Voluntary Report - public distribution

**Date:** 2/18/2004

**GAIN Report Number:** E24032

E24032

**European Union**

**Sugar**

**EU extends ban on duty free Serbian sugar imports**

**2004**

**Approved by:**

![](media/image1.wmf)Stan Cohen

U.S. Mission to the EU, Brussels

**Prepared by:**

Peter Talks

**Report Highlights:**

As expected, the European Commission extended the suspension for sugar
exports from Serbia to the EU for a further six months, arguing that
Serbian controls on proof of origin of sugar continue to be inadequate.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Brussels USEU \[BE2\]

\[E2\]

**Suspension of Serbian zero duty access for sugar to EU markets
extended**

The European Commission have published a Regulation suspending for a
further six months the right of Serbian operators to export (Serbian
origin) sugar to the EU free of duties, as predicted in GAIN Report
E24014 (see link below).

According to reports, investigations by OLAF (the European Union's
anti-fraud branch) found systematic attempts to provide fake
documentation to pass third country sugar off as of being of Serbian
origin, thus being able to be exported to the EU duty free. The
[Commission Regulation extending the current
ban](http://europa.eu.int/cgi-bin/eur-lex/udl.pl?REQUEST=Seek-Deliver&LANGUAGE=en&SERVICE=eurlex&COLLECTION=oj&DOCID=2004l036p00040005)
maintains that Serbian authorities are still unable to provide
sufficient proof of evidence of a product's origin.

**Background**

The countries of the Western Balkans (Serbia and Montenegro, Bosnia
Herzegovina, Croatia, Macedonia and Albania) benefit from zero duty
unlimited access to the EU for domestically produced goods with only a
couple of minor exceptions. However, Serbian access to zero duty sugar
tariffs to the EU was suspended last year on, according to the European
Commission, grounds of fraud. Traces of cane sugar were reported to have
been found in Serbian origin sugar exported to the EU. Serbia does grow
not sugar cane.

The current six month suspension is due to expire in February, however,

In a formal '[Notice to
Importers](http://europa.eu.int/cgi-bin/eur-lex/udl.pl?REQUEST=Seek-Deliver&LANGUAGE=en&SERVICE=eurlex&COLLECTION=oj&DOCID=2004c014p00020002)'
published in the EU's Official Journal, the European Commission in
January 2004, it warns importers that Serbian controls to verify the
origins of Serbian sugar are still considered inadequate to prevent
fraud.

**Visit our website:** our website
**[www.useu.be/agri/usda.html]{.underline}** provides a broad range of
useful information on EU import rules and agricultural policy and allows
easy access to USEU reports, trade information and other practical
information.

E-mail: <AgUSEUBrussels@usda.gov>

**Related reports from USEU Brussels:**

  --------------- ------------------------------------------------------------ ------------------
  **Report No.**  **Title**                                                    **Date Released**

  E24014          EU Accession: \'Excess\' sugar stocks to be taxed            1/23/2004

  E23237          ACP Countries Weigh in on EU Sugar Reform                    12/10/2003

  E23220          LDC's Prefer Fixed Quotas                                    11/20/2003

  E23194          Sugar semi-annual                                            10/15/2003

  E23181          EU Commission Proposes Reforms for Sugar, Cotton, Olive Oil  9/24/2003
                  and Tobacco                                                  

  E23066          [EU suspends Serbia\'s tariff free access for                5/2/2003
                  sugar](http://intranetapps/GainFiles/200305/145885488.pdf)   
  --------------- ------------------------------------------------------------ ------------------

These reports can be accessed through our website
[www.useu.be/agri](http://www.useu.be/agri) or through the FAS website
<http://www.fas.usda.gov/scriptsw/attacherep/default.asp>.