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DOCUMENTS "COM"
COM(81)747
Vol.1981/0213

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)747 final
Brussels,25thNovember1981
PROPOSAL FORACOUNCILREGULATION (EEC)
J
i■*-v.
amendingRegulation (EEC)No1785/81onthecommon
organization ofthemarketsinthesugarsector
(presented bytheCommissiontotheCouncil)
COM(81)747final

EXPTJVMATORY MEMORANDUM
Subuet
Theobjectofthisproposalistoexcludepreferential sugarimportedand/
orrefinedintheCommunityunderprotocolNo7onACP/EECsugarattached
tothesecondLomeConvention andtheAgreementwithIndiafromthe
compensation systemforstoragecostsprovidedforinthebasicsugar
'Regulation ,witheffectfromthe1981/82marketingyear.Experienceinthis
resjxTtshowsthattheaverageperiodofstorageforpreferential sugaris
verymuchshorterthanthatforsugarfromCommunityproductionandthat,
accordingly ,application oftheabove-mentioned systemtothatsugarisnot
justifiedhavingregard,firstly,totheobjectiveofmarketstability
aimedatbythissysteminspreadingdisposalonthebasisofdemandthrough
agivenmarketingyearand,secondlyoftheimplications formanagementof
unjustifiedapplication topreferential sugarfortheMemberStatesconcerned.
Thesystemshouldaccordinglyceasetoapplyasquicklyaspossibleand,as
thiscannotbecarriedoutduringthemarketingyearonaccountofthevery
natureofthesystem,basedoncompensation betweenreimbursement andlevel
foreachmarketingyear,theCommissionproposesthatitbyterminatedas
fromthe1981/02marketingyear,Inthisrespect,theCommissionfeelsthat
theCouncilshouldsimultaneously adoptappropriate measurestoensure,as
faraspossible,thatthisretroactivity doesnotcaseharmtothoseconcerned ,,
Financialimpact
Inprincipal ,abolitionofthissystemcannothave?netfinancialimpactonthe
Communitybudget,asexpenditure andreceiptscorrespondinprinciple.However,
thereisamanagementcosteconomywhichhasbeenassessedasaflat-rate
figureof10%oflevieswhicharenottransferred bytheMemberStatestothe
Community (some1,4millionECUperyear).Ontheotherhand,therewillbea
lossofreceiptsresultingfromthefact.thatapplicationofArticle8ofthe
basicRegulationtopreferential sugarhasadebitbalanceof2,045millionECU
asat1July1981,andthissum'willno^.onger*^ersc-cveieo .ifthe,Couiiwil
adoptsthisproposal.

Proposal for
COUNCIL REGULATION (iiC)No
of -
amending Regulation (EEC )No1785 /81onthecommon
«ι ■■ ■■■ ■
organization ofthemarkets inthesugar sector
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Article 43thereof ,
Having regard totheproposal from theCommission ,
Haying regard totheopinion oftheEuropean Parliament ,
Whereas Article 8ofCouncil Regulation (EEC )No1785 /81of30June 1981 on
thecommon organization ofthe markets inthesugar -sector (1)lays down a
compensation system forstorage costs comprising flat-rate reimbursement to
befinanced byalevy ;Whereas this system ,under special provisions ,also
covers preferential sugar imported into orrefined intheCommunity under
Protocol 7onACP sugar oftheSecond ACP-EEC Convention signed atLome J.2)
/ -
andunder theAgreement with India (3);
-Whereas one oftheobjects ofthe compensation system forstorage costs is
tohelp stabilize theCommunity market insugar byadjusting release tothe
_ .y
market throughout themarketing year according todemand ;whereas
experience shows that deliveries ofpreferential sugar are spread regularly
over themarketing year ,whereby theaverage storage period for thesaid
sugar isvery short ;whereas itistherefore nolonger justified to
maintain thesaid system inrespect ofpreferential sugar ,particularly in
view ofthemanagement costs henceforth involved for theMember States
concerned ;
N
Whereas thesaid system isbased essentially ontheprinciple ofcompensation
between reimbursement and levy foreach marketing year ;whereas itisnot
possible tostop applying thesystem topreferential sugar during a
marketing year without infringing thesaid principle ;Whereas itshould
nevertheless bestopped without delay onaccount oftheimplications ofany
delay formanagement ,andthis measure should accordingly bemade applicable
from the 1981 /82marketing year ,
(''>0JNjL177,1,7,1981 ,p.4
(2)-ÛJNoL347,22.12.19S0 ,p.144
(3)0JNoL190,23.7.1975 ,p.36

HASADOPTED THIS REGULATION :
' - Article 1
Article 8ofRegulation (EEC)No1785 /81Ishereby amended asfollows :
1.Thesecond subparagraph ofparagraph 2isdeleted .
2.The text under b)and c)inthethird subparagraph ofparagraph 2is
deleted . ,
. . . .
3.Thefourth subparagraph ofparagraph 2isreplaced bythefollowing :
"The amount ofthe reimbursement shall bethe same for the whole
Community .This rule shall also apply inrespect ofthe levy ."
Article 2 -
1.Theprovisions ofArticle 1shall apply with effect from 1July 1981 .
2.Storage levies due and collected under b)and c)inthe third subpara­
graph ofArticle 8(2 )ofRegulation (EEC )No1785 /81between 1July
1981 and thedate ofentry into force ofthis Regulation shall be
repaid tothose subject tothem bytheMember State which collected
them .
3.Sums forrepayment under paragraph 2shall bereduced bythesums
corresponding toentitlement for reimbursement ofstorage costs
pursuant tothesecond subparagraph ofArticle 8(2 )ofRegulation
(EEC )No1785 /81for storage ofthe sugar inquestion during the
period from 1July 1981 uptothedate ofentry into force ofthis
Regulation .
4.Forthestorage period from 1July 1981 uptothedate ofentry intp
force ofthis Regulation ,reimbursements notaffected byapplication
ofparagraph 3shall beforfeit tobeneficiaries .
Article 3
This Regulation shall enter into force onthethird day following that of
itspublication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable in
all Member States .following that of
Communi ties .
Done atBrussels , For the Council ,