CELEX: 31974R1132
Language: en
Date: 1974-04-29 00:00:00
Title: Regulation (EEC) No 1132/74 of the Council of 29 April 1974 on production refunds in the cereals and rice sectors

No L 128 /24                           Official Journal of the European Communities                              10. 5 . 74
                                  REGULATION (EEC) No 1132/74 OF THE COUNCIL
                                                      of 29 April 1974
                                    on production refunds in the cereals and rice sectors
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                         use of rice, the refund for broken rice should be
                                                                  fixed at such a figure that the price of broken rice
                                                                  is brought down to 10-20 units of account per 100
Having regard to the Treaty establishing the                      kilogrammes ; whereas, however, the level of the
European Economic Community;                                      abovementioned supply prices should be guaranteed
                                                                  only insofar as the price of the basic products on
                                                                  the world market is situated below the threshold
Having regard to Council Regulation No 120/67/                    price for each of these products ;
EEC (*) of 13 June 1967 on the common
organization of the market in cereals, as last
amended by Regulation (EEC) No 1125/74 ( 2), and
                                                                  Whereas on account of the connection between the
in particular Article 11 (3 ) thereof;
                                                                  production prices of the raw materials used in the
                                                                  manufacture of cereal and potato starches and of
Having regard to Council Regulation No 359/67/                    the interchangeability of these two products, a
EEC (3) of 15 July 1967 on the common organization                balanced relationship should be maintained between
of the market in rice, as last amended by Regulation              the prices of these products ; whereas the refund
(EEC) No 1129/74 (4), and in particular Article 9                 granted should therefore be the same for both of
(2) thereof;                                                      these products ; whereas, however, the refund paid
                                                                  to producers of potato starch should be such as to
                                                                  assure Community potato producers of a price
Having regard to the proposal from the Commission ;               allowing them a fair income, while the market
                                                                  conditions for cereals used in starch manufacture
Whereas, on account of the special situation on the               and the common market organizations governing
market in starches and, in particular, the need for               them are such as to ensure that their price is in
the starch industry to ensure that its prices are                 fact held at the level of the threshold price; whereas
competitive with those of substitute products,                    steps should therefore be taken to ensure that potato
Regulation Nos 120/67/EEC and 359 /67/EEC                         producers ultimately benefit from the refund paid
provided for the granting of a production refund, in              to producers of potato starch ;
order that the starch industry might obtain the
basic products it requires at a lower price than that
which would result from the application of the rules              Whereas the level of the production refund to be
of the common organization of the markets in the                  granted on maize used by the maize industry in the
products in question ;                                            manufacture of groats and meal for use by the
                                                                  brewing industry in the production of beer, and on
Whereas a precise assessment of the situation                     broken rice used for the same purpose should be
                                                                  such as to achieve a balance between the cost of
resulting from the level of common prices and from
the competition between, on the one hand, maize                   supplying the brewing industry with maize starch,
starch, rice starch, potato starch and, on the other,             on the one hand, and with maize groats and meal
the substitute chemical products, indicates that the              and broken rice, on the other; whereas this objective
refund should be fixed at such a figure that the                  will be achieved by fixing the refund on maize for
price of maize used in starch manufacture is brought              the manufacture of groats and meal at the same
                                                                  level as the refund on maize for the manufacture of
down to 8-20 units of account per 100 kilogrammes ;
whereas this price of 8-20 units of account for                   starch and, also, by fixing the refund on broken
common wheat ensures a proper balance between                     rice at a level which reduces the price to the brewing
the use of this product and the use of maize ;                    industry to 10-20 units of account per 100 kilo­
whereas in order to obtain the same balance in the                grammes ;
                                                                  Whereas Article 11 ( 1 ) of Regulation No 120/67/EEC
C)  OJ  No 117 , 19 . 6. 1967, p. 2269/67.                        provided for a production refund to be granted on
(2) See page 12  of this Official Journal.
(3) OJ  No 174,  31 . 7. 1967 , p. 1 .                             groats and meal for the manufacture of glucose by
(4) See page 20  of this Official Journal .                       the process known as direct hydrolysis ; whereas
 ---pagebreak--- 10 . 5 . 74                               Official Journal of the European Communities                           No L 128 /25
this refund should be fixed at such a level as to                    lation (EEC) No 178/73 (8), have frequently been
achieve a balance between glucose manufactured by                    amended ; whereas, for reasons of clarity, it is pre­
direct hydrolysis and glucose manufactured from                      ferable to include all the provisions relating to
starch ;                                                             production refunds on cereals and rice in a single
                                                                     Regulation,
Whereas, in the event of appreciable and persistent
variations in the world price of maize, common                       HAS ADOPTED THIS REGULATION :
wheat and broken rice, these refunds should be
limited, so long as world market prices remain high,
in such a way as to deter imports at prices below                                               TITLE I
the world market level and to prevent the financial
burden of production refunds from becoming ex­
cessive ;                                                                       Production refunds on cereal starch
Whereas the abovementioned measures should not                                                 Article 1
disturb the markets in third countries ; whereas,
therefore, in the event of an appreciable and                        1 . Member States shall grant a production refund
persistent increase in prices on the said markets,                   on maize and common wheat for the manufacture
provision should be made for compensatory                            of starch equal to the difference per 100 kilogrammes
measures consisting of the charging of a levy on                     between the threshold price for each of these prod­
exported products with a view to reducing the                        ucts, less any accession compensatory amount appli­
advantages granted to Community manufacturers to                      cable, and 8-20 units of account.
 an appropriate level ;
                                                                     The production refund on maize for the manufacture
Whereas under Article 57 of the Act of Accession (1),                of starch shall be increased in Italy by 0-30 unit of
in fixing the level of the various elements of the price              account per 100 kilogrammes of maize.
and intervention system, except for intervention
prices, account is to be taken for the new Member                     This increase shall not, however, apply if recourse
States, to the extent necessary for the proper func­                  is had to the provisions of Article 23 (2) of Regulation
tioning of Community rules, of the difference in                      No 120/ 67/ EEC .  .
prices expressed by the compensatory amount;
whereas, however, for the application of this pro­                   2. Member States shall grant a production refund
vision, the compensatory amount may be reduced in                     on broken rice for the manufacture of starch equal
accordance with Article 7 of Council Regulation                       to the difference per 100 kilogrammes between the
 (EEC) No 229/73 (2) of 31 January 1973 laying down                   threshold price for broken rice, less any accession
general rules for the system of compensatory amounts                  compensatory amount applicable, and 10-20 units
 for cereals and fixing these for certain products, as                of account .
last amended by Regulation (EEC) No 1967/73 (3)
 and Article 5 of Council Regulation (EEC) No 243 /
73 (4) of 31 January 1973 laying down general rules
for the system of compensatory amounts for rice and                                             TITLE II
 fixing these amounts for certain products ;
                                                                                Production refunds on potato starch
 Whereas Council Regulation No 367/67/EEC (5) of
25 July 1967 fixing production refunds on maize
                                                                                                Article 2
 groats and meal and broken rice used in the brewing
industry, as last amended by Regulation (EEC) No
 1926/73 (6), and Council Regulation No 371 /67/EEC                   Member States shall grant a production refund per
 (7) of 25 July 1967 fixing production refunds on                      100 kilogrammes of potato starch, calculated at a flat
 starches and quellmehl, as last amended by Regu­                     rate in accordance with the provisions of Articles 3
                                                                      and 9, which shall be equal to the average amount of
                                                                      the refund granted during the period beginning on
                                                                       1 August and ending on 31 July of the following
 (x) OJ   No L 73 , 27. 3 . 1972, p. 14.                              year per 161 kilogrammes of maize for starch manu­
 (2) OJ   No L 27, 1 . 2. 1973 , p. 25.                                facture.
 (2) OJ   No L 201 , 21 . 7. 1973 , p. 8.
 (4) OJ   No L 29, 1 . 2. 1973 , p. 26.
 (5) OJ   No 174, 31 . 7. 1967, p. 36.
 (6) Oj   No L 199, 19. 7. 1973 , p. 3 .
 C) Oj No 174, 31 . 7. 1967, p. 40.                                   (8) OJ No L 25 , 30. 1 . 1973 , p. 5.
 ---pagebreak--- No L 128 /26                       Official Journal of the European Communities                                10 . 5 . 74
                        Article 3                                                       Article 5
                                                              Member States shall grant a production refund on
1 . The price to be paid to the producer at the               maize groats and meal for the manufacture of glucose
delivered-to-factory stage for the quantity of potatoes       under subheading 17.02 B II of the Common Customs
required to manufacture 100 kilogrammes of potato             Tariff ( 1) by the process known as direct hydrolysis.
starch shall be equal to the amount of the production
refund mentioned in Article 2, increased by an                The production refund per 100 kilogrammes of maize
amount of not less than 10·45 units of account.
                                                              groats and meal shall be equal to the difference per
                                                              100 kilogrammes between the threshold price for
2. The production refund shall be calculated on the           maize, less any accession compensatory amount
basis of the quantity of potatoes delivered to starch         applicable, and 8·20 units of account multiplied by
                                                              the coefficient 1·23 .
manufacturers, account being taken of the starch
content of the potatoes at the time of delivery.
                                                                                        Article 6
It shall be paid in full to the starch manufacturer if        Member States shall take all necessary measures to
he furnishes proof:                                           ensure that the refunds mentioned in Articles 4 and 5
                                                              are limited to the quantities of maize groats and
                                                              meal and broken rice actually used in the Community
— of the quantities of potatoes delivered to him              by the brewing industry in the production of beer
    and their starch content at the time of delivery ;        or by the glucose industry.
— of payment to the producer of an amount not                                           TITLE IV
    less than the price fixed in paragraph 1 , account
    being taken of the starch content of the potatoes.
                                                                                  General provisions
Where the price paid to the producer is less than the                                   Article 7
minimum referred to in the second indent of the
preceding subparagraph, the refund paid to the                1 . If the prices of the basic products mentioned in
starch manufacturer shall be reduced by the differ­           Articles 1 , 4 and 5 show appreciable and persistent
ence in question.                                             variations on the world markets in relation to the
                                                              amounts specified in the said Articles, namely 8 l20
                                                              units of account for maize and common wheat and
                                                              10·20 units of account for broken rice, these amounts
                                                              may be altered by the Council acting on a qualified
                        TITLE III                             majority on a proposal from the Commission .
                                                              2 . If the world market price of, on the one hand,
          Production refunds on maize groats                  maize or common wheat, and, on the other, broken
              and meal and broken rice                        rice appreciably and persistently exceeds 8·20 and
                                                              10·20 units of account, respectively, an export levy
                                                              to compensate for the difference between prices on
                                                              the world market and supply prices for these basic
                        Article 4                             products within the Community shall be introduced
                                                              for products falling within headings 11.08 A, 11.09,
                                                              17.02 B II, 17.05 B and 23.03 A I of the Common
                                                              Customs Tariff. The Commission shall fix the export
1 . Member States shall grant a production refund             levy.
on maize used by the maize industry for the manu­
facture of groats and meal used by the brewing                                          Article 8
industry in the production of beer equal to the
refund granted on the same date on maize for starch           Member States shall inform the Commission not
manufacture .
                                                              later than four months after the end of the marketing
                                                              year of the quantity of products for which production
                                                              refunds have been paid .
2. Member States shall grant a production refund
on broken rice used by the brewing industry in the
production of beer, equal to the difference per
100 kilogrammes between the threshold price for               (*) Pursuant to Regulation No 189/66/EEC, the products
                                                                  falling within tariff subheading 17.02 B I are subject
broken rice, less any accession compensatory amount               to the same arrangements as those laid down for
applicable, and 10·20 units of account.                           products falling within subheading 17.02 B II.
 ---pagebreak--- 10. 5 . 74                          Official Journal of the European Communities                        No L 128 /27
                        Article 9                                 proof mentioned in the second subparagraph of
                                                                  Article 3 (2) must be furnished.
Detailed rules for the application of this Regulation
shall be adopted in accordance with the procedure
laid down in Article 26 of Regulation No 120/67/                                     Article 10
EEC and Article 26 of Regulation No 359/67/EEC in
particular as regards :
                                                               Regulation Nos 367/67/EEC and 371/67/EEC are
                                                               hereby repealed.
(a) the export levy referred to in Article 7 (2) ;
(b) the granting of advances on production refunds
                                                                                     Article 11
     which may involve the giving of security ;
(c) the calculation, in accordance with a scale drawn          This Regulation shall enter into force :
     up in terms of the starch content of the product,
     of the quantity of potatoes required to manufac­          — on 1 August 1974, for products covered by
     ture 100 kilogrammes of starch ;                              Regulation No 120/67/EEC,
( d) the conditions under which potatoes are accepted          — on 1 September 1974, for products covered by
     and paid for and the conditions under which the               Regulation No 359/67/EEC.
              This Regulation shall be binding in its entirety and directly applicable in all Member
              States .
              Done at Luxembourg, 29 April 1974.
                                                                                    For the Council
                                                                                     The President
                                                                                        J. ERTL