CELEX: 51991PC0379(02)
Language: en
Date: 1991-10-18
Title: REFORM OF THE COMMON AGRICULTURAL POLICY ­ Council Regulation ( EEC ) on the common organization of the market in cereals

COMMISSION OF THE EUROPEAN COMMUNITIES
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                                                C0MC91) 379 final
                                                Brussels, 18 October 1991
1*- j.-
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Sftoi»; '•*
                     REFORM OF THE COMMON AGRICULTURAL POLICY
                 Legal  texts (Arable   Crops,  Sheepmeat,      Beefmeat)
                              (presented by the Commission)
 ---pagebreak---                   A
C A P       R E F O R M
   Legal  texts
   Arable   crops
 ---pagebreak---  ---pagebreak---                                     - A Wo -
                           EXPLANATORY MEMORANDUM
This proposal puts the Commissions conclusions concerning support for
arable producers* 1 ^ into regulatory form. The essence of those
conclusions was that price supports for arable crops should be
considerably reduced and that compensation for this policy change
should be made by introducing new aids which are not linked to the
volume of production, and which are paid directly to farmers on a per
hectare basis. It was also concluded that, for larger farms, access to
these aids should be made conditional on the withdrawal of some arable
land from production. This proposal is therefore additional to the
existing regulations governing the Common Market Organisations in the
cereals, oilseeds, and protein crops sectors. To the (limited) extent
that it is incompatible with them, they will be revised before this
regulation enters into force.
Art icle 1 lays down which land uses are affected by the regulation. It
includes cultivation of most of the major arable crops. The regulation
does not make any distinction between crops which are grown for seed
and those which are not, nor between cereals which are eligible for
intervention and those which are not. For the remainder of the
regulation, "arable crops" is to be taken to mean those which are
referred to in this article.
Art icle 2 lays down the main features of the new direct aid scheme. It
is optional for farmers. The value of the aid will not be the same in
all regions, because the productivity of the land (and hence the loss
which could be caused by the change in price support policy) varies
from region to region within the Community. The aid is payable each
year to farmers who claim it, for the number of eligible hectares on
their farm that are producing arable crops, but for not more than a
certain maximum which is to be known as a base area.
Farmers are given a choice as to the year in which their "base area" is
established, to reduce the risk that their base area could be set at a
 level below what their reasonable long-term average area of arable
crops should be. They are offered the choice of 1989, 1990 or 1991.
The notion of base area is not attached to individual plots of land.
 It is a simple limit, expressed in hectares, which applies to the farm
as a whole. It includes any paid fallow which was present on the farm
 in 1989, 1990 or 1991, because there is every likelihood that land in
paid fallow would have grown an arable crop in one of those years had
 it not been
(1) see COM (91) 258 of 11 July 1991
 ---pagebreak---                                    - 2 -
set aside. Finally, article 2 establishes the rule that small farmers
(defined in Article 8 ) , which are the vast majority of arable farmers
in the Community, can apply for the compensatory aids under a
simplified scheme which involves no set-aside requirement, whereas
larger farmers must withdraw some of their land from production.
Art icle 3 lays down the procedure for determining the value of the
compensatory aid in each region. First, the boundaries of each region
are defined by the Member state, in such a way that the productivity of
the land within each region is broadly homogeneous. The second step is
to establish an average cereals yield for each region, which will be
taken as a surrogate measure of the productivity of the land.     At the
same time, the yields of other crops in each region are examined to see
that the region can be considered homogeneous. The Member states must
complete this work by 1st August 1992, so that farmers will be able to
work out what the value of the aid will be in their region before
deciding on their planting pattern for the 1993 harvest.
The final step in the procedure is an examination of the Member states'
work, with the Commission, which may lead to revisions. This procedure
completed, the regional cereals yield per hectare, multiplied by the
"basic amounts" per tonne given in Article 4, will give the value of
the compensatory payment per hectare for that region. It applies to
all the eligible crops except for oilseeds grown on big farms.     The
special rules for oilseeds are in article 5.
Art ic le 4 lays down the values of the "basic amounts" which are to be
used in the calculations of the compensatory payments, which are paid
by the hectare. The "basic amounts" may change from year to year since
they represent the gap between the planned target price in any one
year, and the effective average support price for wheat and barley, the
main cereals, in the 1992/1993 marketing year (which is to be the last
year before the policy change). In the case of farmers who had been
receiving durum wheat aid, a supplement to the compensatory payment
will be due. This is because of two things. Firstly, the support
price for durum wheat will no longer by any different from that for
other cereals (implying an extra 59 Ecu per tonne price drop or 118
Ecu per hectare to be compensated, on a 2 tonne per hectare yield
basis). Secondly, it is proposed to maintain an existing per hectare
aid for durum of 180 Ecu per hectare. Taken together, these two
provide the Justification for the 300 Ecu per hectare supplement for
established durum wheat farmers.
Art icle 5 deals with the compensatory payment for large farmers
producing oilseeds. The Commission has already proposed a mechanism to
Council C0M(91) 318 final of 31 July to provide income support for the
producers of oilseeds, so as to provide no particular incentive for
 farmers to switch from one arable crop to another. This text only
differs to the extent that it would be necessary to take account of a
 lower cereals price (150 Ecu/t. instead of 155 Ecu/t.) should the 1991
cereals harvest be found to have exceeded the Maximum Guaranteed
Quant i ty.
 ---pagebreak---                                    - 3 -
Art icle 6 lays down the rule that, even on big farms, and unlike the
special case of oilseeds, the compensatory payment per hectare for
protein crops is the same as that for cereals.
Art icle 7 lays down the rules that apply In the event that a farmer has
to fallow (i.e. set aside) some land by virtue of the fact that he Is
participating in the "general" scheme, rather than the simplified
scheme which is only open to small producers. It will be recalled that
no farmer may receive the direct aids for cultivating arable crops on
hectares which exceed his "base area". Article 7 states that. If a
set-aside requirement of 15% is applied, then "base" areas have to be
reduced by 15%. Thus a large farmer with 100 ha of base area growing
arable crops on 85 hectares, and having 15 hectares of fallow on the
same holding, will receive the direct aids for those 85 ha. Even if he
has acquired additional "base" area or disposed of some, this 15%
proportionality between current "base" area and fallow must be
respected. Naturally, a hectare which has already been withdrawn from
production under a paid set-aside scheme cannot count towards the 15%
reduction, because the purpose of the 15% reduction in base area is to
reduce the volume of cereals output and (on larger farms) to reduce the
number of hectares on which compensatory payments are due. This is
spelled out in paragraph 2. A consequence of this is that some farmers
may feel that the total area of set-aside on their land is rather high.
The solution for this is given in Article 14, which allows such farmers
to drop out of the 5-year scheme after any harvest, rather than only
after 3 or 5 years.
Paragraph 2 of   article 7 says that the fallow must be subject to
rotation. The    purpose of this requirement is to reduce "slippage"
effects, where   the effectiveness of fallow in reducing production is
compromised by   the tendency of farmers to fallow their least productive
plots.
Paragraph 3 says that Member states shall apply appropriate rules about
the management of the fallow areas which are appropriate to the local
environment. This will mean rules to encourage the local flora and
fauna and to protect natural resources and the environment from
disturbance and risks such as from fire, pollution, loss of soil
fert iIi ty, or erosion.
 ---pagebreak---                                    - 4 -
Paragraph 4 provides farmers with an opportunity to try out production
for new non-food markets on their set aside land if they so wish. This
relieves a major obstacle which stood in the way of the development of,
for example, new fibre crops, which was that In order to grow them
farmers would have had to forego the income from normal, highly
supported, farming for food outlets. The facility to be able to use
land which would otherwise have had to lie fallow will be a
considerable stimulus. Naturally, these alternative uses of the land
which would otherwise have had to lie fallow will have to be tightly
control led.
The final point on set aside is the compensation which may be paid.
Compensation is in fact only to be paid for the first portion of
fallow, up to a certain limit. This limit has been set so that
compensation would be payable on the fallow area required on a farm
capable of producing 230 tonnes of cereals, a capacity which
characterises a professional farming enterprise producing a high
revenue. Within this limit, the compensation is paid per hectare Just
as if the land were growing cereals, except that the basic amount to be
used is 55 Ecu per tonne as from 1993 rather than 1995.
Art icle 8 descr ibes the simplified scheme for small producers. Small
producers are defined according to the size of the "base area"
resulting from their 1989, 1990, or 1991 crop pattern, as modified by
any acquisitions or disposals of "base area" since then. The
simplicity of this scheme lies in the fact that there is no set aside
requirement and that the eligible area on the farm will attract aids as
 if it were all down to cereals, with no distinction being made for
oi Iseeds area.
Art icle 9 introduces a special rule to restrict further growth of the
cultivated area in the Community, the consequence of which can only be
to counteract the objectives of the changed policy. Plots of land
which had not been cultivated before the year in which the holding's
base area is determined, shall remain ineligible for compensatory
payments for the foreseeable future. They shall not count towards the
fulfillment of set aside obligations either, to avoid that land which
 is in any case unsuitable for arable cropping is ploughed up to provide
extra space in which to meet this obligation, whilst maintaining the
same level of arable crop output. This rule is all the more necessary
 in that the introduction of aids limited to a certain number of
hectares would otherwise encourage deforestration and ploughing-up of
ancient pasture, which can both be environmentally damaging.
Art icles 10 and 11 lay down some general rules on the administration of
 the compensatory payments system for cereals and for oilseeds. A
notable feature of these articles is that in the cases of durum wheat
 and rapeseed, where the quality of the final product is very important
and is heavily influenced by the farmer's choice of seed, payments are
conditional on the use of certified seed of suitable varieties.
Art icle 12 gives a list of some of the detailed rules which it will be
necessary to establish, and which will be delegated to the Commission.
 ---pagebreak---                                   - 5 -
Art icle 13 is a standard text which indicates that the funds will come
from the EAGGF Guarantee Section.
Title II (Art icies 14 to 18) only concerns general legal and
transitional provisions. The most notable of these is article 15,
which requires Member states to pay over the aids to the farmers in
their entirety, without for example subtracting any specific levy or
tax.
 ---pagebreak---                                       -6
                                   Draft
                  Council Regulation (EEC) No.        /91
                       establishing a support system
                   for producers of certain arable crops
THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITY,
Having regard to the Treaty establishing the European Economic
Community, and in particular Articles 42 and 43 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas the Common Agricultural Policy aims to attain the objectives
referred to in Article 39 of the Treaty taking account of the market
s i tuat ion ;
Whereas, in order to ensure better market balances, a new support
system, common to all producers of arable crops harvested within the
Community, has to be established; whereas the best way to achieve this
objective is to approximate the Community prices to the prices of the
world market and to compensate the loss of income caused by the
reduction of the institutional prices by a compensatory payment for
producers who sow and intend to harvest such products;
Whereas the new support system shall be applied with effect from the
marketing year 1993/1994 on and in the case of oilseeds, it can be
based on the provisional support system introduced for these products
since 1992 by Council Regulation (EEC) No          /91 establishing a
support system for the producers of soya beans, rapeseed and
 sunf lowerseedC ) ;
Whereas the compensatory payments should be introduced for existing
 holdings and the participation in the aid scheme should be voluntary;
 Whereas such compensatory payments should reflect the specific
 structural characteristics that influence yield and that the drawing up
 of a regionaI ization plan based on objective criteria should be left to
 the Member states; whereas a uniform average cereals yield should be
 established by the regionaIization plans; whereas these plans must be
 consistent with the average yields of each region achieved in a given
 period; whereas a specific procedure should be provided in order to
 examine these plans on the Community level;
 d) .
 ---pagebreak---                                        -Jf-
Whereas, in order to calculate the cereals compensatory payment, a
basic amount per tonne should be multiplied by the average cereals
yield determined for the region concerned;
Whereas the present policy concerning durum wheat is to discourage
production especially outside the traditional production zones and that
this policy should be continued ; whereas however a supplement to the
cereals compensatory payment should be paid for producers of durum
wheat in the traditional production zones as currently defined;
whereas this supplement should compensate durum wheat producers in
these regions for the income loss due to alignment on the price for
other cereals; whereas the supplement should be subject to the same
conditions as the basic compensatory payment;
Whereas in order to calculate the compensatory payment for oilseeds it
is necessary to establish a Projected Reference Price, a Community
Reference Amount, the calculation method and appropriate corrective
measures;
Whereas the aid for protein crops should be fixed initially at the
 level of the definitive cereals aid and regional ised on the same basis-,
whereas the same level of aid will apply to all protein crops, other
than dried fodder where the aid provided for in Regulation (EEC) No.
1117/78^ 2 ), as last amended . . . < 3 ) , should be withdrawn;
Whereas, in order to facilitate administration and control, the
compensatory payments should be granted under a "general scheme" open
to all producers and a "simplified scheme" open only to small
producers;
Whereas small producers should be defined on the basis of an area
equivalent to annual production of not more than 92 tonnes of cereals;
whereas the yield averages for cereals in the different regions, which
have been defined in the regionaIization plans for the aid, should be
also used to determine small producers;
Whereas in order to benefit from the compensatory payments under the
"general scheme" producers must set aside a predetermined percentage of
their arable area ; whereas for environmental reasons, the set-aside
should be organized on the basis of a rotation of areas and the land
set aside would have to be cared for so as to meet certain minimum
environmental standards; whereas the areas set aside as temporary
fallow can also be used for non food purposes provided effective
control systems can be applied;
Whereas the set-aside requirement should be fixed initially at 15% of
 the land of the holding which has been under arable cultivation;
whereas this percentage should be re-examined to take account of
production and market developments;
 (2) O.J. No. 142 of 30.05.1978, p. 2.
 (3) ...
 ---pagebreak--- Whereas the set-aside obligation should be subject to a due
compensation; whereas in the case of holdings of a limited dimension
the compensation should be equivalent to the definitive compensatory
aid per hectare for cereals calculated at the regional level; whereas
professional holdings of a greater dimension should be able to adapt to
the new situation without full compensation for the set-aside effort
required; whereas, the compensation for such holdings could therefore
be limited to an area equivalent to production of up to 34.5 tonnes of
cereals, thus introducing a degressive element;
Whereas, under the "simplified scheme" for small producers no set-aside
requirement is imposed and the compensatory payment for cereals shall
be paid for all areas irrespective of the crops actually sown; whereas,
however, producers applying for this scheme have to accept certain
procedures to facilitate controls;
whereas compensatory payments should be paid once a year for a given
area-, whereas areas previously not cultivated should not be eligible
for aid, with the exception of an area that has been set aside in
previous years under the existing voluntary set aside arrangements;
whereas no aid should be granted for a second crop following or
proceeding the main one;
Whereas it is necessary to determine certain conditions for applying
for compensatory payments and to specify when producers shall be paid;
Whereas a quality policy for rapeseed and durum wheat is required;
Whereas expenditures incurred by the Member States as a result of the
obligations arising out of the application of this Regulation will be
financed by the Community in accordance with Articles 2 and 3 of
Council Regulation (EEC) No. 729/70 of 21 April 1970 on the financing
of the common agricultural policy* 4 ^, as last amended by Regulation
(EEC) No. 2048/88<5>
Whereas it is necessary to provide for transitional measures and to
enable the Commission to adopt, if necessary, additional transitional
measures;
Whereas the new support system will not be fully introduced before the
marketing year 1995/1996; whereas for the transitional, as well as for
 the definitive application period existing Community legislation for
 the products concerned should be adapted; whereas these adaptations
should be the subject of separate regulations;
HAS ADOPTED THIS REGULATION
 (4) O.J. No. L 94 of 28.04.1970, p. 13.
 (5) O.J. No. L 185 of 15.07.1988, p. 1.
 ---pagebreak---                                 - 4 -
                              Art icle 1
1. This regulation hereby establishes a system of compensatory
   payments for producers of arable crops.
2. For the purposes of this Regulation:
       the marketing year shall run from 1 July to 30 June.
       "arable crops" are taken to mean those listed in Annex I,
       unless grown for silage.
                                                                 A*
 ---pagebreak---                                     5 -
                                Title I
                         Compensatory payment
                               Art icle 2
1. Community producers of arable crops may apply for a compensatory
   payment under the conditions set out in this title.
2. The compensatory payment shall be fixed on a per hectare basis and
   regionally differentiated.
   The compensatory payment   is granted for the area which is down to
   arable crops, and which does not exceed a base area. A base area
   for each holding is established as the number of hectares which
   were down to arable crops, or which were fallowed in conformity
   with a publicly funded scheme, during 1989, 1990, or 1991. The
   farmer chooses which year shall be used.
3. The compensatory payment shall be granted under :
   a)   a "general scheme", open to all producers, or
   b)   a "simplified scheme" open to small producers.
   Producers applying for the compensatory payment under the general
   scheme shall be subject to an obligation to set aside part of the
    land of their holding from production and shall receive a
   compensation for this obligation.
                                                                       41
 ---pagebreak---                                   - 6 -
                                Article 3
1. Each Member State shall establish a regionalIzation plan setting
   out the criteria for the establishment of separate production
   regions.    The criteria used must be appropriate, objective and
   provide the necessary flexibility for the recognition of
   distinctive homogeneous zones of a minimum size and allow for
   specific characteristics that influence yields such as soil
   fertiIity.
2. For each production region, the Member State shall give details of
   the areas and yields of cereals, oilseeds, and protein crops
   produced in that region during the five year period 1986/87 to
   1990/91.    An average cereals yield shall be calculated for each
   region by excluding the year with the highest and the year with the
    lowest yield during that period.
3. Member States shall submit their regionalization plan to the
   Commission by 1st August 1992 together with all available
   supporting information.     In order to fulfil this obligation they
   may refer to their regionaIization plan submitted to the Commission
    in accordance with regulation (EEC) n' .../91.
4. The Commission shall examine the regionalization plans submitted by
   the Member States and shall ensure that each plan is based on
   appropriate, objective criteria and is consistent with available
   historical information. The Commission may object to plans which
   are not compatible with the aforementioned relevant criteria in
   particular with the average yield of the Member State. In this
   case the plans shall be subject to adjustment by the Member State
   concerned after consultation with the Commission.
5. The regionaI ization plan may be revised by the Member State
   concerned at the request of the Commission in accordance with the
   same procedure as outlined in the preceding paragraphs.
                                                                       JL
 ---pagebreak---                                  - 7 -
                               Article 4
1. The cereals compensatory payment is calculated by multiplying the
   basic amount per tonne by the average cereals yield determined in
   the regionalization plan for the region concerned.
2. The basic amount per tonne is fixed at :
        30 ECUS for the marketing year 1993/1994
        45 ECUS for the marketing year 1994/1995 and
        55 ECUS from the marketing year 1995/1996 onwards.
3. A supplement to the compensatory payment shall be granted for the
   area down to durum wheat in the traditional production zones listed
    in Annex II, within the limit of the number of hectares which were
   down to durum wheat and eligible for durum wheat aid during
   1988/89, 1989/90, or 1990/91. The farmer chooses which marketing
   year shalI be used.
   The supplement is fixed at 300 ECUS per hectare from the marketing
   year 1993/1994 on.
4.  If the 1991 cereals crop is found to have exceeded the Maximum
   Guaranteed Quantity, the amounts set out in paragraph 2 wi11 each
   be reduced by 5 Ecu, and in paragraph 3 by 3 Ecu.
                                                                       O
 ---pagebreak---                                   - 8 -
                                Article $
1. The compensatory payment per hectare for oilseeds is calculated in
   the fol lowing way:
   a)   A Projected Reference Price for oilseeds is set at 163
        Ecu/tonne.
   b)   A Community Reference Amount for oilseeds is set at 384
        Ecu/hectare. This figure will be reduced to 359 Ecu per
        hectare if the 1991 cereals crop is found to exceed the Maximum
        Guaranteed Ouantity.
   c)   For each region determined in the regionalization plan, a
        Projected Regional Reference Amount shall be established which
        reflects the relation between the cereals yield for that region
        and the average cereals yield for the Community (4.6
        tonnes/hectare).
   d)   Before 30 January in each marketing year the Commission, in
        accordance with the procedure laid down in Article 38 of
        Regulation 136/66/EEC, shall determine a Final Regional
        Reference Amount based on the Observed Reference Price for
        oilseeds.   This amount shall be calculated by substituting the
        Observed Reference Price for the Projected Reference Price; no
        account shall be taken of price variations within 8% of the
        Projected Reference Price.
2. Until the end of the 1994/95 marketing year, a standard bonus for
   sunflowerseed cultivation will be payable in Spain and Portugal.
   This bonus, which is in addition to the compensatory payment, will
   be calculated by the Commission annually for Spain and Portugal to
    reflect the differential foreseen in current legislation.
3. The Commission shall publish the aforementioned amounts in the
   Official Journal.     The publication shall include a succinct
    explanation of the calculations made.
                                                                        - #
 ---pagebreak---                                  - 9-
                               Article 6
The compensatory payment per hectare for protein crops is fixed at the
same level as the compensatory payment for cereals taking into account
the same basic amount per tonne of 55 Ecus. If the 1991 cereals
harvest is found to have exceeded the Maximum Guaranteed Quantity, the
basic amount will be 50 Ecus per tonne.
                                                                       ir
 ---pagebreak---                                 - 10 -
                               Article 7
   The set aside requirement for producers applying for compensatory
   payments under the general scheme is fixed as a percentage
   reduction of their base area. The set aside requirement to apply
   with effect from the sowings for the 1993/94 marketing year
   onwards, shall be 15%.
   The land set aside shall be subject to rotation. In the case of a
   farm where there are areas set aside in compliance with Article 2
   of regulation EEC n* 2328/91, these areas cannot be used to fulfill
   the set aside requirement given in paragraph 1.
3. Member States shall apply appropriate environmental measures which
   correspond to the specific situation of the land set aside.
4. The land set aside may be used for the provision of materials for
   the manufacture within the Community of products not primarily
    intended for human or animal consumption, provided that effective
   control systems are applied.
   The compensation for the obligation to set aside land is fixed at
   the level of the compensatory payment which would be paid from the
   marketing year 1995/1996 for the same areas if cultivated with
   cereals.    This compensation will be paid for each hectare set
   aside, up to the number of hectares which would be needed to
   produce 34.5 tonnes of cereals at the average cereals yield which
   has been determined for the region concerned.
                                                                       46
 ---pagebreak---                                 - 11 -
                               Article 8
1. Small producers of arable crops may apply for the compensatory
   payment under the simplified scheme.
2. Small producers are producers whose base area is not more than the
   area which would be needed to produce 92 tonnes of cereals, if they
   achieved the average cereals yield which has been determined for
   their region.
3. Under the simplified scheme :
       no set-aside requirement is imposed;
        the compensatory payment shall be paid at the rate applicable
        for cereals for all areas sown to arable crops.
                                                                       ft
 ---pagebreak---                                  - 12 -
                               Article 9
Applications for the compensatory payment and for the compensation for
the set aside obligation may only be made in respect of plots of land
which had already been cultivated during any one of the three years
which may be chosen for establishing the base area, or which had been
withdrawn from arable production in conformity with a publicly funded
scheme at that time.
                                                                       4f
 ---pagebreak---                                    - 13 -
                               A r t i c l e 10
1.  The compensatory payments for cereals, and protein crops, as well
    as the compensation for the set aside obligation, shall be paid
    between 16th October and 31st December next following the harvest.
2.  In order to qualify for the compensatory payment a producer must,
    at the latest by the 15 May preceding the relevant harvest :
         have sown the seed-,
         have lodged an application.
3.  The application must be accompanied by references enabling the
    areas concerned to be identified.
4.  Access to the supplement for growers of durum wheat referred to in
    Article 4.3 is restricted to those using certified seed.
    The Commission, in accordance with the procedure laid down in
    Article 24 of Regulation EEC n'          /92< 1 ) may decide that certain
    varieties are ineligible.
5.  Member States shall take the necessary measures to remind
    applicants of the need to respect existing environmental
     legislat ion.
(1) New basic regulation for cereals, management commit te procedure
                                                                              if
 ---pagebreak---                                 - 14 -
                              Article 11
1. Access to the compensatory payment for growers of oilseed rape is
   restricted to those using certified seed. The Commission, in
   accordance with the procedure laid down in Article 38 of Regulation
   136/66 EEC may decide that certain varieties are ineligible.
2. Those producers who lodge a contract or a cultivation plan for
   oilseeds shall be entitled to an advance payment of no more than
   50% of the Provisional Regional Reference Amount. Member States
   shall carry out the necessary checks to ensure entitlement to the
   advance is Justified.
3. In order to qualify for an advance payment a producer must have
   sown the seed and have lodged with the competent agency of the
   Member State by 30 April at the latest :
       either a contract with an approved first buyer for the
       cultivation of oilseeds
       or a detailed cultivation plan for this holding showing the
        land to be used for cultivating oilseeds.
4. Where an advance has been made a balance shall be paid equal to the
   difference, if any, between the amount of the advance and the Final
   Regional Reference Amount.
5. Where a producer demonstrates that he has retained ownership of the
   product for a period to be determined, an orderly marketing bonus
   may be payable. The amount of the bonus and the conditions
   determining eligibility shall be adopted by the Commission in
   accordance with the procedure laid down in Article 38 of Regulation
   No. 136/66/EEC.
6. Payment shall be made by the Member State to each eligible producer
   within a period of 90 days after publication of the amounts
   (advance and final payments) in the Official Journal.
                                                                       to
 ---pagebreak---                                  - 15 -
                               Article 12
Detailed rules for the application of this title shall be adopted in
accordance with the procedure laid down In Article 38 of Regulation
136/66/EEC, and Article 24 Regulation (EEC) N*      /92 respectively,
and in part icular :
        those relating to the establishment of regionalization plans,
        including the determination of the minimum size of a region;
        those relating to the determination of the amount, and the
        payment of the compensatory aid;
        those relating to the minimum area to be cultivated; such rules
        shall take particular account of the monitoring requirements
        and of the sought-after effectiveness of the scheme in
        question;
        those determining the eligibility requirements for the durum
        wheat supplement;
        those relating to monitoring; without prejudice to specific
        provisions on an integrated management and control system, such
        rules shall include the use of remote sensing and/or
        plausibility monitoring on the basis of binding official
        documents that are already available in the national
        administrât ions;
        the dates for the application and the request of an advance
        payment may be varied for specific regions to take account of
        exceptional climatic circumstances;
        those relating to the set aside requirement; such rules shall
        define especially the notion of rotation,the minimum annual set
        aside period and the measures to be taken in favour of the
        environment and determine the regions where, for climatic
         reasons, these measures may be replaced by other more
        appropriate measures;
         those relating to the specific administrative procedures to
        assist controls for the simplified scheme.
         those relating to the effects of property transactions on the
        application of the scheme.
According to the same procedure, the Commission may add minor crops to
the list given in Annex I and determine the consequences of such
extensions in particular in so far as base areas and set aside
requirements are concerned.
                                                                        M
 ---pagebreak---                                    - 16 -
                               A r t i c l e 13
The measures defined in this title shall be deemed to be interventions
intended to stabilize the agricultural markets within the meaning of
Article 3 (1) of Council Regulation (EEC) No 729/70 on the financing of
the common agricultural policy.
                                                                        It
 ---pagebreak---                                 - 17 -
                               Title II
                  General and transitional provisions
                              Article 14
The 1992 harvest is the last harvest in respect of which new
applications may be made for participation in the set aside scheme
provided for in Article 2 of Regulation (EEC) n* 2328/91. Farmers
still participating after that time have the option to leave the said
scheme, between September 1st and December 15th in 1992 to 1996. This
option is restricted to holdings which are subject to the set-aside
requirement set out in Article 7.
                                                                      ZÎ
 ---pagebreak---                                 - 18 -
                              Article 15
1. The amounts of the compensatory payments and the compensation for
   the set aside obligation, as well as the percentage of base area to
   be set aside fixed in this regulation may be changed in the light
   of developments in production, productivity, and the markets,
   according to the procedure laid down in Article 43 paragraph 2 of
   the Treaty.
2. From the 1994/95 marketing year onwards the Council may decide,
   according to the procedure laid down in Article 43 paragraph 2 of
   the Treaty, that the arrangements for making the compensatory
   payments for oilseeds shall also apply to the case of protein
   crops.
3. The payments referred to in this regulation are to be paid over to
   the beneficiaries in their entirety.
                                                                       Zi
 ---pagebreak---                                  - 19 -
                               Article 1ft
Should specific measures be necessary to facilitate the transition from
the sytem in force to that established by this Regulation, in
particular if the introduction of this system would give rise to
substantial difficulties in respect of certain products such measures
shall be adopted in accordance with the procedure laid down in Article
38 of Regulation 136/66/EEC, and Article 24 of Regulation (EEC)
N*...../92 respectively.
                                                                        19
 ---pagebreak---                                - 20 -
                             Article 17
1. Title I of Regulation (EEC) No. 1117/78 is abolished with effect
   from 1995 onwards.
2. Regulation (EEC) N'    /91 is abolished.
                                                                    l(>
 ---pagebreak---                                  - 21 -
                               Article 18
This Regulation shall enter into force on 1st July 1993
This Regulation shall be binding in its entirety and directly
applicable in all Member States.
                                        For the CounciI
                                        The President
                                                              ïh
 ---pagebreak---                    - 22 -
                   Annex I
           Definition of products
CN Code                                 Peser lot ion
CEREALS
1001 10                     Durum wheat
1001 90                     Other wheat and meslin other
                            than durum wheat
1001 00 00                  Rye
1003 00                     Barley
1004 00                     Oats
1005                        Maize
1007 00                     Grain sorghum
1008                        Buckwheat, millet and canary
                            seed; other cereals
                                                         ie
 ---pagebreak---                    - 23 -
I I . OILSEEDS
      1201 00             Soya beans
      1205 00             Rapeseed
      1206 00             Sunflowerseed
III. PROTEIN CROPS
      0713 10             Peas
      0713 50             Field beans
      1209 29 50          Sweet lupins
 ---pagebreak---                                  - 24 -
                                Annex Ii
              Traditional production zones for du.ru.rn wheat
ITALY
Regions
Abruzzi
BasiIicata
Calabria
Campania
Lat ium
Marches
Mo Ii se
ApuIi a
Sardinia
Sicily
Tuscany
FRANCE
Regions
Provence-Alpes-Côte d'Azur
Languedoc-Roussi I Ion
GREECE
Regions
Central Greece
Péloponnèse
 Ionian islands
Thessaly
Macedonia
Aegean islands
Thrace
 ---pagebreak---                        - 25 -
SPAIN
Communidades Autonomas
Andalue ia
Navarra
Prov incias
BadaJoz
Burgos
Salamanca
Toledo
Zamora
Zaragoza
PORTUGAL
D istr ictos
Santarém
L isboa
Setubal
Portalegre
Evora
Be ja
Faro.
                              •?•/
 ---pagebreak--- C A P       R E F O R M
    Lega I   texts
    Cereals
                        ^
 ---pagebreak---                          EXPLANATORY MEMORANDUM
The purpose of this text is to make the basic regulation of the Common
Market Organisation for cereals compatible with the reform
arrangements.
Since the reform arrangements are additional to the existing CMO's,
there is in fact very little in this text which is new.
Article 3.1 is the first place where new material is introduced.
It transcribes quite simply the Commission's declared intentions on the
future level of price support, i.e., threshold, target, and
intervention prices. It replaces rules whereby these prices were
calculated according to formulae including transport costs and "fixed
elements" for protection.
Article 5 introduces some changes in the sense that all the general
rules listed will become rules for which the Commission is competent.
Article 7 introduces a change whereby the basic coresponsabiIity levy
will remain only until 1994/1995. Note that there is no longer any
provision for a maximum guaranteed quantity, nor for a supplementary
coresponsabiIity levy.
Article 9 changes the arrangements for starch potatoes, producers of
which were essentially supported by a minimum price for potatoes.
Since this minimum price depends on the price for maize (the other main
source of industrial starch) it will fall significantly, in line with
the cereals prices given in Article 3.1. These price falls are fully
compensated by the direct aids introduced in Article 9.2.
The remainder of the text mainly consists of material taken over from
the existing basic regulation.
However, the opportunity is being taken to introduce a few small
changes which are desirable in any event. The most important of these
 is the introduction of a clause allowing the Commission to take special
measures which might become necessary during the transitional period.
This is in Article 27, paragraph 3.
                                                                         %
 ---pagebreak---                          Council Regulation (EEC) No
                                         of
             on the common organization of the market in cereals
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 42 and 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 prices and guarantees represented by the machinery introduced
by Council Regulation (EEC) No 2727/75 of 29 October 1975 on the common
organization of the market in cereals 1 , as last amended by Regulation
(EEC) No      / 9 2 2 encourage the growth of cereal production at a rate
which is no longer in line with the absorption capacity of the market;
whereas, in order to avoid a succession of increasingly serious crises, the
current policy should be radically reformed; whereas that implies that the
support provided by the market organization should be reorientated in such
a way that it no longer depends solely on guaranteed prices;
Whereas the new orientation of the common agricultural policy must lead to
better market equilibrium and to a better competitive position for
Community agriculture; whereas that objective can be achieved by lowering
the target price to a level representing an anticipated rate on a
stabilized world market; whereas, so as not to encourage producers to opt
 for one particular crop, the target price should be the same for the major
cereals;
Whereas the loss of income resulting from the drop in prices is offset be
direct aid per hectare introduced by Regulation (EEC) No        /92 3 ;
Whereas the structure of guaranteed prices must permit disposal of
 surpluses within the Communtiy; whereas an intervention price should
 therefore be fixed at a lower level and a threshold price at a higher level
 than the target price;
Whereas the new structure of guaranteed prices leads to the elimination of
 the current provisions on derived prices;
Whereas the aid scheme provided for by Regulation (EEC) No..../92 3
 replaces those for durum wheat and certain minor cereals; whereas those
 aids should therefore be discontinued;
 1 OJ No L       ,         ,p.
 2 OJ No L       ,           ,p.
 3 OJ No L
                                                                             H
 ---pagebreak---                                     - 2 -
Whereas the intervention agencies must be able, in special circumstances,
to take intervention measures suited to those circumstances; whereas,
however, so that the required uniformity of intervention systems may be
maintained, those special circumstances should be assessed and the
appropriate measures determined at Community level;
Whereas the intervention prices and threshold prices should, in the course
of the marketing year, be subject to a certain number of monthly increases
in order to take account, to some extent, of storage costs and interest
charges for storing cereals in the Community and of the need to ensure that
the disposal of stocks conforms to market requirements;
Whereas, having regard to the imbalance which persists between production
and consumption of cereals and the accumulation of intervention stocks, the
basic co-responsibility levy scheme should also be renewed temporarily;
Whereas potatoes intended for the production of starch are in direct
competition with cereals intended for the production of starch; whereas,
 in view of the reform measures envisaged for cereals and to ensure equal
treatment between the lines of production in question, similar measures
should be adopted with regard to potatoes intended for the production of
starch;
Whereas the creation of a single Community market for cereals involves,
apart from a system of guaranteed prices, the introduction of a single
trading system at the external frontiers of the Community; whereas a
trading system including levies and export refunds, combined with
 intervention measures, also serves to stabilize the Community market, in
particular by preventing price fluctuations on the world market from
affecting prices ruling within the Community; whereas, therefore,
provision should be made for charging a levy on imports from third
countries and for the payment of a refund on exports to those countries,
both being designed to cover the difference between prices ruling outside
and within the Community; whereas, moreover, in respect of products
processed from the cereals to which this Regulation applies, account should
be taken of the need to ensure a measure of protection for the Community
processing industry;
Whereas, in addition to the system described above, and to the extent
necessary for its proper working, provision should be made for regulating
or, when the situation on the market so requires, prohibiting totally or
partially the use of "inward processing arrangements";
Whereas the competent authorities must be in a position to monitor trade
movements in order to assess market trends and to apply the
                                                                            &
 ---pagebreak---                                     - 3 -
measures laid down in this Regulation as necessary; whereas, to that end,
provision should be made for the issue of import and export licences
accompanied by the provision of security guaranteeing that the transactions
for which such licences are requested are effected;
Whereas the levy system makes it possible to dispense with all other
protective measures at the external frontiers of the Community; whereas,
however, the common price and levy machinery may, in exceptional
circumstances, prove defective; whereas, in such cases, so as not to leave
the Community market without defence against disturbances, the Community
should be enabled to take all necessary measures without delay;
Whereas, in a situation of high prices on the world market, provision
should be made for appropriate measures to be taken in order to safeguard
Community supplies and to stabilize prices on Community markets;
Whereas the establishment of a single market based on a common price system
would be Jeopardized by the granting of certain aids; whereas, therefore,
the provisions of the Treaty which allow the assessment of aids granted by
Member States and the prohibition of those which are incompatible with the
common market should be made to apply to cereals;
Whereas the common organization of the market in cereals must include the
products of primary processing which contain cereals or certain products
which do not contain cereals but which are directly interchangeable in
 their use with cereals or with products obtained from cereals;
Whereas, in order to facilitate implementation of the proposed measures, a
 procedure should be laid down for establishing close cooperation between
Member States and the Commission within a Management Committee;
 Whereas the common organization of the market in cereals must take
 appropriate account, at the same time, of the objectives set out in
 Articles 39 and 110 of the Treaty;
 Whereas the expenditure incurred by the Member States as a result of the
 obligations arising out of the application of this Regulation falls on the
 Community in accordance with the provisions of Articles 2 and 3 of Council
 Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common
 agricultural policy, as amended by Regulation (EEC) No   ;
 Whereas the cut in common prices from the time of the entry into force of
 this Regulation is liable to disrupt the internal market; whereas
 provision should therefore be made for the possibility for the Commission
 to take any appropriate measures to avoid such disruptions;
                                                                            X
 ---pagebreak---                                     - 4 -
Whereas, since their consolidation by Regulation (EEC) No 2727/752, as
last amended by Regulation (EEC) No      *, several provisions concerning
the organization of the market in cereals have been amended a number of
times; whereas, by reason of their number, their complexity and their
dispersal among various Official Journals, these texts are difficult to use
and thus lack the clarity which should be an essential feature of all
legislation; whereas they should, therefore, be updated,
HAS ADOPTED THIS REGULATION:
                                  Article 1
The common organization of the market in cereals shall cover the following
products :
CN code                          Description
(a) 0709 90 60           ! Sweet corn, fresh or chilled
     0712 90 19          {Dried sweet corn, whole, cut, sliced,
                         ! broken or in powder, but not further
                         {prepared, other than hybrid for sowing
     1001 90 91          {Common wheat and meslin seed
     1001 90 99          {Spelt, common wheat and meslin other than
                         {for sow Ing
     1002 00 00          {Rye
     1003 00             {Barley
     1004 00             {Oats
     1005 10 90          {Maize (corn) other than hybrid
     1005 90 00          {Maize (corn) other than seed
     1007 00 90          {Grain sorghum, other than hybrid, for sowing
     1008                {Buckwheat, millet and canary seed; other cereals
 (b) 1001 10             {Durum wheat
 (c) 1101 00 00          {Wheat or meslin flour
     1102 10 00          {Rye flour
 2 0J No L 281, 1.12.1975, p. 1.
 3 0J No L
                                                                            /f
 ---pagebreak---                                       - 5 -
       1103 11             {Groats and meal of wheat
       1107                {Malt, whether or not roasted
   (d)                     {The products listed in Annex A
   2. This Regulation shall apply notwithstanding the measures provided for by
      Regulation (EEC) No      for assistance for arable farmers.
                                    Article 2
   The marketing year for all products Jisted in Article 1 shall begin on
   1 July and end on 30 June of the following year .
6)                                                                             7# >
 ---pagebreak---                                      - 6 -
                                    TUle 1
Pricing and intervention system
                                   Article 3
1. A target price for all cereals is fixed at:
          125 ECUS per tonne for the marketing year 1993/1994
          110 ECUS per tonne for the marketing year 1994/1995 and
          100 ECUS per tonne from the marketing year 1995/1996 on.
    A threshold price for all cereals is fixed at 110 % of the target price.
    An intervention price for cereals subject to intervention is fixed at 90
    % of the target pr ice.
2. The prices are fixed for a standard quality for each cereal.
    The intervention and threshold prices shall be subject to monthly
     increases, for the whole or part of the marketing year and may cover
    different periods for the two prices. The amounts of the monthly
    increases and their number are determined in accordance with the
    procedure laid down in Article 43(2) of the Treaty.
    The intervention price shall refer to the wholesale stage for goods
    delivered to the warehouse, before unloading.    They shall be valid for
    all Community intervention centres designated for each cereal.
3. The threshold price for maize and sorghum valid during June, will be
    applicable during July, August and September of the following marketing
    year.
 4. The prices fixed in this regulation may be changed in the light of
    developments in production and the markets.
                                                                             ?f
 ---pagebreak---                                    - 7 -
                                 Article 4
   The intervention agencies designated by the Member States shall buy in
   common wheat, durum wheat, rye, barley, maize and sorghum which are
   offered to them and have been harvested in the Community, provided that
   the offers comply with conditions laid down, in particular in respect of
   quality and quantity.
2. Buying-in may take place only in the following periods:
        from 1 August to 30 April in the case of Italy, Spain, Greece and
        Portugal,
        from 1 November to 31 May in the case of the other Member States.
3. Buying-in shall be carried out on the basis of the intervention price,
   if necessary after a price increase or reduction for quality reasons.
                                                                            \o
 ---pagebreak---                                    - 8 -
                                 Article g
Detailed rules for the application of Articles 3 and 4 shall be adopted in
accordance with the procedure laid down In Article 24 In particular as
regards:
-  the standard qualities to which prices refer;
-  the determination of the intervention centres ;
-  the minimum conditions, in particular with respect to quality and
   quantity required of each cereal for it to be eligible for intervention;
-  the scales of price increases and reductions applicable to intervention;
-  the procedures and conditions for taking over by the intervention
   agencies;
-  the procedures and conditions for disposal by the intervention agencies.
-  the setting of the threshold prices for the products, referred to in
   Article 1 c.
                                                                           1,1
 ---pagebreak---                                    - 9 -
                                 Article g
1. Where the market situation so dictates,  special intervention measures
   may be decided on.
   These Intervention measures may in particular be taken if, in one or
   more regions of the Community, market prices fall or threathen to fall
   in relation to the intervention price.
2. The nature and application of the special intervention measures and the
   conditions and procedures for the sale or for any other means of
   disposal of the products subject to those measures shall be determined
   in accordance with the procedure laid down in Article 24.
                                                                           kl
 ---pagebreak---                                     - 10 -
                                  Article 7
1. A basic co-responsibility levy shall be payable by producers in respect
   of the cereals referred to in Article 1 point a ) , with the exception of
   the codes NC 0709 90 and 0712 90, and point b) which are produced in the
   Community and placed on the market or sold to an intervention agency.
   These arrangements shall apply for the 1993/1994 and 1994/1995 marketing
   years.
   The amount of the basic co-responsibility levy shall be 3% of the target
   price in the 1993/94 marketing year and 2% in the 1994/95 marketing
   year.
2. The basic levy referred to in paragraph 1 will not be payable where :
         the cereals are placed on the market by a small producer as defined
         by Regulation (EEC) n' 729/89, in a Member State where Regulation
         (EEC) n' 1346/90 is not applied.
         the cereals are placed on the market by a producer as referred to
         in Article 2.7 of Regulation (EEC) n* 2328/91,
         the cereals are certified seed within the meaning of Directive
         66/402/EEC.
   The detailed rules for applying this paragraph will be adopted in
   accordance with the procedure laid down in article 24.
3. The levy provided for in this Article shall be regarded as forming part
   of the intervention measures designed to stabilize agricultural markets
   and shall be allocated to the financing of expenditure in the cereals
   sector.
4. For the purposes of applying this Article, for cereals other than maize
   and grain sorghum, produced in italy, Greece, Spain and Portugal,
    "marketing year" shall mean the period from 1 June to 31 May.
5. Detailed rules for the application of this Article, in particular the
   definition of placing on the market and the conditions for exempting
   cereal seeds shall be adopted in accordance with the procedure laid down
    in Article 24.
 ---pagebreak---                                    - 11 -
                                 Article 8
1. A production refund may be granted for starch obtained from maize, wheat
   or potatoes and for certain derivatives used in the manufacture of
   certain goods.
   A list of the goods referred to in the first subparagraph shall be drawn
   up in accordance with the procedure laid down In paragraph 3.
2. The refund shall be fixed periodically.
3. The Commission shall adopt detailed rules for the application of this
   Article and shall fix the amount of the refund in accordance with the
   procedure laid down in Article 24.
                                                                            u
 ---pagebreak---                                    - 12 -
                                 Article 9
1. A minimum price for potatoes destined for the manufacture of potato
   starch is fixed at:
   - 200 Ecu for the 1993/94 marketing year
   - 176 Ecu for the 1994/95 marketing year
   - 160 Ecu for the 1995/96 marketing year
These prices apply to the quantity of potatoes, delivered to the factory,
which are needed for making one tonne of starch.
2. A system of compensatory payments is established for producers of
   potatoes destined for the manufacture of potato starch. The amount of
   the payment applies to the quantity of potatoes needed for making one
   tonne of starch. It is set at:
   - 48 Ecu for the 1993/94 marketing year
   - 72 Ecu for the 1994/95 marketing year
   - 88 Ecu for the 1995/96 marketing year.
However, if the 1991 cereals harvest is found to have exceeded the Maximum
Guaranteed Quantity, these payments shall each be reduced by 8 Ecu per
tonne of starch.
3. The minimum price and the compensatory payment are adjusted according to
   the starch content of the potatoes.
4. If the situation on the potato starch market makes it necessary, the
   Council shall adopt the appropriate measures in accordance with the
   procedure laid down in Article 43 paragraph 2 of the Treaty.
5. The Commission shall adopt the detailed rules for applying this article
   following the procedure laid down in Article 24.
                                                                           A?
 ---pagebreak---                                        - 13 -
                                      TITLE II
                                     Article 10
    1. Imports into the Community or exports therefrom of any of the products
       listed in Article 1 shall be subject to the submission of an import or
       export licence which may be issued by Member States to any applicant
       irrespective of the place of his establishment in the Community. Where
       the levy or refund is fixed in advance, the advance fixing shall be
       noted on the licence which serves as supporting document for such
       advance fixing.
       The import or export licence shall be valid throughout the Community.
       The issue of such licences shall be conditional on the lodging of a
       security guaranteeing that importation or exportation will be effected
       during the period of validity of the licence; the security shall be
       forfeited in whole or in part if the transaction is not effected, or is
       only partially effected, within that period.
    2. The period of validity of licences and other detailed rules for the
       application of this Article shall be adopted in accordance with the
       procedure laid down in Article 24.
(7)
 ---pagebreak---                                    - 14 -
                                 Article 11
1. A levy equal for each product to the threshold price less the cif price
   shall be charged on imports of the products listed in Article 1(a), (b)
   and (c).
   However, the levy aplicable to rye shall be charged on imports of the
   products falling within subheading 1008 90 of the combined nomenclature.
2. The cif prices shall be calculated for Rotterdam on the basis of the
   most favourable purchasing opportunities on the world market, determined
   for each product on the basis of the quotations and prices of that
   market after adjustment for any differences in quality as compared with
   the standard quality for which the threshold price is fixed.
   Differences in quality shall be expressed in coefficients of
   equivalence.
3. Where free quotations on the world market are not a determining factor
   for the offer price and where this price is lower than world market
   prices, a special cif price calculated on the basis of the offer price
   shall be substituted for the cif price solely for the imports in
   question.
4. Detailed rules for the application of this Article, and in particular
   the coefficients of equivalence, the rules for determining cif prices
   and the margin within which variations in the factors used for
   calculating the levy do not require any alteration of the levy, shall be
   adopted in accordance with the procedure laid down in Article 24.
5. The Commission shall fix the levies mentioned in this Article.
 ---pagebreak---                                    - 15 -
                                 Article 12
1. A levy shall be charged on imports of products referred to in
   Article 1(d), with the exception of those falling within
   subheadings 0714 20 00, 0714 90 90, 2303 10 19, 2303 20 90, 2303 30 00,
   2308 10 00 and 2308 90 30, consisting of two components:
   A. a variable component which may be fixed and revised on a flat-rate
   basis:
   (a)  corresponding, in respect of products processed from basic products
        listed in Article 1(a), to the incidence on their prime cost of the
        levies on those basic products;
   (b)  increased, where appropriate, for processed products which contain
        both basic products listed in Article 1(a) and other products, by
        the amount of the incidence on their prime cost of the levies or
        customs duties charged on those other products-,
   (c)    fixed, for products which do not contain any basic products listed
         in Article 1(a), with reference to market conditions for those
        Article 1 products which are in competition with them-,
   B. A fixed component designed to protect the processing industry.
2. Where actual offers from third countries of products referred to in
   Article 1(d) do not correspond to the price which results from the price
   of basic products used in their manufacture plus processing costs, an
   amount fixed in accordance with the procedure laid down in Article 24
   may be added to the levy fixed in accordance with paragraph 1.
3. The Commission shall fix the levies specified in paragraph 1.
                                                                             Jf
 ---pagebreak---                                    - 16 -
                                 Article 13
1. The levy to be charged shall be that applicable on the day of
   importation.
2. However, as regards imports of products listed in Article 1(a) and (b),
   the levy applicable on the day on which application for a licence is
   lodged, adjusted on the basis of the threshold price which will be in
   force during the month of importation, shall be applied to an import to
   be effected during the period of validity of the licence, if the
   applicant so requests when applying for the licence. In this case, a
   premium, fixed at the same time as the levy, shall be added to the levy.
3. A decision may be taken in accordance with the procedure laid down in
   Article 24 to apply the provisions of paragraph 2, in whole or in part,
   to any of the products listed in Article 1(c) and (d).
    If an advance fixing of the levy has been prescribed for malt, the levy
   shall be adjusted during the first three months of the marketing year on
   the basis of the threshold price in force during the last month of the
   preceding marketing year.
4. Detailed rules for advance fixing shall be adopted in accordance with
   the procedure laid down in Article 24.
5. The scale of premiums shall be fixed by the Commission.
6. Where examination of the market situation shows that the application of
   the provisions concerning the advance fixing of the levy has given rise
   or may give rise to difficulties, a decision may be taken, in accordance
   with the procedure laid down in Article 24, to suspend the application
   of those provisions for the period strictly necessary.
    In cases of extreme urgency, the Commission may, after examination of
   the situation on the basis of all the information available to it,
   decide to suspend advance fixing for a maximum of three working days.
   Applications for licences accompanied by applications for advance fixing
    lodged during the period of suspension shall be rejected.
                                                                            ki
 ---pagebreak---                                    - 17 -
                                 Article 14
1. To the extent necessary to enable the products listed in Article 1 to be
   exported in the state referred to therein or in In the form of goods
   listed in Annex B on the basis of quotations or prices for those
   products on the world market, the difference between those quotations or
   prices and prices in the Community may be covered by an export refund.
2. The refund shall be the same for the whole Community. It may be varied
   according to use or destination.
   The refund shall be granted on application.
   Refunds shall be fixed at regular intervals in accordance with the
   procedure laid down in Article 24.
   Where necessary the Commission may, at the request of a Member State or
   on its own initiative, alter the refunds in the intervening period.
3. The amount of the refund applicable to exports of products listed in
   Article 1 and of goods listed in Annex B shall be that applicable on the
   day of exportation.
4. However, in the case of products listed in Article 1(a) and (b), the
   refund applicable on the day on which application for the licence is
    lodged, adjusted for the threshold price which will be in force during
   the month of exportation, shall be applied to an export to be effected
   during the period of validity of the licence if the applicant so
   requests when applying for the licence.
   A corrective amount may be fixed. It shall be applied to refunds fixed
    in advance. The corrective amount shall be fixed at the same time as
   the refund according to the same procedure; however, where necessary
   the Commission may, at the request of a Member State or on its own
    initiative, alter the corrective amounts in the intervening period.
   The provisions of the preceding subparagraphs may be applied, in whole
   or in part, to any of the products listed in Article 1(c) and (d) and to
   any products listed in Article 1 which are exported in the form of goods
   specified in Annex B.
    If advance fixing of the refund has been laid down for malt, the refund
   on exports, during the first three months of the marketing year, of malt
    in stock at the end of the preceding marketing year or made from barley
    in stock at that time shall be adjusted on the basis of the threshold
   price in force in the last month of the preceding marketing year.
                                                                            ro
 ---pagebreak---                                    - 18 -
5. In so far as is necessary to take account of the particular features of
   the production of certain spirituous beverages obtained from cereals,
   the criteria for granting the export refunds referred to in paragraph 1
   and the supervision procedures may be adapted to this particular
   situation. The Commission, acting In accordance with the procedure laid
   down in Article 24, shall lay down the detailed rules needed for this
   adaptation.
6. Detailed rules for the application of this Article shall be adopted in
   accordance with the procedure laid down in Article 24. Annex B shall be
   amended in accordance with the same procedure.
7. Where examination of the market situation shows that the application of
   the provisions concerning the advance fixing of the export refund has
   given rise or may give rise to difficulties, a decision may be taken, in
   accordance with the procedure laid down in Article 26, to suspend the
   application of those provisions for the period strictly necessary.
   In cases of extreme urgency, the Commission may, after examination of
   the situation on the basis of all the information available to it,
   decide to suspend advance fixing for a maximum of three working days.
   Applications for licences accompanied by applications for advance fixing
    lodged during the period of suspension shall be rejected.
                                                                          r/
 ---pagebreak---                                    - 19 -
                                 Article 15
1. To the extent necessary for the proper working of the common
   organization of the market in cereals, the use of inward processing
   arrangements may be prohibited in whole or in part:
         in respect of products listed in Article 1 which are intended for
        the manufacture of products listed in Article 1(c) and (d),
        and, in special cases, in respect of products listed in Article 1
        which are intended for the manufacture of goods listed in Annex B.
2. Measures adopted pursuant to this Article shall be decided on in
   accordance with the procedure laid down in Article 24.
                                                                           91
 ---pagebreak---                                    - 20 -
                                 Article 16
1. The general rules for the interpretation of the combined nomenclature
   and the special rules for its application shall apply to the tariff
   classification of products covered by this Regulation.
2. Save as otherwise provided in this Regulation or where derogation
   therefrom is decided by the Commission, acting in accordance with the
   procedure laid down in Article 24, the following shall be prohibited in
   trade with third countries:
        the levying of any customs duty or charge having equivalent effect,
        the application of any quantitative restriction or measure having
        equivalent effect.
                                                                            &
 ---pagebreak---                                        - 21 -
                                     Article 17
    1. When the quotations or prices on the world market for one or more of the
       products referred to in Article 1 reach the level of Community prices,
       and when that situation is likely to continue and to deteriorate,
       thereby disturbing or threatening to disturb the Community market,
       appropriate measures may be taken.
    2. The detailed rules for the application of this Article shall be adopted
       in accordance with the procedure laid down in Article 24.
(8)
 ---pagebreak---                                    - 22 -
                                 Article 18
1. If by reason of imports or exports the Community market in one or more
   of the products listed in Article 1 experiences or is threatened with
   serious disturbances which may endanger the objectives set out in
   Article 39 of the Treaty, appropriate measures may be applied in trade
   with third countries until such disturbance or threat of disturbance has
   ceased.
2. If the situation mentioned in paragraph 1 arises, the Commission shall,
   at the request of a Member State or on its own initiative, decide upon
   the necessary measures; the measures shall be communicated to the Member
   States and shall be immediately applicable. If the Commission receives
   a request from a Member State, it shall take a decision thereon within
   three days following receipt of the request.
3. Measures decided upon by the Commission may be referred to the Council
   by any Member State within three working days following the day on which
   they were communicated. The Council shall meet without delay. It may,
   acting by a qualified majority, amend or repeal the measures in
   quest ion.
                                                                           rr
 ---pagebreak---                                     - 23-
                                  TITLE III
                             General provisions
                                 Article 19
Goods listed in Article 1 which are manufactured or obtained from products
to which Articles 9(2) and 10(1) of the Treaty do not apply shall not be
admitted to free circulation within the Community.
                                                                           tt
 ---pagebreak---                                    - 24 -
                                 Article 20
Save as otherwise provided in this Regulation, Articles 92 to 94 of the
Treaty shall apply to the production of and trade in the products listed in
Article 1.
                                                                           57-
 ---pagebreak---                                 - 25 -
                              Article 21
Article 40(4) of the Treaty and the relevant provisions for the
implementation of Article 40 shall, so far as the Guarantee Section of
the European Agricultural Guidance and Guarantee Fund is concerned,
apply to the French overseas departments in respect of the products
referred to in Article 1.
                                                                       f?
 ---pagebreak---                                    - 26 -
                                 Article 22
Member States and the Commission shall communicate to each other the
information necessary for implementing this Regulation and for complying
with the international obligations concerning cereals. Rules for the
communication and distribution of such Information shall be adopted in
accordance with the procedure laid down in Article 24.
                                                                         rf
 ---pagebreak---                                    - 27 -
                                 Article 23
1. A Management Committee for Cereals (hereinafter called the "Committee")
   shall be established, consisting of representatives of the Member States
   and presided over by a representative of the Commission.
2. Within the Committee the votes of Member States shall be weighted in
   accordance with Article 148(2) of the Treaty. The Chairman shall not
   vote.
                                                                            Jo
 ---pagebreak---                                    - 28 -
                                 Article 24
1. Where the procedure laid down in this Article is to be followed, the
   Chairman shall refer the matter to the Committee, either on his own
   initiative or at the request of the representative of a Member State.
2. The representative of the Commission shall submit a draft of the
   measures to be adopted. The Committee shall deliver its opinion on the
   draft within a time limit set by the Chairman according to the urgency
   of the matter. An opinion shall be delivered by a majority of 54 votes.
3. The Commission shall adopt measures which shall apply immediately.
   However, if these measures are not in accordance with the opinion of the
   Committee, they shall forthwith be communicated by the Commission to the
   Council. In that event the Commission may defer application of the
   measures which it has adopted for not more than one month from the date
   of such communication.
   The Council, acting by a qualified majority, may take a different
   decision within one month.
                                                                           H
 ---pagebreak---                                    - 29 -
                                 Article 25
The Committee may consider any other question referred to it by its
Chairman either on his own initiative or at the request of the
representative of a Member State.
                                                                    u
 ---pagebreak---                                    - 30 -
                                Article 26
This Regulation shall be so applied that appropriate account is taken, at
the same time, of the objectives set out in Articles 39 and 110 of the
Treaty.
 ---pagebreak---                                    - 31 -
                                 Article 27
1. Council Regulation No 2727/75 is hereby repealed with effect from the
   1993/94 marketing year.
   References to the Regulation repealed by paragraph 1 shall be construed
   as references to this Regulation.
   A table is provided in Annex C for the purposes of correlating citations
   of and references to the Articles of that Regulation with those of this
   Regulation.
2. The following Regulations are hereby repealed:
         with effect from the beginning of the 1993/94 marketing year:
         Regulations (EEC) Nos 2731/75, 2743/75, 2744/75, 2745/75, 2746/75,
         2747/75, 2748/75, 1145/76, 3103/76. 1188/81, 1008/86, 1009/86,
         1581/86, 1582/86, 2226/88 and 1835/89;
         with effect from the 1995/96 marketing year:
         Regulations (EEC) Nos 729/89 and 1346/90.
3. To facilitate the transition from the current arrangement as regards the
   common organization of the market in cereals to the arrangments
   resulting from this Regulation, or to facilitate the transition from one
   marketing year to the next during the marketing years 1993/94, 1994/95
   and 1995/96, the Commission, acting in accordance with the procedure
    laid down in Article 24, may adopt any transitional measures deemed
   approprlate.
 ---pagebreak---                                    - 32 -
                                 Article 28
This Regulation shall enter into force on the seventh day following its
publication In the Official Journal of the European Communities.
it shall apply from the 1993/94 marketing year;  however, Article 27(3)
shall apply from 1 January 1993.
This Regulation shall be binding in its entirety and directly applicable in
a 11 Member States.
Done at Brussels,
                                                                            (r
 ---pagebreak---                                                            - 33 -
31. 12. 87                          Official Journal of the European Communities                                               No L 377/3
                                                          7UVKEX A
                             Products referred to in Article 1(d)
                 C N codr                                             Description
              0714        Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers
                          with high starch or inulin content, fresh or dried, whether or not sliced or in the form of pellets;
                          sago pith:
           ex II02        Cereal flours other than of wheat or meslin:
              1102 20     -   Maize (corn) flour
               1102 90    -    Other:
               1102 90 jo  -  — Barley flour
               1102 90 30 -   -  Oat flour
              1102 90 90         Other
                          Cereal groats, meal and pellets with the exception of groats and meal of wheat (subheading
           e\ 1103         1103 11), groats and meal of rice (subheading 1103 14 00) and pellets of rice (subheading
                           1103 29 50
                          Cereal grains otherwise worked (for example, hulled, rolled, flaked, pearled, sliced or
           e\ 11H4         kibbled', except rice of heading No 1006 and flaked rice of subheading 1104 19 9 1 ; germ of
                          cereals, whole, rolled, flaked or ground
               1106 2"    Flour and meal of sago, roots or tubers of heading No 0714
           e.\ 11 (is     Starches; mulm:
                          -   Starches:
              110S 11 Od  -   -  Wheat starch
              1108 12 ne  -   -  Maize .corn' starch
              1108 H on    -  -  Potato starch
              3108 14 00  -   -  Manioc (cassava' starch
           e\ 110K 19     -   -  Other starches:
              1108 19 QO  -   -  -   Other
              11 09 0000  Wheat gluten, whether or not dried
               1 "02      Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form;
                          sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or
                          not mixed with natural honey; caramel:
           e\ 1"02 30     -   Glucose and glucose syrup, not containing fructose or containing in the dry state less than
                              20 % bv weight of fructose:
                          -   -  Other:
                                    Other:
              1~02 30     -   — — — In the form of white crystalline powder, whether or not agglomerated
              1*02 30     -   -  -   -  Other
           ex 1*02 40     -   Glucose and glucose syrup containing, in the dry state, at least 20 % but less than 50 % by
                              weight of fructose, but excluding isoglucose of subheading 1702 40 10
           ex 1*02 90     -   Other, including invert sugar:
              1*02 9" >0  -   -  Maltodextrine and maltodextrine syrup
                          -   — Caramel:
                                                                                                                                      u
                                    Other:
 ---pagebreak---                                                                  - 34 -
No L 377/4                                  Official Journal of the European Communities                                           31. 12. 87
                CN code                                                     Description
              1*02 9 0 * 5    '-    — - — In powder form whether or not agglomerated
              1*02 9 0 * 9    '                Other
              2106            [ Food preparations not elsewhere specified or included:
           ex 2106 90         !-    Other:
                              J - — Flavoured or coloured syrups:
                              j             Other:
              2106 90 55      j — — — — Glucose syrup and maltodextrine syrup
                              I
           ex 2302             ; Bran, sharps and other residues, whether or not in the form of pellets, derived from the sifting,
                              j milling or other working of cereals
           e\ 2303               Residues of starch manufacture and similar residues, beetpulp, bagasse and other waste of
                              • sugar manufacture, brewing or distilling dregs and waste, whether or not in the form of
                              I pellets:
              2503 10         '• -    Residues of starch manufacture and similar residues
              2303 30 00       '-   Brewing or distilling dregs and waste
              2308               Vegetable materials and vegetable waste, vegetable residues and by-products, whether or not
                                 in the form of pellets, of a kind used in animal feeding, not elsewhere specified or
                                 included:
              2308 10 00       :-   Acorns and horse-chestnuts
                              !
           ex 2308 90            -  Other:
           a 230S 90 30          -  -   Pomace or marc of fruit, other than grapes
              2309               Preparations of a kind used in animal feeding:
           ex 2309 10            -  Dog or cat food, put up for retail sale:
              2309  10 11        -  -   Containing starch, glucose, glucose s> rup. maitodextrine or maltodextrine syrup falling
              2309  10 13               within subheadings 1*02 30 51 to 1*02 30 99. 1*02 40 90, 1702 90 50 and
              2309  10 31               2106 90 55 or milk products (: except preparations and feedingstuffscontaining 50%
              2309  10 33               or more by weight of milk products
              2309  10 51
              2309  10 53
           ex 2309 90            -  Other:
              2309  90 31        —-     Other, containing starch, glucose, glucose syrup, maltodextrine or maltodextrine syrup
              2309  90 33               falling within subheadings 1*02 30 51 to 1702 30 99, 1702 40 90, 1702 90 50 and
              2309  90 41               2106 90 55 or milk products {''except preparations and fecdingstuffs containing 50 %
              2309  90 43               or more by weight of milk products
              2309  90 51
              2309  90 53
              For the purposes of this subheading "milk produas' means produas falling within heading N'os 0401 to 0406 as well as
              subheadings 1 "02 10 and 2106 90 51.'
                                                                                                                                          fr
 ---pagebreak---                                                        -  35     -
25. 1. 89                       Official Journal of the European C o m m u n i t i e s                              N o L 20/17
                                                     'ANNEX      B
                CN code                                          Description
          ex 0403          Buttermilk, curdled milk and cream, yogurt, képhir «nd other fermented or acidified
                           milk and cream, whether or not concentrated or containing added sugar or other
                           sweetening matter or flavoured or containing added fruit or cocoa :
          ex 0403 10        — Yogurt
                            — — Flavoured or containing added fruit or cocoa :
                            — — — In powder, granules or other solid forms, of a milk fat content by weight :
               0403 10 51   — — — — Not exceeding 1,5 %
               0403 10 53   — — — — Exceeding 1,5 % but not exceeding 27 %
               0403 10 59   — — — — Exceeding 27 %
                            — — — Other, of a milk fat content, by weight :
               0403 10 91   — — — — Not exceeding 3 %
               0403 10 93   — — — — Exceeding 3 % but not exceeding 6 %
               0403 10 99   — — - — Exceeding 6 %
           ex 0403 90       — Other :
                            — — Flavoured or containing added fruit or cocoa :
                            — — — In powder, granules or other solid forms, of a milkfat content, by weight :
               0403 90 71   —-    -  - Not exceeding 1,5 %
               0403 90 73   — - — — Exceeding 1,5%, but not exceeding 2 7 %
               0403 90 79               Exceeding 27 %
                            — - — Other, of a milkfat content, by weight :
               0403 90 91   —-    — — Not exceeding 3 %
               0403 90 93   —-    — — Exceeding 3 % but not exceeding 6 %
               0403 90 99   — — — - Exceeding 6 %
           ex 0710          Vegetables (uncooked or cooked by steaming or boiling in water), frozen :
               0710 40 00   — Sweet com
               0711         Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in
                            sulphur water or in other preservative solutions), but unsuitable in that state for imme-
                            diate consumption :
            ex 0711 90       — Other vegetables, mixtures of vegetables :
                             — — Vegetables :
                0711 90 30   — — — Sweet corn
            ex 1302         Vegeuble saps and extracts ; pectic substances, pectinates and pectates ; agar-agar and
                            other mucilages and thickeners, whether or not modified, derived from vegeuble
                            products :
                             — Mucilages and thickeners, whether or not modified, derived from vegeuble
                               products :
                1302 31 00        Agar-agar
                1302 32      — — Mucilages and thickeners, whether or not modified, derived from locust beans,
                                  locust bean seeds or guar deeds
                1302 39 00        Other
                                                                                                                             fr
 ---pagebreak---                                                           -  36   -
N o L 20/18                        Official Journal of the European C o m m u n i t i e s                                  25. 1. 89
                 CN code                                           Description
            ex 1518 00       Animal or vegeuble fats and oils and their fractions, boiled, oxidized, dehydrated,
                             sulphurized, blown, polymerized by heat in vacuum or in inert gas or otherwise chemi-
                             cally modified, excluding those of heading No 1516 ; inedible mixtures or preparations
                             of animal or vegeuble fats or oils or of fractions of different fats or oils of this chapter,
                             not elsewhere specified or included :
                1518 00 10    — Linoxyn
            ex 1520          Glycerol (glycerine), whether or not pure ; glycerol waters and glycerol lyes :
                1520 90 00    — Other, including synthetic glycerol
                1702         Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid
                             form ; sugar syrups not conuining added flavouring or colouring matter ; articicial
                             honey, whether or not mixed with natural honey ; caramel :
             ex 1702 90       — Other, including invert sugar
                 1702 90 10   — — Chemically pure maltose
             ex 1704          Sugar confectionery (including white chocolate), not conuining cocoa, excluding liquo-
                              rice extract conuining more than 10 % by weight of sucrose but not containing other
                              added subsunces of subheading 1704 90 10
                 1806         Chocolate and other food preparations conuining cocoa
                 1901         Malt extract ; food preparations of flour, meal, surch or malt extract, not containing
                              cocoa powder or conuining cocoa powder in a proportion by weight of less than 50 %,
                              not elsewhere specified or included ; food preparations of goods of headings Nos 0401
                              to 0404, not conuining cocoa powder or conuining cocoa powder in a proportion by
                              weight of less than 10 %, not elsewhere specified or included
             ex 1902          Pasu, whether or not cooked or stuffed (with meat or other subsunces) or otherwise
                              prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni ;
                              couscous, whether or not prepared :
                               — Uncooked pasu, not stuffed or otherwise prepared :
                 1902 11 00    — — Conuining eggs
                 1902 19             Other
              ex 1902 20       — Stuffed pasu whether or not cooked or otherwise prepared :
                                     Other :
                  1902 20 91   — — — Cooked
                  1902 20 99             Other
                 1902 30       — Other pasu
                 1902 40       — Couscous :
                  1903 00 00   Tapioca and substitutes thereof prepared from surch, in the form of flakes, grains,
                               pearls, siftings or similar forms
                  1904         Prepared foods obtained by the swelling or roasting of cereals or cereal products (for
                               example, com flakes) ; cereals, other than maize (com), in grain form, precooked or
                               otherwise prepared
                                                                                                                               it
 ---pagebreak---                                                    "- 3 7    -
25. 1. 89                        Official Journal of the European C o m m u n i t i e s                              N o L 20/19
               CN code                                            Description
              1905         Bread, pastry, cakes, biscuits and other bakers' wares, whether or not conuining cocoa ;
                           communion wafers, empty cachets of a kind suiuble for pharmaceutical use, sealing
                           wafers, rice paper and similar products
              2001         Vegeubles, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar
                           or acetic acid :
          ex 2001 90        — Other:
              2001 90 30    — — Sweet com (Zea mays var.          saccbarata)
              2001 90 40          Yams, sweet poutoes and similar edible parts of plants containing 5 */• or more
                                   by weight of surch
              2004         Other vegeubles prepared or preserved otherwise than by vinegar or acetic acid,
                           frozen :
          ex 2004 10        — Poutoes
                                   Other :
              2004 10 91    — — — In the form of flour, meal or flakes
          ex 2004 90        — Other vegeubles and mixtures of vegeubles :
              2004 90 10    — — Sweet com (Zea mays var.         saccbarata)
          ex 2005           Other vegeubles prepared or preserved otherwise than by vinegar or acetic acid, not
                            frozen :
              2005 20        — Poutoes :
              2005 20 10     — — In the form of flour, meal or flakes
               2005 80 00    — Sweet com (Zea mays var. saccbarata)
           ex 2008          Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether
                            or not conuining added sugar or other sweetening matter or spirit, not elsewhere
                            specified or included :
                             — Nuts, ground-nuts and other seeds, whether or not mixed together :
           ex 2008 1 1       — — Ground-nuts
               2008 11 10    — — — Peanut butter
               2208 91 00             Palm hearts
           ex 2008 99                 Other :
                             — — — Not conuining spirit :
                             —-     — — Not conuining added sugar :
               2008 99 85    - - - - -       Maize (com) other than sweet com (Zea mays var.         saccbarata)
               2008 99 91    — — — — — Yams, sweet poutoes and similar edible parts of plants, conuinings 5 %
                                             or more by weight of surch
           ex 2101           Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis
                             of these products or with a basis of coffee, tea or maté ; roasted chicory and other
                             roasted coffee substitutes and extracts, essences and concentrates, thereof:
               2101 10        — Extracts, essences and concentrates of coffee, and preparations with a basic of these
                                extracts, essences or concentrates of with a basis of coffee
               2101 20        — Extracts, essences and concentrates, of tea or maté, and preparations with a basis of
                                these extracts, essences or concentrates or with a basis of tea or maté
           ex 2101 30         — Roasted chicory and other roasted coffee substitutes, and extracts, essences and
                                concentrates thereof :
                              — — Roasted chicory and other roasted coffee substitutes :
                2101 30 19    — — — Other (than roasted chicory)
                              — — Extracts, essences and concentrates of roasted chicory and other roasted coffee
                                    substitutes :
                2101 30 99             Other (than roasted chicory)
                                                                                                                              10
 ---pagebreak---                                                            - 38 -
No L 20/20                        Official Journal of the European Communities                                        25. 1. 89
                 CN code                                           Description
               2102         Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including
                            vaccines of heading No 3002) ; prepared baking powders :
           ex 2102 10       - Active yeasts:
                            — — Bakers' yeast :
               2101 10 31               Dried
               2102 10 39               Other
           ex 2102 20        — Inactive yeasts; other single-cell micro-organisms, dead:
                             — — Inactive yeasts :
               2102 20 11    — — — In ublet, cube or similar form, or in immediate packings of a net content not
                                        exceeding 1 kg
                2102 20 19   -'         Other
           ex 2103          Sauces and preparations therefor; mixed condiments and mixed seasonings:
                2103 10 00   - Soya sauce
                2103 20 00   — Tomato ketchup and other tomato sauces
                2103 90       -Other
            ex 2104          Soups and broths and preparations therefor; homogenized composite food prepara-
                             tions :
                2104 10 00    — Soups and broths and preparations therefor
                2105 00      Ice cream and other edible ice, whether or not conuining cocoa
            ex 2106          Food preparations not elsewhere specified or included:
                2106 10       — Protein concentrates and textured protein subsunces:
            ex 2106 90        - Other:
                2106 90 10           Cheese fondues
                              — — Flavoured or coloured sugar syrups :
                2106 90 91    — — — Conuining no milkfats, milk proteins, sucrose, isoglucose, glucose or surch
                                         or conuining less than 1,5 % milkfat, 2,5 % milk proteins, 5 % sucrose or
                                         isoglucose, 5 % glucose or surch
                 2106 90 99              Other
                 2202         Waters, including mineral waters and aerated waters, conuining added sugar or other
                              sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit
                              or vegeuble juices of heading No 2009
                 2203 00      Beer made from malt
                 2205         Vermouth and other wine of fresh grapes flavoured with plants or aromatic subsunces
             ex 2208          Undematured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol ;
                              spirits, liqueurs and other spirituous beverages ; compound alcoholic preparations of a
                              kind used for the manufacture.of beverages:
             ex 2208 30        - Whiskies
                               — — Other than Bourbon in containers holding :
                 2208 30 91               2 litres or less
                 2208 30 99               More than 2 litres
                 2208 50       - Gin and Geneva
             ex 2208 90        - Other :
                                      Vodka of an alcoholic strenght by volume of 45,4 % vol or less and plum, pear
                                      or cherry spirit (excluding liqueurs), in containers holding :
                               — — — 2 litres or less :
                                                                                                                         ?/
 ---pagebreak---                                                           - 39 -
25. 1. 89                        Official Journal of the European Communities                                         No L 20/21
                 CN code                                           Description
               2208 90 31                Vodka
          e x 2208 90 39              More than 2 litres: V O d k a
               2208 90 51
                2208 90 53
                2208 90 55
                2208 90 59
                2208 90 71
                2208 90 73
                2208 90 79
            ex 2520         Gypsum ; anhydrite ; plasters (consisting of calcined gypsum or calcium sulphate)
                            whether or not coloured, with or without small quantities of accelerators or reurders :
                2520 20     - Plasters
            ex 2839         Silicates ; commercial alkali meul silicates :
                2839 90     - Other
            Chapter 29      Organic chemicals
            Chapter 30      Pharmaceutkal products
            ex 330*         Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations,
                            depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere speci-
                            fied or included ; prepared room deodorizers, whether or not perfumed or having disin-
                            fectant properties :
                             - Preparations for perfuming or deodorizing rooms, including odorifirous preparations
                                used during religious rites :
                 330* 49 00  - — Other than 'Agarbatti' and other odorifirous preparations which operate by
                                   burning
                 330*90 00  -   Other
            ex 340!         Soap ; organic surface-active products and preparations for use as soap, in the form of
                            bars, cakes, moulded pieces or shapes, whether of not conuining soap ; paper, wadding,
                            felt and nonwovens, impregnated, coated or covered with soap or detergent :
                             — Soap and organic surface-active products and preparations, in the form of bars,
                                cakes, moulded pieces or shapes, and paper, wadding, felt and nonwovens, impreg-
                                nated, coated or covered with soap or detergent :
                 3401 19 00        Other
                 3402       Organic surface-active agents (other than soap) ; surface-active preparations, washing
                            preparations (including auxiliary washing preparations) and cleaning preparations,
                            whether or not conuining soap, other than those of heading No 3401 :
             ex 3403        Lubricating preparations (including cutting-oil preparations, bolt or nut release prepa-
                             rations, anti-rust or anti-corrosion preparations and mould release preparations, based
                            on lubricants) and preparations of a kind used for the oil or gTease treatment of textile
                             materials, leather, furskins or other materials, but excluding preparations containing, as
                             basic constituents, 70 % or more by weight of petroleum oils or of oils obtained from
                             bituminous minerals :
                              — Conuining petroleum oils or oils obuined from bituminous minerals :
                 3403 11 00   — — Preparations for the treatment of textile materials, leather, furskins or other
                                    materials
                 3403 19
                                    Other :
             ex 3403 19 10
                              — — - Conuining 70 % or more by weight of petroleum oils or of oils obuined
                                       from bituminous minerals but not as the basic constituent
                                                                                                                             f£
 ---pagebreak---                                                          -   40   -
N o L 20/22                      Official Journal of the European C o m m u n i t i e s                                 25. 1. 89
                 CN code                                          Description
            ex 3405         Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal, scouring
                            pastes and powders and similar preparations (whether or not in the form of paper,
                            wadding, felt, nonwovens, cellular plastics or cellular rubber, impregnated, coated or
                            covered with such preparations), excluding waxes of heading No 3404
                3407 00 00  Modelling pastes, including those put up for children's amusment ; preparations known
                            as 'denul wax' or as 'denul impression compounds', put up in sets, in packings for
                            reuil sale or in plates, horseshoe shapes, sticks or similar forms ; other preparations for
                            use in dentistry, with a basis of «plaster (of calcined gypsum or calcium sulphate)
            Chapter 35      Albuminoidal subsunces ; modified surches ; glues, enzymes, excluding heading No
                            3501
            Chapter 38      Miscellaneous chemical products
            Chapter 39      Plastics and articles thereof
                4813        Cigarette paper, whether or not cut to size or in the form of booklets or tubes :
            ex 4813 90       — Other :
                4813 90 90         Others
            ex 4818         Toilet paper, handkerchiefs, cleansing tissues, towels, ublecloths, serviettes, napkins for
                            babies, urn pons, bed sheets and similar household, saniury or hospiul articles, articles
                            of apparel and clothing accessories, of paper pulp, paper, cellulose wadding or webs of
                            cellulose fibres :
                4818 10      — Toilet paper
            ex 4823         Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or
                            shape ; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of
                            cellulose fibres :
                             — Gummed or adhesive paper, in strips or rolls :
                4823 11      — — Self-adhesive
                4823 19 00         Other
                4823 20 00   — Filter paper and paperboard
                             — Other paper and paperboard, of a kind used for writing, printing or other graphic
                                purposes :
                4823 51      — — Printed, embossed or perforated
                4823 59            Other
             ex 4823 90      — Other :
                                   Other :
                                      Other :
                             — — — — Cut to size or shape :
                 4823 90 51  — — — — — Condenser paper
                                             Other :
                 4823 90 71  — — — — — — Gummed or adhesive paper
                 4823 90 79                     Other'
                                                                                                                             #
 ---pagebreak---                           - 41 -
                             ANNEX C
                        Correlation table
Regulation   N' 2727/75                     This regulation
Article 1                                 Article 1
        2                                          2
        3                                          3
        4                                          7
        4 (b)
        5                                          5
        6                                          3
        7                                          4
        8                                          6
                                                  27
       10
       10  (a)
       10  (b)
       11  (a)                                     8
       11  (b)
       12                                         10
       13                                         11
       14                                         12
       15                                         13
       16                                         14
       17                                         15
       18                                         16
       19                                         17
       20                                         18
       21                                         19
       22                                         20
       23
       23  (a)                                    21
       24                                         22
       25                                         23
       26                                         24
       27                                         25
       28
       29                                         26
       30                                         27
ANNEX  A                                          ANNEXE A
ANNEX  B                                          ANNEXE B
ANNEX  C                                          ANNEXE C
                                                            n
 ---pagebreak---                                 -ht'
                         EXPLANATORY MEMORANDUM
This regulation is designed to carry forward existing arrangements up
until the beginning of the 1993/94 marketing year.
The first paragraph carries forward the legal basis for applying the
basic coresponsibiIity levy, which would otherwise expire during the
intervening per iod.
If the 1991 crop exceeds the Maximum Guaranteed Quantity (MGQ) existing
legislation already implies a 3% price cut in 1992/93. A levy of up to
1 1/2% would also be due in 1992/93 if the 1991 crop exceeds the MGQ by
more than 1 1/2%. The effect of this proposal would be to increase
that levy up to a maximum of 3%.
The proposal would also imply that if the 1992 crop exceeds the
extended MGQ there would be a 3% price cut in 1993 if the existing
regulatory framework remains. However if the arable reform package in
the cereals sector is in force by then, there will be no such
consequence.
                                                                        ?*
 ---pagebreak---                               -kd-
                     COUNCIL REGULATION (EEC) No     /..
                                  Of
                 amending Regulation (EEC) No 2727/75 on the
                common organization of the market in cereals
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 Commission1,
Having regard to the opinion of the European Parliament2,
Having regard to the opinion of the Economic and Social Committee3,
Whereas Regulation (EEC) No 2727/7S4, as last amended by Regulation (EEC)
No 3577/90^, provides for the application of a system of a basic and an
additional co-responsibility levy for the period 1988/89 to 1991/92;
Whereas the trend in Community production of cereals and internal
consumption thereof shows a growing imbalance and, thus, an accumulation of
 intervention stocks; whereas in such a situation and pending the
 implementation of a general reform of the machinery of the common
organization of the market in cereals, the restrictive price policy
operated in the sector should be continued; whereas the application of the
basic co-responsibility levy and the system of a maximum guaranteed
quantity constitutes the main element of that policy; whereas the said
schemes should be renewed for the marketing years preceding the full
 implementation of the general reform of the agricultural policy in the
cereals sector,
HAS ADOPTED THIS REGULATION:
                                   Article 1
Regulation (EEC) No 2727/75 is hereby amended as follows:
 1. In Article 4(1) "for the 1988/89 to 191/92 marketing years" is replaced
    by "for the marketing years 1991/92 and 1992/93".
 2. In the last sentence of Article 4b(1), "for the 1988/89, 1989/90,
    1990/91 and 1991/92 marketing years" is replaced by "for the marketing
    years 1991/92 and 1992/93".
 1 OJ No C 260, 13.10.1989, p. 4.
 2
 3
 4 OJ No L 281, 1.11.1975, p. 1.
 5 0J No L 353, 17.12.1990, p. 23.
                                                                            u
 ---pagebreak---                                  -Ur
                                 Article 2
This Regulation shall enter into force on the seventh day following its
publication in the Official Journal of the European Communities.
This Regulation shall be binding In its entirety and directly applicable in
a 11 Member States.
It shall apply from the 1992/93 marketing year.
                                                                            ?->
 ---pagebreak--- C A P      R E F O R M
    Lega I  texts
      Beef
 ---pagebreak---  ---pagebreak---                                  -lib-
                           Explanatory memorandum
For an analysis of the general agricultural situation and a statement of
the reform targets and the means by which they are to be achieved,
reference should be made to document C0M(91) 258.
This memorandum covers the three reform package Regulations for the beef
and veal sector:
1. Adjustment of intervention price
Under the reform proposals the Intervention price is to be adjusted in
three stages in the same way as for cereals.
The proposals in C0M(91) 258 are adopted in full: the  Intervention price
being ECU 343/100 kg carcase weight of quality R3 for  each 12-month period,
from 1 July 1993 this is reduced by 5% for the first,  10% for the second
and 15% for the third year. The other aspects of the   system are unchanged.
2. Financing of promotion measures
This Regulation defines the type of measures which may -be cofinanced.
Since the intention Is to promote quality production, It is proposed to
 Incite the industry to set up programmes to control quality throughout the
production chain from farmer to consumer.
 It was initially proposed that the measures be co-financed by deduction
from the Intervention price. This Idea has been dropped on the grounds
that there would be an unavoidable direct effect on the processing margin
(3.5% or 2.5% added to the market price). Given the present delicate
balance (owed to this margin) any disturbance should be avoided so as not
to set off a new downward price spiral that In turn might force the
Commission to propose an increase In the margin.
3. Producer premiums
 In order to simplify the provisions covering these they are grouped in a
new section of Regulation (EEC) No 805/68. This covers:
-   the special premium for beef producers;
-   the premium for maintaining suckler cows;
    the processing premium for male calves of dairy breeds.
                                                                             H
 ---pagebreak---                                    - 2 -
The first two premiums will be gradually adjusted at the same time as the
changes decided on for cereals.
The age brackets for the special premium are wider than those indicated in
Document C0M(91) 258. This Is necessary for effective management and
control and there Is no risk In regard to the number of eligible animals.
In the case of the suckler cow premium the Member States will continue to
be able to grant a national supplement (ECU 25 per cow), part of which in
the cas of holdings located in objective I regions (structures) can be
coflnanced by the EAGGF.
                                                                           po
 ---pagebreak---                                       Draft
                     COUNCIL REGULATION (EEC) No      /91
                                   of
       amending Regulation (EEC) No 805/68 on the common organization
                       of the market in beef and veal and
        repealing Regulation (EEC) No 468/87 laying down general rules
              applying to the special premium for beef producers
                  and Regulation (EEC) No 1357/80 Introducing
               a system of premiums for maintaining suck 1er cows
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 1 ,
Having regard to the opinion of the European Parliament 2 ,
Whereas the beef and veal sector is persistently subject to economic
factors which, given the possibilities for exports to third countries,
cause structural   imbalance between supply and demand on the Community
market ;
Whereas In order to redress the situation of agriculture in general
measures must be applied both In the farming sectors supplying raw
materials for beef and veal production and in the beef and veal sector
 itself;  whereas as a result of these measures the intervention price for
beef is to be reduced;
                                                                           ei
 ---pagebreak--- Whereas, given the consequences for producers, partial compensation should
be granted in the form of premiums, subject to a limit on the number of
eligible animals per holding;   whereas, given the variety of stockfarming
enterprises, the special premium for beef producers and the premium for
maintaining suckler cow herds should be continued;   whereas these schemes
should be adapted to the new situation by redefinition of the conditions of
grant;
Whereas one of the market destabilizing factors is the availability of a
 large number of male calves of dairy breeds-, whereas these animals do not
yield a product of desirable quality and the volume of production merely
 increases overall output;  whereas a premium for the withdrawal from
production of such calves should be Instituted;
Whereas, given the rising trend towards Intensification of beef and veal
production, premiums for stockfarming should be determined with due regard
for the various possibilities of use of the forage capacity of each holding
 in relation to the numbers and species of animals held;  whereas, to
encourage extensive production, the grant of such premiums should be
subject to compliance with a maximum stocking density on the holding,
taking account of the specific stockfarming conditions obtaining In the
various regions of the Community;   whereas account should be taken of the
situation of very small-scale producers keeping suckler cows;
Whereas producers fattening beef on extensive holdings do not benefit as
much as intensive producers from reductions In Input prices;   whereas this
situation should be remedied by authorizing the grant of the special
 premium until the animals reach the age of three years;
                                                                            ^
 ---pagebreak--- Whereas the amounts of the premiums for cattle farming should be adapted
progressively In several stages;     whereas, in order to achieve the desired
economic target, the premiums must be granted within a certain time limit;
Whereas, in the case of the suckler cow premium, specific conditions must
be laid down to permit the transition from the old arrangements to the new-,
Whereas, in order to maintain the consistency of Community agricultural
 legislation, It is appropriate to use existing legislative instruments to
 lay down conditions concerning extensification;     whereas Council Regulation
 (EEC) No 2328/91 of 15 July 1991 on Improving the efficiency of
agricultural structures 3 and Council Directive No 75/268/EEC of 28 April
 1975 on mountain and hill farming and farming In certain     less-favoured
 areas 4 , as last amended by Regulation (EEC) No 797/85 5 , can be used for
 this purpose;
Whereas, in order to monitor stockfarming enterprises qualifying for
 premiums, a system of marking and registration of stock satisfying
 identical criteria throughout the Community must be introduced;      whereas
 Regulation (EEC) No ../91 (to be adopted) 6 should be used for this
 purpose;
 Whereas in order to simplify agricultural    legislation the premium
 arrangements should be grouped In a single section of Regulation
 (EEC) No 805/68,
 HAS ADOPTED THIS REGULATION:
                                    Article 1
 Regulation (EEC) No 805/68 is amended as follows
 3  OJ L 218, 6.8.1991, p.1.
 4  0J No L 128, 19.5.1975, p. 1.
 5  OJ No L 93, 30.3.1985, p.1.
 6
                                                                               w
 ---pagebreak--- 1.   The following heading Is Inserted before Article 4a:
"Section 1 - Premiums"
2.   Article 4a Is replaced by the following:
                                  "Article 4a
For the purposes of this section:
- 'producer' means an individual farmer, whether a natural or a legal
person or group of natural or legal persons, Irrespective of the legal
status conferred by national law on such a group or its members, whose
holding is located In Community territory and who is engaged in rearing
bovine animals-,
- 'holding' means all the production units managed by the producer and
 located in the territory of a single Member State;
- 'suckler cow' means:
 (I) a cow belonging to a meat breed or born of a cross with a meat breed,
and belonging to a herd Intended for rearing calves for meat production, or
 (II) an in-calf heifer, meeting the same criteria, which replaces a suckler
cow.
                                   Article 4b
 1.  A producer fattening male bovine animals on his holding may qualify for
a special premium.    It shall be granted, on application, In the form of an
annual premium for not more than 90 animals per calendar year per holding.
                                                                             fk
 ---pagebreak--- 2.   Grant of the premium shall be limited to the first three years of life
of each male bovine animal.    Premium applications shall concern bovine
animals In the following age brackets only:
- not less than 6 months and not more than 9 months
- not less than 14 months and not more than 22 months
- not less than 28 months and not more than 34 months
which are kept for fattening by the producer for a period to be determined.
3.   Member States may decide to grant the premium at the time of slaughter.
 It shall be granted only in respect of carcases weighing not less than
200 kg.    The premium shall be paid to the producers.
4.   The amount of the premium shall be:
- ECU 40 per eligible animal for calendar year 199(3);
- ECU 50 per eligible animal for calendar year 199(4);
- ECU 60 per eligible animal for calendar year 199(5) and thereafter;
 Except in duly Justified cases, payment must be made not later ttian 30
April of the year following the calendar year for which the premium is
 applled for.
 5.   From the time of the first premium application each male bovine animal
 must be covered by an administrative document until it reaches three years
 of age or until slaughter.
 6.   Detailed rules for applying this Article shall be adopted by the
 Commission in accordance with the procedure laid down in Article 27.
                                                                             ^
 ---pagebreak---                                   ArtIcle 4c
1.   A producer keeping suckler cows on his holding for rearing calves for
beef production may qualify for a premium for maintaining suckler cows.
The premium shall be granted, on application, for not more than 90 suckler
cows per calendar year per holding.
2.   The premium shall be granted to any producer not supplying milk or milk
products from his holding during the calendar year for which the premium is
applied for, provided that he keeps for not less than six successive months
 in that year a number of suckler cows at least equal to the number in
respect of which the premium Is applied for.
The supply of milk or milk products directly from the holding to the
consumer shall not prevent grant of the premium.
3.   The premium shall also be granted to any producer supplying milk or
milk products whose individual reference quantity as referred to in Article
5c of Regulation (EEC) No 804/68* 0J , minus the quantities suspended
pursuant to Regulation (EEC) No 775/87** 0J , does not exceed
60 000 kilograms.    In such cases, the premium shall be granted for a number
of suckler cows not exceeding 10 per year per holding which are kept for
not less than six successive months in the calendar year for which the
premium is applied for.
The fact of whether cows belong to a suckler herd or to a dairy herd shall
be checked on the basis of the beneficiary's reference quantity and an
average milk yield to be fixed In accordance with the procedure laid down
 in Art icle 27.
 *0J No L 148, 28.06.1968, p. 13
 **0J No L 78, 20.03.1987, p. 5.
                                                                            n
 ---pagebreak--- 4.    The amount of the premium shall be:
- ECU 55 per eligible animal for calendar year 199(3);
- ECU 65 per eligible animal for calendar year 199(4);
- ECU 75 per eligible animal for calendar year 199(5) and thereafter.
Except in duly justified cases, payment must be made not later than 30
April of the year following the calendar year for which the premium is
applied for.
Member States may grant an additional national premium, up to a maximum of
ECU 25 per cow, provided that no discrimination is caused between
stockfarmers in the Member State concerned.
In respect of holdings located in a region as referred to in the Annex of
Regulation (EEC) No 2052/88 (***)    the first ECU 20 per cow of this
additional premium    shall be financed by the Guarantee Section of the
European Agricultural Guidance and Guarantee Fund (EAGGF).
5.    Detailed rules for the application of this Article shall be adopted by
the Commission in accordance with the procedure laid down in Article 27.
 (***)  OJ No L 185, 15.07.1988, p. 9.
                                   Article 4d
 1.   Grant of the premium provided for in Article 4b or Article 4c shall be
 subject to compliance, throughout the calendar year for which the premium
 is applied for, with a stocking density on the holding, expressed in
Livestock Units (LU) per unit of forage area of the holding used for
 feeding the animals carried on it. However, for grant of the premium
provided for in Article 4c, producers shall be exempt from this condition
 if the number of animals to be taken into account for determining the
 stocking density of their holding is not more than 6 LU.
                                                                             e±
 ---pagebreak--- 2.  The stocking density shall be:
- 1.4 LU/ha for holdings or parts of holdings located In a less-favoured
area within the meaning of Article 2(2) of Directive 75/268/EEC;
- 2 LU/ha for holdings or parts of holdings located elsewhere.
3.  The stocking density of a holding shall be determined on the basis of:
- the number of dairy cows, suckler cows, male bovine animals over 6 months
and ewes.  The number of animals shall be converted to LU by reference to
the conversion table In Annex I to Regulation (EEC) No 2328/91;
- the forage area, meaning the area of the holding used throughout the
calendar year for rearing bovine animals and sheep.  The forage area does
not include buildings, woods, ponds, paths or areas used for other products
eligible for Community aid or permanent crops or horticultural crops, or
areas eligible under Regulation (EEC) No .../.. (cereals), or subject to a
national or Community set-aside scheme other than the scheme referred to in
point (a) of the third subparagraph of Article 2(3) of Regulation (EEC) No
2328/91.  Forage area includes areas in shared use as defined in rules to
be adopted in accordance with the procedure laid down in Article 27.
Detailed rules of application shall be adopted by the Commission In
accordance with the procedure laid down In Article 27.
                                                                           tf
 ---pagebreak--- 4.   Bovine animals for which the premium referred to in Article 4b or
Article 4c is granted must be identified by marking in accordance with
Regulation (EEC) No .../... (identification and registration of animals).
Identification data shall be entered in a special register kept by the
producer.
                                   ArtIcle 4e
1.   Operators may qualify for a processing premium In respect of male
dairy-breed calves which are withdrawn from production before exceeding the
age of ten days.
2.   The amount of the premium shall be ECU 100 per calf withdrawn.   Except
 in duly Justified cases, payment must be made within a period not exceeding
four months from the date of submission of the application.                    /
3.    In accordance with the procedure laid down in Article 27 the Commission
shalI :
- adopt detailed rules for applying this Article, and
- amend the amount of the premium or decide to suspend the grant thereof."
3.   The following heading is inserted before Article 5:
 "Section 2 - Intervention".
4.   The following article is added:
                                  "Article 30a
The amounts to be paid pursuant to this Regulation shall be paid in full to
 the beneficiary."
                                    Article 2
                                                                              <Pf
 ---pagebreak--- 1.   Applications for the special premium   lodged in respect of calendar
years (1991 and 1992) shall remain subject to former Article 4a.
Regulation (EEC) No 468/87 is repealed.     It shall remain applicable to
applications lodged not later than (31 December       1992).
2.   Regulation (EEC) No 1357/80 Is repealed.     It shall remain applicable to
applications   lodged not later than (30 June 1 9 9 2 ) .
                                    Article 3
This Regulation shall enter    Into force on 1 January    199(2).
With the exception of Article 4e It shall apply to applications lodged from
1 January   199(3).
This Regulation shall be binding in its entirety and directly applicable in
a I I Member States.
Done at ... ,                                         For the Council
                                                      The President
                                                                               Ç0
 ---pagebreak---                      COUNCIL REGULATION (EEC) No      /..
                                  Of
         fixing, for the period between 1 July 1993 and 30 June 1996
               the intervention prices for adult bovine animals
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 1 ,
Having regard to the opinion of the European Parliament 2 ,
Whereas the beef and veal sector is persistently subject to economic
factors which, given the possibilities for exports to third countries,
cause structural   Imbalance between supply and demand on the Community
market ;
Whereas in order to redress the situation of agriculture in general
measures are being applied, including reductions in institutional prices,
 in the sectors supplying feedingstuffs, especially cereals;   whereas the
effect in the meat sectors is a 10% fall in the average production price-,
Whereas the economic effect of the new conditions of production should be
reflected proportionately in the intervention price;    whereas, given the
constant ratio between the production price for beef and those for pigmeat
and poultrymeat, in order not to disturb competition between these two
sectors the intervention price for beef should be reduced by a further 5%;
                                                                           *y
 ---pagebreak--- Whereas the Intervention price should be adjusted with due regard for the
transitional arrangements applied In the cereals sector;  whereas,
therefore, the adjustment provided for in this Regulation should be
implemented in three stages;
Whereas, during the period of transition, fixing of the intervention price
before the start of each marketing year should be waived,
HAS ADOPTED THIS REGULATION:
                                 Article 1
Notwithstanding the second subparagraph of Article 6(2) of Council
Regulation (EEC) No 805/68 of 27 June 1968 on the common organization of
the market in beef and veal the intervention price for carcases of male
animals in category R3 of the Community scale for the classification of
carcases of adult bovine animals laid down in Regulation (EEC) No 1208/81
sha II be :
- ECU 325.85 per 100 kilograms carcase weight for the period between 1 July
1993 and 30 June 1994;
- ECU 308.70 per 100 kilograms carcase weight for the period between 1 July
1994 and 30 June 1995-,
- ECU 291.55 per 100 kilograms carcase weight for the period between 1 July
 1995 and 30 June 1996;
These prices are subject to subsequent adjustment In line with market
developments.
                                                                            SI
 ---pagebreak---                                  Article 2
This Regulation shall enter Into force on the third day following Its
publication in the Official Journal of the European Communities.
This Regulation shall be binding In Its entirety and directly applicable in
a I I Member States.
Done at ... ,                                   For the Council
                                                The President
                                                                            ?}
 ---pagebreak---  ---pagebreak---                                Proposal for a
                    COUNCIL REGULATION (EEC) No       /..
                                 of
          on measures to promote and market quality beef and veal
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 1 ,
Having regard to the opinion of the European Parliament 2 ,
Whereas the beef and veal market  is affected by a long-term decline in
Community consumption;  whereas, given the imperative need to achieve a
better balance between supply and demand, it has become necessary to reduce
the intervention price under the market organization for beef and veal and
to amend the premium arrangements and Introduce a new premium for the
withdrawal from production of young male calves of dairy breeds;
Whereas specific measures undertaken by trade and inter-trade organizations
to encourage the consumption and marketing of quality beef and veal In the
Community may help to restore a better market balance by stimulating
demand;  whereas such measures should be used to limit the buildup of
1  OJ No L
2  OJ No L
                                                                            ft
 ---pagebreak--- surpluses;   whereas, therefore, it Is appropriate to create the possibility
for the Communfty to part-finance the implementation of such measures;
Whereas measures qualifying for part-financing by the Community should be
def Ined-,
Whereas the purpose of such provisions Is to establish better balance on
the beef and veal market;   whereas any expenditure Incurred as a result of
Community part-financing should be regarded as Intervention within the
meaning of Article 3 of Council Regulation (EEC) No 729/70 of 21 April 1970
on the financing of the common agricultural policy 3 , as last amended by
Regulation (EEC) No 2048/88 4 ,
HAS ADOPTED THIS REGULATION:
                                  Article 1
1.   The Community may part-finance measures undertaken by trade and inter-
trade organizations to promote and market quality beef and veal.    Such
part-financing may not exceed 40% of the actual cost of such measures.
2.   Promotion and marketing measures entailing control of meat quality
throughout the chain of production, from the producer to the consumer, may
be given priority.   In such cases Community part-financing may be increased
to 60% of the actual cost of the measure.
3  OJ No L 94, 28.4.1970, p. 13.
4  0J No L 185, 15.7.1988, p.1.
                                                                             f?
 ---pagebreak---                                    Article 2
Measures and programmes undertaken for promotion and marketing purposes
must not be biased In favour of any trade mark(s) nor confer advantage on
products from a particular Member State.
                                   Article 3
Expenditure incurred as a result of Community part-financing shall be
regarded as Intervention within the meaning of Article 3(1) of Regulation
(EEC) No 729/70.
                                   Article 4
Detailed rules for the application of this Regulation, and in particular
rules defining promotion and marketing measures, shall be adopted by the
Commission   in accordance with the procedure laid down in Article 27 of
Regulation (EEC) No 805/68.
                                   Article 5
This Regulation shall enter into force on (1.1.1993)
This Regulation shall be binding In Its entirety and directly applicable in
a I I Member States.
Done at Brussels,                                         For the Counci
                                                          The President
                                                                            ÛL
 ---pagebreak--- C A P     R E F O R M
   Lega I texts
    Sheepmeat
                      n
 ---pagebreak---                             EXPLANATORY MEMORANDUM
The annexed draft regulation Implements the reform In the sheep sector.
The principal element In the proposal is the Introduction from the 1992
campaign of an Individual producer limit for premium purposes based on the
number of ewes eligible for premium at Member State level In 1990 together
with a reduction In the present upper limit of ewes and or goats eligible for
the premium In both less favoured and non less favoured areas to be achieved
on a phased basis over a three year period beginning In 1992.
Base year for the introduction of the producer limit
As indicated In C0M(91) 258 the base year for the Introduction of the
producer limit is the number of ewes eligible for the premium in each Member
State at the beginning of the 1990 marketing year. However, In order to
avoid possible difficulties, at producer level the basis would be ewes
eligible for the 1991 premium corrected by a coefficient established at
Member State level, expressing the difference between ewes eligible at the
beginning of 1990 and at the beginning of 1991. This formulation has the
advantage that, the more recent use of a corrective factor based on ewes
eligible for the premium at the beginning of the 1990 marketing year
overcomes the problem associated with the fact that applications In different
Member States could be made up to and including 1990 either at the start or
end of the campaign. For Italy and Greece, premla arrangements were
 different to those of the remainder of the Community In the case of Italy up
 to and including the 1990 marketing year and for Greece up to the 1992
marketing year at the latest. Therefore the same basis for relating the
 number of ewes eligible for the 1991 ewe premium to the number eligible in
 1990 does not exist as In other Member States. Thus It will be necessary
 that the Commission fix the coefficient expressing the relationship between
 eligible ewes in these two years following examination of relevant data.
 For the five new Lander of Germany, too, as 1991 Is its first year under
 Community rules for premium purposes, It will be necessary to take a similar
 approach.
 Reduction in upper limits for premium
 At present, producers In LFAs receive the premium at full rate for the first
 1000 eligible ewes and at the reduced rate of 50% for other eligible ewes.
 In non LFAs the figure Is 500 ewes. These levels will be reduced from 1 000
 to 750 in the LFAs and from 500 to 350 outside the LFAs. Over the same three
 year period the premla which at present are paid at a rate of 50% above the
 limits are gradually phased out.
 Link of rioht to premium to land
 At present the right to the premium is linked only to the producer. It has
 no value as any producer who wishes to avail of the premium need only fulfill
 the necessary conditions regarding the keeping of ewes. With the limit, the
 right automatically gains very considerable value. Were producers completely
 free to trade this right, It is possible that certain areas would become
 desertified. In these circumstances, it Is Justifiable to link the
                                                                               Ç?
 ---pagebreak---                                      - 2 -
right to the land to the extend possible.
Transferability of right to premium
It is envisaged that producers be permitted to dispose their limit In one of
two ways :
        Disposal of all the limit and associated land together as for
         instance through sale or Inheritance ;
        Sale of right to the premium to the Member State through the
        provision of a buy up scheme financed by the Member State.
Producers purchasing limits and land together will be required to continue to
exercise the rights acquired on the associated land.
Creation and feeding of a reserve
The establishment of a producer limit will Inevitably throw up a number of
difficult cases. Among these will be producers who had problems (health of
owner, health of flock, late application for'the premium etc) in the base
year together with those In the process of establishing or Increasing flock
size according to a development plan. For these and for newcomers to the
sector a reserve must be established. It is therefore proposed that Member
States constitute a reserve at national level by reducing the limit of each
producer by one percent.
In order to feed the reserve sales of the right to the premium to the Member
State shall automatically fall into it.
It should be noted that provision for a reserve at Community level has not
been made. However the possibility of creating a Community reserve should
Member States not use part of their national reserves has been Included.
Use of the reserve
Besides hard cases etc. the reserve will be orientated essentially towards
newcomers into the system and those purchasing traditional sheep/goat grazing
land to which premium rights are not attached. The reserve will also be used
to favour producers situated in less favoured areas.
                                                                              fcf
 ---pagebreak---                                Draft proposal for a
                        COUNCIL REGULATION (EEC) No    /91
                                 Of           1991
                   amending Regulation (EEC) No 3013/89 on the
           common organization of the market In sheepmeat and goatmeat
                   (presented to the Council by the Commission)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community, and in
particular Article 43 thereof,
Whereas experience indicates that Council Regulation (EEC) No 3013/89 of
25 September 1989 on the common organization of the market In sheepmeat and
goatmeatC), as last amended by Regulation (EEC) No 1741/91, requires certain
amendments;
Whereas it is opportune for administrative purposes that the latest date for the
payment of the premium foreseen in Article 5 of the above mentioned regulation
should coincide with the finish of the budgetary exercise ;
Whereas the continuing upward trend in ewe numbers in the Community and the
resulting substantial drop in prices are having serious repercussions on market
balance and have considerably Increased expenditure charged to the EAGGF;
whereas, far from being adequately curbed by the various measures introduced in
recent years, In particular as regards prices and stabilizers, this trend has
only been accentuated, and has resulted in an increase of approximately 65% in
EAGGF expenditure during the last three years;
(1) OJ No L 289, 7.10.1989, p. 1.
                                                                              {DO
 ---pagebreak---                                        - 2 -
Whereas further, more severe measures should be Introduced; whereas the results
sought may be achieved firstly, by reducing the limits laid down in Article 5(7)
of Regulation (EEC) No 3013/89, secondly, by providing that above those limits
and after a transitional period, no premium will be granted, and, lastly, by
imposing, subject to special provisions applicable to producer groups, an
individual  limit on each producer based on the total premiums granted for the
1991 marketing year to each producer;
Whereas an individual  limit on each producer based on past production could be
particularly disadvantageous to small producers who are unable to expand;
whereas, therefore, In the interests of an equitable balance, the maximum limits
referred to above should be lowered; whereas, on the other hand, the non-payment
of any premium above the said lowered limits would not force holdings with a
production level above the limit to abandon sheepmeat and goatmeat production
since such producers are not totally dependent on the premium to assure
themselves of an equitable living standard by keeping larger herds ;
Whereas, in order to correct the upward trend of production In 1991, this total
should however be multiplied by a coefficient established for each Member State
and representing the ratio between the total number of ewes eligible in 1990 and
that in 1991; whereas, however, special provisions must be adopted for Italy,
Greece and the territory of the former German Democratic Republic in view of the
fact that 1990 was not representative of the true situation of the producers
concerned;
Whereas new producers and existing producers whose reference flocks are not in
 line with the normal trend in ewe numbers must not be excluded from entitlement
to the premium; whereas, to that end, provision should be made for a national
reserve made up initially of a flat-rate levy on the individual   limits of all
producers and financed and administered In accordance with Community criteria;
                                                                                ioA
 ---pagebreak---                                         - 3 -             .. -"•
Whereas changes in production may be made necessary by possible alterations to
the assets or production capacity of recipients ; whereas, therefore, provision
should be made that entitlements to the premium acquired in respect of
individual   limits may be transferred on certain conditions to other producers
or, depending on the circumstances, to Member States, while upholding the
broadest possible link between entitlements and area of land used for sheep
production -,
Whereas it is opportune to establish an Indisoluble link between the land and
the production of sheep and goets so as to ensure the maintalnence of this
production especially in areas where there is no other alternative ;
Whereas the peculiarities of production, characterised by the use of greatly
varying land qualities, make It difficult to Identify the rights to be
transferred where there Is a partial transfer of land between producers ;
whereas it is therefore appropriate, with a view to simplification, to foresee
that the right to the premium may be transferred directly to another producer
only in the case of total transfer of lands devoted to production while also
establishing a priority In the national reserve In favour of producers who have
acquired only a part of these lands ;
Whereas the introduction of the above arrangements, by maintaining flock numbers
at their existing level, should reduce very appreciably the risk of budgetary
overspending; whereas, in these circumstances, the coefficient for reducing the
basic price referred to in Article 8(2) of that Regulation should be fixed at
 the level adopted for the 1990 marketing year,
HAS ADOPTED THIS REGULATION
                                      ArtIcle 1
Regulation (EEC) No 3013/89 is hereby amended as follows
 I.  In Art icle 5
     -  The text of paragraph 2 is replaced by the following text:
                                                                              4 VI
 ---pagebreak---                                       - 4-
   -   Paragraph 7 is hereby deleted.
   -   The text of the fourth subparagraph of paragraph 6 is replaced by the
       fol lowing text :
       "The amount of the final premium shall be determined without delay after
       the end of the marketing year In question and not later than 31 March
       where appropriate.  Before 15 October of the same year any balance, where
       appropriate, shall be paid.
   -   the following articles are Inserted:
                                   "Article 5a
1. An Individual limit per producer Is hereby introduced In respect of the
   grant of the premium provided for In Article 5.
    In the case of producers who have been granted the premium prior to the 1992
   marketing year, the premium shall be paid at the full rate for that
   marketing year and subsequent years within the limit of the number of
   animals for which the premium has been paid for the 1991 marketing year,
   such number being multiplied by the coefficient referred to In paragraph 6,
   provided that that number does not exceed the following maximum limits:
                                Less-favoured areas           Other areas
                                within the meaning of
                                Article 3(3), (4) and
                                 (5) of Directive
                                  75/268/EEC
    1982 market ing year                  920                       450
    1983 marketing year                   830                       400
    1984 marketing year
    and subsequent marketing              750
    years
                                                                               P)
 ---pagebreak---                                        - 5 -
    The limits set out in the above table shall be reduced by the number of ewes
    corresponding to the percentage provided for In Article 5b(1) applied to the
    figures shown in that table.
2.  For animal numbers In excess of the limits referred to In the preceding
    paragraph, the premium shall be paid at the reduced rate of 33 % for the
    1992 marketing year and 17 % for the 1993 marketing year.    For subsequent
    marketing years, no premium shall be paid for animals numbers in excess of
    those Iimits.
3.  Where, as a result of natural circumstances, no premium has been paid for
    the 1991 marketing year, the number of animals corresponding to the payments
    made during the most recent marketing year shall be used.
    Where no premium has been paid for the 1991 marketing year as a result of
    the imposition of penalties provided for to that end, the number recorded
    during the check which gave rise to those penalties shall be used.
4.   In the case of groups, associations or other forms of association between
    producers, the limits and ceilings laid down in paragraph 1 shall be applied
     individually to each associate producer member in accordance with the
    fol lowing rule:
    a) where the group has notified the competent authority of the formula for
        apportioning livestock referred to In Article 2(2) of Regulation (EC) No
        2385/9l(1) in respect of the 1991 marketing year, in accordance with
        Article 4 of that Regulation, those limits shall be fixed for each
        producer member using that formula as a basis-,
    b) where the group has not notified the competent authority of the formula
        for apportionment referred to in (a) In respect of the 1991 marketing
        year, the premium shall be paid to the group In respect of not more than
        the number of animals for which it was granted to the group for the 1991
        marketing year, in accordance with the rules laid down in paragraph 1.
        An Individual  limit shall be fixed for each producer member in respect of
        the 1992 marketing year in accordance with the formula notified by the
        group.
(1) OJ No L 219, 7.08.1991, p. 15
                                                                                <HÂ
 ---pagebreak---                                       - 6 -
   In the event of subsequent changes In the membership of the group, account
   shall be taken, when the premium Is paid to the group, of the Individual
   limit of each producer member who has Joined or left the group.
5. Entitlement to the premium may be:
   a) transferred fully to another producer provided that all the land used for
       sheep and/or goatrearlng are also transferred to that producer and that
       that producer continues to exercise the rights acquired on the
       transferred land;  the transfer may concern the ownership, beneficial
       Interest, lease or any such form of property.  However, the transfer of
       entitlement to the premium by a producer who does not possess such land
       shall take place in accordance with rules to be laid down;
   b) purchased fully or partially using national funds by the Member State in
       which that producer's holding Is situated.  The amount of the purchase
       price shall be determined by the Member State up to a maximum of [100]
       ECU per ewe and [70] ECU per goat;
    In the cases referred to at (a) entitlement to the premium transferred to a
   producer shall be aggregated with that originally granted to him.   However,
   the premium actually granted shall not exceed that corresponding to the
   number of animals shown in the table in paragraph 1, the producer being
   permitted, however, in accordance with provisions to be determined, to
   transfer totally or partially entitlements acquired by Inheritance.
    In the cases referred to at (b), entitlements to the premium acquired by a
   Member State shall be made over to the national reserve provided for In
   Article 5b.
6. For the purpose of applying paragraph 1, Member States shall establish a
   coefficient representing the ratio between:
   a) the total number of eligible animals conferring entitlement to the
       premium present at the beginning of the 1990 marketing year on the
       holdings of beneficiaries, and
                                                                               405
 ---pagebreak---                                       - 7 -
   b) the total number of eligible animals conferring entitlement to the
       premium for the 1991 marketing year.
   In the case of producers in Italy, Greece and the territory of the former
   German Democratic Republic, however, the coefficient shall be estabiIshed by
   the Commission in accordance with the procedure laid down In Article 30.
                                    Article 5b
1. Each Member State shall establish an initial national reserve equal to 1 %
   of the sum of the Individual   limits applicable to producers whose holdings
   are situated in Its territory.
2. Member States shall grant from their national reserves, within the limits of
   the reserves, entitlements to producers:
   a) who have submitted an applIcatIon for a premium prior to the 1992
       marketing year and who have shown to the satisfaction of the competent
       authority that the application of the limits pursuant to Article 5a would
        jeopardize the viability of their holdings, taking Into consideration the
        Implementation of an Investment programme In the sheep and goat sector
       drawn up before the 1992 marketing year.   The premium to be granted to
        the producers referred to above may be granted only within the limits of
       750/350 animals as laid down in Article 5a(1);
   b) who have submitted in respect of the 1991 marketing year an application
        for a premium which, due to exceptional circumstances, does not
       correspond to the true situation as ascertained in previous marketing
       years;
   c) submitting an application for a premium for the first time In the 1992 or
        subsequent marketing years.
    d) producers who have acquired part of an area formerly used for sheep
        and/or goat production by other producers.
3.  Producers situated in less-favoured areas within the meaning of Article
    3(3), (4) and (5) of Directive 75/268/EEC shall qualify for priority
    allocation from the national reserve.
                                                                                40f
 ---pagebreak---                                          - 8 -
4.   The national reserve shall receive:
     -   entitlements acquired pursuant to Article 5a(5)(b) ;
5.   Detailed rules for the application of Article 5a and this Article    shall be
      laid down In accordance with the procedure provided for In Article 30 of
     Regulation (EEC) No 3013/89.
      In accordance with the same procedure :
      -  Measures applicable in cases where the national reserve in a Member State
          is not allocated shall be adopted and
      -  Transitional measures necessary to facilitate the passage between the
         existing regime and that foreseen by this regulation shall be adopted.
6.    The Commission shall present to the Council before 1 July 1996 a report on
      the application of the arrangements laid down in Article 5a and In this
      Article together with, where appropriate, the necessary proposals.
 III.    Article 8(4) is replaced by the following:
         4.   however, from the 1992 marketing year, the coefficient for reducing
         the basic price referred to In paragraph 2 shall be 7 %.
                                       Article 2
This Regulation shall enter into force on the third day following Its
publication in the Official Journal of the European Communities.
 It shall apply with effect from the 1992 marketing year.
This Regulation shall be binding In its entirety and directly applicable In all
Member States.
Done at
                                                    For the CounciI
                                                                                 40h
 ---pagebreak---                                  -2-
                                 Proposal for
                     COUNCIL REGULATION (EEC) No     /..
   amending Regulation (EEC) No 3493/90 laying down general rules for the
grant of premiums to sheepmeat and goatmeat producers
                                                                       fop
 ---pagebreak---                                   -3-
                            Explanatory memorandum
On 27 June 1990 (COM(90)269 final) the Commission presented a proposal to
the Council for a regulation laying down general rules for the grant of the
premium to sheepmeat producers. The proposal came as a natural follow-up
to the Council's adoption of the reform of the sheepmeat regime in 1989
(Regulation (EEC) No 3013/89) and defined the concepts of "producer",
"producer group", "holding", "eligible ewe" and "eligible she-goat".
On the basis of the proposal the Council adopted Regulation (EEC)
No 3493/90 1 . But it failed to rule on the concepts of "eligible ewe" and
"eligible she-goat" because the Commission's proposal had raised
difficulties, particularly as regards checks, which were deemed hard to
resolve.
 In its Regulation, therefore, the Council decided that the existing
definitions of ewes and she-goats (as given in Regulation (EEC) No
874/84 2 ) should remain applicable until the end of 1991 pending a decision
on new definitions. In fact, it undertook to rule on the matter before 31
May 1991.
Progress at Council level was such that the matter could not be dealt with
by the said date. At the time of the adoption of the 1991/92 price
package, therefore, Council and Commission confirmed that the definition of
eligible ewe would be decided in the context of the reform of the sheepmeat
regime which the Commission intended to propose shortly. If the Council
was unable to decide on the proposal for reform of the regime before
 1 October 1991, the existing definition would continue to apply to premiums
payable in respect of 1992.
 1  OJ No L 337, 4.12.1990, p. 7.
 2  OJ No L 90, 1.4.1984, p. 7.
                                                                             40
 ---pagebreak---                                  -4-
ln the context of the reform the Commission now considers it appropriate to
propose a new definition of "eligible ewe" and "eligible she-goat" which
will be easier to check than the present one, as announced in
C0M(91)258 final of 12 July 1991 on the reform of the CAP (pp28-29).
The Commission therefore proposes that eligible ewes should mean females
which have lambed (as under the present definition) and all other females
over the age of one year. So it is no longer necessary to check whether
the said females are obviously in lamb; such checking raised
administrative problems which the Council has been unable to resolve. The
new definition does not automatically rule out cull ewes, experience having
shown that the concept is impossible to check without cumbersome and over-
costly administrative procedures. The fact that all females over one year
are now to be included makes the present definition of "eligible female
other than eligible ewe" superfluous, as such females are normally all aged
over one year.
The consequence of this simplification of the definition of "eligible ewe"
and "eligible she-goat" is that, compared with the present situation, the
number of animals eligible for the premium could increase. But, assuming
 the Council adopts the proposals for limiting guarantees put forward by the
Commission in the context of reform of the CAP, there would be no
consequences in practice because each producer's entitlement to the premium
would be limited to a level calculated on the basis of past references and
 the old definition of eligible ewe and she-goat. The Commission therefore
wishes to establish a formal link between the adoption of this Regulation
and the adoption of the measures proposed in the context of reform of the
CAP.
                                                                           4W
 ---pagebreak---                                   -5-
                                 Proposal for
                     COUNCIL REGULATION (EEC) No       /..
   amending Regulation (EEC) No 3493/90 laying down general rules for the
grant of premiums to sheepmeat and goatmeat producers
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 3013/89 of 25 September 1989
on the common organization of the market in sheepmeat and goatmeat1, as
last amended by Regulation (EEC) No 1741/912, and in particular Article
5(8) thereof,
Having regard to the proposal from the Commission,
Whereas the concepts of "eligible ewe" and "eligible she-goat" as laid down
 in Regulation (EEC) No 872/84 of 31 March 1984 3 , as last amended by
Regulation (EEC) No 1970/874, must be redefined because of the monitoring
difficulties they entail; whereas, given the administrative difficulties
associated with the elaboration of new definitions, Regulation (EEC) No
3493/90 of 27 November 1990 laying down general rules for the grant of
premiums to sheepmeat and goatmeat producers" provides that they will
continue to apply to premiums payable in respect of 1991;
Whereas under the measures decided in the context of Council Regulation
(EEC) No .. of., amending Regulation (EEC) No 3013/896, and in particular
those relating to the fixing of individual limits for grant of the premium,
 it will be possible to resolve the said difficulties by applying relatively
simple definitions for determining, in a readily verifiable manner, the
animals intended for production of sheepmeat;
 1  OJ  No L 289, 7.10.1989, p. 1.
 2  OJ  No L 163, 26.6.1991, p. 41
 3  OJ  No L 90, 1.4.1984, p.40.
 4  0J  No L 184, 3.7.1987, p. 23.
 5  OJ  No L 337, 4.12.1990, p. 7.
6
                                                                             4H
 ---pagebreak---                                 -6-
Whereas in the interests of good administrative management the new
definitions should not be applied until the start of the 1993 marketing
year and the definitions laid down in Regulation (EEC) No 872/84 should
remain applicable for the 1992 marketing year;
Whereas Regulation (EEC) No 3493/90 should therefore be amended,
HAS ADOPTED THIS REGULATION:
                                 Article 1
Regulation (EEC) No 3493/90 is hereby amended as follows:
1. The following points are added to the first paragraph of Article 1:
    "4. 'eligible ewe' means: any female of the ovine species having lambed
   at least once or aged at least one year;
     5. 'eligible she-goat' means: any female of the caprine species having
   kidded at least once or aged at least one year."
2. In Art icle 5:
   -in the first paragraph the words "1991 marketing year" are replaced by
    "1992 marketing year";
   - the second paragraph is deleted.
                                                                            sfiZ-
 ---pagebreak---                                 -7-
                                 Art icle 2
This Regulation shall enter into force on the seventh day following its
publication in the Official Journal of the European Communities.
Point 1 of Article 1 shall apply to premiums paid in respect of the 1993
marketing year and thereafter.
This Regulation shall be binding in its entirety and directly applicable in
a I I Member States.
Done at ... ,                                   For the Council
                                                        The President
                                                                            4tt
 ---pagebreak---                       FINANCIAL IMPLICATIONS OF THE CAP
                      DURING THE 1993-1997 MARKET YEARS
                   FOR CEREALS, OILSEEDS AND PROTEIN CROPS
These financial   implications refer to the proposals for Council
Régulât ions:
- establishing a system of support for producers of certain arable crops;
- on the common organization of the market   in cereals-,
- amending Council Regulation (EEC) No 2727/75 on the common organization of
  the market in cereals
                                                                             MJ<
 ---pagebreak---            THE FINANCIAL IMPLICATIONS OF THE REFORM OF THE MARKETS IN CEREALS. OILSEEDS AND PROTEIN CROPS
                              (Financial implications in relation to the 1992 draft budget)
                                                                                                       ECU m (B)
                                                           19 9 3      19 9 4      19 9 5    19 9 6       19 9 7
"7Û    Expenditure on arable crops
    1. Expenditure on aid per hectare
       -   oil seeds                                       + 3 213     + 2 469     + 2 417   + 2 366      + 2 366
       -   cereals, protein crops                                      + 5 457     + 8 164   + 9 973      + 9 973
                                                                       +     774   +    774  +   774      +   774
       -   compensation for set—aside
                                                           + 3 213     + 8 700     +11 355   +13 113      +13 113
           Expenditure on aid per hectare
    2. Other expenditure
        i Export refunds                                   +    190        1 520   +    978       167          141
        i Production refunds (starch)                      +     42          341   +    294       195     +    110
        i Cost of adjusting private stocks                 +    161          104   +     76         0             0
       v Public storage                                    +     85          671   +    425       192     +      47
       v Co-responsibility levies                                            429   -    246         0             0
                                                           +    478    + 2 207      + 1 527  +    554
                                                                                                          +      16
    3. Total expenditure on olI seeds, cereals and
       protein crops ( 3 - 1 + 2 )                         + 3 691      +10 907     +12 882  +13 667
                                                                                                          +13 129
    4. 1992 Draft budget
       -    oilseeds (except linseed)             3 721
       -    cereals                               6 308
       -    protein crops                           476
            (peas, field beans)
                                                 10 505       3 721     -10 505     -10 505  -10 505      -10 505
    5. Appropriations for 1993, relating to the
        1993/94 marketing year, made available by the
        reform
       - cereaI s                                   482
       - peas, field beans                           95
                                                    577         577
    6. Expenditure on oilseeds, cereals and protein
        crops in relation to 1992 draft budget
                                             Subtotal A     -    607          402   + 2 377   + 3 162      + 2 624
        Knock-on effects in other sectors
        -    10% reduction in institutional prices for
            dairy products and beef
                dai ry products                                   54          365        643      873           893
                beef                                              29    -     203        376      519           519
        -   withdrawal of refunds for products
            processed from cereals
                p igmeot                                                       97        154       193          193
                eggs and poultry                                              129        207      259           259
                non-Annex II (cereals section)                                125        200      250           250
        -    additional expenditure on sheepmeat
             (estimated 10*. reduction in market price)           17           93        205       298
                                              Subtotal B          66     -    826   - 1 375   - 1 796
        Discontinuance of 5—year set—aside
         from 1992/93 (EAGGF Guarantee Section part)                          180        180       180          180
        Withdrawal of aid for dried fodder                          19         19         19        19            19
        Total                                               -    692     -    623        664       770     +    261
                                                                                                               44?
 ---pagebreak---                       FINANCIAL IMPLICATIONS OF THE CAP
                      DURING THE 1993-1997 MARKET YEARS
                                   FOR BEEF
These financial implications refer to the proposals for Council
Régulât ions:
- amending Regulation (EEC) No 805/68 on the common organization of the
  market in beef and veal and repealing Regulation (EEC) No 468/87 laying
  down general rules applying to the special premium for beef producers and
  Regulation (EEC) No 1357/80 introducing a system of premiums for
  maintaining suckler cows;
- fixing, for the period between 1 July 1993 and 30 June 1996 the
  intervention prices for adult bovine animals;
- on measures to promote and market quality beef and veal.
                                                                            44*
 ---pagebreak---                      THE FINANCIAL IMPLICATIONS OF THE REFORM OF THE MARKET IN BEEF AND VEAL
                           (Financial Implications in relation to the 1992 draft budget)
                                                        19 9 3      19 9 4      19 9 5     19 9 6    19 9 7
    -   10% reduction in the institutional price
        as a result of the reduction in the price
        of cereals (1)                                  (-   29)    (-   203)   (-   376)   (- 519)   (- 519)
    -   additional institutional price
        reduction of 5%                                       14    -    101    -    188   -   259   -    259
    -   reduction of 125 000 t in the quantity
        bought in to intervention following the
        introduction of a processing premium
        for young calves                                            -    196    -    254   -   241   -    241
    -   adjustment of the suckler cow premium
        (ECU 75/head for the first 90 cows on
        each holding respecting 1.4 LU/ha of
        forage in less-favoured areas and 2 LU/ha
        of forage in other areas) and extension
        of EAGGF reimbursement of additional
        premium to cover all Objective 1 regions                    +    146    +    240    +  334    +   334
    -    adjustment of the special premium
         (ECU 60/head per year for the first 90
        male bovines on holdings respecting
         1.4 LU/ha of forage in authorized
        areas and 2 LU/ha of forage in other
        areas)                                                       +    165    +    315   +  464    +   464
    -    processing premiums for young calves
         from dai ry herds
         (ECU 100/head, estimate 500 000 calves)              57     +   57            57   +    57   +    57
    -    promotional campaign for beef                         10    +     10          10   +    10   +     10
     Total                                               +    53     + 8 1        + 1 8 0   +   365    +  365
(1)  The impact of this reduction is not included since it has already been taken into account in the figures for
     arable crops as a knock-on effect of the cereals reform.
                                                                                                         44?
 ---pagebreak---                       FINANCIAL IMPLICATIONS OF THE CAP
                      DURING THE 1993-1997 MARKET YEARS
                                FOR SHEEPMEAT
These financial implications refer to the proposals for Council Regulations:
- amending Regulation (EEC) No 3013/89 on the common organization of the
  market in sheepmeat and goatmeat;
- amending Council Regulation (EEC) No 3493/90 laying down general rules for
  the grant of premiums to sheepmeat and goatmeat producers.
                                                                           4/f
 ---pagebreak---               THE FINANCIAL IMPLICATIONS OF THE REFORM OF THE MARKET IN SHEEPMEAT AND GOATMEAT
                        (Financial implications in relation to the 1992 draft budget)
                                                     19 9 3      19 9 4      19 9 5      19 9 6      19 9 7
       limit on premium based on reference
       flock (ewes eligible in 1990)                       70          72         76          79          80
       payment of premium limited to 750 ewes
       in less—favoured areas and 350 ewes in
       other areas                                         49          96    -   134     -   137     -   140
       estimated 10% reduction in the market
       price as a result of the reduction in the
       price of other meat (1)                       (+    17    (+    93)   (+  205)    (+  298)    (+  347)
    Total                                            -    119    -    168    -   210     -   216     -   220
(1) The impact of this reduction is not included since it has already been taken into account in the figures for
    arable crops as a knock-on effect of the cereals reform.
                                                                                                       44\
 ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                      BSN 0254-1475
                                                              COM(91) 379 final
                                                      DOCUMENTS
EN                                                                             03
                                Catalogue number : CB-CO-91-446-EN-C
                                                             ISBN 92-77-76563-1
Office far Official Publications of the European Communities
L-2985 Luxembourg
 ---documentbreak---       COMMISSION OF THE EUROPEAN COMMUNITIES
                                           COM(91) 379 final/2
CORRIGENDUM
à la fiche financière
                                           Brussels, 5 November 1991
du document COM(91) 379 final
du 18 octobre 1991
CONCERNE TOUTES LES VERSIONS LINGUISTIQUES
                    REFORM OF THE COMMON AGRICULTURAL POLICY
                Legal  texts  (Arable   Crops,  Sheepmeat,     Beefmeat)
                              (presented by the Commission)
 ---pagebreak---                       FINANCIAL IMPLICATIONS OF THE CAP
                      DURING THE 1993-1997 MARKET YEARS
                   FOR CEREALS, OILSEEDS AND PROTEIN CROPS
These financial implications refer to the proposals for Council
Regulations:
- establishing a system of support for producers of certain arable crops;
- on the common organization of the market in cereals;
- amending Council Regulation (EEC) No 2727/75 on the common organization of
  the market in cereals
 ---pagebreak---             THE FINANCIAL IMPLICATIONS OF THE REFORM OF THE tMRKETS IN CEREALS, OILSEEDS AND PROTEIN CROPS
                                    ( F i n a n c i a l i m p l i c a t i o n s i n r e l a t i o n t o the 1992 draft budget)
                                                                                                                                       ECU m (8)
                                                                                        19 9 3            19 9 4      19 9 5   1 9 S 6    19 9 7
~A.      Expend I tunTon"c7aDTe~c~rops
    1 . Expenditure on a i d per hectare
         -   oilseeds                                                                  + 3 213            + 2 263     + 2 194  + 2 114    + 2 114
         -   cereals, protein crops                                                                       + 5 587     + 8 343  +10 185    +10 185
                                                                                                          +    768    +   768  +   768    +   768
         -   compensation for set-aside
                                                                                       + 3 213            + 8 618     +11 305  +13 113    +13 067
            Expenditure on aid p e r hectare
    2 . Other expenditure
                                                                                       +         194      + 1 554     +   984      131    -   153
          i Export refunds                                                             +          42      +    341    +   294      195    +   110
        ii  Production refunds (starch)                                                +         161      +    104    +    76        0          0
       iii  Cost of adjusting p r i v a t e stocks                                     +          85      +    678    +   444      204    +    45
        iv  Pubt ic storage                                                                               -    435    -   183       43          0
         v  Co-responsibility levies
                                                                                       +         482      + 2 244     + 1 615      573    +     2
    3. Total expenditure on o i l s e e d s , cereals and
         protein crops ( 3 - 1 + 2 )                                                   + 3 695            +10 862     +12 920  +13 640    +13 069
    4. 1992 Draft budget
         -   oilseeds (except linseed)                                   3 721
         -   cereals                                                     6 308
         -  protein crops                                                   476
            (peas, field beans)
                                                                      10 505           - 3 721             -10 505    -10 505  -10 505    -10 505
    5. Appropriations for 1993, relating to the
         1993/94 marketing year, made available by the
         reform
         - cereals                                                           482
         - peas, field beans                                                  95
                                                                            577        -         577
         Expenditure on oilseeds, cereals and protein
         crops in relation to 1992 draft budget
                                                            Subtotal A                 -         603           357    + 2 415  + 3 135    + 2 564
  B.     Knock-on effects in other sectors
         -   1 0 % reduction in institutional prices for
            dairy p r o d u c t s and beef
                 dai ry products                                                                  54      -    365    -   643  -   873    -   893
                 beef                                                                             29      -    203    -   376  -  519     -  519
         -  withdrawal of refunds for products
            processed from cereals
                 pigmeat                                                                                        97        154  -   193    -   193
                 eggs and pouftry                                                                         -    129    -   207  -  259     -  259
                 non-Annex II (cereals section)                                                           -    125    -   200  -   250    -   250
         -  additional expenditure on sheepmeat
            (estimated 1 0 % reduction in market p r i c e )                           +          17            93        205      298        347
                                                               Subtotal B                         $6      -    826    - 1 375  - 1 796    - 1 767
 C.      Discontinuance of 5-yeor set—aside
         from 1992/93 (EAGGF Guorontee Section part)                                                           180    -   180  -   180        180
 D       Withdrawal of aid for dried fodder                                                        19           19    -   158  -   416    -   416
         Total                                                                         -         688      -    668        702  +   743        201
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                             COM(91) 379/2 final
                                                      DOCUMENTS
EN                                                                              03
                                 Catalogue number : CB-CO-91-490-EN-C
                                                             ISBN 92-77-77202-6
Office for Official Publications of the European Communities
L-2985 Luxembourg