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"B COUNCIL REGULATION (EC) No 2038/1999
of 13 September 1999
on the common organisation of the markets in the sugar sector
(OJ L 252, 25.9.1999, p. 1)
Corrected by:
"C1 Corrigendum, OJ L 115, 16.5.2000, p. 22 (2038/1999)1999R2038 — EN — 25.09.1999 — 000.001 — 1
COUNCIL REGULATION (EC) No 2038/1999
of 13 September 1999
on the common organisation of the markets in the sugar sector
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in
particular Articles 36 and 37 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament (1),
Having regard to the opinion of the Economic and Social Committee (2),
Whereas:
(1) Council Regulation (EEC) No 1785/81 of 30 June 1981 on the
common organisation of the markets in the sugar sector (3) has been
substantially amended several times (4); in the interest of clarity and
rationality it should therefore be codified;
(2) the operation and development of the common market in agricultural
products must be accompanied by the establishment of a commonagricultural policy to include, in particular, a common organisation ofthe agricultural markets which may take various forms depending on
the product concerned; isoglucose and inulin syrup are direct
substitutes for liquid sugar obtained from sugar beet or sugar cane;therefore, the markets in sugar, isoglucose and inulin syrup are closely
linked; the situation in the Community in respect of sweeteners is
characterised by structural surpluses and any Community decisionrelating to one of these products inevitably has repercussions on theothers; it is therefore necessary to have an organisation common to the
sugar, isoglucose and inulin syrup sectors which takes appropriate
account of production features specific to the various sectors;
(3) to ensure that the necessary guarantees in respect of employment and
standards of living are maintained for Community growers of sugar
beet and sugar cane, provision should be made for measures tostabilise the market in sugar and for this purpose there should be fixed
annually a target price for white sugar and, for the areas having no
deficit, an intervention price for white sugar, as well as an interventionprice for raw sugar, and, for each of the deficit areas, a derivedintervention price for white sugar and, should the need arise, for raw
sugar; the above objective could be attained by making provision for
buying-in by intervention agencies at the intervention prices; more-over, a compensation system for storage costs for sugar produced bothfrom raw materials of Community origin, including molasses, and
preferential sugar could serve the same purpose; these price guarantees
given for sugar also benefit sugar syrups, isoglucose and inulin syrup,the prices of which are based on those of sugar;
(4) in order not to interfere with the prices referred to above, intervention
agencies may sell sugar only at a price which is higher than theintervention price unless it is to be exported either in the natural state
or after processing or is to be used for animal feeding; this rules
prevents the disposal of sugar to charitable organisations for use forhuman consumption in the Community; provision should therefore bemade for such a possibility in the case of individual emergency aid
operations assuring the availability of supplies and thus representing at
the same time a humanitarian operation; such operations are effectiveonly it rapidly implemented; provision should therefore be made for
the most appropriate provedure to be used in such instances;
(5) it is necesseary that these regulatory measures should provide
guarantees which are fair both to manufacturers and to producers of
the basic products; it is therefore appropriate to fix for beet, in addition
to a basic price, minimum prices for A beet intended for processing!B
(1) OJ C 219, 30.7.1999
(2) OJ C 138, 18.5.1999, p. 18.
(3) OJ L 177, 1.7.1981, p. 4. Regulation as last amended by Commission Regulation
(EC) No 1148/98 (OJ L 159, 3.6.1998, p. 38).
(4) See Annex III, Part B.1999R2038 — EN — 25.09.1999 — 000.001 — 2
into A sugar and a minimum price for B beet intended for processing
into B sugar which must be observed when sugar manufacturers buybeet; it is also appropriate to provide, in the interests of ensuring a fairbalance of rights and duties between agricultural manufacturers and
producers, the instruments necessary to this end and, in particular, to
establish Community outline provisions governing the contractualrelations between buyers and sellers of beet and to provide foradequate measures to achieve this object in respect of sugar cane;
(6) for the sugar beet sector, having regard to the implications, in
particular of a general nature, for the operation of the commonorganisation of the markets in sugar, application of Council Regulation
(EC) No 952/97 of 20 May 1997 on producer groups and associations
thereof (
1) should be postponed for the period during which the
production quota arrangements are applied;
(7) the creation of a Community market for sugar as for isoglucose and
inulin syrup implies the introduction of a common trading system at
the external frontiers of the Community; a trading system includingimport leveis and export refunds tends to stabilise the Communitymarket in preventing, in particular, price fluctuations on the world
market from affecting prices for these products ruling within the
Community; whereas, therefore, provision should be made for thecharging of a levy on imports from third countries and for the payment
of a refund on exports to such countries which, as regards sugar, would,
in either case, cover, with regard to the sugar, the difference betweenprices ruling insde and outside the Community when world marketprices are lower than the Community prices and, with regard to
isoglucose and inulin syrup, would ensure a certain measure of
protection for the Community industry which processes theseproducts;
(8) in addition to this trading system and 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 inwardprocessing arrangements:
(9) in order to ensure normal supplies to the Community as a whole or to
one of its areas, a system of minimum stock would be an effectivemeasure; it is also appropriate, in order to achieve this objective, to laydown provisions which would enable appropriate intervention
measures to be taken under certain conditions; it is possible that the
minimum stock system will not be sufficient to ensure supplies to oneor more regions if natural disasters strike the said regions; it istherefore desirable to allow undertakings established in those regions
to use to that end blocked carryover stocks for authorising them to
dispose of the sugar in question before the end of the compulstorystorage period;
(10) in the event of a shortage on the world market pushing up world market
prices to a level higher than that of the Community prices, or in theevent of difficulties in the normal supplies to the Community as awhole or to one of its areas, appropriate provisions should be laid
down in order to avoid in good time a situation where regional
surpluses are exported to third countries while an abnormal rise inCommunity prices makes it impossible to continue to guaranteesupplies to consumers at reasonable prices;
(11) it must be made possible for the competent authorities to keep a
constant watch on movements in trade with third countries in order toenable them to assess trends thereof and, where appropriate, to applysuch measures provided for in this Regulation as may prove necessary;
to this end, provision should be made for a system of import and export
licences, the issue of which is conditional upon the lodging of aguarantee assuring that the operation for which the licences is being
requested will be carried out;
(12) the customs duties system makes it possible to dispense with all other
protective measures at the external frontiers of the Community;however, the prices and customs duties machinery may in exceptional
circumstance prove defective; such cases, so as not to leave the
Community market without defence against disturbances which mayarise therefrom, the Community should be enabled swiftly to take all!B
(1) OJ L 142, 2.6.1997, p. 30. Regulation repealed by Regulation (EC) No 1257/1999,
(OJ L 160, 26.6.1999, p. 80).1999R2038 — EN — 25.09.1999 — 000.001 — 3
necessary measures; these measures must be in conformity with the
obligations arising from the Agreements resulting from the UruguayRound of multilateral trade negotiations, hereinafter referred to as‘GATT’; moreover, in order to avert problems of supply to the
Community market, the suspension of customs duties on certain sugar
products should be permitted;
(13) the GATT agreements were approved by Decision 94/800/EC (
1); the
agreement on agriculture (hereinafter referred to as ‘the Agreement’)provides, in particular, for the gradual reduction of the level of the
Community’s export support for agricultural products and in particular
for sugar under guarantee of production quotas; the Agreementprovides for the reduction of export support, in terms of both quantities
and appropriations, over a transitional period;
(14) the reasons which have hitherto led the Community to retain a
production quota system for sugar, isoglucose and inulin syrups remainvalid; however, changes have been made in that system to take accountof recent developments in production and to provide the Community
with the instruments necessary to ensure, in a fair yet efficient way,
that the procedures themselves meet in full the cost of disposing of thesurpluses of Community production over consumption; however, sucha system should apply for a limited period only and should be regarded
as transitional;
(15) the common organisation of the sugar sector markets has been based,
first, since the 1986/87 marketing year, on the principle of fullfinancial responsibility on the part of producers for the losses incurred
in each marketing year due to the disposal of that part of Community
production under quota which is surplus to the Community’s internalconsumption and, secondly, on a differentiation of the price anddisposal guarantees in line with the production quota allocated to each
undertaking; sugar production quotas are allocated to each undertaking
on the basis of objective production during a particular referenceperiod; however, with regard to mainland Portugal where no sugar beetwas grown at the time of accession, the Treaty of Accession allowed
for the possibility of allocating quotas to an undertaking without
reference to production figures, on condition that the undertaking wasin a position to start production immediately, i.e. that it had the
necessary technical capacity;
(16) since commitments to reduce export support are to be implemented
over a transitional period, the present basic sugar and isoglucosequantities and inulin syrup quotas should be maintained unchanged butwith provision made for the guarantees pertaining thereto to be
adjusted as appropriate to permit compliance with the commitments
made under the Agreement, while taking into account the fundamentalfactors affecting the situation of this sector in the Community; it isaccordingly desirable to maintain the sector’ s self-financing arrange-
ments and production quotas for a period corresponding to the
abovementioned transitional period, namely six marketing years;
(17) financial responsibility should be guaranteed by the producers’
contributions which take the form of a basic production levy charged
on all production of A and B sugar but which is limited to 2 % of the
intervention price for white sugar and a B levy which is charged on theproduction of B sugar but which is subject to a limit of 37,5 % of thatprice; isoglucose and inulin syrup producers under some conditions
pay a proportion of those contributions; because of the limits referred
to above, the objective of making sugar production self-financingcannot, under the abovementioned circumstances, be achieved inrespect of each marketing year; an additional levy should therefore be
charged for that purpose;
(18) in particular in the interests of equal treatment, the additional levy
should be calculated for each undertaking on the basis of its share inthe revenue generated by the production levies which it has paid in
respect of the marketing year in question; therefore, a coefficient
should be determined for the Community as a whole which represents,in respect of that marketing year, the ratio between the total lossrecorded and the total revenue generated by the production levies in
question; conditions should also be laid down under which beet and!B
(1) OJ L 336, 23.12.1994, p. 1.1999R2038 — EN — 25.09.1999 — 000.001 — 4
sugar cane sellers are to contribute to eliminating the uncovered part of
the loss for the marketing year concerned;
(19) the production quotas allocated to each sugar sector undertaking may,
in any marketing year, give rise, as a result of the relevantconsumption, production, importation, stock and carryover levels,and the average loss likely to be borne under the self-financing
scheme, to an export volume exceeding that set in the Agreement;
provision should therefore be made for adjustments over one or moremarketing years in the guarantees linked to quotas so that theCommunity’s commitments can be met;
(20) as the first step in implementing adjustments to the guarantees, the
difference recorded for a given marketing year between the
Community’s exportable volume and the amount set in the Agreement
should be apportioned between sugar, isoglucose and inulin syrupaccording to the percentages which the quotas of each represent in thetotal of the quotas set for these three products and for the Community;
(21) this initial breakdown by product should then be followed by a
breakdown between the Member States which adjusts the guarantees
linked to the quotas assigned to producing undertakings located in
each Member State in a way that does not affect the existing balance ofquotas and burden-sharing; to this end, a reduction coefficient shouldbe determined for each Member State in respect of the A and B
guarantees which is in line with the maximum contributions pertaining
to these guarantees; it should then be up to each Member Stateconcerned to make an allocation among undertakings which takes
account of the guarantees arising for each undertaking from its own
quotas;
(22) the common organisation of the market in sugar established a
compensation system for storage costs; whereas it is appropriate to
make it clear that sugar which formed the subject of the reduction ofguarantees under obligations arising from undertakings given in the
context of the Agreement may continue to be eligible for reimburse-
ment of storage costs under the said system;
(23) given the need to allow for a certain structural adjustment of the
processing industry and of beet and cane growing during the period inwhich these quotas are applied, provision should be made for a marginof manoeuvre allowing Member States to alter undertaking quotas by a
maximum of 10 %; in view of the particular situation of this sector in
Spain, Italy and the French overseas departments, this limit should notbe applied in those regions when restructuring plans are beingimplemented;
(24) since the production quotas allocated to undertakings constitute a
means of guaranteeing producers Community prices and an outlet for
their production, quota transfers should be made taking into
consideration the interests of all the parties concerned and in particularthose of sugar beet and sugar cane producers;
(25) in order to enable the outlets for sugar and isoglucose on the internal
market of the Community to be enlarged, it is further appropriate toafford the possibility of putting out of production, within the meaning
of the quota system and under conditions to be laid down, all sugar or
isoglucose intended for manufacture, in the Community, of productsother than foodstuffs;
(26) in the Declaration by the European Economic Community on supplies
to the sugar refining industry in Portugal annexed to the Final Act ofthe Treaty of Accession of Spain and Portugal, the Community stated
that it was prepared to make an overall examination of the refining
industry in the Community and in Portugal in particular; such anexamination was also applied to Finland;
(27) this examination has shown the need, in particular with the aim of
achieving a steadier and more even flow of supplies to refineriesthroughout the Community, to estimate clearly the expected maximum
traditional requirement of raw sugar for refining into white sugar in
each of the Member States concerned, namely Finland, France,Portugal and the United Kingdom, using objective reference data and
taking into account the quantities of sugar going for direct
consumption recorded for the 1994/95 marketing year; to achieve thisaim, the possibility should be opened to the refining industry, within!B1999R2038 — EN — 25.09.1999 — 000.001 — 5
the limit of its anticipated needs, of gaining access on certain terms to
all raw sugar originating in the Community, the ACP States and/or incertain other traditional suppliers to be specified, on the basis of aforward balance and in a particular order of priority, namely
Community sugar, preferential sugar covered by Protocol No 8
annexed to the Fourth ACP-EC Convention (
1), and sugar imported
from ACP States and/or other traditional suppliers; for raw sugarimported from the ACP States listed in Protocol No 8 and from India
other than preferential sugar in the strict sense, a special preferential
arrangement for access to the Community refining market should beintroduced;
(28) pursuant to Article 1 of the said Protocol and to Article 1 of the
Agreement between the European Economic Community and theRepublic of India on cane sugar (
2), the implementation of these
systems of preferential imports must be carried out within the
framework of the common organisation of the market in sugar;
(29) it is necessary to create the means for ensuring that raw cane sugar
imported under the said preferential systems can be refined under the
most equitable conditions of competition;
(30) refining is an important activity both in the sugar sector in general and
in the Community, and in particular in refineries for conversion of raw
sugar into white sugar; from a technical point of view, refiningproduces high-quality products from sugar cane that can meet marketrequirements; moreover, these refineries are located in areas of high
consumption; the port-related refining industry is accordingly, for the
Community, a valuable complement to the beet processing industry, inparticular in Finland, mainland Portugal, the United Kingdom andsouthern and western France;
(31) in a joint declaration on the Portuguese sugar market annexed to the
Final Act of the Fourth ACP- EC Convention, the ACP States and theCommunity agreed to continue, under the relevant provisions of the
Convention and in particular Article 168(2) thereof, the examination of
requests from the ACP States for increased preferential access to thePortuguese market for ACP sugar; examination of these requests,
which concern supplies to port refineries in the Community as a
whole, leads to the conclusion that special priority access should begiven to raw cane sugar originating in the ACP States party to ProtocolNo 8 and in India, under special agreements negotiated between the
Community and the countries referred to in Protocol No 8 and/or other
countries and on the basis of a Community estimate of requirementsafter utilisation for refining of all available raw cane and beet sugar inthe Community and preferential sugar;
(32) up to the 1994/95 marketing year, Community adjustment aid has been
granted for refining of preferential raw cane sugar and of raw sugarfrom cane and beet harvested in the Community; hitherto it has been
possible to adjust this aid for any given marketing year in line with the
storage levy set for that year and/or any change in the refining marginresulting from the prices set for the marketing year in question; in the
light of experience, this aid should continue; given the direct impact on
the refining margin of changes in the storage levy, it should be madecompulsory for the adjustment aid to be altered in line with that levy inthe case of refining of raw sugar covered by Community price
guarantees or imported from the ACP States as preferential sugar;
(33) the common organisation of the markets in the sugar sector must, at
the same time, take appropriate account of the objectives set out in
Articles 33 and 131 of the Treaty;
(34) certain transitional measures may prove necessary and the same need
may arise at each changeover from one marketing year to the next or
during the same marketing year; provision should therefore be made
for the possibility of adopting appropriate measures;
(35) in order to facilitate implementation of the provisions of this
Regulation, a procedure should be provided for establishing close
cooperation between Member States and the Commission within aManagement Committee for Sugar;!B
(1) OJ L 229, 17.8.1991, p. 3.
(2) OJ L 190, 22.7.1975, p. 36.1999R2038 — EN — 25.09.1999 — 000.001 — 6
(36) beet production in Italy, in view of its particular characteristics and the
dimensions of holdings, is facing, in the northern region, although lessand less so, and in the central region, difficulties in particularconcerning the application of modern production methods; for
structural reasons, these difficulties persist in the southern region,
which is, moreover, recognised as lagging behind in development andstructural adjustment; beet growing there is indispensable in order toregenerate soils with a particularly high level of clay and thus to avoid
a return to monoculture; Italy should therefore be authorised to grant,
on the one hand, in its northern and central regions national aid thedownward sliding scale of which shall be extended over five marketing
years, and to grant, on the other hand, in its southern region such aid
progressively reduced over six marketing years from the level grantedfor the 1994/95 marketing year;
(37) by virtue of Article 110 of the Act of Accession of the Kingdom of
Spain and the Portuguese Republic, Spain is authorized to grantnational adjustment aid to producers of A and B beet until 31
December 1995; in order to take account of certain difficulties which
still exist, it is appropriate to maintain the authorisation for national aidbeyond 31 December 1995 for a limited period and on a downwardsliding basis;
(38) the cane sugar production process in Spain is faced with specific
difficulties in its effort to maintain itself as compared with that of other
crops; whereas, in order to enable this limited production to bemaintained, a national aid of EUR 6 should be authorised per 100kilograms of white sugar obtained from cane sugar;
(39) Community membership of the International Sugar Agreement might
require special measures to allow the Community to implement the
obligations arising from such membership; for this purpose, provision
should be made for the appropriate measures to be adopted within theframework of this Regulation;
(40) pursuant to Articles 2 and 3 of Council Regulation (EEC) No 729/70
of 21 April 1970 on the financing of the common agriculturalpolicy (
1), the expenses incurred by the Member States in meeting
obligations arising from the application of this Regulation devolve
upon the Community,
HAS ADOPTED THIS REGULATION:
CHAPTER I
SCOPE AND DEFINITIONS
Article 1
1. The common organisation of the markets in the sugar sector established
by this Regulation shall cover the following products:
CN code Description
(a) 1701 Cane or beet sugar and chemically pure sucrose, in solid form
(b) 1212 91 Sugar beet
1212 92 00 Sugar cane
(c) 1703 Molasses resulting from the extraction or refining of sugar!B
(1) OJ L 94, 28.4.1970, p. 13. Regulation repealed by Regulation (EC) No 1258/1999,
(OJ L 160, 26.6.1999, p. 103).1999R2038 — EN — 25.09.1999 — 000.001 — 7
CN code Description
(d) 1702 20 Maple sugar and maple syrup
702 60 95
1702 90 99Other sugars in solid form and sugar syrups, not containing
added flavouring or colouring matter, but not includinglactose, glucose, maltodextrine and isoglucose
1702 90 60 Artificial honey, whether or not mixed with natural honey
1702 90 71 Caramel containing 50 % or more by weight of sucrose in the
dry matter
2106 90 59 Flavoured or coloured sugar syrups, other than isoglucose,
lactose, glucose and maltodextrine syrups
(e) 2303 20 Beet pulp, bagasse and other waste of sugar manufacture
(f) 1702 30 10
1702 40 10
1702 60 101702 90 30Isoglucose
(g) 2106 90 30 Flavoured or coloured isoglucose syrups
(h) 1702 60 80
1702 90 80Inulin syrup
2. For the purposes of this Regulation:
(a) ‘white sugars’ means sugars, not flavoured or coloured or containing any
other added substances, containing, in the dry state, 99,5 % or more byweight of sucrose, determined by the polarimetric method;
(b) ‘raw sugars’ means sugars, not flavoured or coloured or containing any
other added substances, containing, in the
"C1dry state, less than
99,5 % by weight of sucrose, 3determined by the polarimetric method;
(c) ‘isoglucose’ means the product obtained from glucose or its polymers
with a content by weight in the dry state of at least 10 % fructose;
(d) ‘inulin syrup’ means the immediate product obtained by hydrolysis of
inulin or oligofructoses, containing in the dry state at least 10 % fructosein free form or as sucrose;
(e) ‘A sugar’ and ‘A isoglucose’ mean any quantity of sugar or isoglucose the
production of which is attributable to a specific marketing year and whichis produced by the undertaking concerned within its A quota;
(f) ‘B sugar’ and ‘B isoglucose’ mean any quantity of sugar or isoglucose the
production of which is attributable to a specific marketing year and which
is produced by the undertaking concerned outside its A quota but within
the sum of its A and B quotas;
(g) ‘C sugar’ and ‘C isoglucose’ mean any quantity of sugar or isoglucose the
production of which is attributable to a specific marketing year and whichis produced either by the undertaking concerned outside the sum of its A
and B qutoas or by an undertaking which has no quota;
(h) ‘A beet’ means all beet processed into A sugar;
(i) ‘B beet’ means all beet processed into B sugar;(j) ‘A inulin syrup’ shall be inulin syrup expressed as sugar/isoglucose
equivalent the production of which is assigned to a specific marketing
year within the undertaking’ s A quota;
(k) ‘B inulin syrup’ shall be the inulin syrup expressed as sugar/isoglucose
equivalent the production of which is assigned to a specific marketing
year and thereby falls outside the A quota of the undertaking but does notexceed the sum of its A and B quotas;
(l) ‘C inulin syrup’ shall be inulin syrup expressed as sugar/isoglucose
equivalent the production of which is assigned to a specific marketing
year and which is either additional to the sum of the A and B quotas of
the undertaking in question or has been produced by an undertaking notprovided with quotas.!B1999R2038 — EN — 25.09.1999 — 000.001 — 8
CHAPTER II
PRICES
Article 2
1. The marketing year for all the products listed in Article 1 shall begin on 1
July and expire on 30 June of the following year.
2. A target price for white sugar shall be fixed each year. This price shall be
valid for unpacked white sugar of the standard quality to which the
intervention price applies, unpacked, ex-factory, loaded on to a means oftransport chosen by the purchaser.
3. The target price for white sugar shall be fixed each year at the same time
as the intervention price for white sugar in accordance with the procedure laiddown in Article 37(2) of the Treaty.
Article 3
1. For white sugar there shall be fixed each year:
(a) an intervention price for the non-deficit areas;
(b) a derived intervention price for each of the deficit areas.
2. An intervention price shall be fixed annually for raw sugar. This price
shall be calculated on the basis of the intervention price for white sugar takingaccount of flat-rate amounts for processing and yield.
Where it is necessary to market raw sugar produced in a deficit area, a derived
intervention price may be fixed for such sugar.
3. The intervention prices referred to in paragraphs 1 and 2 shall apply to
unpacked sugar, ex-factory, loaded on to a means of transport chosen by the
purchaser.
They shall be valid for white sugar and for raw sugar of a specified standard
quality.
4. The intervention price for white sugar shall be fixed before 1 August for
the marketing year beginning on 1 July of the following year, in accordance
with the procedure laid down in Article 37(2) of the Treaty.
In accordance with the same procedure the Council shall specify the standard
quality for which this price is valid.
5. The Council, acting by a qualified majority on a proposal from the
Commission, shall fix the intervention price for raw sugar and the derived
intervention prices each year at the same time as it fixes the intervention pricefor white sugar.
In accordance with the same procedure the Council shall specify the standard
quality for which the intervention price for raw sugar is valid.
Article 4
1. A basic price for beet shall be fixed each year. It shall be valid for a
specified delivery stage and a specified standard quality.
2. The basic price for beet referred to in paragraph 1 shall be fixed taking
account of the intervention price for white sugar and of fixed valuesrepresenting:
— the processing margin,— the yield,
— undertakings’ receipts from sales of molasses,
— where appropriate, the cost incurred in delivering beet to undertakings.3. The basic price for beet shall be fixed in accordance with the procedure
laid down in Article 37(2) of the Treaty at the same time as the interventionprice for white sugar.
In accordance with the same procedure the Council shall specify the delivery
stage and standard quality for beet.!B1999R2038 — EN — 25.09.1999 — 000.001 — 9
Article 5
1. There shall be fixed each year at the same time as the intervention price
for white sugar a minimum price for A beet and a minimum price for B beet.
These prices shall be valid for the same delivery stage and standard quality as
specified for the basic price for beet.
2. The minimum price for A beet shall be equal to 98 % of the basic price
for beet.
Subject to Article 33, the minimum price for B beet shall be equal to 68 % of
the basic price for beet.
3. For areas for which a derived intervention price for white sugar is fixed,
the minimum prices for A beet and B beet shall be increased by an amountequal to the difference between the derived intervention price for the area inquestion and the intervention price, such amount being adjusted by the
coefficient 1,30.
4. The Council, acting by a qualified majority on a proposal from the
Commission, shall fix the minimum prices for beet.
Article 6
1. Without prejudice to Article 39 and the provisions adopted pursuant to
Article 32, sugar manufacturers buying beet:
(a) suitable for processing into sugar,
and
(b) intended for processing into sugar,
shall be required to pay at least a minimum price adjusted by price increases
or reductions to allow for deviations from the standard quality.
2. The minimum price referred to in paragraph 1 shall correspond:(a) in the non-deficit areas to:
— the minimum price for A beet, in the case of beet to be processed into
A sugar,
— the minimum price for B beet, in the case of beet to be processed into
B sugar;
(b) in the deficit areas to:
— the minimum price for A beet adjusted in accordance with Article
5(3), in the case of beet to be processed into A sugar,
— the minimum price for B beet adjusted in accordance with Article
5(3), in the case of beet to be processed into B sugar.
3. Detailes rules for the application of this Article and the price increases
and reductions shall be adopted in accordance with the procedure laid down in
Article 48.
Article 7
1. Agreements within the trade and contracts concluded between buyers and
sellers of beet must conform to outline provisions, in particular as regards theconditions governing the purchase, delivery and acceptance of beet and thepayment for beet.
2. Conditions for purchasing sugar cane shall be governed by agreements
within the trade between Community sugar cane producers and Communitysugar manufacturers.
Conditions for purchasing the basic agricultural product for the manufacture
of inulin syrup shall be governed by interbranch agreements betweenCommunity growers of those basic products and inulin syrup producers.
3. The Council, acting by a qualified majority on a proposal from the
Commission, shall adopt general rules for the application of this Article, andparticularly the outline provisions referred to in paragraph 1.
4. If necessary, detailes rules for the application of paragraphs 1 and 2 shall
be adopted in accordance with the procedure laid down in Article 48.!B1999R2038 — EN — 25.09.1999 — 000.001 — 10
5. If there are no agreements within the trade, the Member State in question
may, within the framework of this Regulation, take the necessary measures toprotect the interests of the parties concerned.
This Member State shall inform the Commission without delay of the
measures taken pursuant to the first subparagraph.
6. Regulation (EC) No 952/97 shall not apply to sugar beet during the
period referred to in Article 26(1).
Article 8
1. A compensation system for storage costs, comprising flat-rate reim-
bursement to be financed by means of a levy, shall be provided for under the
conditions set out in this Article.
2. Storage costs in respect of:
— white sugar,— raw sugar,
— syrups obtained prior to the crystallising stage,
— syrups obtained by dissolving crystallised sugar,
manufactured from beet or cane harvested in the Community shall be
reimbursed at a flat rate by the Member States.
The Member States shall impose a levy on each sugar manufacturer, as
appropriate:
— per unit of weight of sugar produced,— per unit of weight of the syrups referred to in the first subparagraph
which are produced prior to the crystallising stage and marketed in theirnatural state.
The amount of the reimbursement shall be the same for the whole
Community. This rule of uniformity shall also apply in respect of the levy.
3. Paragraph 2 shall not apply to flavoured or coloured sugars falling within
CN code No 1701 or to flavoured or coloured syrups falling withinsubheading 2106 90 59 of the CN code.
4. The Council, acting by a qualified majority on a proposal from the
Commission, shall:
(a) adopt the general rules for the application of this Article;
(b) fix the reimbursement amount simultaneously with the derived inter-
vention prices.
5. The amount of the levy shall be fixed each year in accordance with the
procedure laid down in Article 48. The other detailed rules for the application
of this Article shall be adopted according to the same procedure.
Article 9
1. Throughout the marketing year the intervention agency designated by
each sugar-producing Member State shall be required, on conditions to bedetermined in accordance with paragraphs 5 and 6, to buy in any white and
raw sugar offered to it which has been manufactured from beet and cane
harvested in the Community in so far as there exist prior storage contractsbetween the offerors and such agency for the sugar in question.
Intervention agencies shall buy in at the intervention price or the derived
intervention price, as the case may be, valid for the area in which the sugar issituated at the time of purchase. If the quality of the sugar differs from the
standard quality for which the intervention price was fixed, then this price
shall be adjusted by means of increases or reductions.
2. It may be decided to grant premiums for sugar which is in one of the
situations referred to in Article 23(2) of the Treaty and which is rendered unfitfor human consumption.!B1999R2038 — EN — 25.09.1999 — 000.001 — 11
3. It may be decided to grant production refunds on the products listed in
Article 1(1)(a),(f) and (h) and on the syrups listed in Article 1(1)(d) wherethese fall within one of the situations contemplated by Article 23(2) of theTreaty and are used in the manufacture of certain products of the chemical
industry.
4. Appropriate measures shall be taken on the subject of the transport and
storage costs of sugars produced in the French overseas departments, in order
to permit these sugars to be marketed in the European Regions of the
Community.
To the extent necessary for the supply of refineries, provision may be made
that raw sugar manufactured from beet harvested in the Community shallqualify for the same measures as those referred to in the first subparagraph.
For the purposes of this Article, ‘refinery’ shall mean a production unit whose
sole activity consists in refining either raw sugar or syrups produced prior tothe crystallising stage.
5. The Council, acting by a qualified majority on a proposal from the
Commission, shall determine the general rules for the application ofparagraphs 1 to 4, which may derogate from Article 8 as regards theapplication of paragraph 4, and the chemical products referred to in paragraph
3.
6. Detailes rules for the application of this Article shall be adopted in
accordance wiht the procedure laid down in Article 48 and shall deal in
particular with:
— the minimum quality and quantity requirements on intervention,
— the price increases and reductions applicable on intervention,
— the procedures and conditions for taking-over by intervention agencies,
— the conditions for granting premiums and the amounts of such premiums,
— the conditions for granting production refunds and the amounts of such
refunds,
— the measures referred to in the second subparagraph of paragraph 4.
Article 10
1. In order to help guarantee supplies to the entire Community or to one of
its regions, the Council, acting by a qualified majority on a proposal from theCommission, shall decide upon the conditions under which special inter-vention measures may be taken where Article 22 is applied.
However, such measures may not result in Community sugar manufacturers
being obliged to sell sugar to intervention agencies.
2. The nature and application of such intervention measures shall be
decided upon in accordance with the procedure laid down in Article 48.
Article 11
1. Intervention agencies may sell sugar only at a price which is higher than
the intervention price.
It may, however, be decided that intervention agencies may sell sugar at a
price equal to or lower than the intervention price if the sugar is intended:
— for animal feeding, or
— for export, either in the natural state or after processing into the products
listed
"C1in Annex I to the Treaty 3or into the products listed in
Annex I to this Regulation.
2. It may however be decided, paragraph 1 notwithstanding, that inter-
vention agencies shall, with a view to its distribution free of charge, make
sugar in the natural state held by them available to charitable organisations —recognised by the Member State concerned or, if no recognisations, by theCommission — actively involved in individual emergency aid operations, at a
price which is lower than the intervention price or free of charge for human
consumption on the internal market of the Community.!B1999R2038 — EN — 25.09.1999 — 000.001 — 12
3. The Council, acting by a qualified majority on a proposal from the
Commission, shall adopt general rules for the sale of products which havebeen the subject of intervention measures.
4. Detailed rules for the application of this Article and the decision to make
sugar available as specified in paragraph 2 shall be adopted in accordance
with the procedure laid down in Article 48.
Article 12
1. In order to ensure normal supplies to the Community as a whole or to one
of its areas, there shall be a standing obligation to maintain, in the European
territory of the Community, minimum stocks:
(a) of beet sugar produced in the Community;(b) of cane sugar produced in the French overseas departments and of the
preferential sugar referred to in Article 40.
This minimum stock of the sugar referred to in (a) above shall, on a fixed
date, be equal to a percentage of the A quota of each sugar-producingundertaking or to the same percentage of its production of A sugar where this
is less than its A quota.
The percentage fixed may be reduced.The minimum stock of the sugar referred to in the first subparagraph under
(b) shall be equal to a percentage of the quantity of sugar in question refined
by an undertaking over a fixed period.
2. The Council, acting by a qualified majority on a proposal from the
Commission, shall adopt general rules for the application of this Article and,in particular, shall fix the date and the percentage referred to in the second
subparagraph of paragraph 1 and the percentage and the period referred to in
the fourth subparagraph of paragraph 1.
In accordance with the same procedure, an obligation equivalent to the
obligation to maintain a minimum stock may be laid down for the products
referred to in Article 1(1)(f) and (h).
3. Detailed rules for the application of this Article and, in particular, the
reduction of the percentage referred to in the third subparagraph of paragraph1 shall be adopted in accordance with the procedure laid down in Article 48.
CHAPTER III
TRADE WITH THIRD COUNTRIES
Article 13
1. Imports into the Community, or exports therefrom, of any of the products
listed in Article 1(1)(a),(b),(c),(d),(f),(g) and (h) shall be subject topresentation of an import or export licence.
Licences shall be issued by the Member States to any applicant, irrespective
of his place of establishment in the Community and without prejudice tomeasures taken for the application of Articles 17 and 18.
Import and export licences shall be valid throughout the Community. Such
licences shall be issued subject to the lodging of a security guaranteeing that
the products are imported or exported during the term of validity of thelicence; except in cases of force majeure the security shall be forfeited in
whole or in part if import or export is not carried out, or is only carried out
partially, within that period.
2. In accordance with the procedure laid down in Article 48:(a) the scheme provided for in paragraph 1 may be extended to cover the
products listed in Article 1(1)(e);
(b) the term of validity of licences and other detailed rules for the application
of this Article, which may lay down in particular a time limit for the issue
of licences, shall be adopted.!B1999R2038 — EN — 25.09.1999 — 000.001 — 13
Article 14
1. Unless this Regulation provides otherwise, the rates of duty in the
Common Custom Tariff shall apply to the products listed in Article 1.
2. Notwithstanding paragraph 1, to ensure that the Community market is
adequately supplied with raw sugar for refining falling within CN codes
1701 11 10 and 1701 12 10 and molasses falling within CN codes 1703 bymeans of imports from third countries, the Commission may, in accordancewith the procedure laid down in Article 48, suspend in whole or in part the
application of import duties on these products, and establish the arrangements
for any such suspension.
Suspension may apply for the period in which the price on the world market
plus the import duty in the Common Customs Tariff:
— in the case of raw sugar, exceeds the intervention price for the product,— in the case of molasses, exceeds the price level corresponding to the price
of molasses used as a basis, for the sugar marketing year underconsideration, for determining revenue from sales of molasses pursuant to
the provisions of Article 4(2).
Article 15
1. In order to prevent or counteract adverse effects on the market in the
Community which may result from imports of certain agricultural products,imports of one or more of such products at the rate of duty laid down in the
Common Customs Tariff shall be subject to payment of an additional import
duty if the conditions set out in Article 5 of the Agreement on Agricultureconcluded in accordance with Article 300 of the Treaty in the framework ofthe Uruguay Round of multilateral trade negotiations have been fulfilled,
unless the imports are unlikely to disturb the Community market, or where the
effects would be disproportionate to the intended objective.
2. The trigger prices below which an additional duty may be imposed shall
be those notified by the Community to the World Trade Organisation.
The trigger volumes to be exceeded in order to have the additional import
duty imposed shall in particular be determined on the basis of imports into theCommunity in the three years preceding the year in which the adverse effects
referred to in paragraph 1 arise or are likely to arise.
3. The import prices to be taken into consideration for imposing an
additional import duty shall be determined on the basis of the cif importprices of the consignment under consideration.
Cif import prices shall be checked to that end against the representative prices
for the product on the world market or on the Community import market for
that product.
4. The Commission shall adopt detailed rules for the application of this
Article in accordance with the procedure laid down in Article 48. Such
detailed rules shall specify in particular:
(a) the products to which additional import duties shall apply under the terms
of Article 5 of the Agreement on Agriculture;
(b) the other criteria necessary to ensure application of paragraph 1 in
accordance with Article 5 of the Agreement on Agriculture.
Article 16
For molasses:
— the world market price referred to in Article 14(2), and— the representative price referred to in Article 15(3),shall apply to standard quality.Standard quality may be determined in accordance with the procedure laid
down in Article 48.!B1999R2038 — EN — 25.09.1999 — 000.001 — 14
Article 17
1. Tariff quotas for the products listed in Article 1 resulting from
agreements concluded in the framework of the Uruguay Round of
multilaterial trade negotiations shall be opened and administered in accord-
ance with detailed rules adopted under the procedure laid down in Article 48.
2. Quotas shall be administered by applying one of the following methods or
a combination of them:
— method based on chronological order of the lodgement of applications
(‘first come, first served’ principle),
— method of distribution in proportion to the quantities requested when the
applications were lodged (using the ‘simultaneous examination’ method),
— method based on taking traditional trade patterns into account (using the
‘traditional/new arrivals’ method).
Other appropriate methods may be adopted.They must avoid any discrimination between the operators concerned.3. The method of administration adopted shall, where appropriate, give due
weight to the supply requirements of the Community market and the need tosafeguard the equilibrium of that market, whilst at the same time possiblydrawing on methods which may have been applied in the past to quotas
corresponding to those referred to in paragraph 1, without prejudice to the
rights resulting from agreements concluded in the framework of the UruguayRound negotiations.
4. The detailed rules referred to in paragraph 1 shall provide for annual
quotas, suitably phased over the year, if necessary, shall determine the
administrative method to be used and, where appropriate, shall include
provisions regarding:
(a) guarantees covering the nature, provenance and origin of the product;
(b) recognition of the document used for verifying the guarantees referred to
in (a); and
(c) the conditions under which import licences are issued and their term of
validity.
Article 18
1. To the extent necessary to enable the products listed in Article 1(1)(a),(c)
and (d) to be exported without further processing or in the form of goodslisted in Annex I, on the basis of quotations or prices on the world market forthose products listed in Article 1(1)(a) and (c), and within the limits resulting
from agreements concluded in accordance with Article 300 of the Treaty, the
difference between those quotations or prices and prices in the Communitymay be covered by export refunds.
The export refund granted for raw sugar may not exceed that granted for
white sugar.
2. Provision may be made for export refunds in respect of the products listed
in Article 1(1)(f), (g) and (h) and exported without further processing or in the
form of goods mentioned in Annex I.
When determining the amount of the refund, for each 100 kg of dry matter
particular account shall be taken of:
(a) the refund applicable to exports of products falling within CN code
1702 30 91;
(b) the refund applicable to exports of the products referred to in Article
1(1)(d);
(c) the economic aspects of the planned exports.
3. The refund applicable to products listed in Article 1 exported in the form
of goods listed in Annex I shall not be greater than that applicable to these
products exported without further processing.!B1999R2038 — EN — 25.09.1999 — 000.001 — 15
4. The method to be adopted for the allocation of the quantities which may
be exported with a refund shall be the method which:
(a) is most suited to the nature of the product and the situation on the market
in question, allowing the most efficient possible use of the resources
available, account being taken of the efficiency and structure ofCommunity exports without, however, creating discrimination betweenlarge and small operators;
(b) is least cumbersome administratively for operators, account being taken
of administration requirements;
(c) prevents any discrimination between the operators concerned.
5. Refunds shall be the same for the whole Community. They may vary
according to destination, where the world market situation or the specific
requirements of certain markets make this necessary.
Refund shall be fixed in accordance with the procedure laid down in Article
48. Refunds may be fixed:
(a) at regular intervals;
(b) by invitation to tender in respect of products for which provision was
made for that procedure in the past.
Refunds fixed at regular intervals may, where necessary, be adjusted in the
intervening period by the Commission at the request of a Member State or onits own initiative.
Tenders submitted in response to an invitation shall not be considered unless a
deposit is lodged. Except in cases of force majeure , the deposit shall be
forfeited in whole or in part if tenderers have not fulfilled, or have only
partially fulfilled, the obligations placed upon them.
The provisions of Articles 19, 20 and 21 concerning products not denatured
and exported without further processing listed in Article 1(1)(a),(c) and (d)
shall apply in addition.
6. When the amount of the refund is set, account shall be taken in particular
of the need to establish a balance between the use of Community basic
agricultural products for export as processed goods to third countries, and the
use of products from these countries admitted for inward processing.
7. Refunds on products listed in paragraph 1 and exported without further
processing shall only be granted on application and on presentation of the
relevant export licence.
8. The refund applicable to exports of products listed in Article 1 exported
without further processing shall be that applicable on the day of application
for the licence and, in the case of a differentiated refund, that applicable on thesame day:
(a) for the destination indicated on the licence; or
(b) for the actual destination if it differs from the destination indicated on the
licence. In that case, the amount applicable may not exceed the amount
applicable for the destination indicated on the licence.
Appropriate measures may be taken to prevent abuse of the flexibility
provided for in this paragraph.
9. Paragraphs 7 and 8 may be made to apply to products listed in Article 1
and exported in the form of goods listed in Annex I in accordance with theprocedure laid down in Article 16 of Regulation (EC) No 3448/93 (
1).
10. Paragraphs 7 and 8 may be waived in the case of products listed in Article
1 on which refunds are paid under food-aid operations, in accordance with theprocedure laid down in Article 48.
11. The refund shall be paid upon proof:
— that the products have been exported from the Community,
and
— that, in the case of a differentiated refund, the products have reached the
destination indicated on the licence or another destination for which a!B
(1) OJ L 318, 20.12.1993, p. 18. Regulation as last amended by Commission
Regulation (EC) No 2491/98, (OJ L 309, 19.11.1998, p. 28).1999R2038 — EN — 25.09.1999 — 000.001 — 16
refund was fixed, without prejudice to point (b) of the first subparagraph
of paragraph 8. However, exceptions may be made to this rule inaccordance with the procedure laid down in Article 48, provided thatconditions are laid down which offer equivalent guarantees.
Supplementary provisions may be laid down in accordance with the procedure
provided for in Article 48.
12. No refund shall be granted on exports in the natural state of the not
denatured products referred to in Article 1(1)(a) unless, depending on thecase, they have been:
(a) obtained from sugar beet or sugar cane harvested within the Community;
(b) imported into the Community in accordance with Article 40;
(c) obtained from one of the products imported in accordance with Article
40.
13. No refund shall be granted on exports in the natural state of the not
denatured products referred to in Article 1(c) and (d) which are not ofCommunity origin or which have not been obtained from sugars imported into
the Community in accordance with the provisions of paragraph 12(b) or from
the products referred to in paragraph 12(c).
14. Compliance with the limits on volumes arising from agreements
concluded in accordance with Article 300 of the Treaty shall be ensured on
the basis of the export licences issued for the reference periods provided for
therein and applicable to the products concerned.
15. The detailed rules for the application of this Article, including the
arrangements for redistributing unallocated or unused exportable quantities,
and the amendment of Annex I shall be adopted in accordance with the
procedure laid down in Article 48. However, the rules governing theapplication of paragraph 6 for the products referred to in Article 1 exported inthe form of goods listed in Annex I shall be adopted in accordance with the
procedure provided for in Article 16 of Regulation (EC) No 3449/93.
Article 19
1. This Article shall apply to the fixing of refunds on the not denatured
products exported in the natural state referred to in Article 1(1)(a).
2. As regards the periodic fixing of refunds for the products referred to in
Article 1(1)(a):
(a) the refunds shall be fixed every two weeks.
However, such fixing may be discontinued in accordance with the
procedure laid down in Article 48 if it is found that no surplus sugar isavailable within the Community for export on the basis of world market
prices. In that event, no refund shall be granted;
(b) when the refund is being fixed, the situation on the Community and world
markets in sugar, and in particular the following, shall be taken intoaccount:
— the intervention price for white sugar for the Community area with
the largest surplus or the intervention price for raw sugar for the
Community area which is considered to be representative for theexportation of this type of sugar,
— the costs of transporting sugar from the areas referred to in the first
indent to ports or other points of export in the Community,
— trade expenses and any transhipment, transport and packaging
charges incurred in marketing sugar on the world market,
— quotations or prices recorded for sugar on the world market, and— the economic aspect of the proposed exports.
3. Where the refund is fixed by tender for the products referred to in Article
1(1)(a):
(a) the purpose of the tender shall be to determine the amount of the refund;(b) the competent authorities of the Member States shall invite tenders in
accordance with an instrument binding in law in all Member States. This
instrument shall lay down the terms of the invitation to tender. These!B1999R2038 — EN — 25.09.1999 — 000.001 — 17
terms must guarantee equal access for all persons established within the
Community;
(c) the terms of the invitation to tender shall include a time limit for the
submission of tenders. The maximum amount of the refund for theinvitation in question shall be fixed in accordance with the procedure laid
down in Article 48 within three working days following the expiry of the
time limit and in the light of the tenders received. When the maximumamount is being calculated, account shall be taken of the supply situationand prices within the Community, prices and potential outlets on the
world market and costs incurred in exporting sugar.
A maximum tonnage may be fixed in accordance with the same
procedure;
(d) where exports can be effected on the basis of a refund which is lower than
that which would result from taking the difference between prices withinthe Community and prices on the world market into account and whereexports are for a specific destination, the competent authorities of the
Member States may be required to issue a special invitation to tender, the
terms of which shall include:
— the possibility of submitting tenders at any time until the tendering
procedure is terminated, and
— a maximum amount of the refund, calculated in the light of
requirements for the exports in question;
(e) if the amount of the refund shown in a tender:
— exceeds the maximum fixed, the competent authorities of the
Member States shall reject that tender,
— does not exceed the maximum, those authorities shall fix the refund
at an amount equal to the refund appearing in the tender in question.
4. The refund on raw sugar:(a) shall be fixed for the standard quality defined in Article 1 of Regulation
(EEC) No 431/68 (
1);
(b) fixed periodically in accordance with paragraph 2(a):
— may not exceed 92 % of the refund for white sugar for the same
period. However, this limit shall not apply to refunds to be fixed for
candy sugar,
— shall for each exporting operation under consideration be multiplied
by a conversion factor which shall be obtained by dividing the yield
of the raw sugar exported, calculated in accordance with theprovisions of Article 1 of Regulation (EEC) No 431/68, by 92;
(c) the maximum amount fixed pursuant to paragraph 3(c) within the
framework of a tender may not exceed 92 % of the maximum amount
fixed at the same time for white sugar pursuant to that paragraph.
Article 20
1. The refund on the not denatured products exported in the natural state
listed in Article 1(1)(c), shall be fixed each month, account being taken of:
(a) the price of molasses used to determine receipts from the sale of molasses
for the sugar year in question pursuant to Article 4(2);
(b) prices and potential outlets for molasses on the Community market;(c) quotations or prices recorded for molasses on the world market; and(d) the economic aspect of the proposed exports.
However, such fixing may be discontinued in accordance with the procedure
laid down in Article 48 if it is found that no surplus molasses is available
within the Community for export on the basis of world market prices. In thatevent, no refund shall be granted.!B
(1) OJ L 89, 10.4.1968, p. 3. Regulation as amended by Regulation (EC) No 3290/94
(OJ L 349, 31.12.1994, p. 105).1999R2038 — EN — 25.09.1999 — 000.001 — 18
2. In special circumstances the amount of the refund may be fixed by tender
for specific quantities and specific areas of the Community. The purpose ofthe tender shall be to determine the amount of the refund.
The competent authorities of the Member States concerned shall invite
tenders on the basis of an authorisation laying down the terms of the invitation
to tender. These terms must guarantee equal access for all persons established
within the Community.
Article 21
1. The basic amount of the refund shall be fixed each month for the not
denatured products exported in the natural state listed in Article 1(1)(d).
However, such periodic fixing may be discontinued in accordance with the
procedure laid down in Article 48 if the periodic fixing of the refund on white
sugar, not further processed, is suspended. In this event, no refund shall be
granted.
2. The basic amount of the refund on the products referred to in paragraph
1, with the exception of sorbose, shall be equal to one-hundredth of an amountarrived at by taking account of:
(a) the difference between the intervention price for white sugar for the
Community area with the largest surplus for the month for which the
basic amount is fixed, and the quotations or prices for white sugar
recorded on the world market;
(b) the need to establish a balance between:
— the use of Community basic products in the manufacture of
processed goods for export to third countries, and
— the use of third-country products brought in under inward processing
arrangements.
3. In the case of sorbose, the basic amount of the refund shall be equal to the
basic amount of the refund less one-hundredth of the production refund valid
pursuant to Regulation (EEC) No 1010/86 (
1) for the products listed in the
Annex to that Regulation.
4. The application of the basic amount of the refund may be limited to some
of the products listed in Article 1(1)(d).
Article 22
1. To the extent necessary for the proper working of the common
organisation of the markets in the sugar sector, the Council, acting in
accordance with the voting procedure laid down in Article 37(2) of the Treaty
on a proposal from the Commission, may prohibit in whole or in part the useof inward processing arrangements:
— in respect of products listed in Article 1(1)(a) and (d), and— in special cases, in respect of products listed in Article 1(1) which are
intended for the manufacture of goods listed in Annex I.
2. By way of derogation from paragraph 1, if the situation referred to in
paragraph 1 arises with exceptional urgency and the Community market is
disturbed or is liable to be disturbed by inward or outward processing
arrangements, the Commission shall, at the request of a Member State or onits own initiative, decide upon the necessary measures; the Council and theMember States shall be notified of such measures, which shall be valid for no
more than six months and shall be immediately applicable. If the Commission
receives a request from a Member State, it shall take a decision thereon withina week following receipt of the request.
3. Measures decided on by the Commission may be referred to the Council
by any Member State within a week of the day on which they were notified.
The Council, acting by a qualified majority, may confirm, amend or repeal the
Commission decision. If the Council has not acted within three months, theCommission decision shall be deemed to have been repealed.!B
(1) OJ L 94, 9.4.1986, p. 9. Regulation as last amended by Commission Regulation
(EC) No 2074/98 (OJ L 265, 30.9.1998, p. 8).1999R2038 — EN — 25.09.1999 — 000.001 — 19
Article 23
1. The general rules for the interpretation of the combined nomenclature
and the special rules for its application shall apply to the tariff classificationof products covered by this Regulation; the tariff nomenclature resulting fromthe application of this Regulation shall be incorporated in the Common
Customs Tariff.
2. Save as otherwise provided for in this Regulation or pursuant to a
provision thereof, the following shall be prohibited in trade with thirdcountries:
(a) the levying of any charge having equivalent effect to a customs duty;
(b) the application of any quantitative restriction or measure having
equivalent effect.
Article 24
1. Where the price of sugar on the world market exceeds the intervention
price, provision may be made to apply an export levy in respect of the sugar inquestion. This levy must be applied when the cif price of white sugar or raw
sugar is greater than the intervention price plus an amount equal to the sum of
10 % of the intervention price and the storage levy applicable during themarketing year concerned.
The export levy may be determined by tender. Except in the case of tendering,
the levy to be charged shall be that applicable on the day of export.
2. Where the cif price of white or raw sugar is greater than the intervention
price plus an amount equal to the sum of 10 % of the intervention price and
the storage levy applicable during the marketing year concerned, the Council,
acting on a proposal from the Commission in accordance with the votingprocedure laid down in Article 37(2) of the Treaty, may decide to grant animport subsidy for the product in question.
Where it is established that:
(a) supplies to the Community; or(b) supplies to a major consumption region in the Community,cannot be ensured from Community availability, the Council, acting on a
proposal from the Commission in accordance with the voting procedure laid
down in Article 37(2) of the Treaty, shall decide to grant the import subsidyand determine the conditions for its application. Those conditions shall relatein particular to the quantity of white or raw sugar to be covered by the subsidy,
the duration of the subsidy and, where appropriate, the importing regions.
3. The following shall be decided in accordance with the procedure laid
down in Article 48:
(a) the cif prices referred to in paragraphs 1 and 2;
(b) the other arrangements for implementation of this Article.
In the case of the products referred to in Article 1(1)(b),(c),(d),(f),(g) and (h)
provisions similar to those in paragraphs 1 and 2 may be adopted inaccordance with the procedure laid down in Article 48.
4. The amounts stemming from the application of this Article shall be fixed
by the Commission. However, the export levies determined by tendering shallbe fixed in accordance with the procedure laid down in Article 48.
Article 25
1. If, by reason of imports or exports, the Community market in one or more
of the products listed in Article 1 is affected by, or is threatened with, seriousdisturbance likely to jeopardise the achievement of the objectives set out in
Article 33 of the Treaty, appropriate measures may be applied in trade with
third countries until such disturbance or threat of disturbance has ceased.
The Council, acting in accordance with the voting procedure laid down in
Article 37(2) of the Treaty on a proposal from the Commission, shall adopt
the general rules for implementing this paragraph and shall define the casesand limits within which the Member States may take protective measures.!B1999R2038 — EN — 25.09.1999 — 000.001 — 20
2. If the situation referred to in paragraph 1 arises, the Commission shall, at
the request of a Member State or on its own initiative, decide upon thenecessary measures; the Member States shall be notified of such measures,which shall be immediately applicable. If the Commission receives a request
from a Member State, it shall take a decision thereon within three working
days following receipt of the request.
3. Measures decided upon by the Commission may be referred to the
Council by any Member State within three working days of the day on whichthey were notified. The Council shall meet without delay. It may, acting by a
qualified majority, amend or annul the measure in question.
4. This Article shall be applied having regard to the obligations arising from
agreements concluded in accordance with Article 300(2) of the Treaty.
CHAPTER IV
QUOTAS
Article 26
1. Articles 27 to 39 shall apply in respect of the marketing years 1995/96 to
2000/2001.
2. For the period referred to in paragraph 1 and without prejudice to
paragraph 5, Article 27(3), Article 30 and, as appropriate, Article 28(5), the A
and B quotas of undertakings producing sugar or isoglucose shall be thoseassigned by the Member States for the 1994/95 marketing year.
3. For the period referred to in paragraph 1, the basic A and B production
quantities for sugar and isoglucose used in the assignment of quotas shall be
those set out, as appropriate, in Article 27(3) or 28(2).
4. For the period referred to in paragraph 1 and without prejudice to
paragraph 5, the A and B quotas of undertakings producing inulin syrup shall
be those definitively assigned by the Member States pursuant to Article 29 forthe 1994/95 marketing year. Articles 27 and 30 shall not apply to suchundertakings.
5. In order to comply with the commitments entered into by the Community
under the agricultural agreement concluded pursuant to Article 300(2) of the
Treaty, the guarantees for the disposal of sugar, isoglucose and inulin syrup
produced under quota may be reduced for one or more designated marketingyears.
For the purposes of applying the first subparagraph, for each marketing year
the guaranteed quantity under quotas shall be laid down before 1 October on
the basis of forecast of production, imports, consumption, storage, carryover,
exportable balance and average loss likely to be borne under the self-financ-ing scheme within the meaning of point (d) of Article 33(1). If these forecastsshow an exportable balance for the marketing year in question greater than the
maximum laid down by the Agreement, the guaranteed quantity shall be
reduced by the difference in accordance with the procedure laid down inArticle 48. This difference shall be divided up between sugar, isoglucose andinulin syrup in accordance with the percentage representing the total of the A
and B quotas of each product in the Community. It shall then be broken down
by Member State and by product by applying the corresponding coefficientset out in the table below:
Region123
Coefficient applicable to
sugar expressed as white
sugarCoefficient applicable to
isoglucose in dry matterCoefficient applicable to
inulin syrup as sugar/iso-
glucose equivalent
A sugar B sugar A isoglucose B isoglucoseA inulin syr-
upB inulin syrup
BLEU (1) 0,046201 0,009920 0,225547 0,062024 0,556265 0,130955
Denmark 0,027206 0,008015 — — — —Germany 0,169608 0,052188 0,104246 0,024551 — —!
B1999R2038 — EN — 25.09.1999 — 000.001 — 21
Region123
Coefficient applicable to
sugar expressed as white
sugarCoefficient applicable to
isoglucose in dry matterCoefficient applicable to
inulin syrup as sugar/iso-
glucose equivalent
A sugar B sugar A isoglucose B isoglucoseA inulin syr-
upB inulin syrup
Germany (region Article 28) 0,055204 0,016986 — — — —
Greece 0,012352 0,001235 0,037978 0,008944 — —
Spain 0,026459 0,001102 0,166138 0,017721 — —
France (metropolitan) (2) 0,213231 0,063239 0,061081 0,015898 0,058922 0,013847
France (ODS) (2) 0,019298 0,002063 — — — —
Ireland 0,007752 0,000775 — — — —
Italy 0,082491 0,015514 0,059803 0,014083 — —Netherlands 0,053393 0,014083 0,026804 0,006313 0,194365 0,045646Portugal (mainland) 0,002323 0,000232 0,029213 0,006880 — —
Portugal (autonomous region of the
Azores)0,000387 0,000039 — — — —
United Kingdom 0,044297 0,004430 0,084713 0,022596 — —
Austria 0,022673 0,005292 — — — —
Sweden 0,014327 0,001433 — — — —Finland 0,005683 0,000568 0,023151 0,002316 — —
(
1) Belgo-Luxembourg Economic Union
(2) Pursuant to the second subparagraph of Article 30(3).
The Member State shall then allocate the difference to which it is subject
among the producer undertakings established on its territory on the basis ofthe existing ratio between their A quota and their B quota for the product in
question and the basic quantity A and the basic quantity B for the Member
State or, as appropriate, the sum of the A quotas and the sum of the B quotasfor this product assigned to the producer undertakings.
Sugar, isoglucose and inulin syrup produced beyond the quantity guaranteed
shall be considered as C sugar, C isoglucose and C inulin syrup.
The arrangements for the application of the first subparagraph, the reduction
in the guaranteed quantity and, where appropriate, any change in that quantityas regards the fixing of the guaranteed quantity for the following marketing
year shall be adopted in accordance with the procedure laid down in Article
48.
6. Before 1 January 2001 the Council shall, in accordance with the
procedure laid down in Article 37(2) of the Treaty, adopt the arrangements to
apply from 1 July 2001 to the production of sugar, isoglucose and inulin
syrup.
Article 27
1. Under the conditions of this chapter, the Member States shall allocate an
A and B quota to each undertaking producing sugar and to each undertakingproducing isoglucose which is established on its territory and has:
— either been provided with an A and B quota during the 1994/95 marketing
year,
— or, as regards Austria, Finland and Sweden, has produced sugar or
isoglucose during the 1994 calendar year.!B1999R2038 — EN — 25.09.1999 — 000.001 — 22
2. With regard to Portugal, that country shall allocate, for its mainland
region under the conditions of this chapter and within the limit of the basic Aand B quantities fixed for that region in paragraph 3, an A quota and a Bquota to each undertaking situated in that region which is likely to start up
sugar production.
Before such allocation Portugal may use for the benefit of the A and B quotas
of the undertaking situated in the autonomous region of the Azores up to 10 %
of the basic A and B quantities fixed in respect of mainland Portugal.
3. For the allocation of the A and B quotas referred to in paragraph 1 the
basic quantities shall be fixed as folllows:
I.Basic quantities A
Regiona) Basic quantity A
for sugar (1)b) Basic quantity A for
isoglucose (2)
Denmark 328000,0 —
Germany 1990000,0 28882,0
Greece 290000,0 10522,0
Spain 960000,0 75000,0France (metropolitan) 2530000,0 15887,0
France overseas departments 466000,0 —
Ireland 182000,0 —Italy 1320000,0 16569,0
Netherlands 690000,0 7426,0
Austria 316529,0 —Potugal (mainland) 63636,4 8093,9
The autonomous region of the Azores 9090,9 —
Finland 133433,0 10845,0Sweden 336364,0 —Belgium/Luxembourg Economic Union 680000,0 56667,0
United Kingdom 1040000,0 21696,0
(
1) In tonnes of white sugar.
(2) In tonnes of dry matter.
II. Basic quantities B
Regiona) Basic quantity B
for sugar (1)b) Basic quantity B for
isoglucose (2)
Denmark 96629,3 —
Germany 612312,9 6802,0
Greece 29000,0 2478,0Spain 40000,0 8000,0
France (metropolitan) 759232,8 4135,0
France overseas departments 46600,0 —Ireland 18200,0 —
Italy 248250,0 3902,0
Netherlands 182000,0 1749,0!
B1999R2038 — EN — 25.09.1999 — 000.001 — 23
Regiona) Basic quantity B
for sugar (1)b) Basic quantity B for
isoglucose (2)
Austria 73881,0 —
Portugal (mainland) 6363,6 1906,1
The autonomous region of Azores 909,1 —Finland 13343,0 1085,0
Sweden 33636,0 —
Belgium/Luxembourg Economic Union 146000,0 15583,0United Kingdom 104000,0 5787,0
(
1) In tonnes of white sugar.
(2) In tonnes of dry matter.
4. For the period referred to in Article 26(1) and notwithstanding paragraph
2 and Articles 28 and 30, the A quota and the B quota of each
sugar-producing undertaking and each isoglucose-producing undertaking
shall be equal, respectively, to the A quota and the B quota allocated to it forthe 1994/95 marketing year.
However, as regards sugar producing undertakings established in:(a) Austria, the A and B quota of the sugar producer shall be equal to the
base A and base B quantities respectively laid down in paragraph 3, point
I(a) and point II(a) for Austria;
(b) Finland, the A and B quota of the sugar producer shall be equal to the
base A and base B quantities respectively laid down in paragraph 3, point
I(a) and point II(a) for Finland;
(c) Sweden, the A and B quota of the sugar producer shall be equal to the
base A and base B quantities respectively laid down in paragraph 3, pointI(a) and point II(a) for Sweden.
As regards the producer of isoglucose established in Finland, its A and B
quota shall be equal to the base A and B quantities respectively laid down in
paragraph 3 point I(b) and point II(b) for Finland.
5. The Council, acting by a qualified majority on a proposal from the
Commission, shall, where necessary, specify a standard quality for isoglucoseand the criteria for a system for converting the quantities produced into
quantities of that standard quality.
6. As necessary, detailed rules for the application of this Article, and in
particular those concerning the conversion system referred to in paragraph 5,
shall be adopted in accordance with the procedure laid down in Article 48.
Article 28
1. Without prejudice to Article 27(3), in the case of Germany an additional
region shall be constituted for the purposes of applying the quota system to
sugar-producing undertakings established in the said region which produced
sugar before 1 July 1990 and continue to do so thereafter.
The region corresponds, for the purposes of this Regulation, to the territory of
the former German Democratic Republic.
2. For the allocation of A and B quotas to the undertakings referred to in
paragraph 1, the basic quantities shall be as follows:
(a) basic quantity A: 647 703 tonnes of white sugar,(b) basic quantity B: 199 297 tonnes of white sugar.!B1999R2038 — EN — 25.09.1999 — 000.001 — 24
3. The A quota of each sugar-producing undertaking referred to in
paragraph 1 shall be determined by applying to the average annual quantityof sugar produced by the undertaking concerned during the 1984/85 to1988/89 marketing years, hereinafter referred to as the reference production, a
coefficient representing the ratio between the basic quantity A referred to in
paragraph 2 and the sum of the reference production quantities of theundertakings in the region defined in paragraph 1.
4. The B quota of each sugar-producing undertaking referred to in
paragraph 1 shall be equal to 30,77 % of its A quota determined inaccordance with paragraph 3.
5. Article 30 shall apply only to transfers between the sugar-producing
undertakings referred to in paragraph 1.
6. Detailed rules for applying this Article shall, where necessary, be adopted
in accordance with the procedure laid down in Article 48.
Article 29
1. Without prejudice to paragraph 3, the A quota of each undertaking
producing inulin syrup shall be equal to its production volume from 1 July
1992 to 30 June 1993 from a specific installation designed and reserved for
hydrolysis of inulin as part of a complete integrated conversion processstretching from reception of the basic agricultural product to final production
of inulin syrup. Production shall be verified by the Member State on terms to
be determined.
2. The B quota of each undertaking producing inulin syrup shall be 23,55 %
of its A quota determined pursuant to paragraph 1 and 3.
3. The A quota indicated in paragraph 1 shall if necessary be adjusted so
that the sum of the A and B quotas:
— is not more than 85 %, and
— is not less than 65 %
of the undertaking’ s installed technical production capacity on 1 October 1992
for the continuous industrial production of inulin syrup from the specific
installation designed and reserved for hydrolysis of inulin in accordance with
paragraph 1.
This capacity shall be determined by the Member State concerned on the basis
of the daily tonnage of the basic agricultural product processed into inulin
syrup during a maximum period of one hundred days per year.
4. For the purposes of verification as indicated in paragraph 1, manu-
facturers producing inulin syrup on or after 1 July 1992 must forthwith notify
to the Member State in which their production facilities are located, details of
each inulin hydrolysis installation used for manufacturing, in accordance withparagraph 1, the product defined in Article 11(2). The Member State may callupon the interested party to provide any further information it needs.
Member States shall take all necessary action to check the accuracy of
notifications.
For the purpose of their allocation by the Member State, A and B quotas shall
be expressed as sugar/isoglucose equivalent by applying a coefficient of 1,9 to
verified production in terms of dry matter.
Member States shall notify the quotas allocated and their holders to the
Commission, which shall notify them to the other Member States.
5. Rules for the application of this Article, in particular the terms mentioned
in paragraph 1, shall be adopted in accordance with the procedure laid downin Article 48.
Article 30
1. Member States may transfer A quotas and B between undertakings under
the conditions laid down in this Article, taking into consideration the interests
of each of the parties concerned and in particular those of sugar beet
producers or sugar cane producers.!B1999R2038 — EN — 25.09.1999 — 000.001 — 25
2. Member States may reduce the A quota and the B quota of each
sugar-producing undertaking or each isoglucose-producing undertakingsituated in their territories by a total quantity not exceeding, for the periodreferred to in Article 26(1), 10 % of the A quota or of the B quota, as the case
may be, fixed for each of them in accordance with Article 27.
The limit of 10 % referred to in the first subparagraph shall not apply in Italy,
Spain or in the French overseas departments in cases where the transfer ofquotas is made on the basis of restructuring plans in the beet, cane and sugarsectors in the region concerned and to the extent necessary to permit such
plans to be implemented. As regards the transfers of quotas in Spain under
such restructuring plans, Article 9 of Regulation (EEC) No 193/82 (
1) shall
apply.
The restructuring plans and the ensuing measures affecting the A and B
quotas shall be communicated to the Commission without delay.
3. The withdrawn quantities of A quotas and B quotas shall be allocated by
the Member States to one or more other undertakings, whether or not in
possession of a quota, situated in the same region within the meaning ofArticle 27(3) excluding the undertakings from which these quantities werewithdrawn.
Nevertheless, France may reduce by a quantity not exceeding 30 000 tonnes
of white sugar in total the A quotas, fixed in accordance with Article 27, of
undertakings situated in its overseas departments, and may reallocate thequantities thus withdrawn to one or more other undertakings situated in
metropolitan France. After reduction the A quota of each undertaking
concerned may not be less than the average of its sugar production within thelimit of its basic quota recorded for such undertaking in each of the marketingyears 1977/78 to 1979/80 within the meaning of Regulation (EEC) No
3330/74 (
2).
4. The Council, acting by a qualified majority on a proposal from the
Commission, shall adopt general rules concerning the adjustment of quotas, inparticular where this results from the amalgamation or transfer of undertak-ings.
5. Detailed rules for the application of this Article shall be adopted in
accordance with the procedure laid down in Article 48.
Article 31
1. Without prejudice to paragraph 2, C sugar not carried forward pursuant to
Article 32, C isoglucose and C inulin syrup may not be disposed of on theCommunity’s internal market and must be exported in the natural state
without further processing before 1 January following the end of the
marketing year in question.
Articles 8, 9, 18 and 24 shall not apply to such sugar and Articles 9, 18 and 24
to such isoglucose and inulin syrup.
2. Exceptionally, and to the extent necessary to guarantee the Community’s
sugar supplies, it may be decided that Article 24 shall apply to C sugar. In that
event it shall be decided at the same time that the entire quantity of the C
sugar in question may finally be disposed of on the internal market withoutthe amount laid down in paragraph 3 of this Article being levied.
3. Detailed rules for the application of this Article shall be adopted in
accordance with the procedure laid down in Article 48.
These rules shall provide in particular for the levying of a charge on the C
sugar, C isoglucose and C inulin syrup referred to in paragraph 1 in respect of
which proof of its export in the natural state within the prescribed period wasnot furnished at a date to be determined.
Article 32
1. Each undertaking shall be free to decide to carry forward the whole or
part of its sugar production outside its ‘A’ quota to the next marketing year to
be treated as part of that year’ s production. That decision shall be irrevocable.!B
(1) OJ L 21, 29.1.1982, p. 3.
(2) OJ L 359, 31.12.1974, p. 1. Regulation as replaced by Regulation (EEC) No
1785/81.1999R2038 — EN — 25.09.1999 — 000.001 — 26
Each undertaking shall be free to decide to carry forward the whole or part of
its production of A sugar and B sugar which has become production of Csugar after application of Article 26(5) to the next marketing year to betreated as part of that year’ s production. That decision shall also be
irrevocable. Furthermore, it shall not be subject to any limit that may be laid
down under paragraph 4 of this Article.
2. Undertakings which take the decision referred to in paragraph 1 shall:— inform the Member State concerned, before 1 February, of the quantity or
quantities of sugar being carried forward, and
— undertake to store such quantity or quantities for a period of 12
consecutive months from a date to be determined. For this period, storagecosts for C sugar carried forward and for A sugar and B sugar which have
become carried-forward C sugar after application of Article 26(5) shall
also be reimbursed under Article 8.
However, the date of 1 February referred to in the first indent of the first
subparagraph shall be replaced:
(a) for undertakings established in Spain, by that of 15 April where
beet-sugar production is concerned, and by that of 20 June where
cane-sugar production is concerned;
(b) for undertakings established in the United Kingdom, by that of 15
February.
For undertakings situated in the French departments of Guadeloupe and
Martinique the date referred to in the first indent of the first subparagraphshall be 1 May.
If an undertaking’ s definitive production in the marketing year concerned was
less than the estimate made when the decision to carry forward was taken,
then the quantity carried forward may, before 1 August of the next marketing
year, be adjusted retroactively.
3. In cases of natural disasters such as drought and flooding striking a
Community region and where the application of Article 12 is not sufficient toensure the normal supply of that region, a decision may be taken, under the
procedure laid down in Article 48, to reduce the period of compulsory storage
referred to in paragraph 2, first subparagraph, second indent for a quantity ofsugar sufficient to ensure the normal supply of the said region.
4. Detailed rules for the application of this Article, which may fix a limit on
the quantities of sugar allowed to be carried forward, shall be adopted in
accordance with the procedure laid down in Article 48.
These rules shall provide, in particular, for a charge to be levied on any sugar
comprising the quantity referred to in the second indent of the first
subparagraph of paragraph 2 which is disposed of during the prescribedperiod of storage.
Article 33
1. Before the end of each marketing year there shall be recorded:
(a) estimates of the production of A and B sugar, A and B isoglucose and A
and B inulin syrup attributable to the marketing year in question;
(b) estimates of the quantities of sugar, isoglucose and inulin syrup disposed
of for consumption within the Community during the marketing year in
question;
(c) the exportable surplus obtained by subtracting the quantity referred to in
(b) from the quantity referred to in (a);
(d) estimates of the average loss or the average revenue per tonne of sugar for
export obligations to be fulfilled during the current marketing year.
This average loss or average revenue shall be equal to the difference
between the total amount of refunds and the total amount of levies on the
total tonnage of export obligations in question;
(e) estimates of the total loss or the total revenue, obtained by multiplying
the surplus referred to in (c) by the average loss or the average revenuereferred to in (d).!B1999R2038 — EN — 25.09.1999 — 000.001 — 27
2. Before the end of the 2000/2001 marketing year and without prejudice to
Article 26(5), there shall be recorded cumulatively for the 1995/96 to2000/2001 marketing year:
(a) the exportable surplus established, on the basis of the definitive
production of A and B sugar, A and B isoglucose and, from the 1994/95marketing year, A and B inulin syrup and the definitive quantity of sugar,isoglucose and, from the 1994/95 marketing year, inulin syrup disposed
of for consumption within the Community;
(b) the average loss or average revenue per tonne of sugar resulting from the
total export obligations in question determined by following the
calculating rule referred to in paragraph 1(d), second subparagraph;
(c) the total loss or total revenue obtained by multiplying the surplus referred
to in (a) by the average loss or the average revenue referred to in (b);
(d) the total sum of the basic production levies and the B levies charged.
The estimated total loss or total revenue referred to in paragraph 1(e) shall be
adjusted on the basis of the difference between the amounts recorded in (c)
and (d).
3. When the recorded figures referred to in paragraph 1 result, after
adjustment in accordance with paragraph 2, and without prejudice to Article36(1), in an estimated overall loss, that loss shall be divided by the estimated
production of A and B sugar, A and B isoglucose and A and B inulin syrup
attributable to the current marketing year. An amount equal to this quotientshall be charged to manufacturers as a basic production levy on their
production of A and sugar, A and B isoglucose and A and B inulin syrup.
This levy shall not, however, exceed:— on the sugar in question, an amount equal to 2,0 % of the intervention
price for white sugar,
— for the inulin syrup in question, expressed as sugar/isoglucose equivalent
by applying a coefficient of 1,9, the maximum amount payable on white
sugar, and
— on the isoglucose in question, the share of the basic production levy borne
by sugar manufacturers.
4. When the maximum permitted basic production levy does not fully cover
the overall loss referred to in the first subparagraph of paragraph 3, theuncovered balance shall be divided by the estimated production of B sugar, Bisoglucose and B inulin syrup attributable to the marketing year in question.
An amount equal to this quotient shall be charged on manufacturers as a levy
on their production of B sugar, B isoglucose and B inulin syrup.
Subject to paragraph 5, this levy shall not, however, exceed:
— on B sugar, an amount equal to 30,0 % of the intervention price for white
sugar,
— for B inulin syrup, expressed as sugar/isoglucose equivalent by
application of a coefficient of 1,9, the maximum amount payable on B
white sugar, and
— on B isoglucose, the share of the levy on B sugar borne by sugar
manufacturers.
5. Where the figures recorded pursuant to paragraph 1 show that, because of
the ceiling placed on the basic production levy and the B levy fixed in
paragraphs 3 and 4, the foreseeable total loss for the current marketing year is
likely not to be covered by the receipts expected from those levies, themaximum percentage referred to in the first indent of paragraph 4 shall beadjusted to the extent necessary to cover the said total loss but without
exceeding 37,5 %.
The revised maximum percentage for the B levy shall be fixed for the current
marketing year before 15 September of that marketing year. At the same time
the percentage referred to in the second subparagraph of Article 5(2) shall be
adjusted accordingly.
6. The Council, acting by a qualified majority on a proposal from the
Commission, may decide that all or part of the losses resulting from any
granting of the production refunds referred to in Article 9(3) must be included
in the total loss referred to in paragraph 1(e) of this Article.!B1999R2038 — EN — 25.09.1999 — 000.001 — 28
7. The levies referred to in this Article shall be collected by the Member
States.
8. In accordance with the procedure laid down in Article 48, detailed rules
for the application of this Article and in particular:
— the amounts of the levies to be collected,
— the revised maximum percentage for the B levy,— the adjusted minimum price for B beet corresponding to the revised
maximum percentage for the B levy.
Article 34
1. Where, in respect of a particular marketing year, the total loss recorded
pursuant to Article 33(1) and (2) is not fully covered by the receipts from the
production levies for that marketing year after application of Article 33(3) to
(5), an additional levy shall be charged to manufacturers, without prejudice toArticle 5, so as to cover fully that part of the total loss in question which is notcovered by the said receipts.
2. The additional levy shall be determined for each undertaking producing
sugar, isoglucose or inulin syrup by applying to the total sum due from theundertaking by way of production levies for the marketing year in question acoefficient to be determined. This coefficient shall be the ratio, reduced by 1,
for the Community between the overall loss recorded for the marketing year
in question under Article 33(1) and (2) and the revenue from the basicproduction levies and B levies due from manufacturers of sugar, isoglucose
and inulin syrup, respectively, for that marketing year.
3. The additional levy shall be paid by the manufacturers in question before
the 15th day of December following the marketing year in respect of which itis payable.
"C1Sugar manufacturers may require that sellers of Community-produced
beet or Community-produced cane, 3as the case may be, refund part of the
additional levy in question which has been collected. Such refund may at mostbe equal to the maximum amount contributed by the beet or cane sellers, as
provided for by Article 33, towards the basic production levy and the B levy
for the marketing year in question multiplied by the coefficient referred to inparagraph 2 of this Article.
The refund referred to in the second subparagraph shall be effected on beet
delivered under the marketing year in question. However, the parties
concerned may agree that the refund shall be effected on beet deliveredunder the following marketing year.
4. For the purposes of the information recorded pursuant to Article 33(2),
account shall be taken of the revenue generated by charging the additional
levy referred to in paragraph 1 of this Article.
5. Detailed rules for the application of this Article, and in particular the
coefficient referred to in paragraph 2, shall be adopted in accordance with the
procedure laid down in Article 48.
Article 35
1. Inulin syrup producers may require sellers of the basic agricultural
product used to produce such inulin syrup to be responsible for part of the
basic production levies, B levies and additional levies charged to theproducers. This share cannot exceed that borne by the sugar-beet growers for
the marketing year concerned; it shall be determined by inter-branch
agreement or by contract with reference to the purchase price of the basicproduct delivered for this purpose under the marketing year in question.
2. Detailed rules for the application of paragraph 1 shall be adopted, where
necessary, in accordance with the procedure laid down in Article 48.
Article 36
1. If it is found, after application of Articles 33 and 34 to the 1994/95
marketing year, that the actual total loss for the said marketing year:
(a) is not fully covered by the proceeds of the production levy and, where
appropriate, the additional levy, the resulting financial burden shall be!B1999R2038 — EN — 25.09.1999 — 000.001 — 29
added to the estimated total loss referred to in Article 33(1)(e) for the
marketing year during which the finding is made;
(b) is less than the proceeds of the production levies and, where appropriate,
the additional levy, an amount equal to the difference shall be deductedfrom the estimated total loss or, as the case may be, added to theestimated total loss resulting from application of Articles 33 and 34 to the
marketing year during which the finding is made.
2. When the amount of the basis production levy is less than the maximum
amount referred to Article 33(3) or when the amount of the B levy is less than
the maximum amount referred to in paragraph 4 of the said Article, revised,where necessary, in accordance with paragraph 5 thereof, the sugar
manufacturers shall be required to pay the beet sellers 60 % of the difference
between the maximum amount of the levy in question and the amount of thelevy to be charged.
The amount to be paid per tonne of beet shall be fixed for the standard quality.The price increases and reductions referred to in Article 6 shall apply to this
amount.
3. Community sugar manufacturers may require from the sellers of cane
produced in the Community the repayment of 60 % of the levy on a quantityof sugar in respect of which the levy concerned is charged.
4. Member States shall ensure, on the basis of the information provided by
the sugar manufacturers, that the payment for the beet satisfies the relevantCommunity provisions.
5. Detailed rules for the application of this Article shall be adopted in
accordance with the procedure laid down in Article 48.
Article 37
1. In contracts for the delivery of beet for the manufacture of sugar, beet
shall be differentiated according to whether the quantities of sugar to be
manufactured from it are:
(a) A sugar;
(b) B sugar;
(c) sugar other than A and B sugars.For each undertaking, sugar manufacturers shall inform the Member State in
which the undertaking concerned produces sugar of the following:
— the quantities of beet referred to under (a) for which pre-sowing contracts
were signed and the sugar content on which these contracts were based,and
— the corresponding estimated yield.The Member States may require additional information.2. Notwithstanding Article 6(2)(b) and Article 39, any sugar manufacturer
who has not signed pre-sowing delivery contracts for a quantity of beet equalto the A quota at the minimum price for A beet shall be required to pay at
least this minimum price for all beet processed into sugar in the undertaking
concerned.
3. An agreement within the trade may, with the agreement of the Member
State concerned, derogate from paragraphs 1 and 2.
4. The Council, acting by a qualified majority on a proposal from the
Commission, shall adopt general rules for the application of this Article.
5. Detailed rules for the application of this Article, and, if necessary, the
criteria to be observed by manufacturers when dividing between beet sellersthe beet quantities to be covered by pre-sowing contracts within the meaningof paragraph 1, shall be adopted in accordance with the procedure laid down
in Article 48.
Article 38
1. It may be decided that sugar or isoglucose used for the manufacture of
certain products shall not be considered as production within the meaning ofthis chapter.!B1999R2038 — EN — 25.09.1999 — 000.001 — 30
2. The Council, acting by a qualified majority on a proposal from the
Commission, shall determine the general rules for the application ofparagraph 1 and the products referred to in that paragraph.
3. Detailed rules for the application of this Article shall be adopted in
accordance with the procedure laid down in Article 48.
Article 39
1. Sugar manufacturers may buy beet intended for the production by the
undertaking concerned of C sugar or of the sugar referred to in Article 38 at aprice lower than the minimum prices for beet referred to in Article 5(1).
2. In respect of the quantity of beet purchased corresponding to the quantity
of sugar:
— disposed of on the internal market, pursuant to Article 31(3), or— carried forward to the following marketing year, pursuant to Article 32,the sugar manufacturers concerned shall, where appropriate, adjust the
purchase price so that it is at least equal to the minimum price for A beet.
3. If necessary, detailed rules for the application of this Article shall be
adopted in accordance with the procedure laid down in Article 48.
CHAPTER V
SYSTEM OF PREFERENTIAL IMPORTS
Article 40
Articles 41, 42 and 43 shall apply to cane sugar, hereinafter referred to as
‘preferential sugar’, falling within CN code 1701, which originates in the
States listed in Annex II and which is imported into the Community under:
(a) Protocol 8 on ACP sugar annexed to the fourth ACP-EC Convention,
(b) the Agreement between the European Economic Community and the
Republic of India on cane sugar.
Article 41
Where the quality of preferential sugar imported pursuant to Article 40 and
purchased by intervention agencies or by other agents appointed by the
Community deviates from the standard quality, the guaranteed prices shall beadjusted by means of price increases and reductions.
Article 42
1. No import duty shall apply to imports of preferential sugar pursuant to
Article 40.
2. Preferential sugar shall enjoy no derogations from the prohibitions
referred to in Article 23(2).
Article 43
1. For marketing years 1995/96 to 2000/2001, adjustment aid shall, as an
intervention measure, be granted to the industry engaged in refiningpreferential raw cane sugar imported for that purpose into the Community
pursuant to Article 40.
2. The aid referred to in paragraph 1 may be granted only in respect of the
quantities eligible under Article 40, which are refined into white sugar at the
refineries referred to in Article 9(4). The aid for the white sugar in questionshall be EUR 0,10 per 100 kilograms, expressed in white sugar.
3. During the period specified in paragraph 1, additional basic aid of
EUR 0,10 per kilograms, expressed as white sugar, shall be granted for therefining, at the refineries referred to in Article 9(4), of raw cane sugar
produced in the French overseas departments, in order to restore the price
balance between the sugar and preferential sugar.!B1999R2038 — EN — 25.09.1999 — 000.001 — 31
4. For a particular marketing year, adjustment aid and additional aid shall be
adjusted in the light of the storage levy fixed for that year and previousadjustments.
5. Pursuant to the second subparagraph of Article 9(4), the aid arrangements
provided for in paragraphs 1 to 4 of this Article may be extended under
conditions to be determined, to raw sugar from beet harvested in theCommunity and refined in the refineries defined in Article 9.
6. Detailed rules for the application of this Article, and in particular
concerning the adjustments referred to in paragraph 4, shall be adopted inaccordance with the procedure laid down in Article 48.
Article 44
1. During the period referred to in Article 43(1), in order to ensure adequate
supplies to the Community refineries referred to in Article 9(4), a reduced
rate of duty, hereinafter referred to as ‘special duty’, shall be levied on
imports of raw cane sugar originating in the States referred to in Article 40and other States pursuant to agreements with those States, hereinafter referred
to as ‘special preferential sugar’ and subject to the conditions laid down
therein, and in particular the minimum purchasing price to be paid by refiners.
2. For the purposes of paragraph 1 and without prejudice to paragraph 5, the
presumed maximum supply needs per marketing year, expressed in white
sugar, of the refining industries in:
(a) Finland, amount to 60 000 tonnes,(b) metropolitan France, amount to 297 000 tonnes,
(c) continental Portugal, amount to 292 000 tonnes,
(d) the United Kingdom, amount to 1 130 000 tonnes.3. Without prejudice to paragraph 5, on the basis of a Community forecast
supply balance for raw sugar for each marketing year or part of a marketing
year, the quantities of raw cane sugar and raw beet sugar harvested in theCommunity with or without distinction of origin available to the refining
industry shall be determined. This balance may be revised during the
marketing year.
For the purposes of determining these quantities, the quantities of sugar from
the French overseas departments and of preferential sugar for direct
consumption to be used in each balance shall be those determined for the
1994/95 marketing year, less forecast local consumption in those departmentsduring the marketing year in question. If the balance shows that the amounts
available will be insufficient to meet the maximum needs laid down in
paragraph 2, the necessary measures shall be laid down to enable the MemberStates concerned to import the shortfall as special preferential sugar under thearrangements for imports at a special rate of duty provided for in the
agreements referred to in paragraph 1.
4. Except in the event of force majeure , where the maximum presumed
needs for a Member State, as laid down in paragraph 2 or after revision within
the meaning of paragraph 5, are exceeded, a quantity equivalent to the excess
shall be subject to the payment of an amount corresponding to the full rate ofduty in force for the marketing year in question, increased by the aid referredto in Article 43 and, where appropriate, by the highest additional rate of duty
recorded during that marketing year.
However, as regards preferential raw sugar and in the event of revision within
the meaning of paragraph 5, the quantities in excess of the revised maximumpresumed needs, within the limit of the quantities laid down in paragraph 2,
may be sold to intervention bodies on the terms stipulated in Article 41 if they
cannot be marketed in the Community.
5. Where Article 26(5) applies, the sum of the preferential maximum needs
referred to in paragraph 2 of this Article shall be reduced for the marketing
year concerned by a quantity equal to the sum of the special preferentialsugars needed to cover the presumed maximum needs determined under theconditions referred to in paragraph 3 of this Article, and reduced by the same
percentage reduction as was applied to the sum of the basic quantities A for
Community sugar pursuant to the said paragraph 5.!B1999R2038 — EN — 25.09.1999 — 000.001 — 32
The reduction of the maximum needs shall be apportioned between the
Member States concerned on the basis of the relationship existing between thequantity fixed for each one of them in paragraph 2 and the sum of thequantities fixed in that paragraph.
6. Detailed rules for the application of this Article, and in particular
concerning the implementation and management of the agreements referredto in paragraph 1, shall be adopted in accordance with the procedure laiddown in Article 48.
CHAPTER VI
GENERAL PROVISIONS
Article 45
The requisite provisions to prevent the market in sugar being disturbed as a
result of an alteration in price levels at the changeover from one marketingyear to the next or during the same marketing year may be adopted in
accordance with the procedure laid down in Article 48.
Article 46
Member States and the Commission shall communicate to each other the
information necessary for implementing this Regulation.
Rules for the communication and distribution of such information shall be
adopted in accordance with the procedure laid down in Article 48.
Article 47
A Management Committee for Sugar (hereinafter called ‘the committee’)
shall be established, consisting of representatives of the Member States and
presided over by a representative of the Commission.
Article 48
1. When the procedure laid down in this Article is to be followed, the
chairman shall refer the matter to the committee either on his own initiative or
at the request of the representative of a Member State.
2. The representative of the Commission shall submit to the committee a
draft of the measures to be taken. The committee shall deliver its opinion on
the draft within a time limit which the chairman may lay down according to
the urgency of the matter. The opinion shall be delivered by the majority laiddown in
"C1Article 205(2) of the Treaty 3in the case of decisions which
the Council is required to adopt on a proposal from the Commission. The
votes of the representatives of the Member States within the committee shall
be weighted in the manner set out in that Article. The chairman shall not vote.
The Commission shall adopt measures which shall apply immediately.However, if these measures are not in accordance with the opinion of the
committee, they shall forthwith be communicated to the Council by the
Commission. In that event the Commission may defer application of themeasures which it has adopted for not more than one month from the date ofsuch communication.
The Council, acting by a qualified majority, may take a different decision
within one month.
Article 49
The committee may consider any other question referred to it by its chairman
either on his own initiative or at the request of the representative of a Member
State.
Article 50
Goods listed in Article 1(1) which are manufactured or obtained from
products to which Article 23(2) and Article 24 of the Treaty do not apply shallnot be admitted to free circulation within the Community.!B1999R2038 — EN — 25.09.1999 — 000.001 — 33
Article 51
Save as otherwise provided in this Regulation, Articles 87, 88 and 89 of the
Treaty shall apply to the production of, and trade in, the products listed in
Article 1(1).
Article 52
This Regulation shall be applied so that appropriate account is taken, at the
same time, of the objectives set out in Articles 33 and 131 of the Treaty.
Article 53
1. Italy shall be authorised, under the conditions set out in paragraphs 2 and
3, to grant adjustment aid in the case referred to in paragraph 2(a) and (b) toproducers of sugar beet and in the case referred to in paragraph 2(c) toproducers of sugar beet as well as, where appropriate, to sugar producers in
the region in question.
2. The aid referred to in paragraph 1 may be granted only in respect of the
corresponding quantity of sugar produced within the limit of the A and B
quotas of each sugar-producing undertaking.
(a) For the production referred to in the first subparagraph in northern Italy,
the unit amount of aid may not exceed:
— in the 1995/96 marketing year: EUR 8,15 per 100 kilograms of white
sugar,
— in the 1996/97 marketing year: EUR 5,43 per 100 kilograms of white
sugar,
— in the 1997/98 marketing year: EUR 3,80 per 100 kilograms of white
sugar,
— in the 1998/99 marketing year: EUR 2,17 per 100 kilograms of white
sugar,
— in the 1999/2000 marketing year: EUR 1,09 per 100 kilograms of
white sugar.
(b) For the production referred to in the first subparagraph in central Italy,
the unit amount of aid may not exceed:
— in the 1995/96 marketing year: EUR 8,15 per 100 kilograms of white
sugar,
— in the 1996/97 marketing year: EUR 5,43 per 100 kilograms of white
sugar,
— in the 1997/98 marketing year: EUR 4,35 per 100 kilograms of white
sugar,
— in the 1998/99 marketing year: EUR 3,26 per 100 kilograms of white
sugar,
— in the 1999/2000 marketing year: EUR 2,17 per 100 kilograms of
white sugar.
(c) For the production referred to in the first subparagraph in southern Italy,
the unit of amount of aid may not exceed:
— in the 1995/96 marketing year: EUR 8,15 per 100 kilograms of white
sugar,
— in the 1996/97 marketing year: EUR 7,61 per 100 kilograms of white
sugar,
— in the 1997/98 marketing year: EUR 7,06 per 100 kilograms of white
sugar,
— in the 1998/99 marketing year: EUR 6,52 per 100 kilograms of white
sugar,
— in the 1999/2000 marketing year: EUR 5,98 per 100 kilograms of
white sugar,
— in the 2000/2001 marketing year: EUR 5,43 per 100 kilograms of
white sugar.!B1999R2038 — EN — 25.09.1999 — 000.001 — 34
3. As regards southern Italy only, Italy may, depending on the marketing
year in question, adjust the aid referred to in point (c) of paragraph 2 wherethis is necessitated by exceptional requirements connected with restructuringthe sugar sector in that part of Italy. Pursuant to Articles 87, 88 and 89 of the
Treaty, the Commission shall assess in particular whether such aid is
consistent with the restructuring plans.
4. For the purposes of paragraphs 1, 2 and 3:
(a) northern Italy means Italy other than the production regions listed under
(b) and (c);
(b) central Italy means Tuscany, Umbria, Latium and the Marches;
(c) southern Italy means Abruzzi, Molise, Apulia, Sardinia, Campania,
Basilicata, Calabria and Sicily.
5. Italy shall notify the Council, in respect of each marketing year, of the
measures taken in application of paragraphs 1, 2 and 3 and, in particular, ofthe distribution of the aid by region and between producers of sugar beet and
producers of sugar in southern Italy.
6. Spain shall be authorised, under the conditions set out below, to grant
adjustment aid to sugar-producing undertakings during the 1993/94 to
1996/97 marketing years.
The aid shall be granted only for A and B sugars, as part of restructuring plans
aimed at rationalising the Spanish sugar industry. These plans shall beforwarded to the Commission. The aid shall be limited to EUR 45,65 millionfor the period referred to in the first subparagraph.
As an intervention measure, 50 % of the aid granted per marketing year shall
be paid by the Community.
7. Spain shall be authorised, under the conditions set out in paragraph 8, to
grant adjustment aid in the case referred to in paragraph 8(a) to producers of
sugar beet and in the case referred to in paragraph 8(b) to producers of sugar
cane in its territory.
8. The aid referred to in paragraph 7 may be granted only in respect of the
corresponding quantity of sugar produced within the limit of the A and Bquotas of each sugar-producing undertaking.
(a) For the production referred to in the first paragraph from beet, the unit
amount of aid may not exceed:
— in the 1995/96 marketing year: EUR 8,67 per 100 kilograms of white
sugar,
— in the 1996/97 marketing year: EUR 5,43 per 100 kilograms of white
sugar,
— in the 1997/98 marketing year: EUR 4,35 per 100 kilograms of white
sugar,
— in the 1998/99 marketing year: EUR 3,26 per 100 kilograms of white
sugar,
— in the 1999/2000 marketing year: EUR 2,17 per 100 kilograms of
white sugar,
(b) For the production referred to in the first paragraph from cane, the unit
amount of aid may not exceed EUR 7,25 per 100 kilograms of whitesugar in the 1995/96 to 2000/2001 marketing years.
9. Spain shall notify the Council, in respect of each marketing year, of the
measures taken in application of paragraphs 7 and 8 and, in particular, of thedistribution of the aid between producers of sugar beet and producers of sugar
cane.
10. During the 1995/96 to 2000/2001 marketing years, the United Kingdom
shall be authorised to grant, to the extent that it deems necessary, adjustment
aid for the refining of preferential unrefined cane sugar.
The granting of the aid referred to in the first subparagraph may take place
only within the limit of the quantities agreed pursuant to the provisionsreferred to by Article 40, such quantities being refined into white sugar in theUnited Kingdom. For this production of white sugar, the maximum amount of
aid shall be set at EUR 0,54 per 100 kilograms of sugar expressed as white
sugar.!B1999R2038 — EN — 25.09.1999 — 000.001 — 35
Article 54
Should special measures be necessary for the implementation within the
framework of this Regulation of obligations arising from Community
membership of the International Sugar Agreement, the Council, acting by a
qualified majority on a proposal from the Commission, shall adopt suchmeasures, which may derogate from the provisions of this Regulation.
Article 55
Regulation (EEC) No 1785/81 is hereby repealed.
References to the said Regulation shall be construed as references to this
Regulation and shall be read in accordance with the correlation table set out inPart A of Annex III.
Article 56
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in all
Member States.!B1999R2038 — EN — 25.09.1999 — 000.001 — 36
ANNEX I
CN code Description of goods
ex 0403 Buttermilk, curdled milk and cream flavoured or containing added fruit, nuts or cocoa, yoghurt,
kephir and other fermented or acidified milk and cream, whether or not concentrated orcontaining added sugar or other sweetening matter
0403 10 51 to 0403 10 99
0403 90 71 to 0403 90 99
0710 Vegetables (uncooked or cooked by steaming or by boiling in water), frozen:0710 40 00 — Sweet corn
0711 Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur
water or in other preservative solutions), but unsuitable in that state for immediate consumption:
0711 90 — Other vegetables: Mixtures of vegetables:
— — Vegetables:
0711 90 30 ———S w e e t corn
ex 1302 Vegetable saps and extracts; pectic substances, pectinates and pectates; agaragar and other
mucilages and thickeners, whether or not modified, derived from vegetable products:
— Mucilages and thickeners, whether or not modified, derived from vegetable products:
1302 31 00 — — Agar-agar
1302 32 — — Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean
seeds or guar seeds:
1302 32 10 — — — from locust beans or locust bean seeds
1302 32 90 — — — from guar seeds
1302 39 00 — — other
1702 50 00 — Chemically pure fructose:
1702 90 10 — — Chemically pure maltose
ex 1704 Sugar confectionery (including white chocolate), not containing cocoa, except liquorice extract
from sub-heading 1704 90 10
1806 Chocolate and other food preparations containing cocoa
ex 1901 Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa or
containing less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewherespecified or included; food preparations of goods of headings 0401 to 0404, not containingcocoa or containing less than 5 % by weight of cocoa calculated on a totally defatted basis, not
elsewhere specified or included:
1901 10 00 — Preparations for infant use, put up for retail sale1901 20 00 — Mixes and doughs for the preparations of bakers’ wares of heading 1905
1901 90 — other:
— — other:
1901 90 91 — — — containing no milk fats, sucrose, isoglucose, glucose or starch or containing less than
1,5 % milk fat, 5 % sucrose (including invert sugar) or isoglucose, 5 % glucose orstarch, excluding food preparations in powder form of goods of headings 0401 to 0404
1901 90 99 — — — other
1902 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared,
such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether ornot prepared:
1902 20 — Stuffed pasta, whether or not cooked or otherwise prepared:!
B1999R2038 — EN — 25.09.1999 — 000.001 — 37
CN code Description of goods
— — other:
1902 20 91 — — — cooked
1902 20 99 — — — other
1902 30 — other pasta
1902 40 — Couscous:
1902 40 90 — — other1904 Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example,
corn flakes ); cereals (other than maize (corn)) in grain form or in the form of flakes or other
worked grains (except flour and meal), pre-cooked, or otherwise prepared, not elsewhere
specified or included
1905 Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa;
communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, ricepaper and similar products:
1905 10 00 — Crispbread
1905 20 — Gingerbread and the like1905 30 — Sweet biscuits; waffles and wafers
1905 40 — Rusks, toasted bread and similar toasted products
1905 90 — other:
#— — other:
1905 90 40 ———W a f fles and wafers with a water content exceeding 10 % by weight
1905 90 45 — — — Biscuits
1905 90 55 — — — Extruded or expanded products, savoury or salted
— — — other:
1905 90 60 ————W i t h added sweetening matter
1905 90 90 ———— other
2001 Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic
acid:
2001 90 — other:2001 90 30 — — Sweet corn ( Zea meys var.saccharata )
2001 90 40 — — Y ams, sweet potatoes and similar edible parts of plants containing 5 % or more by weight
or starch
2004 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other
than products of heading 2006:
2004 10 — Potatoes:
— — other:
2004 10 91 ———I nt h e form of flour, meal or flakes
2004 90 — Other vegetables and mixtures of vegetables:
2004 90 10 — — Sweet corn ( Zea meys var.saccharata )
2005 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen,
other than products of heading 2006:
2005 20 — Potatoes:
2005 20 10 — — In the form of flour, meal or flakes!
B1999R2038 — EN — 25.09.1999 — 000.001 — 38
CN code Description of goods
2005 80 00 — Sweet corn ( Zea meys var.saccharata )
2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not
containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:
— Nuts, ground-nuts and other seeds, whether or not mixed together:
2008 11 — — Ground-nuts:
2008 11 10 ———P eanut butter
2101 Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these
products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffeesubstitutes and extracts, essences and concentrates thereof
2102 Y easts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines
of heading 3002); prepared baking powders:
2102 10 — Active yeasts:
— — Bakers’ yeast:
2102 10 31 — — — Dried
2102 10 39 — — — other
2101 20 — Inactive yeasts; other single-cell micro-organisms, dead:
— — Inactive yeasts:
2102 20 11 — — — In tablet, cube or similar form, or in immediate packings of a net content not exceeding
1k g
2102 20 19 — — — other
ex 2103 Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and
meal and prepared mustard:
2103 10 00 — Soya sauce
2103 20 00 — Tomato ketchup and other tomato sauces
2103 90 — other2105 00 Ice-cream and other edible ice, whether or not containing cocoa
ex 2106 Food preparations not elsewhere specified or included, except for compound alcoholic
preparations of sub-heading 2106 90 20 and flavoured or coloured sugar syrups of sub-headings2106 90 30 to 2106 90 59
2202 Waters, including mineral waters and aerated waters, containing added sugar or other non-
alcoholic beverages, not including fruit or vegetable juices of heading 2009
2205 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances
2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits,
liqueurs and other spirituous beverages:
2208 20 — Spirits obtained by distilling grape wine or grape marc
2208 50 91 and 2208 50 99 — — Geneva2208 70 — Liqueurs and cordials2208 90 41 to 22089078 — — Other spirits, and other spirituous beverages
ex 2520 Gypsum; anhydrite; plasters whether or not coloured, with or without small quantities of
accelerators or retarders:
2520 20 — Plasters
ex 2839 Silicates; commercial alkali metal silicates
2839 90 00 — otherChapter 29 Organic chemicals!
B1999R2038 — EN — 25.09.1999 — 000.001 — 39
CN code Description of goods
Chapter 30 Pharmaceutical products
3203 00 90 — Colouring matter of vegetable or animal origin and preparations based on this matter
ex 3204 Synthetic organic colouring matter and preparations as specified in note 3 to this Chapter based
on this colouring matter
3302 Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of
one or more of these substances, of a kind used as raw materials in industry; other preparationsbased on odoriferous substances, of a kind used for the manufacture of beverages:
3302 10 — Of a kind used in the food or drink industries:3302 10 21 — ———— Containing no milkfats, sucrose, isoglucose, glucose or starch or containing less
than 1,5 % milkfat, 5 % sucrose or isoglucose, 5 % glucose or starch
3302 10 29 ————— other
3307 Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations,
depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or
included; prepared room deodorisers, whether or not perfumed or having disinfectant properties:
— Preparations for perfuming or deodorising rooms, including odoriferous preparations used
during religious rites:
3307 49 00 — — other
3307 90 00 — other
ex 3401 Soap, organic surface-active products and preparations for use as soap, in the form of bars,
cakes, moulded pieces or shapes, whether or not containing soap; paper, wadding, felt andnonwovens, impregnated, coated or covered with soap or detergent:
3401 19 00 — — other
3402 Organic surf ace-active agents (other than soap); surface-active preparations, washing
preparations (including auxiliary preparations) and cleaning preparations, whether or notcontaining soap, other than those of heading 3401
3403 Lubricating preparations (including cutting-oil preparations, bolt or nut release preparations,
anti-rust or anti-corrosion preparations and mould release preparations, based on lubricants) andpreparations of a kind used for the oil or grease treatment of textile materials, leather, furskins orother materials, but excluding preparations containing, as basic constituents, 70 % or more byweight of petroleum oils or of oils obtained from bituminous minerals:
— containing petroleum oils or oils obtained from bituminous minerals:
3403 19 — — other:
3403 19 10 — — — containing 70 % or more by weight of petroleum oils or of oils obtained from
bituminous minerals but not as the basic constituent
3405 Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal, scouring pastes
and powders and similar preparations (whether or not in the form of paper, wadding, felt, non-wovens, cellular plastics or cellular rubber, impregnated, coated or covered with suchpreparations), excluding waxes of heading 3404
3407 00 00 Modelling pastes, including those put up for children’ s amusement; preparations known as
‘dental wax’ or as ‘dental impression compounds’, put up in sets, in packings for retail sale or in
plates, horseshoe shapes, sticks or similar forms; other preparations for use in dentistry, with abasis of plaster
ex Chapter 35 Albuminoidal substances; modified starches; glues; enzymes, except those of headings 3501
and 3505
ex Chapter 38 Miscellaneous chemical products except those of heading 3809
ex Chapter 39 Plastics and articles thereof:
3901 to 3914 — primary forms
ex 6809 Articles of plaster or of compositions based on plaster (boards, sheets, panels, tiles and similar
articles)!
B1999R2038 — EN — 25.09.1999 — 000.001 — 40
ANNEX II
States, countries and territories referred to in Article 40
Barbados
Belize
Côte d’Ivoire
FijiGuyana
India
JamaicaKenya
Madagascar
Malawi
Mauritius
People’ s Republic of the CongoSaint Kitts-Nevis-Anguilla
Suriname
SwazilandTanzania
Trinidad and Tobago
UgandaZambia
Zimbabwe!
B1999R2038 — EN — 25.09.1999 — 000.001 — 41
ANNEX III
Part A
CORRELATION TABLE
Regulation (EEC) No 1785/81 This Regulation
— Chapter I
Article 1(1) Article 1(1)
Article 1(2)(a) Article 1(2)(a)
Article 1(2)(b) Article 1(2)(b)Article 1(2)(c) Article 1(2)(c)Article 1(2)(d) Article 1(2)(d)
Article 24(1), second subparagraph, point (a) Article 1(2)(e)
Article 24(1), second subparagraph, point (b) Article 1(2)(f)Article 24(1), second subparagraph, point (c) Article 1(2)(g)
Article 5(4) Article 1(2)(h) and (i)
Article 24b(5)(a) Article 1(2(j)Article 24b(5)(b) Article 1(2)(k)
Article 24c(5)(c) Article 1(2)(l)
Title I Chapter IIArticle 2 Article 2
Article 3 Article 3
Article 4 Article 4Article 5(1), (2) and (3) Article 5(1), (2) and (3)
Article 5(5) Article 5(4)
Article 6 Article 6Article 7 Article 7
Article 8(1), first subparagraph Article 8(1)
Article 8(1), second subparagraph —Article 8(1), third subparagraph —Article 8(2) Article 8(2)
Article 8(2a) —
Article 8(3) Article 8(3)Article 8(4) Article 8(4)
Article 8(5) Article 8(5)
Article 9(1) Article 9(1)Article 9(2) Article 9(2)
Article 9(3) Article 9(3)
Article 9(4) Article 9(4)Article 9(4b) —
Article 9(4c) —!
B1999R2038 — EN — 25.09.1999 — 000.001 — 42
Regulation (EEC) No 1785/81 This Regulation
Article 9(5) Article 9(5)
Article 9(6), first indent Article 9(6), first indent
Article 9(6), second indent Article 9(6), second indentArticle 9(6), third indent Article 9(6), third indent
Article 9(6), fourth indent Article 9(6), fourth indent
Article 9(6), fifth indent Article 9(6), fifth indentArticle 9(6), sixth indent Article 9(6), sixth indent
Article 9(6), seventh indent —
Article 10 Article 10Article 11(1) Article 11(1)
Article 11(1a) Article 11(2)
Article 11(2) Article 11(3)Article 11(3) Article 11(4)
Article 12 Article 12
Title II Chapter IIIArticle 13 Article 13Article 14 Article 14
Article 15 Article 15
Article 15a Article 16Article 16 Article 17
Article 17 Article 18
Article 17a Article 19Article 17b Article 20
Article 17c Article 21
Article 18 Article 22Article 19 Article 23
Article 20 Article 24
Article 21 Article 25Title III Chapter IV
Article 23(1) Article 26(1)
Article 23(2) Article 26(2)Article 23(3) Article 26(3)
Article 23(4) Article 26(4)
Article 23(4a) Article 26(5)Article 23(5) Article 26(6)Article 24(1), first subparagraph Article 27(1)
Article 24(1a), first subparagraph Article 27(2), first subparagraph
Article 24(1a), second subparagraph Article 27(2), second subparagraph!
B1999R2038 — EN — 25.09.1999 — 000.001 — 43
Regulation (EEC) No 1785/81 This Regulation
Article 24(1a), third subparagraph —
Article 24(1a), fourth subparagraph —
Article 24(1a), fifth subparagraph —Article 24(2) Article 27(3)
Article 24(3) Article 27(4)
Article 24(6) Article 27(5)Article 24(8) Article 27(6)
Article 24a(1) Article 28(1)
Article 24a(2) Article 28(2)Article 24a(3), first subparagraph Article 28(3)
Article 24a(3), second subparagraph —
Article 24a(4) Article 28(4)Article 24a(5) Article 28(5)
Article 24a(6) Article 28(6)
Article 24b(1) to (4) Article 29(1) to (4)Article 24b(6) Article 29(5)Article 25 Article 30
Article 26 Article 31
Article 27(1) Article 32(1)Article 27(2) Article 32(2)
Article 27(2a) Article 32(3)
Article 27(3) Article 32(4)Article 27(4) —
Article 28 Article 33
Article 28a Article 34Article 28b Article 35
Article 29 Article 36
Article 30 Article 37Article 31 Article 38
Article 32 Article 39
Title IIIa —Article 32a —
Title IV Chapter V
Article 33 Article 40Article 34 Article 41Article 35 Article 42
Article 36 Article 43
Article 37(1) Article 44(1)!
B1999R2038 — EN — 25.09.1999 — 000.001 — 44
Regulation (EEC) No 1785/81 This Regulation
Article 37(2), first subparagraph Article 44(2)
Article 37(2), second subparagraph —
Article 37(3) Article 44(3)Article 37(4) Article 44(4)
Article 37(5) Article 44(5)
Article 37(6) Article 44(6)Title V Chapter VI
Article 38 Article 45
Article 39 Article 46Article 40(1) Article 47
Article 40(2) —
Article 41(1) Article 48(1)Article 41(2) and (3) Article 48(2)
Article 42 Article 49
Article 43 Article 50Article 44 Article 51Article 45 Article 52
Article 46 Article 53
Article 47 Article 54Article 48 —
Article 49 —
— Article 55— Article 56
Annex I Annex I
Annex II Annex II— Annex III!
B1999R2038 — EN — 25.09.1999 — 000.001 — 45
Part B
Official Journal
No Page Date
Council Regulation (EEC) No 192/82 of 26 January 1982 L 21 1 29.1.1982
Council Regulation (EEC) No 606/82 of 16 March 1982 L 74 1 18.3.1982
Council Regulation (EEC) No 1482/85 of 23 May 1985 L 151 1 10.6.1985
Council Regulation (EEC) No 3768/85 of 20 December 1985 (only with regard to
Article 1(1))L 362 8 31.12.1985
Council Regulation (EEC) No 934/86 of 24 March 1986 L 87 1 2.4.1986
Commission Regulation (EEC) No 3666/86 of 1 December 1986 L 339 10 2.12.1986
Council Regulation (EEC) No 229/87 of 26 January 1987 L 25 1 28.1.1987Commission Regulation (EEC) No 3993/87 of 23 December 1987 L 377 24 31.12.1987
Council Regulation (EEC) No 1107/88 of 25 April 1988 L 110 20 29.4.1988
Council Regulation (EEC) No 2250/88 of 19 July 1988 L 198 28 26.7.1988Commission Regulation (EEC) No 2306/88 of 26 July 1988 L 201 65 27.7.1988
Council Regulation (EEC) No 1069/89 of 18 April 1989 L 114 1 27.4.1989
Council Regulation (EEC) No 3577/90 of 4 December 1990 (only with regard to
Articles 1 and 2 and Annex V)L 353 23 17.12.1990
Council Regulation (EEC) No 305/91 of 4 February 1991 L 37 1 9.2.1991
Commission Regulation (EEC) No 464/91 of 27 February 1991 (only with regard to
Article 3)L 54 22 28.2.1991
Commission Regulation (EEC) No 61/92 of 10 January 1992 (only with regard to
Article 2)L 6 19 11.1.1992
Council Regulation (EEC) No 3484/92 27 November 1992 L 353 8 3.12.1992
Council Regulation (EEC) No 3814/92 of 28 December 1992 L 387 7 31.12.1992Council Regulation (EEC) No 1548/93 of 14 June 1993 L 154 10 25.6.1993
Council Regulation (EC) No 133/94 of 24 January 1994 L 22 7 27.1.1994
Council Regulation (EC) No 3290/94 of 22 December 1994 (only with regard to Articles
1 and 2 and Annex IV)L 349 105 31.12.1994
Commission Regulation (EC) No 283/95 of 13 February 1995 L 34 3 14.2.1995
Council Regulation (EC) No 1101/95 of 24 April 1995 (only with regard to Article 1) L 110 1 17.5.1995
Commission Regulation (EC) No 1126/96 of 24 June 1996 L 150 3 25.6.1996Council Regulation (EC) No 1599/96 of 30 July 1996 L 206 43 16.8.1996
Council Regulation (EC) No 1148/98 of 2 June 1998 L 159 38 3.6.1998!
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