CELEX: 51973PC2150
Language: en
Date: 1973-12-18
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL concerning Community financing of expenditure incurred in respect of the supply of agricultural products as food aid (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 2150
Vol. 1973/0391
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(73)2130 final
                                                     Brussels , 18 December 1973
                             PROPOSAL FOR A
                    REGULATION (EEC ) OP THE COUNCIL
     concerning Community financing of expenditure incurred in
     respect of the supply of agricultural products as food aid
             ( submitted to the Council by the Commission)
COM(73 ) 2150 final
 ---pagebreak---                                           üa?jl,AUATO'?Y ?:är;^?.ANiriii.i
1. Oorarm ty expenditure incurred in respect of" the supply of agriculture ! pro­
   duct t> na i ood aid ha j hitherto b«?*?n finfincnd by the Community in various ways
   dapendiryr on thW products cr the conditions of supply.
   a ) Dairy products
       – in the caco of products from public intervention stocks , expenditure
          has been financed by the Guarantee Section of the EACG.F under Council
          Relation (]SC ) N° 2305/70 ;
       – in the cc.ca of skitr^cd milk powder p'.r^'ir.sod on the market , expenditure
          has teen financed under ChG.pt or 90 of "Jhe Budget – "Pood aid
          expenditure " - in tjee' manner provided by Council Regulation ( EEC )
         K° 4-12/72 of 28 February 1972 a\2 in Council Reflation (EC ) N° 2721/7 ?
          of 15 Sec ember 1972 .
  b) For coreaic, financing is divided be.tv.-een FDCGA and chapter £0 of t , vr;
        general buu/je » callea ""'ood aid expenditure ", in accordance with Council
         -\7ul ? <• ion /h.X' ) J,° 20^2/6$ of 17 October 1969 as amended by Council
       Regulation ( mz ) 11° 1703/7 ? of 3 August 1972 .
  0) On the contrary, expenditure in recrect of supply of sugar and of e^
       products relates in full to chaot-sr 90,
 ---pagebreak---      It is desirable to harmonise the conditions of community financing cf
     expenditure incurred in the supply of agricultural products- as food aid
     co that all sectors will bo treated in a similar manner.
 2 . Moreover , it is desirable, to obtain a clearer picture of the actual cost ,
     on the one hand of food aid , and on the other of expenditure relating to
     the common agricultural policy.         *
     For this purpose , it is proposed to grolip together :
     a ) Under Chapter 90of the Budget " Pood aid and expenditure " food
         aid expenditure proper , that is , the world market value of the product
         expenses incurred in supplying products , i.e. delivery costs and any
         processing and manufacturing costs , and distribution costs .
     b ) Refunds to be made as a result of differences between Community
         internal prices and world market prices will continue to be charged
         against Chapters 6 and 7 relating to the Cuarantee Section of the
         EACCF.
         The refund in question here is that corresponding to the Common Custom
         Tariff heading of the relevant product where the destination is not
         a particular one , since the refunds fo1" ruch destinations do not
         always reflect the differences between Gonmunity internal prices ■
         and world market prices .
3. It should be noted that deliveries effected pursuant to conventions or
contracts already in force , have been completed ( in the cases of buttercil
and egg products ) or are rearing completion ( in the cases of skimmed milk
poivder , cereals and suga/' )» It is * therefore desirable , to avoid complicating
the accounting in respect of current expenditure and creating difficulties
as the now system is put into effect , to retain the arrangements already
in force where the operations in question have already taken place or are
still being carried out . .     Article 1 therefore concerns itself with opera-     ■
tion3 carried out under conventions , agreements or regulations subsequent
to 30 November 1973.
It is also desirable to amend Rjgulation ( EEC ) n° 2306/70 v/ith a view to
limiting its provisions , in respect of dairy products supplied as food aid ,
to those supplied under Council Regulations previous to 1 December 1973 ,
( article 4 of the present Regulation ),
 ---pagebreak--- Financial and budgetary aspects                                  '
This Regulation does not involve additional expenditure ; it merely reappor­
tions Community budget expenditure between Chapters 6 and 7 » concerning- the
Guarantee Section of the E. A.<J. G. F. , and Chapter90 relating to food aid .
Once this Regulation has been adopted , it will be necessary to transfer
funds from the Guarantee Section of the Agricultural Guidance and Guarantee
Fund to Chapter 90- " Food aid expenditure ", so that this modification can
be put into effect in the 1974 budget .      The nomenclature of the budget should
be adjusted simultaneously.
 ---pagebreak---                               PROPOSAL FOR A
                        REGULATION (EEC) OP THE COUNCIL
         concerning Community financing of expenditure
         incurred in respect of* the supply of K&ricultural products
                            as food aid
 THE COUNCIL OP THE EUROPEAN COM-rjNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
 and in particular Articles 43 arid 205 thereof ;
Having regard to the proposal from the Commission ;
Having regard to the Opinion of the European Parliament ;
Whereas the Community grants food aid to developing or disaster-stricken coun­
tries and guarantees the finance ^
Whereas the rules operative at present provide that this expenditure is finan­
ced in various ways depending on the products and the conditions , being either
totally chargeable to chapter.90°f the General Budget of the Communities called
"Food aid expenditure "           or to the Guarantee Section the European / gri-
                              /     _  •
cultural Guidance and Guarantee Fund or partially to each ;
Whereas in these circumstances it is not possible to obtain a clear picture
of the cost of the common market policy for the sectors concerned or of the
cost of the food aid policy ; furthermore it complicates the management of
appropriations , since   expenditure is sometimes charged against the Guarantee
Section of the E, A. G. G.F., sometimes against Chapter 90 oft he Budget and some­
times partly against each ;                                                      ,
 ---pagebreak---  whereas it is advisable to harm on ICQ in the different sectors the conditions
                                                                     «
 of community financing1 of expenditure resulting from the supply of agricultu
                                                      r
 ral products as food aid , and to alter the rules at present in operation "by
 derogation from Council Regulation ( EEC ) N° 729/70 of 21 April 1970 on finan-
                                   ?
 cing of the common general policy ( l ) as lact amended by Regulation ( EEC )
 K° 2788/72 ( 2) and particularly articles 1 and 3 as to charge expenditure
 corresponding to the difference betiveen Community internal prices and world
                                                *
 prices against the E. A. G. G. P. and expenditure other than that borne by the
 E. A. G. G. P. against Chapter 90 .;
 Whereas the present provisions apply to crp<?nditure on food aid supplied
  pursuant to conventions , agreements or Council Regulations adopted after
  30 November 1973 ;
Whereas amendments . should therefore be made to Council Regulation (EEC ) K°
 2306/70 of 10 November 1970 on the financing of intervention expenditure
 in respect of the internal market in milk and milk products ( 3 ), as amended
by Regulation (ESC ) N° 2681/72 (4 ), so that it will apply only to deliveries
made in respect of conventions or agreements already completed ;
Whereas it is desirable , in order to facilitate the carrying out of
Community food aid measures , to institute a system of advance payments
for expenditure coming under Chapter 90of the Budget based on the
system established for the E. A. G. G. P. ;
  Whereas it is desirable | hat provision be made for the Commission to
lay down implementing rules , should need arise ;
HAS ADOPTED THIS REGULATION :
(1)   0J   K° L 94 , 28 April 1970. p. 13
( 2)  QJ   N° L 29 !?. 30 December 1972 , P. 1
(3    QJ   K° L 249 , 17 November 1970, P. 4
( 4)  0J   N° L 289 , 27 December 1972 ,  P. 12
 ---pagebreak---                      Article 1
By way of rierogati on from Regulation ( EEC ) 729/70, expenditure in respect
 of the supply of agricultural products as food aid pursuant to Council
Regulations adopted after 30 November 1973 or to conventions or agreements
 concluded by the Council after that date shall be financed by the Community
and shall bo charged in part against the Guarantee Section of the E. A. C. G. F.
and in part against Chapter 90- "Food *Aid expenditure "              - of the
Budget of the European Communities .           *
This expenditure shall include the value of the merchandise and the expenses
arising o\it of the execution of the various phases which are chargeable to
the Community by reason of the provisions in respect of the aforementioned
supplies , but shall not include administrative expenses .
                     Article 2
1 . The Guarantee Section of the E. A. G. G. F. shall be responsible for expen­
    diture in respect of refunds on exports to third countries with the excep­
    tion of refunds for certain destinations .
2 . That portion of the expenditure envisaged in article 1 which is not covered
    by the provious paragraph shall be charged against Chapter 90 - " Food aid
      expenditure "          - of the Budget of the European Communities .
                     Article 3
1 . The Member States shall designate the authorities , departments and bodies
    empowered to make payments in respect of the expenditure defined in the
    present Regulation. T^'.Mcmbo^ States shall , should this not already have
    been done , inform the Commission as soon as possible of the nature and
    constitutions of such authorities , departments and bodies , of the administra'
    tive and accounting rules under which they operate and shall each forward
    any report or part of a report concerning such expenditure from the rele­
    vant sxipervisory authorities .
2 . For this expenditure , the Commission , after consultation vrith the Committee
    in accordance with article 2 of Regulation ( EEC ) n° 729/70
    - shall grant advances to the Member States concerned , periodically and
      on demand by them ;
    – shall audit the accounts of the Member States on the basis of supporting
      documents forwarded by those Member States to the Corrpis3ion.
 ---pagebreak---                                                                    4 .-
                                .A rl i c i r 4
 Council Regulation ( EEC ) N° 2306/70 of 10 November 1970 is amended as
 follows :                                                       •
 1 . Article 4 » paragraph 1 , subparagraph i ), is completed by the insertion
     following the word " Council " of the following text :
          "adopted before 1 December JL97 3 and
2. Article 5 ? paragraph 1 , subparagraph i ) is completed by the insertion
     following the word " Council " of the following text :
          " adopted before 1 December 1973 and
                                Article 5
The provisions of articles 8 and 9 of Regulation ( EEC ) N° 729/70 are appl
cable by analogy to expenditure envisaged by the present Regulation.
                                Article 6
Rules for the implementation of this Regulation shall be adopted , should
the need arise , in accordance with the provisions of Article 13 of
Regulation (EEC ) N° 729/70.
                                Article 7
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities.
It shall have effect as from 1 December 1973 .
                        /          •
This Regulation shall be binding in its entirety and directly applicable
in all Kember States .
Done at Brussels
                                                                        \
                                                For the Council
                                                 The President ,