociaux ont -ils été consultés ?             NON      Quels sont leurs
         avis ?