CELEX: 51973PC2032
Language: en
Date: 1973-12-05
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL extending the arrangements made by Regulation (EEC) No 1253/73 on imports of the wine product exported under the label of "Cyprus Sherry", originating in and coming from Cyprus, and the introduction of subsidies for similar wine products produced in the Community as originally constituted and exported to Ireland and the United Kingdom (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 2032
Vol. 1973/0362
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EXROEEAN COMMUNITIES
                                                             COM(73 ) 2032 final
                                                             Brussels , 5 December 1973
                                  - PROPOSAL FOR A
                          REGULATION (me ) OF THE COUNCIL
   extending "the arrangements made "by Regulation (EEC ) No 1253/ 73 on imports
                  of the wine product exported under the label of
   " Cyprus Sherry" , originating in and coming from Cyprus , and the introduction
                  of subsidies for similar wine products produced
   in the Community as originally constituted and exported to Ireland and the
                                    United Kingdom
                    ( submitted to the Council by the Commission)
  COIï(73 ) 2032 final
 ---pagebreak---                          EXPLANATORY ME'IOItAIIDUM
      The Association Agreement with the Republic of Cyprus provides that
special import terms shall be introduced for wine exported under the label
" Cyprus Sherry", of which Cyprus exports a large quantity and the sales of
which are essential for the Cyprus economy. These arrangements , set out in
a& exchange of letters annexed to the supplementary protocol to the
Agreement , were motivated by a concern not to interrupt traditional exports
to Ireland and the United Kingdom after 1 February , 1973 , when the reference
prices for wine became applicable in the new Member States , Indeed , if the
reference prices had been applied immediately to that product then , bearing
in mind certain questions of competition and quality , this product would
probably have disappeared from the British market . However , in order not
to prolong indefinitely an arrangement which would seriously jeopardize
attainment of the objectives of the common organization of the market , in
particular as such special arrangements would be bound to create a precedent ,
provisions should be adopted by Cyprus so that the rules governing Cyprus
Sherry could as quickly as possible be aligned with the general rules laid
down by the Community wine regulations .
      This is why the opening of the provisional special arrangements was
made subject to the enactment and bringing into force by    Cyprus , during
a given period , of wine rules conforming with those in force within the
Community.
      As a result of this concern not to interrupt traditional trade flows
and deliveries on the Irish and British markets in similar Community wines
during the period over which "Cyprus Sherry" benefits from the special
import terms , the volume of imports subject to those arrangements was
limited , in the exchange of letters , to the level actually imported in
previous years ( 200»000 hectolitres ). The Council also laid down measures
to enable similar Community wines to be sold on the relevant markets in
conditions of balanced competition with the Cyprus wine .
 ---pagebreak---                                    - 2 -
      The object of Regulation ( EEC ) No 1253/73 was to implement , from
1 February to 31 December 1973 , the relevant provisions of the Agreement
between the Community and Cyprus as set out in the above mentioned exchange
of letters * The Regulation also makes provision for extending the special
arrangements for a period such that they could be applied to the 1974
harvest , upon condition that the legislation to be enacted before
1 September 1973 by Cyprus was in conformity with the Community rules .
     Analysis , now in progress , of the legislation enacted by the Republic
of Cyprus on 31 August has shown that in certain aspects it does not conform
with Community legislation , so that Article 6 of Regulation EEC No 1^53/73 ,
which sets up such conformity as a condition precedent for the extension ,
cannot be used as a basis for extending the present arrangements . In the
meantime contact has been made with the Cyprus authorities in order to
find out how far it is possible to make the necessary changes so that the
rules would conform with Community rules . Pending results of the research
being carried out with the authorities , who are being most cooperative in
this respect , from which one assumes that the necessary conformity will
be achieved, the present arrangements should be extended on the basis of
Article 43 of the Treaty. This would avoid any unwarranted sudden
interruption in trade if the Cypriot authorities , as may reasonably be
expected , quickly made the necessary changes in their laws in order to
make them conform with Community rules .
 ---pagebreak---                               FINANCIAL EFFECTS
1 . It follows from what has already been said that if the reference price
     was applied , involving collection upon imports of " Cyprus Sherry" on a
     countervailing charge pursuant to Article 9(3 ) of Regulation ( EEC )
     No 816/70 of some 50 u.a. /iil, it would "be virtually impossible to import
     this product to Ireland and the United Kingdom . Consequently ,
     non-application to this type of wine of a countervailing charge - which
    •corresponds to an agricultural levy for the purposes of Article 2(a ) of
     the Decision of 21 April 1970 on the replacement of the Member States'
     financial contribution by the Community 's own resources - would have
    virtually no effect on the total amount of income obtained from applying
     the countervailing charges on wine .
2 . The financial effect of the scheme of subsidies for deliveries of
     Community wines similar to " Cyprus Sherry" largely depends on the list
     of wines referred to in Article 5 of the proposal . This list will be
     drawn, up by the Commission , after receiving the Opinion of the Management
     Committee . As a guideline , based on the Commission departments' draft which ha
    not yet been submitted for the Opinion of the Management Committee , the
     amount of the subsidy will be 37 u.a. /hl and it can be expected that the
    quantity of wine concerned will , assuming an optimistic estimate , be
     equivalent to exporta of liqueur wines which are not covered by a
    registered designation of origin from the Community of Six to third
     countries , i.e. , for 1971 f 3»900 hi . In this case the cost would be
    145»000 u e a. for the period of the application of the proposed regulation
     (l January to 31 December 1974 )* The way in which this expenditure is
    to be financed by the Community will be made clear in a proposal for a
    Regulation to be put forward subsequently.
 ---pagebreak---                               ■ proposal for a
                    REGULATION ( EEC ) OP THE COUNCIL
 extending the arrangements made by Regulation ( EEC ) No 1253/ 73 on imports
           of the wine product exported under the label of
" Cyprus Sherry", originating in and coming from Cyprus , and the introduction
           of subsidies for similar wine products produced
in the Community as originally constituted and exported to Ireland and the
                              United Kingdom                   1
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 43 thereof !
Having regard to the proposal from the Commission !
Having regard to the Opinion of the European Parliament !
Whereas Regulation ( EEC ) No 1253/73       introduced arrangements for imports
of the wine product exported under the label of " Cyprus Sherry", originating
in and coming from Cyprus    and subsidies for similar wine products produced
in the Community as originally constituted and exported to Ireland and the
United Kingdom ;
Whereas these arrangements are applicable until 31 December 1973 !      whereas ,
however , pursuant to Article 6 of Regulation (EEC ) No 1253/73 » if , before
1 September 1973 , the Republic of Cypms enacts legislation on wine
production which is in conformity with Community rules applicable to products
similar to the products specified in Article 1 , the Council , acting on a
proposal from the Commission in accordance with the voting procedure laid
down in Article 43(2 ) of the Treaty, is to take all necessary steps to ensure
that the arrangements are extended in accordance with the terms of the
                    (2
exchange of letters annexed to the Protocol laying down certain provisions
relating to the Agreement establishing an association between the European
Economic Community and the Republic of Cyprus following the Accession of
new Member States to the European Economic Community !
                                                                        /•••
J^OJ   No L133, 21 May 1973, P. 115
^ 'OJ No L133 , 21 May 1973, P. 95
 ---pagebreak--- Whereas on 31 August the Republic of Cyprus adopted new rules governing
wine and on lo October sent texts for perusal by the Commissionj
Whereas , however , consideration of these texts is not yet far enough
advanced for a decision finally to be taken on whether the legislation
enacted by Cyprus is in conformity with Community rules 5
Whereas the legislation enacted should therefore be examined with the
authorities of Cyprus with a view to making any necessary changes thereto ;
Whereas the Cypriot authorities have declared their willingness to
collaborate with the Commission in order to seek the best ways of applying
the exchange of letters referred, to above ;
Whereas in the meantime any interruption in the arrangements applicable to
imports of the relevant products into the United Kingdom and Ireland should
be avoided s
 ---pagebreak---                                     - 3 -
 HAS ADOPTED THIS REGULATION :
                                Article 1
        For the period frora 1 January to 31 December 1974 , the countervailing
charge provided for in the first subparagraph of Article 9(3 ) of Regulation
 (EEC ) NO 8l6/70       as last amended by Council Regulation ( EEC ) No 2593-/73^^
of 24 September 1973 > shall not be levied on imports into Ireland and the
United Kingdom of the wine product exported under the label of "Cyprus Sherry"
originating in and coming from Cyprus up to a maximum amount of 2000,000
hectolitres .
                                Article 2
1 . The amount of 200,000 hectolitres fixed in Article 1 shall be divided
    into two quotas , the one of 2,000 hectolitres for Ireland and the other
    of 193,000 hectolitres for the United Kingdom ,
2 . The said Member States shall ensure that all importers of the relevant
    product established in their territory have free access to the quotas
    attributed to them .
3 . The extent to which the quotas of these Member States have been used up
    shall be assessed on the basis of imports of the product in question
    passed through customs under cover of declarations that it has been
    released for consumption .
4* The Member States concerned shall inform the Commission at regular
    intervals of imports from Cyprus actually set off against their quotas .
                                Article 3
           VJine products imported into the United Kingdom and into Ireland
free of countervailing charge , pursuant to Article 1 , may not be exported
to other Member States .
^OJ No L 99 , 5 May 1970, p. 1
^^OJ No L259 , 26 September, p.l
 ---pagebreak---                                    - 4 -
                                 Article 4                                         I
 1 . Subsidies shall be granted, in respect of exports effected fro :.!
     1 February 1973 to 1 December 1974 to Ireland and the United Kingdom
     of wine products produced in the Community as originally constituted
     which are similar to the wine product exported under the label of
     " Cyprus Sherry".
 2 . The subsidies referred to in paragraph 1 shall be calculated on the
     basis of the difference , on the markets of the Member States referred
     to in paragraph 1 , between the prices of these Community wine products
     and the price of the wine product exported under the label of " Cyprus Sherri 1
                                 Article 5
        Detailed rules for the application of this Regulation , in particular
those concerning the amount of the subsidy and the Community wine products
eligible for aid , shall be adopted in accordance with the procedure laid
down in Article 7 of Regulation No 24 on the progressive establishment of a
common organization of the market in wine
                                 Article 6
        This Regulation shall enter into force on the third 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
                                                           The President
^ 'OJ Ko 30, 20.4.1962 , p. 939/62