Screening Exercise Serbia EU Cereals & Rice Sectors European Commission Directorate General for Agriculture and Rural Development Arable Crops Unit (AGRI-C4) Brussels, 19 March 2014
CONTENT Public Intervention Import and export licences Import duties Export refunds Tariff Rate Quotas (TRQs) 2
Guaranteed price and public intervention stocks Safety net Open from 1 November until 31 May Buying price for soft wheat: Automatic :101,31 /t up to 3 millions tonnes Over 3 millions tonnes : tendering procedure sets the price 3
Guaranteed price and public intervention stocks For durum wheat, barley, maize and rice: If needed : activation of the safety net through tendering procedure 4
Guaranteed price and public intervention stocks Public intervention stocks are surplus stocks, not security stocks Quantities have evolved with time Economic context and sustainable policy instruments: minimising market disturbances buy today = sell tomorrow 5
Definition and approval of storage places Prior approval of storage places by MS Requirement for prior approval Minimum storage capacity (5 000 tonnes for cereals) Technical equipement Connection Notification by MS Publication by Commission
Eligility criteria for buying in public intervention stocks Moisture content Impureties Specific weight Protein content Methods of analysis : EN, ISO or EN ISO
Selling public intervention stocks National notice to tender EU decision (Management committee) fixing minimum selling price
End of MY Intervention Stocks and Cereal Production (EU evolutionary) 9
Main Regulations on intervention - Council and EP Regulation (EC) 1308/2013 and Council Regulation (EC) 1370/2013 - Commission Regulation (EC) 1272/2009 horizontal rules - Commission Regulation (EC) 1130/2009 as regards the use and destination of products from intervention - Commission Regulation (EC) 720/2008 as regards storage and movments of products bought in intervention 10
Import and export licences A basic requirement Essential for market monitoring Delivered by Member State authorities Communicated daily to the Commission Cannot be refused (refunds can be refused, not licences) Securities (in case of non-use of the licences requested) 11
Import and export licences Validity period and security - Export with refund or zero : current month + 4 months 20 /t for most products - Export with dash : 60 days, 5 /t Import : 45 days, 1 /t outside TRQs 12
Main Regulations on licences - Council Regulation (EC) 260/2009 on common rules for imports - Commission Regulation (EC) 376/2008 horizontal rules - Commission Regulation (EC) 1342/2003 on cereals and rice specific rules 13
Cereals Import duties Consolidated in our WTO schedule Fixed duties for low and medium quality soft wheat, oats, barley, triticale, millet and buckwheat Variable duties for durum wheat, high quality soft wheat, maize, sorghum and rye are calculated against of 155 % of intervention price (+a ceiling) Within tariff-rate quota (TRQ)
15
Main Regulations on cereals import duties - Commission Regulation (EC) 642/2010 on import duties in the cereals sector 16
Rice Import duties Paddy : 211 /t Husked : 30 /t-42.5 /t-65 /t Milled and semi-milled : 145 e/t- 175 /t Broken : 65 /t
Rice Trade agreements EBA (LDC) : imports full liberalisation as of 1 September 2009 EPA (ACP/Cariforum): imports full liberalisation as of 1 September 2010 Basmati : 9 varieties of husked Basmati rice originating in India or Pakistan can be imported at 0 duty
Export refunds The tool exists with following technicalities Difference between world market price and EU export price (FOB-FOB, except oats) Set via tenders for grain Set via standing system (published refunds) for processed products However => 19
Export refunds for cereals expenditure in mln ECU/EUR 3500 3000 2500 2000 1500 1000 500 0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 20
Export refunds for rice No refunds have been granted since 2004 21
Main Regulations on refunds - Commission Regulation (EC) 612/2009 : common horizontal rules - Commission Regulation (EC) 491/2008 on the production refunds in the cereals sector 22
Tariff Rate Quotas A tariff quota is A limited quantity of a particular product which, during a particular period may be imported at less than normal customs duty of a specified origin or not (erga omnes)
Tariff quota management FCFS : first-come first-serve Licence-based
Cereals Main Tariff Rate Quotas Reduced Tariff Rate Quota Quantity % use (tonnes) 2013 Soft wheat low and medium quality 3112030 37,8 Sub-quota I (USA) 572000 71,8 Sub quota II (Canada) 38853 78,0 Sub quota III (Other countries) 2378387 29,8 Sub quota IV (Erga omnes) 122790 21,2 Barley 307105 11,7 Maize 277988 100,0 25
Rice Main Tariff Rate Quotas Reduced Tariff Rate Quota Quantity % use (tonnes) 2013 Paddy 7 100,0 Husked 23.489 0,7 Milled or semi-milled 179.707 59,6 Broken 220.206 62,1 All types of rice (milled basis) 63.578 0,0 26
Main Regulations on TRQs - Commission Regulation (EC) 1301/2006 on common rules - Commission Regulation (EC) 1067/2008 TRQ soft wheat of low and medium quality - Commission Regulation (EC) 2305/2003 TRQ barley - Commission Regulation (EC) 969/2006 TRQ for maize - Commission Regulation (EC) 1064/2009 TRQ malting barley - Commission Regulation (EC) 1273/2011 rice and broken rice - Commission Regulation (EC) 480/2012 broken rice 27
For more information, please consult the web-site: http://ec.europa.eu/agriculture/markets/cereals Thank you for your attention!