CELEX: 51994PC0246
Language: en
Date: 1994-06-10
Title: Proposal for a COUNCIL REGULATION (EC) on special arrangements for imports of maize and sorghum into Spain for the year 1994

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                         COMMISSION OF THE EUROPEAN CCMVKJNITIES
                                                                 C0M(94) 246 final
wv                                                               Brussels, 10.06.1994
                                                                 94/0145 (ACC)
                                                   Proposal for a
                                              COUNCIL REGULATION (EC)
                              on special arrangements for imports of maize and sorghum
                                            into Spain for the year 1994
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                                           (presented by the Commission)
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                           EXPLANATORY MEMORANDUM
According to the Agreement between the European Economic Community and the
United States of America for the conclusion of the negotiations under GATT
Article XXIV.6, as approved by Council Decision of 30 January 1987, the
Community was committed to open an annual quota of 2 million tonnes of maize
and Q.3 million tonnes of sorghum for import into Spain for each of the
years 1987 to 1992. These annual quotas were to be reduced by the quantities
of certain cereal substitutes imported into Spain within the same year.
An extension of the initial Agreement between the Community and the United
States of America for 1994 was approved by Council Regulation (EC) No 532/94
of 7 MArch 1994. special arrangements for imports of maize and sorghum into
Spain should be laid down for 1994, with the aim of ensuring fulfilment of
the above-mentioned commitment. As the Agreement was concluded under
Article 113 of the Treaty, the Community has exclusive competence for these
arrangements.
Accordingly, the present draft regulation provides for special arrangements
for imports with retroactive effect from 1 January 1994.
 ---pagebreak---                                  Proposal for
                       COUNCIL REGULATION (EC) No
                               of          1994
          on special arrangements for imports of maize and sorghum
                        into Spain for the year 1994
THE COUNCIL OP THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in
particular Article 113 thereof,
Having regard to the proposal from the Commission1,
Whereas, under Council Regulation (EC) No 532/94 of 7 March 19942 extending
the measures taken under the Agreement between the European  Community and the
United States of America for the conclusion of the negotiations under GATT
Article XXIV.6, the Community undertook, in respect of the year 1994, to open
a quota for imports into Spain of two million tonnes of maize and 300 000
tonnes of sorghum, minus the quantities of certain grain substitutes imported
into that country during the same year; whereas the quantities of maize and
sorghum imported must be used or
processed in Spain; whereas the Community has sole competence for the said
Agreement;
Whereas, to ensure that the Agreement between the European Economic Community
and the United States of America is implemented, the extended arrangements
provide for direct purchase on the world market or application of a levy
reduction system; whereas, however, imports of maize and sorghum into Spain
effected on preferential terms may create difficulties for the Community
market; whereas, to overcome that difficulty, provision should be made for the
possibility of applying a countervailing duty to processed products exported
either to third countries or to the rest of the Community;
1 OJ No C
2 OJ No L 68, 11.03.1994, p. 1.
 ---pagebreak---                                           - 2 -
Whereas the combination of the advantages provided for under the arrangements
established by Council Regulation (EEC) No 715/90 of 5 March 1990 3 , as last
amended by Commission Regulation (EEC) No 444/924 applicable to imports into
the Community of sorghum and maize originating in the African, Caribbean and
Pacific   (ACP) states or in the overseas countries and territories and under
this Regulation is liable to create disturbances on the Spanish market in
cereals;     whereas   that  difficulty   can   be  overcome   by    setting  a   special
reduction of the levy on maize and sorghum imported under this Regulation;
whereas provisions are required to cover the operations arising                from this
Regulation according to the mechanisms laid down by Council Regulation (EEC)
No 729/70     of  21 April   1970 on   the   financing  of   the   common   agricultural
                                                                     6
policy^, as last amended        by Regulation    (EEC) No 2048/88 , and by Council
Regulation     (EEC) No 1883/78 of 2 August 1978 laying down general rules for
the   financing     of   interventions   by   the   European   Agricultural     Guidance
Guarantee     Fund,  Guarantee   Section^,   as  last  amended    by   Regulation   (EEC)
           8
No 787/89 ,
HAS ADOPTED THIS REGULATION:
                                   Article 1
For 1994 imports from third countries, for free circulation in Spain, of a
maximum quantity of two million tonnes of maize and 300 000 tonnes of sorghum
shall be effected as provided in the following Articles.
3 OJ No L 84, 30.3.1990, p. 85.
4 OJ No L 52, 27.2.1992, p. 7.
5 OJ No L 94, 28.4.1970, p. 3.
6 OJ No L 185, 15.7.1988, p. 1.
7 OJ No L 216, 5.8.1978, p. 1.
8 OJ No L 85, 30.3.1989, p. 1.
 ---pagebreak---                                         - 3 -
                                     Article 2
 1.  The quantities referred to in Article 1 shall be reduced in proportion to
     any quantities of maize gluten, brewers' grains and citrus pulp imported
     into  Spain   from  third  countries   during  the   year  1994. Where   it is
     ascertained   that the quantities of such products        imported  into Spain
     under the cover of documents establishing their Community status develop
     abnormally, the necessary action shall be taken in accordance with the
     procedure laid down in Article 23 of Council Regulation (EEC) No 1766/92
     of 30 June 1992 9 .
     The quantities of maize and sorghum referred to in Article 1 shall be
     allocated to processing or use in Spain.
                                     Article 3
1.   Without prejudice    to Article   4, in respect     of  imports  of maize and
     sorghum into Spain, but within the quantitative limits set in Article 2,
     a  reduction   shall  be  applied   to the   levy  fixed   in accordance   with
     Article 10 of Regulation (EEC) No 1766/92.
2.   The  amount  of  the reduction    shall be   fixed,   in accordance   with  the
     procedure laid down in Article 23 of Regulation (EEC) No 1766/92, at a
     level enabling    disturbance of the Spanish market       to be avoided. The
     reduction may also be fixed by a tendering procedure.
     The reduction may be differentiated for imports of maize and sorghum into
     Spain under Regulation (EEC) No 715/90.
     The reduction shall be applied to imports of maize and sorghum into Spain
     effected on the basis of a licence valid only in that Member State.
9 OJ No L 181, 1.7.1992, p. 21
 ---pagebreak---                                        - 4 -
                                    Article 4
 1.  with a view to effecting the imports referred to in Article 1, it may be
      decided, under the procedure laid down in Article 23 of Regulation (EEC)
     No 1766/92, that the Spanish intervention agency shall purchase directly
     on the world market quantities of maize and sorghum to be determined, and
      shall place them under customs warehousing procedure as provided for in
     Council   Regulation   (EEC)  No 2503/88     on   customs   warehouses 10  and
                                      11
     Regulation    (EEC)   No 2561/90      laying    down   provisions    for   the
     implementation thereof.
2.   Quantities purchased pursuant to paragraph 1 shall be put up for sale on
     the Spanish domestic market, in accordance with the procedure laid down
     in Article 23 of Regulation (EEC) No 1766/92, on terms enabling market
     disturbance to be avoided.
3.   When the goods are placed in free circulation, an agricultural levy shall
     be charged, equal to the average of the levies applicable in Spain and
     fixed for the cereals concerned during the first 25 days of the month
     preceding the date of acceptance of the declaration of entry into free
     circulation, minus the difference between the threshold price and the
     intervention price for the same month.
     Entry into free circulation shall be effected by the Spanish intervention
     agency.
     When the purchasers of the goods make payment to the intervention agency,
     the selling price minus the levy shall correspond to revenue from sales
     within the meaning of Annex I to Regulation (EEC) No 3492/90 12 .
4.   The  purchasing  operation  provided   for  in paragraph    1 shall   rank  as
     intervention  for the purpose    of  stabilizing   the  agricultural   markets
     within the meaning of Article 1(2)(b) of Regulation (EEC) No 729/70.
10 OJ No L 225, 15.8.1988, p. 1.
11 OJ No L 246, 10.9.1990, p. 1.
12 OJ No L 337, 4.12.1990, p. 3.
 ---pagebreak---                                         - 5 -
      Payments  by  the   intervention   agency for  buying  as  provided   for  in
     paragraph 1 shall be borne by the Community as they arise and shall be
     treated in the same way as the expenditure referred to in Article 2 of
     Regulation (EEC) No 1883/78. The Spanish intervention agency shall record
     the value of     the merchandise   purchased  at a price of    'zero*  in the
     account referred to in Article 4 of Regulation (EEC) No 1883/78.
                                     Article 5
At a frequency to be determined, the Commission shall record in accounts:
     the   quantities   of maize  and   sorghum imported  into  Spain  from   third
     countries,
     the quantities of maize gluten, brewers' grains and citrus pulp imported
     into Spain.
For  this   purpose,   the  Spanish   authorities  shall  supply  the   commission
regularly with all necessary information.
                                 Article 6
The imports referred to in Article 2 shall be effected not later than the end
of February of the following year. In the event of technical difficulties duly
noted by the commission a period of importation exceeding that time limit may
be laid down in accordance with the procedure laid down in Article 23 of
Regulation (EEC) No 1766/92.
 ---pagebreak---                                       - 6 -
                               Article 7
Where the markets for products derived from maize or sorghum are disturbed, a
countervailing duty may be introduced in accordance with the procedure laid
down in Article 2 3 of Regulation (EEC) No 1766/92 for exports of t**« relevant
products from Spain or for their consignment to other Member States.
                               Article 8
The following shall be adapted in accordance with the procedure laid down in
Article 23 of Regulation (EEC) No 1766/92:
     any measures needed to ensure that the cereals, the levy for which has
     been reduced, are actually processed or used in Spain; such measures may
     in particular provide for the deposit of a security,
     the other detailed rules for the application of this Regulation, and in
     particular those relating to the issue of import licences; such rules may
     stipulate that the licences may be issued only in Spain, after commission
     endorsement.
                            Article 9
This Regulation shall enter into force on the 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
                                                                                Date: 24.5.94
  1. BUDGET HEADING: Expenditure Bl-1003                                        APPROPRIATIONS: 214.0
                      Revenue     Bl-1000                                                       1023.4
  2. TITLE:
     Proposal for a Council Regulation (EC) on special arrangements for imports of maize and sorghum into
     Spain for the year 1994
  3. LEGAL BASIS: EC Treaty, and in particular Article 113 thereof
  4. AIMS OF PROJECT:
     To fix the quantities and lay down the implementing rules for the special arrangements for imports of
     maize and sorghum into Spain following the extension of the Agreement on the matter by Council Regulation
     (EC) No 532/94
  5. FINANCIAL IMPLICATIONS                  PERIOD OF 12 MONTHS       CURRENT FINANCIAL      FOLLOWING FINANCIAL
                                                                          YEAR (1994)             YEAR (1995)
                                                (ECU million)            (ECU million)           (ECU million)
 5.0. EXPENDITURE
       - CHARGED TO THE EC BUDGET
          (REFUNDS/INTERVENTIONS)                    88.7                     p.m.                    88.7
 5.1. REVENUE
     - OWN RESOURCES OF THE EC
        (LEVIES/CUSTOMS DUTIES)                      52.5                     10.5                    42.0
                                                  1996              1997                1998             1999
 5.0.1. ESTIMATED EXPENDITURE                    p.m.
 5.1.1. ESTIMATED REVENUE
 5.2. METHOD OF CALCULATION:
       Revenue: 1.5 million t x ECU 29/t x 1.207 (DR) = ECU 52.5 million. ECU 29/t is the difference between the
       intervention price for maize with 5 monthly increases and the world market price (C.I.F.) as contained
       in the 1995 PDB [(106.6 + 5 x 1.16) - (70 + 13)] = 29.
       It is assumed that 20% of the revenue will be received in 1994.
       Expenditure: 1.5 million t x ECU 49/t x 1.207 (DR) = ECU 88.7 million.
       ECU 49/t is the refund for maize as contained in the 1995 PDB.
 6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                             YES
 6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                             YES
 6.2. IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                             NO
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                         YES
COMMENTS :
The quantity provided for in Article 1(1) of 2.3 million t of maize and sorghum is reduced by 800 000 t,
corresponding to the estimated quantities of maize gluten, brewers' grains and citrus pulp imported into
Spain in 1994 in accordance with Article 2 of the same Regulation.
The 1995 PDB takes account of these imports.
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(94) 246 final
                                                      DOCUMENTS
EN                                                                              03
                                 Catalogue number : CB-CO-94-260-EN-C
                                                             ISBN 92-77-70099-8
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