CELEX: 51977PC0703
Language: en
Date: 1977-12-16
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2727/75 on the common organization of the market in cereals#Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1418/76 on the common organization of the market in rice#Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2742/75 on production refunds in the cereals and rice sectors (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 703
Vol. 1977/0221
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 ---pagebreak--- COMMISSION OP THE EUROPEAN COMMUNITIES
                                                  COM(77)703 final.
                                                  Brussels , 16 December 1977
                   ,         Proposal for a
                        COUNCIL REGULATION (EEC )               •
 amending Regulation (EEC ) No 2727/75 on "the common organization of
                          the market in cereals
                             Proposal for a
                        COUNCIL REGULATION (EEC               )
 amending Regulation (EEC ) No 1418/76 on the common organization of
                           the market in rice
                             Proposal for a
                        COUNCIL REGULATION (EEC )
 amending Regulation (EEC ) No 2742/75 on production refunds in the
                        cereals and rice sectors
             ( submitted to the Council "by the Commission)
 COM(77 ) 703 final .
 ---pagebreak---                      EXPLANATORY ISKORAMJUM
The purpose of these ohree drafts is to reintroduce production refunds for
naizs groats and broken rice used for brewing and for quellraehl used in
baking .
There refunds were suppressed for groats in August 1975 and for quellnehl
in August 1974 • The European Court of Justice has recently ruled that such
suppression was contrary to the principles of equality and has charged the com­
petent institutions to take the necessary steps to remedy the situation .
The proposals have been drawn up with the court 's ruling in mind .
It is proposed that the rates of production refund for maize used for the
production of groats and meal intended for brewing , for broken rice intended
for brewing and for maize and wheat used for the production of quellmehl
intended for baking " should respectively be the same as those available
for maize , wheat or broken rice used for the production of starch .
The adoption of the proposed amendment to Regulation (SSC ) No 2742/75 is
dependent on the adoption by the Council of the proposed amendments to
Regulations Hos (ESC) 2727/75 and 1418/76 which both 'require the Opinion
of Parliament .
 ---pagebreak---                                          Proposal
                       COUNCIL REGULATION ( EEC )
amending Regulation (EEC) No 2727/75 on "the common organisation of the
                               market in cereals
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 Council Regulation (EEC ) No 2727/75      of 29 October 1975 on "the common
organisation of the market in cereals , as last amended "by Regulation (EEC ) No
          2)
1386/77      provides in Article 11 for a discretionary production refund for
certain products used for the manufacture of starch , of potato starch , or of
glucose by direct hydrolysis ; whereas starch may be in direct competition with
quellmehl used in baking or with maize groats and meal used in brewing;
Whereas in its judgements in cases 117/7^ and 16/77 and in cases 124/76 and
20/77 1 "the Court of Justice considered it inconsistent with the principle of
equality to grant a production refund in favour of certain products and not of
others competing for the same outlets ; whereas the Court of Justice held
that it is for the competent institutions responsible for the common agricultural
policy to take the necessary action ;
Whereas the introduction of production refunds for the products in question
constitutes a means of conforming with the Court 's conclusions t
HAS ADOPTED THIS REGULATION *
                                                                        ...  /
                                                                            / 6 O •
1 ) OJ No L 281 ,  1.11.1975 , p. 1
2 ) OJ No L 158 , 29 . 6.1977 , p. 1
 ---pagebreak---                                     Article 1
Article 11 ( l ) of Regulation (EEC) No 2727/75 shall be replaced "by the
following :
".1 A production refund may "be granted :
     ( a) for maize and common wheat used in the Community for the
           manufacture of starch and of quellmehl intended for "baking;
     ( b) for potato starch;
     ( c ) for maize groats and meal used in the Community for the manufacture
           of glucose "by direct hydrolysis ;
     (d) for maize used in the maize industry for the manufacture of maize
           groats and meal ( gritz) used "by the "brewing industry.™
                                    Article 2
This Regulation shall enter into force on 1 February 1978 .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels t                                          For the Council
                                                             The President
 ---pagebreak---                                          Proposal
                         COUNCIL ESOULATIOU ( EEC )
amending Eegulation (ESC) Ho 1418/76 on the common organisation of the market
                                      in rica
THE COdfCIL OF 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 ,
Ifhereas Council Eegulation ( EEC) STo     /77 of                     amending Be«rulation
 ( EEC) ¥0 2727/75 on the common organization of the market in cereals enables
a production refund to be granted on maize -used for the manufacture of groats
and meal used in brewing ;
Whereas such a production refund should also "be available for broken rice
used by the brewing industry for the production of beer , so as "to give it
the same advantages as starch and maize groats and meal ,                                 .
HAS ADOPTED TBIS BBOTLATIOH :
                                     Article 1
Article 9 ( l) of Council Regulation ( EEC ) No L418/76 of 21 June 1976 on the
                                               (?)
common organisation of the market in rice          , is hereby amended to read as follows j
1.     A production refund may be granted for broken rice used
       ( a) in the manufacture of starch
       ( b) by the "brewing industry for the production of beer.
                                     Article 2
This Regulation shall enter into force on 1 February "1970 .
This Regulation shall "ba binding in its entirety and directly applicable * -
all Member States .
Done at Brussels ,                                              Tbr the Council
                                                                 The President
1 } 0.T No L
2 ) OJ No L 166, . 25.6*1976, p tl .
 ---pagebreak---                           COUNCIL REGULATION ( EEC )
 amending Regulation (EEC ) No 2742/7? on production refunds in the cereals
                                    and rice sectors
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 Having regard to Council Regulation (EEC ) No 2727/75 of 29 October 1975 on
 the common organisation of the market in cereals            as last amended by
 Regulation ( EEC)No 1386/77          and in particular Article 11 ( 3) thereof,
 Having regard to Council Regulation (EEC ) No I4I8/76 of 21 June 1976 on the
 common organisation of the market in rice            as last amended by Regulation ( EEC )
H58/77 4),                particular Article 9 ( 2) thereof,
 Having regard to the proposal from the Commission ,
 Whereas , in view of the possibility of substitution in baking between starch
 and quellmehl , the level of the refund to be granted on maize and common wheat
 used for the production of quellmehl destined for use in human food should be
 such as to achieve a balance between the cost of supplying the bakery industry
 with starch or quellmehl ; whereas this objective would be achieved by fixing
 the production refund on maize and common wheat for the manufacture of quellmehl
 destined for use in baking            at the same level as that fixed in Council
 Regulation (EEC ) No 2742/75 on production refunds in the cereals and rice
 sectors 5 /» as last amended, ,by Regulation
                                    «      , .  /«««\ -,
                                                (EEC)      ^
                                                      No 2139/77 6)
                                                                    , for the production
 of starch from maize or common wheat ;
 Whereas in view of the possibility of substitution in the production of beer
 between starch on the one hand and maize groats and meal and broken rice on the
 other , the level of the production refund to be granted on maize used by the
 maize industry in the manufacture of groats and meal for use by the brewing
 industry in the production of beer , and on broken rice used for the same purpose
 should be such as to achieve a balance between the cost of supplying the brewing
 industry with either starch , maize groats and meal or broken rice ; whereas this
 objective would be achieved by fixing the refund on maize for the manufacture
 of groats and meal at the same level as the refund on maize for the manufacture
 of starch and , also , by fixing the refund on broken rice used for brewing at the
 same level as the refund on broken rice for the manufacture of starch ,
  1) OJ Ho   L 281 , 1.11.1975 » P. !•
  2) OJ No
  3) OJ No   L 166 , 25 . 6.1976 , p. 1 .
  4) OJ No
  5) OJ No   L 281 , 1.11.1975 , P. 57 .
  6) OJ  No  L 249 , 30 . 9.1977 , p. 1 .
 ---pagebreak--- HAS ADOPTED THIS REGULATION :
                                    Article 1
              Article 1 of Regulation (EEC ) No 2742/75 is hereby amended to read
as follows :
" Article 1
  1.   Member States shall grant a production refund on maize for the manufacture
     • of starch and of quellmehl destined for use in the bakery industry of 17
       units of account per tonne .
  2.   Member States shall grant a production refund on common wheat for the
       manufacture of starch and of quellmehl destined for use in the bakery
       industry of 24,29 units of account per tonne .
  3.   Member States shall grant a production refund on broken rice for the
       manufacture of starch 20,89 units of account per tonne ."
                                    Article 2
              Articles 4 and- 5 of Regulation (EEC ) No 2742/75 shall read as
follows :
"Article 4
  1.   Member States shall grant a production refund on maize groats and meal for
       the manufacture of glucose under subheading 17.02 B II of the Common Customs
       Tariff ^ by the process known as direct hydrolysis . The production refund
       per tonne of maize groais and meal so used shall be 20,91 units of account .
  2.   Member States shall grant a production refund of 17,00 units of account per
       tonne of maize used by the maize industry for the manufacture of groats and
       meal used by the brewing industry in the production of beer .
  3.   Member States shall grant a production refund of 20,89 units of account per
       tonne of broken rice used by the brewing industry in the production of bsar .
  Article 5
  Member States Bhall take all necessary measures to ensure that the refunds
  referred to in Article 4 relating to maize groats and meal and to broken rice
  and in Article 1 relating to quellmehl shall be limited to the quantities of
  maize groats and meal , broken rice and quellmehl actually used in the Community,
  as the case may be , by the brewing industry for the production of beer, by the
  glucose industry, or by the baking industry. "
 ---pagebreak--- This Regulation shall enter into force on 1 February 19 78 .
This Regulation shall be binding in its entirety and direotly applicable
all Member States .
Done at Brussels ,                                     For the Council
 ---pagebreak---                          FINANCIAL                   STATEMENT
                                                                                               DATE .    28.11.77
        BUDGET LINS CONCKRÎJED t 6012,6110 ( production refunds ) •
    2. ACTION I Draft Council Regulation amending Regulation 2727/75 and 1418/76 on the
                      common market arrangements for cereals and rice and Regulation 2742/75 on
                      production refunds in the cereals and rice sectors .
    3. LEGAL BASIS t ju<jgeinent of the Court of Justice of 19.10.77 and Article 43 .
    4 . objectives :          Re introduction of production refunds for maize groats and cereal
                              and broken rice , used for brewery and for maize and common wheat
                             used for the production of quellmehl .
    5 . FINANCIAL COtîSECUU'CE                           TOR THE KAiiKETIJIC YEAH CUiiRIOT FINANCIAL YEAR    FOLLOWING FINANCIAL TEAR
    5.0 Exrr:.'DiTu:-iE                                                                  L     L.                            }
         - CHARGED TO THE EC BUDGET
           ( R13KUI1 US/ 1 HTSRVHm ONS )                    5,7 mio . u.a .            5,7 mio . u.a .            5,7 mio . u.a .
         -CHARGEE TO KATICNAL ÀDMINISTR .
         –CHARGED TO OTHER NATIONAL GROUPS
    5.1 RECEIPTS
         -0'.™ RESOURCES OF T!!E EC
           ( î.KViETî/ cuaTo;.^ DUTIES )
         –NATIONAL
                                                        TEAR ... AS'UQ            YEAR • o • •         «     YEAR
    5.0.1 PLURI A.VNUAL PATTERN OF EXPENDITURE              5,7 mio . U . a .      5,7 mio . u.a .              5,7 mio . u.a .
    5.1.1 PLURI ANNUAL PATTERN OK RECEIPTS
    5.2 METHOD OF CALCULATION
         Maize for groats                           420.000     t x   17 u.a./t .                 7,14    Mue
         Wheat for quellmehl                         15.000     t x   24,29 u.a./t                0 , 36  Mue
         Maize for quellmehl                         10.000     t x   17,00 u.a./t                0,17    Mue
         Broken Rice                                 50.000     t x   20,89 u.a» /t               1,05    Mue
                                                                                                               -1
                                                                                                  8,72    Mue
   6.0 FINANCING        POSSIBLE WITH CREDITS INSCRIBED IN RELEVANT CHAPTER OF CURRENT BUDGCT ?
t 6.1 FINAtiCINU h033I BLE 3Y TRANSFER B31Via3l CHAFTER3 OF CUR.iEMT BUDGET ?
                                                                                                                                        _!
                                                                                                                        TE3 , .            s
                                                                                                                                           i
I 6.2 MECœ.*iITÏ
                        FOR A SU PPLiûiîï.'TAR Y BUDGET ?                                                               Ϊ&5., :
                                                                                                                ΜΜΜΗΒΜΜΜυΜνι
   t>.3 CR^OITJ TO iio WRITTEN INTO FUTURE BUD3STS ?                                                                   Xï^/ Ï.O
frmmm–m
   COffiŒNTS 1
                1)
                      The reintroduction of production refunds for groats would lead to sone                                              |
                      substition of starch . Consequently , expenditure on production refunds                                             f
                      for starch could fall . The effect of this is estimated at about 3 tnio . -                                 u.e;I
                      the net increase is estimated at 5.7 mio . u.a .                                                                    H
                                                                                                                                          i