CELEX: 51994PC0480
Language: en
Date: 1994-11-08
Title: Proposal for a COUNCIL REGULATION (EC) on the crediting of securities, deposits and guarantees furnished under the common agricultural policy and subsequently forfeited, and repealing Regulation (EEC) No 352/78

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           C0M(94) 480 final
                                           Brussels, 08.11.1994
                                           94/ 0254 (CNS)
                             Proposal for a
                        COUNCIL- REGULATION (EC)
        on the crediting of securities, deposits and guarantees
           furnished under the common agricultural policy and
    subsequently forfeited, and repealing Regulation (EEC) No 352/78
                     (presented by the Commission)
 ---pagebreak---                         Explanatory memorandum
In accordance with Council Regulation (EEC) No 352/78 now in force,
securities furnished in connection with the issue of export or import
licences together with those furnished under a tendering procedure to
ensure the submission of genuine tenders are forfeited for the benefit of
national budgets. Since they are not used to reduce EAGGF expenditure,
these securities are not subject to regular verification by the EAGGF of
the satisfactory application of the rules governing their establishment
and release.
The attached draft Regulation aims to remedy this situation by including
these securities among those which must be forfeited for the benefit of
the EAGGF.
At the same time this measure aims to ensure implementation of the
commitments undertaken by the Community under the GATT on limiting the
quantity and value of subsidized Community exports.
 ---pagebreak---                                    Proposal
                                     ' • f«Mr
                      Council Regulation (EC) Ho      /94
                                       of
           on the crediting of securities, deposits «red guarantees
              furnished under the common agricultural policy and
       subsequently forfeited, and repealing Regulation (EEC) Ito 352/78
rm COUNCIL- <^ TOE BM&EM     UNION*
Waving regard to the Treaty establ ishing the European Community, and in
particular Article 43 thereof.
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Pariiament,
Whereas CounciI Regulation <I€C) No 352/78 of 20 February 197S*1>
establishes in most cases where securities required in connection with
operations relating to agricultural products are forfeited that these
securities are to be used to reduce EAGGF expenditure; whereas as regards,
 in particular, securities furnished in connection with the issue of export
or import licences and those furnished under a tendering procedure to ensure
the submission of genuine tenders, provision is made, however, that the
securities are to be retained by the Member States, assuming that they do
not cover a risk of financial loss by the EAGGF;
Whereas this latter assumption has proved to be uncertain in the light of
experience and of the need for the Commission to ensure strict compliance
with the conditions laid down governing the furnishing and release of those
securities as part of the ver if.ication. carried out pursuant to Article 9 of
Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the
common agricultural policy*2^, as last amended by Regulation (EEC) No < 3 ) ;
whereas in order to ensure the uniform application of those conditions and,
more especially, to ensure implementation of the commitments undertaken by
the Community under the GATT on limiting the quantity and value of
subsidized Community exports, provision should be made for those securities
 (1) 0J No L 50, 20.2.1978, p. 1
(2) OJ No L 94, 21.4.1970, p. 13
(3) 0J No L ...
 ---pagebreak--- to be included among those which must be forfeited for the benefit of the
EAGGF;
Whereas, in the interest of clarity, Regulation (EEC) No 352/78 should be
replaced in its entirety,
HAS ADOPTED THIS REGULATION:
                                    Article 1
1. Any security, deposit or guarantee furnished and forfeited pursuant to
    provisions adopted under the common agricultural policy, hereinafter
    referred to as 'security', shall be used in its entirety by the paying
    authorities or bodies in the Member States to reduce EAGGF expenditure.
 2. However, any security which is forfeited in respect of food aid
    operations shall be used by the paying authorities or bodies in the
    Member States to reduce the food aid expenditure concerned.
 3. This Regulation shall not apply to any security furnished in order to
     guarantee payment of a duty constituting part of .the Communities' own
     resources as defined in Decision 88/376/EEC, Euratom, where the amount of
     such duty has already been determined pursuant to Article 2(1) of
     Regulation (EEC, Euratom) No 1552/89 and made available to the
     Commission.
                                     Article 2
  1. The securities referred to in Article 1(1) shall be deducted:
      (a)  from the refunds concerned if the completed or proposed operation in
           respect of which the security was furnished concerns trade with
           third countr ies;
      (b)  from the intervention expenditure concerned in all other cases.
  2. If the expenditure chargeable to the EAGGF is supported by accounts, such
      accounts shall be credited with any security referred to in Article 1(1).
                                         3
 ---pagebreak---                                   • Article 3
Detailed rules for the application of this Regulation shaft, where
necessary, be adopted in accordance with the procedure fa id down in Article
13 of Regulation CE1C> Me> 729/?©.
                                   Article 4
Regulation (EEC) No 352/78 is hereby repeated with effect from t January
This Regulation shaft enter Into force on the seventh day following its
publication In the Off Ida I Journal of the European Communities.
It shall apply to securities forfeited fro» 1 January 1995.
This Régulât ion shal t be binding In its ent irety and direct ty apoiicahre
atl Meaber States.
Done at Brussels»
                                                 . for the Council
                                                   The PFestiiient
 ---pagebreak---         F i n a n c i a l              S t a t e m e n t
1. BUDGET HEADING : Titles B-1. B-2 and B-3                             APPROPRIATIONS : ECU 35 593 million
2. TITLE :
    Proposal for a Council Regulation on the crediting of securities, deposits and guarantees furnished under
    the common agricultural policy and subsequently forfeited, and repealing Regulation (EEC) No 352/78
3. LEGAL BASIS : Article 43 of the Treaty
4. AIMS
    To ensure regular verification of the satisfactory application of the rules governing the establishment
    and release TO securities furnished in connection with the issue of export and import licences and those
    furnished under a tendering procedure by including them among htose which must be forfeited for the
    benefit of the EAGGF
5. FINANCIAL IMPLICATIONS           PERIOD OF 12 MONTHS   CURRENT FINANCIAL YEAR    FOLLOWING FINANCIAL YEAR
                                                                  (   95    )             (    96     )
5JO EXPENDITURE
       - CHARGED TO THE EC BUDGET
          (REFUNDS/INTERVENTIONS)
                                           p.m.                      p.m.                     p.m.
       - NATIONAL AUTHORITIES
       - OTHER
5.1 REVENUE
       - OWN RESOURCES OF THE EC
          (LEVIES/CUSTOMS DUTIES)
        - NATIONAL
                                          1997               1998             1999               2000
5.0.1 ESTIMATED EXPENDITURE               p.m.               p.m.              p.m.               p.m.
 5.1.1 ESTIMATED REVENUE
 5.2 METHOD OF CALCULATION
 B.O CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?
                                                                                                        YES
 €.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ?
                                                                                                        YES/NO
  6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ?
                                                                                                        YES/NO
  6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ?
                                                                                                        YES/NO
  COMMENTS :
  Up to now the securities in question are forfeited to the national budget. Under this measure they will be
  used to reduce EAGGF expenditure. Figures cannot be given for the resulting drop in EAGGF Guarantee Section
  expenditure.
 ---pagebreak---                                                                     BSN 0254-1475
                                                      DOCUMENTS
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