CELEX: 51980PC0795
Language: en
Date: 1980-12-05
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) laying down general rules for granting special refunds on certain spirituous beverages obtained from cereals and the criteria for fixing the amount of such refunds, and amending Regulation (EEC) No ...../80 concerning certain products not covered by Annex II to the Treaty (presented by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
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DOCUMENTS "COM"
COM (80) 795
Vol. 1980/0252
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                            COM(80)795 final
                                                            Brussels , 5th December 1980
                    PROPOSAL FOR A COUNCIL REGULATION ( EEC )
       laying down general rules for granting special refunds on certain
        spirituous beverages obtained from cereals and the criteria for
fixing the amount of such refunds , and amending Regulation ( EEC ) No                   / 80
      concerning certain products not covered by Annex II to the Treaty
                 ( presented by the Commission to the Council )
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C0M(80 ) 795 final
 ---pagebreak---                           EXPLANATORY MEMORANDUM
   As provided for in Protocol No 19 "to the Act or Aooession these measures fall
   within the framework' of a general Community policy for alcohol . They are
  "based on Article 16 of Regulation (EEC ) No 2727/75 pn the common organization of'
  the market in cereals .
  The measures Consist of refunds to "be granted in a special form so as to take
  account of the difficulty of applying the normal rules on export refunds to
. "beverages for which long ageing is compulsory .              '                     . •
/     **'        "  . ·              '  ' '
  The proposal therefore provides for the grant of refunds from the time the
  Community raw materials are warehoused and equivalent quantities of
  spirituous "beverages are exported .                                        -
  It is also, proposed that the Regulation concerning products not covered "by
  Annex II to the Treaty "be. amended .     -    -            ' .
  A detailed financial statement, is attached to show the amounts corresponding to
  cereals warehoused from 1 August 1973 *     Provision . is also made for payment of
  the amounts due under this heading "by instalments .
   1 0j No L2Ô1 , 1.11.1975 , p. 1 .
 ---pagebreak---                     '   PROPOSAL FOR        •;       • • •
              '• COUNCIL REGULATION ( SEC )       _;       ; , '.
          laying down general rules for granting special refunds on > certain
          spirituous "beverages obtained . from cerelas and the criteria for'
          fixing the amount of such refunds , and amending Regulation ( EEC ) No' / 8Q
          :    concerning certain products not covered "by Annex II to the Treaty
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,              •          '
Having regard, to the Treaty establishing the European Economic Community,
Having regard to Council Regulation "No. 2727/75 of 29 October 1975 on the
common organization of the market in cereals , as last amended "by Regulation
(EEC ) NO 1876/80 , and in particular Article l6(4a) and ( 5 ) thereof ,
Having regard to the proposal from the Commission ,             -
Whereas Article , 16 (4a) of Regulation (EEC ) No 2727/75 provides that export
refunds may "be replaced "by special refunds to the extent - necessary to enable
the production and , in particular , the ageing characteristics of certain
spirituous beverages obtained ' from cereals to be taken into account ;   whereas
it is necessary to provide for a special refund for certain spirituous beverages -
for which a period of ageing of. three years is an obligatory part of the     1
manufacturing process :
Whereas there must be established a relationship between the cereals used and
the spirituous beverages exported during the same period ;
 1 OJ No L 281 , 1.11.1975 , P. 1
2 OJ No L I84, I7.7.I98O , p , 1 .
 ---pagebreak--- Whereas , in cases where the quantity of spirituous "beverages exported
within the period laid down was lower than the quantity in respect of which
the refund was paid , provision, should he made for reimbursement to the
competent authorities of an amount reflecting the quantities not exported and
of interest thereupon ; whereas , however , in order to take account of any
sizeable growth of such exports , arrangements , should he made for this provision
to he implemented with some flexibility ;
Whereas in order to ensure that 'refunds are paid as soon as the raw materials
for the production of alcohol are employed , a' control system providing for the
lodging of a security must he established ;                                        <
Whereas account should be taken , when the amount of the special refund is being
fixed , of the relationship between .the world prices and the Community prices for
cereals and of the average level of protection granted to cereals ;
Whereas the operation referred to in this Regulation ends , in principle , on
export of the spirituous beverages ;   whereas , however , it should be made clear
that the said operation is also completed when the product is placed in a
customs warehouse , in a free zone or under the Community transit system provided
for in Council Regulation (EEC ) No 222/77"^ as amended by Regulation (EEC ) -No.
whereas provision should be made , in cases where the goods are returned into
Community territory , for the provisions of Article 2 of Council Regulation
(EEC ) No 754/76^ to apply if the special conditions are fulfilled ;
3 OJ No L 38 , 9.2.1977 , P. 1
4 OJ No L
5 OJ No L 89 , 2.4.1976 , p. 1
 ---pagebreak---                                     - 3 -
 Whereas , prior to 1 January 19^1 ? Community cereals were placed under control
 and were used in the manufacture of spirituous "beverages for export ;  whereas
 suitable measures to deal with them must accordingly "be taken ;
Whereas , on the "basis of a minimum period of ageing of three years , Community
 cereals placed under control after 1 August 1973 cannot have given rise to
exports of spirituous "beverages until after 1 August 1976 ;
Whereas , moreover , on account of the effect on the "budget of the amount to
"be paid in this respect , provision should "be made for the phasing of payments
in respect of products exported during the period between 1 August 1973 and
31 December I98O ;
Whereas , in view of the widening of the scope of export refunds in this
 sector , certain consequential amendments should be made to Council Regulation
 ( SEC ) No     /80 laying down general rules for granting export refunds
 on certain agricultural products exported in the form of goods not covered
by Annex IT. to the Treaty* and the criteria for fixing the amount of such
refunds^ ,
HAS ADOPTED THIS REGULATION :
    OJ No L
 ---pagebreak---                                      _ 4 -
                                   Arti-cle 1
      The special refunds referred "to in Article 16 ( 4a ) of Regulation ( EEC ) Ho 2727/ 75
      may be granted for Community cereals used in the manufacture of spirituous beverages
      where a minimum period of ageing of three years is a part of the manufacturing
      process .
      The export refund's referred to in Article l6(l) of Regulation (EEC ) No 2727/75
      may not be granted for these products .
      The spirituous beverages concerned shall be determined according to the procedure ~
      provided for in Article 26 of the Regulation referred to above .
                                   ■ Article 2
                                                                                            \
1 . The special refund shall be paid -when the cereals are placed under control ,
      providing that within a period      to be fixed an equivalent quantity of spirituous
      beverage is exported .    When this quantity is £L xed allowance shall be made for
      manufacturing losses .    Cereals which are in one of the situations referred to
      in Article 9 ( 2 ) of the Treaty and which are to be used for the manufacture of
      the spirituous beverages referred to in Article 1 , shall be regarded as
    . '•placed under control " when placed under customs control or under an
      admini strative control -providing equivalent guarantees .
                                         ».
2 . If a smaller quantity is exported during the period referred to in paragraph 1 ,
      the - person in receipt of the refund shall pay back to the competent authority a
      proportion of the refund corresponding to the quantity not exported , with interest ,
                                            standard ....
      calculated on the . basis of an average ^ period for the manufacturing process .
      Such repayment shall be deferred , however , if the person concerned undertakes to
      export , during a period to be laid down , a quantity greater than that laid down
      pursuant to paragraph 1 ;   repayment shall not be due if the . person concerned
      complies with this particular undertaking .              '   . , . "
                          y
 ---pagebreak---                                            - 5 -
3 . Exporting a greater quantity during the period, referred to in paragraph 1
     shall confer entitlement to an adjustment of the refund .
                                               *
4 • The refund shall be paid subject to a security being lodged to guarantee
                                         I .
     performance of the - operations .                                       - - '
5 . The detailed rules for the "implementation of this Article and , in partipular ,
     of its provisions concerning the checks to be carried out shall be laid down
     in accordance with the procedure provided for in Article 2 6 of Regulation ( EEC )
     No 2727/75 .                                        - -
                     •              Article 3      . •
     Special refunds shall be granted only . to operators established in the
     Community .                       '               -         .
     These may be natural or legal persons , or groups thereof , who provide proof that
     the Community cereals have been placed under control , processed into spirituous
   • beverages and exported , who lodge the security referred to in Article 2 ( 4 ), and
     who state that they are    willing to provide , when requested to do so , .all the
     particulars required in connection with the fulfilment * of these obligations ..
                                     Article 4
1.-The amount of the special refund shall not exceed the difference between the         ,
  • prices of the cereals .on the world market and in the Community at the time when
     they were taken under control .         .   .                 '
2 . The amount of the special refund shall take account in particular of the average
      level of protection granted to cereals .
3 . The amount of the special refund shall be that on the day when the raw- materials
      to be processed for the production of alcohol , are placed under the control -
      provided for in Article 2 .    The said amount shall be converted into national
      currency at the representative rate in force on the same day .
4 . The special refund shall be paid by the intervention agency of the Member
      State on whose territory the raw materials for the production of alcohol have
      been placed under the control referred to in Article 2 .
 ---pagebreak---                                      - 6 -
                                    Art i c 1 e 6
1 . The operation shall "be condoled when the spirituous leverages concerned have
    "been either exported from the geographical territory of the Community or placed
     in a customs warehouse , in a free zone or under the Community transit system for
     subsequent export from the geographical territory of the Community .
2 . Although theyH^ulfil the conditions laid down in Article 9(2 ) of the Treaty, the
     spirituous "beverages subject to the formalities listed in paragraph 1
    – shall "be placed under the Community external transit system
    – shall "be subject to the customs provisions applicable to produots from
       non-member countries .
3 « Within the meaning of Regulation ( EEC ) No 754/?6 the spirituous beverages referred
    to in paragraph 1 shall be - considered as having complied with the customs export
    formalities required for the granting of the export refundo The said beverages
    may not be placed in free circulation unless an amount corresponding to the
    special refund paid , plus interest , is reimbursed or unlesq the import charge
    on products from non-member countries is paid .              \
4 « The products referred to in paragraph 1 may not be released for consumption
    in a Member State unless an amount corresponding to the special refund paid ,
 < plus interest , is reimbursed or unless a flat rate sum equivalent to the total
    import duties applicable to an identical product from non-memb6r countries is paid .
                         I
 ---pagebreak---                                            - 7 -
1 . A special refund shall be paid, in respect of Community cereals qualifying for
      an export refund and placed under control "between 1 August 1973 and 31 December
      1980 , providing an equivalent, quantity of spirituous "beverages was exported
      between 1 August 1976 and 31 December 1980 .                        .
2 . The amount of the special refund shall "be calculated on the "basis of world
      market prices and the Community prices for cereals at the time when they
      were taken under control .        •        "                                  .
                                ' -     1            '   ■                                 - ■
3 .- The special refund shall "be paid in instalments .         Payments for I98I shall not
      exceed 30 million EUA .     '                >
4 . The detailed rules for the application of this Article , and in particular the
      arrangements for the phasing of the payments , shall "be laid down in accordance
     'with the procedure provided for in Article 26 of Regulation ( EEC ) No 2727/75 «
                                          Article 7
      Article 4 ( 4 ) of Regulation . ( EEC ) No       /80 is amended to read as follows :
      "Except in the case of cereals , no refund shall "be granted for the products
     -used in the manufacture of the . alcohol contained in the spirituous "beverages
      falling within the following subheadings of the Common Customs Tariffs
      22.09 C.   Spirituous beverages ;                      '    .               .
                                                                     *
            II   Gin
            Ilia Whisky ( other than Whisky "Bourbon")
         ex IV Vodka' with an alcoholic strength of 45*4$ vol or less
            V    Other ."   '
 ---pagebreak---                           Article 8
In Annex 3 to Regulation ( EEC ) No        / 80 , subheading ETo 22.09 C V shall
"be replaced "by the following :
" 22.09 C.   Spirituous beverages :
    II . Gin
    Ilia Whisky ( other than Whisky "Bourbon")
ex IV Vodka with an alcoholic strength of 45-4^ vol or less
    V    Other ."
                          Article 9
This Regulation shall enter into force on the third 'day following its
publication in the Official Journal of the European Communities .
It shall apply from 1 January l<?8l .
This Regulation shall "be binding in its entirety and directly applicable in
all Member States . .
Done at Brussels                                     Por the Council
                                                      The President
 ---pagebreak---                      FINANCIAL                 STATEMENT
                                                                                            Date : 17 November 1980
1 . BUDGET
                HEADING : Item 6012 : other production refunds APPROPRIATIONS;-,^^ milli n EUA
             - Proposals for a Council Regulation
2.- TITLE :            amending Regulation No 2727/75 °n "the common organization of the market
                 in cereals .                                          -
                 2 ) laving doi%m certain rules- - for quantity special: refunds on certs-in spiritn
              ■ uous "beverages obtained from cereals .                                      .                                                  J
3 . -LEGAL BASIS ; Article 43 of the Treaty
                         ■ Protocol No . 19 to the 1972 Treaty of Accession
4 . . AIMS OF PROJECT : Payment of special refunds , under Article 16 of the common
                     organization of the market in cereals , for. exported spirituous "beverages
                     obtained from cereals . ,                                                                                                .
5 . - FINANCIAL IMPLICATIONS                     PERIOD OF 12 MONTHS          CURRENT FINANCIAL YEAR       FOLLOWING FINANCIAL YEAR         -
                                                                                     ( IRSo >                       F ÁRf?y¡ )
5.0 EXPENDITURE
       - CHARGED TO THE EC BUDGET                 31 million EU.Æ            ¿     · ; 0                  31 million EUA(for 198
           ( REFUNDS / INTERVENTIONS ) .
                                                    i -              "
                                                  ' · ... '
       -oflHxaoc
5.1                                                                                                       30 million EUA
       ^ VWTÎ is c JUuîyI
                                                                                                          ( for the period 1973–
       xajsxHHaax
                                                                                                                                       80 )
                                                          19G2                  1983              1984          •
 5.0.1 ESTIMATED EXPENDITURE                      31 ( annual )                31                 31
 5.1.1
                                                  45(l»i«sSv             or
 5.2 METHOD OF CALCULATION
                                       See Annex
 6.0 Xflff          EfrOflgffT^ffE* rltjftMvgy               v-^jTQtw* » xjiq             x khaw M- X XL » xm »                k »
 6.1 cmjaœamjsraKBKJOMBaticaxxRâtsl&êexseûtSëttjôi&aâÂS^âiic^
                                                                                                                            '. . · . XSSOBX
 6.2XX)BX3!I>EMEHKBOTBCKHüCEKIXB£OlBO£SS¡eKKX                                                  ,v     '
                                                                                                                                     xmm
  6.3 WILL FUTURE BUDGET APPROBATIONS BE NEGESSARY ?                                                                ,
                                                                                                                                     YES / KOC
  OBSERVATIONS :
        1 . In the I98I draft "budget-. 90 million EUA have "been included under item 6012-
        and a provisional appropriation of 60 million EUA is entered in Chapter 100
       to cover expenditure incurred under the present proposals .                                                . •
     - 2 . Not including -the period 1973-80 : See Annex. '
 ---pagebreak---                                 AMEX
    The calculation that follows is "based on -the refund for "barley , in malt
    equivalent , making up for the difference "between the Community price and the
    world price .    Adjustment is made to allow for any monetary compensatory
    amounts and accession compensatory amounts .
A. Estimated refunds for one year ■
    1 ) Scotch and Irish whisky ( special refunds )                                -
    Of the 535 000 tonnes of Community malt used , 59% is for export and eligible
    for refunds ( estimated at 90 EUA/t ) totalling 29 million EUA .     Irish whisky
    comes to about 1% of the figure for Scotch whisky.
    The average annual cost a"bove is likely to vary in the short term - in tune with
    the trends on the world market .
    2 ) Other spirituous "beverages obtained from cereals ( gin , vodka , etc )
    These come to about 8% of the export figures for whisky, i*e . 2 million EUA .
                                            \
    3 ) Total for for one year
    31 million EUA .
B. Refunds for the period 1 August 1973 to 31 December 1980 ( whisky only )
    During this period , about 5df-> of the whisky produced was exported to non-member
    countries .
    Applying the same proportion to the Community cereals used gives an estimated
  ' total refund of about UKL 43 million , equivalent to 75 million EUA ,       million
    of which are payable in I98I and the balance later .
    Hôte
    In the above figures , allowance is made for losses during 3 years of ageing ,
    which are estimated as follows :         "  -
    handling ( racking, etc ) . » . •                     4$
                                                        : 4%
    ageing , for the prescribed minimum of 3 years : about 10/?
    Total for 3 years                                   : 14#
                                                          14$