Council Regulation (EC) No 1785/2003 of 29 September 2003 on the common organisation of the market in rice
Modified by
Council Regulation (EC) No 247/2006of 30 January 2006laying down specific measures for agriculture in the outermost regions of the Union, 306R0247, February 14, 2006
Council Regulation (EC) No 1785/2003of 29 September 2003on the common organisation of the market in riceTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Articles 36 and the third subparagraph of 37(2) thereof,Having regard to the proposal from the Commission,Having regard to the opinion of the European ParliamentOpinion delivered on 5 June 2003 (not yet published in the Official Journal).,Having regard to the opinion of the European Economic and Social CommitteeOJ C 208, 3.9.2003, p. 72.,Having regard to the opinion of the Committee of the regionsOpinion delivered on 2 July 2003 (not yet published in the Official Journal).,Whereas:(1)The operation and development of the common market for agricultural products must be accompanied by the establishment of a common agricultural policy to include, in particular, a common organisation of agricultural markets which may take various forms depending on the product.(2)Council Regulation (EC) No 3072/95 of 22 December 1995 on the common organisation of the market in riceOJ L 329, 30.12.1995, p. 18. Regulation as last amended by Commission Regulation (EC) No 411/2002 (OJ L 62, 5.3.2002, p. 27). has been substantially amended several times. Since further amendments are to be made, in the interests of clarity that Regulation should be replaced. Regulation (EC) No 3072/95 should accordingly be repealed.(3)The European rice market is in serious unbalance. The volume of rice stored in public intervention is very large, equivalent to about a quarter of Community output, and is likely to increase in the long run. The imbalance has been caused by the combined effect of an increase in domestic output, which has stabilised in recent marketing years, the continuing growth of imports and by the restrictions on exports with refunds in accordance with the Agriculture Agreement. The present imbalance is to be exacerbated even further and probably to reach an unsustainable level, in the course of the years to come as a result of increasing imports from third countries due to the implementation of the EBA Agreement.(4)This problem must be solved by revising the common market organisation for rice, in such a way as to take control of output, improve the equilibrium and fluidity of the market and enhance the competitiveness of Community agriculture, while pursuing the other aims of Article 33 of the Treaty, including maintaining suitable income support for producers.(5)It appears that the most suitable solution is to decrease strongly the intervention price and to create, as a compensation an income payment per farm and a crop specific aid reflecting the role of rice production in traditional production areas. The latter two instruments are incorporated in Council Regulation (EC) No 1782/2003 of 29 September 2003 on establishing common rules for direct support schemes under the common agricultural policy and establishing support schemes for farmersSee page 1 of this Official Journal..(6)To prevent the system of intervention becoming an outlet in itself, the quantities bought in by the intervention agencies should be limited to 75000 tonnes per year and the intervention period should be limited to four months.(7)The creation of a single Community market for rice involves the introduction of a trading system at the external frontiers of the Community. A trading system complementing the intervention system and including import duties applying the rates of the Common Customs Tariff and export refunds should, in principle, stabilise the Community market. The trading system should be based on the undertakings accepted under the Uruguay Round of multilateral trade negotiations.(8)In order to monitor the volume of trade in rice with third countries, provision should be made for an import and export licence scheme with the lodging of a security to ensure that the transactions for which such licences are requested are effected.(9)For the most part, the customs duties applicable to agricultural products under the World Trade Organisation (WTO) agreements are laid down in the common customs tariff. However, for some rice products, the introduction of additional mechanisms makes it necessary to adopt derogations.(10)In order to prevent or counteract adverse effects on the Community market which could result from imports of certain agricultural products, imports of one or more of such products should be subject to payment of an additional import duty, if certain conditions are fulfilled.(11)It is appropriate, under certain conditions, to confer on the Commission the power to open and administer tariff quotas resulting from international agreements concluded in accordance with the Treaty or from other acts of the Council.(12)Provisions for granting a refund on exports to third countries, based on the difference between prices within the Community and on the world market, and falling within the limits set by the WTO Agreement on agricultureOJ L 336, 23.12.1994, p. 22., should serve to safeguard Community participation in international trade in rice. Such export refunds should be subject to limits in terms of quantity and value.(13)Compliance with the limits in terms of value should be ensured at the time when export refunds are fixed through the monitoring of payments under the rules relating to the European Agricultural Guidance and Guarantee Fund. Monitoring can be facilitated by the compulsory advance fixing of export refunds, while allowing the possibility, in the case of differentiated export refunds, of changing the specified destination within a geographical area to which a single export refund rate applies. In the case of a change of destination, the export refund applicable to the actual destination should be paid, with a ceiling of the amount applicable to the destination fixed in advance.(14)Ensuring compliance with the quantity limits requires the introduction of a reliable and effective system of monitoring. To that end, the granting of export refunds should be made subject to an export licence. Export refunds should be granted up to the limits available, depending on the particular situation of each product concerned. Exceptions to that rule can only be permitted in the case of processed products not listed in Annex I to the Treaty, to which volume limits do not apply, and in the case of food-aid operations which are exempt from any limitation. Provision should be made for derogating from strict compliance with management rules where exports benefiting from export refunds are not likely to exceed the quantity ceilings laid down.(15)To the extent necessary for its proper working, provision should be made for regulating or, when the situation on the market so requires, prohibiting the use of inward and outward processing arrangements.(16)The customs duty system makes it possible to dispense with all other protective measures at the external frontiers of the Community. The internal market and duty mechanism could, in exceptional circumstances, prove deficient. In such cases, in order not to leave the Community market without defence against disturbances that might ensue, the Community should be able to take all necessary measures without delay. All such measures should comply with the obligations arising from the WTO agreements.(17)Taking into account the influence of the world market price on the internal price, there should be provision for appropriate measures to be taken in order to stabilise the internal market.(18)The proper working of a single market based on common prices would be jeopardised by the granting of national aid. Therefore, the provisions of the Treaty governing State aid should apply to the products covered by this common market organisation.(19)In order to take account of the specific needs for supplies of the most remote regions of the Community and of the differences in prices of the products which can result from the costs of transport and of marketing of these products, it is advisable to make it possible for the Community to fix a subsidy for consignments from Member States being in one of the situations referred to in Article 23(2) of the Treaty, intended to be consumed in these regions and more particularly in the French overseas department of Réunion,(20)As the common market in rice is in continuous development, the Member States and the Commission should keep each other supplied with information relevant to these developments.(21)The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the CommissionOJ L 184, 17.7.1999, p. 23..(22)In view of the necessity to solve practical and specific problems, the Commission should be authorised to adopt necessary measures in cases of emergency.(23)Expenditure incurred by the Member States as a result of the obligations arising from the application of this Regulation should be financed by the Community in accordance with Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policyOJ L 160, 26.6.1999, p. 103..(24)The common organisation of the market in the rice sector should take proper and simultaneous account of the objectives set out in Articles 33 and 131 of the Treaty.(25)The change from the arrangements under Regulation (EC) No 3072/95 and Council Regulation (EC) No 3073/95 of 22 December 1995 determining the standard quality of riceOJ L 329, 30.12.1995, p. 33. to those provided for in this Regulation could give rise to difficulties, which are not dealt with in this Regulation. In order to deal with such difficulties, the Commission should be enabled to adopt transitional measures.(26)In order to prevent a serious disturbance of the market in paddy rice in the last months of the marketing year 2003/2004, it is necessary to limit the intake by the intervention agencies to a certain quantity fixed in advance.(27)Provision should be made for the application of the new common market organisation,HAS ADOPTED THIS REGULATION: