150 OfficialJournaloftheEuropeanCommunities
25.6.68 OfficialJournaloftheEuropeanCommunities NoL143/1
REGULATION (EEC)No765/68OFTHECOUNCIL
of18June1968
layingdowngeneralrulesfortheproductionrefundonsugarusedinthechemical
industry
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ;
HavingregardtoCouncilRegulationNo1009/67/
EEC1of18December1967onthecommonorganisa­
tionofthemarketinsugar,andinparticularArticle
9(7)thereof;
HavingregardtotheproposalfromtheCommission ;
WhereasArticle9(6)ofRegulation1009/67/EEC
providesforaproductionrefundonsugarandon
syrupscontainingsucroseusedinthemanufacture
ofcertainproductsofthechemicalindustry;
Whereas,toavoidabuses,provisionshouldbemade
fortheproductionrefundtobegrantedonlyifother
usesareexcludedbymeansofcontrols;
Whereascontrolcanbefacilitatediftheproduction
refundispaidonlyonapplicationbytheprocessor;
Whereascontrolswould,incertaincases,bemade
moreeffectiveifprovisionwerealsomadeforpro­
cessorsbeingofficiallyapproved;whereasthe
MemberStateinwhoseterritoryprocessingtakes
placeshouldthereforebefreetodecidewhetheror
nottoapplysuchprovisions;
Whereasthepurposeofrefundsistomakeitpossible
forthechemicalindustrytousesugarproducedin
theCommunityratherthansugaroriginatinginthird
countries;whereas,therefore,whenthisrefundis
beingfixed,significantpricefluctuationsonthe
worldmarketandspecialcircumstances affecting
suppliesofsugarusedintheprocessingindustrymust
betakenintoaccount;whereas,tothisend,the
refundshouldbefixedatregularintervals;whereas
aperiodofthreemonthswouldseemtobethemostappropriatesinceitallowspricetrendstobeob­
servedwhileensuringarelativelystablerefund;
Whereastoavoiddiscouragingtheuseofcereals,
sugarintendedforuseinthemanufactureofthe
productslistedinAnnexI,whichcanalsobemanu­
facturedfrommaize,mustbemadeavailabletothe
chemicalindustryatapricewhichtakesthisfactinto
account;whereas,thispriceshouldthereforebe
fixedat13-30unitsofaccountper100kilogrammes
ofwhitesugarandprovisionmadeforthesubsequent
adjustmentofthatpriceonthebasisofcertainob­
jectivefactorswhichwouldmakeitpossibletoassess
developments intheprocessingindustry;
Whereas,whentheproductionrefundisbeingfixed
forsugarusedinthemanufactureoftheproducts
listedinAnnexII,whichcanalsobemanufactured
frommolasses,therelationshipbetweentheprice
forsugarandthatformolassesshouldbetakeninto
account;
Whereassugarusedinthemanufactureofthepro­
ductslistedinAnnexIIIisnotindirectcompetition
withotherbasicproducts;whereastheproduction
refundcanthereforebebasedonthedifference
betweentheinterventionpriceandworldmarket
prices,thelatterbeingincreasedbyacertainmargin
whichwouldallow,inparticular,forthecustoms
protectiongiventhesechemicalproducts;whereas,
however,whentherefundisbeingfixedeachquarter,
anadjustmentshouldbemadeinrelationtoprice
fluctuationsontheworldmarketonlyundercertain
conditions;
Whereasrawsugarandsyrupscontainingsucrose
canalsobeusedintheprocessingindustry;whereas
provisionshouldthereforebemadeforthepro­
ductionrefundonwhitesugar,adjustedinrelationto
theirrespectiveyields,tobegrantedinrespectof
thesebasicproducts;
Whereas,inviewoftheconditionsunderwhich
penicillinisproduced,whentherefundonthatpro­
ductisbeingdetermined,aspecialconversionratio
shouldbetakenintoaccount;whereas,furthermore,
theprincipleofasimilarconversionratioforfruc­ 1OJNo308,18.12.1967,p.1.

OfficialJournaloftheEuropeanCommunities 151
tose,fixedinaccordancewiththeprocedurelaid
downinArticle40ofRegulationNo1009/67/EEC,
shouldbeestablished :
HASADOPTEDTHISREGULATION :
Article1atalevelwhichdoesnotallownormalcompetition
betweenthechemicalproductsinquestionmanufac­
turedintheCommunityandidenticalorsimilar
importedorexportedproducts.
3.Before1November1971theCouncil,actingon
aproposalfromtheCommissioninaccordancewith
thevotingprocedurelaiddowninArticle43(2)of
theTreaty,shalldecideontheruleswhichshall
applyfrom1February1972toproductionrefunds
ontheproductslistedinAnnexIonthebasisof:
(a)sugarconsumptioninindustry;Aproductionrefundshallbegrantedontheproducts
listedinArticle1(1)(a)ofRegulationNo1009/67/
EECandonthesyrupscontainingsucroselistedin
Article1(1)(d)ofthatRegulation (hereinaftercalled
'basicproducts')whichareusedinthemanufacture
oftheproductsofthechemicalindustrylistedinthe
Annexes (hereinaftercalled'chemicalproducts')
undertheconditionslaiddowninthefollowing
Articles.(b)trendswhichhavebecomeapparentinthetechni­
calfield;
(c)thefinancialconsequences oftheproposed
measures;
(d)competitionfromsyntheticproducts;
(e)thecompetitivepositionofindustriesprocessing
theproductsconcerned.Article2
1.Theproductionrefundshallbegrantedbythe
MemberStateinwhoseterritoryprocessingofthe
basicproductstakesplace.
2.TheMemberStatemaygranttherefundonly
ifcustomscontrol,oranadministrative inspection
offeringequivalentguarantees,ensuresthatthebasic
productsareusedforthepurposeindicatedinthe
applicationreferredtoinArticle3.Article6
Article31.Theproductionrefundon100kilogrammesof
whitesugarusedinthemanufactureoftheproducts
listedinAnnexIIshallbeequaltotheintervention
priceforwhitesugarvalidfortheareainwhichthe
placeofprocessingissituated,less:
(a)thepriceformolassesusedpursuanttoArticle4
(2)ofRegulationNo1009/67/EECtodetermine
receiptsfromthesalesofmolassesforthemarket­
ingyearinquestion,dividedby0-48;and1.Theproductionrefundshallbegrantedonlyto
processorswhoguaranteethatthecontrolprovided
forinArticle2canbecarriedoutatanytimeand
whohavesubmittedanapplicationspecifyingthe
usetowhichthesugaristobeput.
2.TheMemberStateconcernedmaymakeentitle­
menttotherefundsubjecttopriorofficialapproval
beinggrantedtotheseprocessors.(b)0-5unitsofaccount.
2.Theproductionrefundonwhitesugarusedinthe
manufactureoftheproductslistedinAnnexIIshall
not,however,begreaterthantherefundonwhite
sugarusedinthemanufactureoftheproductslisted
inAnnexIII.Article4
Productionrefundsonwhitesugarshallbefixed
quarterlyfortheperiodscommencingon1July,
1October,1Januaryand1April.Article7
Article51.Theproductionrefundon100kilogrammesof
whitesugarusedinthemanufactureoftheproducts
listedinAnnexIIIshallbeequaltothearithmetic
meanoftheinterventionpriceforwhitesugarvalid
fortheCommunityareahavingthelargestsurplus
andtheinterventionpriceforwhitesugarvalidfor
theareainwhichtheplaceofprocessingissituated,
less:
(a)thearithmeticmeanofpricesrecordedonthe
worldmarketoverareferenceperiod;and1.Until31January1972,theproductionrefundon
100kilogrammesofwhitesugarusedinthemanu­
factureoftheproductslistedinAnnexIshallbe
equaltotheinterventionpricevalidfortheareain
whichtheplaceofprocessingissituated,less13-30
unitsofaccount.
2.Theamountindicatedinparagraph 1shallbe
adjustedbytheCouncil,actingonaproposalfrom
theCommissioninaccordancewiththevotingpro­
cedurelaiddowninArticle43(2)oftheTreaty,ifthe
worldmarketpriceforsugarremainsforalongtime(b)2-00unitsofaccount.
2.Thereferenceperiodshallcoverthefirstfifteen
daysofthemonthprecedingthequarterforwhich

152 OfficialJournaloftheEuropeanCommunities
theproductionrefundisfixedandthetwomonths
immediatelyprecedingthatmonth.ofRegulationNo1009/67/EECshallbeequaltoone
hundredthoftherefundapplicablewherewhite
sugarisused,multipliedbythesucrosecontentof
thesyrupused.Worldmarket'prices:
Article9
Forthemanufactureofonekilogrammeofpenicillin
fromthebasicproductsreferredtoinArticle1,
MemberStatesshallgrant,atmost,aproduction
refundinrespectof15-3kilogrammesofwhitesugar.(a)forthequartercommencing 1July1968,shallbe
thespotpricesrecordedforwhitesugaronthe
ParisBourse;
(b)forallsubsequentquarters,shallbethec.i.f.
pricesforwhitesugar.
3.Whentheproductionrefundisbeingfixedfora
quarter,analterationshallbemadeonlyifavari­
ationinthefactorsusedtocalculateitresultsinthe
refundper100kilogrammesofwhitesugarbeing
atleastoneunitofaccounthigherorlowerthanthe
refundvalidforthepreviousquarter.Article10
Article81.Theproductionrefundshallbegrantedonsugar
usedinthemanufactureoffructoseonlyifthe
fructoseisusedforpharmaceutical purposesorin
foodsfordiabetics.
2.Whentheproductionrefundonsugarusedin
themanufactureoffructoseisbeinggranted,a
uniformconversionratiobetweenthevalueofbasic
productandthevalueofthefructoseandanyother
productwhichmaybeobtainedshouldbetakeninto
account.1.Theproductionrefundon100kilogrammesof
rawsugarshallbeequaltoonehundredthofthe
refundapplicablewherewhitesugarisused,multi­
pliedbytheyieldoftherawsugarused,thatyield
beingcalculatedinaccordancewiththeprovisionsof
Article1ofRegulation (EEC)No431/681ofthe
Councilof9April1968determiningthestandard
qualityforrawsugarandfixingtheCommunity
frontiercrossingpointforcalculatingc.i.f.pricesfor
sugar.
2.Theproductionrefundon100kilogrammesof
thesyrupscontainingsucroselistedinArticle1(d)Article11
ThisRegulationshallenterintoforceonthethird
dayfollowingitspublicationintheOfficialJournal
oftheEuropeanCommunities .
Itshallapplyfrom1July1968.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatLuxembourg ,18June1968.
FortheCouncil
ThePresident
E.FAURE
1OJNoL89,10.4.1968,p.3.

OfficialJournaloftheEuropeanCommunities 153
ANNEXI
ListofProducts
CCT
heading
NoDescriptionofgoods
ex17.02D Sorbose
29.04CII Mannitol,sorbitol
ex29.16 Mannitolandsorbitolesters
ex29.16AVIII Glycericacid,glycollicacid,saccharonicacid,isosaccharonic acid
heptaricacid,theirsaltsandesters
ex29.35S Anhydriccompoundsofmannitolandsorbitol(as,forexample
sorbitans)notincludingmaltolandisomaltol
ex29.43B Sorbose,itssaltsandesters,methylglucosides
38.19QII Foundrycorebindersbasedonsyntheticresins
ex38.19QIV Sorbitolcrackingproducts
-
ANNEXII
Listofproducts
CCT
heading
NoDescriptionofgoods
29.16AIV Citricacid,itssaltsandesters
29.23D Amino-acids ,theirsaltsandesters
ANNEXIII
ListofProducts
CCT
heading Descriptionofgoods
No
ex15.11B Glycerol,otherthancrude
ex28.17A Sodiumhydroxide (causticsoda)
ex28.45B Sodiumsilicates
29.04CI Diols
29.04CIII Otherpolyhydricalcohols
29.05AIII Sterolsandinositols
29.15AI Oxalicacid,itssaltsandesters
ex29.15AV Citratonicacid,itaconicacid,succinicacid,theirsaltsandesters
29.16AI Lacticacid,itssaltsandesters

154 OfficialJournaloftheEuropeanCommunities
CCT
heading
NoDescriptionofgoods
29.16AIII Tartaricacid,itssaltsandesters
ex29.16CIII Oxoglutaric,laevulicacid,theirsaltsandesters
ex29.16D Glucuronicacid,ketogluconicacid,theirsaltsandesters
ex29.19A Lactophosphates
29.35A Furfuraldehyde(furfural,furfurol)andbenzofuran (coumarone )
29.35B Furfurylandtetrahydrofurfuryl alcohols
29.35L Nucleicacidsandtheirsalts
ex29.35S Hydroxymethylfurfuraldehyde anditsderivatives,lactide,purine,
pyrimidine,maltol,isomaltol,piperidine,piperazine,lactonesof
glucuronicacid
29.39E Otherhormones
ex29.43B Fructose,itssaltsandesters,lactobionates
29.44A Penicillins
ex32.02 Tanninesters
32.05A Syntheticorganicdyestuffs(includingpigmentdyestuffs)
32.05C Syntheticorganicproductsofakindusedasluminophores
32.05D Productsofthekindknownasopticalbleachingagents,substantive
tothefibre
ex34.01 Translucentsoaps
34.02 Organicsurface-activeagents;surface-activepreparationsandwashing
preparations ,whetherornotcontainingsoap
ex35.03B Gluesderivedfrombones,hides,nerves,tendonsorsimilarproducts
andfishglues
ex38.11 Disinfectants ,insecticides,fungicides,weed-killers ,anti-sprouting
products,ratpoisonsandsimilarproducts,putupinformsorpackings
forsalebyretailoraspreparationsorasarticles(forexample,sul­
phur-treatedbands,wicksandcandles,fly-papers)excludingthose
fallingwithinA,BorCI
ex38.11B Preparationsbasedoncoppercompounds
ex38.19QIV Partingagentsforexposedaggregateconcrete,retardingagentsfor
cementhardening;softeningagents,foundrycorebindersbasedon
sodiumsilicate,expoxypolishers;calciumpolylactate,lactoglycerides
39.01CI Phenoplasts
39.01CII Aminoplasts
ex39.01CVIII Polyalkyleneglycolether