CELEX: 51983PC0749
Language: en
Date: 1983-12-15
Title: Proposal for a COUNCIL REGULATION (EEC) extending the period of application of Council Regulation (EEC) No 3310/75 on agriculture in the Grand Duchy of Luxembourg (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 749
Vol. 1983/0265
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                           C 0 M (8 3 )   749 f i n a l
                                                                           B ru s s e ls ,     15 D e ce m b e r 1983
                                                     P ro p o sal f o r    a
                                             COUNCIL REGULATION               (E E C )
 e x te n d in g  th e  p e rio d  o Ç a p p li c a tio n     of    C o u n c il  R e g u la tio n     (E E C ) No 3 3 1 0 / 7 5
                        on a g r i c u l t u r e  in   th e   G ran d   Duchy o f         L u x em b o u rg
                           (s u b m itte d     to  th e   C o u n c il by t h e       C o m m is s io n )
 C0MC83)        749   fin a l
 ---pagebreak---                                                      C.'&H
                               EXPLANATORY MEMORANDUM
1.   Council Regulation (EEC) No 541/70 of 20 March 1970 (1) states that the
     provisions of the second subparagraph of Article 1(1) of the Protocol on
     the Grand Duchy of Luxembourg shall remain applicable until 31 December
     1973 at the latest.     This provision refers to Article 6(3) of the
     Convention on the Economic Union of Belgium and Luxembourg of 25 July 1981
     stating that "no excise duty may be imposed on non-sparkling domestically
     produced natural wines made from fresh grapes."
     In the Protocol this exemption was extended to the entire territory of the
     Benelux and the Council was before the end of the transitional period to
     decide by qualified majority on a proposal from the Commission whether the
     derogations granted to the Grand Duchy were to be maintained, altered or
     abolished.
 2.  Since 1973 the Council has decided each year to extend the period of
     validity of the provision of the Protocol by one year with the proviso
      that should excise duties on wine be increased in the Benelux countries
      the advantage granted to Luxembourg wines under the Protocol should not be
      increased.    This proviso was written into Council Regulation (EEC)
      No 3310/75 (2), the validity of which was last prolonged, until
      31 December 1983, by Council Regulation (EEC) No 3533/82 of 17 December
      1982 (3).
 3.   By a letter dated 29 September 1983 (No SG(83)A/8209) the Permanent
      Representation of the Grand Duchy of Luxembourg requested the Commission
      on behalf of its Government to propose that the Council extend the period
      of validity of the Regulation by another year.
      The Luxembourg Government considers that pending the harmonization of
      specific duties on wine in the Community the reasons which in 1970
      justified the proposals to prolong the status quo and the Council
      Regulation of 20 March of that same year remain fully valid.
      The attached Regulation extends the validity of the Regulation until
       31 December 1984.
  (1) 0J   No L 68, 2 5 . 3.1970, p. 3.
  (2) 0J   No L 328, 20.12.1975, p. 12.
  (3) 0J   No L 371, 30.12.1982, p. 3.
 ---pagebreak---                                     - 2 -
4. This arrangement has not had any appreciable effect on imports of wine
   from the other Member States into the Benelux countries.   As will be seen
   from Table I the import trend from 1973/74 to 1981/82 is similar to that
   in other Member States such as Germany.
5. It must also be borne in mind that the excise duty exemption from which
   Luxembourg wine benefits also helps the incomes of winegrowers in
   Luxembourg.   As will be seen from Table II the amount of the revenue
   shortfall represents 8 to 11% of the value of final viticultural
   production.   The gross added value at market price, which is closer to
   the producer's income represents approximately 60% of final agricultural
   production in Luxembourg and it may therefore be reckoned that the measure
   in question represented still more than 10% of viticultural income in 1981
   and that its elimination could cause a marked drop in the quantities of
   Luxembourg wine sold in the Benelux countries.
 ---pagebreak---                                                                                                                               TABLE I
                                   Tr«nd of intra-Community trade in wine:      Member States' imports (1)
                                                     (1973/74 - 1981/82 marketing years)
                                                  BTN heading 22.05:    Wine of fresh grapes
                                                                                                                            (hectolitres)
   Importing       :  1973/74     1974/75      1975/76     :  1976/77        1977/78       1978/79       1979/80        1980/81         1981/82
  Member State
 France            : 3.046 580   7.129 584  : 7 .211 .785  : 5 .360 261  : 6 .300. 604 : 8 .273 .289 : 5 .437 .804   : 7 .933.710       6 .443.481
 BLEU              : 1.185 *09   1.222 078  : 1 .245 .166  : 1 .343 886  : 1 .275. 676 : 1 .469 .288 : 1 .537 .081  : 1 .544.633        1 .571.389
 Netherlands       :   7H 7 783    824 798       955 .891       956 259  : 1 .039. 363 : 1 .086 790  : 1 .152 .864  : 1 .241.922        1 .333.327
 FR Germany        : 5.190 .556  5.488 912  : 6 .581 .778  : 6 .392 290  : 6 .068. 472 : 5 .754 043    6 .437 779   : 7 .567.509        7 .876.482
 Italy             :   375 .317    147 119       141 .003       156 628       153. 353      130 566       123 .996         98.858           80.166
 United Kingdom    : 1.241 .122  1.101 456  : 1 .185 .998  : 1 .463 761  : 1 .550. 653 : 1 .997 016  : 2 .023 720  : 2 .385.661        2 669.472
 Ireland                36 .427     30 280        43 .676        57 454        71. 346       81 344        76 744  •       84.489           81.483
                                                                                                                   •                      655.654
 Denmark           :   145 .697    202 446       328 .896       344 028       382. 753      448 141       466 643  •     545.568
 Greece            :    11 .140        886         1 .560         2 070         2. 937        2 919         2 212  •
                                                                                                                   •           718           2.782
     EUR 10        :11.9S0 .231 16.147 559  :17 .695 .753  :16 .076 637  :16 .845. 157 :19 .243. 396 :17 .258 843  :21 403.068        20. 714.236
Sources : EUROSTAT
            Iniormation notified by the Member States
            (1) Member States' import statistics.
 ---pagebreak---                                                                 TABLE II
 Estimate of relationship between arrival revenue shortfall and value of final
 viticulturai production (1) (?)
                                  1976        10,3?
                                  1977        10,5?
                                  1978         8,9?
                                  1979         9,3?
                                  1980         7,5?
                                  1981         8,3?
(1) Based on information provided by the Luxembourg Ministry of Agriculture on
    the quantities of Luxembourg wine consumed in the Member States.
 ---pagebreak---                                             PROPOSAL FOR A
             '                   C O U N C I L REGULATION (EEC)
             extending the period of application of Council Regulation (EEC) No 3310/75 on
                               agriculture in the Grand Duchy of Luxembourg
THE COUNCIL OF THE EUROPEAN                                 Whereas the application of the said system in favour
COMMUNITIES,                                                of Luxembourg wines will continue to be of benefit to
                                                            the agricultural income of the Grand Duchy of
Having regard to the Treaty establishing the European
                                                             Luxembourg in the sector concerned ;
Economic Community, .
Having regard to the Protocol on the Grand Duchy of         Whereas having regard to the other reasons set out in
Luxembourg annexed thereto,                                  Regulation (EEC) No 3310/75, the period of applica­
                                                             tion of the latter Regulation should be extended,
Having regard to Council Regulation (EEC) No
3310/75 of 16 December 1975 on agriculture in the
Grand Duchy of Luxembourg ('), as last amended by
Regulation (EEC) No 3 5 3 3 /é (:), and in particular        HAS ADOPTED THIS REGULATION :
Article 2 (2) thereof,
Having regard to the proposal from the Commission,
                                                                                    Article 1
Whereas, under the second subparagraph of Article 1
(l) of the Protocol on the Grand Duchy of Luxem­             In the first paragraph of Article 2 of Regulation (EEC)
bourg, Belgium and the Netherlands are to apply the          No 3310/75, ‘31 December 198^’ shall be replaced by
system provided for in the third paragraph of Article 6      ‘31 December 1984’.
of the Convention on the Economic Union of
Belgium and Luxembourg of 25 July 1921 ; whereas
the period of application of this system was last                                   Article 2
extended by Regulation (EEC) N o 3533/8 2 ; whereas
the Council has to decide to what extent these provi­        This Regulation shall enter into force on 1 January
sions should be retained, amended or discontinued ;           198+.
              This Regulation shall be binding in its entirety and directly applicable in all Member
              States.
              Done at Brussels,
                                                                          For the Council
                                                                           The President
 (') 0 1 No L 328, 20. 12. 1975, p. 12.
 O OJ No L 3 7 1 , 3 0 . 1 2 . 1 9 8 2 ,    p.  3