CELEX: 51993PC0507
Language: en
Date: 1993-10-21
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2076/92 fixing the premiums for leaf tobacco by group of tobacco varieties and the processing quotas allocated by group of varieties and by Member State

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                   COMVIISSION OF THE EUROPEAN COMMUNITIES
                                                                C0M(93) 507 final
                                                                Brussels, 21 October 1993
f&.                                              Proposal for a
                                            COUNCIL REGULATION (EEC)
                          amending Regulation.(EEC) No 2076/92 fixing the premiums for
                      leaf tobacco by group of tobacco varieties and the processing quotas
                               allocated by group of varieties and by Member State
                                         (presented by the Commission)
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 ---pagebreak---                               EXPLANATORY MEMORANDUM
For the 1994 tobacco harvest, the guarantee thresholds (quotas) were allocated by
variety group and by Member State in accordance with Council Regulation (EEC)
No 2076/92 of 30 June 1992. Subsequently, the situation on the Community and
international markets for tobacco has changed. The allocation of the guarantee
thresholds has therefore to be adjusted to the current market conditions, whilst
the total quantities allocated to the various Member states are maintained
unchanged.
This measure must be taken at Community level, since this is an area in which
only the Community has power to act. Its intensity and proportionality are
described in detail below.
The current world market situation shows a surplus supply of flue-cured tobacco
and an increase in stocks of this type of tobacco. Over the past year, prices
for this tobacco have fallen substantially. In spite of a reduced level of
production planned by certain producer countries, the supply of tobacco to the
world market in 1994 will exceed demand. As far as Community production is
concerned, the guarantee threshold for flue-cured tobacco should therefore be
maintained at its current level or provision made, at the very most, for very
moderate increases.
As far as light air-cured tobacco is concerned, the world market is also in
surplus, but to a lesser extent than in the case of flue-cured tobacco. Modest
increases may therefore be envisaged for this type of tobacco if a demand to this
effect is made.
As far as dark air-cured tobacco is concerned, some demand is noted for tobaccos
of a suitable quality for industrial purposes. Production of high-quality
tobacco of this type may therefore be maintained at its current level or even
increased at the expense of other types of varieties in certain community
countries.
Production of fire-cured tobacco is limited. These special tobaccos are produced
by few countries in the world and demand for them is stable. It is therefore
desirable that, the threshold quantity be maintained at around its current level
in order to permit conversion to this type of tobacco.
As far as sun-cured is tobacco is concerned, the market is stable for the
aromatic varieties in demand (Basmas, Katerini). In the case of lesser-quality
sun-cured tobacco, the world market is relatively firm as a result of a dramatic
decline in production in the East European countries. A certain demand is
anticipated for such tobacco. Production should therefore be maintained more or
less at its current level, with a tendency towards conversion to the Basmas and
Katerini varieties for which there will continue to be world demand, even if
producers prefer tobaccos requiring less labour-intensive production.
 ---pagebreak---                                  Proposal for a
                          Council Regulation (EEC) No
                                       of
         amending Regulation (EEC) No 2076/92 fixing the premiums for
     leaf tobacco by group of tobacco varieties and the processing quotas
              allocated by group of varieties and by Member state
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to council Regulation (EEC) No 2075/92 of 30 June 1992 on the
common organization of the market in raw tobacco*, and in particular
Article 9(2) thereof,
Having regard to the proposal from the Commission^,
Having regard to the opinion of the European Parliament^,
Whereas Council Regulation (EEC) No 2076/92 of 30 June 1992 4 fixes the
guarantee thresholds by group of varieties and by Member State for the 1994
harvest; whereas market conditions have changed since then; whereas this
should be taken into account by adjusting the various guarantee thresholds
to the foreseeable possibilities of disposal while maintaining unchanged the
total quantities allocated to the Member States,
1  OJ No L 215, 30.7.1992, p. 70.
2
3
4  OJ No L 215, 30.7.1992, p. 77.
 ---pagebreak---                                     -3-
HAS ADOPTED THIS REGULATION:
                                 Article 1
In Annex II to Regulation (EEC) No 2076/92, the table "GUARANTEE THRESHOLDS
1994" is hereby replaced by the table in the Annex hereto.
                                 Article 2
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                                 For the Council
 ---pagebreak---                                                             A M N E X
                                                   GUARANTEE THRESHOLDS 1994
 |           I             I            I           I             I          J            Other                |_         |
 I          I       I     I       "    I     "I    I     IV      j      V    |         |          |           |   TOTAL  j
 |           | Flue cured | Light      |     Dark   | Fire cured | Sun cured |   VI     |  VII    |    VIII   | (tonnes) |
 |          |              | air cured | air cured  |             |          | Basmas  | Katerini | K. Koulak |           |
 | Italy    |    48.000   j    45.500  |    17.200  j   8.100     j   14.000 j         j          j           j 132.800  j
 | Greece   j    30.000   j    12.400  j            j             j   16.000 j  26.300 j  22.000  j   20.000  j 126.700  j
 j Spain    j    28.300   j     2.470  j   11.500  j       30    j           j         j          j           j   42.300 j
 | Portugal j     5.500   j      1.200 j            j             j          j         j          j           j    6.700 j
 j France   j     8.300   |     7.300  j   12.000  j             j           j         j          j           j   27.600 j
 j Germany  j     3.000   j     4.500  j    4.500  j             j           j         j          j           j   12-000 j
 j Belgium  j             j        200 j     1.700 j             j           j         j          j           j    1.900 j
 j          j 123.100     |    73.570  j   46.900  j   8.130     j   30.000  j  26.300 j  22.000  j   20.000  j 350.000  j
J           I             I            I           I             I           I         I          I           I          L
 ---pagebreak---                                                         t>
      FINANCIAL                      STATEMENT
                                                                      DATE:
1. BUDGET HEADING: 171                                                APPROPRIATIONS: ECU 1 268 million
2. TITLE: Proposal for a Council ReguUition amending Regulation (EEC) No 2076/92 fixing the premiums for leaf
           tobacco by group of tobacco varieties and the processing quotas allocated by group of varieties and
           by Member State.
3. LEGAL BASIS: Council Regulation (EEC) No 2075/92
4. AIMS OF PROJECT: New allocation of quotas for 1994
                                   Period of 12 months   Current Financial Year    Following Financial Year
5.  FINANCIAL IMPLICATIONS                                       1993                        1994
5.0 EXPENDITURE
    - CHARGED TO THE EC BUDGET
    - (REFUNDS/INTERVENTION)          ECU 0.7 million
     - NATIONAL ADMINISTRATION
     - OTHER
5.1 REVENUE
    - OWN RESOURCES OF THE EC
       (LEVIES/CUSTOMS DUTIES)
     - NATIONAL
                                          1995                 1996              1997                1998
5.0.1 ESTIMATED EXPENDITURE          ECU 0.7 million
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:
     See attached calculations.
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIAT IONS 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 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                            NO
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                       YES
OBSERVATIONS:
 ---pagebreak---                                                     CAXCOLATIOH OF TBB COST OF TBB PROPOSES AMEMDMBBT TO 1994 QUOTAS
                                    | Production  |      QUOTA       |     QUOTA         |                   |  Reform premiums  |                    |       Cost
              VARIETIES             |    area    |    94 Reform     |        94         |     Difference    |       0.966912    |     Cost           |      by group
                                                           T
                                    I            I                  I  New proposal     |         T         | with realignment  | A ECU million      |  A ECU million
                                    i            I                  I                   I                   I        ECU/t      |                   |
I    FLUE CURED                     !            |      121.600     j      123 .100     j                   |                   j               3,7  |                3,74
     Virginia                       I     GR     |       29.000     I       30.000      I        1.000      I        2.468      I        2,5        I
                                           E
                                    I            I       28.300     |       28.300      |              0    |        2.468      |        0,0        |
                                           F
                                    I            I        5.500     |        5.500      |              0    |        2.468      |        0,0        |
                                    I       t    I         2.500    |         3.000      !           500    |         2.820     |         1,4       |
                                           r
                                    I            I        8.700     |        8.300      |         -400      |        2.820      |       -1,1        |
                                    I       '    I       47.600     |       48.000      |            400    |         2.468     |         1,0       |
II   LIGHT AIR CURED                J            j        77 .370   j        73.570     \                   j                   I             -8,7 !                -8 57
                                           p
                                    I            I        1.200     |        1.200      |              0    |        1.974      |        0,0        |
                                           E
                                    I            I        4.970     |        2.470      |       -2.500      |        1.974      |       -4,9        |
                                    I       -    I       45.000     |       45.500      |            500    |         1.974     |         1,0       |
                                          GR
                                    I            I       12.300     |       12.400      |           100     |        1.974      |        0,2        |
                                           :
                                    i            j        6.000     |        4.500      j       -1.500      j        2.591      j       -3,9        ]
                                    I     B
                                                 I                  I           200     |           200     |        2.591      |        0,5        |
                                                                                                                                                                                       °\
III  DARK AIR CURED                 |            |        42.600    j        46.900     |                   !                   j               9,1  j               9,10
                                    !       D     |        3.500     |        4.500      j        1.000      j        2.360      j        2,4        j
                                          r
                                    I            I       11.000     |       12.000      |        1.000      |        2.261      |        2,3        |
                                           B
                                    I            I        1.900     |        1.700      |         -200      |        2.261      |       -0,5        |
                                           :
                                    I            I       17.200     |       17.200      |              0    |        1.974      |        0,0        |
                                    I       E    |         9.000    |       11.500      |        2.500      |         1.974     |        4,9        |
IV   FIRE CURED                     |            |         9.030    |         8.130     |                   |                   |             -2,0 |                -1,95
                                           :
                                    I            I        9.000     |        8.100      |         -900      |        2.171      |       -2,0        |
                                           E
                                    I            I            30    I            30     |              0    |        2.171      |        0,0        |
V    SUN CURED                      |            |        30.400    |        30.000     |                   |                   |             -0,8 |                -0,79
                                    I       I    I       14.000     |       14.000      |              0    |         1.974     |        0,0        |
                                    I     G£     I       16.400     |       16.000      |          -400     |         1.974     |       -0,8         |
VI   Basmas                         |     GR     |       26.500     |       26.300      |          -200     |        3.257      |             -0,7 |                -0,65
VII  Katerini and similar varieties |     GR     |       22.500     |       22 . 000      |         -500     |        2.763      I             -1,4 I                -1 38
VIII Kaba Koulak (classicl          |     3R     |       20.000     |       20.000      |              0    |        1.974      |               0,0 |                0 00
                                    I            |      350.000     |      350.000      I                   I                   I                    I        -0,61
                                                                                                                                                                           A ECU million
                                                                                                                                                             1.2 07        D.R.
                                                                                                                                                              -0,74        B ECU million
 ---pagebreak---                                               ?*
                                                                     ISSN 0254-1475
                                                              COM (93) 507 final
                                                      DOCUMENTS
EN                                                                             03
                                 Catalogue number : CB-CO-93-543-EN-C
                                                             ISBN 92-77-59908-1
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