CELEX: 51974PC0212
Language: en
Date: 1974-02-21
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL amending Article 4(a) of Regulation (EEC) No 974/71 as regards the monetary compensatory amounts applicable to processed agricultural products (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
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COM (74) 212
Vol. 1974/0042
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(74)212 final
                                                          Brussels . 21 February 1974
                                PROPOSAL FOR A
                       REGULATION (EEC ) OF THE COUNCIL
                     V
           amending Article 4(a) of Regulation (EEC) No 974/ 71 as
             regards the monetary compensatory amounts applicable
                      to processed agricultural products
                ( submitted to the Council by the Commission)
   COM(74) 212 final
 ---pagebreak---                                                             VI/359/74-E
                               EXPLANATORY MEMORANDUM
  There arc a certain number of products which the import charge is made up
  of two components :
     A variable component intended to compensate for differences in the
     prices of basic products in the Community and in third countries .
     A fixed component for the protection of the Community processing
     industry .                                                       -
; (it should be recalled, that in general , the fixed component for the new Member
  States is not the same as the fixed component for the Community as ordinally
  constituted ; in this case , alignment is to be effected under article 61 of
  tho Act annexed to the Treaty of Accession ; the fixed component applies also
  in intra-community trade with the new Member States ).
  A problem arises with regard to this fixed component in applying Article 4(a)
  of Regulation (EEC ) No 974/71 - For tho purposes of the comparison to be made
  for the. application of this provision, the text speaks of thie compensatory amount
- and the import charge . This , strictly speaking, means the total charge ,
  including the fixed component . 1 -         '
  The result of this is that if, as for wheat for example , the application of
  Article 4(a) gives a. zero compensatory amount , a compensatory amount will
  continue to be granted on importation of products processed from wheat , since a
  fixed component is still -applicable ; the compensatory amount will thus be
  equal to the fixed components . This result does not appear very logical : .
     in trade with third countries , the protection of the Community      "
     processing industry will be noi>-cxistenty since the fixed component
     collected and the compensatory amount granted will cancel each other
     out ;
     in trade between Member States , where the fixed component does not
     apply t the compensatory amount will continue to apply , being the same
     for all kinds of trade , with resultant distortions of competition between
     the Member States concerned .
 ---pagebreak---                                                              νΐ/359/74-3
                                                               l«i * .• .
                                                             • 1 *
                                   - 2 -
It is therefore proposed that Article 4(a)(2 ) of Regulation (EEC ) No 974/71
should be amended so as to enable the results mentioned above to be avoided .
Prom the financial point of vievr it should be noted that this proposal applies
only to compensatory amounts covered by Article 4(a) of Regulation (EEC ) No
974/71 1 that is to say those applicable in Member States with depreciated
currencies .  Since it is proposed that , for the products concerned , the
compensatory amounts referred to in Article 4 (a )(2 ) should be brought down
to the level of the variable compononts of charge , the result can only be a
decrease in compensatory amounts where this ceiling enters into force .
In trade x*ith third countries , in view of the provisions of Article 4 (a )(1 )
(deduction of compensatory amounts from the import charge or export refund , as
the case may be ), this decrease will be reflected by an increase in import
charges and export refunds .  For trade between Member States this decrease
will be shown directly in the compensatory amounts charged or granted (Article
792 of the Budget of the European Communities) .
In general , the financial consequences of the rules under Regulation 974/71
depend on the rates at which currencies are floating at the level of prices .
These two dominant factors also determine whether the ceiling enters into force .
Accordingly , the financial consequences of the proposed measure , which in any
case are difficult to calculate , will bo very, limited by comparison with the
possible financial consequence of he dominant factors mentioned above .
There should however be a slight increase in revenue (own resources ). With
regard to expenditure (refunds and interventions ), there should be a slight
decrease for Member States which are net importers ; on the other hand , in
Member States which are net exporters , there could be a slight increase in these
items of expenditure . In view of these varying tendencies , the financial
consequences of this proposal should not of themselves necessitate any amendment
to the amount entered in the 1974 budget and the •oluriannual forecasts .
 ---pagebreak---                             PROPOSAL FOR A
                   REGULATION (ESC)  OP THE COUNCIL
               amending Article 4(a) of Regulation (EEC ) Ho 974/71 as
               regards the monetary compensatory amounts applicable to
               processed agricultural products .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , .
and in particular Articles 23 , 43 and 235 thereof ;
Having regard to the proposal from the Commission ;
Having regard to the Opinion of the European Parliament ;
Whereas Article 4(a) of Regulation (EEC ) NO 974/71 of the Council of 12 May
1971 °N 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 , provides that the monetary compensatory amounts applicable in
Member States with depreciated currencies are to be deducted from the import
charges and from refunds and may not be higher than the charge on products
imported from third countries ;
Whereas there are a certain number of products in respect of which the import
charge is made up of several components ; whereas in view of the economic
purpose of certain of these components it may not be appropriate to take them
into r-ccount for the purposes of the provisions in question ;
Whereas an addition should therefore be made to the provisions of
Article 4 (a )(2 ) to specify the manner in xtfhich it is to apply in the cases
mentioned above ,
HAS ADOPTED THIS REGULATION :
 ---pagebreak---                                      - 2 -
                                   Article 1
 The following subparagraph is added to Article 4(a ) to Regulation (EEC ) No
974/71 ;
"Where the import charge is made up of several components , it racy be provided ,
 in accordance with the procedure laid down by Article 6 , that only the
component intended to conpensate for the difference in prices of basic products
•shall be talcen into account for the purposes of the third subparagraph".
                                   Article 2
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in all
Member States .:
Done at Brussels ,                                         For the Council ,
                                                           The President .