CELEX: 51976PC0025
Language: en
Date: 1976-01-30
Title: COUNCIL REGULATION (EEC) on the crediting of securities, deposits and guarantees furnished under the common agricultural policy and subsequently forfeited (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 25
Vol. 1976/0012
 ---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,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---                                                         /
COMMISSION OF THE EUROPEAN COMMUNITIES
                                    COM ( 76 ) 25 final
                                    Brussels , 30 January 1976
                 COUNCIL REGULATION ( EEC )
                                            i
      on the crediting of securities , deposits and guarantees
      furnished under the common agricultural policy and
      subsequently forfeited
           ( submitted to the Council "by the Commission)
 C0M(76 ) 25 final
 ---pagebreak---                        EXPLANATORY EEKCRANDUK
Within the common agricultural policy, a significant number of securities
are provided for under the various Community .regulations.
To give some examples , such securities are required upon the issue of export
 or import licences with or without advance–fixing; as part of tendering proce­
dures s in cases of payment of advances on subsidies where the event giving rise
to entitlement to the subsidy has not yet occurred; in connection with private
storage contracts , in cases of the advance fixing of aid, for sales of goods
which come from intervention stocks and must be used for specific purposes ; in
connection with denaturing operations , and     so on.
In general the regulations only lay down the procedure for furnishing the secu­
rity , its amount , and the conditions for - its release , leaving open th-e question
of where to credit the security which is forfeited. In the absence of specific
provisions concerning the crediting of such security , the Member States have
hitherto entered them , on a final or provisional basis , in their national budgets.
Experience has , however, shown that the retention of the security by the . Member
States is unsatisfactory. In fact , a security is forfeited when the operator
fails to meet his commitments. The latter are , however, the corollary of the finan­
cial benefits he has received from the funds of the EAGGP. As a result , in this
case the EAGGP is financially disadvantaged , and this should be made good by        ^
crediting to the EAGGP the security which was designed to hold the operator to
his . commitments. In this vray, the principle according to which the security goes
to the party which bears the risk of the operation - in particular the disadvan­
tages which may result if the conditions for granting a benefit are not fulfilled -
is safeguarded. Consequently , the security which is forfeited should therefore
be credited, in general , to the EAGGP1 by deducting it from expenditure , either
from refunds if the proposed or completed operation constitues trade with non-
member countries , or from intervention expenditure in all other cases.
It should be laid down, however, that these provisions do not apply to two kinds
of security , namely security furnished upon the issue of export or import licences
without advance fixing of■ the rate of refund, lev:/ or compensatory amount , and
security furnished in connection with tendering procedures with the sole purpose
of ensuring that the tenders submitted are genuine. In both cases , the detriment
to tne EAGGP does not seem sufficiently substantial for the security forfeited
to be credited to it , although it cannot be denied that , even in those cases ,
 ---pagebreak---                                   - 2 -
   the 3AGGF might have to bear a certain degree of prejudice owing to the
. indirect effects of the failure of the operator to meet his commitments. These
   indirect effects may appear , in particular, at the market management
 " level , or in the form of charges relating to the storage of intervention products.
   Moreover , since food aid is financed under a special chapter of the Comrauntiy
   Budget , a security forfeited under food aid operations should be deducted from
   the expenditure arising from such operations.
 ---pagebreak---                   COUNCIL REGULATION ( EEC )
        on the crediting of securities , deposits and guarantees
        furnished under the common agricultural policy and
        subsequently forfeited
  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establishing the European Economic
  Community , and in particular Articles 43 and 209 thereof ,
 Having regard to the proposal from the Commission ,
 Having regard to the Opinion of the European Parliament ,
 Whereas under Community regulations numerous securities are required
 in connection with operations relating to agricultural products ;
 whereas provision must be made for the crediting of such securities
 in cases where they are forfeited ;
 Whereas in most cases where securities are forfeited , the European
 Guidance and Guarantee Fund ( EAGGF) suffers a financial disadvantage
 either because it has a financed a measure and the operator has
 failed to meet his obligations or because such failure by the
operator subsequently involves the EAGGF in additional expenditure
because of the mechanisms of the agricultural markets ; whereas this
disadvantage should consequently be remaidied by setting against
EAGGF expenditure any security which is forfeited ;
Whereas , however , those securities which are unlikely to cause a
sufficiently substantial financial disadvantage to the EAGGF should
be retained by the Member States ;
Whereas any security forfeited in food aid operations should be
deducted from expenditure in the " food aid expenditure " chapter of
the Budget ;
Whereas it is also right that any security forfeited as part of a
specific operation should be deducted from the expenditure relating
to that type of operation ;
 ---pagebreak---                                      - 2 -
 Whereas similar rules already exist in one particular sector , and
 are therefore superceded by the present Regulation ,
 HAS ADOPTED THIS REGULATION :
                                  Article 1
 1 ) Subject to paragraph 2 hereof , this Regulation shall apply to
      any security , deposit or guarantee furnished pursuant to
      provisions adopted under the common agricultural policy ,
      ( hereinfafter referred to as "security "), and to fractions
      thereof .
 2 ) However this Regulation shall not apply to any security furnished
      a ) in connection with the issue of licences without advance
           fixing of the rate of refund , levy or accession compensatory
           amount ; or
     b ) under a tendering proceudre for the sole purpose of ensuring
           the submission by tenderers of genuine tenders .
                                 Article 2
1 ) Any security referred to in Article 1(1 ) which is forfeited shall
     be applied in reduction of EAGGF expenditure .
2 ) However , any security which is forfeited in respect of food aid
     operations shall be applied in reduction of the expenditure under
     the appropriate item of the " food aid expenditure " chapter of
     the Budget .
                                Article 3
1 ) Any security referred to in Article 1 ( 2 ) shall be deducted :
     a ) if the completed or proposed operation in respect of which
          the security was furnished concerns trade with non-member
          countries , from refunds under the appropriate budgetary item ,
 ---pagebreak---                                     - 3 _
     b ) in all other cases, from intervention expenditure under
          the appropriate budgetary item .
2 ) If the expenditure chargeable to the EAGGF is supported by
     accounts , such accounts shall be credited with any security
     referred to in Article 2 ( 1 ).
                                  Article 4
     Article 14 of Council Regulation ( EEC ) No 2306/70 of 10 November
     1970 on the financing of intervention expenditure in respect of
     the domestic market in milk and milk products ^ is hereby
     repealed .
                                 Article 5
     Detailed rules for the application of this Regulation shall be
     adopted in accordance with the procedure laid down in Article 13
    of Regulation (EEC) No 729/70 ^ 2\
                                 Article 6
    This Regulation shall apply to any security forfeited with
    effect from 1 January 1976 .
    This Regulation shall be binding in its entirety and directly
    applicable in all Member States .
    Done at Brussels ,                        For the Council
                                               The President
    ( 1 ) OJ No L 249 , 17.11.1970 , s . 4
    ( 2 ) OJ No L 94 , 28 . 4.1970 , s . 13
 ---pagebreak---                                                                                                    .ío Cae.              •
                F a R3 A TJ C 5&L         GÏÂT E KS 2 EV2 T
                                                                                                       1.12.1975
 1.  Lins of tha &fct concerned : Items 6 , 7                  9 °f the Budget'
2.   TSilo of tha action s Proposed regulation -of the Council concerning the appropriation .
                                of securities , sureties or guarantees } undertaken for the purposes
                             : of the common agricultural policy and remaining forfeit .
3.         tesfs :        Articles 43 and 209 of the Treaty.
     Objectives of tha action : Appropriation of securities forfeited in the case of non­
                                    compliance with community regulations concerning FH10GA, by
                                    reduction of the expenditure to which they are related.
5.0    Reduction .in budgeted                             nn thn r.ssinaSnn        8 carPEfit Kicrci&O (         ) I fotlodnij exorcisaf      ]
                                                           r        1 lin InllBIIM   HIII 'll           I. -, r >; rJ-7    IIIII1IIBI |||«–^––
        expenditure
                                                        5-8 K. ua. I
                                                                                   I          ' -                     iI      5–8 M. ua.
5.1 ^tiaated costs            Year .. 19.77      Year                   Year 29.7ft .
                              5 - 8K.ua.         5-8 ti.ua.              5-8 l'L ua.
5.2   Eathod of calculation
     By           projection from the data from, certain Member States .
6.)   Possiul'ff-fikgaglr.o by credits witten into tha relativs chapter of tha carrcr.t Budget
6.2   Possible financing by transfcsJi^^cra^napters of tha currant Budga'
                       " Yes"'               &
6,3   Necessity for a supplementary Bjdgat                                       Ko
6.»   wadits to be sriiten into future badasts           No
Coeaents :        The reduction affects articles and budgetary items involving refund
                 and agricultural intervention, and also food aid expenditure .