Explanatory Memorandum to COM(1976)25 -

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dossier COM(1976)25 - .
source COM(1976)25 EN
date 30-01-1976
ARCHIVES HISTORIQUES DE LA COMMISSION

COLLECTION RELIEE DES DOCUMENTS 'COM'

Contents

1.

COM (76)25


Vol. 1976/0012

Disclaimer

Conformement au reglement (CEE, Euratom) n° 354/83 du Conseil du ler fevrier 1983 concernant I’ouverture au public des archives historiques de la Communaute economique europeenne et de la Communaute europeenne de I’energie atomique (JO L 43 du 15.2.1983, p.

1), tel que modifie par le reglement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 (JO L 243 du 27.9.2003, p.

1), ce dossier est ouvert au public. Le cas echeant, les documents classifies presents dans ce dossier ont ete declassifies conformement a I’article 5 dudit reglement.

In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning the opening to the public of the historical archives of the European Economic Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p.

1), as amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 27.9.2003, p.

1), this file is open to the public. Where necessary, classified documents in this file have been declassified in conformity with Article 5 of the aforementioned regulation.

In Obereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar 1983 uber die Freigabe der historischen Archive der Europaischen Wirtschaftsgemeinschaft und der Europaischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S.

1), geandert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003 (ABI. L 243 vom 27.9.2003, S.

1), ist diese Datei der Offentlichkeit zuganglich. Soweit erforderlich, wurden die Verschlusssachen in dieser Datei in Obereinstimmung mit Artikel 5 der genannten Verordnung freigegeben.
COMMISSION OF THE EUROPEAN COMMUNITIES

2.

COM(76) 25 final


, Brussels, 30 January 1976

COUNCIL REGULATION (EEC)

on the crediting of securities, deposits and guarantees furnished under the common agricultural policy and subsequently forfeited ■

(submitted to the Council by the Commission)

/ '

C0M(76) 25 final

EXPLANATORY EEKCRANIJUK

3.

Within the common agricultural policy, a significant number of securities


are provided for under the various Community .regulations. •

To give some examples, such securities are required upon the issue of export or import licences with or without advance—fixing; as part of tendering procedures, in cases of payment of advances on subsidies where the event giving rise to entitlement to the subsidy has not yet occurred; in connection with private storage contracts, in cases of the advance fixing of aid, for sales of goods . which come from intervention stocks and must be used for specific purposes; in connection with denaturing operations, and so on. .

In general the regulations only lay down the procedure for furnishing the secu— rity, its amount, and the conditions for- its release, leaving open th-e question of where to credit the security which is forfeited. In the absence of specific provisions concerning the crediting of such security, the Member States have hitherto entered them, on a final or provisional basis, in their national budgets. Experience has, however, shown that the retention of the security by the. Member States is unsatisfactory. In fact, a security is forfeited when the operator fails to meet his commitments. The latter are, however, the corollary of the financial benefits he has received from the funds of the EAGGP. As a result, in this case the EAGGP is financially disadvantaged, and this should be made good by ^ crediting to the EAGGP the security which was designed to hold the operator to his.commitments. In this'way, the principle according to which the security goes to the party which bears the risk of the operation - in particular the disadvantages which may result if the conditions for granting a benefit are not fulfilled -is safeguarded. Consequently, the security which is forfeited should therefore be credited, in general, to the EAGGP by deducting it from expenditure, either from refunds if the proposed or completed operation constitues trade with nonmember countries, or from intervention expenditure in all other cases.

It should be laid down, however, that these provisions do not apply to two kinds of security, namely security furnished upon the issue of export or import licences without advance fixing of■the rate of refund, lev/ or compensatory amount, and security furnished in connection with tendering procedures with the sole purpose of ensuring that the tenders submitted are genuine. In both cases, the detriment to tne EAGGP does not seem sufficiently substantial for the security forfeited to he credited to it, although it cannot be denied that, even in those cases,

the 3AGGF might have to hear a certain degree of prejudice owing to the . indirect effects of the failure of the operator to meet his commitments. These indirect effects may appear, in particular, at the market management .

level, or in the form of charges relating to the storage of intervention products.

Moreover, since food aid is financed under a special chapter of the Communtiy Budget, a security forfeited under food aid operations should he deducted from the expenditure arising from such operations.

4.

COUNCIL REGULATION (EEC)


on the crediting of securities, deposits and guarantees furnished under the common agricultural policy and subsequently forfeited

THE COUNCIL OF THE EUROPEAN COMMUNITIES, .

Having regard to the Treaty establishing the European Economic Community, and in particular Articles 43 and 209 thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion of the European Parliament,

Whereas under Community regulations numerous securities are required in connection with operations relating to agricultural products; whereas provision must be made for the crediting of such securities in cases where they are forfeited;

Whereas in most cases where securities are forfeited, the European Guidance and Guarantee Fund (EAGGF) suffers a financial disadvantage either because it has a financed a measure and the operator has failed to meet his obligations or because such failure by the operator subsequently involves the EAGGF in additional expenditure .because of the mechanisms of the agricultural markets; whereas this disadvantage should consequently be remaidied by setting against EAGGF expenditure any security which is forfeited;

Whereas, however, those securities which are unlikely to cause a sufficiently substantial financial disadvantage to the EAGGF should be retained by the Member States;

Whereas any security forfeited in food aid operations should be deducted from expenditure in the "food aid expenditure” chapter of the Budget;

Whereas it is also right that any security forfeited as part of a specific operation should be deducted from the expenditure relating to that type of operation;

V/hereas similar rules already exist in one particular sector, and are therefore superce'ued by the present Regulation,

HAS ADOPTED THIS REGULATION :

5.

Article 1


1) Subject to paragraph 2 hereof, this Regulation shall apply to any security, deposit or guarantee furnished pursuant to provisions adopted under the common agricultural policy, (hereinfafter referred to as 'security'), and to fractions thereof.

6.

2) However this Regulation shall not apply to any security furnished


a) in connection with the issue of licences without advance fixing of the rate of refund, levy or accession compensatory amount; or

b) under a tendering proceudre for the sole purpose of ensuring the submission by tenderers of genuine tenders.

7.

Article 2


1) Any security referred to in Article 1(1) which is forfeited shall be applied in reduction of EAGG? expenditure.

2) However, any security which is forfeited in respect of food aid operations shall be applied in reduction of the expenditure under the appropriate item of the 'food aid expenditure' chapter of the Budget.

8.

Article 3


1) Any security referred to in Article 1 (2) shall be deducted:

a) if the completed or proposed operation in respect of which the security was furnished concerns trade with non-member countries, from refunds under the appropriate budgetary item,

b) in all other cases, from intervention expenditure under the appropriate budgetary item.

2) If the expenditure chargeable to the EAGGF is supported by accounts, such accounts shall be credited with any security referred to in Article 2 (1).

9.

, Article 4 -


Article 14 of Council Regulation (EEC) No 2306/70 of 10 November 1970 on the financing of intervention expenditure in respect of the domestic market in milk and milk products^ is hereby repealed.

10.

Article 5


Detailed rules for the application of this Regulation shall be adopted in accordance with the procedure laid down in Article 13 of Regulation (EEC) No 729/70 ^2'. .

11.

Article 6


This Regulation shall apply to any security forfeited with effect from 1 January 1976. •

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

12.

For the Council The President


1) OJ No L 249, 17.11.1970, s. 4.

2) OJ No L 94, 28. 4.1970, s. 13.

fcsax -to Ebc.


Beta

Fa R3ASTJ C 2AL SYAT EKS E EV2 T

13.

1.12.1975


Lins of tha Bidgat concerned : Items 6, 7 gnd 9 of the Budget'

sd

TSilo of tha action : Proposed regulation -of the Council concerning the appropriation .

14.

of securities, sureties or guarantees, undertaken for the purposes


' : of the common agricultural policy and remaining forfeit.

3, Legal tesls : Articles 43 and 209 of the Treaty.


The reduction affects articles and budgetary items involving refund and agricultural intervention, and also food aid expenditure.