Commission Regulation (EEC) No 1068/93 of 30 April 1993 on detailed rules for determining and applying the agricultural conversion rates

• Published date: 01 May 1993
• Subject Matter: Monetary measures in the field of agriculture
• Official Gazette Publication: Official Journal of the European Communities, L 108, 1 May 1993

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31993R1068

Commission Regulation (EEC) No 1068/93 of 30 April 1993 on detailed rules for determining and applying the agricultural conversion rates

Official Journal L 108 , 01/05/1993 P. 0106 - 0113
Finnish special edition: Chapter 3 Volume 49 P. 0144
Swedish special edition: Chapter 3 Volume 49 P. 0144

COMMISSION REGULATION (EEC) No 1068/93 of 30 April 1993 on detailed rules for determining and applying the agricultural conversion rates

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,

Having regard to Council Regulation (EEC) No 3813/92 of 28 December 1992 on the value of the unit of account and the conversion rates to be applied for the purposes of the common agricultural policy (1), and in particular point (d) of Article 1 and

Articles 3 (3), 4 (2), 5 (3), 6 (2) and 12 thereof,

Whereas it has been found that certain aspects of Commission Regulation (EEC) No 3819/92 of 28 December 1992 on detailed rules for determining and applying the agricultural conversion rates (2) must be expanded and made more explicit; whereas, in order to facilitate implementation of the agrimonetary arrangements, that Regulation should be repealed and the relevant provisions should be amended and expanded and included in a single Regulation;

Whereas the representative market rates defined in Article 1 of Regulation (EEC) No 3813/92 are used to convert amounts expressed in the national currencies of third countries and form the basis for fixing the agricultural conversion rates for Member States' currencies; whereas it is necessary to define the rules for their calculation in the case of floating currencies and in particular in respect of third countries' currencies whose value in ecus is not published in the Official Journal of the European Communities;

Whereas, in order to provide better information to traders and to avoid the risks of market distortion, the representative market rates for floating currencies should be adjusted on fixed dates immediately following the end of each basic reference period; whereas, however, in the event of major currency fluctuations the representative market rates of currencies fluctuating outside certain limits need to be established quickly on the basis of a brief reference period;

Whereas, in order to guarantee a uniform approach throughout the Community and to simplify administration of trade arrangements, the rates fixed by Commission Regulation (EEC) No 1766/85 of 27 June 1985 on the rates of exchange to be used in the determination of customs value (3), as amended by Regulation (EEC) No 593/91 (4), should be used by Member States to convert amounts expressed in third countries' currencies directly into their own national currency;

Whereas the agricultural conversion rate should be applicable as quickly as possible after the reference period on the basis of which it is calculated in order to avoid risks of market distortion or commercially unjustified profit-taking; whereas the agricultural conversion rate applicable at the beginning of a month should be adjusted in order to take account of the development of the representative market rate in the event of major currency fluctuations;

Whereas the order of adjustments to agricultural conversion rates should be indicated if they occur simultaneously, except as part of a currency realignment; whereas, in accordance with Article 4 (3) of Regulation (EEC) No 3813/92, priority should be accorded to the adjustment of the agricultural conversion rate referred to in paragraph 1 of that Article and then, if relevant, to that referred to in paragraph 3 of that Article, taking account of the basic reference period; whereas the same priority shall then apply taking account of the result thus obtained and of the derogation referred to in Article 2 (2);

Whereas data for the world market must be established in ecus at frequent intervals and with a high degree of accuracy; whereas in respect of those data expressed in the national currencies of Member States a special agricultural conversion rate equal to the representative market rate should be used;

Whereas in the event of a currency realignment the reference period used to establish the new agricultural conversion rates for floating currencies must be as brief as possible in order to prevent speculative movements of products; whereas, in order to alter agricultural conversion rates quickly, the Commission should fix the new rates for fixed currencies at the same time as those for floating currencies in accordance with the minimum dismantlements stipulated by Article 4 (2) of Regulation (EEC) No 3813/92; whereas, in order to achieve the objective in pursuit of which the correcting factor was introduced, changes in agricultural conversion rates caused by roundings-off in the calculation of the representative market rate for the fixed currencies which undergo the greatest revaluation should be avoided;

Whereas it is necessary to establish the operative events for the agricultural conversion rates applicable, in the absence of advance fixing, after the transitional measures laid down in Article 1 of Commission Regulation (EEC) No 3820/92 (5), without prejudice to any details or exemptions provided for in the rules for the sectors concerned on the basis of the criteria mentioned in Article 6 of Regulation (EEC) No 3813/92;

Whereas for all the prices or amounts involved in trading transactions the acceptance of the customs declaration represents a suitable operative event; whereas in the case of prices and amounts linked to those prices the commercial objective is attained in the case of buying or selling operations when the product is paid for or taken over and, in the case of withdrawal operations by producer groups, on the first day of the month concerned; whereas, in the case of aid paid for a given quantity of product and in particular where the aid is conditional on a specific use of that product such as its processing, preservation, packaging or consumption, the commercial objective is attained when the product is taken over by the relevant operator and, where relevant, when the particular use of that product is guaranteed; whereas, in the case of private storage aid, products are no longer available on the market from the first day for which the aid is granted;

Whereas, in the case of aid granted per hectare, the commercial objective is attained when the product is harvested, usually at the beginning of the marketing year; whereas, in the case of structural aid financed exclusively by the EAGGF Guarantee Section, an operative event similar to that laid down in Article 6 (3) of Regulation (EEC) No 3813/92 should be established;

Whereas, for amounts not linked to the market prices of agricultural products, the operative event can be established as a date to be determined on the basis of the period during which the operation occurs; whereas it should be stated that the operative event applicable for the recording of prices or offers on the market is to occur on the day on which the prices or offers themselves are applicable; whereas, in the case of advances and securities, the agricultural conversion rate must approximate to that applicable to the prices or amounts in question where this is known at the time the advances or securities are paid;

Whereas, pursuant to the second subparagraph of Article 6 (1) of Regulation (EEC) No 3813/92, it is necessary to establish a strict relationship between the request for advance fixing of the agricultural conversion rate and that of the amount concerned in ecus; whereas, to avoid the risk of speculation, it is necessary to restrict the validity of...