CELEX: 31967R0120
Language: en
Date: 1967-06-13 00:00:00
Title: Regulation No 120/67/EEC of the Council of 13 June 1967 on the common organisation of the market in cereals

Official Journal of the European Communities                                       33
 19.6.67                     OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES                                        2269/67
                               REGULATION No 120/67/EEC OF THE COUNCIL
                                                    of 13 June 1967
                                 on the common organisation of the market in cereals
 THE COUNCIL OF THE EUROPEAN ECONOMIC                          on which agricultural prices in general depend in
COMMUNITY,                                                     large measure made it more difficult for farmers to
                                                               make medium-term forecasts and was liable to cause
                                                               unproductive investments ; whereas, therefore, a
Having regard to the Treaty establishing the Euro­             single price system for cereals for the Community
pean Economic - Community, and in particular                   should be introduced from the 1967/68 marketing
Articles 42 and 43 thereof;                                    year ;
Having regard to the proposal from the Commission ;
                                                               Whereas, owing to the price mechanism brought into
Having regard to the Opinion of the European Par­              being by Regulation No 19, the creation of a single
liament1 ;                                                     market in cereals for the whole Community does not
                                                               depend solely on the removal of all obstacles to the
                                                               free movement of goods within the Community and
Whereas the operation and development of the com­              on the establishment of identical protection at its ex­
mon market in agricultural products must be accom­             ternal frontiers, but also on the adoption of a system
panied by the establishment of a common agricultural           comprising, as provided for in Article 13 of Regu­
policy to include in particular a common organis­              lation No 19, a target price valid for the whole Com­
ation of agricultural markets which may take various           munity, a single threshold price, a single method of
forms depending on the product;                               fixing intervention prices and finally a single frontier
                                                               crossing point for the Community to be used for de­
Whereas Regulation No 192 provided that the com­              termining c.i.f. prices for products from third countries ;
mon organisation of the market in cereals should be           whereas, therefore, the necessary adjustments should
established progressively from 1962 ; whereas the              be made to the system provided in Regulation No 19 ;
main features of the market organisation thus estab­
lished are the annual fixing of target prices, published
before the winter sowing so as to allow producers to          Whereas the aim of the common agricultural policy is
make their crop plans, and the fixing, on the basis of        to attain the objectives set out in Article 39 of the
the target price, of an intervention price, at which the       Treaty; whereas in the cereals sector, in order to
competent agencies are obliged to buy in the cereals           stabilise markets and to ensure a fair standard of
offered to them, and of a threshold price to which            living for the agricultural community concerned,
the price of imported products must be equated by             intervention agencies should continue to take inter­
means of a variable levy;                                      vention measures on the market, such measures
                                                              however to be standardised so as not to impede the
Whereas a progressive approximation of the target              free movement of cereals within the Community ;
prices for basic products was provided for in Article
6 (4) of Regulation No 19 so that a common target
price might be attained by the end of the transitional        Whereas free movement of cereals within the Com­
period ; whereas, however, the method of progressive          munity should enable surpluses in production areas
reduction of disparities between target prices fixed by       to be offset against requirements in deficit areas ;
Member States has encountered considerable difficult­         whereas, so as not to impede such offsetting, inter­
ies; whereas the uncertainty about the final level of         vention prices derived from the basic price should be
cereal prices to which this process was leading and           fixed in such a way that the differences between them
                                                              reflect the disparities which, given a normal harvest,
                                                               arise under natural conditions of price formation on
1 OJ No 103, 2.6.1967, p. 2063/67.                            the market, and that the forces of supply and demand
2 OJ No 30, 20.4.1962, p. 933/62.                             may have free play;
 ---pagebreak--- 34                                 Official Journal of the European Communities
Whereas the smooth adjustment of the market to the           situation on the market so requires, prohibiting the
regionalisation of prices requires intervention              use of 'inward processing arrangements'; whereas,
agencies to be able, in special circumstances, to take       moreover, the refund should be fixed in such a way
intervention measures suited to those circumstances ;        that operations under inward processing arrange­
whereas, however, so that the required uniformity of         ments do not lead the Community processing indus­
intervention systems may be maintained, those special        try to use, with a view to export, basic products
circumstances should be assessed and the appropriate         imported from third countries in preference to
measures determined at Community level ;                     Community basic products ; whereas the creation of
                                                             a single market in cereals necessitates Community
Whereas the target prices, intervention prices and           control of the inward processing trade ;
threshold prices should, in the course of the market­
ing year, be subject to a certain number of monthly          Whereas the competent authorities . must be in a
increases in order to take account, among other              position constantly to follow trade movements in order
things, of storage costs and interest charges for            to assess market trends and to apply the measures
storing cereals in the Community and of the need to          laid down in this Regulation as necessary ; whereas,
ensure that the disposal of stocks conforms to market        to that end, provision should be made for the issue of
requirements ;                                               import and export licences accompanied by the lodg­
                                                             ing of a deposit guaranteeing that the transactions for
Whereas it may prove impossible to give producers of         which such licences are requested are effected ;
durum wheat sufficient guarantees by fixing a price
which takes into account the ratio existing normally         Whereas the levy system makes it possible to dispense
on the world market between durum and common                 with all other protective measures at the external
wheat prices; whereas this ratio should be respected         frontiers of the Community ; whereas, however, the
so far as possible in the Community because of the           common price and levy machinery may in excep­
interchangeability of these two products ; whereas           tional circumstances prove defective; whereas, in such
provision must therefore be made for the possibility         cases, so as not to leave the Community market with­
of granting aid to producers of durum wheat;                 out defence against disturbances which may arise
                                                             therefrom after the import barriers which existed pre­
Whereas because of the special situation on the mar­         viously have been removed, the Community should
ket in starches and, in particular, the need for that in­    be enabled to take all necessary measures without de­
dustry to keep prices competitive with those for sub­        lay;
stitute products, it is necessary to ensure by means of
a production refund that the basic products used by          Whereas the establishment of a single market in
the industry are made available to it at a lower price       cereals involves the removal at the internal frontiers of
than that which would result from applying the sys­          the Community of all obstacles to the free movement
tem of levies and common prices ; whereas, for similar       of the goods in question ;
reasons and because of the interchangeability , of
starches with quellmehl and maize groats and meal ,          Whereas the establishment of a single market based
production refunds should also be granted in respect         on a common price system would be jeopardised by
of the latter products ;                                     the granting of certain aids ; whereas, therefore, the
                                                             provisions of the Treaty which allow the assessment
Whereas the creation of a single Community market            of aids granted by Member States and the prohibition
for cereals involves, apart from a single price system,      of those which are incompatible with the common
the introduction of a single trading system at the ex­       market should be made to apply to cereals ;
ternal frontiers of the Community; whereas a trading
system including levies and export refunds, combined         Whereas the transition from the system provided in
with intervention measures, also serves to stabilise         Regulation No 19 to that established by this Regu­
the Community market, in particular by preventing            lation should be effected as smoothly as possible ;
price fluctuations on the world market from affecting        whereas, to that end, Regulations Nos 119/66/EEC1
prices ruling within the Community ; whereas, there­         and 90/67/EEC2 have already provided for certain
fore, provision should be made for charging a levy on        transitional measures but others may prove necessary;
imports from third countries and for the payment of          whereas, in addition, Italy should be authorised for
a refund on .exports to these countries, both being de­      some years to take measures to reduce the impact of
signed to cover the difference between prices ruling         the new system on the level of prices for feed grain in
outside and within the Community; whereas,                   that Member State in order to facilitate the adjustment
moreover, in respect of products processed from              of the Italian market to that new system ;
cereals to which this Regulation applies, account
should be taken of the need to ensure a measure of           Whereas the common organisation of the market in
protection for the Community processing industry ;           cereals must include the products of primary process­
Whereas, in addition to the system described above,
and to the extent necessary for its proper working,          1 OJ No 149, 11.9.1966, p . 2737/66.
provision should be made for regulating or, when the         2 OJ No 89, 9.5.1967, p. 1749/67.
 ---pagebreak---                                     Official Journal of the European Communities                                    35
ing which contain cereals or certain products which           munity for the marketing year beginning during the
do not contain cereals but which are directly inter­          following calendar year :
changeable in their use with cereals or with products
obtained from cereals ;                                       — a target price for each of the following: common
                                                                  wheat, durum wheat, barley, maize and rye;
Whereas the common organisation of the market in
cereals must take appropriate account, at the same            — a basic intervention price for each of the follow­
time, of the objectives set out in Articles 39 and 110            ing : common wheat, durum wheat, barley and rye
of the Treaty;                                                    and, unless the provisions of Article 4 (2) are
                                                                  applied, for maize;
Whereas, in order to facilitate implementation of the
proposed measures, a procedure should be provided             — a guaranteed minimum price for durum wheat.
for establishing close co-operation between Member
States and the Commission within a Management                 2.     These prices shall be fixed for a standard quality
Committee ;                                                   to be determined for each of the above cereals.
                                                              3 . The target price and the basic intervention price
HAS ADOPTED THIS REGULATION :                                 shall be fixed for Duisburg at the wholesale stage,
                                                            ' goods delivered to warehouse, not unloaded.
                         Article 1                            The guaranteed minimum price for durum wheat
                                                              shall be fixed for the marketing centre of the region
The common organisation of the market in cereals              with the largest surplus, at the same stage and under
shall comprise a price and trading system and cover           the same conditions as the target price.
the following products :
                                                              4. The prices mentioned in this Article and the
         CCT
        heading                 Description of goods          standard qualities for which they are fixed shall be
          No                                                  determined in accordance with the procedure laid
                                                              down in Article 43 (2) of the Treaty.
 ( a) ex 10.01       Common wheat (including mesiin)
          10.02      Rye                                                               Article 3
          10.03      Barley
          10.04      Oats
                                                              The marketing year for all the products listed in
                                                              Article 1 shall begin on 1 August and end on 31 July
          10.05      Maize                                    of the following year.
          10.07      Buckwheat, millet, canary seed and
                     grain sorghum; other cereals
                                                                                       Article 4
(b) ex 10.01         Durum wheat
                                                              1 . In order to guarantee to producers that the mar­
                                                              ket price does not fall below a minimum level, de­
(c)       11.01 A    Wheat or spelt flour                     rived intervention prices for common wheat, durum
          11.01 B    Mesiin flour                             wheat, barley, maize and rye shall be fixed for the
                                                              Community, in addition to the basic intervention
      ex 11.01 C     Rye flour                                price.
      ex 11.02 A 1   Wheat groats and meal (common
                     wheat and durum wheat)                   The derived intervention prices shall be fixed for the
                                                              same standard quality, at the same stage and under
 (d) The products listed in Annex A to this Regulation.       the same conditions as the target price, for all mar­
                                                              keting centres in the Community except Duisburg.
                                                              The derived intervention prices shall be calculated in
                                                              such a way that the differences between them corres­
                          TITLE I                             pond to the price disparities in prices to be expected
                                                              in a normal harvest under natural conditions of price
                                                              formation on the market and allow the free move­
                           Prices                             ment of cereals within the Community in accordance
                                                              with the requirements of the market.
                         Article 2
                                                              2. By way of derogation from the provisions of
1.      Simultaneously and before 1 August of each            paragraph 1 , a single intervention price shall be fixed
year the following prices shall be fixed for the Com­         for maize for all the marketing centres for that
 ---pagebreak---  36                                  Official Journal of the European Communities
 cereal, provided that the quantities of home-grown             The threshold price shall be fixed for the same stan­
maize marketed in a normal harvest remain below                 dard quality as the target price.
45% of the amount . consumed within the Com­
munity. This price shall correspond to the lowest de­          2. For a standard quality of each of the products
rived intervention price which would have been fixed           listed in Article 1 (a) which are not mentioned in
 in the Community if the provisions of paragraph 1              paragraph 1 above, a threshold price shall be fixed
 had applied .                                                 for the Community in such a way that the price for
                                                                those cereals mentioned in paragraph 1 which are in
 3 . Intervention prices for common wheat, durum                competition with these products shall reach the target
 wheat, barley and rye shall be effective from 1               price on the Duisburg market.
 August to 31 May of the following year. From 1 June
 to 31 July the intervention prices effective for August       3 . For a standard quality of each of the products
 of the following marketing year shall apply.                   listed in Article 1 (c) a threshold price shall be fixed
                                                               for the Community, account being taken of the ob­
Intervention prices for maize shall be effective from           jective stated in paragraph 2 and of the need to pro­
 1 August to 31 July of the following year.                    tect the processing industry.
 4. The Council, acting in accordance with the                 4.       The threshold prices shall be calculated for Rot­
voting procedure laid down in Article 43 (2) of the            terdam .
 Treaty on a proposal from the Commission, shall lay
 down each year before 15 March for the following
 marketing year :                                              5.       The Council, acting in accordance with the
                                                               voting procedure laid down in Article 43 (2) of the
 ( a) the marketing centre to which the lowest derived         Treaty on a proposal from the Commission, shall de­
      intervention price applies and the price in ques­        termine :
      tion in respect of each Member State and each             ( a) the rules for fixing threshold prices for products
      kind of cereal produced in any quantity in that                referred to in paragraph 3 and the standard qual­
      Member State, except for maize where paragraph                  ity for products referred to in paragraphs 2 and
      2 applies ;                                                    3;
 (b) the principal marketing centres and the derived           (b) before 15 March of each year, for the following
      intervention prices effective in those centres ;               marketing year, the threshold prices, for products
                                                                      referred to in paragraphs 1 and 2.
(c) the intervention price for maize provided for in
      paragraph 2, if the provisions of that paragraph
      are applied.                                             6.       Threshold prices for products referred to in
                                                               paragraph 3 shall be fixed before 15 March of each
                                                               year for the following marketing year in accordance
5.     Rules shall be adopted in accordance with the
                                                               with the procedure laid down in Article 26.
procedure referred to in paragraph 4 for :
(a) determining marketing centres other than those
      mentioned in paragraph 4 (b);                                                      Article 6
(b) deriving intervention prices valid both for the
      principal marketing centres and for other centres.       1 . The target prices, intervention prices and
                                                               threshold prices shall be the subject of monthly in­
                                                               creases phased over all or part of the marketing year.
6. The marketing centres menti6ned in paragraph
5 ( a) and the derived intervention prices valid for
these centres shall be determined, after consultation          2. The Council, acting in accordance with the
with the Member States concerned, before 15 May of             voting procedure laid down in Article 43 (2) of the
                                                               Treaty on a proposal from the Commission, shall fix
each year for the following marketing year, in ac­
cordance with the procedure laid down in Article 26.           before 15 March of each year, for the following mar­
                                                               keting year, the number and amount of the monthly
                                                               increases phased over the marketing year.
                         Article 5
                                                                                         Article 7
1 . In respect of common wheat, durum wheat,
barley, maize and rye a threshold price shall be
fixed for the Community in such a way that the                 1 . Throughout the marketing year the intervention
selling price for the imported product on the Duis­            agencies designated by Member States shall be ob­
burg market shall be the same as the target price,             liged to buy in cereals mentioned in Article 4 which
differences in quality being taken into account.               are offered to them and have been harvested in the
 ---pagebreak---                                   Official Journal of the European Communities                                      37
Community, provided that the offers comply with              on a proposal from the Commission, shall determine
conditions, in particular in respect of quality and          the conditions under which intervention agencies may
quantity, to be determined in accordance with para­          take special intervention measures to prevent sub­
graph 5 .                                                    stantial purchases being made in pursuance of Article
                                                             7 ( 1 ) in certain regions of the Community.
2 . The intervention agencies shall buy in at the in­
tervention price ruling for the marketing centre at          The nature and scope of Such intervention measures
which the cereal is offered, under conditions deter­         shall be determined in accordance with the procedure
                                                             laid down in Article 26 .
mined in accordance with paragraphs 4 and 5 . If the
quality of the cereal is different from the standard         Before the expiry of the first year of application of
quality for which the intervention price has been            this Regulation the Commission shall submit to the
fixed, the intervention price shall be adjusted in ac­       Council a report on the results obtained from the
cordance with scales of price increases and reduc­           application of the measures laid down in this Article
tions. These scales may also include special optional        and on the advisability of amending or repealing
price increases in respect of barley of brewery quality      them .
and, in certain regions, in respect of rye of bread­
making quality.
                                                                                      Article 9
3.    Under conditions to be laid down in accordance
with paragraphs 4 and 5 , the intervention agencies :        1 . A carry-over payment may be granted in respect
                                                             of stocks remaining at the end of the marketing year
— shall offer for sale, for export to third countries        of commom wheat, durum wheat, rye and barley har­
    or for supply to the internal market, the product        vested in the Community, and of malt.
    bought in under the provisions of paragraph 1 ;
                                                             Before 15 March of each year the Council, acting in
— may likewise offer for sale for the same purposes          accordance with the voting procedure laid down in
    common wheat and also rye of bread-making                Article 43 (2) of the Treaty on a proposal from the
    quality in respect of which the special price in­        Commission, shall decide whether a carry-over pay­
    crease has been granted, after having rendered           ment should be granted in respect of one or more of
    them unfit for human consumption by denaturing.          the above-mentioned products and, if so, to what ex­
                                                             tent.
They may also grant a denaturing premium for com­
mon wheat.
                                                             2.      A carry-over payment shall be granted each year
4.    The Council, acting in accordance with the             in respect of maize, but shall be limited to stocks of
                                                             maize harvested in the Community in hand at the end
voting procedure laid down in Article 43 (2) of the
Treaty on a proposal from the Commission, shall              of the marketing year in areas of surplus production.
adopt general rules governing intervention and dena­
turing.                                                      3 . The carry-over payment for each cereal shall
                                                             not exceed the difference between the target price
                                                             valid for the last month of the marketing year and
5 . Detailed rules for the application of this Article
                                                             that valid for the first month of the next marketing
shall be adopted in accordance with the procedure
                                                             year.
laid down in Article 26, in particular as regards :
— the minimum quality and quantity required for              4. The carry-over payment shall be granted only if
    intervention in respect of each cereal ;                 stocks reach a minimum quantity.
— the scales of price increases and reductions appli*        5.     The amount of the carry-over payment shall be
    cable to intervention;
                                                             fixed in accordance with the procedure referred to in
— the procedures and conditions for taking-over by           paragraph 1 .
    the intervention agencies ;
                                                             6.     Detailed rules for the application of this Article,
— the procedures and conditions for disposal of              in particular the minimum quantity qualifying for a
    produce by the intervention agencies ;
                                                             carry-over payment and the categories of those
— the conditions for granting denaturing premiums            entitled to it, shall be adopted in accordance with the
    and the amount thereof.                                  procedure laid down in Article 26.
                        Article 8                                                     Article 10
The Council, acting in accordance with the voting           "Where the intervention price for durum wTheat valid
procedure laid down in Article 43 (2) of the Treaty          for the marketing centre of the area with the largest
 ---pagebreak--- 38                                   Official Journal of the European Communities
surplus is lower than the guaranteed minimum price,             Article 43 (2) of the Treaty on a proposal from the
aid shall be granted for the production of this cereal.         Commission, and from 1 August 1969 at the latest,
This aid, of a uniform amount for the whole Com­                such licences shall be valid for transactions effected
munity, shall be equal throughout the marketing year            in the Community. Until that date such licences shall
to the difference between the guaranteed minimum                be valid only for transactions effected in the Member
price and the above-mentioned intervention price at             State which issued them.
the beginning of the marketing year.
                                                                The issue of such licences shall be conditional on the
The Council, acting in accordance with the voting               lodging of a deposit guaranteeing that importation or
procedure laid down in Article 43 (2) of the Treaty             exportation is effected during the period of validity
on a proposal from the Commission, shall adopt                  of the licence ; the deposit shall be forfeited in whole
detailed rules for the application of this Article.             or in part if the transaction is not effected, or is only
                                                                partially effected, within that period.
                         Article 11
                                                                2. The period of validity of licences and other de­
                                                                tailed rules for the application of this Article shall be
 1.     A production refund shall be granted :                  adopted in accordance with the procedure laid down
                                                                in Article 26 .
( a) for maize and commom wheat used by the starch
      industry for the manufacture of starch and quell­
      mehl;
                                                                                        Article 13
 (b ) for potato starch;
  (c) for maize used in the maize industry for the              1 . A levy equal for each product to the threshold
      manufacture of maize groats and meal (gritz)             price less the c.i.f. price shall be charged on imports
      used by the brewing industry.                             of the products listed in Article 1 (a), (b ) and (c).
                                                                However, the levy applicable to hybrid maize, falling
2.     The payment of the production refund for
                                                              • within sub-heading No 10.05 A of the Common Cus­
potato starch shall be subject to the condition that the
                                                                toms Tariff, shall be limited to the amount resulting
processor has paid a minimum free-at-works price for            from the application of the rate of duty bound within
the potatoes.                                                   GATT.
The minimum price to be received by the producer
shall consist of the minimum price to be paid by the            2. The c.i.f. prices shall be calculated for Rotter­
starch manufacturer plus an amount corresponding                dam on the basis of the most favourable purchasing
to the production refund .                                      opportunities on the world market, determined for
                                                                each product on the basis of the quotations and
3.      The Council, acting in accordance with the              prices of that market after adjustment for any dif­
voting procedure laid down in Article 43 (2) of the             ferences in quality as compared with the standard
Treaty on a proposal from the Commission, shall                 quality for which the threshold price is fixed.
adopt rules for the application of this Article and fix         Differences in quality shall be expressed in coef­
the amount of the production refund.                            ficients of equivalence.
                                                                3 . Where free quotations on the world market are
                          TITLE II                              not a determining factor for the offer price and where
                                                                this price is lower than world market prices, a special
                                                                c.i.f. price calculated on the basis of the offer price
                Trade with third countries
                                                                shall be substituted for the c.i.f. price solely for the
                                                                imports in question.
                         Article 12 .
                                                                4. Detailed rules for the application of this Article,
1 . Imports into the Community or exports there­                and in particular the coefficients of equivalence, the
from of any of the products listed in Article 1 shall           rules for determining c.i.f. prices and the margin
                                                                within which variations in the factors used for calcu­
be subject to the submission of an import or export
licence which may be issued by Member States to any             lating the levy do not require any alteration of the
applicant irrespective of the place of his establish­           levy, shall be adopted in accordance with the pro­
                                                                 cedure laid down in Article 26 .
ment in the Community.
 From a date to be fixed by the Council, acting in ac­          5.     The Commission shall fix the levies mentioned
cordance with the voting procedure laid down in                 in this Article.
 ---pagebreak---                                     Official Journal of the European Communities                                    39
                         Article 14                            mium, fixed at the same time as the levy, shall be
                                                               added to the levy.
 1 . A levy shall be charged on the importation of
products referred to in Article 1 (d) consisting of two       3 . A decision may be taken in accordance with the
 components :                                                  procedure laid down in Article 26 to apply the pro­
                                                              visions of paragraph 2, in whole or in part, to any of
 A. A variable component which may be fixed and               the products listed in Article 1 (c) and (d).
 revised on a flat-rate basis,                                If the carry-over payment envisaged by Article 9 is
 ( a ) corresponding, in respect of products processed        not granted for malt, and if an advance fixing of the
       from basic products listed in Article 1 ( a), to the   levy has been prescribed for this product, the levy
       incidence on their prime cost of the levies on          shall be adjusted during the first two months of the
       those basic products ;                                  marketing year on the basis of the threshold price in
                                                              force during the last month of the preceding market­
 (b ) increased, where necessary, for processed prod­         ing year.
       ucts which contain both basic products listed in
       Article 1 (a) and other products, by the amount        4.     The Council, acting in accordance with the
       of the incidence on their prime cost of the levies     voting procedure laid down in Article 43 (2) of the
       or customs duties charged on those other prod­         Treaty on a proposal from the Commission, shall
       ucts ;
                                                              adopt rules for fixing the scale of premiums and
 (c) fixed, for products which do not contain any basic       measures to be taken in exceptional circumstances or
       products listed in Article 1 ( a), with reference      where importation is not effected within the month
       to market conditions for those Article 1 products      laid down .
       which are in competition with them ;
                                                              5.     The scale of premiums shall be adopted by the
                                                              Commission .
B.       A fixed component designed to protect the pro­
cessing industry.
                                                                                     Article 16
2.      Where actual offers from third countries of
products referred to in Article 1 (d) do not corres­          1 . To the extent necessary to enable the products
pond to the price which results from the price of basic       listed in Article 1 to be exported in the state referred
products used in their manufacture plus processing            to therein or in the form of goods listed in Annex B
costs, an amount fixed in accordance with the pro­            on the basis of quotations or prices for those prod­
cedure laid down in Article 26 may be added to the            ucts on the world market, the difference between
levy fixed in accordance with paragraph 1 .                   those quotations or prices and prices in the Com­
                                                              munity may be covered by an export refund.
3.      The Council, acting in accordance with the
voting procedure laid down in Article 43 (2) of the           2.     The refund shall be the same for the whole
Treaty on a proposal from the Commission, shall               Community. It may be varied according to use or
adopt rules for the application of this Article.              destination .
                                                              The refund shall be granted on application.
4.      The Commission shall fix the levies specified in
paragraph 1 .                                                 When the refund is being fixed particular account
                                                              shall be taken of the need to establish a balance be­
                                                              tween the use of Community basic products in the
                        Article 15                            manufacture of processed goods for export to third
                                                              countries and the use of third country products
                                                              brought in under inward processing arrangements .
1.      The levy to be charged shall be that applicable
on the day of importation.                                    Refunds shall be fixed at regular intervals in accord­
                                                              ance with the procedure laid down in Article 26.
2 . However, as regards imports of products listed            Where necessary the Commission may, at the request
in Article 1 (a) and (b), the levy applicable on the          of a Member State or on its own initiative, alter the
day on which application for a licence is made, ad­           refunds in the intervening period.
justed for the threshold price which will be in force
during the expected month of importation, shall be            3.    The amount of the refund applicable to the ex­
applied to an import to be effected during the period         port of products listed in Article 1 and of goods
of validity of the licence, if the applicant so requests      listed in Annex B shall be that applicable on the day
when applying for the licence. In this case a pre­            of exportation.
 ---pagebreak---  40                                 Official Journal of the European Communities
4. However, as regards exports of products listed             ( a) the rate of yield to be taken when determining
 in Article 1 (a) and (b), the refund applicable on the             the quantity of Article 1 products used in the
 day on which application for a licence is made, ad­                manufacture of processed goods for export;
 justed for the threshold price which will be in force
 during the month of exportation, shall be applied to
                                                               (b) the determination, for the purpose of applying
                                                                    the levy, of the quantity of products used in the
 an export to be effected during the period of validity
                                                                   manufacture of processed goods put into free cir­
 of the licence, if the applicant so requests when ap­             culation .
 plying for the licence. In this case a corrective
 amount, fixed at the same time as the refund, shall
                                                              4. For the purposes of this Article 'inward process­
 apply to the refund.                                         ing arrangements' means all those provisions deter­
The provisions of the preceding subparagraph may              mining the conditions under which products from
 be applied in whole or in part to any of the products        third countries are used in the Community in the
 listed in Article 1 (c) and (d).                             manufacture of goods for export and enjoy exemp­
                                                              tion from the levies applicable to them.
If the carry-over payment envisaged by Article 9 is
not granted for barley and malt and if an advance
fixing of the refund has been laid down for malt, the                                  Article 18
refund on exports, during the first two months of the
marketing year, of malt in stock at the end of the            1 . Without prejudice to the provisions of Regula­
preceding marketing year or made from barley in               tion No 156/66/EEC,1 the general rules for the in­
stock at that time shall be adjusted for the threshold        terpretation of the Common Customs Tariff and the
price in force in the last month of the preceding mar­        special rules for its application shall apply to the
keting year.                                                  tariff classification of products covered by this Regu­
                                                              lation ; the tariff nomenclature resulting from appli­
5.     The Council, acting in accordance with the             cation of this Regulation shall be incorporated in the
                                                              Common Customs Tariff from the date on which the
voting procedure laid down in Article 43 (2) of the
Treaty on a proposal from the Commission , shall              latter is fully applied.
adopt general rules for granting export refunds and
criteria for fixing the amount of such refunds.               2.     Save as otherwise provided in this Regulation or
                                                              where derogation therefrom is decided by the Coun­
6.     Detailed rules for the application of this Article     cil, acting in accordance with the voting procedure
shall be adopted in accordance with the procedure
                                                              laid down in Article 43 (2) of the Treaty on a pro­
laid down in Article 26.                                      posal from the Commission, the following shall be
                                                              prohibited :
                         Article 17
                                                              — the levying of any customs duty or charge having
                                                                   equivalent effect;
1 . To the extent necessary for the proper working            — the application of any quantitative restriction or
of the common organisation of the market in cereals,               measure having equivalent effect, subject to the
the Council, acting in accordance with the voting                  provisions of the Protocol on the Grand Duchy of
procedure laid down in Article 43 (2) of the Treaty                Luxembourg.                                     v
on a proposal from the Commission, may prohibit in            The restriction of import or export licences to a
whole or in part the use of inward processing ar­             specified category of those entitled to receive them
rangements :
                                                              shall be one of the measures considered as having
— in respect of products listed in Article 1 which are        effect equivalent to a quantitative restriction.
     intended for the manufacture of products listed in
     Article 1 (c) and (d );'                                                          Article 19
— and, in special cases, in . respect of products listed
     in Article 1 which are intended for the manufac­         When the c.i.f. price of one or more of the products
     ture of goods listed in Annex B.                         mentioned in Article 2 is appreciably higher than the
                                                              threshold price, and that situation is likely to con­
                                                              tinue, thereby disturbing or threatening to disturb the
2.     Community provisions to regulate the inward
                                                              Community market, the necessary measures may be
processing trade in the products listed in Article 1          taken .
shall be adopted not later than 1 July 1968 .
                                                              The Council, acting in accordance with the voting
3.     Rules to be applied until the provisions men­          procedure laid down in Article 43 (2) of the Treaty
tioned in paragraph 2 enter into force shall be
adopted in accordance with the procedure referred to
in paragraph 1 ; they shall apply in respect of:              1 OJ No 192, 27.10.1966, p. 3278/66.
 ---pagebreak---                                    Official Journal of the European Communities                                    41
on a proposal from the Commission, shall adopt gen­                                 Article 22
eral rules for the application of this Article.
                                                              Save as otherwise provided in this Regulation,
                        Article 20
                                                             Articles 92 to 94 of the Treaty shall apply to the
                                                             production of and trade in the products listed in
                                                             Article 1 .
 1 . If by reason of imports or exports the Com­
munity market in one or more of the products listed
in Article 1 experiences or is threatened with serious                              Article 23
disturbances which may endanger the objectives set
out in Article 39 of the Treaty, appropriate measures        1 . When barley, oats, maize, grain sorghum and
may be applied in trade with third countries until           millet are imported by sea into the Italian Republic
such disturbance or threat of disturbance has ceased .       and until the end of the 1971/72 marketing year, that
                                                             Member State may reduce the levy by 7-5 units of ac­
The Council, acting in accordance with the voting
procedure laid down in Article 43 (2) of the Treaty          count per metric ton on condition that an equal sub­
on a proposal from the Commission, shall adopt
                                                             sidy is granted for deliveries of the same cereals by
                                                             sea from Member States .
rules for the application of this paragraph and define
the cases in which and the limits within which Mem­
ber States may take protective measures.                     2. Furthermore, when barley, oats, maize, grain
                                                             sorghum and millet are imported into the Italian
2. If the situation mentioned in paragraph 1 arises,         Republic, that Member State may reduce the levy by:
the Commission shall, at the request of a Member
State or on its own initiative, decide upon the necess­      — 3-13 units of account per metric ton during the
ary measures ; the measures shall be communicated                 marketing year 1967/68 ;
to the Member States and shall be immediately appli­
cable. If the Commission receives a request from a           — 2-50 units of account per metric ton during the
Member State, it shall take a decision thereon within             marketing year 1968/69 ;
twenty-four hours following receipt of the request.
                                                             — 2-50 units of account per metric ton during the
                                                                  marketing year 1969/70 ;
3.    The measures decided upon by the Commission
may be referred to the Council by any Member State           on condition that an equal subsidy is granted for de­
within three working days following the day on               liveries of the same cereals from Member States .
which they were communicated. The Council shall
meet without delay. It may amend or repeal the               3.    By way of derogation from Article 21 ( 1 ), if the
measures in question in accordance with the voting           power conferred by paragraph 2 is used, a charge
procedure laid down in Article 43 (2) of the Treaty.         equal to the amount of the reduction in the levy re­
                                                             ferred to in that paragraph shall be levied by the
                        TITLE III                            Italian Republic on deliveries of barley, oats, maize,
                                                             grain sorghum and millet from that country to other
                                                             Member States .
                   General provisions
                                                             4.    If Italy makes use of the power conferred by
                       Article 21                            paragraph 2, the Council, acting in accordance with
                                                             the voting procedure laid down in Article 43 (2) of
1 . The following shall be prohibited in the internal        the Treaty on a proposal from the Commission,
trade of the Community :                                     shall take the measures necessary to prevent distor­
                                                             tions of competition as regards trade in those prod­
— the levying of any customs or charge having                ucts referred to in Article 1 (d) the levy on which is
    equivalent effect;                                       calculated on the basis of barley, oats, maize, grain
                                                             sorghum or millet.
— any quantitative restriction or measure having
    equivalent effect, subject to the provisions of the
    Protocol on the Grand Duchy of Luxembourg;               5.    Detailed rules for the application of this Article
                                                             shall be adopted in accordance with the procedure
— recourse to Article 44 of the Treaty.                      laid down in Article 26 .
2.    Goods listed in Article 1 which are manufac­
tured or obtained from products to which Article                                    Article 24
9 (2) and Article 10 (1) of the Treaty do not apply
shall not be admitted to free circulation within the         Member States and the Commission shall communi­
Community.                                                   cate to each other the information necessary for im­
 ---pagebreak---   42                               Official Journal of the European Communities
 plementing this Regulation. Rules for the communi­                                   Article 29
 cation and distribution of such information shall be
 adopted in accordance with the procedure laid down           This Regulation shall be so applied that appropriate
 in Article 26.                                               account is taken, at the same time, of the objectives
                                                              set out in Articles 39 and 110' of the Treaty.
                       Article 25
                                                                                     Article 30
 1 . A Management Committee for Cereals (herein­
 after called the 'Committee') shall be established,
                                                              The additional amount provided for in Article 14 (2)
 consisting of representatives of Member States and
                                                              and the premium provided for in Article 15 (2) shall
 presided over by a representative of the Commission .        be considered as levies in relation to third countries
                                                              within the meaning of Article 11 (4) of Council .
 2.    Within the Committee the votes of Member
                                                              Regulation No 130/66/EEC1 of 26 July 1966 on the
 States shall be weighted in accordance with Article          financing of the common agricultural policy.
 148 (2) of the Treaty. The Chairman shall not vote.
                       Article 26                                                    Article 31
 1 . Where the procedure laid down in this Article is         The Council, acting in accordance with the voting
 to be followed, the Chairman shall refer the matter to      procedure laid down in Article 43 (2) of the Treaty
 the Committee either on his own initiative or at the         on a proposal from the Commission, shall, in respect
request of the representative of a Member State.              of processed products referred to in Article 1 (d)
                                                              containing not only products listed in Article 1 but
2.     The representative of the Commission shall             also products subject to the common organisation of
 submit a draft of the measures to be taken . The            the market in milk and milk products, adopt trans­
                                                             itional measures designed to take account of differ­
Committee shall      deliver   its  Opinion    on  such
 measures within the time limit to be set by the             ences in the price of milk products in Member States
Chairman according to the urgency of the questions           until the system of common prices in this sector takes
under consideration. An Opinion shall be adopted by          effect, such measures to apply to trade both between
                                                             Member States and between Member States and third
a majority of twelve votes .                                 countries .
3 . The Commission shall adopt measures which
shall apply immediately. However, if these measures                                  Article 32
are not in accordance with the Opinion of the Com­
mittee, they shall forthwith be communicated by the
Commission to the Council. In that event the Com­            1.     Without prejudice to the provisions of Regu­
mission may defer application of the measures which          lation No 90/67/EEC, should transitional measures be
it has adopted for not more than one month from the          necessary to facilitate the transition from the system
date of such communication .                                 provided in Regulation No 19 to that established by
                                                             this Regulation, in particular if the introduction of
The Council, acting in accordance with the voting            the new system on the date provided for would give
procedure laid down in Article 43 (2) of the Treaty,         rise to substantial difficulties in respect of certain
may take a different decision within one month.              products, such measures shall be adopted in accord­
                                                             ance with the procedure laid down in Article 26 .
                       Article 27                            They shall be applicable until 31 July 1968 at the
                                                             latest.
The Committee may consider any other question re­
ferred to it by its Chairman either on his own initia­       By way of derogation from the provisions of Article
tive or at the request of the representative of a Mem­       3 , the 1967/68 marketing year shall begin on 1 July.
ber State.
                                                             2. By way of derogation from the provisions of
                       Article 28                           Article 2, the prices and standard qualities mentioned
                                                             therein effective for the 1967/68 marketing year shall
At the end of the transitional period, the Council,          be determined by the Council, acting in accordance
acting in accordance with the voting procedure laid          with the voting procedure laid down in Article 43 (2)
down in Article 43 (2) of the Treaty on a proposal          of the Treaty on a proposal from the Commission.
from the Commission, shall decide in the light of ex­
perience whether to retain or amend the provisions of
Article 26 .                                                1 OJ No 165, 21.10.1966, p. 2 965/66.
 ---pagebreak---                                       Official Journal of the European Communities                                        43
3 . By way of derogation from the provisions of                       The system established by this Regulation shall apply
Article 4 ( 1 ), it may be decided, in accordance with                from 1 July 1967, except for the measures provided
the procedure set out in Article 4 ( 6) and at the re­                for in Article 32 ( 1), which may be made to apply
quest of a Member State, that derived intervention                    from the date of entry into force of this Regulation.
prices for durum wheat, valid for the marketing cen­
tres referred to in Article 4 (5 ) (a) of that Member                 Regulation No 19 and the provisions adopted in im­
State, shall, during the 1967/68 and 1968/69 market­                  plementation thereof, except for the provisions of
ing years, be equal to the lowest intervention price                  Regulations Nos 3/63 /EEC1 and 119/66/EEC, shall be
fixed for that Member State.                                          repealed with effect from 1 July 1967.
                                                                      Article 2 of Regulation No 562 shall be repealed with
                           Article 33                                 effect from the same date .
This Regulation shall enter into force on the day fol­
lowing its publication in the Official Journal of the                 1 OJ No 14, 29.1.1963, p. 153/63 .
European Communities.                                                 2 OJ No 54, 2.7.1962, p. 1591/62.
               This Regulation shall be binding in its entirety and directly applicable in all Member
               States .
               Done at Brussels, 13 June 1967.
                                                                                             For the Council
                                                                                              The President
                                                                                                Ch . HEGER
                                                              ANNEX A
                         CCT
                        heading                                      Description of goods
                          No
                   ex 07.06 B               Manioc, arrowroot, salep and other similar roots and tubers with
                                            high starch content, fresh or dried, whole or sliced, excluding sweet
                                            potatoes
                   ex 11.01                 Cereal flours :
                                            ex C. Barley flour or oat flour
                                                E. Other
                   ex 11.02                 Cereal groats and cereal meal ; other worked cereal grains (for
                                            example, rolled, flaked, polished, pearled or kibbled, but not further
                                            prepared), except husked, glazed, polished or broken rice; germ of
                                            cereals, whole, rolled, flaked or ground :
                                            ex A. Cereal groats and cereal meal; other worked cereal grains
                                                    (for example, rolled, flaked, polished, pearled or kibbled, but
                                                   not further prepared)
                                                    ex I. Of wheat, except wheat groats and meal
                                                       II. Of rye
                                                      III. Of other cereals :
                                                           (a) Rolled or flaked barley and oats
                                                       ex (b) Other, except rice groats and meal
                                                B. Germ of cereals, whole, rolled, flaked or ground.
 ---pagebreak--- 44             Official Journal of the European Communities
         CCT
       heading                                     Description of goods
          No
      11.06          Flour, and meal of sago and of manioc, arrowroot, salep and other
                     roots and tubers falling within heading No 07.06:
                     A. Of manioc
                      B. Other
      11.07          Malt, roasted or not
   ex 11.08 A        Starches :
                         I. Maize starch
                       II. Potato starch
                            (a) For the manufacture of dextrins, glues, glazings or dressings1
                      IV. Other
      11.09          Gluten and gluten flour, roasted or not
      17.02 B        Glucose and glucose syrup :
                     II . Other
   ex 23.02         Bran, sharps and other residues derived from the sifting, milling or
                     working of cereals :
                     ex A. With a starch content exceeding 7% by weight
                    ex B. Other
   ex 23.07         Sweetened forage; other preparations of a kind used in animal
                    feeding:
                    ex B. Containing products to which this Regulation or Regulation
                               No 16/64/EEC applies, except preparations and feeding-stuffs
                               containing 50% or more by weight of products falling within
                              headings Nos 04.01, 04.02, 04.03, 04.04 and 17.02 A II
                    i Entry under this sub-heading shall be subject to conditions to be laid down by
                         the competent authorities .
                                        ANNEX B
        CCT.
       heading                                    Description of goods
         No
   ex 17.02         Other sugars; sugar syrups; artificial honey (whether or not mixed
                    with natural honey); caramel:
                    ex B. Glucose and glucose syrup :
                               I. Containing, in the dry state, 99% or more by weight of
                                  the pure product
   ex 17.04         Sugar confectionery, not containing cocoa:
                     B. Chewing gum
                    C. Other
      19.01         Malt extract
 ---pagebreak---              Official Journal of the European Communities                                 45
      CCT
     heading                                Description of goods
       No
    19.02          Preparations of flour, starch or malt extract, of a kind used as
                   infant food or for dietetic or culinary purposes, containing less than
                   50% by weight of cocoa
    19.03          Macaroni, spaghetti and similar products
    19.04          Tapioca and sago; tapioca and sago substitutes obtained from po­
                   tato or other starches
   19.05           Prepared foods obtained by the swelling or roasting of cereals or
                   cereal products (puffed rice, corn flakes and similar products)
   19.06           Communion wafers, empty cachets of a kind suitable for pharma­
                   ceutical use, sealing wafers, rice paper and similar products
   19.07          Bread, ships' biscuits and other ordinary bakers' wares, not con­
                   taining sugar, honey, eggs, fats, cheese or fruit
   19.08          Pastry, biscuits, cakes and other fine bakers' wares, whether or not
                   containing cocoa in any proportion
   21.01           Roasted chicory and other roasted coffee substitutes ; extracts,
                  essences and concentrates thereof:
                  ex A. Roasted coffee substitutes other than roasted chicory
                  ex B. Extracts, essences and concentrates of roasted coffee sub-,
                          stitutes other than roasted chicory
ex 21.05          Soups and broths, dehydrated
ex 21.07          Food preparations not elsewhere specified or included, containing
                  cereals or preparations of cereals
   22.03          Beer made from malt
   35.05          Dextrins and dextrin glues; soluble or roasted starches; starch glues
   38.12 A I      Prepared glazings and prepared dressings with a basis of amylaceous
                  substances