576 OfficialJournaloftheEuropeanCommunities
NoL289/2 OfficialJournaloftheEuropeanCommunities 29.11.68
REGULATION (EEC)No1898/68OFTHECOUNCIL
of26November1968
introducingmeasurestodealwithbasicquotasforsugarintheeventofundertakings
beingmergedortransferredoroffactoriesbeingtransferredorleased
HASADOPTEDTHISREGULATION :
Article1
1.ForthepurposesofthisRegulation,
(a)'mergerofundertakings'means:
theconsolidation intoasinglesugar-producing
undertakingsituatedontheterritoryofaMem­
berStateoftwoormoresugar-producing under­
takingssituatedontheterritoryofthatsame
MemberState;
(b)'transferofanundertaking'means:
transferofthebusinessofasugar-producing
undertakingsituatedontheterritoryofaMem­
berStatetooneormoresugar-producing un­
dertakingssituatedontheterritoryofthatsame
MemberState;THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ;
HavingregardtoCouncilRegulationNo1009/67
EEC1of18December1967onthecommon
organisationofthemarketinsugar,andinparticular
Article23#(3)thereof; t
HavingregardtotheproposalfromtheCommission ;
Whereastheobjectoftheoriginalallocationofbasic
quotasbyMemberStatestoindividualundertakings
orfactoriesmightbejeopardisedintheeventofthese
undertakingsbeingmergedortransferredorofthese
factoriesbeingtransferredorleased;whereas
consideration shouldthereforebegiventothepos­
sibilityofadjustingtheoriginalallocationofbasic
quotasbytransferringthem;
Whereasthereshouldbestrictprovisionstogovern
suchadjustmentssothatthesystemofallocating
quotasisnotjeopardised ;whereas,tothisend,the
transactions referredtoshouldberestrictedtothe
territoryofeachMemberState,thecriterionfora
mergershouldbetheformationofasugar-producing
undertakingwithinthemeaningofRegulationNo
1009/67/EEC,andthecriterionforatransfershould
betheassignmentofownershipor,whereafactory
istransferredorleased,thetransferofthepro­
ductionunittotheundertakings whichhave
acquiredorleasedit;
Whereasitisessentialthatthere-allocation ofbasic
quotasresultingfromsuchadjustmentsshouldin
nowayprejudicetheinterestsofbeetandcane
growers;(c)'transferofafactory'means:
transferofownershipofaproductionunit,in­
cludingall,theplantrequiredtomanufacture
sugar,tooneormoresugar-producing un­
dertakingssituatedontheterritoryoftheMem­
berStateinwhichthefactoryacquiredisestab­
lished,resultinginpartialortotalabsorptionof
theproductionoftheundertakingmakingthe
transfer;
(d)'leasingofafactory'means:
acontract,concludedforaminimumofthree
consecutivemarketingyears,whichtheparties
undertakenottoterminatebeforetheendofthe
thirdmarketingyear,toleaseaproductionunit,
includingall.theplantrequiredtomanufacture
sugar,toanundertakingsituatedontheterritory
oftheMemberStateinwhichthefactoryin
questionisestablished,providedthatafterthe
contracttakeseffecttheundertakingleasingthe
factoryinquestioncanberegardedasasingle
sugar-producing undertakingasfarasproduction
isconcerned.Whereasthesumoftheadjustedbasicquotasshould
notexceedthesumoftheoriginalbasicquotas
allocatedtotheundertakingsinquestion;
OJNo308,18.12.1967,p.1.

577 OfficialJournaloftheEuropeanCommunities
2.Asugar-producing undertakingshallberegarded
asbeingsituatedontheterritoryofaMemberState
ifallitsfactoriesareestablishedontheterritoryof
thatMemberState.
Article22.Intheeventofafactoryownedbyanundertak­
ingwhichhasbeenallocatedabasicquotabeing
leased,theMemberStateconcernedmayreducethe
basicquotaoftheundertakingleasingthatfactory
andincreasethebasicquotaoftheundertaking
takingitonlease.
Iftheleaseisterminatedbeforetheendofthe
threemarketingyearsreferredtoinArticle1(1)(d),
theadjustmentmadetobasicquotaspursuanttothe
provisionsoftheprecedingsubparagraph shallbe
cancelledbytheMemberStatewitheffectfromthe
dateonwhichtheleasetookeffect.However,ifthe
leaseisterminatedforreasonsofforcemajeure,the
MemberStateshallnotbeboundtocancelthe
adjustment .Intheeventofundertakings beingamalgamated ,
theMemberStateconcernedshall,withoutprejudice
totheprovisionsofCouncilRegulationNo1027/67/
EEC1of21December1967onthefixingofbasic
quotasforsugar,fixabasicquotafortheun­
dertakingformedastheresultoftheamalgamation
whichshallbeequaltothesumofthebasicquotas
allocatedtotheundertakingsconcernedpriorto
theirmerger.
Article3
Article5
Measurestakentodealwithbasicquotaspursuant
tothisRegulationshallnotbeputintoeffectunless
theinterestsofbeetandcanegrowersinthepro­
ductionareasconcernedareprotected.Intheeventofasugar-producing undertakingbeing
transferred,theMemberStateconcernedshall,
withoutprejudicetotheprovisionsofRegulation
No1027/67/EEC,eitherallocatethebasicquotaof
thetransferredundertakingtotheundertaking
whichhasacquireditordistributethebasicquota
originallyallocatedtothetransferredundertaking
amongtheundertakingswhichhaveacquireditin
proportiontotheproductionabsorbedbythem.Article6
Article4ThemeasuresreferredtoinArticle5shall,inthe
eventofmerger,leasingortransfertakingplace:
(a)between1Julyand31Januaryofthefollowing
calendaryear,beeffectiveforthecurrentmarket­
ingyear;
(b)between1Februaryand30Juneofanyone
year,beeffectiveforthefollowingmarketing
year.1.Intheeventofafactoryownedbyanun­
dertakingwhichhasbeenallocatedabasicquota
beingtransferred,theMemberStateconcernedshall,
withoutprejudicetotheprovisionsofRegulation
No1027/67/EEC,eitherreducethebasicquotaof
theundertakingtransferringownershipofthe
factory,theamountdeductedbeingaddedtothe
basicquotaoftheundertakingacquiringthat
factory,orincreasethebasicquotasoftheunder­
takingsacquiringthefactoryconcernedbydistribu­
tingtheamountdeductedamongtheseundertakings
inproportiontotheproductionabsorbedbythem.Article7
ThisRegulationshallenterintoforceonthethird
dayfollowingitspublicationintheOfficialJournal
oftheEuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,26November1968.
FortheCouncil
ThePresident
G.SEDATI
1OJNo313,22.12.1967,p.2.