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( 1 ) OJ NO C 85 , 10 . 4 . 1978 , P . 43 .

( 2 ) OJ NO L 359 , 31 . 12 . 1974 , P . 1 .

( 3 ) OJ NO L 94 , 8 . 4 . 1978 , P . 1 .

COUNCIL REGULATION ( EEC ) NO 1396/78

OF 20 JUNE 1978

AMENDING REGULATION ( EEC ) NO 3330/74 ON THE COMMON ORGANIZATION OF THE MARKET IN SUGAR

THE COUNCIL OF THE EUROPEAN

COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY , AND IN PARTICULAR ARTICLE 43 THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION ,

HAVING REGARD TO THE OPINION OF THE EUROPEAN PARLIAMENT ( 1 ),

WHEREAS ARTICLE 8 OF COUNCIL REGULATION ( EEC ) NO 3330/74 OF 19 DECEMBER 1974 ON THE COMMON ORGANIZATION OF THE MARKET IN SUGAR ( 2 ), AS LAST AMENDED BY REGULATION ( EEC ) NO 705/78 ( 3 ), WHICH ESTABLISHES THE SYSTEM OF REIMBURSEMENT OF STORAGE COSTS , DOES NOT APPLY TO SYRUPS PRODUCED AFTER THE CRYSTALLIZING STAGE MANUFACTURED FROM BEET OR CANE HARVESTED IN THE COMMUNITY OR TO SYRUPS PRODUCED FROM PREFERENTIAL SUGAR ; WHEREAS MARKET TRENDS IN THESE SYRUPS SHOW A SIGNIFICANT INCREASE IN DEMAND WHICH REQUIRES CONSTANTLY INCREASING PRODUCTION AND STORAGE ; WHEREAS FOR THIS REASON THE SYSTEM OF REIMBURSEMENT OF STORAGE COSTS SHOULD BE EXTENDED TO COVER THESE SYRUPS ;

WHEREAS ARTICLE 38 ( 2A ) OF REGULATION ( EEC ) NO 3330/74 AUTHORIZES ITALY TO GRANT DURING THE 1977/78 SUGAR YEAR ADAPTATION AID OF 9.9 UNITS OF ACCOUNT WHICH IS HIGHER THAN THE AID PROVIDED FOR IN PARAGRAPH 1 OF THAT ARTICLE ; WHEREAS , SINCE THE GROUNDS FOR THIS MEASURE STILL EXIST , A SIMILAR MEASURE SHOULD BE ADOPTED FOR THE 1978/79 SUGAR YEAR BUT SHOULD BE ADAPTED TO THE CURRENT SITUATION IN THE BEET AND SUGAR SECTOR IN ITALY ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

ARTICLE 8 OF REGULATION ( EEC ) NO 3330/74 SHALL BE REPLACED BY THE FOLLOWING :

' ARTICLE 8

1 . SUBJECT TO ARTICLE 31 ( 2 ), THE STORAGE COSTS IN RESPECT OF :

- WHITE SUGAR ,

- RAW SUGAR ,

- SYRUPS OBTAINED PRIOR TO THE CRYSTALLIZING STAGE , AND

- SYRUPS OBTAINED BY DISSOLVING CRYSTALLIZED SUGAR ,

MANUFACTURED FROM BEET OR CANE HARVESTED IN THE COMMUNITY SHALL BE REIMBURSED AT A FLAT RATE BY THE MEMBER STATES .

THE STORAGE COSTS SHALL ALSO BE REIMBURSED AT A FLAT RATE BY THE MEMBER STATES IN THE CASE OF PREFERENTIAL SUGAR :

- IMPORTED IN THE FORM OF RAW SUGAR ,

- IMPORTED IN THE FORM OF WHITE SUGAR ,

AND IN THE CASE OF

- WHITE SUGAR PRODUCED BY THE REFINING OF PREFERENTIAL RAW SUGAR IN THE COMMUNITY ,

- SYRUPS OBTAINED AFTER THE DISSOLVING OF PREFERENTIAL SUGAR IN THE COMMUNITY ,

- SYRUPS OBTAINED DIRECTLY FROM PREFERENTIAL RAW SUGAR IN THE COMMUNITY .

THE MEMBER STATES SHALL , ACCORDING TO THE CIRCUMSTANCES , IMPOSE A LEVY :

( A ) ON EACH SUGAR MANUFACTURER , AS APPROPRIATE :

- BY UNIT OF WEIGHT OF SUGAR PRODUCED ,

- BY UNIT OF WEIGHT OF SYRUPS REFERRED TO IN THE FIRST SUBPARAGRAPH , PRODUCED PRIOR TO THE CRYSTALLIZING STAGE AND MARKETED IN THEIR NATURAL STATE ;

( B ) ON EACH IMPORTER OF PREFERENTIAL SUGAR , BY UNIT OF WEIGHT OF SUGAR IMPORTED AND MARKETED IN ITS NATURAL STATE ;

( C ) ON EACH REFINER OF PREFERENTIAL SUGAR , BY UNIT OF WEIGHT OF REFINED SUGAR , THE MANUFACTURE OF SYRUPS OBTAINED DIRECTLY FROM PREFERENTIAL RAW SUGAR BEING REGARDED , FOR THE PURPOSES OF IMPOSING THE LEVY , AS REFINING .

THE AMOUNT OF THE REIMBURSEMENT SHALL BE THE SAME FOR THE ENTIRE COMMUNITY . THIS RULE SHALL ALSO APPLY IN RESPECT OF THE LEVY APPLICABLE IN EACH OF THE CASES REFERRED TO IN ( A ) ON THE ONE HAND AND ( B ) AND ( C ) ON THE OTHER HAND .

2 . PARAGRAPH 1 SHALL NOT APPLY TO FLAVOURED OR COLOURED SUGAR FALLING WITHIN HEADING NO 17.01 NOR TO FLAVOURED OR COLOURED SYRUPS FALLING WITHIN SUBHEADING 21.07 F IV OF THE COMMON CUSTOMS TARIFF .

3 . THE COUNCIL , ACTING BY A QUALIFIED MAJORITY ON A PROPOSAL FROM THE COMMISSION , SHALL :

( A ) ADOPT THE GENERAL RULES FOR THE IMPLEMENTATION OF THIS ARTICLE ;

( B ) FIX THE REIMBURSEMENT AMOUNT SIMULTANEOUSLY WITH THE DERIVED INTERVENTION PRICES .

THE AMOUNT OF THE LEVY SHALL BE FIXED ANNUALLY IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 36 . THE OTHER DETAILED RULES FOR IMPLEMENTATION OF THE PRESENT ARTICLE SHALL BE LAID DOWN IN ACCORDANCE WITH THE SAME PROCEDURE . '

ARTICLE 2

ARTICLE 38 ( 2A ) OF REGULATION ( EEC ) NO 3330/74 SHALL BE REPLACED BY THE FOLLOWING :

' 2A . BY WAY OF DEROGATION FROM PARAGRAPHS 1 AND 2 , DURING THE 1978/79 SUGAR YEAR THE AMOUNT REFERRED TO IN THE FIRST SUBPARAGRAPH OF PARAGRAPH 1 SHALL BE 11 UNITS OF ACCOUNT , A PORTION OF WHICH MAY BE GRANTED TO THE PROCESSING INDUSTRY . SUCH A GRANT SHALL BE MADE ONLY WITH RESPECT TO THE QUANTITY OF SUGAR BEET USED TO PRODUCE 1 400 000 TONNES OF WHITE SUGAR . '

ARTICLE 3

THIS REGULATION SHALL ENTER INTO FORCE ON THE DAY OF ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

IT SHALL APPLY FROM 1 JULY 1978 .

THIS REGULATION SHALL BE BINDING IN ITS ENTIRETY AND DIRECTLY APPLICABLE IN ALL MEMBER STATES .

DONE AT LUXEMBOURG , 20 JUNE 1978 .

FOR THE COUNCIL

THE PRESIDENT

P . DALSAGER