140 OfficialJournaloftheEuropeanCommunities
NoL55/10 OfficialJournaloftheEuropeanCommunities 10.3.70
REGULATION (EEC)No442/70OFTHECOMMISSION
of9March1970
layingdowndetailedrulesfortheapplicationofthesystemofoffsettingstoragecosts
forsugar
THECOMMISSION OFTHEEUROPEAN COM­
MUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ;
HavingregardtoCouncilRegulationNo
1009/67/EEC1of18December1967onthecommon
organisationofthemarketinsugar,aslastamended
byRegulation (EEC)No2485/69,2andinparticular
Article8(3)thereof;
WhereasCouncilRegulation(EEC)No750/683of18
June1968layingdowngeneralrulesforoffsetting
storagecostsforsugar,aslastamendedby
Regulation (EEC)No1394/69,4providesforthe
reimbursement ofstoragecostsnotonlytoevery
sugarmanufacturer towhomabasicquotahasbeen
allocatedandtoeverysugarrefiner,butalsotoevery
manufacturer ofpowdered,lumporcandysugaror
specialisedsugartraderwhohasbeenapprovedby
theMemberStateonwhoseterritoryheis
established ;
Whereastheextensionofreimbursement toinclude
thesetradesmakesitneccessarytodefinetheconcepts
ofamanufacturer ofpowdered,lumporcandysugar
and0aspecialisedsugartrader;whereas,forthis
purpose,itisnecessarytolaydowncertainobjective
criteriatobeusedforassessment,inparticularas
regardssubstantialparticipationinstoring;
Whereas,inordernottohinderpossibledevelopment
oftheseactivities,anyapplicantlikelytofulfilthe
requiredconditionsinthefutureshouldbeapproved;
Whereas,inordertoavoidabuse,approvalmustbe
withdrawn,whereappropriateretroactively,whentheconditionsforgrantingthatapprovalarenot
fulfilledandwhenitcannotbeexceptedthatthey
willbefulfilledinthefuture;
WhereaseachMemberStatehasitsownparticular
situationandshouldthereforebegivenadditional
discretiontoimposefurtherconditionsand,onthe
basisofthese,towithdrawitsapproval;
Whereas,pursuanttoRegulation (EEC)No750/68,
reimbursements aregrantedonlyforquantitiesof
whiteandrawsugarproducedwithinthemaximum
quotaandstoredinawarehouseapprovedbythe
MemberStateonwhoseterritorythewarehouseis
situated;whereas,therefore,itisnecessarytolimit
approvalinrelationtothefacilitiesforsupervision
byMemberStatesandtocompelthoseentitledto
reimbursements tofacilitatesuchsupervision ;
Whereas,inclusioninthesystemofoffsettingstorage
costsofcertainsyrupswithinthemeaningofArticle
8ofRegulationNo1009/67/EEC,whichmustlater
beprocessedundersupervisionintosugarinthesolid
state,necessitatessuchsyrupsbeingstoredinspecial
reservoirs;
Whereas,inordernottofavourmanufacturers
producingpartoftheirsugarfromsyrupratherthan
thosewhoproduceitonlyfrombeetwhichhasbeen
storedsometimesforaperiodofuptoonemonth,
reimbursement shouldnotbegrantedforsuchsyrups
forthemonthofproduction;
Whereasthereimbursements andtheleviesforsyrups
shouldbecalculatedaccordingtotheextractable
sugarcontentinordertoavoidreimbursement for
thestoringofthemolassescontainedinthosesyrups;
whereastheextractablesugarcontentisdetermined
accordingtothestandardmethodfixeduniformlyfor
theCommunityinArticle1(4)ofCommission
Regulation (EEC)No142/695of25January1969 1OJNo308,18.12.1967,p.1.
2OJNoL314,15.12.1969,p.6.
3OJNoL137,21.6.1968,p.4.
4OJNoL179,21.7.1969,p.3. 5OJNoL20,27.1.1969,p.1.

OfficialJournaloftheEuropeanCommunities 141
practicesinforceinMemberStates,amaximumtime
limitofthreemonthsshouldbetakenasabasis;
Whereasthereimbursement ofstoragecostsapplies
onlytothequantitiesofwhitesugar,ofrawsugar
andofsyrupswithinthemeaningofArticle8of
RegulationNo1009/67/EECproducedwithinthe
limitofthemaximumquota;whereas,however,ina
casewheretheprovisionsofArticle30ofRegulation
No1009/67/EECarenotapplicableitisonlyknown
towardstheendofthesugarmarketingseason
whetheranyquantitiesofsugarhavebeenproduced
inexcessofthemaximumquota;whereas,forthat
reason,themanufacturers havebeenable,
meanwhile,tobenefitfromareimbursement to
whichtheywerenotentitled;whereas,therefore,
measuresshouldbetakenfortherepaymentofsuch
reimbursement forthequantitiesinquestion;
WhereasArticle8ofRegulation (EEC)No750/68
laysdownthatthelevyshallbedueonadatewithin
theperiodbetweenthedateonwhichthesugarin
questionisdisposedofandtheendofthemonth
followingthatofdisposal;whereastheconcept
'disposal'shouldbemoreclearlydefined;
Whereasamanufacturermayberequiredtopaythe
levywhileatthesametimebeingentitledtocollect
thereimbursement ;whereasconsequentlymanufac­
turersshouldhavetherighttosetoffleviesand,
reimbursements ;
Whereas,toenableMemberStatestoexercise
effectivesupervision everyclaimantmust
communicate thenecessaryinformationtothe
MemberState;
WhereasthemeasuresprovidedforinthisRegulation
areinaccordancewiththeOpinionofthe
ManagementCommitteeforSugar;layingdowncertaindetailedrulesfortheapplication
ofthequotasystemforsugar;
Whereasitisnottheobjectofthesystemof
offsettingstoragecoststooffsetthecostsofpacking
thesugar;whereas,therefore,itisthenetweightof
quantitiesstoredordisposedofthatshouldbetaken
intoaccountwithregardtoreimbursements and
levies;
Whereasthemethodofcalculatingreimbursements
andleviesmustnot,inthecaseofrawsugar,give
risetodistortionofcompetitionbetweenthatsugar
andwhitesugar;whereas,tothisend,rawsugar
shouldbeexpressedintermsofwhitesugar,taking
accountoftheyieldformulalaiddowninCouncil
Regulation (EEC)No431/681of9April1968laying
downthestandardqualityforrawsugarandfixing
theCommunityfrontiercrossingpointforcalculating
c.i.f.pricesforsugar;
Whereasthesecondsubparagraph ofArticle3(1)of
Regulation (EEC)No750/68providesthat,inspecial
circumstances ,specialprovisionsmaybeadoptedto
dealwithsugarintransitatthebeginningofa
month;whereassuchspecialcircumstancesprevailin
respectofrawsugarproducedinFrenchoverseas
departments,inthatpracticallynoneofthe
productionisconsumedonthespot;whereasthe
longdistancebetweenthesedepartmentsandEurope
meansthattransporttakesseveralweeks;whereas,
therefore,itisunavoidablethatsuchsugar,asa
generalrule,shouldbeintransitonthefirstdayofa
calendarmonth;whereas,inviewoftheminimum
timetakenupintransport,reimbursement shouldbe
limitedtolessthanonemonth;
Whereas,underArticle5ofRegulation (EEC)No
750/68,financingcostsaretobetakenintoaccount
forfixingtheamountofreimbursement ;whereas
thereforeitisappropriatenottograntthe
reimbursement ofstoragecostswhentherefundin
respectofthesugarhasbeenfinancedinadvance
pursuanttoCouncilRegulation (EEC)No441/692of
4March1969layingdownfurthergeneralruleson
grantingexportrefundsforproductscomingundera
commonpricesystem,exportedinthenaturalstate
orintheformofgoodsnotlistedinAnnexIItothe
Treaty,aslastamendedbyRegulation (EEC)No
1905/693;
Whereasclaimantsshouldbeabletocollect
reimbursements assoonaspossible;whereas,
therefore,rapidpaymentofreimbursements should
beenvisaged;whereasinviewofadministrativeHASADOPTEDTHISREGULATION :
Article1
1.ApprovalasreferredtoinArticle2(1)of
Regulation (EEC)No750/68shallbegrantedby
MemberStatestoanymanufacturer ofpowdered,
lumporcandysugaroranyspecialisedsugartrader
withinthemeaningofthisRegulation.
2.ForthepurposesofthisRegulation :
(a)'amanufacturer ofpowdered,lumporcandy
sugar'meansaperson:
—whoisengagedinmakingfromsugarinthe
unalteredstateonlysugarsfallingwithin
headingNo17.01or17.02oftheCommon1OJNoL89,10.4.1968,p.3.
2OJNoL59,10.3.1969,p.1.
3OJNoL247,1.10.1969,p.1.

142 OfficialJournaloftheEuropeanCommunities
canbecarriedoutandonconditionthattheowner
ofthesugarorsyrupensuresthatsuchsupervisionis
alwayspossible.
Article3
Thereimbursement andthelevyshallbefixedper
100kgofwhitesugar.Theyshallbeuniformfor
eachunitofweightwhateverthequalityofthewhite
sugarinquestion.
Article4CustomsTariffwhichhavedifferentphysical
characteristics fromthesugarusedinthe
process;and
—whosestocksduringamarketingyear,
recordedattheendofeachmonthin
approvedwarehouses,areonaveragenotless,
than200metrictons;
(b)'aspecialisedsugartrader'meansaperson:
—oneofwhosemainactivitiesconsistsof
wholesaledealinginsugarandwhopurchases
aminimumquantityof10000metrictonsof
Communitysugarineachmarketingyear;
—whodoesnotcarryonaretailbusinessin
sugar;and
—whosestocksduringamarketingyear,
recordedattheendofeachmonthin
approvedwarehouses,areonaveragenotless
than500metrictons.
MemberStatesmayimposeadditionalconditionsfor
grantingtheapproval.'.
3.Approvalshallbegrantedtoanyapplicantwho
islikelytofulfilinthefuturetheconditionssetoutin
paragraph2.
4.Fromtheendofthemarketingyear1970/71
onwards,exceptincasesofforcemajeure,approval
shallbewithdrawnwithretroactiveeffectforthelast
marketingyear;
(a)frommanufacturers ofpowdered,lumporcandy
sugarwhosestocks,recordedattheendofeach
monthinapprovedwarehouses,areonaverage
lessthan160metrictonsforsuchlastmarketing
year;
(b)fromspecialisedsugartraderswhosestocks
recordedattheendofeachmonthinapproved
warehouses,areonaveragelessthan400metric
tons,forsuchlastmarketingyear.
Exceptwheretheconditionsreferredtoinparagraph
3arefulfilled,approvalshallbewithdrawnwhen,for
thelastsugarseason,theconditionsreferredtoin
thefirstsubparagraphofparagraph2havenotbeen
fulfilled.Approvalmaybewithdrawnwheneverthe
conditionssetoutinthesecondsubparagraph of
paragraph2arenotfulfilled.1.Tocalculatethereimbursement forrawcane
sugar,thissugarshallbeconvertedintowhitesugar
bymultiplyingthequantityofrawsugarbythe
coefficient0*98.
Tocalculatethereimbursement forrawbeetsugar,
thissugarshallbeconvertedintowhitesugar
accordingtooneofthefollowingmethodsatthe
choiceoftheMemberStateconcerned :
(a)bymultiplyingthequantityofrawsugarbythe
coefficient0-92;or
(b)onthebasisofitsyieldascertainedaccordingto
theprovisionsofArticle1ofRegulation (EEC)
No431/68.
2.Tocalculatethecontributionforrawsugar,this
sugarshallbeconvertedintowhitesugaronthebasis
ofitsyieldascertainedaccordingtotheprovisionsof
Article1ofRegulation (EEC)No431/68.
3.Tocalculatethereimbursement andthelevy,
thenetweightofthequantityofsugarshallbetaken
asabasis.
Article5
1.Reimbursement ofstoragecostsshallbegranted
inrespectofcanesugarfromtheFrenchoverseas
departments ,whichisintransitat0.00hoursonthe
firstdayofacalendarmonthandwhich,onarrival,
isstoredinanapprovedwarehouse .Reimbursement
shallbegrantedonlytoclaimantscomingwithin
Article2(1)ofRegulation (EEC)No750/68who
weretheownersofthesugaratthetimeofstorageas
referredtointheprecedingparagraph.
2.However,forthesugarreferredtoinparagraph
1,reimbursement shallbelimitedtoaperiodequalto
threequartersofonemonth.Article2
ApprovalasreferredtoinArticle3(1)ofRegulation
(EEC)No750/68shallonlybegrantedbyMember
Statestowarehouseswherethenecessarysupervision

OfficialJournaloftheEuropeanCommunities 143
Article6 (a)exitofthesugarfromthefactoryinwhichitwas
made,wherethesugardoesnotenteran
approvedwarehouseofthemanufacturer ofthe
sugar;
(b)exitfromtheapprovedwarehouseofthesugar
manufacturer ;however,transferofthesugar
fromoneapprovedwarehousetoanother
approvedwarehouseofthesamemanufacturer
shallnotbeconsideredasdisposal;
(c)transferofpropertyrightstothesugartoanother
claimantforreimbursement ofstoragecosts
withoutexitofthesugarfromtheapproved
warehouseofthemanufacturer ;
(d)processingbythemanufacturerofthesugarand
syrupsintoproductsotherthanthosefalling
withinheadingNo17.01oftheCommon
CustomsTariff;
(e)denaturingofthesugar;
(f)exit,asaresultoftransferofownership,of
syrupsfromthereservoirsofthemanufacturer
referredtoinArticle6?
(g)themomentatwhichthesugarorsyrupsbecome
subjecttooneofthesystemsreferredtoin
Article2or3ofRegulation (EEC)No441/69.1.Thereimbursement andthelevyforsyrups
withinthemeaningofArticle8ofRegulationNo
1009/67/EECshallbecalculatedonthebasisoftheir
extractablesugarcontent.
Theextractablesugarcontentshallbedetermined
accordingtotheprovisionsofArticle1(4)of
Regulation (EEC)No142/69.
2.Forreimbursement forsyrup,thequantitytobe
takenintoconsiderationforonemonthshallequal
thearithmeticalaverageofthequantitiesheldinstore
atthebeginningandattheendofthemonthin
question,thelatterquantityhavingthequantity
producedduringthemonthinquestiondeducted
fromit.Ifthequantityproducedduringthemonthin
questionisgreaterthantheamountheldinstoreat
theendofthatmonth,thelatterquantityshallbe
consideredasbeingequaltozero.
3.ForthepurposesofArticle8ofRegulationNo
1009/67/EEC,'certainsyrupsproducedpriortothe
crystallisingstage'meanssyrupsfallingwithin
headingNo17.02oftheCommonCustomsTariff
whicharelaterprocessedintosugarinthesolidstate
undercustomscontroloranadministrative control
providingequivalentsecurityandwhicharestoredin
specialreservoirsseparatedfromthesugar
manufacturingplant. 3.Eachmanufacturer maysetoffhis
reimbursements againsthislevies.
Article7
Article10Reimbursement shallnotbegrantedforproducts
subjecttooneofthesystemsreferredtoinArticles2
and3ofRegulation (EEC)No441/69.
Article81.Allclaimantsforreimbursement shall
communicate atthelatestonthefifteenthdayof
eachmonthtotheMemberStateinquestion:
(a)thetotalofthenetquantitiesofsugarandsyrup
qualifyingforthereimbursement heldinhisstore
atmidnightonthelastdayofthemonth
precedingthatofthecommunication ;
(b)abreakdownofthequantitiesreferredtoin(a)
amongthevariouswarehousesinwhichhissugar
andsyrupsarestored.WhereaMemberStatedecidesthattheprovisionsof
Article30ofRegulationNo1009/67/EECshallnot
applytoitsterritory,itshalldemandrepaymentof
anyreimbursement madeforthequantitiesofsugar
which,byreasonofitsdecision,arefoundtohave
beenproducedinexcessofthemaximumquota.
Article92.Eachmanufacturer shallcommunicate ,together
withtheinformationreferredtoinparagraph1,and
brokendownaccordingtotheprovisionsofArticle9
(2),thequantitiesdisposedofduringthemonth
precedingthatofthecommunication andproduced
withinhismaximumquota.1.Reimbursement ofstoragecostsshallbemade
atthelatestattheendofthethirdmonthfollowing
thatforwhichthereimbursement isdue.
2.Forcalculatingsumsrelatingtothelevyandas
longasthelatterisnotalreadydue,'disposal',for
thepurposesofArticle8ofRegulation (EEC)No
750/68,means:3.MemberStatesmayrequireadditional
informationtobecommunicated tothem.

144 OfficialJournaloftheEuropeanCommunities
Article11 Article12
ThisRegulationshallcomeintoforceonthethird
dayfollowingitspublicationintheOfficialJournal
oftheEuropeanCommunities .CommissionRegulation (EEC)No774/681of24
June1968establishingdetailedrulesofapplication
foroffsettingstoragecostsforsugar,aslastamended
byRegulation (EEC)No2565/69,2ishereby
repealed.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,9March1970.
FortheCommission
ThePresident
JeanREY
1OJNoL142,25.6.1968,p.6.
2OJNoL321,23.12.1969,p.17.