CELEX: 51989PC0425
Language: en
Date: 1989-09-13
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) LAYING DOWN GENERAL RULES FOR IMPLEMENTING THE ACT OF ACCESSION OF SPAIN AND PORTUGAL AS REGARDS THE COMPENSATION MECHANISM ON IMPORTS OF FRUIT AND VEGETABLES ORIGINATING IN SPAIN ( PRESENTED BY THE COMMISSION )

COMMISSION OF THE EUROPEAN COMMUNITIES
                                      C0MC89) 425 final
                                      Brussels, 13 September 1989
                             Proposal for a
                       COUNCIL REGULATION (EEC)
            laying down general rules for implementing the
        Act  of Accession of Spain and Portugal as regards the
       compensation mechanism on imports of fruit and vegetables
                          originating in Spain
                     (presented by the Commission)
 ---pagebreak---                                                               (J^
                             EXPLANATORY MEMORANDUM
Article 131 of the Act of Accession of Spain provides that fruit and
vegetables falling within Regulation (EEC) No 1035/72 are subject to a regime
of specific transitional arrangements consisting of two phases.  Article 152
provides that during the second phase, which begins on 1 January 1990 and ends
on 31 December 1995, a compensation mechanism is to be introduced on import
into the Community of Ten for those fruit and vegetables coming from Spain for
which a reference price is fixed with regard to third countries.  The rules
governing the mechanism are laid down also.
The purpose of the attached draft Regulation is to establish general rules for
applying the mechanism.
In view of the similarity between the compensation mechanism on importation
and the reference price arrangements governed by Articles 23 to 27 of
Regulation (EEC) No 1035/72, the Commission is proposing to incorporate all
the technical, administrative and procedural provisions of the reference
prices arrangements, subject to certain specific provisions of Article 152 of
the Act of Accession.
                                                                             -s
 ---pagebreak---                                    Proposal for a
                                 COUNCIL REGULATION (EEC)
         laying down general rules for implementing the Act of Accession
          of Spain and Portugal as regards the compensation mechanism
             on imports of fruit and vegetables originating in Spain
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to the Act of Accession of Spain and Portugal,and in particular Article
89(1) thereof,
Having regard to the Commission's proposal,
Whereas Article 152 of the Act of Accession provides that from the beginning
of the second phase of the transitional period for Spain a compensation mechanism is to
be introduced on imports into the Community, as constituted on 31 December
1985, hereinafter referred to as the "Community of Ten", for fruit and vegetables for
which a reference price is fixed with regard to third countries;
Whereas among the measures necessary for implementing the mechanism, rules
should be laid down in particular for recording the producer prices for
products or varieties representative of the production marketed for the
purpose of calculating the Community offer price;     whereas it should be borne
in mind that the prices listed concern.     products packaged for transportation;
Whereas for the purpose of determining the Spanish offer price calculated each
marketing day on the basis of the representative rates recorded, the rates to
be regarded as such should be defined;     whereas in order to obtain a realistic
overview of the market situation, the rates to be used should      relate to a
significant proportion of the good- presented on the markets;      whereas consequently the
nature of the rates and the quancicy of products to be taken into
consideration for calculating the Spanish offer price should be specified;
                                                                                   3
 ---pagebreak---                                         - 2 -
Whereas where the offer price of the Spanish product is lower than the
Community offer price, compensation is to be achieved by levying a corrective
amount in accordance with Article 152(2)(d) and (e) of the Act of Accession;
whereas in order to enable the compensation mechanism to operate
satisfactorily under sound conditions and to-ensure that Spanish products are
not subject to more stringent arrangements than those applying to products
originating in third countries, provision should be made for the fixing or
discontinuance of: a corrective   amount  to  be based on the prices recorded
for several consecutive market days, and the method to be applied should be
defined;
HAS ADOPTED THIS REGULATION:
                                    Article 1
1.  The Community offer price, referred to in Article 152(2)(a) of the Act of
    Accession, applicable to the whole Community of Ten, shall be fixed for
    each marketing year or for each of the periods into which the year may be
     subdivided on the basis of seasonal price variations.   It shall be fixed
    before the beginning of the marketing year.   However, for the period from
     1 January 1990 to the end of the 1989/1990 marketing year, it shall be
     fixed before 1 January 1990.
                                                                               7
 ---pagebreak---                                                    - 3-
2.    The producer prices to be used for determining the Community offer price
      shall be those for a home-grown product with defined commercial
      characteristics, recorded on the representative market or markets situated
      in the production areas where prices are lowest, for the products or
     varieties which represent a considerable proportion of production marketed
      for part of the year or throughout the year and which fall within quality
      class I and satisfy specified requirements as regards market preparation.
     When the average of prices recorded on each representative market is being
      calculated, prices which could be considered excessively high or
      excessively low in relation to normal price fluctuations on the market
      shall be disregarded.
3.    The transport costs referred to in Article 152(2)(a) of the Act of
      Accecssion may be calculated on a flat-rate basis.
                                             Article 2
For the purpose of calculating the Spanish offer price referred to in Article 152(2) (b) of the Act of Accessions
the    Commission.shall,         on t h e b â s i s ' o f information supplied by .Member
States      or    data gathered by the Commission i t s e l f , regularly f o l l o w , for a
product         with defined commercial c h a r a c t e r i s t i c s , the trend of average
prices      for     products coming from Spain on a l l the representative markets of
the     Community      of Ten for which prices are a v a i l a b l e , namely the average
prices      on     the most representative import markets of the Member S t a t e s and
significant          prices recorded on other markets for large q u a n t i t i e s of those
products       or,    if there are no prices on the most representative markets,
significant          prices recorded on other markets for large q u a n t i t i e s .
                                                                                                      X
 ---pagebreak---                                         - 4 -
    The following shall be regarded as representative:
    -  the prices of class I products, provided that the quantities of this
       class represent not less than 50% of the total quantity marketed;
    -  the prices of class I products, together with, where the products in
       this class represent less than 50% of the total quantity, the prices,
       used as they stand, of class II products in respect of the quantity
       that will cover 50% of the total quantity marketed;
    -  the prices, used as they stand, of class II products, in cases where
       there are no class I products, unless a decision is taken to multiply
       them by a conversion factor if, by reason of production conditions in
       Spain, such products have not, because of their quality, been normally or
       traditionally marketed in class I.   Where the prices are multiplied by
       a conversion factor, customs duties shall first be deducted.
                                    Article 3
Fo the purpose of implementing Article 152(2)(d) and (e) of the Act or
Accession, the following procedure shall be applied:
1.  If the Spanish offer price remains at least ECU 0 6 below the Community
    offer price for two consecutive market days, a corrective amount shall be
    introduced, save in exceptional circumstances.   This amount shall be equal
    to the difference between the Community offer price and the arithmetic
    mean of the last two Spanish offer prices available.
 ---pagebreak---                                    - 5 -
2. Where the Spanish offer price recorded during a period of 5 to 7
   consecutive market days is alternatively higher and lower than the
   Community offer price, and where Spanish offer prices higher or lower than
   the Community offer price are recorded during two consecutive market days
   without the provision contained in paragraph 1 being applied, a corrective
   amount shall be introduced, save in exceptional circumstances, in
   derogation from that paragraph and under the conditions laid down below.
   -  The corrective amount shall be introduced where three Spanish offer
      prices lower than the Community offer price are recorded and where one
      of the Spanish offer prices is at least ECU 0 6 lower than the
      Community offer price;
   -  The corrective amount shall be equal to the difference between the
      Community offer price and the last available Spanish offer price at
      least ECU 0 6 lower than the Community offer price.
3. The corrective; amount introduced pursuant to paragraphs 1 and 2 shall be
   the same for all Member States of the Community of Ten and shall be levied
   in addition to the customs duties in force.
4. The corrective amount introduced in accordance with paragraph 1 shall not
   be adjusted unless a change in the factors used in its calculation gives
   rise from the time of its actual application, during three consecutive
   market days, to an adjustment in its amount of more than ECU 0.6.
   A decision to abolish the corrective amount shall be taken where, from the
   time of actual application of   that  amount, the Spanish     offer
   prices for two consecutive market days are at least equal to the Community
   offer price or if there are no prices during six consecutive working
   days.  Such decision shall be taken also if the application of the first
   subparagraph results in a corrective amount of zero.
                                                                             }
 ---pagebreak---                                        - 6 -
5.  The corrective amount introduced in accordance with paragraph 2 shall be
     levied during 6 days.
     It shall be abolished prior to the expiry of that period only if:
     -  the application of paragraph 1 results in the fixing of a new higher
        corrective amount, or
    -   from the time of actual application of the corrective amount the
        Spanish offer prices during three consecutive market days are at least
        equal to the Community offer price.
                                     Article 4
1.  Detailed rules for the application of this Regulation and the Community
    offer price shall be adopted in accordance with the procedure laid down in
    Article 33 of Council Regulation (E£C) ,No 1035/72   .
2.  A decision to introduce, adjust or abolish the correctfc/e amount shall be
     taken by the Commission.
                                     Article 5
This Regulation shall enter into force on the day of 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
 (1) 0J No L 118, 20.5.1972, p.1.
                                                                             S
 ---pagebreak---             F I N A N C I A L                S T A T E M E N T
                                                                                      DATE
 1.     BUDGET HEADING:            1QQ0                                            APPROPRIATIONS:
 2.     TITLE:         Determination of the general implementing rules under the Spanish Act
        of Accession relating to the import compensation mechanism in the fruit and
        vegetable sector.
3.      LEGAL BASIS:       ArticLes      89(1)  and   1 5 2 o f the    Spanish Act Qf
                                                                                           Accession
4.      AIMS:       The measure aims to implement article 152 of the Act of Accession
                    relating to the import compensation mechanism
5.      FINANCIAL IMPLICATIONS:                     PERIOD OF 12 MONTHS CURRENT FINANCIAL YEAR FOLLOWING FINANCIAL YEAR
IMlfMMIMim                                                                        C89    )                ( '90 )
       nmMimifïiiiffiiï
          (munauniniit
       uintHfttfliHiua
       U i t i i l                                           p.m.                                          p.m.
5.1    REVENUE
        - OWN RESOURCES OF THE EC
           (LEviES)uiinimm
—   i, H I I I I I I I           i        «
5.0.1    ESTIMATED EXPENDITURE
5.1.1    ESTIMATED REVENUE
5.2      METHOD OF CALCULATION:
6.0     CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED I N THE RELEVANT CHAPTER OF THEN
       CURRENT BUDGET?                                                                                        YES*#
6.1     CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                              YESJWI
6.2     WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                            IHTN0
6.3     WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                      YES/i»
COMMENTS:
         The i n t r o d u c t i o n of an o f f e r p r i c e w i l l have the same e f f e c t as would a
         reference p r i c e .        I t may be necessary at some l a t e r date t o apply a c o r r e c t i v e
         amount t o imports from Spain i n t o the Community of Ten.
                                                                                                                  a
 ---pagebreak---                FICHE D'IMPACT SUR LA COMPETITIVITE ET L'EMPLOI
I.   Quelle est la Justification principale de la assure ?
         Mise en oeuvre de la seconde phase de l'adhésion de l'Espagne dans le
         secteur des fruits et légumes.
II.  Caractéristiques des entreprises concernées
     En parti cul 1er :
     - Y a-t-ll un grand nombre de P.M.E. ?       Oui
     - Note t'on des concentrations dans des régions :     Oui
        - AHglbles aux aides régionales des E.M. ?
        - éliglbles au Feder ?
III. Quelles sont les obligations i«posées directement aux entreprises ?
                     Néant
IV.  Quelles sont les obligations susceptibles d'être I«posées
      Indirectement aux entreprises via les autorités locales ?
                     Néant
V.    Y a-t-ll des mesures spéciales pour les PME ?     Aucune
      - lesquelles ?
VI.   Quel est l'effet prévisible ?
      - sur la compétitivité des entreprises ?       Néant
      - sur l'emploi ?       Néant
VII. Les partenaires sociaux ont-Ils été consultés ?     Non
      - avis des partenaires sociaux
                                                                          yjo
 ---pagebreak---                                                                              ISSN 0254-1475
                                                               COM(89) 425 final
                                                       DOCUMENTS
EN                                                                                 03 01
                                 Catalogue number : CB-CO-89-385-EN-C
                                                             ISBN 92-77-52723-4
Office for Official Publications of the European Communities
L-2985 Luxembourg
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