Annexes to COM(1999)55 - Common organisation of the markets in fishery and aquaculture products

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ANNEX I


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ANNEX II


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ANNEX III

Tuna (of the genus Thunnus), skipjack or stripe-bellied bonito [Euthynnus (Katsuwonus) pelamis] and other species of the genus Euthynnus, fresh, chilled or frozen, intended for industrial manufacture of products falling within heading No 1604 and classified under one of the following Combined Nomenclature codes:


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ANNEX IV


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ANNEX V

SUSPENSIONS OF COMMON CUSTOMS TARIFF DUTIES REFERRED TO IN ARTICLE 28

1. The customs duty for frozen fillets of Alaska pollack (Theragra chalcogramma) presented as industrial blocks and intended for processing, falling within CN code ex 0304 20 85, is reduced to 3.5% for an indefinite period.

2. The customs duty for frozen meat of Alaska pollack (Theragra chalcogramma) presented as industrial blocks and intended for processing, falling within CN code ex 0304 90 61, is reduced to 3.5% for an indefinite period.

3. The customs duty for fish of the species Gadus morhua, Gadus ogac, Gadus macrocephalus and Boreogadus saida, excluding livers and roes, presented fresh, chilled or frozen and intended for processing, falling within CN codes:

ex 0302 50 10

ex 0302 50 90

ex 0302 69 35

ex 0303 60 11

ex 0303 60 19

ex 0303 60 90

ex 0303 79 41

is reduced to 3% for an indefinite period.

4. The duty rate for surimi intended for processing, falling within CN code ex 0304 90 05, is reduced to 3.5 % for an indefinite period.

5. The duty rate for frozen fillets OF blue grenadier (Macruronus novaezealandiae) intended for processing, falling within CN code ex 0304 20 91, is reduced to 3.5 % for an indefinite period.

6. The duty rate for frozen meat of blue grenadier (Macruronus novaezealandiae) intended for processing, falling within CN code ex 0304 90 97, is reduced to 3.5 % for an indefinite period.

7. The duty rate for so called "loin" fillets of tunas and skipjack intended for processing, falling within CN code ex 1604 14 16, is reduced to 6 % for an indefinite period. This rate of duty is to be reviewed in the light of changes to the Scheme of Generalised Preferences and the design of the new system that will apply from 2002.

8. The levying of the customs duty for prawns of the species Pandalus borealis, in shell, fresh, chilled or frozen and intended for processing, falling within CN code:

ex 0306 13 10

ex 0306 23 10

is suspended for an indefinite period.

9. The customs duty for whole herring (Clupea harengus, Clupea pallasi) weighing more than 140 g each or herring fillets weighing more than 80 g each including flaps, excluding livers and roes, presented fresh, chilled or frozen and intended for processing, falling within CN codes:

ex 0302 40 98

ex 0303 50 98

ex 0304 10 96

ex 0304 90 27

is reduced to 5% for an indefinite period.

Checks to ensure that the above products are actually processed are carried out in accordance with the relevant Community provisions. Total or partial suspension of the duty on these products shall be permitted where they are to undergo any operation, except where they are to undergo only one or more of the following:

- cleaning, gutting, tailing, heading,

- cutting (excluding filleting or cutting of frozen blocks),

- sampling, sorting,

- labelling

- packing,

- chilling,

- freezing,

- deep freezing,

- thawing, separation.

The suspension is not allowed for products intended, in addition, to undergo treatment (or operations) qualifying for suspension where such treatment (or operations) is (are) carried out at retail or catering level. The suspension of customs duties shall apply only to fish intended for human consumption.

ANNEX VI


A. Method for calculating the allowance provided for in Article 11

(in EUR per member vessel)


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B. Method for calculating the allowance provided for in Article 12

(in EUR per member vessel)

Member vessels // Annual amount

from the 1st to the 50th // 1000

from the 51st to the 100th // 500

From the 101st to the 500th // 250

from the 501st // 0

ANNEX VII

Correlation table

Règlement (CEE) no 3759/92 // This Regulation

Article 1 // Article 1

Article 2 // Article 2

Article 3 // Article 3

Article 4 // Article 5

Article 4a // Article 6

Article 5 // Article 8

Article 5a // -

Article 6 // Article 9

Article 7 // -

Article 7a // Article 7

Article 7b // -

Article 8 // Article 17

Article 9 // Article 18

Article 10 // Article 19

Article 11 // Article 20

Article 12 // Article 21

Article 12a // -

Article 13 // Article 22

Article 14 // Article 23

Article 15 // Article 24

Article 16 // Article 25

Article 17 // Article 26

Article 18 // Article 27

Article 19 // -

Article 20 // -

Article 21 // -

Article 22 // Article 29

Article 23 // Article 29

Article 24 // Article 30

Article 25 // Article 35

Article 26 // Article 33

Article 27 // Article 32

Article 28 // Article 31

Article 29 // -

Article 30 // Article 34

Article 31 // Article 37

Article 32 // Article 38

Article 33 // Article 39

Article 34 // Article 40

Article 35 // Article 42

Article 36 // Article 43

Annex I // Annex I

Annex II // Annex II

Annex III // Annex III

Annex IV // -

Annex V // -

Annex VI // Annex IV

Annex VII // Annex V


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Annex

1. METHOD FOR CALCULATING THE COST OF THE MEASURES PROVIDED FOR UNDER THE REFORM OF THE COMMON ORGANISATION OF MARKETS

The proposal provides for two types of measure giving rise to expenditure.

- Intervention mechanisms, with technical changes in some cases which will substantially reduce expenditure in relation to the current arrangements, provided the market situation remains steady. Expenditure forecasts for these mechanisms are based on expenditure actually incurred during previous years.

- New, temporary measures (five years) to help steer the activities of producer organisations towards better planning of production and greater use of anticipatory measures to adjust supply in line with demand; the measures in question will help mould the role of these organisations in the ways described above and achieve a lasting reduction in intervention and its attendant costs.

A summary table of planned expenditure can be found at the end of this statement.

1) Intervention mechanisms

(a) Community withdrawals and carry-over

Expenditure will fall from EUR 12 million in 2000 to EUR 7 million from 2003, given an averagely favourable market situation with no major disturbances.

The share of those amounts corresponding to financial compensation for permanent withdrawals and carry-over aid will change in relation to the current situation because the proposal provides for a reduction in the eligible quantities and the amount of the financial compensation and an increase in the quantities eligible for carry-over aid. This will make it possible not only to reduce overall intervention but also to make some economic use of the quantities taken into intervention.

(b) Independent withdrawals and carry-over

This mechanism has not been changed, so the figure of EUR 3.5 million is taken, on the basis of average expenditure over the three most recent years for which data are known.

(c) Private storage aid

Technical amendments have been made to this mechanism so that producers' organisations can have more rapid recourse to it where the market situation so warrants.

Expenditure has been increased to EUR 2 million, because it is expected that much greater use will be made of the mechanism than is currently the case.

(d) Compensatory allowance for tuna

A technical amendment is proposed to this mechanism, for which expenditure has fluctuated considerably in recent years according to the market situation: the triggering threshold has been lowered from 91% to 85% of the Community producer price to prevent the mechanism from being triggered for insufficient reason as soon as prices start to move. This amendment will reduce the cost of the allowance, to an annual average of EUR 2.5 million.


2) New measures

The calculation method for these measures is based on a degressive flat rate per vessel belonging to a producer organisation.

(a) Allowance for producer organisations

This measure is both temporary and degressive over time: producer organisations will receive the allowance for five years. It is intended to help the organisations concerned to bear the additional costs and activity arising from their obligation to draw up and manage an operational programme for the fishing year each year, to forecast and plan the output of member vessels on the basis of market requirements and the availability of fishery resources.

These operations increase in complexity with the number of members and species concerned; however, producer organisations with a relatively small number of member vessels must still receive an amount large enough to ensure that the objective of the allowance is achieved. Moreover, there is no justification for granting an excessively large allowance to organisations with a very large number of members.

The allowance is therefore calculated as follows:

(in EUR per member vessel)


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In addition to these amounts, an additional flat-rate amount of EUR 500 per species subject to a catch plan, up to 10 species, will be paid to some 150 producer organisations, amounting to:

500 x 10 x 150 = EUR 0.75 million (Total B)

Calculation of total annual amount:

- Number of vessels in category 1: 5520

- Number of vessels in category 2: 2991

- Number of vessels in category 3: 5813


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After the first five years, only newly created organisations will be eligible for the measure, the cost of which will become negligible.

(b) Additional allowance for recourse to contracts

It is proposed that this measure should run for five years to encourage producer organisations to make greater use of selling by contract as a way of better planning the output of their members, in line with market requirements. The measure complements the measure described at (a), but is optional and the allowance will be granted only to producer organisations that plan and sell at least 10% of their production under contract.

It is highly unlikely that all the producers' organisations will meet this requirement.

If they did, since this allowance is degressive on the basis of the number of member vessels in the way described at (a), the notional maximum annual cost of the measure would be:


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However, it is highly unlikely that all producer organisations will meet the conditions laid down. The cost is therefore estimated at the levels indicated in the expenditure forecast for 2000-06.


2. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

One of the main objectives of the reform of the market organisation is to achieve a better balance between supply and demand on the market, at the same time preventing the destruction and hence wasting of a limited natural resource.

The new measures, all temporary, therefore aim to aid producer organisations to acquire the know-how and tools they will need to implement anticipatory supply-side management measures to minimise recourse to intervention.

Since it would be unrealistic to aim for total abolition of intervention, particularly for species subject to seasonal fluctuations, the reform keeps the withdrawal mechanisms, but encourages carry-over as a means of obtaining some return via the market for processed products for fresh products which cannot be disposed of in time.

Permanent withdrawal must thus be a last resort, and compensation for it has therefore been reduced.

To achieve the above objective, producers' organisations need to be assisted, during a transitional period, to carry out preventive measures which should, by the time the reform enters into force, have resulted in a substantial reduction in both the volume and cost of permanent withdrawals and above all in better use of and returns on a sensitive resource.


Common market organisation for fisheries products - expenditure forecast

2000-06(1) (in EUR million - maximum amounts)


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(1) These forecasts are based on the assumption that the reform of the market organisation will enter into force on 1.1.2001 and do not take account of specific aid for the most remote regions.


Proposal for a

COUNCIL REGULATION (EC)

on the common organisation of markets

in fishery and aquaculture products


Statement of impact of the proposal on small and medium-sized enterprises

1. This proposal is part of the common fisheries policy and aims at reforming the current common organisation of markets in fishery and aquaculture products.

2. Impact on businesses

Both production undertakings and producer organisations will be directly affected by this proposal.

Firms operating on the market in fishery products will also be affected, particularly those engaged in the processing of fishery products.

Almost all of the firms concerned are SMEs.

This proposal is unlikely to have any negative impact on the employment, investments or competitiveness of these firms, since the aim of the proposed reform is to better adapt CFP management mechanisms to the conditions on the market in the products concerned and to encourage and help producer organisations to match supply to demand, thereby smoothing out price fluctuations and improving price levels.

In addition, the proposed tariff measures will improve the international competitiveness of the processing industry and enhance the security of its supply of raw materials.

Lastly, the proposal aims at simplifying and clarifying CFP mechanisms so as to improve their effectiveness. This is expected to have a beneficial impact on the firms concerned.