I.

Council Regulation (EEC) No 1785/81 of 30 June 1981 (OJ No L 177, 1.7.1981, p. 4), as last amended by Regulation (EC) No 133/94 (OJ No L 22, 27.1.1994, p. 7). 1. Title II is replaced by the following: ‘TITLE II 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 to presentation 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 to measures taken for the application of Articles 16 and 17. 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 the licence; 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 41: (a) the scheme provided for by this Article 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 his Article, which may lay down in particular a time limit for the issue of licences, shall be adopted. 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 the products listed in Article 1 (1)(a) (raw sugar for refining falling within CN codes 1701 11 10 an 1701 12 10) and Article 1 (1) (c) (molasses) by means of imports from third countries, the Commission may, in accordance with the procedure laid down in Article 41, 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 under consideration, 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 Agriculture concluded in accordance with Article 228 of the Treaty in the framework of the 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 Organization. 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 the Community 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 import prices 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 41.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 inaccordance with Article 5 of the Agreement on Agriculture. Article 15a 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 41. Article 16 1. Tariff quotas for the products listed in Article 1 resulting from agreements concluded in the framework of the Uruguay Round of multilateral trade negotiations shall be opened and administered in accordance with detailed rules adopted under the procedure laid down in Article 41. 2. Quotas shall be administered by applying one of the following methods or a combination of them: — method based on chronological order of the lodgment 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 to safeguard the equilibrium of that market, whilst at the same time possibly drawing 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 Uruguay Round 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 17 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 goods listed in Annex I, on the basis of quotations or prices on the world market for those products listed in Article 1 (1) (a) and (c),and within the limits resulting from agreements concluded in accordance with Article 228 of the Treaty, the difference between those quotations or prices and prices in the Community may 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 subheading 1702 30 91 of the Combined Nomenclature; (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. 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 there sources available, account being taken of the efficiency and structure of Community exports without, however, creating discrimination between large 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. Refunds shall be fixed in accordance with the procedure laid down in Article 41. 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 on its 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 17a, 17b and 17c 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 ►C4 admitted under processing arrangements. ◄ 7. Refunds on products listed in paragraph 1 and exported without further processing shall only be granted on application an on presentation of the relevant export licence. 8. The refund applicable to exports of products listed in Article 1exported 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 the same 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. ►C2 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 the procedure laid down in Article 16 of Regulation (EC) No 3448/93. 10. ►C2 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 the procedure laid down in Article 41. 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 refund was fixed, without prejudice to paragraph 6 (b). However, exceptions may be made to this rule in accordance with the procedure laid down in paragraph 41,provided that conditions are laid down which offer equivalent guarantees. Supplementary provisions may be laid down in accordance with the procedure provided for in Article 41. 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 the case, they have been: (a) obtained from sugar beet or sugar cane harvested within the Community; (b) imported into the Community in accordance with Article 33; (c) obtained from one of the products imported pursuant to the provisions of paragraph (b). 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 of Community origin or which have not been obtained from sugars imported into the Community ►C2 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 228 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 41. However, the rules governing the application of paragraph 6 for the products referred to in Article 1 exported in the form of goods listed in the Annex shall be adopted in accordance with the procedure provided for in Article 16 of Regulation (EC) No 3448/93. Article 17a 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 41 if it is found that no surplus sugar is available 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 into account: — 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 the exportation of this type of sugar, — the costs of transporting sugar ►C5 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 there fund; (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 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 the invitation in question shall be fixed in accordance with the procedure laid down in Article 41 within three working days following the expiry of the time limit and in the light of the tenders received. When the maximum amount is being calculated, account shall be taken of the supply situation and 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 within the Community and prices on the world market into account and where exports are for a specific destination, the competent authorities of the Member States maybe 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 there fund 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; (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 the provisions 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 17b 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 41 if it is found that no surplus molasses is available within the Community for export on the basis of world market prices. In that event, no refund shall be granted. 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 of the 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 authorization laying down the terms of the invitation to tender. These terms must guarantee equal access for all persons established within the Community. Article 17c 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 41 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 amount arrived 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 ▼C4 — the use of third country products admitted under processing arrangements. ▼B 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 for the products listed in Annex I 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 18 1. To the extent necessary for the proper working of the common organization of the markets in the sugar sector, the Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, may prohibit in whole or in part the use of 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 ►C4 disturbed by in ward processing arrangements, ◄ the Commission shall, at the request of a Member State or on its own initiative, decide upon the necessary measures; the Council and the Member 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 within a 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 with in three months, the Commission decision shall be deemed to have been repealed. Article 19 1. The general rules for the interpretation of the combined nomenclature and the special rules for its application shall apply to the tariff classification of products covered by this Regulation; the tariff nomenclature resulting from the application of this Regulation shall bincorporated 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 third countries: (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 20 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 in question. 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 the marketing 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 voting procedure laid down in Article 43 (2) of the Treaty, may decide to grant an import 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 43 (2) of the Treaty, shall decide to grant the import subsidy and determine the conditions for its application. Those conditions shall relate in 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 41: (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 in accordance with the procedure laid down in Article 41. 4. The amounts stemming from the application of this Article shall be fixed by the Commission. However, the export levies determined by tendering shall be fixed in accordance with the procedure laid down in Article 41. Article 21 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, serious disturbance likely to jeopardize the achievement of the objectives set out in Article 39 of the Treaty, appropriate measures maybe 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 43 (2) of the Treaty on a proposal from the Commission, shall adopt the general rules for implementing this paragraph and shall define the cases and limits within which the Member States may take protective measures. 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 the necessary 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, is 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 which they 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 228(2) of the Treaty.’ 2. Article 26 shall be amended as follows: (a) In paragraph 1 the last sentence shall be replaced by: ‘Articles 8, 9, 17 and 20 shall not apply to such sugar and Articles 9, 17 and 20 to such isoglucose and insulin syrup’ (b) The reference to ‘Article 18’ in paragraph 2 shall be replaced by a reference to ‘Article 20’. 3. Article 35 (1) shall be amended as follows: (a) Paragraph 1 shall be replaced by the following: ‘1. No import duty shall apply to imports of preferential sugar.’ (b) In paragraph 2, ‘referred to in Article 21 (2)’ shall be replaced by ‘referred to in Article 19 (2)’.