31967R0120

Official Journal of the European Communities 33

19.6.67 OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES 2269/67

REGULATION No 120/67/EEC OF THE COUNCIL

of 13 June 1967 on the common organisation of the market in cereals

THE COUNCIL OF THE EUROPEAN ECONOMIC on which agricultural prices in general depend in COMMUNITY, large measure made it more difficult for farmers to make medium-term forecasts and was liable to cause unproductive investments ; whereas, therefore, a Having regard to the Treaty establishing the Euro­ single price system for cereals for the Community pean Economic - Community, and in particular should be introduced from the 1967/68 marketing Articles 42 and 43 thereof; year ; Having regard to the proposal from the Commission ; Whereas, owing to the price mechanism brought into being by Regulation No 19, the creation of a single Having regard to the Opinion of the European Par­ market in cereals for the whole Community does not liament1 ; depend solely on the removal of all obstacles to the free movement of goods within the Community and Whereas the operation and development of the com­ on the establishment of identical protection at its ex­ mon market in agricultural products must be accom­ ternal frontiers, but also on the adoption of a system panied by the establishment of a common agricultural comprising, as provided for in Article 13 of Regu­ policy to include in particular a common organis­ lation No 19, a target price valid for the whole Com­ ation of agricultural markets which may take various munity, a single threshold price, a single method of forms depending on the product; fixing intervention prices and finally a single frontier crossing point for the Community to be used for de­ Whereas Regulation No 192 provided that the com­ termining c.i.f. prices for products from third countries ; mon organisation of the market in cereals should be whereas, therefore, the necessary adjustments should established progressively from 1962 ; whereas the be made to the system provided in Regulation No 19 ; main features of the market organisation thus estab­ lished are the annual fixing of target prices, published before the winter sowing so as to allow producers to Whereas the aim of the common agricultural policy is make their crop plans, and the fixing, on the basis of to attain the objectives set out in Article 39 of the the target price, of an intervention price, at which the Treaty ; whereas in the cereals sector, in order to competent agencies are obliged to buy in the cereals stabilise markets and to ensure a fair standard of offered to them, and of a threshold price to which living for the agricultural community concerned, the price of imported products must be equated by intervention agencies should continue to take inter­ means of a variable levy; vention measures on the market, such measures however to be standardised so as not to impede the Whereas a progressive approximation of the target free movement of cereals within the Community ; prices for basic products was provided for in Article 6 (4) of Regulation No 19 so that a common target Whereas free movement of cereals within the Com­ price might be attained by the end of the transitional period ; whereas, however, the method of progressive munity should enable surpluses in production areas to be offset against requirements in deficit areas ; reduction of disparities between target prices fixed by Member States has encountered considerable difficult­ whereas, so as not to impede such offsetting, inter­ ies ; whereas the uncertainty about the final level of vention prices derived from the basic price should be fixed in such a way that the differences between them cereal prices to which this process was leading and reflect the disparities which, given a normal harvest, arise under natural conditions of price formation on 1 OJ No 103 , 2.6.1967, p. 2063/67. the market, and that the forces of supply and demand 2 OJ No 30, 20.4.1962, p . 933/62. may have free play;

34 Official Journal of the European Communities

Whereas the smooth adjustment of the market to the situation on the market so requires, prohibiting the regionalisation of prices requires intervention use of 'inward processing arrangements'; whereas, agencies to be able, in special circumstances, to take moreover, the refund should be fixed in such a way intervention measures suited to those circumstances ; that operations under inward processing arrange­ whereas, however, so that the required uniformity of ments do not lead the Community processing indus­ intervention systems may be maintained, those special try to use, with a view to export, basic products circumstances should be assessed and the appropriate imported from third countries in preference to measures determined at Community level ; Community basic products ; whereas the creation of a single market in cereals necessitates Community Whereas the target prices, intervention prices and control of the inward processing trade ; threshold prices should, in the course of the market­ ing year, be subject to a certain number of monthly Whereas the competent authorities . must be in a increases in order to take account, among other position constantly to follow trade movements in order things, of storage costs and interest charges for to assess market trends and to apply the measures storing cereals in the Community and of the need to laid down in this Regulation as necessary ; whereas, ensure that the disposal of stocks conforms to market to that end, provision should be made for the issue of requirements ; import and export licences accompanied by the lodg­ ing of a deposit guaranteeing that the transactions for Whereas it may prove impossible to give producers of which such licences are requested are effected ; durum wheat sufficient guarantees by fixing a price which takes into account the ratio existing normally Whereas the levy system makes it possible to dispense on the world market between durum and common with all other protective measures at the external wheat prices ; whereas this ratio should be respected frontiers of the Community ; whereas , however, the so far as possible in the Community because of the common price and levy machinery may in excep­ interchangeability of these two products ; whereas tional circumstances prove defective; whereas , in such provision must therefore be made for the possibility cases, so as not to leave the Community market with­ of granting aid to producers of durum wheat ; out defence against disturbances which may arise therefrom after the import barriers which existed pre­ Whereas because of the special situation on the mar­ viously have been removed , the Community should ket in starches and, in particular, the need for that in­ be enabled to take all necessary measures without de­ dustry to keep prices competitive with those for sub­ lay; stitute products, it is necessary to ensure by means of a production refund that the basic products used by Whereas the establishment of a single market in the industry are made available to it at a lower price cereals involves the removal at the internal frontiers of than that which would result from applying the sys­ the Community of all obstacles to the free movement tem of levies and common prices ; whereas, for similar of the goods in question ; reasons and because of the interchangeability , of Whereas the establishment of a single market based starches with quellmehl and maize groats and meal , on a common price system would be jeopardised by production refunds should also be granted in respect the granting of certain aids ; whereas, therefore, the of the latter products ; provisions of the Treaty which allow the assessment Whereas the creation of a single Community market of aids granted by Member States and the prohibition for cereals involves, apart from a single price system, of those which are incompatible with the common the introduction of a single trading system at the ex­ market should be made to apply to cereals ; ternal frontiers of the Community; whereas a trading Whereas the transition from the system provided in system including levies and export refunds, combined Regulation No 19 to that established by this Regu­ with intervention measures, also serves to stabilise lation should be effected as smoothly as possible ; the Community market, in particular by preventing whereas , to that end, Regulations Nos 119 /66/EEC1 price fluctuations on the world market from affecting and 90/67/EEC2 have already provided for certain prices ruling within the Community ; whereas, there­ transitional measures but others may prove necessary; fore, provision should be made for charging a levy on whereas, in addition, Italy should be authorised for imports from third countries and for the payment of some years to take measures to reduce the impact of a refund on .exports to these countries, both being de­ the new system on the level of prices for feed grain in signed to cover the difference between prices ruling that Member State in order to facilitate the adjustment outside and within the Community; whereas, of the Italian market to that new system ; moreover, in respect of products processed from cereals to which this Regulation applies, account should be taken of the need to ensure a measure of Whereas the common organisation of the market in protection for the Community processing industry ; cereals must include the products of primary process­

Whereas, in addition to the system described above, and to the extent necessary for its proper working, 1 OJ No 149, 11.9.1966, p . 2737/66. provision should be made for regulating or, when the 2 OJ No 89, 9.5.1967, p . 1749/67.

Official Journal of the European Communities 35

ing which contain cereals or certain products which munity for the marketing year beginning during the do not contain cereals but which are directly inter­ following calendar year : changeable in their use with cereals or with products obtained from cereals ; — a target price for each of the following : common wheat, durum wheat, barley, maize and rye ; Whereas the common organisation of the market in — a basic intervention price for each of the follow­ cereals must take appropriate account, at the same time, of the objectives set out in Articles 39 and 110 ing : common wheat, durum wheat, barley and rye and, unless the provisions of Article 4 (2) are of the Treaty ; applied, for maize; Whereas, in order to facilitate implementation of the — a guaranteed minimum price for durum wheat. proposed measures, a procedure should be provided for establishing close co-operation between Member States and the Commission within a Management 2. These prices shall be fixed for a standard quality Committee ; to be determined for each of the above cereals .

3 . The target price and the basic intervention price HAS ADOPTED THIS REGULATION : shall be fixed for Duisburg at the wholesale stage, ' goods delivered to warehouse, not unloaded .

Article 1 The guaranteed minimum price for durum wheat shall be fixed for the marketing centre of the region The common organisation of the market in cereals with the largest surplus, at the same stage and under shall comprise a price and trading system and cover the same conditions as the target price. the following products : 4. The prices mentioned in this Article and the CCT Description of goods standard qualities for which they are fixed shall be heading No determined in accordance with the procedure laid down in Article 43 (2) of the Treaty. ( a) ex 10.01 Common wheat (including mesiin) 10.02 Rye Article 3 10.03 Barley 10.04 Oats The marketing year for all the products listed in Article 1 shall begin on 1 August and end on 31 July 10.05 Maize of the following year. 10.07 Buckwheat, millet, canary seed and grain sorghum ; other cereals Article 4 (b) ex 10.01 Durum wheat 1 . In order to guarantee to producers that the mar­ ket price does not fall below a minimum level, de­ (c) 11.01 A Wheat or spelt flour rived intervention prices for common wheat, durum 11.01 B Mesiin flour wheat, barley, maize and rye shall be fixed for the Community, in addition to the basic intervention ex 11.01 C Rye flour price. ex 11.02 A 1 Wheat groats and meal (common wheat and durum wheat) The derived intervention prices shall be fixed for the same standard quality, at the same stage and under ( d) The products listed in Annex A to this Regulation . the same conditions as the target price, for all mar­ keting centres in the Community except Duisburg. The derived intervention prices shall be calculated in such a way that the differences between them corres­ TITLE I pond to the price disparities in prices to be expected in a normal harvest under natural conditions of price formation on the market and allow the free move­ Prices ment of cereals within the Community in accordance with the requirements of the market. Article 2 2. By way of derogation from the provisions of 1 . Simultaneously and before 1 August of each paragraph 1 , a single intervention price shall be fixed year the following prices shall be fixed for the Com­ for maize for all the marketing centres for that

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cereal, provided that the quantities of home-grown The threshold price shall be fixed for the same stan­ maize marketed in a normal harvest remain below dard quality as the target price. 45% of the amount . consumed within the Com­ munity. This price shall correspond to the lowest de­ 2. For a standard quality of each of the products rived intervention price which would have been fixed listed in Article 1 (a) which are not mentioned in in the Community if the provisions of paragraph 1 paragraph 1 above, a threshold price shall be fixed had applied . for the Community in such a way that the price for those cereals mentioned in paragraph 1 which are in 3 . Intervention prices for common wheat, durum competition with these products shall reach the target wheat, barley and rye shall be effective from 1 price on the Duisburg market. August to 31 May of the following year. From 1 June to 31 July the intervention prices effective for August 3 . For a standard quality of each of the products of the following marketing year shall apply. listed in Article 1 (c) a threshold price shall be fixed for the Community, account being taken of the ob­ Intervention prices for maize shall be effective from jective stated in paragraph 2 and of the need to pro­ 1 August to 31 July of the following year. tect the processing industry.

4. The Council, acting in accordance with the 4. The threshold prices shall be calculated for Rot­ voting procedure laid down in Article 43 (2) of the terdam . Treaty on a proposal from the Commission, shall lay down each year before 15 March for the following 5 . The Council, acting in accordance with the marketing year : voting procedure laid down in Article 43 (2) of the ( a) the marketing centre to which the lowest derived Treaty on a proposal from the Commission, shall de­ termine : intervention price applies and the price in ques­ tion in respect of each Member State and each ( a) the rules for fixing threshold prices for products kind of cereal produced in any quantity in that referred to in paragraph 3 and the standard qual­ Member State, except for maize where paragraph ity for products referred to in paragraphs 2 and 2 applies ; 3 ; (b) the principal marketing centres and the derived (b) before 15 March of each year, for the following intervention prices effective in those centres ; marketing year, the threshold prices, for products referred to in paragraphs 1 and 2. (c) the intervention price for maize provided for in paragraph 2, if the provisions of that paragraph 6 . Threshold prices for products referred to in are applied. paragraph 3 shall be fixed before 15 March of each year for the following marketing year in accordance 5 . Rules shall be adopted in accordance with the with the procedure laid down in Article 26 . procedure referred to in paragraph 4 for : (a) determining marketing centres other than those mentioned in paragraph 4 (b); Article 6

(b) deriving intervention prices valid both for the 1 . The target prices, intervention prices and principal marketing centres and for other centres. threshold prices shall be the subject of monthly in­ creases phased over all or part of the marketing year. 6. The marketing centres menti6ned in paragraph 5 ( a) and the derived intervention prices valid for 2. The Council, acting in accordance with the these centres shall be determined, after consultation voting procedure laid down in Article 43 (2) of the with the Member States concerned, before 15 May of Treaty on a proposal from the Commission, shall fix each year for the following marketing year, in ac­ before 15 March of each year, for the following mar­ cordance with the procedure laid down in Article 26. keting year, the number and amount of the monthly increases phased over the marketing year. Article 5

Article 7 1 . In respect of common wheat, durum wheat, barley, maize and rye a threshold price shall be fixed for the Community in such a way that the 1 . Throughout the marketing year the intervention selling price for the imported product on the Duis­ agencies designated by Member States shall be ob­ burg market shall be the same as the target price, liged to buy in cereals mentioned in Article 4 which differences in quality being taken into account. are offered to them and have been harvested in the

Official Journal of the European Communities 37

Community, provided that the offers comply with on a proposal from the Commission, shall determine conditions, in particular in respect of quality and the conditions under which intervention agencies may quantity, to be determined in accordance with para­ take special intervention measures to prevent sub­ graph 5 . stantial purchases being made in pursuance of Article 7 ( 1 ) in certain regions of the Community. 2 . The intervention agencies shall buy in at the in­ The nature and scope of Such intervention measures tervention price ruling for the marketing centre at shall be determined in accordance with the procedure which the cereal is offered, under conditions deter­ laid down in Article 26 . mined in accordance with paragraphs 4 and 5 . If the quality of the cereal is different from the standard Before the expiry of the first year of application of quality for which the intervention price has been this Regulation the Commission shall submit to the fixed, the intervention price shall be adjusted in ac­ Council a report on the results obtained from the cordance with scales of price increases and reduc­ application of the measures laid down in this Article tions. These scales may also include special optional and on the advisability of amending or repealing price increases in respect of barley of brewery quality them . and, in certain regions, in respect of rye of bread­ making quality. Article 9 3 . Under conditions to be laid down in accordance with paragraphs 4 and 5 , the intervention agencies : 1 . A carry-over payment may be granted in respect of stocks remaining at the end of the marketing year — shall offer for sale, for export to third countries of commom wheat, durum wheat, rye and barley har­ or for supply to the internal market, the product vested in the Community, and of malt. bought in under the provisions of paragraph 1 ; Before 15 March of each year the Council, acting in — may likewise offer for sale for the same purposes accordance with the voting procedure laid down in common wheat and also rye of bread-making Article 43 (2) of the Treaty on a proposal from the quality in respect of which the special price in­ Commission, shall decide whether a carry-over pay­ crease has been granted, after having rendered ment should be granted in respect of one or more of them unfit for human consumption by denaturing. the above-mentioned products and, if so, to what ex­ tent . They may also grant a denaturing premium for com­ mon wheat. 2. A carry-over payment shall be granted each year in respect of maize, but shall be limited to stocks of 4. The Council, acting in accordance with the maize harvested in the Community in hand at the end voting procedure laid down in Article 43 (2) of the of the marketing year in areas of surplus production. Treaty on a proposal from the Commission, shall adopt general rules governing intervention and dena­ 3 . The carry-over payment for each cereal shall turing. not exceed the difference between the target price valid for the last month of the marketing year and 5 . Detailed rules for the application of this Article that valid for the first month of the next marketing shall be adopted in accordance with the procedure year. laid down in Article 26, in particular as regards : — the minimum quality and quantity required for 4. The carry-over payment shall be granted only if intervention in respect of each cereal ; stocks reach a minimum quantity.

— the scales of price increases and reductions appli* 5 . The amount of the carry-over payment shall be cable to intervention ; fixed in accordance with the procedure referred to in — the procedures and conditions for taking-over by paragraph 1 . the intervention agencies ; 6. Detailed rules for the application of this Article, — the procedures and conditions for disposal of in particular the minimum quantity qualifying for a produce by the intervention agencies ; carry-over payment and the categories of those — the conditions for granting denaturing premiums entitled to it, shall be adopted in accordance with the and the amount thereof. procedure laid down in Article 26.

Article8¶

The Council, acting in accordance with the voting "Where the intervention price for durum wTheat valid procedure laid down in Article 43 (2) of the Treaty for the marketing centre of the area with the largest

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surplus is lower than the guaranteed minimum price, Article 43 (2) of the Treaty on a proposal from the aid shall be granted for the production of this cereal. Commission, and from 1 August 1969 at the latest, This aid, of a uniform amount for the whole Com­ such licences shall be valid for transactions effected munity, shall be equal throughout the marketing year in the Community. Until that date such licences shall to the difference between the guaranteed minimum be valid only for transactions effected in the Member price and the above-mentioned intervention price at State which issued them. the beginning of the marketing year. The issue of such licences shall be conditional on the The Council, acting in accordance with the voting lodging of a deposit guaranteeing that importation or procedure laid down in Article 43 (2) of the Treaty exportation is effected during the period of validity on a proposal from the Commission, shall adopt of the licence ; the deposit shall be forfeited in whole detailed rules for the application of this Article. or in part if the transaction is not effected, or is only partially effected, within that period.

Article 11 2. The period of validity of licences and other de­ tailed rules for the application of this Article shall be 1 . A production refund shall be granted : adopted in accordance with the procedure laid down in Article 26 . ( a) for maize and commom wheat used by the starch industry for the manufacture of starch and quell­ mehl ; Article 13 (b ) for potato starch; (c) for maize used in the maize industry for the 1 . A levy equal for each product to the threshold manufacture of maize groats and meal (gritz) price less the c.i.f. price shall be charged on imports used by the brewing industry. of the products listed in Article 1 (a), (b ) and (c).

However, the levy applicable to hybrid maize, falling 2. The payment of the production refund for • within sub-heading No 10.05 A of the Common Cus­ potato starch shall be subject to the condition that the toms Tariff, shall be limited to the amount resulting processor has paid a minimum free-at-works price for from the application of the rate of duty bound within the potatoes . GATT . The minimum price to be received by the producer shall consist of the minimum price to be paid by the 2. The c.i.f. prices shall be calculated for Rotter­ starch manufacturer plus an amount corresponding dam on the basis of the most favourable purchasing to the production refund . opportunities on the world market, determined for each product on the basis of the quotations and 3 . The Council, acting in accordance with the prices of that market after adjustment for any dif­ ferences in quality as compared with the standard voting procedure laid down in Article 43 (2) of the quality for which the threshold price is fixed. Treaty on a proposal from the Commission, shall adopt rules for the application of this Article and fix Differences in quality shall be expressed in coef­ the amount of the production refund. ficients of equivalence.

3 . Where free quotations on the world market are TITLE II not a determining factor for the offer price and where this price is lower than world market prices, a special c.i.f. price calculated on the basis of the offer price Trade with third countries shall be substituted for the c.i.f. price solely for the imports in question . Article 12 . 4. Detailed rules for the application of this Article, and in particular the coefficients of equivalence, the 1 . Imports into the Community or exports there­ rules for determining c.i.f. prices and the margin from of any of the products listed in Article 1 shall within which variations in the factors used for calcu­ be subject to the submission of an import or export lating the levy do not require any alteration of the licence which may be issued by Member States to any levy, shall be adopted in accordance with the pro­ applicant irrespective of the place of his establish­ cedure laid down in Article 26 . ment in the Community.

From a date to be fixed by the Council, acting in ac­ 5 . The Commission shall fix the levies mentioned cordance with the voting procedure laid down in in this Article.

Official Journal of the European Communities 39

Article 14 mium, fixed at the same time as the levy, shall be added to the levy. 1 . A levy shall be charged on the importation of products referred to in Article 1 (d) consisting of two 3 . A decision may be taken in accordance with the components : procedure laid down in Article 26 to apply the pro­ visions of paragraph 2, in whole or in part, to any of A. A variable component which may be fixed and the products listed in Article 1 (c) and (d ). revised on a flat-rate basis, If the carry-over payment envisaged by Article 9 is ( a ) corresponding, in respect of products processed not granted for malt, and if an advance fixing of the from basic products listed in Article 1 ( a), to the levy has been prescribed for this product, the levy incidence on their prime cost of the levies on shall be adjusted during the first two months of the those basic products ; marketing year on the basis of the threshold price in force during the last month of the preceding market­ (b ) increased, where necessary, for processed prod­ ing year. ucts which contain both basic products listed in Article 1 (a) and other products, by the amount 4. The Council, acting in accordance with the of the incidence on their prime cost of the levies voting procedure laid down in Article 43 (2 ) of the or customs duties charged on those other prod­ Treaty on a proposal from the Commission, shall ucts ; adopt rules for fixing the scale of premiums and (c) fixed, for products which do not contain any basic measures to be taken in exceptional circumstances or products listed in Article 1 ( a), with reference where importation is not effected within the month to market conditions for those Article 1 products laid down . which are in competition with them ; 5 . The scale of premiums shall be adopted by the Commission . B. A fixed component designed to protect the pro­ cessing industry. Article 16 2 . Where actual offers from third countries of products referred to in Article 1 (d) do not corres­ 1 . To the extent necessary to enable the products pond to the price which results from the price of basic listed in Article 1 to be exported in the state referred products used in their manufacture plus processing to therein or in the form of goods listed in Annex B costs, an amount fixed in accordance with the pro­ on the basis of quotations or prices for those prod­ cedure laid down in Article 26 may be added to the ucts on the world market, the difference between levy fixed in accordance with paragraph 1 . those quotations or prices and prices in the Com­ munity may be covered by an export refund. 3 . The Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the 2 . The refund shall be the same for the whole Treaty on a proposal from the Commission, shall Community. It may be varied according to use or adopt rules for the application of this Article. destination .

The refund shall be granted on application . 4. The Commission shall fix the levies specified in paragraph 1 . When the refund is being fixed particular account shall be taken of the need to establish a balance be­ tween the use of Community basic products in the Article 15 manufacture of processed goods for export to third countries and the use of third country products brought in under inward processing arrangements . 1 . The levy to be charged shall be that applicable on the day of importation. Refunds shall be fixed at regular intervals in accord­ ance with the procedure laid down in Article 26. 2 . However, as regards imports of products listed Where necessary the Commission may, at the request in Article 1 (a) and (b), the levy applicable on the of a Member State or on its own initiative, alter the day on which application for a licence is made, ad­ refunds in the intervening period . justed for the threshold price which will be in force during the expected month of importation, shall be 3 . The amount of the refund applicable to the ex­ applied to an import to be effected during the period port of products listed in Article 1 and of goods of validity of the licence, if the applicant so requests listed in Annex B shall be that applicable on the day when applying for the licence. In this case a pre­ of exportation.

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4. However, as regards exports of products listed ( a) the rate of yield to be taken when determining in Article 1 (a) and (b), the refund applicable on the the quantity of Article 1 products used in the day on which application for a licence is made, ad­ manufacture of processed goods for export; justed for the threshold price which will be in force (b) the determination, for the purpose of applying during the month of exportation, shall be applied to the levy, of the quantity of products used in the an export to be effected during the period of validity manufacture of processed goods put into free cir­ of the licence, if the applicant so requests when ap­ culation . plying for the licence. In this case a corrective amount, fixed at the same time as the refund, shall 4. For the purposes of this Article 'inward process­ apply to the refund. ing arrangements' means all those provisions deter­ The provisions of the preceding subparagraph may mining the conditions under which products from be applied in whole or in part to any of the products third countries are used in the Community in the listed in Article 1 (c) and (d). manufacture of goods for export and enjoy exemp­ tion from the levies applicable to them. If the carry-over payment envisaged by Article 9 is not granted for barley and malt and if an advance Article 18 fixing of the refund has been laid down for malt, the refund on exports, during the first two months of the marketing year, of malt in stock at the end of the 1 . Without prejudice to the provisions of Regula­ preceding marketing year or made from barley in tion No 156/66/EEC,1 the general rules for the in­ stock at that time shall be adjusted for the threshold terpretation of the Common Customs Tariff and the price in force in the last month of the preceding mar­ special rules for its application shall apply to the keting year. tariff classification of products covered by this Regu­ lation ; the tariff nomenclature resulting from appli­ cation of this Regulation shall be incorporated in the 5 . The Council, acting in accordance with the Common Customs Tariff from the date on which the voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission , shall latter is fully applied . adopt general rules for granting export refunds and 2. Save as otherwise provided in this Regulation or criteria for fixing the amount of such refunds. where derogation therefrom is decided by the Coun­ cil, acting in accordance with the voting procedure 6. Detailed rules for the application of this Article laid down in Article 43 (2) of the Treaty on a pro­ shall be adopted in accordance with the procedure posal from the Commission, the following shall be laid down in Article 26. prohibited :

— the levying of any customs duty or charge having Article 17 equivalent effect; 1 . To the extent necessary for the proper working — the application of any quantitative restriction or of the common organisation of the market in cereals, measure having equivalent effect, subject to the the Council, acting in accordance with the voting provisions of the Protocol on the Grand Duchy of Luxembourg. v procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, may prohibit in The restriction of import or export licences to a whole or in part the use of inward processing ar­ specified category of those entitled to receive them rangements : shall be one of the measures considered as having — in respect of products listed in Article 1 which are effect equivalent to a quantitative restriction. intended for the manufacture of products listed in Article 1 (c) and (d );' Article 19 — and, in special cases, in . respect of products listed in Article 1 which are intended for the manufac­ When the c.i.f. price of one or more of the products ture of goods listed in Annex B. mentioned in Article 2 is appreciably higher than the threshold price, and that situation is likely to con­ tinue, thereby disturbing or threatening to disturb the 2. Community provisions to regulate the inward Community market, the necessary measures may be processing trade in the products listed in Article 1 taken . shall be adopted not later than 1 July 1968 . The Council, acting in accordance with the voting 3 . Rules to be applied until the provisions men­ procedure laid down in Article 43 (2) of the Treaty tioned in paragraph 2 enter into force shall be adopted in accordance with the procedure referred to in paragraph 1 ; they shall apply in respect of: 1 OJ No 192, 27.10.1966, p. 3278/66.

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on a proposal from the Commission, shall adopt gen­ Article 22 eral rules for the application of this Article. Save as otherwise provided in this Regulation, Articles 92 to 94 of the Treaty shall apply to the Article 20 production of and trade in the products listed in Article 1 . 1 . If by reason of imports or exports the Com­ munity market in one or more of the products listed in Article 1 experiences or is threatened with serious Article 23 disturbances which may endanger the objectives set out in Article 39 of the Treaty, appropriate measures 1 . When barley, oats, maize, grain sorghum and may be applied in trade with third countries until millet are imported by sea into the Italian Republic such disturbance or threat of disturbance has ceased . and until the end of the 1971 /72 marketing year, that Member State may reduce the levy by 7-5 units of ac­ The Council, acting in accordance with the voting count per metric ton on condition that an equal sub­ procedure laid down in Article 43 (2) of the Treaty sidy is granted for deliveries of the same cereals by on a proposal from the Commission, shall adopt sea from Member States . rules for the application of this paragraph and define the cases in which and the limits within which Mem­ ber States may take protective measures. 2. Furthermore, when barley, oats, maize, grain sorghum and millet are imported into the Italian 2. If the situation mentioned in paragraph 1 arises, Republic, that Member State may reduce the levy by: the Commission shall, at the request of a Member State or on its own initiative, decide upon the necess­ — 3-13 units of account per metric ton during the ary measures ; the measures shall be communicated marketing year 1967/68 ; to the Member States and shall be immediately appli­ cable. If the Commission receives a request from a — 2-50 units of account per metric ton during the Member State, it shall take a decision thereon within marketing year 1968/69 ; twenty-four hours following receipt of the request. — 2-50 units of account per metric ton during the marketing year 1969/70 ; 3 . The measures decided upon by the Commission may be referred to the Council by any Member State on condition that an equal subsidy is granted for de­ within three working days following the day on liveries of the same cereals from Member States . which they were communicated. The Council shall meet without delay. It may amend or repeal the 3 . By way of derogation from Article 21 ( 1 ), if the measures in question in accordance with the voting power conferred by paragraph 2 is used, a charge procedure laid down in Article 43 (2) of the Treaty. equal to the amount of the reduction in the levy re­ ferred to in that paragraph shall be levied by the TITLE III Italian Republic on deliveries of barley, oats, maize, grain sorghum and millet from that country to other Member States . General provisions

4. If Italy makes use of the power conferred by Article 21 paragraph 2, the Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, 1 . The following shall be prohibited in the internal shall take the measures necessary to prevent distor­ trade of the Community : tions of competition as regards trade in those prod­ — the levying of any customs or charge having ucts referred to in Article 1 (d) the levy on which is equivalent effect; calculated on the basis of barley, oats , maize, grain sorghum or millet. — any quantitative restriction or measure having equivalent effect, subject to the provisions of the Protocol on the Grand Duchy of Luxembourg; 5 . Detailed rules for the application of this Article shall be adopted in accordance with the procedure — recourse to Article 44 of the Treaty. laid down in Article 26 .

2. Goods listed in Article 1 which are manufac­ Article 24 tured or obtained from products to which Article 9 (2) and Article 10 ( 1 ) of the Treaty do not apply shall not be admitted to free circulation within the Member States and the Commission shall communi­ Community. cate to each other the information necessary for im­

42 Official Journal of the European Communities

plementing this Regulation. Rules for the communi­ Article 29 cation and distribution of such information shall be adopted in accordance with the procedure laid down This Regulation shall be so applied that appropriate in Article 26 . account is taken , at the same time, of the objectives set out in Articles 39 and 110' of the Treaty. Article 25 Article 30 1 . A Management Committee for Cereals (herein­ after called the 'Committee') shall be established, The additional amount provided for in Article 14 (2) consisting of representatives of Member States and and the premium provided for in Article 15 (2) shall presided over by a representative of the Commission . be considered as levies in relation to third countries within the meaning of Article 11 (4) of Council . 2 . Within the Committee the votes of Member Regulation No 130/66/EEC1 of 26 July 1966 on the States shall be weighted in accordance with Article financing of the common agricultural policy. 148 (2) of the Treaty. The Chairman shall not vote.

Article31¶

The Council, acting in accordance with the voting 1 . Where the procedure laid down in this Article is to be followed, the Chairman shall refer the matter to procedure laid down in Article 43 (2) of the Treaty the Committee either on his own initiative or at the on a proposal from the Commission, shall, in respect request of the representative of a Member State. of processed products referred to in Article 1 (d) containing not only products listed in Article 1 but also products subject to the common organisation of 2. The representative of the Commission shall the market in milk and milk products, adopt trans­ submit a draft of the measures to be taken . The itional measures designed to take account of differ­ Committee shall deliver its Opinion on such ences in the price of milk products in Member States measures within the time limit to be set by the until the system of common prices in this sector takes Chairman according to the urgency of the questions effect, such measures to apply to trade both between under consideration. An Opinion shall be adopted by Member States and between Member States and third a majority of twelve votes . countries . 3 . The Commission shall adopt measures which shall apply immediately. However, if these measures Article 32 are not in accordance with the Opinion of the Com­ mittee, they shall forthwith be communicated by the Commission to the Council. In that event the Com­ 1 . Without prejudice to the provisions of Regu­ lation No 90/67/EEC, should transitional measures be mission may defer application of the measures which necessary to facilitate the transition from the system it has adopted for not more than one month from the provided in Regulation No 19 to that established by date of such communication . this Regulation, in particular if the introduction of The Council, acting in accordance with the voting the new system on the date provided for would give procedure laid down in Article 43 (2) of the Treaty, rise to substantial difficulties in respect of certain may take a different decision within one month. products, such measures shall be adopted in accord­ ance with the procedure laid down in Article 26 . Article 27 They shall be applicable until 31 July 1968 at the latest. The Committee may consider any other question re­ ferred to it by its Chairman either on his own initia­ By way of derogation from the provisions of Article tive or at the request of the representative of a Mem­ 3 , the 1967/68 marketing year shall begin on 1 July. ber State. 2. By way of derogation from the provisions of Article 28 Article 2, the prices and standard qualities mentioned therein effective for the 1967/68 marketing year shall be determined by the Council, acting in accordance At the end of the transitional period, the Council, with the voting procedure laid down in Article 43 (2) acting in accordance with the voting procedure laid of the Treaty on a proposal from the Commission. down in Article 43 (2) of the Treaty on a proposal from the Commission, shall decide in the light of ex­ perience whether to retain or amend the provisions of Article 26 . 1 OJ No 165, 21.10.1966, p . 2965/66.

Official Journal of the European Communities 43

3 . By way of derogation from the provisions of The system established by this Regulation shall apply Article 4 ( 1 ), it may be decided, in accordance with from 1 July 1967, except for the measures provided the procedure set out in Article 4 ( 6) and at the re­ for in Article 32 ( 1), which may be made to apply quest of a Member State, that derived intervention from the date of entry into force of this Regulation. prices for durum wheat, valid for the marketing cen­ Regulation No 19 and the provisions adopted in im­ tres referred to in Article 4 (5 ) (a) of that Member plementation thereof, except for the provisions of State, shall, during the 1967/68 and 1968/69 market­ Regulations Nos 3/63 /EEC1 and 119/66/EEC, shall be ing years, be equal to the lowest intervention price fixed for that Member State. repealed with effect from 1 July 1967. Article 2 of Regulation No 562 shall be repealed with Article 33 effect from the same date . This Regulation shall enter into force on the day fol­ lowing its publication in the Official Journal of the 1 OJ No 14, 29.1.1963, p. 153/63 . European Communities. 2 OJ No 54, 2.7.1962, p. 1591/62.

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

Done at Brussels, 13 June 1967.

For the Council

The President Ch . HEGER

ANNEX A

CCT heading Description of goods No

ex 07.06 B Manioc, arrowroot, salep and other similar roots and tubers with high starch content, fresh or dried , whole or sliced, excluding sweet potatoes ex 11.01 Cereal flours : ex C. Barley flour or oat flour E. Other ex 11.02 Cereal groats and cereal meal ; other worked cereal grains (for example, rolled, flaked, polished, pearled or kibbled, but not further prepared), except husked, glazed, polished or broken rice; germ of cereals, whole, rolled, flaked or ground : ex A. Cereal groats and cereal meal ; other worked cereal grains (for example, rolled, flaked, polished , pearled or kibbled, but not further prepared) ex I. Of wheat, except wheat groats and meal II. Of rye III. Of other cereals : ( a) Rolled or flaked barley and oats ex (b ) Other, except rice groats and meal B. Germ of cereals, whole, rolled, flaked or ground .

44 Official Journal of the European Communities

CCT heading Description of goods No

11.06 Flour, and meal of sago and of manioc, arrowroot, salep and other roots and tubers falling within heading No 07.06: A. Of manioc B. Other

11.07 Malt, roasted or not

ex 11.08 A Starches : I. Maize starch II . Potato starch (a) For the manufacture of dextrins, glues, glazings or dressings1 IV. Other

11.09 Gluten and gluten flour, roasted or not

17.02 B Glucose and glucose syrup : II . Other

ex 23.02 Bran, sharps and other residues derived from the sifting, milling or working of cereals : ex A. With a starch content exceeding 7% by weight ex B. Other

ex 23.07 Sweetened forage; other preparations of a kind used in animal feeding : ex B. Containing products to which this Regulation or Regulation No 16/64/EEC applies, except preparations and feeding-stuffs containing 50% or more by weight of products falling within headings Nos 04.01 , 04.02, 04.03 , 04.04 and 17.02 A II

i Entry under this sub-heading shall be subject to conditions to be laid down by the competent authorities .

ANNEX B

CCT. heading Description of goods No

ex 17.02 Other sugars; sugar syrups; artificial honey (whether or not mixed with natural honey); caramel: ex B. Glucose and glucose syrup : I. Containing, in the dry state, 99% or more by weight of the pure product

ex 17.04 Sugar confectionery, not containing cocoa : B. Chewing gum C. Other

19.01 Malt extract

Official Journal of the European Communities 45

CCT heading Description of goods No

19.02 Preparations of flour, starch or malt extract, of a kind used as infant food or for dietetic or culinary purposes, containing less than 50% by weight of cocoa

19.03 Macaroni, spaghetti and similar products

19.04 Tapioca and sago ; tapioca and sago substitutes obtained from po­ tato or other starches

19.05 Prepared foods obtained by the swelling or roasting of cereals or cereal products (puffed rice, corn flakes and similar products)

19.06 Communion wafers, empty cachets of a kind suitable for pharma­ ceutical use, sealing wafers, rice paper and similar products

19.07 Bread, ships' biscuits and other ordinary bakers' wares, not con­ taining sugar, honey, eggs, fats, cheese or fruit

19.08 Pastry, biscuits, cakes and other fine bakers' wares, whether or not containing cocoa in any proportion

21.01 Roasted chicory and other roasted coffee substitutes ; extracts, essences and concentrates thereof : ex A. Roasted coffee substitutes other than roasted chicory ex B. Extracts, essences and concentrates of roasted coffee sub-, stitutes other than roasted chicory

ex 21.05 Soups and broths, dehydrated

ex 21.07 Food preparations not elsewhere specified or included, containing cereals or preparations of cereals

22.03 Beer made from malt

35.05 Dextrins and dextrin glues ; soluble or roasted starches ; starch glues

38.12 A I Prepared glazings and prepared dressings with a basis of amylaceous substances