31974R1132

No L 128 /24 Official Journal of the European Communities 10 . 5 . 74

REGULATION (EEC) No 1132/74 OF THE COUNCIL

of 29 April 1974

on production refunds in the cereals and rice sectors

THE COUNCIL OF THE EUROPEAN COMMUNITIES , use of rice, the refund for broken rice should be fixed at such a figure that the price of broken rice is brought down to 10-20 units of account per 100 kilogrammes ; whereas, however, the level of the Having regard to the Treaty establishing the abovementioned supply prices should be guaranteed European Economic Community ; only insofar as the price of the basic products on the world market is situated below the threshold Having regard to Council Regulation No 120/67/ price for each of these products ; EEC (*) of 13 June 1967 on the common organization of the market in cereals, as last amended by Regulation (EEC) No 1125/74 ( 2 ), and Whereas on account of the connection between the in particular Article 11 (3 ) thereof; production prices of the raw materials used in the manufacture of cereal and potato starches and of Having regard to Council Regulation No 359/67/ the interchangeability of these two products, a EEC (3) of 15 July 1967 on the common organization balanced relationship should be maintained between of the market in rice, as last amended by Regulation the prices of these products ; whereas the refund (EEC) No 1129/74 (4), and in particular Article 9 granted should therefore be the same for both of (2 ) thereof; these products ; whereas, however, the refund paid to producers of potato starch should be such as to assure Community potato producers of a price Having regard to the proposal from the Commission ; allowing them a fair income, while the market conditions for cereals used in starch manufacture and the common market organizations governing Whereas, on account of the special situation on the them are such as to ensure that their price is in market in starches and, in particular, the need for fact held at the level of the threshold price; whereas the starch industry to ensure that its prices are steps should therefore be taken to ensure that potato competitive with those of substitute products, producers ultimately benefit from the refund paid Regulation Nos 120/67/EEC and 359 /67/EEC to producers of potato starch ; provided for the granting of a production refund, in order that the starch industry might obtain the basic products it requires at a lower price than that which would result from the application of the rules Whereas the level of the production refund to be of the common organization of the markets in the granted on maize used by the maize industry in the products in question ; manufacture of groats and meal for use by the brewing industry in the production of beer, and on broken rice used for the same purpose should be Whereas a precise assessment of the situation such as to achieve a balance between the cost of resulting from the level of common prices and from supplying the brewing industry with maize starch, the competition between, on the one hand, maize on the one hand, and with maize groats and meal starch, rice starch, potato starch and, on the other, and broken rice, on the other; whereas this objective the substitute chemical products, indicates that the will be achieved by fixing the refund on maize for refund should be fixed at such a figure that the the manufacture of groats and meal at the same price of maize used in starch manufacture is brought level as the refund on maize for the manufacture of down to 8-20 units of account per 100 kilogrammes ; starch and, also, by fixing the refund on broken whereas this price of 8-20 units of account for rice at a level which reduces the price to the brewing common wheat ensures a proper balance between industry to 10-20 units of account per 100 kilo­ the use of this product and the use of maize ; grammes ; whereas in order to obtain the same balance in the

Whereas Article 11 ( 1 ) of Regulation No 120/67/EEC C) OJ No 117 , 19 . 6. 1967, p. 2269/67. provided for a production refund to be granted on (2) See page 12 of this Official Journal . (3) OJ No 174, 31 . 7. 1967 , p. 1 . groats and meal for the manufacture of glucose by (4) See page 20 of this Official Journal . the process known as direct hydrolysis ; whereas

10 . 5 . 74 Official Journal of the European Communities No L 128 /25

this refund should be fixed at such a level as to lation (EEC) No 178/73 (8), have frequently been achieve a balance between glucose manufactured by amended ; whereas, for reasons of clarity, it is pre­ direct hydrolysis and glucose manufactured from ferable to include all the provisions relating to starch ; production refunds on cereals and rice in a single Regulation,

Whereas, in the event of appreciable and persistent variations in the world price of maize, common HAS ADOPTED THIS REGULATION : wheat and broken rice, these refunds should be limited, so long as world market prices remain high, in such a way as to deter imports at prices below TITLE I the world market level and to prevent the financial burden of production refunds from becoming ex­ Production refunds on cereal starch cessive ;

Whereas the abovementioned measures should not Article 1 disturb the markets in third countries ; whereas, therefore, in the event of an appreciable and 1 . Member States shall grant a production refund persistent increase in prices on the said markets, on maize and common wheat for the manufacture provision should be made for compensatory of starch equal to the difference per 100 kilogrammes measures consisting of the charging of a levy on between the threshold price for each of these prod­ exported products with a view to reducing the ucts, less any accession compensatory amount appli­ advantages granted to Community manufacturers to cable, and 8-20 units of account. an appropriate level ;

The production refund on maize for the manufacture of starch shall be increased in Italy by 0-30 unit of Whereas under Article 57 of the Act of Accession (1), account per 100 kilogrammes of maize. in fixing the level of the various elements of the price and intervention system, except for intervention prices, account is to be taken for the new Member This increase shall not, however, apply if recourse States, to the extent necessary for the proper func­ is had to the provisions of Article 23 (2) of Regulation tioning of Community rules, of the difference in No 120 / 67/ EEC . . prices expressed by the compensatory amount; whereas, however, for the application of this pro­ 2. Member States shall grant a production refund vision, the compensatory amount may be reduced in on broken rice for the manufacture of starch equal accordance with Article 7 of Council Regulation to the difference per 100 kilogrammes between the (EEC) No 229/73 (2) of 31 January 1973 laying down threshold price for broken rice, less any accession general rules for the system of compensatory amounts compensatory amount applicable, and 10-20 units for cereals and fixing these for certain products, as of account . last amended by Regulation (EEC ) No 1967/73 (3 ) and Article 5 of Council Regulation (EEC) No 243 / 73 (4) of 31 January 1973 laying down general rules for the system of compensatory amounts for rice and TITLE II fixing these amounts for certain products ;

Production refunds on potato starch Whereas Council Regulation No 367/67/EEC (5 ) of 25 July 1967 fixing production refunds on maize Article 2 groats and meal and broken rice used in the brewing industry, as last amended by Regulation (EEC) No 1926/73 (6), and Council Regulation No 371 /67/EEC Member States shall grant a production refund per (7) of 25 July 1967 fixing production refunds on 100 kilogrammes of potato starch, calculated at a flat starches and quellmehl, as last amended by Regu­ rate in accordance with the provisions of Articles 3 and 9, which shall be equal to the average amount of the refund granted during the period beginning on 1 August and ending on 31 July of the following year per 161 kilogrammes of maize for starch manu­ (x) OJ No L 73 , 27. 3 . 1972, p . 14. (2) OJ No L 27, 1 . 2 . 1973 , p. 25 . facture. (2) OJ No L 201 , 21 . 7. 1973 , p . 8 . (4) OJ No L 29 , 1 . 2. 1973 , p. 26. (5) OJ No 174, 31 . 7. 1967, p . 36. (6) O j No L 199 , 19 . 7. 1973 , p . 3 . C) Oj No 174, 31 . 7. 1967, p. 40. (8) OJ No L 25 , 30. 1 . 1973 , p . 5 .

No L 128 / 26 Official Journal of the European Communities 10 . 5 . 74

Article 3 Article 5

Member States shall grant a production refund on 1 . The price to be paid to the producer at the maize groats and meal for the manufacture of glucose delivered-to-factory stage for the quantity of potatoes under subheading 17.02 B II of the Common Customs required to manufacture 100 kilogrammes of potato Tariff ( 1) by the process known as direct hydrolysis. starch shall be equal to the amount of the production refund mentioned in Article 2, increased by an The production refund per 100 kilogrammes of maize amount of not less than 10·45 units of account. groats and meal shall be equal to the difference per 100 kilogrammes between the threshold price for maize, less any accession compensatory amount 2. The production refund shall be calculated on the applicable, and 8·20 units of account multiplied by basis of the quantity of potatoes delivered to starch the coefficient 1·23 . manufacturers, account being taken of the starch content of the potatoes at the time of delivery. Article 6

It shall be paid in full to the starch manufacturer if Member States shall take all necessary measures to ensure that the refunds mentioned in Articles 4 and 5 he furnishes proof: are limited to the quantities of maize groats and meal and broken rice actually used in the Community — of the quantities of potatoes delivered to him by the brewing industry in the production of beer and their starch content at the time of delivery ; or by the glucose industry.

— of payment to the producer of an amount not TITLE IV less than the price fixed in paragraph 1 , account being taken of the starch content of the potatoes. General provisions

Where the price paid to the producer is less than the Article 7 minimum referred to in the second indent of the preceding subparagraph, the refund paid to the 1 . If the prices of the basic products mentioned in starch manufacturer shall be reduced by the differ­ Articles 1 , 4 and 5 show appreciable and persistent variations on the world markets in relation to the ence in question . amounts specified in the said Articles, namely 8 l20 units of account for maize and common wheat and 10·20 units of account for broken rice, these amounts may be altered by the Council acting on a qualified TITLE III majority on a proposal from the Commission .

2 . If the world market price of, on the one hand, maize or common wheat, and, on the other, broken Production refunds on maize groats and meal and broken rice rice appreciably and persistently exceeds 8·20 and 10·20 units of account, respectively, an export levy to compensate for the difference between prices on the world market and supply prices for these basic Article 4 products within the Community shall be introduced for products falling within headings 11.08 A, 11.09, 17.02 B II, 17.05 B and 23.03 A I of the Common Customs Tariff. The Commission shall fix the export 1 . Member States shall grant a production refund levy. on maize used by the maize industry for the manu­ facture of groats and meal used by the brewing Article 8 industry in the production of beer equal to the refund granted on the same date on maize for starch Member States shall inform the Commission not manufacture . later than four months after the end of the marketing year of the quantity of products for which production refunds have been paid . 2 . Member States shall grant a production refund on broken rice used by the brewing industry in the production of beer, equal to the difference per (*) Pursuant to Regulation No 189/66/EEC, the products 100 kilogrammes between the threshold price for falling within tariff subheading 17.02 B I are subject broken rice, less any accession compensatory amount to the same arrangements as those laid down for applicable, and 10·20 units of account. products falling within subheading 17.02 B II.

10. 5 . 74 Official Journal of the European Communities No L 128 /27

Article 9 proof mentioned in the second subparagraph of Article 3 (2) must be furnished. Detailed rules for the application of this Regulation shall be adopted in accordance with the procedure laid down in Article 26 of Regulation No 120/67/ Article 10 EEC and Article 26 of Regulation No 359 /67/EEC in particular as regards : Regulation Nos 367/67/EEC and 371 /67/EEC are hereby repealed. (a) the export levy referred to in Article 7 (2) ;

(b) the granting of advances on production refunds Article 11 which may involve the giving of security ;

( c) the calculation , in accordance with a scale drawn This Regulation shall enter into force : up in terms of the starch content of the product, of the quantity of potatoes required to manufac­ — on 1 August 1974, for products covered by ture 100 kilogrammes of starch ; Regulation No 120/67/EEC,

( d) the conditions under which potatoes are accepted — on 1 September 1974, for products covered by and paid for and the conditions under which the Regulation No 359/ 67/EEC .

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

Done at Luxembourg, 29 April 1974.

For the Council

The President

J. ERTL