CELEX: 31973R0648
Language: en
Date: 1973-03-01 00:00:00
Title: Regulation (EEC) No 648/73 of the Commission of 1 March 1973 laying down detailed rules for the application of 'monetary' compensatory amounts

9 . 3 . 73                              Official Journal of the European Communities                            No L 64/ 1
                                                                I
                                             (Acts whose publication is obligatory)
                                REGULATION (EEC) No 648/73 OF THE COMMISSION
                                                       of 1 March 1973
                 laying down detailed rules for the application of 'monetary' compensatory amounts
THE COMMISSION OF THE EUROPEAN                                     and third countries ; whereas ( a) now applies to
COMMUNITIES ,                                                      Germany and the Benelux countries while ( b ) applies
                                                                   to France and Italy ;
Having regard to the Treaty establishing the Euro­
pean Economic Community ;
                                                                   Whereas, pursuant to Article 1 ( la ) of the same
                                                                   Regulation, if an exchange rate other than that
Having regard to Council Regulation ( EEC ) No                     corresponding to the parity of the currency of a
974/71 (*) of 12 May 1971 on certain measures of                   Member State is used for the purpose of conversions
conjunctural policy to be taken in agriculture                     between units of account and that currency, Article
following the widening of the margins of fluctuation               1 ( 1 ) applies by analogy where, for the currency in
for the currencies of certain Member States , as last              question , the average spot market rate during a
amended by Regulation (EEC ) No 509 /73 ( 2 ), and                 period to be determined differs by at least 1 % from
in particular Article 6 thereof ;                                  the exchange rate used ; whereas this applies at
                                                                   present to the English pound and the Irish pound ;
Having regard to the Opinion of the Monetary Com­
mittee ;
                                                                   Whereas , however, pursuant to Article 2a of that
                                                                   Regulation , the compensatory amounts thus calculated
Whereas Article 1 ( 1 ) of Regulation ( EEC ) No 974/71            for each Member State are subtracted from each
provides that if, for the purposes of commercial                   other or added to each other as the case may be ;
transactions, a Member State allows the exchange                   whereas they are levied on imports or granted on
rate of its currency to fluctuate by a margin wider                exports by that Member State of the two Member
than the one permitted by the international rules in               States concerned whose currency has appreciated
force on 12 May 1971 ,                                             most or depreciated least in relation to the percentage
                                                                   differences used to calculate compensatory amounts ;
( a ) the Member State whose currency has appreciated
      by more than the margin of fluctuation should
      levy compensatory amounts on imports and grant               Whereas it should be stressed that compensatory
      compensatory amounts on exports ,                            amounts are essentially quite different from levies
                                                                   and refunds ;
( b ) the Member State whose currency has depreciated
      by more than the margin of fluctuation should
      levy compensatory amounts on exports and grant
      compensatory amounts on imports                              Whereas , for the purpose of applying Article 1 ( la )
                                                                   and Article 2 ( 1 ) of that Regulation, it is necessary
of agricultural products and products obtained from                to specify the period during which the spot market
agricultural products in trade with Member States                  rates which will ultimately be averaged for the
                                                                   purpose of calculating compensatory amounts should
                                                                   be recorded ; whereas the period chosen must be
                                                                   sufficiently representative of the movement of
(») OJ No L 106, 12 . 5 . 1971 , p. 1 .                            exchange rates and at the same time allow these
(2 ) OJ No L 50, 23 . 2 . 1973 , p. 1 .                            rates to be followed as closely as possible when
 ---pagebreak--- No L 64/ 2                               Official Journal of the European Communities                              9 . 3 . 73
compensatory amounts are fixed ; whereas in principle               declared their unwillingness to apply compensatory
a period of 7 days chosen in the light of administrative            amounts in trade with each other ; whereas, as far
considerations would serve ;                                        as trade is concerned, this arrangement made
                                                                    within the framework of the economic union between
                                                                    Belgium, Luxembourg and the Netherlands cannot
Whereas the most representative spot market rates                   operate properly unless the compensatory amounts
should be used for the calculation ;                                applicable in these three Member States are identical ;
                                                                    whereas an arrangement should therefore be made,
                                                                    pursuant to Article 233 of the Treaty, whereby
Whereas calculation of compensatory amounts                         uniform compensatory amounts could be fixed for
should be based on single prices ; whereas this                     these three Member States ; whereas they should be
solution does however pose problems in trade in                     considered as a single Member State ;
agricultural products with the new Member States
where price levels are, generally speaking, lower
than the single prices ruling in the original Member
States ; whereas this difference is compensated by                  Whereas , in the interests of harmonization, the day
the compensatory amounts introduced by Article 55                   of importation for the purpose of applying
of the Act 0 ) annexed to the Treaty ( 2 ) concerning               compensatory amounts should be the day of
the Accession of new Member States to the European                  importation used for the purpose of determining
Economic Community and the European Atomic                          customs duties and levies and the day of exportation
Energy Community, signed at Brussels on 22 January                  should be the day of exportation used for the purpose
 1972 , or, where the levy is less than these                       of determining export refunds ;
compensatory amounts , by an amount applicable by
way of compensatory amount ( both of these amounts
are      referred    to     hereinafter    as    ' " accession "    Whereas, before the compensatory amount can be
compensatory amounts '); whereas allowance must be                  paid in respect of a product exported to another
made for this situation by increasing or reducing the               Member State, proof must be given that the product
' accession ' compensatory amount in the light of the               has left the geographical territory of the Member
monetary situation of the Member States in question ;               State in which customs export formalities were
                                                                    completed ;
Whereas the situation as regards trade with third
countries is somewhat analogous to that of trade
with the new Member States ; whereas the same                       Whereas the system provided for by this Regulation
method of calculation should therefore be used ;                    can only apply to products which are in free
                                                                    circulation within the Community ; whereas products
                                                                    in respect of which a compensatory amount is
Whereas Article 4a ( 2) of Regulation (EEC) No                      granted on export must be of a quality which per­
974/71 limits the 'monetary' compensatory amount                    mits of their being marketed under normal con­
applicable as a result of the depreciation of a                     ditions ;
currency to the level of charges levied on imports
from third countries ; whereas, to ensure that this
provision is complied with, provision must be made
for the fixing at regular intervals by the Commission               Whereas, if the compensatory amount to be applied
of the amount by which the ' monetary' compensatory                 is to vary according to Member State, provenance
amount should , where appropriate, be reduced ;                     and destination, it will be necessary to verify which
                                                                    compensatory amount has been applied to a given
                                                                    product; whereas, to this end , it is essential that
Whereas Belgo-Luxembourg Economic Union and the                     special particulars be entered on the movement
Netherlands have agreed to maintain between their                   documents ;
currencies the margins of fluctuation valid before
9 May 1971 ; whereas , therefore, for these Member
States the widening of the margins of fluctuation                   Whereas, for administrative reasons, applications for
only effects trade with other Member States and third               payment of compensatory amounts must be lodged
countries, intra-BLEU trade and trade between BLEU                  within a reasonable period of time ;
and the Netherlands being unaffected ; whereas the
Member States in question have for this reason
                                                                    Whereas the import charge on certain agricultural
                                                                    products subject to the compensatory amounts
(>) OJ No L 73 , 27. 3 . 1972, p. 14 .                              system is increased if a lower price limit is not
( 2 ) OJ No L 73 , 27. 3 . 1972 , p. 5 .                            respected on importation ;
 ---pagebreak---  9 . 3 . 73                                Official Journal of the European Communities                             No L 64/ 3
 Whereas , in view of the obligation to apply the                     Whereas Commission Regulation ( EEC ) No
 parities declared to the International Monetary Fund ,                1013 /71 ("') of 17 May 1971 laying down detailed
 this means that when a currency appreciates the price                 rules for the application of Regulation ( EEC ) No
 ot" these products is increased ; whereas the price in               974/71 on certain measures of conjunctural policy to
 question expressed in the currency of Member States                  be taken in agriculture following the temporary
 which have taken the monetary measures in question                   widening of the margins of fluctuation for the cur­
 is increased in relation to that price expressed in the              rencies of certain Member States , as last amended by
 currency of third countries and whereas, in addition ,                Regulation ( EEC ) No 449 /73 ( 6 ), which has been
 a compensatory amount is levied on importation ;                     amended on numerous occasions , should be replaced
whereas when a currency depreciates on the other                      by a consolidated text which would retain only those
 hand , there is a danger that the lower price limit                  provisions which still apply ;
will not be respected ;
                                                                      Whereas the measures provided for in this Regulation
                                                                      are in accordance with the' Opinions of the
 Whereas this difficulty could be overcome by the                     Management Committees for Fruit and Vegetables,
 introduction of an arrangement whereby this lower                    for Wine, for Oils and Fats, for Cereals , for Pigmeat,
 price limit would be regarded as having been                         for Poultrymeat and Eggs, for Sugar, for Milk and
 respected where the offer price of a product supplied ,              Milk Products, for Beef and Veal, for Products
plus a sum reflecting the incidence of the monetary                   Processed from Fruit and Vegetables, for Tobacco ,
 situation on the limit in question, does not fall below              for Flax and Hemp, and for Fisherv Products ;
that limit ;
                                                                      HAS ADOPTED THIS REGULATION :
Whereas Article 14 of Council Regulation ( EEC ) No
805 / 68 (') of 27 June 1968 on the common
organization of the market in beef and veal, as last
                                                                                                 Article 1
amended by Regulation ( EEC ) No 187/73 ( 2 ), provides
for the total suspension of the levy on imports of
fro7.cn meat intended for the manufacture of certain                  This Regulation lays down detailed rules for the
preserves to ensure that the Community processing                     application of the system of compensatory amounts
industry can procure satisfactory supplies ;                          ( hereinafter called ' "monetary " compensatory
                                                                      amounts ') introduced by Article 1 of Regulation
                                                                      ( EEC ) No 974/ 71 .
Whereas, largely because there are no compensatory
amounts for products manufactured from this meat,
                                                                                                 Article 2
the Community processing industry has been placed
at a disadvantage vis-a-vis processing industries in
third countries ; whereas this situation should be                    The period referred to in the second subparagraph
corrected by suspending the levying of compensatory                   of Article 1 ( la) and the second indent of Article 2
amounts on this meat ;                                                 ( 1 ) of Regulation ( EEC) No 974/ 71 shall run from a
                                                                      Thursday to the following Wednesday . The first
                                                                      period to be taken into consideration shall be 15 to
                                                                      21 February 1973 .
Whereas this suspension should be subject to the
introduction of arrangements to ensure that the meat
is in fact processed ; whereas the arrangements                                                  Article 3
provided for in Council Regulation ( EEC ) No 888 /68
of 28 June 1968 (3 ) laying down general rules on
special import terms for certain frozen meats intended                The following spot market rates against the US dollar
for processing, as last amended by Regulation ( EEC)                  shall be used for the purpose of fixing compensatory
                                                                      amounts :
No 2725 /71 ( 4 ), could be used for this purpose,
provision being made for the lodging of a deposit
equal to the compensatory amount ;                                    ( a ) for the Belgian franc and the Luxembourg franc :
                                                                             the average official rate fixed each working day
                                                                             during official dealing hours on the Brussels
                                                                             foreign exchange market ;
(!)   OJ No L 148 , 28 . 6. 1968 , p. 24.
(2 )  OJ No L 25 , 30. 1 . 1973 , p. 23 .
(;i ) OJ No L 156, 4. 7. 1968 , p. 7 .                                (5) OJ No L 110, 18.5 . 1971 , p. 8 .
(4 )  OJ No L 282, 23 . 12 . 1971 , p. 5 .                            (") OJ No L 52, 25 . 2 . 1973 , p. 1 .
 ---pagebreak---  No L 64/4                            Official Journal of the European Communities                                    9 . 3 . 73
 (b ) for the German mark : the average official rate                  — if an ' accession ' compensatory amount applies ,
       fixed each working day during official dealing                      this shall be multiplied by a coefficient based
       hours on the Frankfurt foreign exchange market ;                    on the ' accession ' compensatory amounts
                                                                           applicable in trade with the Community as
 ( c) for the French franc : the average official rate                     originally constituted and the actual ratio
      fixed each working day during official dealing                       between the two currencies in question ; by
      hours on the Paris foreign exchange market ;                         way of derogation from this provision ,
                                                                           however, the ' accession' compensatory amount
 ( d) for the Italian lira : the mean of the official rates                shall be increased or reduced as the case may
      fixed each working day during official dealing                       be in trade between new Member States by
                                                                           an    amount      based    on   the   ' accession '
      hours on the Rome and Milan foreign exchange
      markets ;                                                            compensatory amount applicable in trade with
                                                                           the Community as originally constituted and
                                                                           the actual ratio between the two currencies
 (e) for the Dutch guilder : the average official rate                     in question ;
      fixed each working day during official dealing
      hours on the Amsterdam foreign exchange market ;
                                                                 ( b ) in trade with third countries, import charges and
                                                                       refunds    fixed  in   units  of  account    shall     be
 ( f) for the English pound and the Irish pound : the                  multiplied by a coefficient which reflects the
      average rates recorded at noon on the foreign                    monetary situation of the Member State in
      exchange markets of these Member States .                        question. This coefficient shall not be fixed in
                                                                       advance .
                            Article 4
                                                                                           Article 6
 1.     For the purpose of calculating the compensatory
amounts applicable in BLEU and the Netherlands ,                 1.      For the purposes of applying Article 4a (2 ) of
the percentage referred to in Article 2 ( 1 ) of                 Regulation ( EEC) No 974/71 the Commission shall
Regulation (EEC) No 974/71 shall be established on               fix the amounts by which the ' monetary ' com­
the basis of the arithmetic mean of the difference               pensatory amounts are to be ' adjusted'.
referred to in that paragraph for the Belgian franc
and the same difference for the Dutch guilder during
the period in question .                                         2.      The amounts fixed pursuant to paragraph 1
                                                                 shall be altered at regular intervals if this is rendered
                                                                 necessary by changes in the charge on imports from
2.      Compensatory amounts shall not apply in intra­           third countries .
BLEU trade or in trade between BLEU and the
Netherlands .
                                                                                           Article 7
                           Article S                              1.     In trade with third countries provisions con­
                                                                 cerning the granting of export refunds and the
 1.     A basic compensatory amount shall be fixed for           charging of customs duties and levies shall apply to
each Member State -for which the conditions set out              ' monetary' compensatory amounts .
in Article 1 of Regulation ( EEC ) No 974/71 are
fulfilled .
                                                                 2.      In trade between Member States, Articles 3 to 9
                                                                 shall apply.
2.      This basic amount shall apply in trade between
the Member States and in trade with third countries .
                                                                                           Article 8
3.      However,
                                                                  1.    The compensatory amount to be granted shall
                                                                 be the amount applicable on the day of exportation .
( a ) in intra-Community trade :
      — if the conditions set out in Article          1  of      The compensatory amount to be levied shall be the
          Regulation (EEC) No 974/71 are fulfilled in            amount applicable on the day of importation .
          respect of two Member States, the basic
          amount shall be multiplied by a coefficient
          based on the actual ratio between the two              2.     For the purposes of determining the com­
          currencies in question ;                               pensatory amount to be granted, the day of ex­
 ---pagebreak--- 9 . 3 . 73                           Official Journal of the European Communities                           No L 64/5
portation shall be the day on which the customs                 2.     No compensatory amount shall be granted for
authorities accept the exporter's declaration of his            products which are not of sound and fair marketable
intention, conditional upon receipt of a compensatory           quality, or for products which are intended for
amount, to export a Community product to another                human consumption whose characteristics or state
Member State . Following such acceptance, the                   render them wholly or practically unsuitable for that
products shall be placed under customs control until            purpose .
they leave the territory of the exporting Member
State .                                                                                 Article 11
Customs export formalities shall, for the purposes of           1.     In trade in products in respect of which a com­
this Regulation, be regarded as having been com­                pensatory amount is payable, section 32 of the
pleted when the declaration referred to above has               relevant Community transit document shall include
been accepted .                                                 one of the following entries :
The relevant date for establishing the quantity, nature         — montant compensatoire ' monetaire' (Etat membre
and characteristics of the product exported shall be                 de depart/Etat membre de destination )
the date on which customs export formalities are                — monetaert udligningsbelob ( Afsendelsesmedlems­
completed .                                                          stat/Bestemmelsesmedlemsstat)
                                                                — 'Wahrungsausgleichsbetrag' ( Abgangsmitglied­
3.       For the purpose of determining the compensatory             staat/Bestimmungsmitgliedstaat)
amount to be levied , the date of importation shall be
the date used for determining customs duties and                — ' monetary ' compensatory amount ( Member State
levies .                                                             of departure/Member State of destination )
                                                                — importo compensative ' monetario' ( Stato membro
                          Article 9                                  di partenza/Stato membro de destinazione )
                                                                — compenserend bedrag 'monetair' ( Lid-Staat van
 1.      Payment of a compensatory amount shall be                   vertrek/Lid-Staat van bestemming).
conditional upon proof that the product in respect
                                                                Where a movement certificate DD3 is used, one of
of which customs export formalities have been com­
pleted has left the geographical territory of the               the above entries must be made on page 2 of the
Member State in which the formalities were com­                 certificate .
pleted .
                                                                2 . Where Commission Regulation ( EEC) No 304/71
                                                                applies to carriage of the products in question , the
2.       However, where the compensatory amount to               entry required under paragraph 1 above shall be
be granted on exports to another Member State is                made in the 'Description of goods' section of the
higher than the compensatory amount, plus refund ,              International Consignment Note ( CIM ) or on the
to be granted on exports to third countries, payment            International Express Parcels Consignment Note ( TI
shall furthermore be conditional on proof that import           Ex) as appropriate. This entry shall be authenticated
formalities have been completed and that duties and             by the stamp of the customs office of departure .
 charges having equivalent effect due have been
 charged in the Member State of destination .                    3.     Where, in the case of products in respect of
                                                                which a compensatory amount is payable, the relevant
 The proof referred to in the preceding paragraph               Community transit document, International Consign­
 shall be furnished by production of a customs                  ment Note ( CIM ) or International Express Parcels
 c'ocumcnt drawn up in the country of destination or             Consignment Note ( TI Ex ) has been replaced by a
 of a copy or photocopy of such document, certified              new document, the entry made on the old document
 to be a true copy by the competent authorities .                shall appear in the same place on the new document.
                                                                 4.     Products introduced into a Member State other
                          Article 10
                                                                 than that indicated as the Member State of desti­
                                                                 nation on the transit documents specified in para­
 1.      Compensatory amounts shall be levied and                graphs 1 and 2 shall be considered :
 granted only in respect of products which are in free
 circulation within the Community. Where the pro­               — as coming from the Member State of departure
 ducts involved are composite products or are goods                  if the entries made pursuant to paragraph 1 show
 for which a compensatory amount is fixed by                         that the compensatory amount should be levied
 reference to one or more components thereof, the                    by the Member State indicated as the Member
 compensatory amount shall apply to that of those                    State of destination ;
 components where such components satisfy the con­                   as coming from the Member State of destination
 dition laid down in the preceding sentence .                        if the entries made pursuant to paragraph 1 show
 ---pagebreak--- No L 64/ 6                            Official Journal of the European Communities                                  9 . 3 . 73
        that the compensatory amount should have been             relevant sluice-gate price, free-at-frontier value or
        granted by the Member State of departure .                reference price by a coefficient corresponding to the
                                                                  percentage appreciation or depreciation of the cur­
However, where Article 9 ( 2) is applied , the products           rency of the importing Member State .
 shall be considered as coming from the Member
State of departure .
                                                                                             Article IS
                           Article 12
                                                                   1.      The compensatory amount levied on imports
Payment of compensatory amounts to be granted shall               from third countries is hereby suspended for products
be made only on receipt of a written application from             falling within subheadings Nos 02.01 A II ( a ) 2 ( bb )
 the person concerned . Member States may draw up                 and 02.01 A II ( a ) 2 ( dd ) 22 of the Common Customs
 a special form for this purpose.                                 Tariff intended for the manufacture of the preserves
                                                                  referred to in the first subparagraph of Article 14 (2)
                                                                  of Regulation ( EEC ) No 805/68 .
                           Article 13
                                                                  2.       The provisions of Article 1 of Regulation ( EEC )
The application for payment of a compensatory                     No 888/68 shall apply to the suspension provided for
amount must be submitted , save in cases of force                 in paragraph 1 .
majeure, within the six months following the date
of completion of customs formalities, failing which               However, the amount of the deposit associated with
it cannot be accepted.                                            the compensatory amount shall equal the com­
                                                                  pensatory amount in force on the day of importation .
                           Article 14
                                                                                             Article 16
 1.       As regards imports from third countries :
                                                                  Regulation ( EEC ) No 1013 /71 is hereby repealed .
  ( a ) sluice-gate prices for pigmeat, eggs , poultry­
         meat and albumins ;                                                                 Article 17
 ( b ) free-at-frontier values for milk and milk products
         falling within subheadings Nos 04.04 E I ( b ) 2,        This Regulation shall enter into force on the third
         04.04 E I (b ) and 04.04 E I ( b ) 4 of the Com­         day following its publication in the Official journal
         mon Customs Tariff, and                                  of the European Communities.
  ( c ) reference prices for wine,                                However, the amounts resulting from its application
                                                                  shall apply from 26 February 1973 .
shall be regarded as having been respccted if the offer           By way of derogation from the preceding paragraph
price for the product in question, increased where                these amounts shall, at the request of the party con­
the currency of the importing Member State has                    cerned , apply from 13 February 1973 if application
appreciated and reduced where that currency has                  of this Regulation leads to
depreciated by :
                                                                   ( a ) the granting of :
— the amount referred to in paragraph 2,
                                                                         — compensatory amounts which are higher than
and increased                                                                those applicable until this Regulation enters
                                                                             into force ;
— in the case of wine, by customs duties,
                                                                         or
is not lower than the relevant sluice-gate price, free­                  — newly-introduced compensatory amounts ;
at-frontier value or reference price .
                                                                   ( b ) the levying of import charges which are lower
2.        The amount referred to in the first indent of                  than the ' monetary' compensatory amounts ap­
paragraph 1 shall be calculated by multiplying the                       plicable until this Regulation enters into force.
                  This Regulation shall be binding in its entirety and directly applicable in all Member
                  States .
                  Done at Brussels, 1 March 1973 .
                                                                                          For the Commission
                                                                                             The President
                                                                                      Francois-Xavier ORTOL1