CELEX: 51973PC1604
Language: en
Date: 1973-09-27
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL laying down general rules to be applied in the event of the rice market being disturbed (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1604
Vol. 1973/0278
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(73 ) 1604 final
                                                     Brussels , 27 September 1973
                             . PROPOSAL FOR A
                       REGULATION ( EEC ) OF THE COUNCIL
                 laying down general rules to "be applied in
               the event of the rice market Toeing disturbed
               ( submitted to the Council by the Commission)
COM(73 ) 1604 final
 ---pagebreak---                                                         VI/3.137/73-E
                       EXPLAMTORY MEMORANDUM
Article 21 of Council Regulation No 359/67/EEC of 25 July 1967 provides
 that the Council shall adopt general rules of application in order that
 the necessary measures may "be taken where the cif price substantially
 exceeds the threshold price .
 Since the beginning of 1973 supplies of rice on the world market have
"been getting shorter and shorter . The world market price is currently
 appreciably higher than the threshold prices for all qualities of rice .
 In this situation , and in order to guarantee supplies of rice in the
 Community , the Commission adopted , by Regulation (EEC ) 1405/73 of
 26 May 1973 1 the safeguard measures applicable to the export of rice
and broken rice from the Community , which prohibited the issue of
 export licences .
 Since the new Community rice harvest , which can be marketed after
15 October 1973i is likely to be a good one , it can be expected that
there will be a reasonable surplus of rice available for export on the
world market .
The proposed measures provide in particular for fixing export levies on
rice , where the fact that world market prices are higher than Community
prices make them necessary .
The adoption of the general rules is necessary in order to ensure a certain
 consistency in the management of the rice market which cannot be ensured by
 current rules .
 ---pagebreak---                                                             VI/3 . 137/7 3-E
                             PROPOSAL FOR A
                 _ KEOULATION fT5EC) 0? THE COUNCIL
      laying down general rules to be applied in the event of the
                       rice market "being disturbed
 THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ;
Having regard to Council Regulation No 359/6"J/EEC^ of 25 July 1967 on the
common organization of the market in rice as last amended "by the Act of
           2
Accession , and in particular the second paragraph of Article 21 thereof ;
Having regard to the proposal from the Commission ;
Whereas Article 21 of Regulation No 359/67/EEC provides that , when the
cif price of one or more of the products mentioned in Article l6(l ) of
that Regulation is    appreciably higher than the threshold price , and
that situation is likely to continue , thereby disturbing or threatening
to disturb the Community market , the necessary measures may be taken ;
Whereas the general rules for applying these provisions , and in particular
the criteria for establishing that the cif price is appreciably higher than
the threshold price and for deciding whether the situation is likely to
continue , should be laid down ;
Whereas , to avoid disturbances on the Community market , it is necessary to
ensure an adequate supply of rice ;     whereas , to this end , levies could be
charged on exports and the issue of export licences could be suspended
totally or partially ;
Whereas it is also necessary to establish criteria for calculating the
export levy having regard to the economic situation ; whereas , so that an
appropriate export policy may be pursued during the currency of that situation
in accordance with market requirements , the fixing of export levies should be
based exclusively on the criteria governing the export rules ;
  OJ No 174 , 31 July I967 , p . 1
20J No L 73 , 27 March 1972 , p . 14
 ---pagebreak---                                                             Vl/3 .137/7 3-E
                              - 2 -
Whereas Community obligations to supply food aid are such that exports of
products for that purpose should be excluded from this Regulation ;
HAS ADOPTED THIS REGULATION :
                             Article 1
1 . The cif price shall he regarded as appreciably higher than the threshold
price within the meaning of Article 21 of Regulation No 359/67/EEC when it
exceeds it "by at least 2$ .
2 . This excess shall "be regarded as being likely to continue where an
imbalance between supply and demand is established and where this imbalance
is likely to persist having regard to foreseeable production and market price
trends .                                           ■  ;
3 . The Community market shall be regarded as being disturbed or threatened
with disturbance , as a result of the situation referred to in paragraphs 1
and 2 , where international trade prices are so high as to impede importation
of products mentioned in Article l(l)(a ) and (b ) of Regulation No 359/67/EEC
into the Community , or provoke exportation of such products from the Community
either of which situations would jeopardize supplies within the Community .
                            Article 2
1 . Where the conditions specified in Article 21 of Regulation No 359/ 67/EEC
are met , in accordance with the criteria laid down in Article 1 , the following
measures may be taken :
- application of an export levy , which may be fixed by a tendering procedure ,
- fixing of a time limit for the issue of export licences ,
- total or partial suspension of the issue of export licences ,
- total or partial rejection of outstanding applications for the issue of
   export licences .
 ---pagebreak---                                                            VI/3.137/73-E
                                     - 3 -
2 . The measures provided for in paragraph 1 may toe taken in respect of
one or more of the products listed in Article 1 of Regulation No 359/67/EEC ,
where this is made necessary toy the market situation and the relationship
between those products .
3 . The measures referred to in paragraph 1 shall be abrogated at the latest
as soon as it is found that , for a period of three consecutive weeks , the
condition referred to in Article 1 (l ) is no longer fulfilled .
                                   Article 3
1 . The following shall be taken into account when the export levy is introduced
for products listed in Article l(l)(aj and (to ) of Regulation No 359/67/EEC :
(a ) situation and trends :
      - for rice prices and available quantities on the Community market ,
      - for rice prices and for products processed from rice on the world
        market ;
(b ) the objectives of the common organization of the market in rice ,
      namely to balance that market both as regards supplies and as regards
      trade ;
( c ) the need to avoid disturbances of the Community market ;
( d) the economic aspect of the exports .
2 . The export levy on products covered by Article l(1)(o) of
Regulation No 359/67/EEC shall be fixed by reference to the criteria specified
in paragraph 1 (a) (b ) ( c ) and ( d) above . The following shall also be taken
into account :
(a ) prices for broken rice on the various Community markets ;
(b ) quantity of broken rice necessary for manufacturing the relevant product
      and , where appropriate , value of the by-products ;
( c ) possibilities and terms of sale of the relevant product on the world
      market .
3 . Where the situation on the world market or the specific requirements of
certain markets so require , the export levy may be differentiated .
 ---pagebreak---                                                                      VI/3.137/73-E
                                         - 4 -
4 . The export levy to "be charged shall be that in force on the day of exportation .       r
                                                                                            >
However , the export levy in force on the day on which the licence is applied for may ,
 on application from the interested party be lodged at the same time as the application
for a licence , and before 1 p.m . be applied to exports to be effected during the
period of validity of that licence .
5 . No levy shall be applied to exports effected by way of food aid under Article 23a
of Regulation No 359/67/EEC .
                                       Article 4
1 . Detailed rules for the application of this Regulation shall be adopted in accordance
with the procedure laid down in Article 26 of Regulation No 359/67/EEC .
2 . By the same procedure and for each product :
- the Decision to introduce the measures provided for in Article 2 and to revoke the
   measures provided for in the second , third and fourth indents of Article 2 ( 1 )
   shall be taken ;
- the export levy shall be fixed from time to time .
3 . Should the need arise , the Community may introduce , abolish or vary the export levy .
                                       Article 5
In an emergency the Commission may take the measures referred to in the third and
fourth indents of Article 2(1 ).    It shall notify its Decision to the Member States
and shall publish it on the notice boards at its Headquarters .
The measures shall , by virtue of such a Decision , be applied to the relevant products
from the date specified to this end ;   this day shall be subsequent to that of
notification .
A Decision relating to measures referred to in the third indent of Article 2(l )
shall apply for not more than seven days .
                                       Article 6
This Regulation shall enter into force on the third day following that 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 ,         1973 .                                  '  P°r the Council
                                                                       The President