----

            COMMISSION REGULATION (EC) No 493/2006

of 27 March 2006         

laying down transitional measures within the framework of the reform of the common organisation of the markets in the sugar sector, and amending Regulations (EC) No 1265/2001 and (EC) No 314/2002

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 318/2006 of 20 February 2006 on the common organisation of the markets in the sugar sector (1), and in particular Article 44 thereof,

Having regard to Council Regulation (EC) No 1260/2001 of 19 June 2001 on the common organisation of the markets in the sugar sector (2), and in particular Articles 7(5), 15(8) and 16(5) thereof,

Whereas:

HAS ADOPTED THIS REGULATION:

CHAPTER I

TRANSITIONAL MEASURES

Article 1

Carrying forward of quotas

1.   Notwithstanding Article 14 of Regulation (EC) No 1260/2001, and within the limits laid down in the second subparagraph of Article 2(1) of Regulation (EEC) No 65/82, each undertaking may decide by 31 October 2006 on the quantity of C sugar production attributable to the 2005/2006 marketing year that it is to carry forward to the 2006/2007 marketing year, or amend its decision made before the entry into force of this Regulation to carry forward a certain quantity.

2.   Undertakings which make a decision to carry forward as referred to in paragraph 1, or which amend their decision, shall:

3.   Regulation (EEC) No 65/82 shall apply to B and C sugar from the 2005/2006 marketing year carried forward to the 2006/2007 marketing year.

4.   Member States shall inform the Commission, not later than 30 November 2006 and for each undertaking, of the quantity of B and C sugar carried forward from the 2005/2006 marketing year to the 2006/2007 marketing year.

Article 2

C sugar

1.   Without prejudice to decisions to carry forward taken in accordance with Article 1 of this Regulation, and to exports under licences issued in accordance with Article 4 of Commission Regulation (EC) No 1464/95 (13), C sugar from the 2005/2006 marketing year shall be considered to be non-quota sugar, as referred to in Article 12 of Regulation (EC) No 318/2006, produced in respect of the 2006/2007 marketing year.

2.   Notwithstanding Article 15 of Regulation (EC) No 318/2006, the levy shall not be charged on the quantities of C sugar referred to in paragraph 1 of this Article which are used in animal feed under the same control conditions as those laid down by the Commission for the industrial sugar referred to in Article 13(2) of Regulation (EC) No 318/2006.

3.   Regulation (EEC) No 2670/81 shall apply to C sugar production in the 2005/2006 marketing year, with the exception of the sugar carried forward or considered to be non-quota sugar in the 2006/2007 marketing year as referred to in paragraph 1 of this Article.

The minimum price for A sugar for the 2005/2006 marketing year shall apply to the beet equivalent to the quantity of sugar referred to in Article 3 of Regulation (EEC) No 2670/81.

Article 3

Preventive withdrawal

1.   For each undertaking, the share of the production of sugar, isoglucose or inulin syrup in the 2006/2007 marketing year which is produced under the quotas listed in Annex III to Regulation (EC) No 318/2006 and which exceeds the threshold established in accordance with paragraph 2 of this Article shall be considered withdrawn within the meaning of Article 19 of that Regulation or, at the request of the undertaking concerned before 31 January 2007, shall be considered fully or partially to be produced in excess of the quota within the meaning of Article 12 of that Regulation.

2.   For each undertaking, the threshold referred to in paragraph 1 shall be established by multiplying the quota allocated to the undertaking under Article 7(2) of Regulation (EC) No 318/2006 by the sum of the following coefficients:

However, where the sum of the coefficients exceeds 1,0000, the threshold shall be equal to the quota referred to in paragraph 1.

3.   The minimum price applicable to the quantity of beet equivalent to the sugar production withdrawn in accordance with paragraph 1 shall be that of the 2007/2008 marketing year.

4.   The obligation referred to in Article 6(5) of Regulation (EC) No 318/2006 shall concern the quantity of beet equivalent to the threshold referred to in paragraph 1 of this Article.

5.   Before 1 July 2006, Member States shall send the Commission an estimate of the quantities of sugar, isoglucose and inulin syrup to be considered withdrawn under this Article.

Article 4

Aid for sugar produced in the French overseas departments

1.   Aid for disposal and additional aid shall be granted to sugar produced under quota in the 2005/2006 marketing year in the French overseas departments, refined and/or transported between 1 July 2006 and 31 October 2006.

They shall apply to the quantities of sugar concerned, in replacement for the aids referred to in Articles 7(4) and 38(3) and (4) of Regulation (EC) No 1260/2001.

The aid for disposal shall concern:

2.   Regulations (EC) No 1554/2001 and (EC) No 1646/2001 shall apply to the sugar produced under quota in the 2005/2006 marketing year for the aid for disposal and the additional aid referred to in paragraph 1 of this Article.

3.   For the purposes of this Article, ‘refinery’ means a production unit whose sole activity consists in refining either raw sugar or syrups produced prior to the crystallising stage.

Article 5

Refining aid

1.   Adjustment aid shall be granted to the industry refining preferential raw cane sugar imported under Protocol 3 on ACP sugar attached to Annex IV to the ACP-EC Partnership Agreement signed in Cotonou on 23 June 2000 (14), and refined in the 2005/2006 delivery period between 1 July 2006 and 30 September 2006.

This aid shall be paid to refineries. It shall apply to the quantities referred to in Regulation (EC) No 180/2006 and not refined by 1 July 2006, as a replacement for the aid referred to in Article 38(1), (2) and (4) of Regulation (EC) No 1260/2001.

2.   Regulation (EC) No 1646/2001 shall apply to the preferential sugar refined in the 2005/2006 delivery period.

3.   Except in cases of force majeure, where the presumed maximum supply needs for a Member State as laid down in Article 39(2) of Regulation (EC) No 1260/2001 are exceeded in the course of the 2005/2006 marketing year, a quantity corresponding to the excess shall be subject to the payment of an amount corresponding to the full rate of import duty in force for the marketing year in question, increased by EUR 115,40 per tonne of white sugar equivalent.

4.   Regulation (EC) No 1460/2003 shall apply to control and, where appropriate, the consequences of exceeding the presumed maximum supply needs for the refining industries as referred to in paragraph 3 of this Article.

5.   For the purposes of this Article, ‘refinery’ means a production unit whose sole activity consists in refining either raw sugar or syrups produced prior to the crystallising stage.

Article 6

Levies

Regulation (EC) No 314/2002, as amended by this Regulation, shall apply to the fixing and collecting of production levies in the 2005/2006 marketing year, including the corrections relating to the calculation of the levies in the 2001/2002, 2002/2003, 2003/2004 and 2004/2005 marketing years as laid down in Article 15(2) of Regulation (EC) No 1260/2001.

Article 7

Production refunds

Articles 1, 2, 3, 11, 14, 15, 17 18, 19, 20 and 21 of Regulation (EC) No 1265/2001, as amended by this Regulation, shall apply to the refund certificates issued until 30 June 2006.

Article 8

Notifications

Regulation (EC) No 779/96 shall apply until 30 September 2006.

Article 9

Transitional quotas

1.   For the 2006/2007 marketing year, a transitional sugar quota of 497 780 tonnes shall be allocated to the Member States in accordance with the breakdown in part A of Annex II.

The quota referred to in the first subparagraph shall be reserved for sugar produced from beet sown before 1 January 2006. The minimum price of this beet, within the meaning of Article 5 of Regulation (EC) No 318/2006, shall be EUR 47,67 per tonne.

2.   For the 2006/2007 marketing year, a transitional isoglucose quota of 126 921 tonnes of dry matter shall be allocated to the Member States in accordance with the breakdown in part B of Annex II.

3.   For the 2006/2007 marketing year, a transitional inulin syrup quota of 80 180 tonnes of dry matter, expressed as white sugar/isoglucose equivalent, shall be allocated to the Member States in accordance with the breakdown in part C of Annex II.

4.   The transitional quotas laid down in paragraphs 1, 2 and 3:

5.   The Member States shall allocate transitional quotas, on the basis of objective criteria and in a manner ensuring equal treatment of producers and to avoid market and competition distortion, to undertakings producing sugar, isoglucose and inulin syrup established in their territory and approved in accordance with Article 17 of Regulation (EC) No 318/2006.

6.   The Member States shall introduce a control system and shall take all the necessary steps to verify the production of the products referred to in paragraphs 1, 2 and 3, and in particular that the sugar corresponds to sugar beet sown before 1 January 2006.

The Member States shall communicate to the Commission, not later than 15 July 2006, the breakdown by undertaking of the transitional quotas allocated under this Article.

The Member States shall notify the Commission, not later than 31 December 2006, of the control measures taken and the results thereof.

Article 10

Traditional refining requirements

For the 2006/2007 marketing year, the traditional refining requirements referred to in Article 29(1) of Regulation (EC) No 318/2006 shall be increased by the quantities laid down in Annex III.

CHAPTER II

AMENDMENTS OF REGULATIONS (EC) NO 1265/2001 AND (EC) NO 314/2002

Article 11

Amendment of Regulation (EC) No 1265/2001

Regulation (EC) No 1265/2001 is hereby amended as follows:

Article 12

Amendment of Regulation (EC) No 314/2002

Regulation (EC) No 314/2002 is hereby amended as follows:

CHAPTER III

FINAL PROVISION

Article 13

Entry into force

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 July 2006. However, Articles 1, 3, 11(3) and 12(1) shall apply from the date of its entry into force.

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

Done at Brussels, 27 March 2006.

For the Commission

Mariann FISCHER BOEL            

Member of the Commission

----

(1)OJ L 58, 28.2.2006, p. 1.

(2)OJ L 178, 30.6.2001, p. 1. Regulation as last amended by Commission Regulation (EC) No 39/2004 (OJ L 6, 10.1.2004, p. 16).

(3)OJ L 9, 14.1.1982, p. 14. Regulation as last amended by Regulation (EC) No 2223/2000 (OJ L 253, 7.10.2000, p. 15).

(4)OJ L 262, 16.9.1981, p. 14. Regulation as last amended by Regulation (EC) No 95/2002 (OJ L 17, 19.1.2002, p. 37).

(5)OJ L 58, 28.2.2006, p. 42.

(6)OJ L 29, 2.2.2006, p. 28.

(7)OJ L 205, 31.7.2001, p. 18. Regulation as amended by Regulation (EC) No 1442/2002 (OJ L 212, 8.8.2002, p. 5).

(8)OJ L 219, 14.8.2001, p. 14. Regulation as amended by Regulation (EC) No 1164/2002 (OJ L 170, 29.6.2002, p. 48).

(9)OJ L 208, 19.8.2003, p. 12.

(10)OJ L 50, 21.2.2002, p. 40. Regulation as last amended by Regulation (EC) No 1665/2005 (OJ L 268, 13.10.2005, p. 3).

(11)OJ L 106, 30.4.1996, p. 9. Regulation as last amended by Regulation (EC) No 1159/2003 (OJ L 162, 1.7.2003, p. 25).

(12)OJ L 178, 30.6.2001, p. 63.

(13)OJ L 144, 28.6.1995, p. 14. Regulation as last amended by Regulation (EC) No 96/2004 (OJ L 15, 22.1.2004, p. 3).

(14)OJ L 317, 15.12.2000, p. 3.

----

ANNEX I

Coefficients referred to in Article 3(2)(a)

----

ANNEX II

Part A:   Transitional quotas for sugar referred to in Article 9(1)

Part B:   Transitional quotas for isoglucose referred to in Article 9(2)

Part C:   Transitional quotas for inulin syrup referred to in Article 9(3)

----

ANNEX III

Transitional traditional refining requirements referred to in Article 10

----