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DOCUMENTS "COM"
COM(80)456
Vol.1980/0158

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COMMISSION OFTHEEUROPEAN COMMUNITIES
*
COM(80)456final
Brussels,19July1980
t .. .
Proposalfora
COUNCILREGULATION (EEC)
amendingRegulation (EEC.)No1488/76layingdownprovisionsfor
theintroduction ofasystemofminimumstocksinthesugar
sector
>
C0M(80)456final

EXPLANATORY MH&IORAKDUM
Starting with the 131.S/11sugar production year asystem ofminimum
sugar stocks was introduced .This placed ao .obligation onSugar
manufacturers andsuge.r refiners tostore ,permanently ,atleast 10%
ofcertain quantities ?ofrefined sugar . ''
This system ,andthe .percentage referred to,were provided for in
Article 18inthe newbasic sugar Regulation (EEC)No3330/74in
order toensure normal supplies ofsugar 'inthewhole Community or
oneofitsregions .The innovatory nature ofthe scheme was the
jresult oftheshortage situation atthat time ontheCommunity and
Bforld markets ,when ,world prices reached levels four times higher
than Community prices andtheCommunity was obliged toimport about
500.000 tonnes ofsugar from third countries with import subsidies#
Itwasaperiod inwhich Community sugar production was less than
consumption# "
This situation ledtheCommunity firstly toestablish thesystem in
principle andlater tospecify the10$stocking obligation .
Since then theCommunity 'ssupply situation haschanged completely .
Since the1977/78sugar year theexcess ofCommunity production over
consumption has regularly been' oftheorder of2miotonnes .Sothe
Commission believes that itisappropriate 1tointroduce more flexibility
into theBbheme and forthis purpose toprovide thenecessary instruments
« * .
Inthese circumstances what isrequired isanappropriate procedure .which
when necessary ,would allow theCommission ,acting within theframework
oftheday-to-daymanagement ofthesugar markets ,tochange theper-
centage®
«
This proposal covers arrangements ofapurely procedural character .
Itwould not ,ofitself ,involve anyfinancial implications .
Inthe event that the Commission used these arrangements there would
beareduction instorage costs (financed byFEOGA-Guarantee )andin
storage levies (ownresources ).There would belarger supplies available
totheinternal market .Also theincrease -inquantities liable tobe
exported would involve economies when theworld market price washigh .

Proposal for a
COUNCIL REGULATION (EEC )
^amending Regulatiop (EEC)WO1488/76laying downprovisions for
theintroduction ofasystem ofminimum stocks inthesugar sector
** t ' 1
t
THE CCXJNCIL CPTHEEUROPEAN COMMUBITIES ,\
{
Haviflg regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation (EEC)NO3330/74of19December 1974
on^ecommon organisation ofthemarket insugar (-l),aslast amended "by
Rgulation (EEC)No1396/-78(2),andinparticular Article 18(3 )thereof ,
Having regard totheproposal from theCommission ,
Whereas Council Regulation (EEC )No1488 /76 (3)introduced the system of
ijiinirfium stocks provided for inArticle 18ofRegulation (EEC )No3330 /74;
whereas Article 1ofRegulation (EEC)No1488 /76lays down that theminimum
stock ofeach sugar manufacturer andofeach refiner ofpreferential sugar
«
maynot.be less than 10%ofacertain quantity of,respectively ,manufactured
orrefined sugar ;whereas this percentage was Caid down atatime when the
production ofsugar intheCommunity twasless than consumption ;whereas ,this
supply situation having completely changed ,itisappropriate toprovide
henceforth that this percentage maybechanged within the framework ofthe .
day-to-daymanagement ofthe sugar market ,
HASADOPTED THIS REGULATION :
(1)OJNoL359,31.12.1974 ,P.l.
(2)OJNoL170,28.3.1978 ,p.l.
(3)OJNoL167 ,26.6.1976 ,p.ll . ./.
i

-2-
Article 1
Regulation (EEC)Bfo1488/76ishereby amended asfollows :
1*Thefollowing isadded asthesecond paragraph ofArticle 1:
"However /thepercentages laid down inthe first
paragraph may "bechanged totheextent that such
' changes arenot liable toimpede the objectives ofArticle 18
5 ofRegulation (EEC)No3330/74.Thechanged percentages
maynot "beless than 5$orhigher than 10
2-Article 7shall bereplaced bythefollowing :
Article 7
Detailed rules fortheapplication ofthis Regulation ,
u
the changes referred tointhesecond paragraph of
Article lttheamount laid down inArticle 6andany
derogations from Article 2,shall beadopted inaccor­
dance with theprocedure laid down inArticle 36of
Regulation (EEC)Ho3330/74.".
Article 2
«
This Regulation shall enter into force onthethird day
following itspublication intheOfficial Journal ofthe
European Communities#
*
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States *
Done atBrussels . For the Council