CELEX: 51989PC0448
Language: en
Date: 1989-10-09
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 986/68 LAYING DOWN GENERAL RULES FOR GRANTING AID FOR SKIMMED MILK AND SKIMMED-MILK POWDER FOR USE AS FEED

COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(89) 448 f i n a l
                                              Brussels, 9 October 1989
                              Proposal for a
                        COUNCIL REGULATION (EEC)
   amending Regulation (EEC) No 966/68 laying down general rules for
       granting aid for skimmed milk and skimmed-milk powder for
                               use as feed
                      (presented by the Commission)
 ---pagebreak---                                                                   &*7V<tff
                              EXPLANATORY MEMORANDUM
The attached proposal for a regulation amends Regulation (EEC) No 986/68
 laying down general rules for granting aid for skimmed milk and skimmed-milk
powder for use as feed, the second subparagraph of Article 3(1) of which
provides by way of derogation that Member States consigning skimmed-milk
powder to another Member State may pay the aid instead of the Member State •
where the powder is denatured or incorporated in compound feed.
Since the provision was introduced in June 1976 the factors governing
operation of the market organization have changed to such an extent that the
grounds on which it was introduced no longer exist. This is particularly relevant
 as regards the effect of the provision in question on EA6GF expenditure.
Moreover since the control arrangements are necessarily   more
 complicated  the  scope  for  fraud  is  greater,   even more
 than in the case of the normal arrangements laid down by Commission Regulation
 (EEC) No 1725/79.
Until 1987 only Italy made use of this special arrangement but three other
Member States have since then invoked their right to apply it.   The risk of a
worsening of the situation therefore leads the Commission to propose
abolishing the provision (second subparagraph of Article 3(1) of Regulation
(EEC) No 986/68).
 ---pagebreak---                                  Proposal for a
                            COUNCIL REGULATION (EEC)
         amending Regulation (EEC) No 986/68 laying down general rules for
       granting aid for skimmed milk and skimmed-milk powder for use as feed
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 804/68 of 27 June 1968 on the
common organization of the market in milk and milk products (1), as last
amended by Regulation (EEC) No 763/89 (2), and in particular Article 10(2)
thereof,
Having regard to the proposal from the Commission,
Whereas the second subparagraph of Article 3(1) of Council Regulation (EEC)
No 986/68 (3), as last amended by Regulation (EEC) No 1115/89 (4), provides
exceptionally    that   Member States consigning skimmed-milk powder to another
Member State may pay the aid instead of the Member State in which the
skimmed-milk powder is denatured or incorporated in compound feed;   whereas
following the development of the market situation this exception should no
longer be maintained;
(1) OJ  No L 148, 28.6.1968, p. 13.
(2) OJ  No L 84, 29.3.1989, p. 1.
(3) OJ  No L 169, 18.7.1968, p. 4.
(4) OJ  No L 118, 29.4.1989, p. 7.
 ---pagebreak---                                       - 2 -
HAS ADOPTED THIS REGULATION:
                                    Article 1
               The second subparagraph of Article 3(1) of Regulation (EEC) No
986/68 is hereby deleted.
                                    Article 2
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities.
It shall apply to skimmed-milk powder consigned after 31 December 1989.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
Done at Brussels,                                   For the Council
 ---pagebreak---                FINANCIAL                  STATEMENT
                                                                                  Oat*      lo.Q.1989
1. BUDGET HEADING :        '.  2020                                               A«*oeiAT10*S :   ECU  5 g0  m i L 11 Of»
2. TITLE : Proposal for a Council Regulation amending Regulation (EEC) N° 986/68 laying down general
    rules for granting aid for skimmed milk and skimmed milk powder for use as feed
3. LEGAL BASIS
                     Article 10 (2) of Regulation (EEC) N° 804/68
4.   AIMS OF PROJECT : T o syspgp,-) t h e provisions authorizing the Member States which consign skimmed milk
    powder to another Member State to pay the aid in place of the Member State where the skimmed milk
    powder is denatured or incorporated in compoundfeedingstuffs.
 5. FINANCIAL IMPLICATIONS                    PERIOD OF 12 MONTHS   CURRENT FINANCIAL YEAR  FOLLOWING FINANCIAL TEAR
 5.0 EXPENDITURE                                                            < 1989   ?            0220       2
      - CHARGED TO T^E EC BUOGET               - ECU 42,3 millier]                             - EClUl,Omillion (B)
        •(«crumt/ INTERVENTIONS)                              (B)
      -  NATIONAL APNlittSTMTlOH
 5.1 RECEIPTS
      - OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
      - NATIONAL
                                                  1991                 .1992           1993              1994
 5.0.1 ESTIMATED EXPENDITURE                      ECU 3,3         - ECU 3,3
 5.1.1 ESTIMATED RECEIPTS                         million(B)        million (B)
 5.2 METHOO OF CALCULATION     (1990)
                                                              ECU million (B)
      Impact of change in double rate
      240.000 t x Ecu 600/t x (1,125 - 1,102) x 4 1/2 « -               1,2
      Impact of additional payment period
      240.000 t x Ecu 600/t x 1,102 (DR) x 3/12                 = - 39,8
 6.0 CAN TH£ PROJECT BE FINANCED FROM APPRO01 ATI ONS ENTEREO IN frt£ RELEVANT CHAPUP OF ;nfc CURRINT CH-JCOE
                                                                                                                   TES.
  6.1 CAN THE PROJECT BE FINANCED BT TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ?
 6.2 IS X SUPPLEMENTARY BUDGET 8E NECESSARY
 6.3 WILL FU7J3E 3U0GET APPR08IATIONS BE NECESSARY ?
 OBSERVATIONS ;
                   It is assumed that the impact of the measure relates mainly to the 1990 financial year
   and will lead to savings following the change in the average double rate and, in respect only of the
   first 12 months of application, owing to an additional period before payment of the aid in the
   importing Member State, estimated at three months.
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (89) 448 final
                                                      DOCUMENTS
EN                                                                              03
                                 Catalogue number : CB-CO-89-434-EN-C
                                                             ISBN 92-77-53264-5
Office for Official Publications of the European Communities
L-2985 Luxembourg