CELEX: 51979PC0428
Language: en
Date: 1979-07-26
Title: Proposal for a COUNCIL REGULATION (EEC) laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 428
Vol. 1979/0151
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(79 ) 428 final .
                                                    Brussels . 26 July 1979
                              Proposal for a
                         COUNCIL REGULATION ( EEC )
laying down the trade arrangements applicable to certain goods resulting
              from the processing of agricultural products
              ( submitted to the Council by the Commission )
                                         V ]
                                /. v < .V "
COM ( 79 ) 428 final .
 ---pagebreak---                             EXPLANATORY MEMORANDUM
Regulation (EEC) NO . 1059/ 69 laid down the trade arrangements applying
to certain goods ( e.g. confectionery ,, chocolate , "biscuits , pasta)
manufactured from certain "basic agricultural products ( e.g. cereals ,
 sugar , milk products ).
These arrangements provide in particular that , on imports of these goods ,
a charge must "be levied consisting of a fixed component for the protection
 of the processing industry and a variable component to offset any differances
"between the prices of the "basic agricultural products in the Community
 and on the world market .
Regulation 1059/69 ^-as "been amended several times . For reasons of
 clarity the time has come to republish it , with the inclusion of these
 amendments . At the same time , it is proposed to introduce eggs as "basic
 products , and to carry out a general revision of the text .
 Such is the aim of this regulation.
 ---pagebreak---                                  Proposal for a
                 REGULATION (EEC )            OF THE COUNCIL
       laying down the trade arrangements applicable to certain goods
           resulting from the processing of agricultural products
THE COUNCIL OP THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 28, 92 to 94, 111 to 113, 227 and 235 thereof .
Having regard to the proposal from the Commission }
Having regard to the opinion of the European Parliament*^;
                                               2
Whereas Council Regulation ( EEC ) No 1059/ 69   laid down the trade arrangements
for certain goods resulting from the processing of agricultural products ;
whereas that Regulation provides in particular that , on imports of such
goods , a charge must he levied 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 world market ;
Whereas the provisions of Regulation (EEC) NO 1059/69 have "been amended
several times ; whereas for reasons of clarity a new version of that
Regulation should be published ;
Whereas , in accordance with Article 3(l ) of Council Regulation (EEC) No. 97/69
of 16 January 1969 on measures to "be taken for uniform application of the nomen­
clature of the Common Customs Tariff3 , as amended by Regulation (EEC) No. 280/77^t
the provisions required for applying the nomenclature of the Common Customs
Tariff to the classification of goods are adopted in accordance with the pro­
cedure laid down in Article 3(2) and ( 3 ) of that Regulation; whereas methods of
qualitative and quantitative analysis of goods and other, technical provisions
necessary for classifying goods to which the trade arrangements in
question apply can therefore be adopted in accordance with that procedure ;
  0J No C
 20J No L 141 , 12.6.1969 , p. 1
 30J No L 14, 21.1.1969 , P. 1
40J No L 40 , 11.2.1977 » P. 1
 ---pagebreak--- Whereas , in accordance with Article 11 ( l ) of Council Regulation (EEC)
No 804/68^ of 27 June 1968 on the common organisation of the market in
milk and milk products, as amended "by Regulation (EEC) NO 1761/7^, aid
is granted for skimmed milk produced within the Community and processed
into casein if such milk and the casein manufactured from it satisfy certain
conditions laid down in Article 1 of Council Regulation (EEC) No 987/68^;
whereas ,, therefore , the application of this Regulation to goods falling
within subheadings Nos . 35.01 A and 35.01 C of the Common Customs Tariff         -
should be deferred ;                                               –         - –
HAS ADOPTED THIS REGULATION:
                                  TITLE 1
                                                              »
                             GENERAL PROVISIONS
                                 Article 1       ■ '
1 . This Regulation determines the trade arrangements applicable to certain
    goods not covered "by Annex II to the Treaty :
    ( a) in the manufacture of which one or more of the "basio products listed
          in Article 2 have "been used , either unprocessed or after processing ;
           or
    (h) which , in accordance with Article 3, . are considered to "be manufactured
          from products referred to under ( a), or
    ( c ) which are classified' under the same heading or subheading of the
          CCT as goods mentioned under a) or la)*
2 . The goods referred to in paragraph 1 (hereinafter called "goods") are
    listed in the Annex to this Regulation.
 -ÒJ No L 148 , 28.6.1968 , p. 13
 %J No L 204, 28.7.1978 , p. 6
 70J No L 169 , 18.7.1968 , p. 6
 ---pagebreak---                                      Article 2
  The following shall "be considered to be "basic products :
                     CCT
                   heading         Description of the basic
                     No                   product
                  Chapter 10   Cereals
                    04.02      Milk and cream , preserved ,
                               concentrated or sweetened
                    04.03      Butter
                    04.05      Bird 's eggs and egg yolks ,
                               fresh , dried or otherwise
                               preserved , sweetened or not
                    17.01      Beet sugar and cane sugar in
                               solid form
                    17.03      Molasses
                                     Article 3
 For the purposes of this Regulation:
  ( a) goods made from potato starch (heading No, 11.08 A IV ), from the starches
         of roots and tubers falling within heading No . 07.06 (heading No. 11»08 A V )
        and from flour and meal falling within heading No « 11.04 C of the Common
        Customs Tariff shall "be considered to be manufactured from maize ;
  ( b ) goods made from fresh milk , not concentrated or sweetened having a
        milkfat content not exceeding 0.1 per cent , shall be considered
        to be made from milk powder complying with the definition of the Group
        2 pilot product contained in Annex I to Council Regulation (EEC)
        No 823/68 of 28 June 1968 determining the groups of products and the
                                                                              8
        special provisions for calculating levies on milk and milk products ,
                                                        9
        as last amended by Regulation (EEC) No IOOO/78 ;        "
  ( c ) goods made from milk or cream , fresh , not concentrated or sweetened ,
        having a milk fat content exceeding 0.1$ shall be considered to be
        made from milk powder complying with the definition of the Group 3
        pilot product contained in Annex I to Regulations (EEC) NO 823/68 .
  OJ No L 151 , 30.6.1968 , p . 3
9 0J No L 130 , 18.5.1978 , p. 3
 ---pagebreak---                                         - 4 -
                                      Article 4
 1 . The Council , acting "by a qualified majority on a proposal from the
       Commission , shall determine in respect of all goods :
       ( a) the type and characteristics of the "basic products to "be used when
             calculating the variable component referred to in Article 5 ,
       (b) the quantity of each of these "basic products considered to have
            "been used in their manufacture ,
      account "being taken of the Common Customs Tariff classification and any
      changes which may "be made in accordance with the relevant rules in the
      Treaty .
2 . Methods of qualitative and quantitative analysis of the goods , and
      other technical provisions necessary for identifying them or for
      determining their composition , shall "be adopted in accordance with the
    ■ procedure laid down in Article 3(2) and ( 3 ) of Regulation (EEC) NO 97/69.
                                                                 »
                                     TITLE II
                                 SYSTEM OF TRADE
                                     Article 5
1 . On importation into the Community , all goods shall "be subject to the
      relevant charge in the Common Customs Tariff consisting of :
      ( a) an ad valorem duty , which is the fixed component :
      ("b ) a variable component .
      The variable component shall "be determined in accordance with Article 6
      and 7 and is intended to reflect , for the quantities of "basic products
      considered to have "been used in the manufacture of the goods , the
      difference "between the prices of those products in the Community and the
      prices of imports of those products from third countries , when the total
      cost of those quantities of basic products is higher in . the Community.
2 . Subject to Article 14 ( 3 ) and ( 4)1 "the levying of any customs duty ot
      charge having equivalent effect other than the charge provided for in
      paragraph 1 shall be prohibited.
 ---pagebreak---                                           - 5 -
                                       Article 6
1 . The Commission shall fix "the amount of the variable component for all
     goods for three-monthly periods "beginning on 1 February , 1 May ,. 1 August
     and 1 November .
2 . The variable component shall "be calculated on the basis of the difference ,
     for the quantity of each "basic product to "be taken into consideration ,
     "between :
      ( a) the average threshold price for each of the three months of the
            quarter for which the variable component is fixed ; and
      ("b ) the average c.i.f. price ( excluding special c.i.f . prices ) or the
            free–at–frontier price used when fixing the levies on each of the
            "basic products in question , calculated for a period consisting of
            the first ten days of the month preceding the quarter for which the
            variable component is fixed and the two months immediately preceding .
    However , for eggs , the variable component shall be calculated in
    accordance with' the rules applied for calculating the levies charged
     on those products imported as such .
3 . Ifnen, pursuant to the regulations on the common organisation of markets ,
    a production refund or aid is applicable in all Member States to basic
    products or assimilated products within the meaning of Article 3 the
     amount of the variable component shall be calculated on the basis of
    the price resulting from the application of these measures instead of the
    average threshold price referred to in paragraph 2(a).
    The Council , acting by a qualified majority on a proposal from the
    Commission , shall determine which goods are subject to the provisions
     of the preceding subparagraph .
4 . The amount of the variable component applicable to goods obtained by
    processing several basic products shall be the total incidence of the
    price differences recorded for each of the basic . products in accordance
    with the rules laid down in paragraph 2 and 3 .
5 . The variable component shall be fixed at zero when the amount thereof is
    less than 1 EUC per 100 kilogrammes of goods .
 ---pagebreak---                                    Article 7
If one of the factors "to be used for calculating "the variable component
has not "been determined lay the tenth of the month preceding the quarter
for which this variable component must "be fixed , the Commission shall
calculate the variable component on the "basis of the factor used for
calculating the variable component for the current quart er instead of
the factor which is not available .
When the factor which was not available is determined , the Commission ,
may fix corrected variable components if , by reason of the application of
paragraph 1 , trade is seriously disturbed or is in danger of being
seriously disturbed .
                                    Article 8
Where the Common Customs Tariff lays down        a maximum rate of duty , the
charge provided for in Article 5 may not exceed this maximum .
Where the maximum rate of duty referred to in the preceding subparagraph
may be charged only under specific conditions , these conditions shall be
determined in accordance with the procedure laid down in Article 3 ( 2 )
and ( 3 ) of Regulation (EEC) No 97/69*
Where the maximum rate of duty referred to in paragraph 1 includes - an
additional duty on various kinds of sugar , expressed as sucrose ( ads),
 or on flour ( adf), such additional duty shall be calculated on the
basis of :
 ( a) the difference , calculated in accordance with the rules laid down
      in Articles 6 and 7 » between the average theshold price and the
      average c.i.f. price ( excluding special c.i.f. prices) for the
      vhite sugar or cereal flour to be used , pursuant to Article 4 (l ) ( a-),
      for calculating the variable . component applicable to the goods in
      question ; •
 (b) the quantity of white sugar or the quantity of flour corresponding
      to the quantity of the cereals referred to in ( a), fixed pursuant to
      Article 4 ( l ) (b ) , for calculating the variable component applicable
      to the goods in question.
 ---pagebreak---                                        - 7 -
3 . However , at "the request of the importer and "by way of derogation from
    paragraph 2 (b) , the additional duty shall "be calculated on the basis
    of the quantity of sugar ( expressed as sucrose) or the quantity of
    flour corresponding to the content "by weight of starch in the imported
    goods . To that end , the importer shall declare these quantities to
    the competent authorities .
4 . Each quarter the Commission shall determine :
    ( a) the amount of the additional duties , calculated in accordance with
         paragraph 2 ;
    (b) the price differences referred to in paragraph 2(a).
5 . For the purposes of paragraphs 2 , 3 and 4 » 100 kg of flour shall be
    considered to be equivalent to 63.6 kg of starch or 140 kg of cereals .
                                  Article 9
                                                              *
1 . The amount of the refund on agricultural products covered by th6
    regulations on the common organisation of markets , and exported in the
    form of goods , shall be fixed in accordance with those regulations .
2 . The quantity of agricultural products covered by the regulations on the
    common organisation of markets which Member States admit under inward
    processing and therefore do not make subject to levies or charges having an
    effect equivalent to customs duties , for the purpose of or as a result of
    exporting such goods , shall be determined in accordance with the rules
    governing inward processing.
3 . The quantity of goods which Member States admit tinder inward processing
    and therefore do not make subject to the charge provided for in Article 5,
    for the purpose of or as a result of exporting other goods , shall be that
    actually used in the manufacture of the latter.
                                  Article 10
Where pursant to a regulation on the common organization of a particular
market , levies , charges or other measures are applied to exports of a
basic product , the Commission may decide to apply appropriate measures
with regard to certain goods the exportation of which , because of their
high content of that basic product and the uses to which they may be put , is
likely to hinder the achievement of the aims of the agricultural sector
in question. .                       .
 ---pagebreak--- The Commission shall adopt such measures after consulting the Member
States and talcing due account of the specific interests of the processing
industries .
Any measures adopted "by the Commission shall "be communicated without delay
to the Council , The Council , acting "by a qualified majority, may take a
different decision within one month of the date of such communication,
                                TITLE III
                             PINAL PROVISIONS
                                Article 11
Goods manufactured or obtained from products which do not fall within
either of the categories mentioned in Article 9 ( 2) of the Treaty shall
                                                            A
                                                                               '
not he admitted to free circulation within the Community.
                                Article 12
Member States shall communicate to the Commission the information      necessary
for implementing this Regulation as regards importation , exportation and
the production of goods .   The procedure for the communication of this
information shall "be fixed "by the Commission after consulting the Member
States .
                                Article 13
The Council , acting unanimously on a proposal from the Commission , may
 adopt special provisions governing trade in goods "between Member States
 and certain States , countries and territories , under a special system .
                                Article 14
The Commission may adjust the description of the goods and the references
to the Common Customs Tariff headings and subheadings in this Regulation }
 if such adjustments are due to amendments to the Common Customs Tariff
 nomenclature .
 ---pagebreak---                                     - 9 -
                                  Article 15
1 . The Council , acting by a qualified majority on a proposal from the
    Commission , may take measures in respect of any goods to bring the
    provisions of this Regulation into line with any technical, amendments
    which may be made to the relevant regulations on agricultural
    products ,
2 , Where , during any quarter , a threshold price is altered or a production
    refund or aid is introduced , amended or abolished , the Council , acting
    by a qualified majority on a proposal from the Commission , may decide
    v;hether to correct the variable component and shall adopt the measures
    necessary to that end ,
3 . The Council , acting by a qualified majority on a proposal from the
    Commission , may take appropriate measures to deal with the possible
    effect on trade between Member States and with third countries of special
    measures which may be adopted under the common organisation of agricultural
    markets as regards the prices of certain basic products ,
4 , The Council , acting unanimously on a proposal from the Commission ,
    may take appropriate measures to deal with a special situation which
    may arise in respect of certain goods .
    The period of validity of these provisions shall not , however , exceed
    six months .
                                  Article 16
1 . From 1 January 1980 Council Regulation ( EEC ) No 1059/ 69 is hereby
    repealed .
2 . References in Community instruments to Regulation ( EEC ) No 1059/ 69 or to
    any Articles thereof shall be treated as references to this Regulation or
    to the corresponding Articles thereof .
 ---pagebreak---                               Article 17
1 . This Regulation shall enter into force on the day of its publication in
    the Official Journal of the European Communities .
2 . The arrangements laid down by this Regulation shall apply with effect
    from 1 January 1980 . However , its application to caseins falling
    within subheading No 35.01 A of the Common Customs Tariff and to
    caseinates and other casein derivatives falling within subheading
    No 35.01 C of the Common Customs Tariff shall be deferred until the
    Council has determined the provisions for such application .
Done at Brussels ,
                                        For the Counci I
                                         The President
 ---pagebreak---                                         - 11 -
                                         ANNEX
                                           M"M– «MM  «MMMMM      MMMIMMMMMM«MMMMMMlMMMl«
CCT
Heading                               Description of goods
No
ex 17.04    Sugar confectionery , not containing cocoa , except liquorice
            extracts containing more than 10$ by weight of sucrose hut
            not containing other added substances
   18.06    Chocolate and other food preparations containing cocoa
   19.02    Halt extract ; preparations of flour , meal , starch or malt
            extract , of a kind used as infant food or for dietetic or ■
            culinary purposes containing less than 5Qffo by weight of cocoa
   19.03    Macaroni , spaghetti and similar products
   19.04    Tapioca and sago ; tapioca and sago substitutes obtained from
            potato or other starches
   19.05    Prepared foods obtained by the swelling or roasting of
            cereals or cereal products ( puffed rice , corn flakes and
            similar products )
                                                                   *
   19.07    Bread , ships' biscuits and other ordinary bakers' wares not
            containing sugar , honey , eggs fats , cheese or fruit ;
            communion wafers , cachets of a kind suitable for
            pharmaceutical use , sealing wafers , rice paper and similar
            product s
   19.08    Pastry , biscuits , cakes and other fine bakers * wares , whether
            or not containing cocoa in any proportion
ex 21.02    Roasted coffee substitutes , and extracts , essences and
            concentrates thereof other than roasted chicory and extracts ,
            essences and concentrates thereof
ex  21.06   Bakers' yeast
ex  21.07   Food preparations not elsewhere specified or included
            containing sugar , milk products , cereals or products based
            on cereals , or eggs
ex  22.02   Lemonade , flavoured spa waters and flavoured aerated waters ,
            and other non-alcoholic beverages , not including fruit and
            vegetable juices falling within heading No 20.07
            – containing milk or milkfats
ex  29.04   D-mannit ol (mannit ol ), D–glucit ol ( s orbit ol )
ex  35.01   Casein , caseinates and other casein derivatives
    35.05   Dextrins and dextrin glues ; soluble or roasted starches ,
            starch glues
ex  38.12   Prepared glazings and prepared dressings with a basis of
            amylaceous substances
    38.19 Τ D-glucitol ( sorbitol ) other than that falling within subheading
            29.04 C III                                                                  I