COUNCIL REGULATION (EEC) N° 3770/85
of 20 December 1985
on stocks of agricultural products in Spain
THE COUNCIL OF THE  EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community,
Having regard to the Act of Accession of Spain and Portugal, and in particular Article 91 (3)  thereof,
Having regard to the proposal from the Commission,
Whereas Article 86 of the Act of Accession provides that any stock of products in free circulation  in Spanish territory on 1 March 1986 which in quantity exceeds that which may be considered  representative of a normal carry-over stock must be eliminated by and at the expense of the Kingdom  of Spain;
Whereas, in the case of certain products, the level of any stocks need not be determined either for  reasons relating to the nature of such products of the common organization of the markets, or  because of the fact that no financing is provided by the European Agricultural Guidance and  Guarantee Fund;
Whereas, for reasons relating to the management of agricultural markets, care should be taken to  ensure that the elimination of the products referred to in Article 86 of the Act of Accession does  not lead to the creation of two parallel markets for the same products; whereas the aim laid down  in that Article may be achieved within the framework of financing measures;
Whereas the expression 'any stock of product' covers both public and private stocks;
Whereas criteria should be defined to enable the quantity considered as a normal carry-over stock  to be determined; whereas, to this end, account should be taken of the requirements of the Spanish  market for a period which may vary depending on the type of product;
Whereas, as a rule, the stocks to be eliminated at the expense of the Kingdom of Spain may be  determined from data already available or on the basis of estimates; whereas provision should  nevertheless be made for the possibility of a survey;
Whereas, pursuant to the second sentence of Article 86 of the Act of Accession, the concept of  normal carry-over stock shall be defined for each product on the basis of criteria and objectives  particular to each common organization of the market;
Whereas tobacco will be covered by Regulation (EEC) N° 3766/85 (1);
Whereas, pursuant to Article 2 (3) of the Treaty of Accession of Spain and Portugal, the  institutions of the Communities may adopt, before accession, the measures referred to in Article 91  of the Act of Accession, such measures entering into force subject to, and on the date of, the  entry into force of the said Treaty,
This Regulation shall lay down the general rules for the application  of Article 86 of the Act of Accession.
This Regulation shall not cover products:
- which may not be stored,
- in which there is no likelihood of speculation,
- for which there are no exports refunds, nor intervention within the meaning of Article 3 (1) of  Council Regulation (EEC) N° 729/70 of 21 April 1970 on the financing of the common agricultural  policy (2), or
- which fall within the tobacco sector.
1. Products shall be considered as being in free circulation in Spanish territory  where:
(a) they are obtained entirely in Spain;
(b) they are:
- obtained totally or partly from products from countries other than Spain, or
- imported into  Spain,
in respect of which import formalities have been completed and on which customs duties and  equivalent charges have been collected in Spain, without any total or partial drawback thereof.
2. With the exception of very small quantities, any quantity of products belonging to or held by  the Kingdom of Spain or by any natural or legal person shall be considered as stocks of products.
A survey may be taken in order to determine the stocks of products in Spanish  territory on 1 March 1986.
1. Except where special provisions regarding certain products are adopted, the operating  stocks necessary for the requirements of the Spanish market for a period to be determined shall be  considered as normal carry-over stocks.
The period shall be determined in such a way as to ensure smooth transition to the 1986/87  marketing year for each product concerned; where no marketing year exists, this period may not  extend beyond 31 December 1986.
The requirements of the Spanish market shall be assessed in particular on the basis of consumption,  processing and traditional exports, bearing in mind the criteria and objectives particular to each  common organization of the markets.
In the olive oil sector, the following shall be treated as normal carry-over stocks, up to a  quantity to be determined:
- private stocks,
- public stocks.
2. However, stocks comprising quantities of products involved in abnormal and speculative movements  shall not be considered as normal carry-over stocks.
For the purposes of applying this paragraph, a decrease in trade in the products concerned may be  considered as an abnormal movement.
3. The quantities of two or more different products may be taken together for the assessment of the  normal carry-over stock.
1. While it shall be the subject of specific declarations to the Commission as part of  the documents forwarded in accordance with Article 5 of Regulation (EEC) N° 729/70, expenditure on  refunds and, where appropriate, on intervention arising from the disposal of quantities of products  of which stocks as referred to in Article 86 of the Act of Accession are determined shall not be  taken into account by the European Agricultural Guidance and Guarantee Fund, Guarantee Section.
2. The quantities of products of which stocks as referred to in Article 86 of the Act of Accession  are determined shall be considered as being disposed of first.
3. The quantity of product and the type fo expenditure which shall not be taken into account shall  be determined for each product concerned.
Where several types of expenditure may apply to one and the same product, the quantities of that  product shall be determined for each type of expenditure and may vary with the latter. If the  expenditure depends on the quality of the product, this shall also be taken into account.
4. Detailed rules for the application of paragraph 1 shall be adopted, as necessary, in accordance  with the procedure laid down in Article 13 of Regulation (EEC) N° 729/70.
Where the market situation, in the light in particular of patterns of trade and  deliveries to intervention, indicates, that the quantities of products taken into account for the  determination of stocks are inappropriate, the Council, acting by a qualified majority on a  proposal from the Commission, shall adopt the necessary measures.
1. Detailed rules for the application of this Regulation shall be adopted in accordance  with the procedure laid down in Article 38 of Council Regulation (EEC) N° 136/66/EEC of 22  September 1966 on the establishment of a common organization of the market in oils and fats
2. The  detailed rules referred to in paragraph 1 shall relate in particular to:
(a) the determination of stocks as referred to in Article 86 of the Act of Accession in the case of  products the quantities of which exceed normal carry-over stocks;
(b) the determination referred to in Article 6 (3);
(c) the notifications to be forwarded to the Commission by the Kingdom of Spain;
(d) the procedures for disposing of surplus products.
3. The detailed rules referred to in paragraph 1 may make provision for:
(a) a list of products in respect of which the Kingdom of Spain carries out a survey of stocks;
(b) the collection of a charge on export from the Member State of storage to another Member State  or to a third country, in cases where the products are exported at an
abnormally low price level  bearing in mind the price level applying in the exporting Member State;
(c) the collection of a charge in case where a party concerned does not comply with the procedures  for disposing of surplus products.
This Regulation shall enter into force on 1 January 1986, subject to the entry into  force of the Treaty of Accession of Spain and Portugal.
This Regulation shall be binding in its entirety and directly applicable in all  Member States.