CELEX: 51993PC0135
Language: en
Date: 1993-04-15
Title: Proposal for a COUNCIL REGULATION (EEC) laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products

COMMISSION OF THE EUKOPEAN COMVIUNITIES
                                                                     C0M(93) 135 final
*^^?-:!':''':..;t$j$te>,&sÊ                                          Brussels, 15 April 1993
                                                      Proposal for a
                                                COUNCIL REGULATION (EEC)
                              aying down the trade arrangements applicable to certain goods
                                 resulting from the processing of agricultural products
                                              (presented by the Commission)
 r^—'—as T ""amamm
         -•«.."        i"ïi
                  >**.*aa
 ---pagebreak---                               - 2 -
                            EXPLANATORY MEMORANDUM
The present proposal for a regulation establishes the general rules to be
adopted at the Community level In order to permit uniform application In the
Community of the common agricultural policy and the common commercial
policy, as laid down by the Treaty, to goods resulting from the
transformation of agricultural products.
1. INTRODUCTION
The trade arrangements applicable to goods not covered by Annex II to the
Treaty, as originally laid down by Council Regulation 160/66, are currently
governed by Regulations (EEC) Nos 3033/80 and 3034/80 as regards the general
rules and measures applicable to imports and by Council Regulation (EEC)
No 3035/80 as regards exports.
Since 1967 the granting of export refunds on certain agricultural products
exported in the form of goods not covered by Annex II has been determined by
each common organization of the market for which such refunds are considered
desirable, the sectors concerned being milk, cereals and rice, eggs and
sugar.
The rules applicable to the exportation of goods eligible for these refunds
depend, first, on the measures adopted under the common agricultural policy
- whether these measures are Internal or applicable to exports - and
secondly on conditions related to the actual manufacture of the goods.
Owing to the differences in those conditions and in the manufacturing
processes, the agricultural raw materials used and the scope for
substituting other agricultural or Industrial products, the provisions
governing exports need to be regularly adjusted.
As far as Importation is concerned, certain goods falling within Chapters 1
to 24 of the Combined Nomenclature, but not covered by Annex M to the
Treaty, and certain goods classified under subsequent chapters of the CN,
are subject to a charge comprising an ad valorem duty designed to protect
the processing industry and a variable component to offset the differences
between world market prices and the prices on the Community market of
agricultural products In the milk, sugar and cereals and rice sectors which
are Incorporated In such goods.
These arrangements do not apply to the other non-Annex II products falling
within Chapters 1 to 24 of the CN.
However, for the purposes of the accession agreements and the association
agreements with the EFTA countries and, subsequently, with the countries of
central and eastern Europe, it was necessary to take account of the content
of basic agricultural products in all processed agricultural products not
covered by Annex I I to the Treaty.
 In view of the International situation and the regular changes that have
been made to the common organizations of the market, a more thoroughgoing
revision of the trade arrangements in respect of goods not covered by
Annex II to the Treaty is needed.
 ---pagebreak---                                - 3 -
   I. TRADE ARRANGEMENTS
 Over and above the revamping of Regulation (EEC) No 3033/80, a number of new
 aspects have been built into the existing trade arrangements.
 1. Basis of the Regulation. A fresh look has been taken at the basis of the
 Regulation in the light of experience and of the way the institutions have
 developed. The main thrust of this proposal for a Regulation is to take
 Into consideration all the various aspects of the differences between
 Community and world market prices of certain agricultural products used in
 the manufacture of goods not covered by Annex II to the Treaty, In so far as
 price levels in the Community are directly linked to the existence of the
 common agricultural policy. The proposal also includes a number of outline
 provisions concerning preferential trade arrangements.
 Hence, this proposal Is based on Articles 43 and 113 of the Treaty.
 2. Administering the arrangements. In order to Implement these
 arrangements, certain measures adopted under the common organization of
markets have to be extended to include agricultural products used in the
manufacture of non-Annex II goods. It is also necessary to take account of
market data and technological progress and to devise a suitable procédure
 for finding practleal solutions to specific problems.
Consequently, on the basis of the experience gained In the management of
agricultural markets and of goods trade arrangements within the Article 235
Group for processed agricultural products, It Is proposed that the detailed
 implementing measures should be laid down by the management committee
procedure. This presupposes that a management committee take over both the
tasks currently carried out by the Article 235 Group and the administration
of the preferential agreements (EEA agreement).
3. Scope. Since the proposal also covers the preferential agreements, all
the non-Annex II goods falling within Chapters 1 to 24 of the Combined
Nomenclature which are subject to Import duty, plus the other goods already
referred to In Regulation (EEC) No 3033/80, have been grouped together in a
single Régulât ion, even though the provisions on preferential agreements are
relevant only to new goods.
Indeed, since as long ago as 1973 these agreements have had to take account
of the differences In the cost of purchasing agricultural products for the
manufacture of goods which are produced on a highly Industrial scale In the
Community, but which are st111 very closely linked with agricultural policy
in a number of non-Community countries.
Likewise, in the accession negotiations with Spain and Portugal, there was
found to be no suitable frame of reference when It came to laying down
provisions on the alignment of prices.
 ---pagebreak---                                - 4 -
4. Other provisions. This proposal covers all the general provisions
directly linked to the existence of the common agricultural policy in the
Community and which call for price levels that differ substantially from
those obtaining on third country markets. Over and above its general
provisions it also seeks to ensure better management of trade through the
setting-up'of an ad hoc management committee.
J-LL, REFUND ARRANGEMENTS
These arrangements are governed at present by Council Regulation (EEC)
No 3035/80.
However, In the context of the reform of the common agricultural policy the
Council decided, when adopting Regulation (EEC) No 1766/92 on the common
organization of the market In cereals, to make the Commission responsible
for drawing up the detailed Implementing measures under the management
committee procedure, and in particular the export refund arrangements.
These arrangements also cover exports of cereals In the form of goods not
 listed In Annex II to the Treaty.
Applying the refund arrangements to goods not covered by Annex I I requires
common Implementing procedures in order to take account of the specific
aspects of incorporating and processing agricultural products In the
manufacture of such goods.
Article 11 of the draft Regulation replacing Regulation 3033/80 therefore
makes it clear that refunds may be granted in respect of agricultural
products exported In the form of non-Annex I I goods pursuant to the
Regulations on the common organization of the market in the agricultural
sector; the procedure used to determine the amount of the refund Is the same
as that used to determine the amount of refund for agricultural products
exported unprocessed, whereas the common refund arrangements are adopted by
the Joint management committee procedure to take due account of the
particularities of processing these products to produce goods which are not
covered by Annex II to the Treaty.
Article 20 of the Regulation provides for the repeal of Regulation 3035/80
and Its replacement by implementing measures adopted by the Commission under
the (Joint) management committee procedure.
 ---pagebreak---                                        - 5 -
                                  Proposal for a
                            COUNCIL REGULATION (EEC)
        aying down the trade arrangements applicable to certain goods
           resulting from the processing of agricultural products
THE COUNCIL OF THE EUROPEAN COMMUN ITI ES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 43 and 113 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 Articles 38 to 47 of the Treaty provide for the establishment of a
common  agricultural   poI icy covering   the agricultural     products   listed  in
Annex II to the Treaty;
Whereas  certain    agricultural   products  are   used   in numerous    goods   not
covered by Annex 11 ;
Whereas,   it   is  necessary   to   provide  for   measures    under   the   common
agricultural policy and the common commercial policy to take account of the
impact of trade in such goods on the objectives of Article. 39 of the Treaty
and of the impact of the measures adopted to implement Article 43 of the
Treaty  on  the   economic   position  of  such   goods,   given   the  differences
between the costs of procuring agricultural products within and outside the
Community and the differences in the prices of agricultural products;
Whereas the Treaty lays down that agricultural policy and commercial policy
are Community policies; whereas      it is necessary    to establish   for certain
goods resulting from the processing of agricultural products, general and
comprehensive rules, appIicab le at Community       level, relative to trade in
these goods, in order to attain the objectives of the Treaty;
 ---pagebreak---                                                6 -
Whereas Council Regulation (EEC) No 3033/80 of 11 November 1980 laying down
the  trade    arrangements    applicable       to   certain     goods   resulting      from   the
                                          1
processing    of   agricultural    goods , as        last   amended   by   Regulation       (EEC)
            2
No 1436/90 , provides for        the    levying on       imports of certain goods of a
charge consisting of a fixed component for the protection of the processing
industry  and a variable component            to offset       any difference       between    the
prices of the relevant agricultural             products     in the Community and on the
worId market ;
Whereas certain amendments are needed to the rules applicable to trade in
these goods to take account of developments                in the Community's agreements
and in the common agricultural policy;
Whereas  certain     goods   falling within        Chapters     1 to   24 of     the    Combined
Nomenclature are not covered by Regulation (EEC) No 3033/80; whereas these
goods are also obtained using agricultural products subject                     to the common
agricultural policy; whereas the charges applied to imports of such goods
must  therefore      likewise  cover     the    difference      between   the    world    market
prices and the prices on the Community market for the agricultural products
used  in  their     production    and   ensure      the   protection     of   the    processing
industry concerned; whereas         it   is therefore necessary          to consolidate the
rules applying      to all   the goods obtained          in significant      proportion      from
agricultural products;
Whereas, under      agreements entered        into, the Community         is to      limit   such
charges  to covering,       in whole or       in part, differences          in the price of
agricultural     products used     in the production of            the goods      in question;
whereas it is accordingly necessary to establish for these goods that part
of the overall charge which covers the differences between the prices of
the agricultural products taken into account;
Whereas,   for    the basic products concerned,            the offsetting       of    the price
differences between      the world market         and   the Community      market     takes the
form of agricultural       levies; whereas        it is necessary      to maintain a close
link  between     calculation    of    the   agricultural        component    of    the   charge
applicable to goods and that applicable to basic products imported                        in the
unaltered state;
1    OJ No L 323, 29.11.1980, p. 1
2    0J No L 138, 31.5.1990, p. 9.
 ---pagebreak--- Whereas,     in order     to avoid    undue administrative          formalities, negligible
amounts    should    not   be applied     and Member States should           be permitted     to
refrain from adjusting amounts relating to a given transaction where the
balance of the amounts concerned is itself negligible-,
Whereas the implementation of preferential agreements should not complicate
the   procedures      applicable     to   trade    with    third   countries;     whereas    the
 implementing     rules must     therefore ensure        that goods declared        for export
under a preferential         arrangement     are not     in fact exported       in accordance
with the general arrangements and vice versa;
Whereas     arrangements       must    be    made    for    export     refunds    on    certain
agricultural goods used in the manufacture of goods not covered by Annex                       M
to the Treaty in order not to penalize producers of the said goods for the
prices at which they are obliged to procure their supplies as a result of
the common agricultural policy; whereas such refunds should cover only the
difference between the price of an agricultural                  product    in the Community
market   and world market         respectively; whereas         these arrangements       should
accordingly      be  established      as   part   of   the   common    organization     of   the
markets concerned;
Whereas Article 13 of Council Regulation (EEC) No 1766/92 of 30 June 1992
on the common organization of the market               in cereals** and the corresponding
articles of certain other           regulations on the common organization of the
markets in agricultural products provide for the granting of such refunds-,
whereas    the    implementing     rules    should    be   adopted    under   the   management
committee     procedure      referred     to    in   Article     23   of  Regulation       (EEC)
No 1766/92      and    the   corresponding       articles     of    the  other     regulations
concerned; whereas the amounts of the refunds should be fixed under                          the
same procedure as the amounts of the refunds for the agricultural products
exported    in the unaltered state; whereas the common               implementing rules for
the    said    procedure      must    be    established      with    due    regard    for    the
manufacturing processes of the goods concerned; whereas the                       implementing
rules should accordingly be established on the same basis;
      OJ No L 181, 1.7.1992, p. 21
 ---pagebreak---                                           - 8 -
Whereas   the mechanism     of   agricultural     protection     provided    for  by   this
Regulation   may  prove   defective     under   exceptional     circumstances;     whereas
this   risk  may  also   appear    in   the   context   of   preferential      agreements;
whereas in order to avoid, in such cases, that the Community market remains
without defence against disturbances which could result                 from this, it is
appropriate to provide for the rapid taking of all necessary measures;
Whereas Council    Regulation     (EEC) No     1999/85 of     16 July     1985 on    inward
processing4, as last amended by Regulation (EEC) No ....5, should be made
applicable to trade covered by this Regulation;
Whereas   the  distinction     drawn   between   agricultural      products    covered   by
Annex II to the Treaty and goods not covered by Annex II                   is a criterion
specific to the Community, based on the situation of agriculture and the
food industry in the Community; whereas the situation may be appreciably
different   in certain    third countries with which          the Community      concludes
agreements; whereas, therefore, provision must be made                in such agreements
that the general     rules applicable to processed agricultural              products not
covered by Annex II to the Treaty may be extended, mutat is mutandis, to
certain processed agricultural products covered by Annex II to the Treaty;
Whereas this Regulation requires detailed implementing rules; whereas it is
appropriate   for those detailed rules to be           laid down after consulting a
management   committee on which the Member States are represented; whereas
the   rules   should    include,     in   particular,     rules    to    replace   Council
Regulation (EEC) No 3034/80 of 11 November            1980 fixing the quantities of
                                           ,i
basic products considered to have been used in the manufacture of the goods
covered   by Regulation     (EEC) No 3033/806, as         last amended      by  Commission
                               7
Regulation (EEC) No 572/91 ,
HAS ADOPTED THIS REGULATION:
                                        Article 1
1.   This   Regulation     determines      the  trade    arrangements      applicable    to
     certain goods referred to in paragraph 2,
4    OJ No L 188, 20.7.1985, p. 1.
5
6    OJ No L 323, 29.11.1980, p. 7.
7    0J No L 63, 9.3.1991, p. 24.
 ---pagebreak---                                     - 9-
   (a) in the manufacture of which one or more agricultural products have
       been used, either unprocessed or after processing, or
   (b) which,  in accordance   with   Article 13(2),   are  considered   to be
       manufactured from products referred to in (a), or
   (c) which  are   classified    under   the  same   (eight-digit)   Combined
       Nomenclature code as the goods referred to in (a) and (b).
2. For the purposes of this Regulation,
       "agricultural products" means the products covered by Annex ll to
       the Treaty;
       "basic products" means agricultural      products the price of which
       differs between the Community market and the world market or, in
       the framework of preferential      trade arrangements, the market of
       certain third countries;
       "goods" means the products not covered by Annex I I to the Treaty,
       listed  in Annex B to this Regulation, obtained wholly or partly
       from agricultural products, and the agricultural products listed
       in Annex C, which    are   assimilated   to goods under   preferential
       agreements.
                                   Title I
                           TRADE ARRANGEMENTS
                                 Chapter 1
                                IMPORTATION
                                 Art icle 2
1. On importation into the Community, the goods listed in Annex B shall
   be subject to a charge; this charge shall take account of:
   (a) the conditions for production and marketing of those goods;
 ---pagebreak---                                        - 10 -
     (b) the difference between the prices on the Community market of the
         agricultural    products    considered     to   have   been   used    in    their
         production and the prices of        imports from third countries, where
         the total cost of the basic products in question is higher                in the
         Community, or, in the case of preferential            trade, the prices of
         the agricultural products in certain third countries.
2.   For the goods listed in Table 1 of Annex B, the charge referred to in
     paragraph 1 shall consist of:
   "'-"  an ad valorem duty, which        is the fixed component        of   the charge
         referred to in point (a) of paragraph 1;
         an   "agricultural    component"     to   offset    the    price   differences
         referred to in point (b) of paragraph 1.
     The agricultural component may take the form of a variable component
     established in line with the conditions laid down in Articles 3 and 4
     or of a fixed component established         in line with the conditions laid
     down i n Ar t i cIe 5.
3.   For the goods listed in Table 2 of Annex B, the agricultural component
     shall   consist   of   an   ad valorem     duty    and/or    a   specific     amount
     established per measurement unit.
     For trade with certain countries with which the Community has signed a
     preferential agreement, this agricultural component may be replaced by
     one of the forms referred to in paragraph 2.
4.   Subject   to Article 10, the       levying   of   any  customs    duty   or   charge
     having   equivalent   effect    other   than    the   charge    provided     for   in
     paragraph 1 shall be prohibited.
                                     Art icle 3
1.   The Commission shall fix, for each of the goods listed in Table 1 of
     Annex B,   the   variable   component    calculated     on    the  basis     of   the
     difference   referred   to   in   paragraph 2     for  the    quantity    of    basic
 ---pagebreak---                                      - 11
   products    to be   taken  into account, established       in accordance    with
   Article 13.     For this purpose, only the agricultural        products listed
    in Annex A shall be taken into account.
2. For each of the basic products the Commission shall establish:
        either the difference between:
        (a) the   average   threshold   price   applicable  over    the   reference
             period for which the variable components are fixed, and
        (b) the average cif price (excluding special cif prices) or, where
             appropriate, the free-at-frontier prices used for fixing the
             levy applicable during     the period    preceding    the period   for
             which the variable component was fixed,
        or, in the case of isoglucose, the average levies referred to in
        Article 16(6) of Council Regulation (EEC) No 1785/81 8 applicable
        over the period preceding the period for which the components are
        f i xed.
3. The period referred to in paragraph 2 shall be one quarter.            It may be
   subdivided into two subperiods of one and two months if the quarter is
   spread over two calendar years or two marketing years, or             it may be
    longer   than   one   quarter   within    the   framework    of   preferential
   agreements.
   For the purposes of calculating the cif prices, the free-at-frontier
   prices or the levies, the figures for the last 20 days of the period
   preceding the period for which the component          is fixed shall not be
   taken into consideration.
4. If one of the figures used for calculating the difference referred to
   in paragraph 2 is not available for one or more basic products, the
   Commission    shall  replace   the missing    figure with    the corresponding
   figure for the closest period available, corrected, where appropriate,
   by the monthly gradation of payments or with any other known details
   affecting comparison between the missing figure and the figure chosen
   to replace it.
   OJ No L 177, 1.7.1981, p. 4
 ---pagebreak---                                        - 12 -
   When the factor which was not available is determined, the Commission
   may   fix   the  corrected    variable     components    if,  by   reason   of  the
   application of the first subparagraph, trade is seriously disrupted or
   is in danger of being seriously disrupted.
                                     Art icle 4
1. Where the Common Customs Tariff lays down a maximum charge, the charge
   provided for in Article 3 may not exceed this maximum.
   Where the maximum charge referred to in the first subparagraph may be
   applied   only   under   specific     conditions,   these   conditions    shall  be
   determined in accordance with the procedure laid down in Article 11(1)
   of Council Regulation (EEC) No 265S/87 9 .
2. Where the maximum charge includes an additional duty on various kinds
   of sugar, expressed as sucrose (AD S/Z), or on flour               (AD F/M), such
   additional    duty   shall  be calculated,      as appropriate,     taking either
   sugar or flour as the sole agricultural product.
   The   quantity    of   sugar   or    flour   shall   be   determined    under   the
   conditions laid down in Article 13(1).
   Where the quantities of sugar or flour actually used, as provided for
   in Article 13(1), are not known, these quantities shall be determined
   under the same conditions as applied for the purposes of establishing
   the agricultural component.
3. The   Commission     shall   determine     for  each    period   referred    to  in
   Art icle 3(3):
   (a) the amount of the additional duties, calculated in accordance with
        paragraph 2 of this Article;
   (b) the    price   differences      applicable    to   the   additional     duties,
        determined in accordance with Article 3(2).
   OJ No L 256, 7.9.1987, p. 1.
 ---pagebreak---                                       - 13 -
                                    Art icle 5
1.  If the levies applicable to imports of the basic products referred to
   in Annex A are replaced by fixed amounts, the agricultural               components
   applicable   to the goods referred       to   in Table 1 of Annex B shall         be
   calculated on the basis of these amounts.
2. For each basic product      to be taken      into account     in calculating     the
   agricultural    component    of   the   charge,   the    amount    established    in
   application of Article 3(2) shall be replaced by the amount applicable
   to the basic product considered to have been used.
3. The date from which the fixed amounts applicable to imports of basic
   products shall be taken      into account    in establishing the agricultural
   component   of  the charge shall      be determined      in accordance with      the
   procedure laid down in Article 16.
                                    Art icle 6
1. For the purposes of determining the agricultural component              in the case
   of preferential trade:
   (a) the   quantities of    agricultural     products    used,   as   determined   in
        accordance with Article 13(1), may be replaced by the quantities
        actually   used   in  the  country    of   origin    if  the   Community    has
        concluded    a    customs      cooperation     agreement       covering     the
        establishment    of   such    quantities;     in    this   case,    conversion
        coefficients shall be established taking account of the parties'
        respective   definitions     of   these   basic    products    to   make   them
        directly comparable;
   (b) the price difference referred to in Article 3(2) may be replaced
        by   a   system   of   direct     offsetting     of    the   differences     in
        agricultural   prices   in the Community     and the region concerned or
        by  direct    offsetting     vis-à-vis    a   jointly     established    price
        recognized for the region Concerned;
 ---pagebreak---                                      - 14 -
   (c) where application of point (b) results in differences with little
        impact on the goods covered, this arrangement may be replaced by a
       system   of  flat-rate   amounts    or   rates in order      to  reduce  the
       administrative workload.
2. The agricultural components referred to in paragraph 1 may apply for a
   period different from the period allowed for non-preferential trade.
3. The ad valorem duties corresponding to the agricultural component of
   the charge for     the goods   in Table 2 of Annex B may        be replaced by
   another agricultural component within the framework of a preferential
   agreement.
4. The detailed rules for applying paragraphs 1 to 3 shall be adopted in
   accordance with the procedure laid down in Article 16 if the agreement
   concerned determines:
       the agricultural prices adopted in the agreement;
       the period for which these agricultural components are fixed;
       the goods and agricultural       products subject     to the rules of the
       agreement.
   Any   component   or  components    not   determined    in  the   agreement   in
   question   shall   be  adopted   by  the   Council   in accordance     with  the
   procedure laid down in Article 113 of the Treaty.
5. The   other   implementing    rules    necessary   in    order    to   establish
   preferential   arrangements shall be determined        in accordance with the
   procedure laid down in Article 16.
   These provisions shall cover in particular:
       establishment of the amounts referred to in paragraph 1(b);
       completion and circulation of the documents necessary for granting
       these arrangements;
 ---pagebreak---                                         - 15 -
   -    the measures necessary to avoid diversion of trade;
       where the amounts to be granted on export               under   a preferential
       agreement      referred    to  in Article 8(4) are       also   concerned,   the
       measures to guarantee that the goods declared for export under a
   •    preferential       arrangement    are   not   in   fact    exported   under    a
       non-preferential arrangement or vice versa.
6. Where    methods     of   analysing    the   agricultural     products    used   are
   necessary,     the methods      specified   for  the  agricultural     products   in
   question    in the case of export refunds for third countries shall be
   used.
                                      Art icle 7
1. Where a preferential agreement provides for the reduction or phasing
   out of the part of the charge referred             to  in Article 2(1)(a), this
   shall   be   the   fixed   component    in the case of      the goods    listed   in
   Table 1 of Annex B.         In the case of the other       goods covered by the
   agreement, this part of the charge shall be obtained by deducting from
   the   total   charge     the   agricultural    component   provided    for   in  the
   agreement    unless the agreement makes provision           for determining     this
   part by some other means.
2. Where   a   préfèrentiaI      agreement    provides   for   a   reduction    in  the
   agricultural      component     of   the   charge,    the   detailed    rules    for
   determining and managing such reduced agricultural components shall be
   adopted    in accordance      with  the procedure     laid   down   in Article 16,
   provided the agreement specifies:
       the products eligible for these reductions;
       the quantities or value of any quotas to which                these reductions
       apply or the method of calculating these quantities or values-,
       the percentage reductions in the agricultural              compare     for each
       basic product concerned.                   ;
 ---pagebreak---                                  - 16 -
Any   component   or  components   not   determined    in  the  agreement  in
question   shall   be adopted   by   the  Council   in accordance   with  the
procedure laid down in Article 113 of the Treaty.
                               Chapter 2
                              EXPORTATION
                               Art icle 8
On exportation of the goods, the agricultural products which have been
used and which satisfy the conditions laid down in Article 9(2) of the
Treaty may qualify for refunds established pursuant to the regulations
on the common organization of the market in the sectors concerned.
No refund may be granted on agricultural         products not covered by a
common   organization of   the market    providing   for  export  refunds on
products exported in the form of goods.
The list of goods qualifying for refunds shall be established, taking
account of :
    the impact of the difference between the prices on the Community
    market and on the world market of the agricultural         products used
     in their production;
    the need to cover this difference        in whole or   in part, to allow
    exportation of    the agricultural    products used and of     the goods
    concerned.
The list shall be drawn up pursuant to the regulations on the common
organization of the agricultural markets.
The common   implementing rules for the refund arrangements referred to
in this Article shall be adopted pursuant        to the regulations on the
common organization of the agricultural markets.
The amounts of the refunds shall be fixed in accordance with the same
procedure as for the granting of refunds on the agricultural products
concerned when they are exported in the unprocessed state.
 ---pagebreak---                                         - 17 -
4.    Where    the  arrangements   for   the  direct   offsetting   of    agricultural
      prices    referred   to  in Article 6(1)(b)     are  established     within   the
      framework of a preferential agreement, the amounts payable on exports
      to   the   country  or  countries    concerned   by  the  agreement     shall  be
      determined jointly and on the same basis as the agricultural component
      of the charge under the conditions laid down in the agreement.
      These amounts shall be established         in accordance with the procedure
       laid   down   in  Article 16.    The   implementing    rules   which     may  be
      necessary pursuant to this subparagraph shall be adopted by the same
      procedure    as the provisions     regarding   refunds on exports       to third
      countr ies.
                                      Art icle 9
Where, pursuant to a regulation on the common organization of a particular
market,    levies, charges or other measures are applied          to exports of an
agricultural product listed in Annex A, appropriate measures with regard to
certain goods the export of which         is likely to hinder achievement of the
objectives    in the agricultural    sector   in question, because of their high
content of the agricultural product concerned and the uses to which they
may be put, may be decided, in accordance with the procedure laid down in
Ar t ic le 16.
                                       Title 2
                                 GENERAL PROVISIONS
                                     Article 10
Where   there   is a danger   that a reduction      in the agricultural      component
applicable to imports of goods under a preferential agreement could disturb
the agricultural markets, the safeguard clauses applicable             to   imports of
the agricultural products concerned shall also apply to the goods listed in
Annex B.
For the purposes of assessing the disturbances in question, account shall
be taken of the characteristics of the goods actually            imported under the
preferential    arrangements compared with the characteristics           f the goods
traditionally imported prior to the introduction of these arrangements.
 ---pagebreak---                                      - 18 -
                                   Article 11
The quantity of agricultural     products covered by the regulations on the
common organization of markets which     is not subject     to levies or charges
having an equivalent effect to customs duties, for the purpose of or as a
result of exporting    such goods, shall    be determined     in accordance with
Regulation (EEC) No 1999/85.
The quantity of goods admitted under      inward processing arrangements and,
therefore, not subject    to the charge provided      for   in Article 2 for the
purpose of or as a result of exporting other goods shall be that actually
used in the manufacture of the goods.
                                   Article 12
1.   Table 1 of Annex B may be amended by the Council acting in accordance
     with the procedure laid down in Article 113 of the Treaty.
2.   Table 2 of Annex B or Annex C may be amended         in accordance with the
     procedure   laid down   in Article 16,    in order    to adapt   them   to the
     agreements concluded by the Community.
3.   The Commission    shall  adapt  the Annexes    to  this Regulation      to any
     amendments to the Combined Nomenclature in order to keep unchanged the
     arrangements in force prior to such amendments.
                                   Article 13
1.   The   list of  basic products and    the quantity     of each of    the basic
     products considered to have been used in the manufacture of the goods
     covered by this Regulation wherever      the composition of the goods in
     question has not been established shall be determined           in accordance
     with the procedure laid down in Article 16.
2.   Without prejudice to measures adopted by the Council under the common
     agricultural policy, certain agricultural products may be treated as
     basic   products,   in  accordance  with    the   procedure    laid   down  in
     Article 16, for the purposes of establishing terms for comparison of
     prices.
 ---pagebreak---                                           - 19 -
3.    The   characteristics     of   the   basic   products   necessary      in  order  to
      establish    the terms for comparison of prices shall            be determined    in
      accordance with the procedure laid down in Article 16.
                                        Article 14
1.   The    threshold    or  thresholds below which      the amounts established        in
     accordance with Article 3(2) shall be fixed at zero may be laid down
     or the non-application of the amounts established               in accordance with
     Article     3(2) may be made subject        to special   conditions      in order  to
     avoid    creating    artificial    trade  flows,   in both   cases     in accordance
     with the procedure laid down in Article 16, .
2.   A    threshold    below   which    Member States    may   refrain     from   applying
     amounts     to   be   granted   or   levied   pursuant   to   this   Regulation    in
     connection with a given economic transaction,              may be established      in
     accordance with the procedure laid down in Article 16, if the balance
     of these amounts is lower than that threshold.
                                        Article 15
The  Commission     shall   be  assisted    by a management     committee      hereinafter
referred to as "the Committee", composed of representatives of the Member
States and chaired by the representative of the Commission.
                                        Article 16
In cases where reference is made to the procedure defined               in this Article,
the following provisions shall apply.
The representative of the Commission shall submit to the Committee a draft
of the measures to be taken.          The Committee shall deliver         its opinion on
the draft within a time limit which the chairman may             lay down according to
the urgency of the matter.         The opinion shall be delivered by the majority
laid down    in Article 148(2) of the Treaty         in the case of decisions which
the Council     is required    to adopt on a proposal       from   the Commission.     The
votes of    the   representatives of      the Member    States within      the   Committee
Shall be weighted in the manner set out in that Article. The chairman shall
not vote.
 ---pagebreak---                                              - 20 -
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  be communicated      by   the   Commission    to   the   Council
forthwith.      In   that   event,   the   Commission    may   defer   application     of   the
measures which       it has decided      for up to one month        from the date of such
commun icat ion.
The Council, acting by a qualified majority, may take a different                     decision
within one month.
                                          Article 17
The Committee may examine any other matter referred to it by                   its chairman,
either   on   the    chairman's    own   initiative or     at   the   request   of   a  Member
State.
                                          Article 18
In accordance with the procedure laid down in Article 16:
      the   amounts      resulting   from    application    of   this   Regulation     may   be
     amended     when, during any        three-monthly period, a threshold           price   is
     altered      or   a   production    refund   or   aid   is   introduced,     amended    or
     abolished;
     measures may be taken to bring the provisions of this Regulation                      into
      line with any technical          amendments which may be made to the relevant
     regulations on agricultural           products.
                                          Article 19
Methods of qualitative and quantitative analysis of the goods and the other
technical    provisions      necessary     for  identifying     them   or  for    determining
then   composition shall        be adopted     in accordance with       the procedure      laid
down in Article 10 of Regulation (EEC) No 2658/87.
 ---pagebreak---                                             - 21
                                         Art icle 20
 The  Member    States    shall  communicate      to  the   Commission    the   information
 necessary    for     implementing    this     Regulation    on    imports,   exports   and
production    of    the goods and on       the administrative       implementing   measures
adopted.    The procedure for communication of this information shall be laid
down in accordance with the procedure laid down in Article 16.
                                         Article 21
Regulation (EEC) No 3033/80 is repealed on 1 January 1994.
References      to   Regulation     (EEC)     No   3033/80    in   any   other    Community
 instruments shall.be treated as references to this Régulât ion.
Regulation (EEC) No 3034/80 is repealed on the date of entry                 into force of
the regulation adopted pursuant to            Article 13(1).
                                         Article 22
 1.   This Regulation shall enter           into force on the seventh day         following
      that   of    its  publication     in   the   Official    Journal   of  the   European
      Commun i t i es.
       It shall apply with effect from 1 January 1994.
2.    The   application       of   this    Regulation     to    caseins   falling    within
      CN Code 3501 10 and to caseinates and other casein derivatives falling
      within CN Code 3501 90 90 shall be deferred until a further                  decision
      by the Counc i I.
      This   Regulation      shall   be    binding    in   its   entirety   and    directly
      applicable in all Member States.
Done at Brussels,                                                 For the Counci
                                                                  The President
 ---pagebreak---                                       - 22 -
                                    Annex A
List of  the agricultural    products   in respect of which price differences
between the world market and the Community market can be offset*
  CN code      Descr ipt ion
  0401         Milk and cream, not concentrated nor containing added sugar
               or other sweetening matter
  0402         Milk and cream, concentrated or containing added sugar or
               other sweetening matter
  ex 0403      Buttermilk, curdled milk and cream, yoghurt, képhir and
               other fermented or acidified milk and cream, whether or not
               concentrated or containing added sugar or other sweetening
               matter, not flavoured or containing added fruit, nuts or
               cocoa
  0404         Whey, whether or not concentrated or containing added sugar
               or other sweetening matter, not elsewhere specified or
                i ncIuded
  0405         Butter and other fats and oils derived from milk
  0709 90 60   Sweet corn, fresh or chilled
  0712 90 19   Dried sweet corn, whole, cut, sliced, broken or in powder,
               but not otherwise further prepared, other than hybrid sweet
               corn for sowing
  Chapter 10   Cereals1
  1701         Cane or beet sugar and chemically pure sucrose, in solid
               form
  1703         Molasses resulting from the extraction or refining of sugar
     Agricultural products taken into account when used in the unaltered
     state or after processing or considered to have been used for the
     manufacture of the goods listed in Table 1 of Annex B.
     Excluding spelt for sowing falling within CN code 1001 90 10, hybrid
     seed maize falling within CN codes 1005 10 11 to 1005 10 19, rice for
     sowing falling within CN code 1006 10 10 and hybrid sorghum for sowing
     falling within CN code 1007 00 10.
 ---pagebreak---                                                             - 23 -
                                                    V1/V/V7-.A    B
   Table 1
       CN code                                                 Dcsciiption
 ex 0403             Buttermilk, curdled milk and cream, yoghurt, képhir and 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, nuts or cocoa :
     0403 10 51     — Yoghurt, flavoured or containing added fruit or cocoa
     to
     0403 10 99
     0403 90 71     — Other, flavoured or containing added fruit or cocoa
     to
     0403 90 99
     0710 40 00     Sweet corn (uncooked or cooked by steaming or boiling in water), frozen
     071190 30      Sweet corn 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 1517             Margarine ; edible mixtures or preparations of animal or vegetable fats or oils or of frac-
                    tions of different fats or oils of this chapter, other than edible fats or oils or their frac-
                    tions of heading No 1516:
     1517 10 10    — Margarine, excluding liquid margarine containing more than 10 % but not more
                        than 1 5 % by weight of milk fats
     1517 90 10    — Other, containing more than 10 % but not more than 15 % by weight of milk fats
     1702 50 00    Chemically pure fructose
ex 1704            Sugar confectionery (including white chocolate), not containing cocoa ; excluding
                   liquorice extract containing more than 10 % by weight of sucrose but not containing
                   other added substances, falling within subheading No 1704 90 10
     1806          Chocolate and other food preparations containing cocoa
     1901          Malt extract; food preparations of flour, meal, starch or malt extract, not containing
                   cocoa powder or containing cocoa powder in a proportion by weight of less than 50 %,
                   not elsewhere specified or included; food preparations of goods of heading Nos 0401
                   to 0404, not containing cocoa powder or containing cocoa powder in a proportion by
                   weight of less than 10 %, not elsewhere specified or included
ex 1902            Pasta, whether or not cooked or otherwise prepared excluding stuffed pasta falling
                   within subheadings 1902 20 10 and 1902 20 30, couscous, whether or not prepared
    1903           Tapioca and substitutes therefor, prepared from starch in the form of flakes, grains,
                   pearls, sittings or similar forms
    1904           Prepared foods obtained by the swelling or roasting of cereals or cereal products (for
                   example corn flakes); cereals, other than maize (corn), in grain form, pre-cooked or
                   otherwise prepared
    1905           Bread, pastry, cakes, biscuits and other bakers'wares, whether or not containing cocoa,
                  communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing
                  wafers, rice paper and similar products
    7001 V0 30    Swrrt corn pirparrd or pirvivrd by vinrgai oi atclic atul
   2001 90 40     Yams, sweet potatoes and similar edible parts of plants containing 5 % or more by
                  weight of starch, prepared or preserved by vinegar or acetic acid
   2004 10 91   Potatoes in the form of flour, meal or flakes, prepared or preserved
                otherwise than by vinegar or acetic acid frozen
   2004 90 10     Sweet corn picparcd or preserved otherwise than by vinegar or acetic acid ; frozen
  2005 20 10
                Potatoes in the form of flour, meal or flakes, prepared or preserved
                otherwise than by vinegar or acetic acid unfrozen
   2005 80 00     Sweet corn (7.ea mays var. saccharata) prepared or preserved otherwise than by vinegar
                  or acetic acid ; not frozen
 ---pagebreak---                                                        - 24 -
   ex 2008 92 et          -Preparation of the Musli type based on unroasted cereal flakes
   ex 200S 99             - Other:
                             — Containing added s u g a r :
     2008 99 85    Sweet corn, otherwise prepared or preserved, not containing added spirit or added sugar
     2008 99 91    Yams, sweet potatoes and similar edible parts of plants containing 5 % or more by
                   weight of starch, otherwise prepared or preserved, not containing added spirit or added
                   sugar
    2101 10 99     Preparations with a basis of extracts, essences and concentrates of coffee or with a basis
                   of coffee, other than those of CN code 2101 10 91
    2101 20 90     Extracts, essences and concentrates of tea or mate and preparations with a basis of
                   these extracts, or with a basis of tea or maté, other than those of CN code 2101 20 10
                                  i
    210130 19     Roasted coffee substitutes excluding roasted chicory
    210130 99     Extracts, essences and concentrates of roasted coffee substitutes excluding those of
                  roasted chicory
    2102 1031     Bakers' yeast
    to
    2102 10 39
    2105          Ice cream and other edible ice, whether or not containing cocoa
ex 2106           Food preparations not elsewhere specified or included other than those falling within
                  subheadings 2106 10 10 and 2106 90 91 and other than flavoured or coloured sugar
                  syrups
    2202 90 91    Non-alcoholic beverages, not including fruit or vegetable juices of heading No 2009,
    2202 90 95   containing products of Nos 0401 to 0404 or obtained from products of heading Nos
    2202 90 99   0401 to 0404
    2905 43      Mannitol
    2905 44      D-Glucitol (sorbitol)
ex 3501          Caseins casemates and other casein derivatives
ex 3505 10       Dextrins and other modified starches, excluding esterified or etherified starches of
                 subheading 3505 10 50
   3505 20       Glues based on starches or on dextrins or other modified starches
   3809 10       Prepared glazings and prepared tlressings with a basis of amylaceous substances
   3823 60       Sorbitol other than of subheading 2905 44*
 ---pagebreak---                                            - 25 -
 Table 2
CNCode                                             Description
0505        Skins and other parts of birds, with their feathers or down, feathers and part of feathers
            (whether or not with trimmed edges) and down, not futher worked than cleaned,
             disinfected or treated for preservation; powder and waste of feathers or parts of
             feathers:
0505 10     - Feathers of a kind used for stuffing; down:
0505 10 90  — other than raw
0505 90     -Other
0509 00 90  Natural sponges of animan origin, other than raw
1212 20     Seaweeds and other algae
1302 12     Vegetable saps and extracts of liquorice
1302 13     Vegetable saps and extracts of hops
1302 14     Vegetable saps and extracts of pyrethrum or of the roots of plants containing rotenone
1302 19 30  Intermixtures of vegetable extracts, for the manufacture of beverages or of food
and 1302 19  preparations; other vegetable saps and extracts, medicinal
91
ex 1302 20  Pectates
1302 31     Agar-agar
1302 32 10  Mucilages and thickeners, whether or not modified, denved from locust beans or locust
             bean seeds
1505        Wool grease and fatty substances derived therefrom (including lanolin)
1506        Other animal fats and oils and their fractions, whether or not refined, but not chemically
             modified
1515 60     Jojoba oil and its fractions, whether or not refined, but not chemically modified
1516 20 10  Hydrogenated castor oil, so called 'opal-wax'
1517 90 93  Edible mixtures or preparations of a kind used as mould release preparations
ex 1518     Animal or vegetable fats and oils and their fractions, boiled, oxidised, dehydrated,
             sulphurised, blown, polymerised by heat vacuum or in inert gas or otherwise chemically
             modified, excluding those of heading No 1516; inedible mixtures or preparations of
             animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter,
             not elsewhere specified or including; excluding the oils of CN code 1518 00 31 and
              1518 00 39
1519        Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols
1520        Glycerol (glycerine), whether or not pure; glycerol waters and glycerol lyes
1521        Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti,
             whether or not refined or coloured
1522 00 10  Degras
1702 90 10  Chemically pure maltose
1704 90 10  Liquorice extract containing more than 10% by weight of sucrose but not containing
             other added substances
 ---pagebreak---                                          - 26 -
1803       Cocoa paste, whether or not defatted
1804       Cocoa butter, fat and oil
1805       Cocoa powder, not containing added sugar or other sweetening matter
2001 90 60 Palm hearts.prepared or preserved by vinegar or acetic acid
2008       Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or
            not containing added sugar or other sweetening matter or spirit, not elsewhere specified
            or included:
2008 11 10 - Peanut butter
2008 91    - Palm hearts
ex 2101 10 Extracts, essences and concentrates, of coffee, and preparations with a basis of these
            extracts, essences or concentrates or with a basis of coffee, other than preparations of
            CN code 2101 10 99
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:
2101 20 10 - containing no milkfats, milk proteins, sucrose, isoglucose, glucose or starch or
            containing less than 1,5% milkfat, 2,5% milk proteins, 5% sucrose or isoglucose, 5%
            glucose or starch
2101 30 11 Roasted chicory
2101 30 91 Extracts, essences and concentrates of roasted chicory
2101 10    Active yeasts:
2102 10 10 - Culture yeast
2102 10 90 - other, excluding bakers' yeast
2102 20    Inactive yeasts; other single-cell micro-organisms, dead
2102 30    Prepared baking powders
2103       Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard
            flour and meal and prepared mustard
2104       Soups and broths and preparations therefor; homogenised composite food preparations
2106       Food preparations not elsewhere specified or included:
2106 10    - Protein concentrates and textured protein substances:
2106 10 10 - containing no milkfats, milk proteins, sucrose, isoglucose, glucose or starch or
            containing less than 1,5 % milkfat, 2,5 % milk proteins, 5 % sucrose or isoglucose, 5 %
            glucose or starch
2106 90    - other than cheese fondues or flavoured or coloured sugar syrups:
2106 90 91 - containing no milkfats, milk proteins, sucrose, isoglucose, glucose or starch or
            containing less than 1,5% milkfat, 2,5% milk proteins, 5% sucrose or isoglucose, 5%
            glucose or starch
 ---pagebreak---                                          - 27 -
2201 10    Mineral waters and aerated waters, not containing added sugar or other sweetening
            matter nor flavoured
2202 10    Waters, including mineral waters and aerated waters, containing added sugar or other
           sweetening matter or flavoured
2202 90 10 other non-alcoholic beverages, not including fruit or vegetable juices of heading No
           2009, not containing products of heading n°s 0401 to 0404 or fat obtained from
            products of heading N)s 0401 to 0404
2203       Beer made from malt
2205       Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances
ex 2207    Undenatured ethyl alcohol of an alcoholic strengh by volume of 80% vol or higher;
            ethyl alcohol and other spirits, denaturated, of any strength:
           - other than obtained from agricultural products listed in Annex II to the EEC Treaty
ex 2208    Undenatured ethyl alcohol of an alcoholic strength by volume of less tan 80% vol, not
            obtained from agricultural products listed in Annex II to the EEC Treaty; spirits,
            liqueurs and other spirituous beverages; compound alcoholic preparations of a kind used
            for the manufacture of beverages
2402       Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
2403       Other manufactured tobacco and manufactured tobacco substitutes; 'homogenized' or
            'reconstituted* tobacco; tobacco extracts and essences
 ---pagebreak---                                      - 28 -
                                    Annex C
           Processed agricultural products refered to in Article 1 (2)
   CN code                                   Description
0901        Coffee, whether or not roasted or decaffeinated; coffee husks and skins;
            coffee substitutes containing coffee in any proportion
0902        Tea, whether or not flavoured
2007        Jams, fruit jellies, marmelades, fruit or nut purée and fruit or nut pastes,
            being cooked preparations, whether or not containing added sugar or other
            sweetening matter
2209        Vinegar and substitutes for vinegar obtained from acetic acid
 ---pagebreak---                                                - 29 -
                                                                      ISSN 0254-1475
                                                                COM (93) 135 final
                                                       DOCUMENTS
EN                                                                               03
                                 Catalogue number : CB-CO-93-160-EN-C
                                                              ISBN 92-77-54357-4
Office for Official Publications of the European Gornmunities
L-2985 Luxembourg