CELEX: 51977PC0553
Language: en
Date: 1977-10-31
Title: Proposal for a COUNCIL REGULATION amending Regulation (EEC) No 1035/72 on the common organization of the market in fruit and vegetables and Regulation (EEC) No 2601/69 laying down special measures to encourage the processing of certain varieties of oranges (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 553
Vol. 1977/0181
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(77)553 final
                                                Brussels , 31 October 1977
                            Proposal for a
                          COUNCIL REGULATION
                amending Regulation ( EEC ) No 1035/72 on
                the common organization of the market in
                fruit and vegetables and Regulation ( EEC )
                No 2601/69 laying down special measures
                to encourage the processing of certain
                varieties of oranges
            ( submitted to the Council by the Commission )
 COM(77 ) 553 final
 ---pagebreak---                                    EXPLANATORY MEMORANDUM
   ST rBJBCT s Proposal for a Regulation amending Regulation ( ESC ) No 1035/72 on the
                 common organization of the market in fruit and vegetables and Regulation
                 (EEC ) Mo 2601/69 laying down special measures to encourage the processing
                of certain varieties of oranges *
 Council Regulation (EEC ) Fa 1035/?2 of 18 May 1972 on the common organization
 of tho market in fruit and vegetables , as last amended by Regulation (ESC )
 No 1034/77 ? does act fix the dates of the beginning and end of the marketing
yaare or seasons for products subject to the intervention system or for products
 for which there is a reference pries .
Experience acquired in particular when the representative rates for the various
currencies were adjusted has proved the need to fix marketing years or seasons
for these products®
With respect to table grapes , there is considerable overproduction which may result
either in massive withdrawals or in the making: of wine           which is then turned
into alcohol in undeBirabla quantity         .  Pending the results that the Council
measures          to remedy the Eituation will no doubt have , it seems advisable to
take steps to establish a balance between the price the producer would obtain for
his table grapes if they go to intervention and their price if used for making wine .
                                    er •
StJch a balanoe oould be achieved by applying conversion factors in the oaloulation
of the withdrawal prioe , and it is proposed to amend Regulation (EBC ) No 1035/72
to this effect .
 ( l ) Council Regulation (EEC ) No ll6$f]6 of 17     May 197 " on the granting of
        a conversion premium in the wine sector
         ( OJ No L 135t 24.5.1976 . p. 34 )
 ---pagebreak--- W3tlx respect to refsrenca prices for products subject to financial compensation,
wader Council Regulation (EEC ) NO 2511 /S9 of 9 December 1969 laying down special
measures for improving "the production and marked lag of Community citrus fruit 9
-the link that has "been mad© between changes in the base and purchase prices ,
changes in financial compensation and changes in the reference prices has tended to
©rod® Community preference and it would seem as weli to remedy the situation®
The fixing of a eingl® countervailing charge where the prices of a given product
 entering from several non–member countries are below the reference price has led 9
 in particular at the beginning of the 1977 marketing year, to repeated changes in
 the countervailing charges . Such a situation can only engender uncertainty and
 confusion and it is proposed that the situation relating to each provenance should
 be treated separately and , if appropriate , the countervailing charge should b«
 fixed at a suitable level for each one and treated separately.,
 It is stipulated in Council Regulation (EEC ) No 2601 /69 of 18 December 1969 laying
 down special measures to encourage the processing of certain varieties of oranges ,
 as last amended by Regulation (EEC ) No 2483^5 , that one of the factors to be used
 in oalculing the financial compensation to be granted to processors is "the price
 processors usually pay for their supplies , siich a price being calculated on the
 basis of the prices prevailing in th® industry during the three marketing years
 preceding the one for which that compensation is granted", th® other factor
 being the ' "minimum price" to be paid by processors for the oranges which they buy®
                                                                               ./<
 ---pagebreak--- Initally reserved for tonnage ia excess? of th<3 average quantities processed during
the three marketing years preceding 1969/ 70 9 the granting of financial compensation
was extended in 1975 to all the quantities of products processed toy processors®
Since then , the concept of "price processors usually pay for their supplies " has
tended to "become merged with that of "minimum price ", which would have the effect ,
on the basis of th© present text , of reducing the financial compensation to a
derisory amount#
In order to ensure that Regulation (ESC ) No 2601 /69 retains its practical effects ,
the orit aria for fixing the finanolal compensation should "be altered .
 ---pagebreak---                   PROPOSAL FOR A COUNCIL REGULATION
amending Regulation (EEC ) No 1035A2 t-be eommon. organization of the market
in fruit and vegetables and Regulation (EEC ) No 2601 /69 laying down special
measures to encourage the processing of certain varieties of oranges
                                        THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
                                        Having regard to the Treaty establishing the
                                        European Economic Community, and in particular
                                       As"fciole  43 thereof ,
                                        Having regard to the proposal from the Commission ,
                                        Having regard to the opinion of the European
                                        Parliament ,
Whereas Council Regulation (EEC ) NO 1035/72 of 18 May 1972 on the common organi­
 zation of the market in fruit and vegetables 1 , as last amended by Regulation
 (EEC ) No 1034/7 72, does not fix the dates of the beginning and end of the marke~
 ting years or seasons for fresh fruit and vegetables produoed in the Communityj
 whereas experience has shown the need , in particular when the representative
 rates for the various currencies are adjusted , to fix marketing periods at least
 for products subject to the intervention system or for which there are referenoe
 prioes j
 Whereas Article 16 (4 ) of Regulation (EEC ) No 1035/72 provides that the price
 at which the products subject to intervention are bought in pursuant to
 Article 19 shall be oaloulated by applying conversion factors to the buying~in
 price ? whereas , with respect to grapes , there are structural surpluses of this
 product for which corrective measures have already been taken; whereas , pending
 the results of these measures 9 conversion factors should be applied to the
 buying-in price to maintain a balance between the intervention price for table
 grapes and the price obtained by th® producer for that s&ra® product when intended
  for wine -making s
   1 ) OJ No L 118 , 20,5.1972 , p « 1
   2 ) OJ No L 125s 19.5*1977 » P. 1
 ---pagebreak---                                                                              2.
Whereas Article 23 of Regulation (EEC ) No 1035/72 lays down the criteria for fixing
reference prices ; whereas in the case of" products qualifying Tinder the system of
financial compensation provided for in Council Regulation (EEC ) No 2511 /69 of
9 December 19 69 laying down speoial measures for improving the production and
marketing of Community citrus fruit      as last amended "by Regulation (EEC )
             ( 2)
No 1034/77 1 reference prices are fixed at the same level as for the previous
marketing year , and may be adjusted by a percentage not exceeding the dif­
ference between the percentage change in the base and purchase prioes and the
percentage change in financial compensation compared with the previous marketing
year ; whereas the way in whioh the system has been applied has eroded Community
preference for the products oonoerned ; whereas this situation should be
remedied by measures providing for an appropriate inorease in referenoe prices ,
account being taken of the inorease in financial compensation;
  ( 1 ) OJ No L 318, 18.12.1969 / p. 1
  ( 2) OJ No L 125, 19 . 5.1977, P. 1
                                                                               /.
 ---pagebreak--- Whereas Article 25 of Regulation (EEC ) No 1035/72 provides that *& 3re it would
be appropriate to apply a countervailing charge in respect of a number of
exporting countries for the sa®@ product and the sane periodj a single charge
shall be applied in respect of those countries unless the entry prices for one
or more of those countries are abnormally low in relation to entry prices
recorded for the other exporting country or countries concerned ; whereas recent
experience has shown that application of these provisions results in repeated
adjustments . to the countervailing charge ^ causing uncertainty among
traders s whereas this                  > oould be prevented if the situation of each
exporting country were treated separately! whereas 9 appropriate measures should 9
therefore - be provided forj
Whereas Council Regulation (EEC ) No 2601 /69 of 18 December 1969 laying down
special measures to encourage the processing of oertain varieties of oranges ,
as last amended by Regulation (EEC ) No 2483/T22 , lays down the criteria on the
basis of which the financial compensation granted to processors is fixed ;
whereas one of these criteria is the prio© which processors usually pay for their
 supplies , which is calculated on the basis of the prices prevailing in the
 industry during the three marketing years preceding the one for which financial
 compensation is granted | whereas , following the extension of the granting of
 financial compensation to include all quantities of oranges bought by the industry,
 the prices prevailing in the industry are tending to become identical to the
 minimum price | whereas new criteria should therefore be laid down for fixing the
 financial compensation! whereas these criteria should establish a direct relation­
 ship between the movement of th® minimum price and changes in the proportion of
 that price whioh is payable by the processor ,
                                 HAS ADOPTED THIS REGULATION t
  Article 1
             The following paragraph 3 is added to Article 1 of Regulation (EEC )
  No 1035A2 1
  M3„ The marketing years or seasons shall be as follows S
  – for tomatoes and cucumbers , from 1 January to 31 December ,
  – for cherries , from 1 April to 30 September ,
  – for peaches , from 1 May to 31 October,
  – for cauliflowers and grapes ^ from 1 May to 30 April of the following year,
  – for plums , from 1 June to 31 October ,
  – for pears and lemons , from 1 June to 31 May of the following year,
   ( 1 ) OJ No L 324 , 27.12,1969 » P® 21
   (2 ) OJ No L 254 » 1 « 10.1975 , P* 5
 ---pagebreak---                                                                                 4
– for apples , from 1 July "to 30 June of the following year ,
– for oranges , from 1 October to 30 June of the following year ,
– for mandarine ( inoluding tangerines and satstunas ) , Clementines , wilkings and
   other similar citrus hybrids , from 1 November to 30 April of the following
   year.: „
               For the other produots , the marketing years or seasons shall be
determined , if neoessary , in aooordanoe with the prooedure laid down in Article 33 . *
Article 2
          The third subparagraph of Artiole 16(1 ) of Regulation (EEC ) No 1035/72
is amended to read as follows t
" In determining the period for which these prioes are to apply , slaok market pe­
riods at the beginning and at the end of the marketing year shall be be disregarded'
Article 3
          The following subparagraph is added after the seoond subparagraph of
Article 16 (4 ) of Regulation (EEC ) NO 1035A2 *
"With respeot to table grapes , the conversion faotors shall be so fixed as to
 maintain a balanoe between the price at whioh the product is bought in under .
 Artiole 19 and . the prioe obtained for grapes produced with a view to the
 obligatory distillation of wine made from table grapes ***
 ---pagebreak--- Article 4
        Article 23(2) of Regulation (EEC) Ho 1035/72 i» tended to read as follows
"2. Reference prices shall "be fixed *
   _ on the basis of the arithmetic Bean of producer prices in each Member State
      plus, with respect to products subject to the System of financial ccmpei*-
      sation provided for in Article 8 of Hegulation (EEC) Ho 2511/69. «>•
      amount defined in paragraph 4 ,
    . account being taken of the average changes in the base and purchase prices.
         However, if application of the above criteria to product, subject to
 the system of financial cessation provided for in Article 8 of Regulation (MB)
 Ho 2511/69 results in an increase in reference prices, this increase shall be
 limited to the difference between the amount of the increase arising from appli­
 cation of the said criteria and the amount of the inorease in financial compensat­
 ion compared with the previous marketing year."
 Article 5
  1 . Paragraph 2 of Articles 25 and 25a of Regulation (BSC) *Fo 1035/72 is deleted.
 Paragraph 3 of these Articles -becomes paragraph 2.
  2. The first subparagraph of Article 26(1 ) of Regulation (EEC) HO 1035/72 is
  amended to read as follows t
      -Where, after the charge introduced under Article 25 has come into effect,
       there are changes in the items used to calculate it , saoh changes shall
       not be taken into account unless and until thejr result in a change over
       three successive market days of more than 1 unit of account in the said
        chargea ™
                                                                               •Λ
 ---pagebreak--- Article 6
          Article 3(1 ) of Regulation ( EEC ) No 2601 /69 is amended to read as follows l
" 1 . Member States shall grant financial compensation to those processors who
      have concluded contracts in accordance with the provisions of Article 2 *
          The finanoial compensation shall be fixed so that the difference between
the minimum price and the financial compensation does not vary in relation to that
recorded for the previous marketing year by a percentage exceeding the percentage
variation in the minimum price *
          The finanoial compensation shall be paid to those concerned at their
                     i
request as soon as the supervisory authorities in the Member State where processing
is oarried out have ascertained that the produots under oontraot have been processed .
          The amount of such finanoial compensation shall be fixed before the beginning
of each marketing year *"
Artide 7
          This Regulation shall enter into foroe on the third day following its
publication in the Offioial Journal of the European Communities .
          Artiole A shall , however, for the 1977/78 marketing year apply only to those
referenoe prioes 'which have not yet' been fixed at the date of entry into, force of this
Regulation*
          This Regulation shall be binding in i'ts entirety and direotly applicable in
all Member States *
                                                 Done at Brussels
                                                 For the Counoil
                                                 The President
 ---pagebreak---                                                                                                    rj., s ^d / rù / 7 ?
                                                                                                Γ:
   - r " TJ.-NRR'' J: ■ 'i» : ..SVJJI        ^
| lo BUr/U/T LI N 5 GOHCfcTCJEP 3                                          Chnpt-er' 10 1 Chapter 68 , item 5813
                                                                                                                                              J
*fV2?/r
    *' ^Topolal for a Council Reflation amending Beg. (EEC ) Ko 1035/ 72 on the co^on
             organization of the market in -fruit and vegetables and Reg. ( bSu ) No 2o^ ./oy
             laying down g^ecial^m^^-aveF! ^processing of certain | varieties
    3 . LEGAL BASIS t
                                                      Article 43 of the Treaty
                                                                                  ■                       ;                                       ,
    4' <fnt<roduct ion of dates for the beginning and end of the marketing year or season
              for certain products ; change in. the method of calculating tiie financial                                                          |
              compensation to be granted to processor^ • of oranges 0                                                                             l
                                                                   .          _          „   ,
  MKWi
     5 . FI NANCI AL CONSEQUENCE                             FOfc    MARKETXWÖ TSAR I SUïfREfJ? FZHAHCZAJ» TEAJR I fcllow.no ki,'ja.'jcx..l ran
     5.0 EXF ". IDXTVHE
                                                                                             JLjlLL
              -CIIARGED TO THR EC BUDGET
                                                                      negligible               negligible                 negligible            ■ j
                  ( RiJ-UlJlÆ/l'JTEfiVIi'JTIOHS )
              «CHAH CED TO NATIONAL ADtaWISTR .,
              –CHAKCED TO OTHEH NATIONAL OROUFS
    5.1 RECEIPTS
              –own rkiouiwïs op tüe ec                                negligible                negligible                negligible               4
                  ( LEVIES/CUiJTOWl DUTIES )
              -NATIONAL
                                                 MJLUUUMSRS
                                                             TEAS                     YEAK                         TSAR
    5.0.1 PLURIA-VNUAti PATTERN OF EXPENDITURE
    5.1.1 PLURIANNUAI. PATTERN OF RECEIPTS
                                                                                               Negligible .
rww'Hi'iiw
     5.2 KETHOD OP CALCUUTION                                                              •     i       +     +),.>4*a« /.<al
            ' fa ) intervention 8 the change xn the method of calculating the financial
                                      ,      .        compensation is of a , technical nature fend therefore results
                                          -           in a negligible Change in the financial effeots .
                (b ) conteWailing . charge : these are also changes of a technical nature ; the
                                        ;             financial effects? therefore remain negligible .
    6.0 FINANCING POSSIBLE WITH CREDITS INSCRIBES IN RELEVANT CHAPTER OF CURRENT BUDGET 7                                     ÏES/ ttfc
    6.1 FINANCING POSSIBLE BY TRANSFER BETWEEN CHAPTERS OF CURRENT BUDGET ?                                                   YSS/tfO               |
    6.2 NECESSITY FOR A SUPPLEMENTARY BUDGET ?                   .
    6.3 CRZOITS TO BE WRITTEN INTO FUTURE BUDGETS 1                                                                           TEKS/NO
    COMXQtTS 9