CELEX: 51978PC0062
Language: en
Date: 1978-02-13
Title: Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1418/76 on the common organization of the market in rice (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 62
Vol. 1978/0022
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                        COM(78)62 final
                                        Brussels , 13 February 1978
                           Proposal for a
                      COUNCIL REGULATION ( EEC )
        amending Regulation ( EEC ) No 1418/ 76 on the
        common organization of the market in rice
        ( submitted to the Council by the Commission )
  COM ( 78 ) 62 final
 ---pagebreak---                        EXPLANATORY MEKORANDtJM
1. Pursuant to the first subparagraph of Article 227 ( 2 ) of the EEC Treaty ,
    the common organisation of the market in rice applies to the French
   overseas departements , with the exceptions of the provisions relating
   to the European Agricultural Guidance and Guarantee Fund . Refunds ana
   intervention measures are financed by France while levies are considered
   as Community own resources and are entered under its Budget .
2. The overseas department of Reunion , having no domestic rice production
   is completely dependent on imports These have been as follows :
                                                                    m tonnes
                            '              !
      Origin                      1975           1976       1977 ( six month )
      Italy                      24.518         3.970
      France                                                         1
      Non–member countries       19.475        52.901          15.400
      Total                      43.993        56.571          15.401
   Among the main suppliers are Asian countries suoh as Thailand and
   Pakistan .
3. Rice forms the principal foodstuff of the least " favoured categories of the
   population of Reunion . Per capita consumption is 110 kilograms per annum
   compared with 3 kilograms per annum in the Community with the result
   that the effect of levies weighs considerably more heavily on the family '
   budget of the inhabitants of Reunion .
4« Rice is imported into Reunion almost exclusively in the form of long-grained
   husked rice . In 1976/77 i-*10 average levy for this category of rice was
   138.25 units of account per tonne and during the first five months of the
   1977/78 marketing year 99*75 units of account per tonne . The world market
   prices recorded at Rotterdam , for uncorrected quality , was 215.35
          • . .       and 245.64 units of account per tonne respectively for
   the same periods .
5. To improve its supply situation it is proposed that import levies should
   no longer be applied to rice in the overseas department of Reunion , this
   measure being limited however to the level of the component for the pro­
   tection of the industry ( 11.50 units of account per tonne ) for milled and
   semi–milled rice . For the sake of equality, rice from the Community should
   enjoy the same advantage . It is therefore necessary, to subsidize Community
 ---pagebreak---                               - 2
supplies to Reunion . So that this subsidy may be financed by the
European Agricultural and Guidance and Guarantee Fund it is proposed
that the provisions concerning the Guarantee Section of the EAGGP
should also apply to the said Department in respect of rice products .
 ---pagebreak---                         COUNCIL REGULATION ( EEC )
 amending Regulation (EEC ) No 1416/76 on the common organisation of the
                                     market in rice
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 and in particular Articles 43 and 227 thereof ,
 Having regard to the proposal from the Commission ,
 Having regard to the opinion of the European Parliament
 Whereas pursuant to the first subparagraph of Article 227 ( 2 ) of the EEC
 Treaty , the common organisation of the market in rice applies to the
 French overseas departments ; whereas import levies are considered as own
 resources of the Community;
 Whereas no rice is cultivated in the overseas department of Reunion ;        whereas
 this department is therefore completely dependent on imports ;
 Whereas rice constitutes the basic          foodstuff of the least favoured categories
 of the population of Reunion ; whereas per capita consumption considerably exceeds
 that of the Community; whereas the supply position should be improved by the
 introduction of special arrangements for rice                for local consumption ;
Whereas import levies should therefore no longer be applied in the overseas
department of Reunion ;
Whereas the threshold price for milled rice includes a component for the
protection of the industry which is currently fixed at 11 . 50 units of account
per tonne ; whereas in order to continue to protect the industry established
in Reunion , a levy equal to the amount of this protection component should be
                                                                             maintained .
Whereas rice imported into Reunion does not only come from non-member countries
       but also from Member States ; whereas , in the interests of equal treatment
and Community preference , rice from Member States should enjoy an advantage
corresponding to that accorded to rice from non-mamber countries ;
Whereas the expenditure incurred by the Member States as a result of their
obligations          under Council Regulation (EEC ) No I4IB/76 of 21 June 1976
                                                       2)
on the common organisation of the market in rice          , as amended by Regulation
 (EEC ) No 115B/77     t are financed by the Guarantee Section of the European
Agricultural Guidance and Guarantee Fund pursuant to Articles 2 and 3 of
 1 ) OJ No
 2 ) OJ No L 166 , 25 . 6.1976 , p.l .
 3 ) OJ No L 136 ,  2 . 6.1977 , p. 13 .
 ---pagebreak---  Council Regulation (EEC ) No 729/70 of 21 April 1970 on the financing of
 the common agricultural policy             aa last amendad by Regulation (EEC )
 No 2788/72 5^;
 Whereas , however , pursuant to Article 227 ( 2 ) of the Treaty and in the
 absence of provisions to the contrary adopted by the Council, such Community
 financing does not apply to expenditure arising out of the application of
 Regulation (EEC ) No 1418/76              French overseas departments ;
Whereas the non-application of the levy to rice imported from non-member
 countries is only justified if rice from Member States enjoje an equivalent
advantage j whereas this implies a subsidy equal to the amount of the levy;
whereas it is not justified to exclude such a subsidy from Community financing
whereas it should consequently be provided that             Article 40 ( 4) of the Treaty
should apply to the French department ' of" Reunion also in respect of rice ;
HAS ADOPTED THIS REGULATION :
                                         Article 1
The following Articles are hereby added to Regulation (EEC ) No 1418/76
I.    " Article 11a
        1 . This                        Article shall apply to products intended for
            consumption in the French overseas department of Reunion .
        2 . By way of derogation from                          Article 11 ( l)(a), ( b),
            ( c ), ( d) and ( i ), no levy shall be charged on imports of products
            falling within tariffs subheading 10.06 A and 10.06 C in the French
            overseas department of Reunion .
        3. By way of derogation from                           Article 11 ( 1 ) ( e ), ( f),
            ( g) and ( h ), the levy to be charged on imports of products falling
            within tariff subheading 10.06 B in the French overseas department
            of Reunion shall be equal to the amount for the protection of the
            industry referred to in Article 14 ( 3)*
        4 * For deliveries to the overseas department of Reunion of products
            falling within tariff heading No 10.06 originating in Member States
            and covered by one of the situations referred to in Article 9 ( 2 ) of
            the Treaty , a subsidy shall be granted equal to the levy applicable
            to the product concerned on the day on which the product is released
             the market          in Reunion . However , for products falling within
            tariff subheading No 10.06 B, this subsidy shall be reduced by the
            amount for the protection of the industry referred to in paragraph 3 .
4 ) OJ No L 94 , 28. 4.1970 , p. 13 .
5 ) OJ No L 295 , 3O.i2.i972 , p. 1 .
 ---pagebreak---          5.   detailed rules for the application of this Article shall be
          adopted in accordance with the procedure laid down in Article 27 .
II . Article 2<4a
     Article 40 ( 4) of the Treaty and the provisions adopted to implement
     Article 40 shall apply , insofar as the Guarantee Section of the
     European Agricultural Guidance and Guarantee Fund is concerned , to
     the French overseas department of Reunion in respect of the products
     referred to in Article 1H #
                                 Article 2
This Regulation shall enter into force on the third day following 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
 ---pagebreak---                          FINANCIAL              STATEMENT
                                                                                    BATE .      8.2.78
                                           1003                                              84 m.E.U.A.
       1 . BUDGET LINE CONCEHWED I
                                                                                    CREDITS I 1 m E.U.A ,
 NMBMHBMMIMMWMMMHMMHHNHMMINNBLLMHMNNMMHWMIIHHHNIMMMMMMMIHHHMBHMMHIMMW
 I 2. ACTION I Proposal for a Council Regulation amending Regulation ( EEC ) No 1418/76
 !                      on the common organisation of the market in rice .
      3. LEGAL BASIS .        Articles 43 and 227 of the Treaty
      4. OBJECTIVES I To improve the supply situation in rice on the Island of Reunion .
      5. FINANCIAL CONSEQUENCE
      5.0 EXPENDITURE
                                                  PERI0D 0? 12 MOETHS
                                                                        CURRENT ^JANCIAL TEAR   FOLLOWING Y^ANCIAL YEAH j
            -CHARGED TO TOE EC BUDGET
               ( HiXXXS/l HTER VENTI ONS )             0.5 M. E.U.A.       0.3 M. E.U.A.           0.5 M.E.U.A.
            -CHARGED TO NATIONAL AEKCNISTR.
            -CHARGED TO OTHER NATIONAL CBOUPS
      5.1 RECEIPTS
            -OWN RETiO'JRCi3 OF THE EC
              ( LEVI i^/aaacKjqso^fis^            - 5*0 M. E.U.A.         - 3.0 M. È.U.A.         - 4.0 M. E.U.A.
           -NATIONAL
                                                          I98D                   T9SI                      1552
                                                 TEAS                   md                      TEAfi /!•«# •••«••••••
    5.0.1 PLURI ANNUAL PATTERS OP EXPENDITURE        0*3 m . u*a «             Û # 5 m.u.a .          0 # 5 nwu.a .
    5.1.1 PLURI ANNUAL PATTERN OF RECEIPTS       –    4*0 m * E«U«Aé        – 4*0 m * EtU«A <t     •• 4 *^ nitEtUt Ap
    5.2 KETHOD OF CALCULATION                 _           ,           . .   .  „ r- ANN +         ___
                   Estimated imports from non-member countries : 45.000 tonnes per year .
                   Estimated imports from Community market 5.000 tonnes per year .
                   Estimated rate of the levy not applied* 9° units of account per tonne
                   Estimated amount of the subsidy for Community ricex 90 units of account per
                                                                                                             tonne
j 6.0 FINANCING POSSIBLE WITH CREDITS INSCRIBED IN RELEVANT CHAPTER OF CURRENT BUDGET 7                     XSES/N0
j 6.1 FINANCING POSSIBLE BY TRANSFER BETWEEN CHAPTERS OF CURREKT BUDGET ?                                    TES/ifâcX
   6.2 NECESSITY FOB A SUPPLEMENTARY BUDGET ?
                                                                                                          xxsca/NO      |
   6.3 CREDITS TO BE WRITTEN INTO FUTURE BUDGETS ?                                                           xssj&tx.
    I    I ||>w–1                  –m–––BaawnwawaroBM––MBW–t–ww i MIIIIIIHW––i
   COKXa.'TS 1