ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)811
Vol.1980/0256

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)811 final
Brussels ,1December 1980
Proposal for a
COUNCIL REGULATION (EEC )
amending Regulation (EEC )No1111 /77
laying down common provisions forisoglucose
Proposal for a
COUNCIL REGULATION (EEC )
amending Regulation (EEC )No1592 /80ontheapplication ofthe
system ofproduction antthesugar andisoglucose
sectors during the per,iod1,July 1980 to30June 1981
(submitted totheCouncil bytheCommission )
COM 80)811 final

EXPLA',,ATOPiMEMORAjv.DtTj
»i„Fortheperiod*J-ily1Q79t*>30Jur.e1980thebasicisogluccoe
.'flegulatien (1).(asr.T.pndsd -byRegular .ion.(EEC,No1?33/'79(2))
establisheda-quot?.~V'-3i?bf,ouEtothat-appliedtosugarduring
thesame;period.Theintroduction ofsucharegimeforisoglucosewas
providedforinRegulation '(EEC)>'o1293/79followingajudgementby
theEuropeanCourtofJusticeon25October1978which,underthe
termsofArticle177oftheEECTreaty(referenceforapreliminary
ruling),pronouncedontheclaimbythreeisoglucose-producing
undertakings thatRegulation (EEC)No1111/77wasinvalidtothe
extentthatitsArticles8and9imposedaproductionlevyon
isoglucoseof5UCper100kgofdrymatter.TheCourtdeclaredthat
thislevybreachedthegeneralprincipleofnon-discrimination within
""themeaningofArticle40(3)oftheEECTreaty,mainlyontheground,
thattheproductionlevyonsugar:'appliedonlyto"B"sugarandthus
.<thesugarmanufacturers hadthepossibility ofreducingthecharge
.represented bytheievybylimitingtheirproduction.TheCourtalso
pointedout.thatunderthecommonorganisation ofthemarketsinthe
sugarsectorabout60^oftheaveragechargerepresented bythe
productionlevywasbornebythebeetgrowersandthatbecausethis
elementhadnotbeentakenintoconsideration thechargesbornebythe
sugarihanufacturers hadbeenmateriallyover-estimated .
InthelightofthisjudgementtheCouncil,onaproposalfromthe
;Commission andafterconsultation withParliament ,adoptedRegulation
(EEC)No1293/79whichintroduced ,inparticular' ,asystemof
productionquotasforisoglucose basedontheprovisionsinforcein
thesugarsector.Inanefforttoavoidanydiscrimination between
thetwoseetorsorbetweenundertakings producingisoglucosethese
quotasweredetermined byreference ,ontheonehand,totheactual
productionofeachundertaking inthemostrecentpossiblereference
periodaftertheCourt'sjudgementinwhichthedissuasiveeffectof
thelevyno,longerexisted,and,-ontheother,tothetechnicalannual
productioncapacityofeachundertaking. '
(1)OJNoL13^,28.5.1977 ,P-1
(2)OJNoL162,30.6.1979,p.10

-2-
Hencefortheperiod 1July1979to30June1980each
.isoglucose-producing undertakingestablishedintheCommunitywas
allocatedabasicquotaequaltotwiceitsactualproductioninthe
period1November1978to30April1979.Tothisbasic"A"quotawas
addeda"B"quotaequalto27-5?ofthebasicquotaonconditionthat
thesumofthe"A"and"B"quotasshouldbeneitherlessthan65$of
thetechnicalannualproductioncapacityoftheundertaking in
questionnormorethan85%ofthatcapacity.Consequently ,provision
wasmade(asinthecaseof"B"quotasugar)tochargeaproduction
levyon"B"quotaisoglucose .TakingaccountoftheCourt'sjudgement
of25October1978,theamountofthislevywaslimitedtothe
proportionofthelevyon"B"quotasugarbornebythesugar
manufacturers (i.e.about40$ofthesugarlevy).Finally,the
Regulationalsodefinedthestatusof"C"isoglucose .Fortherest,
Regulation (EEC)No1293/79broughtthesystemofexportrefundsfor
isoglucoseintolinewiththatforsugarsyrups,anditrepealedthe
previousproductionlevysystemforisoglucosewitheffectfrom1July
1977.
2.Totheextentthatitprovidedforaproductionlevysystemfor
isoglucose byinsertinganewTitleII(Articles8and9)inthebasic
isoglucoseRegulation (EEC)No1111/77,Regulation (EEC)No1293/79
wasthesubjectofaclaimforitsannulmentmadetotheEuropean
CourtofJusticebytwootherisoglucose-producing undertakings .
Inessencesucharegime,accordingtotheplaintiffs ,violatedthe
legalprinciplesofcompetition ,theprincipleofproportionality ,and
theprincipleofequalityoftreatment ,andcreatedadiscrimination
betweensugarproducersandisoglucoseproducers ,andbetween
isoglucoseproducersthemselves .Inaddition,theplaintiffs invoked
errorsofsubstantial form,inwhichtheyweresupportedbythe
EuropeanParliamentastheintermediary ,inthatParliament hadnot
beenconsultedinaccordancewithArticle *13(2)oftheEECTreaty.
Initsjudgementsof29October1980theCourtrejectedall-thebasic
complaints invokedbytheplaintiffs .Thegroundsforthese
judgements canbesummarisedasfollows:

-3-
a)-Retheviolation or .theprinciples ofthelawofcompetition :
TheCourt stated that theestablishment ofasystem ofund.istorted
competition was nottheonly objective laid down inArticle .3ofthe
EECTreaty ,which also provides ,inparticular ,fortheestablishment
ofacommon agricultural policy ,andthat theauthors eftheTreaty ,
realising that thesimultaneous pursuit ofthese twoobjectives could ,
atcertain times andincertain circumstances ,bedifficult ,had
provided that theTreaty provisions relating totherules of
competition were applicable totheproduction ofand trade in
agricultural products only totheextent determined bytheCouncil
having regard totheobjectives laid down inArticle 39oftheEEC
Treaty .The Court concluded that these considerations indicated at
one and thesame time theprimacy oftheagricultural policy over the
objectives intheTreaty relating tocompetition andthepower ofthe
Council todecide towhat extent therules ofcompetition should apply
intheagricultural sector .'The Court added that inexercising this
I
;power ,asintheimplementing thewhole oftheagricultural policy ,
the Council retained alarge measure ofdiscretion and that in
"establishing theregime forisoglucose inthepresent case theCouncil
had not exceeded this discretionary power . *
b)Rethebreach oftheproportionality principle
The Court rejected this complaint .Ittook theview that the
plaintiffs' argument that theCouncil hadobstructed therational use •
oftheir production capacities was not ,well -founded since their actual
production did not even reach their allotted maximum quotas ;that the
plaintiffs ought not toexpect theCouncil totake account ofthe
%motivations of,and .commercial options open to,each individual
undertaking when itadopted measures inthegeneral interest of
avoiding asituation inwhich theuncontrolled production of
isoglucose could put theCommunity 'ssugar policy atrisk ;and ,
finally ,that itwas incorrect to-maintain that norestrictive steps .
hadbeen taken against thesugar industry andthat ,inanycase ,the
scope for'action inrespect ofthat industry was limited because the
Council hadtohave regard tothemaintenance ofafair standard of
living forthose engaged inagriculture . -

-4-
c)Rethebreach ofthe principle ofequality oftreatment :
The Cou"t rejected this complaint .Itheld that -taking account of
the fact that isoglucose production had contributed toanincrease in
sugar surpluses and that itwas permissible toapply restrictive
measures tosuch production -itwas open tothe Council toadopt
whatever measures itjudged appropriate having regard tothe
similarity between the two markets and totheir interdependence as
well astothespecific nature ofthemarket inisoglucose ;and ,
finally ,that itwas aquestion ofthe Council being faced with the
delicate situation for the Community 'ssugar policy created bythe
production ofisoglucose and having tointroduce asquickly as
possible atransitional' regulation .
d)Rethediscri mination between sugar produ cersand isoglucose producers
and between isoglucose producers :
The Court rejected these complaints also .Itconsidered that the
differences ,referred tobythe plaintiffs ,between the provisions
were accounted for bythe differences between the two industries from
which the Council ,inexercising its power ofdiscretion ,had drawn
the inferences .The Court added that after its first judgement on25
October 1978 theisoglucose-producing enterprises hadreacted
differently but the Council was not tobeblamed for not having taken
'into account the commercial options and internal policies ofeach
individual undertaking when adopting measures inthe general interest
ofavoiding asituation inwhich the uncontrolled production of
isoglucose could put theCommunity 'ssugar policy atrisk .
Inrejecting all these complaints the Court established that
Regulation (EEC )No1293 /79isinbasic conformity with Community law .
Nevertheless ,the Court annulled the Regulation and upheld the claim
oferror ofsubstantial form onthe ground that theOpinion ofthe
European Parliament ,asrequired bythe third subparagraph ofArticle
43(2 )oftheTreaty ,was notobtained .
Inessence theCourt 'sview here was that theconsultation required by
thethird subparagraph ofArticle ^3(2 )oftheTreaty isthemeans
whereby Parliament caneffectively participate inthe Community 's
legislative process .The Court added that this requirement was an
essential element intheinstitutional balance sought bytheTreaty
andthat itwas areflection ,albeit alimited one ,atCommunity level

-5-
ofafundamentaldemocraticprincipleaccordingtoWhichthepeople
participateintheexerciseofpowerviaarepresentative Assembly.
TheCourtconcludedthattheregularconsultation withParliamentin
thecasesprescribed bytheTreatythereforeconstitutes asubstantial
formality ,thenon-observance ofwhichwouldleadtothe'annulmentof
theactionconcerned.TheCourtstatedthatin'thepresent,casean
observanceofthisconsultation requirement wouldimplytheexpression
byParliamentofanOpinionandthatthisrequirement couldnotbe.
regardedashavingbeenfulfilledbyasimplerequestbytheCouncil
forParliament'sviewbecause,accordingtotheCourt,theCouncilhad
notexhaustedallthepossibilities ofobtainingParliament'sview,
hadnotrequestedthatthematterbedealtwithundertheurgent
procedure ,andhadnotutilisedthepossibilityofferedbyArticle139
oftheTreatytorequestanextraordinary sessionofParliament ,
althoughon1Marchand10May1979theOfficeoftheParliament had
drawnthe/Council'sattentiontothispossibility .
3.InthelightoftheannulmentofRegulation (EEC)No1293/79onthe
groundoferrorofform,andhavingregardtotheCourt'sjudgementof
29October1980,theCommission nowproposesthattheCouncil,after
consultation withParliamentundertheurgentprocedure ,should
reinstateretroactively from1July1979theprovisionscontainedin
*theannulledRegulation which,accordingtotheCourt,areinbasic
conformitywithCommunitylaw.Itisbothurgentandessentialtodo
thisinviewofthesituationinrespectoftheperiod1July1979to
30June1980createdbytheCourt'sannulment.TheCouncilshouldbe
awarethattherepresentatives oftheMemberStatesontheManagement
CommitteehavebeennotifiedoftheCommission'sIntentiontomake
thisproposaltotheCouncil.Inthemeantime,pendingtheCouncil's
decisionsinthismatter,itisinappropriate tocontinuetochargea
productionlevyonBisoglucoseor.toreimbursethelevyalready
collected
Inaddition,theCommission deemsitnecessarytomakeafurther
proposalabout'theprovisionsconcerningisoglucosecontainedin
CouncilRegulation(EEC)No1592/80(1).Article2ofthat
•C'•,
(1)0^ΝοI,160,26.6.198ο ,ρ.12

Regulationlays,downthat"Article9ofRegulation (EEC)No1111/77
shallapplyduringtheperiod1July1980to30June1981."andthat
"Thebasicquotaofeachisoglucose-producing enterpriseforthe
period1July1980to30June1981shallbethatapplicableduringthe
period1July1979to30June1980.".
Theeffectoftheaforementioned Article2ofRegulation (EEC)
No1592/80istoapplyduringasupplementary periodof12monthsthe
isoglucoseproductionregimelaiddowninRegulation (EEC)No1293/79,
nowannulledbytheCourt(thisRegulationhaving,inparticular ,
insertedanewArticle9concerningthisregimeinRegulation (EEC)
No1111/77).TheCommissionthereforeproposesthatinorderto
removeanyjuridicaldoubtconcerningthisprovisioninRegulation
(EEC)No1592/80theCouncilshould,afterconsultation with
Parliament undertheurgentprocedure ,confirmthesaidArticle2and,
toavoidallambiguity ,shouldstatethatthetextsoconfirmedwill
henceforthrefertothenewArticle9oftheRegulation whichwill
replaceRegulation •(EEC)No1293/79(theaimofthefirstproposal).
Thesetwoproposalsaimretroactively tore-establish ,ortorender
moreprecise,thecurrentprovisions .Theyinvolvenonewfinancial
implications fortheCommunitybudget.

Proposal for a
.COUNCIL REGULATION (EEC )- •
amending Regulation (EEC )No1111 /77 " .
laying down common provisions forisoglucose
THECOUNCIL OFTHEEUROPEAN COMMUNITIES , <
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Article H3thereof ,
Having regard ,totheproposal from theCommission ,
Having regard totheopinion oftheEuropean Parliament ^
(?)Whereas Council Regulation (EEC )No1111/77 *
intheversion aslast amended by
(3) .... .Regulation (EEC )No1293 /79 ♦provided fortheapplication ofa .
system of -production quotas for theperiod from 1July 1979 to -30June
1980 ; . ^ ' '■ -•
Whereas inCases 138/79 "and 139/79theCourt ofJustice oftheEuropean
Communities ,on29October 1980 ,annulled Regulation (EEC )No1293/79,
which amended Regulation (EEC )No1111 /77,ontheground ofaninfringement ofan
essential procedural requirement duetotheabsence ofanopinion oftheParliament as
required byArticle ^3oftheTreaty ;whereas ,inrejecting all the
alleged 'breaches oftheprinciple ofthelawofcompetition ,
oftheprinciple ofproportionality andof 'non-discrimination invoked
against thesystem ofproduction quotas introduced byRegulation (EEC )No
1293 /79,the Court affirmed that the latter Regulation was inbasic
conformity with Community law ;whereas itistherefore appropriate to
reintroduce retroactively theprovisions ofRegulation (EEC )No1293/79and
,torepeal theprovisions ofTitLe IIofRegulation (EEC )No1111 /77asamended
byRegulation (EEC )No1298 /78 .
.HASADOPTED THIS REGULATION :., ' .
(1)OJNoC
(2)OJNoL134 ,28.5.1977 ,p.M
(3)OJNoL162 ,30.6.1979 ,p.10 •
(4)0JNoL160,17.6.1978 ,p.9. -:

-2-
Regulation (EEC )No1111 /77ishereby amended asfollows :
1.Article 4(1 )isreplaced bythefollowing :
"Article 4
1.Provision may bemade for anexport refund for the products listed in
Article 1when unprocessed and for isoglucose falling within
subheading 17.02 D1exported inthe form ofthe goods listed inAnnex
1.
The level oftherefund shall bedetermined per 100kilograms ofdry
matter ,taking into account thefollowing inparticular :
a)theexport refund fixed pursuant toArticle 19(1 )ofRegulation
(EEC )No3330 /74for theproducts referred toinArticle 1(1)(d)of
that Regulation ; ,
b)theeconomic aspects ,oftheproposed exportations .
When the refund isbeing fixed ,account may betaken ofthe need to
establish abalance between' theuseofCommunity rawmaterials inthe
manufacture ofprocessed goods for export tothird countries and the
use ofthe products ofsuch countries brought inunder inward
processing arrangements .".
2.Title IIishereby repealed with effect fropi 1July 1977 .
The following Title shall beinserted after Article 7:
(1)OJNoL160 ,17.6.1978 ,p.9

■-.rTITLEII
QuotaArrangements
Article8
Article9shallapplyfortheperiod1July1979to30June1980.-
Article9
1.FortheperiodreferredtoinArticle8abasicquotashallbe
allottedtoeachisoglucose-producing undertakingestablishedinthe
Community .
Withoutprejudicetothe'applicationofparagraph3,thebasicquota
ofeachsuchundertakingshallbeequaltotwiceits-production ,as
established underthisRegulation ,duringtheperiod1November1978
to30April1979. ;- ,
2.Toeachundertaking havingabasicquota,thereshallalsobeallotted
;amaximumquotaequaltoitsbasicquotamultiplied byacoefficient .
Thiscoefficientshallbethatfixedpursuanttothesecond..
subparagraph ofArticle25(2)ofRegulation (EEC)No3330/7^forthe
period1July1979to30June1980. ■.
3.Ifnecessary ,thebasicquotareferred ,toinparagraph 1shallbe
correctedsothatthemaximumquotadeterminedinaccordancewith
paragraph 2: ' ':
,-doesnotexceed85%, ■(
isnotlessthan65%
ofthetechnicalproductioncapacityperannumoftheundertakingin
question.
4.Thebasicquotasestablished pursuanttoparagraphs 1and3shallbe
fixedforeachundertaking assetoutinAnnexII.
5.Isoglucose-producing undertakings whichhavenotproducedanyduring
thereferenceperiodreferredtointhesecondsubparagraph of
paragraph 1andwhichcanbeshowntohaveresumedsystematic
productionduringtheperiodreferredtoinArticle8shallbe.
allottedabasicquotaequaltothehighestvolumeoftheirproduction
attainedduringoneofthefollowingperiods:
-1August1976to31July1977,
-1July1977to30June1978.

-14-
Amaximumquota,determinedinaccordance withtheprovisionsof
paragraph 2,shallbeallottedtosuchundertakings .
6.Abasicquotashallbeallottedtoundertakings startingsystematic
productionofisoglucoseduringtheperiodreferredtoinArticle8
withinthelimitsofaCommunityreservequantityequaltoofthe
totalofbasicquotasestablished pursuanttoparagraph 1.
7.Thequantityofisoglucose producedduringtheperiodreferredtoin
Article8which:
-exceedsthemaximumquotaoftheundertaking ,
or
-wasproducedbyanundertaking nothavingabasicquota
maynotbedisposedofontheCommunity'sinternalmarketandmustbe
exportedinthenaturalstatetothirdcountrieswithoutthe
application ofArticle4.
8.Forthequantityofisoglucoseproductionwhichexceedsthebasic
quotawithoutexceedingthemaximumquotasMemberStatesshallcharge
aproduction levyontheisoglucose producerconcerned .
FortheperiodreferredtoinArticle8,theamountoftheisoglucose
production levyshallbeequaltotheshareofthesugarproduction
levy,asfixedforthe1979/80sugaryearpursuanttoArticle28of
Regulation (EEC)No3330/7^,bornebythesugarmanufacturers .
9.TheCouncil,actingbyaqualifiedmajorityonaproposalfromthe
Commission ,shallallocatethequotasreferredtoinparagraphs 5and
6andshalladoptanygeneralrulesnecessaryfortheapplication of
thisArticle.
10.Detailedrulesfortheapplication ofthisArticle,whichshallin
particularprovideforthelevyingofachargeonthequantityof
isoglucosereferredtoinparagraph 7whichhasnotbeenexportedin
thenaturalstateduringtheperiodreferredtoinArticle8andfix
theamountoftheproductionlevyreferredtoinparagraph 8,shall
beadoptedinaccordancewiththeprocedurelaiddowninArticle12.".

-5-
it.The following Annex IIisadded :
"ANNEX II
: Undertaking Address ofRegistered OfficeBasic quota in :
tonnes expressed as :
dry matter :
:Maizena GmbH D-2000 Hamburg 1,Postfach 1000\ !
28000 :
:Amy1umSA ruedel'Intendant 49,Β-1020
Bruxelles 56667 :
:Roquettes Frères ;
: SA17,Boulevard Vauban
F-59000 Lille , 15887 :
:SPAD 15063 Cassano Spinola ,
I-Alessandria ,casella
postale 1 5863 :
:Fabbriche riunite
:Amido glucosio
:destrina ,SpA<-
Piazza Erculea 9,I-Milanoø 9
10706 :
:Tunnel Refineries
:LtdThames Bank House ,Greenwich
UK-London SE10OPA 21696 :
Article 2
1.This Regulation shall enter into force onthedayofitspublication
intheOfficial Journal oftheEuropean Communities .
2.Itshall apply with effect from 1July 1979 ,with theexception of
Article 1(2),which shall app.ly with effect from 1July 1977 .
.3.References toRegulation (EEC )No1293 /79contained inacts
adopted inimplementation ofRegulation (EEC )No1111 /77shall be
construed asreferences tothis Regulation .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels , For the Council

Proposal for a
COUNCIL REGULATION (EEC )
amending Regulation (EEC )No1592 /80ontheapplication of
thesystem ofproduction quotas inthesugar and isoglucose
sectors during theperiod 1J^ily 1980 to30June 1981
THE COUNCIL OFTHE EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Article *43thereof ,
Having regard tothe proposal from the Commission ,
Having regard tothe opinion oftheEuropean Parliament
(?)Whereas Article 2ofCouncil Regulation (EEC )No1592 /80
applied totheperiod 1July 1980 to30June 1981
the production quota system for isoglucose
provided forupto30June 1980 byCouncil Regulation (EEC )No1111 /77of
* . . .... (3)17May 1977 laying down common provisions for isoglucose ,aslast
amended byRegulation (EEC)No1293/79^^;
Whereas Regulation (EEC )No1293 /79 amended Article 9in
Regulation (EEC )No1111 /77and thereby introduced theaforesaid
production quota system forisoglucose with effect from 1July 1979 ;
'Whereas inCases 138/79 and 139/79theCourt ofJustice oftheEuropean
Communities ,on29October 1980 ,annulled Regulation (EEC )No1293 /79on
theground ofaninfringement ofanessential procedural requirement ;whereas Article 2
ofRegulation (EEC )No1592 /80applied theproduction quota system ,as
established bythenow annulled Regulation ,totheperiod 1July 1980 to
30June 1981 ;whereas ,inorder toavoid any doub.ts astothelegality of
this provision ,itisappropriate that ,inrespect ofthesame period ,the
aforesaid Article 2ofRegulation (EEC )No1592 /80should henceforth
contain areference toArticle 9ofRegulation (EEC )No1111 /77inthe
version contained inCouncil Regulation (EEC )No /80of 1980
amending Regulation (EEC)No1111/77laying down ,common provisions forisoglucose ^
HAS ADOPTED THIS REGULATION :
(1)OJNoC
(2)0JNoL160 ,26.6.1980 ,p.12
(3)0JNoL13-4 ,28.5.1977 ,p.4
(4)OJNoL162 ,30.6.1979 ,p.10
•(5)0JNoL

-2-
Article 1.
Article2ofRegulation (EEC)No1592/8Qisherebyreplaced fc>ythe
following : '
"Article2
1.Article9ofRegulation (EEC)No1111/77intheversionasamendedby
Regulation (EEC)No/80shallapplytotheperiod1July1980
to30June1981.
2.Fortheperiod1July1980to30June1981thebasicquotaofeach
isoglucose-producing undertakingshallbethatapplicableduringthe
period1July1979to30June1980pursuanttoRegulation (EEC)
No/80.
Article2
ThisRegulationshallenterintoforceonthedayofitspublication in
theOfficialJournaloftheEuropeanCommunities .
Itshallapplywitheffectfrom1July1980.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels, FortheCouncil