CELEX: 51987PC0717
Language: en
Date: 1987-12-22
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1581/86 laying down general rules for intervention on the market in cereals as regards the conditions under which products may be sold for supply as food aid (submitted by the Commission)

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COM (87) 717
Vol. 1987/0332
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(87 ) 717 final
                                             Brussels , 22 December 1987
                                   Proposai for a
                              COUNCIL REGULATION ( EEC )
   amending Regulation ( EEC ) No 1581 / 86 laying down general rules for inter¬
    vention on the market in cereals as regards the conditions under which
                  products may be sold for supply as food aid
                          ( submitted by the Commission )
   C0M(87 ) 717 final
 ---pagebreak---                               EXPLANATORY MEMORANDUM
The purpose of the draft proposal for a Council Regulation herewith is to
allow , under the market rules for cereals , products held by intervention
agencies to be resold at prices fixed in advance , so that both Community and
national food aid supplies can be mobilized from intervention stocks .        Under
the new food-aid arrangements the goods must be purchased from intervention
agencies by the successful tenderer / supplier instead of being placed at his
disposal by those agencies .
The general rule , under the market organization for cereals , is that the
products should be sold by tender ( Council Regulation ( EEC ) No 1581 /86 ).   It
is advisable to provide , in the case of food-aid supplies , that the products
should be sold on terms ( in particular as regards prices ) which are fixed in
advance , which all the tenderers competing for the award of the food-aid
supply contract would be aware of , and which prevent any disruption on the
Community market when the products in question are sold .
The conditions laid down with regard to prices and other detailed rules
( time-limits for the actual removal of the goods , for payment , etc .) will , in
accordance with the present provisions of Council Regulation ( EEC ) No 1581 / 86 ,
be adopted by the Commission after consulting the Management Committee .
 ---pagebreak---                                           2
                                         Proposai for
                          COUNCIL REGULATION ( EEC )
         amending Regulation ( EEC ) No 1581 /86 laying down general rules for
     intervention on the market in cereals as regards the conditions under which
                      products may be sold for supply as food aid
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Kaving regard to Council Régulation ( EEC ) No 2727 / 75 of 29 October 1975 on the
common organization of the market in cereals ( 1 ), as last amended by
Régulation ( EEC ) No      / 87 ( 2 ), and in particular Article 7(4 ) thereof ,
Having regard to the proposal from the Commission ,
Whereas Council Regulation ( EEC ) No 1581 / 86 ( 3 ) provides
                                                                      ' that cereals
held by intervention agencies must be sold by tender ; whereas there should be
a derogation from that selling procedure in the case of Community or national
food aid supplied pursuant to the International Food Aid Convention ;
Whereas , for the purposes of Council Regulation ( EEC ) No 3972 / 86 of
22 December 1986 on food-aid policy and food-aid management ( 4 ), the products
to be supplied by the successful tenderer are always purchased by the latter ;
whereas , where products held by intervention agencies are being mobilized , the
most suitable procedure for bringing about satisfactory competition between
all Community traders in order to calculate the overall supply costs would be
to sell the products concerned at prices which are fixed in advance but which
are designed to avoid any disruption on the Community market ; whereas the use
of that procedure should be specified in the case of food-aid supplied
pursuant to Regulation ( EEC ) No 1581 / 86 ,
( 1 ) OJ No L 281 ,   1.11.1975 , p. 1
( 2 ) OJ No L
( 3 ) OJ No L 139 , 24.5.1986 , p. 36 .
( 4 ) OJ No L 370 , 30.12.1986 , p. 1 .
 ---pagebreak---                                             2
HAS ADOPTED THIS REGULATION :
                                      Article 1
The following paragraph is added to Article 4 of Régulation ( EEC ) No 1581 / 86 :
"Where cereals are purchased from intervention agencies for the purposes of
fulfilling obligations arising from the award of food-aid supply contracts in
connection with international conventions on food-aid the conditions
applicable with regard to the price shall be fixed in advance . They shall be
laid down by the Commission in accordance with the procedure provided for in
Article 26 of Regulation ( EEC ) No 2727 / 75 in such a way as to avoid any
disruption on the market ."
                                     Article 2
This Régulation shall enter into force on the day following its publication in
the Official Journal of the European Communities .
This Régulation shall be binding in its entirety and directly applicable in
ail Member States .
Done at Brussels ,
                                                     For the Council
 ---pagebreak---           FINANCIAL               STATEMENT
                                                                     Date :  23 October 1987
 1 . Budget heading : 1013 - Other public              Appropriations :        331 million ECU
                          storage costs
                         Cereals
 2 . Title : Proposal for a Council Regulation amending Regulation ( EEC ) No 1581 / 86
     laying down general rules for intervention on the market in cereals as regards
     the conditions under which products may be sold for supply as food aid
3 . Legal basis : Article 7(4 ) of Régulation ( EEC ) No 2727 / 75
4 . Aims oí project : To allow for the sale of products held in intervention stock
     for supply as food aid under conditions fixed in advance in accordance with the
     principies of Regulation ( EEC ) No 1581 / 86
                                                     period of          current             following
                                                     12 months      financial year       financial year
5.     Financial implications                                            ( 1987 )             ( 1988 )
5.0    Expenditure
       - charged to the EC budget                      p.m .             p.m .                  p.m .
         ( refunds / intervention )
       - national administration
       - other
5.1    Receipts
       - own resources of the EC
         ( levies / customs duties )
       - national
                                                        1989                 1990
5.0.1 Estimated expenditure                             p.m .                p.m .
5.1.1 Estimated receipts                                  -                    -
5.2 Method of calculation : ( see observations )
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 ?
                                                                                                xxxxxx
6.2 Is a supplementary budget necessary ?                                                             no
6.3 Will future budget appropriations be necessary ?                                                  no :
Observations : This measure amends the rules according to which the selling price is fixed for
the sale of cereals from intervention stack intended for food aid measures .                             :
The fixation of priées in advance          in the place of a tendering procedure should only hâve a      :
rcarginaleffect en Cormunity expenditure .                                                               :
The selling prices which will be fixed will be comparable to those under a tendering                     :
procedure in view of the price levels on the internal market .                                           :