CELEX: 51975PC0532
Language: en
Date: 1975-10-27
Title: COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON ACTION TAKEN TO SIMPLIFY THE AGRICULTURAL LEGISLATION#DRAFT RESOLUTION OF THE COUNCIL CONCERNING MEASURES TO SIMPLIFY THE AGRICULTURAL LEGISLATION

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 532
Vol. 1975/0201
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMàGSSION OS THE EUXOPEAN COMMUNÎT3ES
                                                COM ( 75 ) 532 final
                                                Brussels , 27 October 1975
                     COMMUNICATION FROM THE COMMISSION TO THE
                     COUNCIL AND THE EUROPEAN PARLIAMENT ON
                     ACTION TAKEN TO SIMPLIFY THE AGRICULTURAL
                                    LEGISLATION
                      DRAFT RESOLUTION OP THE COUNCIL
                      CONCERNING MEASURES TO SIMPLIFY
                      THE AGRICULTURAL LEGISLATION
   CCM ( 75 ) 532 final
 ---pagebreak---                                                                  VI/ 2047/ 75-S
                                                                 RW/cw/ne
               Simplification of the agricultural legislation
As stated in the two communications to the Council dated 27 February and 5
Karch 1975 concerning the stocktaking of the common agricultural policy and
the simplification programme , the Commission intends to propose or to adopt ,
inasmuch as it is competent to do so , the measures needed to simplify Commu­
nity rules .
As regards agricultural legislation in particular , the Commission informed
the Council in the above-mentioned communications that it was examining the
criticisms made of this legislation in detail , with special reference to the
difficulties involved in its implementation. Particular attention was paid
to the comments made 2
a ) in the Memorandum of 20 June 1974- from the Federal Republic of Germany
    concerning the simplification of Community legislation !
b ) by the Directors-General of Customs in the Member States ;
c ) by participants at the seminar held by the Commission from 24-27 Septem­
    ber 1974     the subject of Community agricultural legislation applying
    to trade .
The purpose of this communication is to inform the Council of the action
being taken by the Commission to simplify the agricultural legislation. The
Commission has agreed that it will take action on two levels ;
- firstly , by introducing the measures required to make the legislation it­
   self more reliable and more easily applicable , by clarifying and codifying
   its provisions , adopting , wherever possible and desirable , common rules
   for the various sectors which woahld replace the assorted rules applicable
   to each individual sector , simplifying the procedures for recurrent legis­
   lation and attempting to simplify the nomenclature of agricultural products ,
- secondly , by adopting a new modus operandi , associating the representatives
   of the bodies which will have to apply the rules nore closely with the pre­
   paration of proposals and decisions , ensuring that drafts are submitted to
   the experts in good time for their proper examination and that , a reasonable
   period is allowed between the date of publication of Regulations and their
   entry into force    '-except, increases gratified •igrc-comiScllin^:
   economic nature­
 ---pagebreak---                                   - 2 -                 VT/2047/7
Details of such action are given in annex I.        . .
The Commission would , however , draw the Council 's attention to the difficulties
it encounters in this field .
It is often- impossible to observe the principles outlined above because of the
very short time allowed to the Commission to work out the detailed rules for
applying decisions taken by the Council . Moreover , apart from administrative
difficulties, the dates laid down for the legislation 's entry into force
usually present operators with considerable problems . */here no advance filing-
is possible , the parties concerned can plan their operations on the basis of
the existing legislation . Although the legislation in question has not
formally given operators any rights in this matter , it would seem appropriate
to take account of the situation as far as possible and even in certain cases ,
the necessary provisions should be adopted , as has been confirmed by the
Court of Justice of the European Communities . These provisions may consist
of the adoption of transitional measures applying to contracts in force at the
 ι
time .
Experience .has , however , shorn that such provisions may be abused and present
great administrative difficulties . Wherever possible , provision should be
made for a reasonable period of time between the date of publication of a
measure and its entry into force , so that adequate consideration is given to
such interests .
To conclude , the Commission proposes :-      r
- that i the period laid down between the date of publication and the date
   of entry into force of Common Agricultural Policy Regulations , should take
   account in every case of the periods necessary : for administrative application
   and of the justifiable position of operators ;
- that , wherever an unforeseeable amendment to the existing rules imposes a
   burden on individuals , this period should be increased so as to obviate havi:i
   to adopt other transitional measures : for this purpose a period of one mont.i
   might , as a general rule , be considered satisfactory .
These rules would apply except in cases of a demonstrable emergency and in the
case of recurrent legislation ( changes in the rate of levies and refunds, for
example ).                                                           '
 ---pagebreak---                                 - 3 -                 VI/2047/75-E
-  Experience has shown that very often the necessary coordination between
the various competent bodies in the Member States , e.g. between the customs
and agricultural authorities , has not taken place .
- Certain simplification measures may depend on the multilateral trade
negotiations now in progress .
The Commission requests the Council and the Member States to take note of the
problems posed and to support the action taken. The Commission has submitted
and will shortly submit to the Council a number of proposals concerning -such;
action , in all those cases where a Council decision is required .
Lastly , the Commission is submitting to the Council a draft resolution
which takes account both of the need to improve the agricultural legislation
and of the difficulties involved (annex II ).
 ---pagebreak---                                                               VI/ 2047/ 75-E
                                                              RW/aa/mc
                                     ЛШШХ I
               Conclusions reached try the Commission concerning
               the simplification of the agricultural legislation
For the sake of clarity , the main comments made regarding the complexity of
the agricultural legislation and the difficulties to which its implementation
may give rise will be considered in turns in each case , the progress made so
far and the solutions adopted will he outlined.
I.   Problems common to the various sectors
1.   Codification and adapting of the legislation
To make the legislation clearer and more consistent , and its underlying con­
cepts easier to understand , work has begun on its legal codification in ac­
cordance with the guidelines laid down by the Council meeting of the Mini­
sters of Justice . The advantage of such codification will be to make avai­
lable to users the entire legislation governing a given sector in one and the
same edition of the Official Journal . As regards Council legislation, the
Commission has submitted proposals for the codification of the regulations
                                       and cer,eal3
governing the pigmeat , egg and poult ryaeat /sectors , and will shortly submit
proposals relating to r      j   zrl rice . The ba^ic regulation governing the
fruit and yegetable sector has already been codified. In addition, the Com­
mission has already codified those regulations common to the various sectors
dealing with refunds , export certificates , import licences and advance fixing ,
and has had these instruments published in a single edition of the Official     ,
JourneJL .
Conclusion;
The work now in progress will be pushed forward. Moreover , as soon as the
Council has adopted the codification proposals now before it , the Commission
will codify the legislation for which it is itself responsible along the same
lines , sector by sector .
Once this task is accomplished , it will be necessary to republish , in codified
fonjt, any regulation which has been amended so frequently that it is becoming
difficult to use .
 ---pagebreak---                                   - la -               VI/2047/75-ID
Hoviever , wherever a constitutive codification would appear premature
or untimely , the Commission reserves for itself the possibility of using
another method of codification such as that laid down in Council Resolution
of the 26 November 1974 on "the Codification of its Acts (Official Journal
of the Communities JfO'C 20 of 23.1.1975 )*
 ---pagebreak---                                        - 2 -                  VI/2047/75-E
                                                              RW/apd/inc
2.    Reducing the nunber of régulations
The Commission stresses that the principle of using regulations for the ma­
nagement of the common agricultural policy c'.Qail/ not bo called into question
once more ; this system helps to make plain the action taken by the Community ,
since regulations must be published in the Official Journal , and makes mat­
ters simpler for those concerned, since they are directly applicable ;        besides
 in numerous cases regulations must be used because of the legal provisions of the
                                                                                Trearty*–
The Commission believes , however , that the number jof' regulaiions--<>aii_b©. re–'
duces in certain cases :
- by attempting to deal with certain technical details by administrative
   action by means of " circulars" which would be either notified to the Mem­
   ber States or published in the Official Journal of the European Communi­
   ties , as appropriate as is already the case for the detailed rules for ap­
   plying the system of import and export licences and advance fixing certi­
   ficates !                                               ,
- by abandoning the use of regulations in the few cases where this serves
   simply to fix a reference value , as with the wine prices recorded each
   week; .
- by abandoning the use of recurrent legislation wherever this seems possible
   and desirable ; this would particularly apply to legislation for the sole
   purpose of fixing, at recurrent intervals , unchanged amounts - especially
   " zero" amounts ; moreover , where the recurrent legislation changes the rates
   for certain products only , a special information procedure will be intro­
   duced so that the attention of the bodies responsible for implementation
   is drawn to those amounts which have been altered .
3.    Stability of the lerf.slation .;
The Commission notes that the markets in agricultural products are particu­
larly unstable and that the legislation is merely anticipating or following
market developments . Within these limits , however , to achieve maximum stabi­
lity for the legislation , the Commission will try to ensure that texts are
drafted with this in mind , finalized in close cooperation with all the bo­
dies concerned and forwarded to the experts for examination in good time .
The representatives of Member States should contribute to this task .
 ---pagebreak---                                       - 3 -                 VI/2047/75-E
  4*   Time limit for the entry into force of Regulations
  It follows from Council Resolution of 27 June 1974 fconceffcihg measures to be
  taken with a view to simplifying the task of the customs authorities that , apart
  from exceptional cases justified by compelling reasons of an economic order , any
  provision intended to be applied by the Customs Authorities of the Member States
  should be published in the Official 'Journal of the Communities 6 weeks at least
  before the date ]a.d 'down for its application . It should , moreover , be recalled
  that Article 191 of the 'Treaty provides that , unless there is a special provision ,
  regulations enter into force on the tirsntieth day following their publication .
  If in certain cases ( for example : measures of administrative technique , horizontal
  regulations , codification) these time limits can be respected , the requirements of
  the Common Agricultural Policy do not most of the tiiae allow their being respected .
  Not only in terms of prices and quantities but also in terms of trade ,, development
  on the market in agricultural products are so rapid and their political or
  financial consequences so considerable that no suchdelay can be permitted in
  adopting the necessary measures .   On the contrary , the national delegations which
  participats in Community decision-making at Council level and within the
  Management Committees generally insist that such periods should be as short as
  possible . Moreover , with regard to recurrent legislation ( changing the rates of
  levies and refunds for example ) the new rates must sometimes be applied on the
  next day .  The application of recurrent legislation does not otherwise pose great
  problems , since a refund and efficient procedure to deal with these requirements
  has been put into force by the Commission and the Member State's .
• Conclusion
  A reasonable period should be laid down between the date of publication of. Common
  Agricultural Policy Acts and their entry into force but this period could , in the
  majority' of cases , only be perceptibly less than the period of 6 weeks mentioned
  in Council Resolution of 27 Juno 1974 *   It should be fixed, case -by case , -by
  reason of the economic urgency and the importance of the administrative measures
  to be taken nationally so as to allow gin efficient application of these Acts .
  Nevertheless , in any case except in the case of recurrent legislation, it should
  not in principle be less than one week .
 ---pagebreak---                                       - 4 -                 VI/2047/ 75-E
5«  Alignment of texts in the various Community languages .
The Commission is aware of the difficulties in this area , and' intends to
take the necessary internal measures to improve the alignment of the texts
in the various Community languages so that the various versions cannot sub­
sequently be interpreted in different ways and thus be cone the subject of
proceedings before the Community Court of Justice ,
The Community will , as far as possible , ensure that the vocabulary used in
the legislation is harmonized. It wishes to stress , however , that the use
of one and the same term to denote ideas which are not identical can also
be a source of confusion.
6.  Legislation common to the various sectors
To avoid the proliferation cf .sectoral regulations covering the same ground
and consequently giving rise to a wide variety of differing measures , the
Commission has begun work on regulations common to the various sectors . At
present such regulations cover most trading arrangements , including those
governing export refunds , import and export licences , advance fixing certi­
ficates and , sincfe 1 April 1975 » export levies and charges.
Experience has shorn that such "horizontal" legislation , talcing the place of
the various existing rules and regulations , has considerably facilitated the
task of the authorities responsible for applying the law, particularly the
customs besidos'that of economic transactions ;
Conclusion
The Commission will corrtinue to take action along these lines in any fields
whëre such législation proves désirable and possible , particularly as regards
invitations to tender and destination control . The problem of the detailed
                                                                 essentially
rules for applying and recovering import levies and charges should/be dealt
with by general legislation relating to the free circulation of goodsj a
proposal for a directive was forwarded by the Commission to . the Council, in
December 1973 and is now under examination by the latter.
 ---pagebreak---                                                               VI/2047/75-E
7»   Products subject to the arrangements governing: import licences and
     export certificates
The Commission has adopted a number of measures designed to exclude , from
the arrangements governing import licences and export certificates , certain
transactions in respect of which such formalities are not , in the Commis­
sion 's opinion , indispensable - for the management of the markets ; these com­
prise non-commercial transactions , transactions subject to customs proce­
dures whereby the duties or other amounts applicable under the common agri­
cultural policy are suspended, deliveries of goods for use as ships 1 and
aircraft stores , deliveries to the international organizations established
in the Community and to foreign armed forces stationed on the territory of
a Member State .
The Commission has also prepared a list of the products subject to the sy­
stem of import licences and export certificates .
Conclusion
The Commission will adopt , or propose , the measures required to remove , from
the list of products subject to this system , those in respect, of which the
system need not , in the Commission 's opinion , be applied ; this is particu­
larly the case for certain products in the wine and fats sectors .
     Cases vrhere import licences , export certificates and advance-fixing
     certificates apply to products coning under adjacent tariff sub-headings
For the sake of simplification, the Commission has already provided that each
certificate or licence should be valid for operations involving ariy of the
products coming under a given tariff sub-heading and not merely for one single
type of product .
Some exceptions have , however , proved necessary in cases where the tariff
                                                               r
classification of a product depend on the results of its analysis or were
                           \
changes in the chemical structure of certain products during transport en­
tails their reclassification under a different sub-heading.
 ---pagebreak---                                      - 6 -                   VI/2047/75-E
Conclusions
The scope of the certificates and licences has already been extended to cover
several tariff sub–headings in the case of certain products belonging to the
grain, nillt and milk products which were affected by this problem ; in the
wine sector , moreover , the certificates and licences now cover a wider range
of alcoholic strength .
If difficulties occur with other products , the Commission will take the ne­
cessary steps .
9- ■' The nomenclature of agricultural products
It should be stressed at the outset that originally a special nomenclature
was adopted for the legislation governing import levies : for the sake of '
consistency , this nomenclature was adopted for the Common Customs Tariff when
the latter was introduced. Subsequently , the nomenclature used for the pur­
poses of the legislation governing export refunds was developed as required
on the basis of the Common Customs Tariff .
Some years ago , the international monetary situation led the Council to in­
troduce a system of monetary compensatory amounts , the rates for which are
not aligned on the abovementioned nomenclatures in every case for valid eco­
nomic reasons J the transitional arrangements provided for in the Act of Ac­
cession have led certain new Member States to superimpose the nomenclature
of the Common Customs Tariff on their own original nomenclature , although
the Act placed then under no obligation to do so .
The difficulties caused by the system of monetary compensatory amounts will
gradually disappear as the list of products subject to this system is
shortened. Similarly , the problems caused by the accession of the new Member
States will be solved once the transitional period provided for in the Act
coaes to an end .
The study was , therefore , restricted to the problems, posed "by: the '"perma-r
nent " nomenclatures .                       -
 ---pagebreak---                                    - 7-                  VI/2047/75-2
The Common Customs Tariff nomenclature for agricultural products
The Commission requested the customs authorities in the Member States to supply
it with a list of those tariff sub-headings which were difficult to apply , showing
reasons , with special reference to agricultural products , and to. submit their
suggestions on this matter . The Commission had a careful analysis made of the
comments and suggestions submitted .
It was noted that a number of criticisms put forward by the Customs Authorities
of Member States related to precisely those sub-headings which had been introducer"
for pressing economic reasons at the request of the Member States to whom these
authorities belong . This situation seems to arise either from insufficient
coordination at national level or from a divergence of views between the '
national authorities in question . Coordination of the national authorities shou '
therefore be improved at national level to help . the Commission in its task .
From an examination of the reports submitted by the customs authorities of Member-
States it is clear that most problems relate to those sub-headings for which the
rates have been consolidated by negotiation .  As stated in the simplification
programme adopted on 26 February 1975 » the Commission intends to take advantage of
coming multilateral trade negotiations to carry out the simplification measures
required in this field .
The; development of the nomenclature for products subject to levies is. a reflectio:
of the fact that the mode of taxation is specific to the individual product ? used .
In this ^-stem , where two products have a substantially different value - even if
similar in nature or made from cuts of the same animal - two tariff sub-headings ai
necessary so that a levy taking account of the value difference may be applied .
To simplify matters , the Commission put before the Council on 16 January 1974
a proposal for a regulation containing certain measures described in the nemorandr
of 31 October 1973 concerning the improvement of the common agricultural policy ;
in the beef and veal sector the effect of these measures would have been . to replar
the system of specific levies by a system of ad valorem levies . This proposal
could have greatly simplified the nomenclature of products in this sector , where
implementation presents real difficulties . The Council , however , reject the
proposal . At the same time , the Commission is aware of the difficulties which
might be raised tar its adoption .
 ---pagebreak---                                         - 8 -                  VI/ 2047/75-E
Conclusion
The Commission will continue to work to improve , products nomenclature "by-
reviewing the definitions which might give rise to problems in practice and
abolishing those sub-headings which seem unnecessary for        sound market ma­
nagement .
In the wine , milk and milk products sectors , measures to tliis effect have
recently been adopted by the Council , acting on proposals free the Commis­
sion. Other proposals will follow, if possible , in the course of 1975 »
dealing with the products of secondary processing specified in Regulation
( KEX3 ) Ho 1059/ 69      with certain products in the fats .and; cereal s sectors .
The nomenclature of products qualifying for export refunds
This nomenclature had to be developed for two reasons ;
( a ), as in the case of the Common Customs Tariff nomenclature it results from
       the fact that the amounts paid are fixed on a specific basis . It should ,
       hoifever , be recognized that fixing the rates in this way has two advan­
       tages ; it is fair and easily applicable in that it is based on weight
       or number and involves none of the problems of assessing the value of
       each product in respect of which a given operation is carried out ( such
       assessment could give rise to endless litigation ,, in view of the many
       factors determining the price of such products );
( b ) for the export of each cat agory of product , an amount has to be paid
   . . which is as close as' possible to the., difference between the world market
       price and the Community price . A change in the nomenclature would there­
     : fore mean either that    excessive amounts would be paid at the expense of
       the Community , or - to avoid this problem     that the amounts would be
       fixed at a level lower than they should be to allow Community products
       to find an export market .
       It goes without saying that the payment of unjustified refunds should be
     'prevented and public opinion is rightly sensitive on this issue .
 ---pagebreak---                                      -9 -                   VI/ 2047/7 5-E
Lastly , the structure of this nomenclature is sometimes different from that •
of the Common Customs Tariff , since in certain sectors , particularly the railk
and nilk products sector , the products imported are different in kind fron
those exported and account has to "be taken of this situation.
Consideration was given to the possibility of unifying the nomenclatures ap­
plicable to exports and imports in order to facilitate the task of the autho­
rities responsible . A study carried out in the milk and milk products sector
showed that such unification would , at the very least , triple the size of the
nomenclature , which would thus become an obscure aJid ponderous instrument ,
with many of the sub-headings created for export purposes being meaningless
in the context of imports. For these reasons it does not seem possible to
adopt this solution.
Conclusion
The essential thing is to ensure that product nomenclature provides clearly
worded definitions , rather than rearrange the sub-headings , the expension of
which is frequently requested by Member States. This principle will guide
the Commission in its task of attempting to simplify the nomenclature wher­
ever possible .
10 . • Intervals at which trade information must be supplied by the Member States
The management of the agricultural markets requires that certain data, rela­
ting mainly to trade , should be taken into consideration. Such data must be
supplied by Member States at regular intervals laid down by regulation. Ex­
perience has shown that , in view of the characteristics of each market &nd
to prevent the lines' of communication (telex ) becoming congested, the inter-
at, which , data miist
vals /anotner . Tnis
bodies responsible for the collection and forwarding of this data.
Thus , the Commission proposes to facilitate the task of the authorities conr-
cerned by : ' .
- standardizing the intervals in the case of data usually supplied by the 5
   customs authorities of the Member States ;
- harmonizing, as far as possible , the data usually supplied by national bo­
   dies dealing with agriculture , while taking any real needs into account ;
- harmonizing the procedure for notification.
 ---pagebreak---                                                     - 10 -                               VI/2047/75-E
   Qonclusion
   The C&ramission is exmining the possibility of rationalizing the transmission
   of data supplied "by statistical means , and will submit proposals to the Ma­
   nagement Committees , At the same time , it will try to ensure that the regu­
   lar intervals provided for are strictly observed .
  Moreover , in the long run the final solution to the problem could lie in the
  introduction of new methods and procedures for the transmission and proces­
   sing of data. The Commission is now having the necessary studies carried out
  by specialist firms .
• 11 ,     Trjcation accour.ts
  Certain delegations appear to have difficulty in making a breakdown of the
  data to be notified to the Commission so that accounts can be prepared of
  the customs duties and other amounts to be levied under the common agricul­
  tural policy .
  The data requested are useds
  - for a breakdown of the Community 's oxm resources , making it easier to se­
      lect which categories of receipts or products should be checked}
  - to aid in the preparation of the budget estimates for the Community ' s own
      resources .
  Conclusion
    X-fcslfev4faB •. earn® st "Wister osftMfoG fi&kdfcsfeioar -th&£ Member"-' Stated                        possible
  • steps sto include? ij^.ttodrtinonthly"' declarat'i"cms~,,aP'b3r«a'kP dt^P^f^^rik^&so&irces
    Buffxdiontu.y^vjid'è '.to?priaÎ5ïe Hjhfc               àftcfc* i£îpolk>b^Éîb^''ciï^'the différent re source s
    available to the Community to be seen ( for example to distinguish import levies and
                                                                                      export levies ).
  12 ,     Destination control
  It has been noted that both for trade with non-member countries and for the
  int ernal management of the markets , many products are subject to destination
   control , which may tend to complicate the task of the bodies . responsible for
   applying the rules ,
                                               has already adooted certain provisions ( in particular
   To limit the extra work which may result from such controls , the Commission /
  is^aiingnaiii'o2 o? fwo^ci^dsf^epending on whether the destination of the
  product gives entitlement to a tariff concession on imports or to internal
   financial aid .
 ---pagebreak---                                       « 11 -                   VI/2047/75-E
Conclusion
In -the former case , -the Commission will propose a- single_ all^urpose ^xcocedure.
for such controls ; in the latter .-casejJ the^Qaciissioir vill -also irTy-to . stan­
dardize the-ooniroL pz»cedxLEa»- -                                       *
 ---pagebreak---                                           - 12 -                VI/2C47/ 75-E
                   II .   Problems peculiar to certain sectors'
A.    Cereais
1 . Fixing the carry-over payment s for cereals (monthly increases in the
      intervention prices ) ( iten Ifo 25 in the German Memorandum )
It would not be desirable for the actual costs of temporarily offsetting
supply and demand to be almost fully covered. At the present very early
stage in the achievement of economic and monetary union , the organization
of the single market in cereals can only function within a highly flexible
framework.
The actual cost of storing cereals varies greatly from one Member State to
another . This being the case , it has been necessary to restrict the size of
the monthly increases in the intervention prices and to stress that such
increases are meant as an incentive to facilitate the sale of stocks in ac­
cordance with the requirements of the market .
The various components of the cost of storing cereals ( financing, wastage ,
treatment , storage , etc .) vary not only from on Member State to another but
also from on time of year to another . The use of a coefficient reflecting
the interest rate applied by the various Member States would only complicate
the Community rules without providing a satisfactory solution to the problem
of covering the actual costs .
The annual increase must be sufficient to encourage storage and to dissuade
the holder of stocks from any sudden incursion onto the market , but should
not cover all of the actual costs , so that holders are encouraged to seak to
recover on the market the actual costs incurred . .Any .monthly increase which
covered or exceeded the actual costs would tend to make storage an end in
itself , which it must never be .
Conclusion     • *  •   .             ■ ■  -
The solution adopted by the Commission, namely:
- adequate' minimum flat-rate cover for the costs of financing and storage ;
             representative
- application of ^ates for the conversion of the unit of account into natio-
 '• nal currencies , ; ■ 1                                 *                  *
makes it possible to deal with the problems arising from divergent trends in
the economies of the various Member States .             '
 ---pagebreak---                                       - 13 -                 YI/2047/75-E
      Increase in the minimum quantities acceptable for intervention in the
      cereals sect or
      ( item 26 in the German Memorandum )
It would be difficult in this case to fix a uniform minimum quantity at a
very high level , since "the situation'of certain Member States such as. Luxem­
bourg has to be taken into account . By the adoption of a minimum quantity of
80 metric tons for cpmmon wheat , rye , barley and maize , and 40 metric tons
for durum wheat , Member States are left free to fix . the minimum quantity at
a higher level . Thus , France and Denmark have fixed a minimum quantity of 500
metric tons for common wheat and barley 6 The Netherlands have adopted the
figure of 250 metric tons for common v.heat and loo metric tons for barley.
There is nothing to prevent a Member State from stipulating a tonnage consi­
derably higher thai the minimum .
It would seem , however , that if the prices guaranteed to producers are not
to be excessively low, then the minimum quantities must not be too high. The
figure of 500 metric tons seems to be an acceptable level for most Member
States .
                               1           i            1
Conclusion
The Commission sees no need, to amend the existing rules ; those . Member States
which have fixed a minimum lower than ^00 metric tons could increase it to­
wards that level .
3 . , Increases and reductions in the intervention price to take account of
      the specific weight of cereals         - .
      ( item 27 in the German Memorandum ) .
As regards the increases and reductions in the intervention price for cere­
als to take account of their specific weight , the Commission is ready to con­
sider possible amendments to the rules now in force so that the procedures
for purchases and payments by the intervention agencies may be simplified.
However , no .consideration could be given to any proposal to amend the rules
governing cereals (Commission Regulations (EEC ) No 1492/71 and. 1493/71 ) which
sought to exclude weight per hectolitre as a , criterion of quality , unless a
thorough study of the technical and economic consequences was first made by
a working party .
 ---pagebreak---                                       - 14 -                   VI/ 2047/75-3
Conclusion
Any amendment s to the legislation must be designed to establish a simpler
 and more efficient method for assessing the quality of cereals , both for in­
tervention and on the free market . Such is the aim of the measures to be
taken by the Commission.
4«   ChantTing the syptem of price reductions for impurities in cereals
     ( item Ho 28 of the German Memorandum )
In the event that the calculation of the reductions applicable for impurities
in tenths of 1% proves too exacting , mahing it difficult to apply the rules
in certain Member States , provisions could be included in current legislation
(Commission Regulation (EEC ) Ho 1493/71 ) "to enable intervention agencies in
the Member States concerned, to adopt a coarser scale .      .
Conclusion
The Commission is now studying an amendment to be submitted to the competent
Management Committee .
5.   Sales^ cf intervention stocks on the internal market of the Community
     ( item 29 in the German Memorandum )
The. publication of the quality criteria ( specific weight ,- moisture content ,
impurities , year of harvest ) provides important information for . those ten­
dering for contracts . There should be no doubt ^surrounding the quality of ce­
reals offered for sale , since this can only impair, any assessment made by the
traders concerned .
Conclusion
The Commission does not envisage any amendments to the existing legislation.
 ---pagebreak---                                             - 15 -                  VI/2047/75-E
"V- Sale on 5 ii+erventicn stocks for eTOort
       –  I'll T« >»■ .11 »– IIIPIW I III
        (it en No 30 of the German Memorandum )
 (a.) 'The rules " governing invitations to tender .for -export were designed, to
       ensure that intervention stocks can "be sold under optimum market condi­
       tions and with the minimum loss for the EAGGF. These rules include the
       provisions of Article 5(5 ) of Regulation (EEC ) No 376/70 , pursuant to
       which it may be stipulated that tho tender should "be accompanied by an
       applicati<Dn for an export licence Kith advance fixing of the' ^.vport re­
       fund or levy . Thus , the tenderer mist. state the level of refnad or levy
       at which he is able to export ,           1hat a more accurate assessment can
       be made of the tenders submitted., - Any controls or administrative forma­
       lities required -under such provisions are justified by the objective
       pursued ,                          .
 (b ) The submission of tenders has been simplified by the issue of a new ver­
       sion of the list of the warehouses t/here the cereals offered are being
       held.
                                               ■  .
 (c ) The Cornmission intends in the near future' to propose a change in the
       current system of lodging deposits after the award of export contracts .
       Preliminary talks on this subject have already been held with the na­
       tional experts. - .                       \ "
 (d ) For some time the trade has been ur^ng that counter-bids should be pos-
     < sible . The Commission is not oppotsd to this in principle . Tae fact re­
       mains , however , that the counter -bid is a commercial instrument which
       can - only be used if account is taken of the specific requirements of the
       procedure for the award of contracts involving intervention stocks .
                                                    \
Conclusion
The' Commission will shortly submit appropriate amendments to the system now
in force! to the competent Management Committee .
 ---pagebreak---                                            - 16 -                  VI/ ?047/ 75-2
                                                                                  i
          B.    VTTIE PRODUCTS
 1.     Ifa.lt ipli city of the rules governing wine imports
        ( item 4-2 in "the German Memorandum ) -
 ( a ) Custons dutios
'i'he ■ methods of analysis end , in particular , the minimum temperature at which
 certain analyses must "be made , are laid down in Regulation ( EEC ) No 1539/71
which refers to the methods described in the international compendium issued
"by the II'JO ( international Wine Office ), as supplemented under the 1954 Con­
vention. Certain Member States have failed to ratify this convention, thus
creating some confusion regarding the implementation of these measures *
Conclusion
The Commission vail shortly take the necessary measures to include the me­
thods applicable " in extenso" in a Community act .
 0») Monotary compensât ory amounts
In the wine sector , the monetary compensatory amounts were suspended from
24 March 1975 » except for those applied in Germany , which have remained in
force uncha-nged not only in respect of Common Customs Tariff subheadings
22.05 C I and C II but also in respect of the product descriptions . Monetary
compensatory : amounts are applicable to all wines from non-member countries ,
no distinction being made between table wines and quality wines . In the - case
of Community wines , the amounts apply only to table wines coming - under ta­
riff subheadings 22.05 C I and C II .. The distinction made between the latter
and quality wines should pose no problems ,, since there is a different accom­
panying document for the quality wines .
2.      Simplification of Regulations ( EEC ) I'To 1769/72 > 1599/71 and 1770/72
        ( request by the United Kingdom )
 ( a ) Simplification of the docunents required in intrar-Community trade
        (T documents and VA documents ).
 ---pagebreak---                                          - 17 -           '      Vl/2047/73-^
      On the occasion of the general reformation of Community transit documents
     undertaken within the framework of simplifying Community procedures applied "by
     the Customs Administrations , the efforts made with a view to combining ;
     C'_:.:nunity transit documents (document ?) with the accompanying documents (document:
     VA) will be continued . Difficulties lie in the fact that the accompanying
     documents are required to check each consignment of the products, in question ^
     between the consignor and the consignee , even within a Member State . On the
     other hand T documents are only required for intra-Conmurity trc.de - which accoui,;
     for only 6jo of total Community wine production .
     It should be' stressed that this simplification is earnestly desired by certain
     professional organizations which have put forward concrete suggestions in this
     field .- •
     Conclusion :
     Dfespite the difficulties the Commission particularly within the framework of the
     work of reformulating the T forms , will examine the possibility of merging
     Community transit documents and the accompanying documents .
(b ) Simplification of the documents required for imports (VI documents and certificate
     of origin). •                                                  .
     The VI documents are not required for liqueur wines ; a designation-of-origin
     certificate must , however , accompany liqueur wines which have a registered
     designation of origin, . such as Port , Madeira , Sherry , Tokay (Aszu and •
     Szamorodni ), Samos Muscat , Setubal I'aiscatel , Boberg and Malaga . The Commission
     ifill shortly take the necessary measures to bring the certificate into line with
     a Community model . In point of fact it is only in the' case of the Spanish wines
                      t .*
     Jumilla, Valdepenas Rioja and Priorato that both docunents are required - the
     VI document as for all other wines intended for direct human consumption , and
     a designation-of-origin certificate to give entitlement , to the. tariff . preference
     granted by the Community within the framework of. "the tariff quota .
     Conclusion                                 .. ,
     Given the circumstances described above , the Commission is not considering
     any amendment to the existing lcgMatxon .
 ---pagebreak---                                        - 18 -                 VI/2047/75
     C. FRUIT AND VEGETABLES
1 . Possible abolition of- . quality control on consignment ^
    moving within Ilember States ( item ^5 in the German LIemorandui,ij  '
    The Commission put this matter before the Ilember States at the meeting of
the ad hoc Working Party. Subsequent discussion indicated that the strict
application of Regulation (EEC) n° 2638/69 did indeed poae certain problems
in se^'veral Ilember States , but no easy solution was at hand.
2 . Possible easing of quality control on fruit and vegetables exported
    in small quantities to non-member countries
    The experts from the Member States also discussed the question of compul­
sory checks on consignments of fruit and vegetables subject to common quality
standards which are exported to countries outside the Community, It was noted
that , with the exception of Germany , Ilember States had no difficulty in applying
Commission Regulation (EEC) n° 496/70 of 17 march 1970 , so that it seemed
psferabl *- to retain the existing legislation. It should be pointed dut that
both correal sory checks on export s of fruit and vegetables subject to quality
standards cad the issue of certificates for those lets considered to meet the
standards inquired for the products in question have been adopted by the     OECD
under the arrangements for the application of international standards to fruit
and vegetables , by two Decisions of the Council dated 28 July 1964 ( 76th session)
and 40 July 1973 (49 "th session ) respectively.
This being the case , it would be diffioult for the Community to take unilateral
action to limit controls to export consignments , of substantial size .
Conclusion : As Tegards Point 1 above , the Commission is now studying solutions
whereby effective quality control could be carried out without infringing the
rules concerning the establishment of the common market and will take the
necessary measures .
As regards Point 2 , however , the Commission does not envisage any amendments
to the existing legislation.                   ■                          -
    D. PATS     ' •      -- '
The Management Committee for Oils and Fats is now making a study with a view
to the simplification of the provisions governing the organisation of markets ,
involving in particular , changes in the procedure whereby oilseeds and olive
oil are offered for intervention and resold by the intervention agencies .
 ---pagebreak---                                          - 19 -              VI/20A7/75
                                                             *      i
       E. raCDTTCTS NOT COVERED BY imm. 71
 1 * Complexity of the system of varia bl e components chargeable OR imports
     ( item nu 41 in the German memorac/luri) -                       ;   ■ "
 ( a) to avoid fixing the variable comncaents at trivial amounts of ~o econo­
mic significance and simplify the task of the authorities responsible for
collect ica the Commission submitted to the Council last month a c' .'aft regu­
lation reining- the threshold below wUi -.h no variable componat is charged.
Conclusion :                                    • .
The proposed measure sail , in praotirfa , have the effect of abolishing about -
5fo of the va1. '.table components charged on imported products and 50 7° " of suoh
components charged on trade, between ihe original Community and the new Member
States and on trade between the latter.
(b) It has Men proposed that a margin of 1 u. a, /lOO leg should be introduced,
within which the rate of the variable component would be a fixed one , to avoid
excessively frequent changes to theaate .               •
This problem has been examined by the , "Article 235 " Group of Experts , who
concluded thai the advantages of the proposed solution wpuld in fact be minimal ;
on the whole , therefore , the expoerts were not in favour of this measure .
Conclusion : The Commission does not envisage any amendment to the existing
legislation.                                        " '
( c) with the same purpose in mind, tha Commission has examined the possibility
of increasing the interval at which the new rates for the variable components
are fixed from 3 to 4 . .months , on set dates. It was pointed out , however , that
this problem is closely connected with ohanges in the threshold price for
basic agricultural products,          ,s                  '■
Conclusion ; It will be proposed that the interval between ohanges in the
variable components should be increased so that the dates of such <faanges
correspond , wherever possible , to£ i;he dates on which the threshold prices
applicable to bas&o products are changed to avoid the need for a further fixing
for the variable componsis .
2 . Simplification of .the machinery for granting refunds ( item n°44' in the German
                                                                    mémorandum) .
The Commission has examined this problem with the assistance of experts from the
Member States. No agreement has been reached on ari amendment to the rules now in.
Conclusion :                                                                     force.
The Commission does not envisage any amendment to the existing legislation.
 ---pagebreak---                                                             VI/2047/75-E
                                                            Orig. P
                                                            RW/gr/nc
                                 • шм II            .
                      DRAFT RESOLUTION OF THE COUNCIL
               concerning measures to simplify the agricultural
                                    législation
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                                     ;
Having regard to the draft prepared t>3r the Conmissionj
A\*are of the difficulties facing "both Community and national authorities in
connection with the management and implementation of . the common agricultural
policy , . particularly in view of the need to react with increasing repidity
to market development sj
Desiring , nevertheless , to improve the situation as far as possible }      ■
HAS ADOPTED THIS RESOLUTIONS      '
                                          I.
The Council stresses the need to ensure that the agricultural legislation
can be implemented without excessive difficulty both by the national autho­
rities and by the trade interests concerned#
                                         II .
The Council takes note of the work undertaken by the Commission with a view
to simplifying Community legislation on agriculture and requests the Commis­
sion to continue its efforts in this direction .
                                        III .
The Council requests the Member States to improve coordination between all
the national bodies concerned with implementation of the agricultural legis­
lation, and ^ particular between 'tlxe "customs authorities and the oifyer r
 bodies .
 ---pagebreak---                                       ~2-
The Council notes that
 acts to be adopted under the common agricultural policy must in the
.."rjority of cases , as regards the tine limit to be allowed before their
entry into force , be regarded as relating to measures justified by
 compelling reasons of an economic nature within the meaning of the
Resolution of 27 June 1974 concerning measures to be taken with a view
to simplifying the task of the customs authorities ; whereas this is
mainly due to the operational requirements of the common agricultural policy.
           >         ' ' . "
Consequently, as regards the entry into force of agricultural legislation,
the Council noting that the time limit of six weeks laid down in its
Resolution of 27 June 1974 cannot always be observed?
  «• considers that a reasonable time limit should nevertheless be provided
     so as to take acoount in each case of the time limits which in practice
     are necessary for the administrative application of this legislation ;
     this time limit should not in principle be less than one week ;
■ – will ensure that , Khan adopting its acts , it leaves the Commission'
     adequate time for the preparation , under normal conditions , of the
     Inpleaenting - provisions arising therefrom and will request the
     Commission to submit its proposals in good time .