CELEX: 51993PC0539
Language: en
Date: 1993-11-05
Title: Proposal for a COUNCIL REGULATION (EEC) on special arrangements for imports of maize into Portugal

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                                        C0M(93) 539 final
                                                                                        Brussels, 5 November 1993
                                                                         Proposal for a
                                                                   COUNCIL REGULATION (EEC)
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                                                    on special arrangements for imports of maize into Portugal
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                                                                 (presented by the Commission)
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                             EXPLANATORY MEMORANDUM
Point 8 of the Memorandum of understanding on certain oil seeds between the
European Economic Community and the United States of America within the
framework of the GATT approved by Council Decision 93/355/EEC of 8 June
1993< 1 ), lays down that the Community shall grant a reduced-tariff quota
for the import of 500 000 tonnes of maize into Portugal beginning in the
1993/94 marketing year. The reduced tariff shall be fixed at a rate that
ensures that the quota is filled.
To allow the Community's undertaking to be fulfilled, specific arrangements
for importing maize into Portugal must be introduced. This draft proposal
for a Council Regulation provides for the introduction of such
arrangements, retroactive to 1 July 1993. As the understanding was
concluded pursuant to Article 113 of the Treaty, the arrangements fall
within the exclusive competence of the Community.
Included among the import arrangements are a reduced rate of import levy
and the opening of tendering procedures for reducing the import levy. The
option of purchasing on the world market by the Portuguese intervention
organization is also provided for in this draft regulation.
 (1) OJ No L 147, 18.6.1993, p. 25.
 ---pagebreak---                                     3
                                Proposal for a
                         Council Regulation (EEC) No
                                 of      1993
         on special arrangements for imports of maize into Portugal
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 113 thereof,
Having regard to the proposal from the Commission,
Whereas, pursuant to Council Decision 93/355/EEC of 8 June 1993<1)
concerning the conclusion of a Memorandum of understanding on certain oil
seeds between the European Economic Community and the United States of
America within the framework of the GATT, the community has undertaken,
beginning in the 1993/94 marketing year, to open a reduced-tariff quota for
imports into Portugal of 500 000 tonnes of maize; whereas this understanding
falls within the exclusive competence of the Community;             ^
Whereas, to ensure that the understanding between the European Economic
Community and the United states of America is carried out, provision has
been made to reduce the tariff to a level allowing the quota to be fully
used; whereas this reduction may be envisaged by applying a reduction of the
import levy; whereas, however, the imports into Portugal at preferential
terms may create difficulties for the Community market, particularly in view
of Council Decision 87/224/EEc(^) concerning the agreement between the
European Economic Community and the United States of America concerning the
conclusion of the negotiations under Article XXIV (6) of the General
Agreement on Tariffs and Trade (GATT); whereas to overcome this difficulty,
the possibility of restricting the use or processing of these quantities of
maize in Portugal and the possibility of applying a countervailing duty to
the processed products exported either to third countries or to the rest of
the Community should be provided for;
(1) OJ No L 147, 18.6.1993, p. 25.
(2) OJ No L 98, 10.4.1987, p.l.
 ---pagebreak--- Whereas the accumulation of benefits provided for, on the one hand, as part
of the arrangements established by Council Regulation (EEC) No 715/90 of 5
March 1990( 3 ), as last amended by Commission Regulation (EEC) No 444/92(4)
and applicable when importing into the Community sorghum wheat and maize
originating in the African, Caribbean and Pacific States (ACP States) or the
overseas territories, or on the other hand pursuant to this Regulation is
such as to create disturbances on the Portuguese cereals market; whereas
this difficulty can be overcome by fixing a countervailing duty specific to
the levy applying to maize imported pursuant to this Regulation;          ;
Whereas provisions are required to cover the operations arising from this
Regulation in accordance with the mechanisms laid down by council Regulation
(EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural
policy< 5 ), as last amended by Regulation (EEC) No 204 8/88< 6 ), and by
Council Regulation (EEC) No 1883/78 of 2 August 1978 laying down general
rules for the financing of interventions by the European Agricultural
Guidance and Guarantee Fund, Guarantee Section^ 7 ), as last amended by
Regulation (EEC) No 787/89<8>,
HAS ADOPTED THIS REGULATION:
                                    Article 1
Imports of a maximum quantity of 500 000 tonnes of maize from third
countries for free circulation in Portugal shall be undertaken in accordance
with the conditions laid down in the following Articles.
                                    Article 2
1. Without prejudice to Article 3, in the case of imports of maize into
    Portugal and within the quantitative limits set down in Article 1, a
    reduction shall be applied to the levy fixed in accordance with Article
     10 of Regulation (EEC) No 1766/92.
 (3)  OJ No L 84, 30.3.1990, p. 85.
 (4)  OJ No L 52, 27.2.1992, p. 7.
 (5)  OJ No L 94, 28.4.1970, p. 3.
 (6)  OJ no L 185, 15.7.1988, p. 1.
(7)   OJ No L 216, 5.8.1978, p. 1.
(8)   OJ No L 85, 30.3.1989, p. 1.
 ---pagebreak--- 2. The amount of the reduction shall be fixed in accordance with the
   procedure laid down in Article 23 of Regulation (EEC) No 1766/92 at a
   level enabling disturbances on the Portuguese market to be avoided. The
   reduction may also be fixed by a tendering procedure.
   The reduction may be differentiated for imports of maize into Portugal
   under Regulation (EEC) No 715/90.
3. The reduction shall be applied to imports of maize into Portugal on the
   basis of a licence valid only in that Member state.
                                  Article 3
1. With a view to effecting the imports referred to in Article 1, it may be
   decided, under the procedure laid down in Article 23 of Regulation (EEC)
   No 1766/92, that the Portuguese intervention agency shall purchase on the
   world market quantities of maize to be determined and shall place them in
   Portugal under the customs warehousing procedure as provided for in
   Council Regulation (EEC) No 2503/88 on customs warehouses(9) and
   Regulation (EEC) No 2561/90(1°) laying down provisions for the
   implementation thereof.
2. Quantities purchased pursuant to paragraph 1 shall be put up for-'sale on
   the Portuguese domestic market in accordance with the procedure laid down
   in Article 23 of Regulation (EEC) No 1766/92, on terms that enable market
   disturbances to be avoided.
3. When the maize is placed in free circulation, an agricultural levy shall
   be levied equal to the average of the levies applicable in Portugal and
   fixed for the cereal concerned during the first twenty-five days of the
   month preceding the date of acceptance of the declaration of entry into
   free circulation, minus the difference between the threshold price and
   the intervention price for the same month.
   Entry into free circulation shall be effected by the Portuguese
   intervention agency.
   When the purchasers of the goods pay the intervention agency, the selling
   price minus the levy shall correspond to revenue from sales within the
   meaning of Annex I of Regulation (EEC) No 3492/9 0 ( 1 1 ) .
4. The purchase provided for in paragraph 1 shall rank as an intervention to
   stabilize the agricultural markets within the meaning of Article 1(2)(b)
   of Regulation (EEC) Ho 729/70.
(9) OJ No L 225, 15.8.1988, p.l.
(10) OJ No L 246, 10.9.1990, p.l.
(11) OJ No L 337, 4.12.1990, p. 3.
 ---pagebreak--- 5. The payments made by the intervention agency for the purchases provided
   for in paragraph 1 shall be borne by the community as they arise and
   shall be treated in the same way as the expenditure referred to in
   Article 2 of Regulation (EEC) No 1883/78. The Portuguese intervention
   agency shall record the value of the goods purchased at a price of "zero"
   in the account referred to in Article 4 of Regulation (EEC) No 1883/78.
                                  Article 4
                                                                     (
At a frequency to be determined, the Commission shall record the quantities
of maize imported into Portugal from third countries.
For this purpose the Portuguese authorities shall regularly supply the
Commission with all necessary information.
                                  Article 5
The imports referred to in Article 1 shall be carried out during each
marketing year.
                                  Article 6
Where the markets for maize or products derived therefrom are distdÇbed, a
countervailing duty may be introduced in accordance with the procedure laid
down in Article 23 of Regulation (EEC) No 1766/92 for exports of the
products in question from Portugal or for their consignment to other Member
States.
                                  Article 7
The following shall be adopted in accordance with the procedure laid down in
Article 23 of Regulation (EEC) No 1766/92:
   the measures needed to ensure, where appropriate, that the cereals for
   which the levy has been reduced are actually processed or used in
   Portugal; such measures may, apart from the lodging of a security,
   provide in particular either for a restriction on the use of the maize
   imported into Portugal pursuant to this Regulation or the application of
   a countervailing duty where it is noted that the Community market in
   maize has been disturbed as a result of the consignment of significant
   quantities of maize from Portugal to other Member States;
   all other detailed rules for implementing this Regulation, and in
   particular those relating to the issue of import licences; such rules may
   stipulate that the licences may be issued only in Portugal, after
   Commission endorsement.
                                  Article 8
This Regulation shall enter into force on the day following 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
 ---pagebreak---                                                               *
                                                                                  (FF/93/035)
        Financial Statement                                             Date  :
                                                                                   H/10/1993
1.  BUDGET HEADING :  B2-5160     Expenditure  1003                    APPROPRIATIONS : 2 U (LR 94)
                                  Income      Î004                                       1023.4
2. TITLE :
       Proposal for a Council Regulation on special arrangements for imports of maize into Portugal
3. LEGAL BASIS : EEC Treaty, Article 43 in particular
4. AIMS
         Special arrangements for the import into Portugal of 500 000 tonnes of maize at a reduced
         tariff as provided for in the Memorandum of understanding concluded between the Community
         and the United States of America
5. FINANCIAL IMPLICATIONS           PERIOD OF 12 MONTHS   CURRENT FINANCIAL YEAR    FOLLOWING FINANCIAL YEAR
                                                                 ( ECU m )               ( ECU m )
5.0 EXPENDITURE
       - CHARGED TO THE EC BUDGET
         (REFUNDS/INTERVENTIONS)                                 39.8                         32.6
5.1 REVENUE
       - OWN RESOURCES OF THE EC                                 39.8                         32.6
         (LEVIES/CUSTOMS DUTIES)
  I    - NATIONAL
                                       1996                 1997             1998                1999
5.0.1 ESTIMATED EXPENDITURE            16.3                  8.4              8.4                8.4
5.1.1 ESTIMATED REVENUE                16.3                  8.4              8.4                8.4
5.2 METHOD OF CALCULATION
       See Annex
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?
                                                                                                      YES
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ?
                                                                                                      YES
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ?
                                                                                                      NO
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ?
                                                                                                      YES
COMMENTS
         This measure can be financed from within the appropriations provided for in the budget.
 ---pagebreak---                                                                 kVMaW
The importation of 500 000 tonnes of reduced-tariff maize will result in the
export of an additional 500 000 tonnes of fodder cereals.
It is presumed that the amount of the levy will be equal to the amount of
the export refund.
                   1994    1995    1996    1997
                                          et seq.
  Levy refunds
  ECU(A)/t          66      54      28      14
  Quantity           0.5     0.5     0.5     0.5
  million tonnes
  Dual rate        1.207   1.207   1.207   1.207
  Expenditure and   39.8    32.6    16.9     8.4
  own resources
  million ECU
 ---pagebreak---                                                   3
                                                                     ISSN 0254-1475
                                                              COM(93) 539 final
                                                      DOCUMENTS
EN                                                                         il 03
                                 Catalogue number : CB-CO-93-576-EN-C
                                                             ISBN 92-77-60629-0
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