CELEX: 51974PC0887
Language: en
Date: 1974-06-19
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL amending Regulation (EEC) No 974/71 on certain measures of conjunctural policy to be taken in agriculture following the temporary widening of the margins of fluctuation for the currencies of certain Member States

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 887
Vol. 1974/0135
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(74)887 final
                                                      19 June 1974
                              PROPOSAL FOR A
                     REGULATION (EEC ) OP THE COUNCIL
       amending Regulation ( EEC ) Ho 974/71 on certain measures of
 conjunctural policy to "be taken in agriculture following the temporary
                  widening of the margins of fluctuation
                for the currencies of certain Member States
              ( submitted to the Council by the Commission)
COM(74) 887 final
 ---pagebreak---                          EXPLANATORY MEMORANDUM
                                      I.
1 . Article 4a ( l ) of Council Regulation ( EEC ) NO 974/71 on certain measures of
    conjunctural policy to be taken in agriculture following the temporary widening
    of the margins of fluctuation for the currencies of certain Member States provides
    that , where Member States whose currencies have depreciated in value are trading
    with third countries , monetary compensatory amounts
    ( a) granted on imports shall be deducted from the import charge ,
    ( b ) charged on exports shall be deducted from the export refund .
2 . The application of Article 4a does not raise problems of an administrative nature
    in respect of imports into the Member States ooncerned . On the other hand , this is
    not the case in certain Member States as regards exports# The levying of amounts in
    trade with third countries is usually entrusted to national bodies other than those
    which grant export refunds .
 ---pagebreak---                                           - 2 -
          Administrative cooperation which would be possible in principle between these
       : two bodies encounters difficulties in practice owing to the different methods
          of collecting levies at the frontier and of granting refunds . It is possible
       I on the one ha>d , pursuant to the rules laid down in Regulation ( EEC ) no 974/71 ,
       ! that the amount to be levied exceeds the refund which is to be granted and on the
         other hand tnat .the granting of the refund often depends on factors which remain
         unknown until after the product has left the territory and reached its destination
         (refunds differentiated according to destination ). In these circumstances certain
         Member States have difficulty • in applying the deduction as provided for in Article
         4a ( l ) (b ) and prefer to separate the granting of the refund from the levying of
         the monetary compensatory amount .
3 . However , such a separation , although desired by certain Member States for admini­
        strative reasons , has consequences going beyond simple administrative . practice .
        The introduction of this seperation will have a financial effeot . Owing to
        existing financial rules this Geperation would result in                        •
     , - an increase in refund expenditure ,
        - an increase in the receipt of own resources by the Member States concerned
      when the monetary compensatory amount is granted on exports . Bearing in mind this
       increase in expenditure , the increase in receipts of own resources of the Member
      States concerned and not forgetting the effect , in the own resources scheme , of
      the concept of the "relative part " and the 10% collection costs it must be
  . concluded that the financial effect of the separation is altogether different from
      the financial effect envisaged by Article 4a.
 • In view of the administrative difficulties a solution must however be sought which
   . both avoids such difficulties and has a financial effect similar to that resulting
     from the present version of Article 4a . Thus it is proposed that the Member States
     concerned should be able to decide not to apply the deduction refered to and to
     grant the refund separately from the levying of the monetary compensatory amount .
     However , it is also proposed that to achieve a financial effect similar to that
     resulting from Article 4a in its present version , for accountancy purposes within
     the EAGCF , an aggregated deduction should be made by applying the detailed
. ruleB to be adopted in accordance with the procedure provided for in Article 13
    of Regulation ( EEC ) No 729/70 ( Opinion of the Fund Committee - Commission
    Decision )         .     -
 ---pagebreak---                                        3
5 . Financial effect
     Since the object of this proposal is to avoid certain administrative diffi­
     culties by making use of an aggregate method which does not interfere in
    principle with the accountancy method provided for in Article *ta of Regula­
    tion ( EEC ) No 97V71 the financial effect is limited to the margin of
    approximation inherent in the use of an aggregate method .
                                       II .
    Article 8(3 ) of Regulation ( EEC ) No . 97^/71 provides that each month the
    Commission must submit to the Council a report upon the application of the
    same Regulation . As the period of validity of this Regulation was extended
    it was established that these reports lost must of the importance that
    they had offered on the establishment of the system of compensatory
    amounts . This appears to indicate to indicate the revocation of future
    obligations to report to the Council ; thus it is proposed to abolish the
    paragraph in question .
 ---pagebreak---                                 - 4 -
                           PROPOSAL FOR A
                REGULATION ( EEC )        '   OP THE COUNCIL
           amending Regulation ( EEC ) NO 974/71 on certain measures .
           of conjunctural policy to be taken in agriculture following
           the temporary widening of the margins of fluctuation for
           the currencies of certain Member States
 THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community and in
 particular Articles 28 , 43 , 209 and 235 thereof ;
 Having regard to the proposal from the Commission ;
 Having regard to the Opinion of the European Parliament ;
Whereas Article 4a ( l ) of Council Regulation ( EEC ) No 974/71 ( l ) of 12 May 1971 on
 certain measures of conjunctural policy to be taken in agriculture following the
 temporary widening of the margins of fluctuation for the currencies of certain
Member States , as last amended by Regulation ( EEC ) No 3450/73 ( 2 ), provides that in
trade with third countries compensatory amounts granted on imports shall be deducted
from the import charge and those charged on exports shall be deducted from the export
refund ; whereas , in cases where at the time of exporting no refund is applicable or
the monetary compensatory amount to be levied is higher than the refund , that part
of the monetary compensatory amount which exceeds the refund , or the entire monetary
compensatory amount , as the case may be , shall be payable on completion of customs
export formalities in accordance with Article 6 ( l ) of Commission Regulation (EEC )
No 1463/73 ( 3 ) of 30 May 1973 laying down detailed rules for the application of
monetary compensatory amounts , as last amended by Regulation (EEC ) No 350/74 ( 4 );
Whereas the application of Article 4a ( l ) has proved difficult from an administrative
point of view ; whereas even though the import oharge may generally bo reduced the
( 1 ) OJ No L 106 , 12 May 1971 , p.l
( 2 ) OJ No L 353 , 22 Deoember 1973 , p . 25
( 3 ) OJ No L 146 , 4 June 1973 , p.l
(4 ) OJ No L 41 , 13 February 1974 , p« 9
 ---pagebreak---                                  - 5 -
 deduction of compensatory amounts from the export refund may prove diffi­
 cult where the granting of the refund and the levying of the compensatory
 amount are not effected by the same national body and where the exact
 amount of the refund is unknown at the time of completion of customs
 formalities ;
 Whereas this difficulty may be avoided by authorizing Member States not to
 follov; the procedure referred to in Article 4(1 ) ( b ) of Regulation ( EEC )
No 97^/71 for individual transactions but to use an aggregate method which
does not interfere with the accounting procedure used up to now }
Whereas Article 8(3) of Regulation ( EEC ) No 97V71 provides that each
month the Commission must submit to the Council a report upon the use made
of the same Regulation ; whereas experience makes evident that this obliga­
tion should be revoked ;
HAS ADOPTED THIS REGULATION :
                                  Article 1
The following paragraphs are hereby added to Article Ha ( 1 ) of Regulation
( EEC ) No 97V71 :
" The Member States concerned may however decide not to apply the provi­
   sions of the preceding paragraph contained under ( b ).
   Member States availing themselves of the right referred 'to in the second
   paragraph shall , by an aggregate method to be adopted , determine the
   total amount of the monetary compensatory amounts which in accordance
   with the first paragraph should have been deducted from the refunds .
   For accounting purposes in the Budget of the European Communities
   -   this total amount shall be considered to have been deducted from the
       refunds ,
   -   any excess over the sum of the refunds shall be considered to be a
       monetary compensatory amount levied on exports .
 ---pagebreak---                                   - 6 -
  Detailed rules for the application of t'he preceding paragraph shall be
  adopted in accordance with the procedure laid down in Article 13 of
  the Council Regulation ( EEC ) No 729/70^^ of 21 April 1970 on the
  financing of the common agricultural policy , as last amended by Regu­
  lation ( EEC ) No 2788/72 ( 6) ".
                                  Article 2
Article 8(3 ) of Regulation ( EEC ) No . 97^/71 is deleted .
                                  Article 3
This Regulation shall enter into force on the day of its publication in
the Official Journal of the European Communities .                • ■
Article 1 shall apply with effect from 1 February 1973-
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
                                        Done at Brussels ,
                                        For the Council ,
                                        The President
    OJ No L 94 , 28 Aprii 1970 , p . 13
    OJ No L 295 , 30 December 1972 , p . 1