CELEX: 31967R0359
Language: en
Date: 1967-07-25 00:00:00
Title: Regulation No 359/67/EEC of the Council of 25 July 1967 on the common organisation of the market in rice

Official Journal of the European Communities                                        193
 31.7.67                     OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES                                        No 174/ 1
                                REGULATION No 359/67/EEC OF THE COUNCIL
                                                   of 25 July 1967
                                  on the common organisation of the market in rice
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                      transitional period; whereas the connection between
                                                               the markets in cereals and rice in certain aspects of
Having regard to the Treaty establishing the                   production and utilisation makes it opportune that,
European Economic Community, and in particular                 the introduction of a single price system for cereals
Articles 42 and 43 thereof;                                    within the Community from the 1967/68 marketing
                                                             ■ year should be followed by the establishment of a
Having regard to the proposal from the Commission :            single price system for rice for the same marketing
                                                               year ;
Having regard to the Opinion of the European
Parliament1 ;                                                  Whereas, owing to the price mechanisms brought
                                                               into being by Regulation No 16/64/EEC, the creation
Whereas the operation and development of the                   of a single market in rice for the whole Community
common market in agricultural products must be                 does not depend solely on the removal of all
accompanied by the establishment of a common                   obstacles to the free movement of goods within the
agricultural policy to include in particular a common          Community and on the establishment of identical
organisation of agricultural markets which may take            protection at its external frontiers, but also on the
various forms depending on the product;                        adoption of a system comprising : a target price for
                                                               husked rice valid for the whole Community ; a single
Whereas Regulation No 16/641EEC2 provided that                 threshold price for husked rice, a single threshold
the common organisation of the market in rice                  price for milled rice and a single threshold price for
should be established progressively from 1964 ;                broken rice, such prices to be fixed in such a way
whereas the main features of the market organisation           that, on the market of the marketing centre of the
thus established are, for producer Member States, the          area with the greatest deficit in the Community, the
annual fixing of target prices, published before the           selling price of the imported product is equal to the
winter sowing so as to allow producers to make their           target price; related levies in respect of third countries,
crop plans, and the fixing, on the basis of the target         which are the same for the whole Community ; and
price, of an intervention price at which the                   intervention prices fixed on the basis of target prices ;
competent agencies are obliged to buy in the paddy             whereas, therefore, the necessary adjustments should
rice which is offered to them, and of a threshold price        be made to the system provided in Regulation No
to which the price of imported products must be                16/64/EEC ;
equated by means of a variable levy; whereas for
non-producer Member States its main feature is the             Whereas the aim of the common agricultural policy is
annual fixing of a common threshold price to be                to attain the objectives set out in Article 39 of the
determined for the first year on the basis of the price        Treaty; whereas in the rice sector, in order to
recorded on the world market and to which the price            stabilise markets and to ensure a fair standard of
of the imported products must be equated by means              living for the agricultural community concerned,
of a variable levy;                                            intervention agencies should continue to take by
Whereas a progressive approximation of target prices           intervention measures on the market, such measures
and a progressive approximation of threshold prices            however to be standardised so as not to impede the
were provided for in Article 20 ( 1 ) of Regulation No         free movement of rice within the Community;
16/64/EEC so that a single target price and a single
threshold price might be attained by the end of the            Whereas free movement within the Community
                                                               should enable surpluses in production areas to be
                                                               offset against requirements in deficit areas ; whereas,
1 OJ No 156, 15.7.1967, p. 32.                                 so as not to impede such offsetting, intervention
2 OJ No 34, 27.2.1964, p. 574/64.                              prices should be fixed in such a way that the
 ---pagebreak--- 194                                Official Journal of the European Communities
differences between them reflect the disparities which,       question; whereas, moreover, as regards semi-milled
given a normal harvest, arise under natural                   and milled rice and the products processed from rice
conditions of price formation on the market, and that         which are covered by this Regulation, account should
the forces of supply and demand may have free play ;          be taken, when calculating the levy, of the need to
                                                              ensure a measure of protection for the Community
Whereas the smooth adjustment of the market to the            processing industry ;
regionalisation of prices requires intervention
agencies to be able, in special circumstances, to take        Whereas, in addition to the system described above,
intervention measures suited to those circumstances ;         and to the extent necessary for its proper working,
whereas, however, so that the required uniformity of          provision should be made for regulating or, when the
intervention systems may be maintained, those special         situation on the market so requires, prohibiting the
circumstances should be assessed and the appropriate          use of 'inward processing arrangements'; whereas,
measures determined at Community level ;                      moreover, the refund should be fixed in such a way
                                                              that     operations     under    inward     processing
Whereas the target price, intervention prices and             arrangements do not lead the Community processing
threshold prices should, in the course of the                 industry to use, with a view to export, basic products
marketing year, be subject to a certain number of «           imported from third countries in preference to
monthly increases in order to take account, among             Community basic products; whereas the creation of a
other things, of storage costs and interest charges for       single market in rice necessitates Community control
storing rice in the Community and of the need to              of the inward processing trade ;
ensure that the disposal of stocks conforms to market
requirements ;                                                Whereas the competent authorities must be in a
                                                              position constantly to follow trade movements in
                                                              order to assess market trends and to apply the
Whereas, because of the special situation of the              measures laid down in this Regulation as necessary ;
market in starches and, in particular, the need for           whereas, to that end, provision should be made for
that industry to keep prices competitive with those           the issue of import and export licences accompanied
for substitute products, it is necessary to ensure by
                                                              by the lodging of a deposit guaranteeing that the
means of a production refund, that the broken rice
                                                              transactions for which such licences are requested are
used by the industry is made available to it at a             effected ;
lower price than the one which would result from
applying the system of levies and common prices ;             Whereas the levy system makes it possible to dispense
whereas because of the special situation of the market
                                                              with all other protective measures at the external
in quellmehl it is necessary to provide for similar           frontiers of the Community ; whereas, however,' the
measures for broken rice used in manufacturing that           common price and levy machinery may in
product;
                                                              exceptional circumstances prove defective; whereas,
                                                              in such cases, so as not to leave the Community
Whereas the creation of a single Community market             market without defence against disturbances which
for rice involves, apart from a single price system , the     may arise therefrom after the import barriers which
introduction of a single trading system at the external       existed previously have been ' removed, the
frontiers of the Community ; whereas a trading                Community should be enabled to take all necessary
system including levies and export refunds, combined          measures without delay ;
with intervention measures, also serves to stabilise
the Community market, in particular by preventing             Whereas the establishment of a single market in rice
price fluctuations on the world market from affecting         involves the removal at the internal frontiers of the
prices ruling within the Community ; whereas,                 Community of all obstacles to the free movement of
therefore, provision should be made for charging a            the goods in question ;
levy on imports from third countries and for the
payment of a refund on exports to these countries,            Whereas the establishment of a single market based
both being designed to cover the difference between           on a common price system would be jeopardised by
prices ruling outside and within the Community ;              the granting of certain aids ; whereas, therefore, the
                                                              provisions of the Treaty which allow the assessment
Whereas the calculation . of that levy and of that            of aids granted by Member States and the prohibition
refund can be made on the basis of the- respective            of those which are incompatible with the common
prices of the most representative products in the rice        market should be made to apply to rice ;
sector, namely husked rice, milled rice and broken
rice; whereas the calculation of the levy and the             Whereas the transition from the system provided in
refund applicable to rice offered at other stages of          Regulation No 16/64/EEC to that established by this
processing can be made on the basis of the levy and           Regulation should be effected as smoothly as
the refund applicable to whichever of those three             possible; whereas, to that end, certain transitional
products is nearest to the stage of the rice in               measures may prove necessary ;
 ---pagebreak---                                        Official Journal of the European Communities                                  195
Whereas the common organisation of the market in                  4. The price mentioned in this Article and -the
rice must take appropriate account, at the same time,             standard quality for which it is fixed shall be
of the objectives set out in Articles 39 and 110 of the           determined in accordance with the procedure laid
Treaty ;                                                          down in Article 43 (2) of the Treaty.
"Whereas, in order to facilitate implementation of the
proposed measures, a procedure should be provided                                         Article 3
for establishing close co-operation between Member
States and the Commission within the Management                   The marketing year for all the products listed in
Committee for Cereals ;                                           Article 1 shall begin on 1 September and end on 31
                                                                  August of the following year.
HAS ADOPTED THIS REGULATION :
                                                                                          Article 4
                          Article 1
                                                                  1.    In order to guarantee to producers that the
 1.     The common organisation of the market in rice             market price does not fall below a minimum level,
 shall comprise a price and trading system and cover              intervention prices for paddy rice shall be fixed for
the following products :                                          the Community.
          CCT
         heading                 Description of goods             2.    These prices shall be fixed for round-grained
           No
                                                                  paddy rice of a standard quality determined on the
                                                                  basis of the variety chosen for determining the
 ( a) ex 10.06 A         Rice in the husk (paddy or rough
                         rice)                                    standard quality for which the target price for husked
                                                                  rice is fixed, at the same stage and under the same
      ex 10.06 A         Husked rice (cargo or brown rice)        conditions .
         10.06 B         Milled rice, whether or not pol­
                         ished or glazed                          3.    Intervention prices for Aries and Vercelli shall
                                                                  be determined as follows :
 (b )    10.06 C         Broken rice
                                                                  — by calculating the derived target price for husked
 (c)     11.01 D         Rice flour                                   rice for Aries and Vercelli, respectively;
      ex 11.02 A III (b) Rice groats and meal, rolled or          — by converting that price into a price for paddy
                         flaked rice                                  rice on the basis of the conversion rates,
         11.08 AIII      Rice starch                                  manufacturing costs and the value of
                                                                      by-products ;
                                                                  — by reducing the result thus obtained by 4% .
 2 . For purposes of this Regulation, paddy rice,
 husked rice, semi-milled rice, milled rice,
 round-grained rice and broken rice are the products              The price derivation mentioned in the first indent
 defined in Annex A.                                              above shall be calculated in such a way that the
                                                                  differences between the intervention prices as also
                                                                  between them and the target price correspond to the
                                                                  price disparities to be expected in a normal harvest
                          TITLE I
                                                                  under natural conditions of price formation on the
                                                                  market and allow the free movement of rice within
                            Prices                                the Community in accordance with the requirements
                                                                  of the market .
                          Article 2
                                                                  For other large marketing centres in areas of surplus
  1 . Before 1 August of each year, a target price for            production within the Community, the following
 husked rice shall be fixed for the Community for the             prices shall apply :
 marketing year beginning during the following
 calendar year.                                                   — the intervention price for Aries to centres in
                                                                      France ;
 2. This price shall be fixed for round-grained rice              — the intervention price for Vercelli to centres in
  of a standard quality.
                                                                      Italy.
 3 . This price shall be fixed for Duisburg at the
 wholesale stage, goods in bulk, delivered to                     4.     The Council, acting in accordance with the
  warehouse, not unloaded.                                        voting procedure laid down in Article 43 (2) of the
 ---pagebreak--- 196                                 Official Journal of the European Communities
Treaty on a proposal from the Commission , shall fix           5 . Detailed rules for the application of this Article
the intervention prices for Aries and Vercelli each            shall be adopted in accordance with the procedure
year, before 1 May, for the following rice marketing           laid down in Article 26, in particular as regards :
year .
                                                               — the minimum quality and quantity required for
                                                                   intervention ;
5.     Rules for the determination of large marketing
centres for areas of surplus production other than             — the corrective amounts applicable to intervention ;
Aries and Vercelli, and the standard quality to which
the intervention prices relate, shall be adopted in            — the price increases and reductions applicable to
accordance with the procedure referred to in                       intervention ;
paragraph 4.                                                   — the procedures and conditions for taking over by
                                                                   the intervention agencies ;
6. The marketing centres mentioned in the third
subparagraph of paragraph 3 shall, after consultation          — the procedures and conditions for disposal by
with the Member States concerned, be determined                    intervention agencies.
before 1 July of each year for the following
marketing year, in accordance with the procedure                                      Article 6
laid down in Article 26 .
                                                               The Council, acting in accordance with the voting
                                                               procedure laid down in Article 43 (2) of the Treaty
                         Article 5                             on a proposal from the Commission, shall determine
                                                               the conditions under which intervention agencies may
1 . Throughout the marketing year the intervention             take special intervention measures to prevent, in
agencies designated by Member States shall be                  certain areas of the Community, substantial buying in
obliged to buy in paddy rice harvested in the                  of paddy rice in pursuance of Article 5 ( 1 ).
Community which is offered to them, provided the
offers comply with conditions, in particular in respect        The nature and scope of such intervention measures
of quality and quantity, to be determined in                   shall be determined in accordance with the procedure
accordance with paragraph 5 .                                  laid down in Article 26 .
2.     The intervention agencies shall buy in at the           Before the expiry of the first year of application of
intervention price ruling for the marketing centre at          this Regulation the Commission shall submit to the
which the paddy rice is offered, under conditions to           Council a report on the results obtained from
be determined in accordance with paragraphs 4 and 5 .          application of the measures laid down in this Article
                                                               and on the advisability of amending or repealing
                                                               them .
If the quality of the paddy rice offered is different
from the standard quality for which the intervention
price has been fixed , the intervention price shall be                                Article 7
adjusted by applying :
                                                               1 . The target price and the intervention prices
— corrective amounts representing the differences in           shall be subject to monthly increases, phased over the
    value between the variety which corresponds to             whole or part of the marketing year.
    the standard quality and the other varieties ; and
— price increases or reductions representing                   2. The Council, acting in accordance with the
    variations in quality not attributable to the variety      voting procedure laid down in Article 43 (2) of the
    classification of the product.                             Treaty on, a proposal from the Commission, shall
                                                               before 1 May each year determine for the following
                                                               marketing year the number and the amount of the
3.     Under conditions to be laid down in accordance          monthly increases and their phasing over the
with paragraphs 4 and 5 , intervention agencies shall          marketing year.
offer for sale, for export to third countries or for
supply to the internal market, paddy rice bought in
pursuant to paragraph 1 .                                                             Article 8
4. The Council, acting in accordance with the                  1.    A carry-over payment may be granted in respect
voting procedure laid down in Article 43 (2) of the            of stocks remaining at the end of the marketing year
Treaty on a proposal from the Commission, shall                of paddy rice harvested in the Community and of
adopt general rules governing intervention .                   husked rice obtained from that rice .
 ---pagebreak---                                      Official Journal of the European Communities                                     197
 Before 1 July of each year, the Council, acting in              From a date to be fixed by the Council, acting in
 accordance with the voting procedure laid down in               accordance with the voting procedure laid down in
 Article 43 (2) of the Treaty on a proposal from the             Article 43 (2) of the Treaty on a proposal from the
 Commission, shall decide whether a carry-over                   Commission, and from 1 September 1969 at the
 payment should be granted in respect of the                     latest, such licences shall be valid for transactions
 above-mentioned products and, if so, to what extent.           effected in the Community. Until that date such
                                                                licences shall be valid only for transactions effected in
 2.     The carry-over payment shall not exceed :               the Member State which issued them .
                                                                 The issue of such licences shall be conditional on the
 ( a) for husked rice, the difference between the target
      price valid for the last month of the marketing           lodging of a deposit guaranteeing that importation or
      year and that valid for the first month of the next       exportation is effected during the period of validity
      marketing year;                                           of the licence ; the deposit shall be forfeited in whole
                                                                or in part if the transaction is not effected, or is only
 (b) for paddy rice, that difference adjusted by the            partially effected, within that period.
      conversion rate .
                                                                2. The period of validity of licences and other
 3 . The carry-over payment shall be granted only if            detailed rules for the application of this Article shall
 stocks reach a minimum quantity.                               be adopted in accordance with the procedure laid
                                                                down in Article 26.
4. The amount of the carry-over payment shall be
 fixed in accordance with the procedure referred to in                                   Article 11
paragraph 1 .
                                                                1 . A levy equal for each product to the threshold
5 . Detailed rules for the application of this Article,         price less the c.i.f. price shall be charged on imports
in particular the minimum quantity qualifying for a             of husked rice, milled rice or broken rice.
carry-over payment and the categories of those
entitled to it shall be adopted in accordance with the          2. A levy equal to the levy applicable to husked
procedure laid down in Article 26.                              rice, adjusted by the conversion rate, shall be charged
                                                                on imports of paddy rice.
                         Article 9
                                                                3 . A levy equal to the levy applicable to
 1.    A production refund shall be granted for                 round-grained milled rice, adjusted by the conversion
 broken rice which has been used :                              rate, shall be charged on imports of long-grained
                                                                milled rice. This adjustment shall be made by
 ( a) by the starch industry for the manufacture of             dividing this - levy by the rate applicable when
      starch and quellmehl as defined in Annex A ;              long-grained husked rice is converted into
                                                                long-grained milled rice and by multiplying it by the
 ( b) by the brewing industry.                                 rate applicable when round-grained husked rice is
                                                                converted into round-grained milled rice.
2.     The Council, acting in accordance with the
voting procedure laid down in Article 43 (2) of the            4. A levy equal to the levy applicable to milled
Treaty on a proposal from the Commission, shall                rice, adjusted by the conversion rate, shall be charged
adopt rules for the application of this Article and fix        on imports of semi-milled rice.
the amount of the production refund.
                                                               5.     The Commission shall fix the levies mentioned
                                                               in this Article.
                         TITLE II
                Trade with third countries                                              Article 12
                        Article 10                             1 . A levy shall be charged on the importation of
                                                               products listed in Article 1 ( 1 ) (c), consisting of two
                                                               components :
1 . Imports into the Community or exports
therefrom of any of the products listed in Article 1           ( a) a variable component, which may be fixed and
shall be subject to the submission of an import or                   revised   on    a   flat  rate  basis  and    which
export licence which may be issued by Member                         corresponds to the incidence on the prime cost of
States to any applicant irrespective of the place of his             such products of the levy on the basic product
establishment in the Community.                                      used in their manufacture :
 ---pagebreak---  198                                 Official Journal of the European Communities
 (b) a fixed component designed to protect the                  2.       The threshold price for husked rice shall be
     processing industry.                                       fixed in such a way that on the Duisburg market the
                                                                selling price for the imported product corresponds to
2.     Where actual offers from third countries of              the target price, after allowance for differences in
products listed in Article 1 ( 1 ) (c) do not correspond        quality. The threshold price shall be subject to the
to the price which results from the price of the basic          monthly increases determined for the target price in
product used in their manufacture, plus processing              accordance with the provisions of Article 7.
 costs, an amount fixed in accordance with the
procedure laid down in Article 26 may be added to               It shall be calculated for Rotterdam for the same
the levy fixed in accordance with paragraph 1 .                 standard quality as the target price for husked rice.
3 . The Council, acting in accordance with the                  3 . The threshold price for milled rice shall be
voting procedure laid down in Article 43 (2) of the             derived from the threshold price for husked rice by
Treaty on a proposal from the Commission , shall                making adjustments for the conversion rate, for
 adopt rules for the application of this Article .              processing costs and for the value of by-products and
                                                                then by adding an amount for the protection of the
4. The Commission shall fix the levies specified in             industry.
paragraph 1 .
                                                                It shall be calculated for Rotterdam for the same
                                                                standard quality as the threshold price for husked
                        Article 13                              rice .
1 . The levy to be charged shall be that applicable             4.      The Council, acting in accordance with the
on the day of importation.                                      voting procedure laid down in Article 43 (2) of the
                                                                Treaty on a proposal from the Commission, shall fix
2.     However, as regards imports of rice and broken           the threshold price for husked rice and the protective
rice, the levy applicable on the day on which                   amount mentioned in paragraph 3 .
application for a licence is made, adjusted for the
threshold price which will be in force during the
                                                                5.      The threshold price for milled rice shall be fixed
expected month of importation, shall be applied to an
                                                                in accordance with the procedure laid down in
import to be effected during the period of validity of         Article 26 .
the licence, if the applicant so requests when applying
for the licence. A premium, fixed at the same time as
the levy, shall      be   added to       the levy, where                                  Article IS
appropriate.
3 . A decision may be taken in accordance with the              1 . A threshold price for broken rice shall be fixed
                                                                for the Community each year, before 1 May, for the
procedure laid down in Article 26 to apply the
provisions of paragraph 2, in whole or in part, to any          following marketing year.
of the products listed in Article 1 ( 1 ) (c).
                                                                2.      This price shall be fixed within :
4.    The Council, acting in accordance with the                ( a) an upper limit constituted by the threshold price
voting procedure laid down in Article 43 (2) of the                    for husked rice valid for the same marketing
Treaty on a proposal from the Commission , shall                       year :
adopt rules for the application of paragraph 2,
including rules for fixing premiums, and measures to                   — plus half the amount of the monthly increases
be taken in exceptional circumstances or where                             of that threshold price ; and
importation is not effected within the month laid
down .                                                                 — minus the percentage by which the average
                                                                           c.i.f. price for broken rice determined for
5.    The scale of premiums shall be adopted by the                        Rotterdam from 1 September 1964 to 31
Commission .                                                               August 1966 was lower than the average of
                                                                           the most favourable offers for husked rice
                                                                           determined for Rotterdam for the same
                        Article 14
                                                                           period ;
1 . There shall be fixed for the Community each
year, before 1 May, for the following marketing year :          ( b) a lower limit constituted by the threshold price
                                                                       for maize valid for the same marketing year :
— a threshold price for husked rice ;
                                                                       — plus half the amount of the monthly increases
— a threshold price for milled rice.                                       of that threshold price ; and
 ---pagebreak---                                        Official Journal of the European Communities                                      199
       — plus the percentage by which the average c.i.f.                 quality for which the threshold price for husked
            price for broken rice determined for                         rice was fixed, those differences themselves to be
            Rotterdam from 1 September 1964 to 31                        adjusted in line with the rate applicable on
            August 1966 was higher than the average c.i.f.               conversion of round-grained husked rice to
            price for maize determined for Rotterdam for                 round-grained milled rice;
            the same period and adjusted for bagged
            maize.                                                 (b) long-grained milled rice, adjusted, in order to
                                                                         obtain the price of round-grained milled rice, for :
  3.     If quotations on the world market for husked
  rice, maize and broken rice show, over a period of at                  — the conversion rate, the processing costs and
  least six months, considerable variations from the                         the value of by-products applicable on
  average quotations recorded during the period                              conversion of long-grained milled rice into
  mentioned in paragraph 2, a different reference                            long-grained husked rice ;
 period shall be fixed for determining the threshold
                                                                        — differences in quality compared with the
 price for the following marketing year.
                                                                             standard" quality for which the threshold price
                                                                             for husked rice was fixed ;
 4.     The threshold price for broken rice shall be
 calculated for Rotterdam and for a standard quality.                   — the conversion rate, the processing costs and
                                                                             the value of by-products applicable on
 5.     The Council, acting in accordance with the                           conversion of round-grained husked rice into
 voting procedure laid down in Article 43 (2) of the                         round-grained milled rice ;
 Treaty on a proposal from the Commission, shall fix :
                                                                  (c) if need be, semi-milled rice, adjusted for the
 ( a) the threshold price for broken rice and the                       conversion rate, for processing costs, for the
       standard quality for which it shall be fixed ;                   value of by-products and for any differences in
 (b) if need be, the reference period mentioned in                      quality compared with the standard quality for
      paragraph 3 .                                                     which the threshold price of husked rice was
                                                                        fixed, those differences themselves to be adjusted
                                                                        in line with the rate applicable on conversion of
                          Article 16                                    husked rice into milled rice .
 1.     There shall be. calculated for Rotterdam :
                                                                  4. Differences in quality shall be expressed by
— a c.i.f. price for husked rice;                                 means of corrective amounts representing the
                                                                  difference in value between the variety which
— a c.i.f. price for milled rice;
                                                                  corresponds to the standard quality for which the
— a c.i.f. price for broken rice.                                 threshold price was fixed and the other varieties.
These c.i.f. prices shall be calculated for goods in             5 . Where free quotations on the world market are
bulk on the basis of the most favourable purchasing               not a determining factor for the offer price and where
opportunities on the world market determined in                  that price is lower than those quotations, a special
accordance with paragraphs 2 and 3 .                              c.i.f. price calculated on the basis of the offer price
                                                                 shall be substituted, solely in respect of the imports
2.      The c.i.f. price for husked rice shall be                in question for the c.i.f. price.
calculated on the basis of the quotations or prices on
the world market for :                                           6. Detailed rules for the application of this Article,
                                                                 in particular the corrective amounts, the method of
 (a) husked rice, adjusted for any differences in                calculating c.i.f. prices and the margin within which
      quality compared with the standard quality;                variations in the factors used for calculating the levy
(b) if need be, paddy rice, adjusted for the                     do not entail any alteration of the levy, shall be
      conversion rate, for processing costs, for the             adopted in accordance with the procedure laid down
      value of by-products and for any differences in            in Article 26.
      quality compared with the standard quality.
                                                                                           Article 17
3.      The c.i.f. prices for milled rice shall be
calculated on the basis of recorded quotations or
prices on the world market for :                                 1.      To the extent necessary to enable the products
                                                                 listed in Article 1 to be exported in the state referred
( a) round-grained milled rice, adjusted for any                 to therein or in the form of goods listed in Annex B
      differences in quality compared with the standard          on the basis of quotations or prices for those
 ---pagebreak--- 200                                   Official Journal of the European Communities
products on the world market, the difference between             on a proposal from the Commission, may prohibit in
those quotations or prices and prices in the                     whole or in part the use of inward processing
Community may be covered by an export refund.                    arrangements :
2.     The refund shall be the same for the whole                — in respect of products listed in Article 1 which are
Community. It may be varied according to use or                       intended for the manufacture of products listed in
destination .                                                          Article 1 ( 1 ) (c);
The refund shall be granted on application.                      — and, in special cases, in respect of products listed
                                                                      in     Article    1   which     are  intended   for   the
When the refund is being fixed particular account                      manufacture of goods listed in Annex B.
shall be taken of the need to establish a balance
between the use of Community basic products in the               2. Community provisions to regulate the inward
manufacture of processed goods for export to third               processing trade in the products listed in Article 1
countries and the use of third country products                  shall be adopted not later than 1 July 1968 .
brought in under inward processing arrangements.
Refunds shall be fixed at regular intervals in                   3 . Rules to be applied until the provisions
accordance with the procedure laid down in Article               mentioned in paragraph 2 enter into jforce shall be
26. Where necessary the Commission may, at the                   adopted in accordance with the procedure referred to
request of a Member State or on its own initiative,              in paragraph 1 ; they shall apply in respect of:
alter the refunds in the intervening period.
                                                                 ( a) the rate of yield to be taken when determining
3 . The amount of the refund applicable to the                         the quantity of Article 1 products used in the
export of products listed in Article 1 and of goods                    manufacture of processed goods for export;
listed in Annex B shall be that applicable on the day            (b) the determination, for the purpose of applying
of exportation .                                                       the levy, of the quantity of products used in the
                                                                       manufacture of processed goods put into free
4. However, as regards exports of products listed                      circulation .
in Article 1 (1 ) (a) and (b), the refund applicable on
the day on which application for a licence is made,
adjusted for the threshold price which will be in force          4. For the purposes of this Article 'inward
during the month of exportation, shall be applied to             processing arrangements' means all those provisions
an export to be effected during the period of validity           determining the conditions under which products
of the licence, if the applicant so requests when                from third countries are used in the Community in
applying for the licence. In this case a corrective              the manufacture of goods for export and enjoy
amount fixed by the Commission shall be applied to               exemption from the levies applicable to them.
the refund.
The provisions of the preceding subparagraph may                                             Article 19
be applied in whole or in part to any of the products
listed in Article 1 ( 1 ) (c) and in Annex B.
                                                                 The procedure laid down in Article 26 shall apply for
                                                                 determining :
5 . The Council, acting in accordance with the
voting procedure laid down in Article 43 (2) of the               ( a) the conversion rates between
Treaty on a proposal from the Commission, shall
 adopt general rules for granting export refunds and                   — husked rice and paddy rice used when
 criteria for fixing the amount of such refunds.                             applying Article 4 (3 ), Article 8 (2) (b), Article
                                                                             11 (2) and Article 16 (2) (b);
6. Detailed rules for the application of this Article                   — husked        rice  and milled      rice used   when
shall be adopted in accordance with the procedure                            applying Article 11 (3 ), Article 14 (3 ) and
 laid down in Article 26.                                                    Article 16 (3 ) ( a), (b) and (c);
                                                                        — milled rice and semi-milled rice, to be used
                           Article 18                                        in consideration when applying Article 11 (4)
                                                                           ' and Article 16 (3 ) (c);
 1 . To the extent necessary for the proper working
 of the common organisation of the market in rice, the            (b ) the processing costs and the value of by-products
 Council, acting in accordance with the voting                          to be used when applying Article 4 (3 ), Article 14
 procedure laid down in Article 43 (2) of the Treaty                    (3 ) and Article 16 (2) (b) and (3 ) (b) and (c).
 ---pagebreak---                                       Official Journal of the European Communities                                   201
                         Article 20                              The Council, acting in accordance with the voting
                                                                 procedure laid down in Article 43 (2) of the Treaty
1 . Without prejudice to the provisions of                       on a proposal from the Commission, shall adopt
Regulation No 156/66/EEC1 the general rules for the              rules for the application of this paragraph and define
interpretation of the Common Customs Tariff and                  the cases in which and the limits within which
the special rules for its application shall apply to the         Member States may take protective measures.
tariff classification of products covered by this
Regulation; the tariff nomenclature resulting from               2. If the situation mentioned in paragraph 1 arises,
application of this Regulation shall be incorporated             the Commission shall, at the request of a Member
in the Common Customs Tariff from the date on                    State or on its own initiative, decide upon the
which the latter is fully applied.                               necessary measures ; the measures shall be
                                                                 communicated to the Member States and shall be
                                                                 immediately applicable. If the Commission receives a
2. Save as otherwise provided in this Regulation or              request from a Member State, it shall take a decision
where derogation therefrom is decided by the                     thereon within twenty-four hours following receipt of
Council, acting in accordance with the voting                    the request.
procedure laid down in Article 43 (2) of the Treaty
on a proposal from the Commission, the following                 3 . The measures decided upon by the Commission
shall be prohibited :                                            may be referred to the Council by any Member State
— the levying of any customs duty or charge having               within three working days following the day on
      equivalent effect;                                         which they were communicated. The Council shall
                                                                 meet without delay. It may amend or repeal the
— the application of any quantitative restriction or             measures in question in accordance with the voting
      measure having equivalent effect.                          procedure laid down in Article 43 (2) of the Treaty.
The restriction of import or export licences to a                                         TITLE III
specified category of those entitled to receive them
 shall be one of the measures considered as having                                   General provisions
 effect equivalent to a quantitative restriction.
                                                                                          Article 23
                         Article 21
                                                                  1 . The following shall be prohibited in the internal
                                                                  trade of the Community:
 When the c.i.f. price of one or more of the products
 mentioned in Article 16 ( 1 ) is appreciably higher than         — the levying of any customs duty or charge having
 the threshold price, and that situation is likely to                 equivalent effect;
 continue, thereby disturbing or threatening to disturb
 the Community market, the necessary measures may                 — any quantitative restriction or measure having
 be taken .                                                           equivalent effect;
                                                                  — recourse to Article 44 of the Treaty.
 The Council, acting in accordance with the voting
 procedure laid down in Article 43 (2) of the Treaty              2.    Goods     listed   in    Article  1   which   are
 on a proposal from the Commission, shall adopt                   manufactured or obtained from products to which
 general rules for the application of this Article.               Article 9 (2) and Article 10 ( 1 ) of the Treaty do not
                                                                  apply shall not be admitted to free circulation within
                                                                  the Community.
                         Article 22
  1 . If by reason of imports or exports the                                              Article 24
  Community market in one or more of the products
 listed in Article 1 experiences or is threatened with             Save as otherwise provided in this Regulation,
  serious disturbances which may endanger the                     Articles 92 to 94 of the Treaty shall apply to the
  objectives set out in Article 39 of the Treaty,                 production of and trade in the products listed in
  appropriate measures may be applied in trade with               Article 1 .
  third countries until such disturbance or threat of
  disturbance has ceased.                                                                 Article 25
                                                                   Member      States    and    the     Commission   shall
  1 OJ No 192, 27.10.1966, p . 3278/66.                            communicate to each other the information necessary
 ---pagebreak---   202                                Official Journal of the European Communities
  for implementing this Regulation. Rules for the                from the Commission, shall decide in the light of
  communication and distribution of such information             experience whether to retain or amend the provisions
  shall be adopted in accordance with the procedure              of Article 26 .
  laid down in Article 26.
                                                                                         Article 29
                        Article 26
                                                                 This Regulation shall be so applied that appropriate
  1.    Where the procedure laid down in this Article is         account is taken, at the same time, of the objectives
 to be followed, the Chairman shall refer the matter to          set out in Articles 39 and 110 of the Treaty.
 the Management Committee for Cereals set up by
 Article 25 of Council Regulation No 120/67/EEC1 of
  13 June 1967 on the common organisation of the                                        Article 30
 market in cereals (hereinafter called the ' Committee'),
 either on his own initiative or at the request of the
 representative of a Member State.                               The additional amount provided for in Article 12 (2 )
                                                                and the premium provided for in Article 13 (2) shall
 The provisions of Article 25 of the above-mentioned            be considered as levies in relation to third countries
 Regulation regarding that Committee shall apply in             within the meaning of Article 11 (4) of Council
 full.                                                          Regulation No 130/66/EEC2 of 26 July 1966 on the'
                                                                financing of the common agricultural policy.
 2.    The representative of the Commission shall
 submit a draft of the measures to be taken. The
 Committee shall deliver its Opinion on such                                            Article 31
 measures within a time-limit to be set by the
 Chairman according to the urgency of the questions             1.     Should transitional measures be necessary to
 under consideration. An Opinion shall be adopted by            facilitate the transition from the system provided in
 a majority of twelve votes.                                    Regulation No 16/64/EEC to that established by this
                                                                Regulation, in particular if the introduction of the
 3.    The Commission shall adopt measures which                new system on the date provided for would give rise
 shall apply immediately. However, if these measures            to      substantial    difficulties  in    respect    of
 are not in accordance with the Opinion of the                  certain products, such measures shall be adopted in
 Committee, they shall forthwith be communicated by             accordance with the procedure laid down in Article
the Commission to the Council . In that event the               26. They shall be applicable until 31 August 1968 at
                                                                the latest.
 Commission may defer application of the measures
which it has adopted for not more than one month
from the date of such communication .                          2. By way of derogation from the provisions of
                                                               Article 2, the prices and standard qualities mentioned
The Council, acting in accordance with the voting              therein effective for the 1967/68 marketing year shall
procedure laid down in Article 43 (2) of the Treaty,           be determined by the Council, acting in accordance
may take a different decision within one month.                with the voting procedure laid down in Article 43 (2)
                                                                of the Treaty on a proposal from the Commission.
                       Article 27
                                                                                       Article 32
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        This Regulation shall enter into force on the day
Member State.                                                  following its publication in the Official Journal of the
                                                               European Communities.
                       Article 28                              The system established by this Regulation shall apply
                                                               from 1 September 1967, except for the measures
At the end of the transitional period, the Council,            provided for in Article 31 ( 1), which may be made to
acting in accordance with the voting procedure laid            apply from the date of entry into force of this
down in Article 43 (2) of the Treaty on a proposal             Regulation.
1 OJ No 117, 19.6.1967, p. 2269/67.                            - OJ No 165 , 21.9.1966, p . 2965/66.
 ---pagebreak---                                          Official Journal of the European Communities                                     203
Regulation No 16/64/EEC and the provisions                             From the same date Annex A of Regulation No
adopted in implementation thereof, except for the                      120/67/EEC shall be read as follows in respect of
provisions of Regulation No 3/63/EEC,1 shall be                        tariff sub-heading No ex 11.02 ex A III ex (b):
repealed with effect from 1 September 1967.
                                                                           ' Other, except rice groats and meal and rolled or
                                                                            flaked rice'.
             This Regulation shall be binding in its entirety and directly applicable in all Member
             States .
             Done at Brussels, 25 July 1967.
                                                                                              For the Council
                                                                                               The President
                                                                                              H. HOECHERL
                                                              ANNEX A
                                                              Definitions
              1 . (a) Paddy rice : rice of which the grains are still enclosed in the floral husk;
                  (b) Husked rice: rice grains from which the husks have been removed, but which are still
                       enclosed in the pericarp. This term embraces rice known commercially as 'brown rice',
                       'cargo rice', 'loonzain rice' and 'riso sbramato';
                  (c) Semi-milled rice: rice from which only part of the pericarp has been removed ;
                  (d) Milled rice: rice from which the whole of the pericarp has been removed, whether or
                       not the grains still retain longitudinal white striations.
             2. (a) Round-grained rice: rice of which 90% or more of the grains have a length equal to or
                       less than 5-2 millimetres and a ratio of length to width of less than 2;
                  (b) Long-grained rice: rice not meeting the specifications of (a).
                  The grain measurements are taken on milled rice by the following method :
                  — take a representative sample from the batch;
                  — sieve the sample so as to retain only whole grains;
                  — carry out two measurements consisting of 100 grains each and find the average;
                  — express the result in millimetres, rounded off to one decimal point.
              3 . Broken rice: milled rice grains from which a piece larger in volume than the point has
                  been removed.
              4. Quellmehl: flour of which the starch has undergone heat or other treatment thus increasing
                  its swelling capacity.
 1 OJ No 14, 29.1.1963, p. 153/63 .
 ---pagebreak--- 204             Official Journal of the European Communities
                                    ANNEX B
         CCT
       heading                               Description of goods
          No
       19.02     Preparations of flour, meal, starch or malt extract, of a kind used as
                 infant food or for dietetic or culinary purposes, containing less than
                 50% by weight of cocoa
       1 9.05    Prepared foods obtained by the swelling or roasting of cereals or
                 cereal products (puffed rice, corn flakes and similar products)
       19.06     Communion wafers, empty cachets of a kind suitable for pharmaceutical
                 use, sealing wafers, rice paper and similar products
    ex 21.07     Food preparations not elsewhere specified or included, containing
                 sugar, milk products, cereals or cereal-based products
       35.05     Dextrins and dextrin glues ; soluble or roasted starches; starch glues
       38.12 AI  Prepared glazings and prepared dressings with a basis of amylaceous
                 substances