ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74)1593
Vol.1974/0256

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)1593final
Brussels,1October1974
Proposalfora
PECULATION(EEC)OFTHECOUNCIL
ontheintroduction ofasubsidyon,
importsofwhiteandrawsugar
Proposalfora
REGULATION (EEC)OFTHECOUNCIL
onthefinancingofthesubsidyonsugar
importsandthegrantingof?.subsidyon
sugarproducedinexcessofthemaximumquota­
(submittedtotheCouncilbytheCommission)
C0M(74)1593final

Explanatory Memorandum
1.ThetwoRegulations proposed totheCouncil concerning theintroduction of
animport subsidy anditsfinancing have aangle ain9which istoenable
adecision tobetaken onthegranting ofsubsidies onsugar imports .
Since thelegal basis isdifferent ineach case ,itwasnecessary to
have twoRegulations .Theexplanatory memorandum relates tothem both .
2.Thesituation asregards sugar supplies totheCommunity hasdeteriorated
since theautumn of1973 because ofanabnormal growth insugar consumption
and because ofshortfalls indeliveries from the Commonwealth countries .
Thesituation isaggravated bytheincreasingly badprospects forthe
1974 harvest .Inthese circumstances ,there islikely tobeasugar
deficit intheCommunity intheorder of300000to500000metrio tons
forthe1974/75marketing year .Current market prices inthose
Community countries which traditionally have adeficit ,inparticular
theUnited Kingdom andItaly ,areappreciably higher than theprices
* fixed forthe Community .
3.Moreover ,there isanincreased shortage ontheworld sugar market .
World prices forwhite sugar areintheregion ofJ2u.a./lOOkgas
against thetarget price of26.55 u.a .ajagJ,.icable on1July 1974 »
4.Community legislation provides Jbrthegranting ofasubsidy onimports
ofsugar inspecific circumstances (seethepreamble tothedraft
Regulation ontheintroduction ofasubsidy onimports ofwhite and
rawsugar ).Ifthecriteria laid down aresatisfied ,theCouncil must
decide onthegranting ofthesubsidy inquestion .
5»Inorder toreduce thecosts ofsuch imports asmuch aspossible ,
importers ofthesugar inquestion should beauthorized toexport
equivalent quantities ofCommunity sugar produced from the1975 beet
harvest .Provision must bemadefwsuch transactions tobeexempt
from theexport levy .Such reexports maytake advantage ofthehigh
prices quoted onforward markets (after theautumn of1975 )andare
therefore likely toreduce theoverall costs oftheproposed operation .

Tl-ics"ctompresupposesthat,talcingintoaccountpreferential imports
fromtheACPStatesandforeseeable consumption,therewill"besugar
availableforexportfromthe1975harvestattheCommunityprice,
6.Theproposedtransactions shouldincludeCommunitysugarproducedin
excessofthemaximumquota,20ofwhichmay,underCommunityprovisions,
"beexportedfreelytotheworldmarketin1974/75*Thiswouldenable
traderstoachievecertaineconomies(transportcostsandhandling,for
example).Sincetheamountofthesubsidyistobedeterminedbymeans
ofaninvitationtotender,sucheconomiesmaybereflectedinthe
tenders. <

7.Financial conséquences
Prom thefinancial point ofview ,this proposal provides forthegrunting
inrespect ofthesugar inquestion of:
(a)asubsidy onimports ofsugar from third countries andasubsidy on
Community sugar produced inexcess ofthemaximum quota ,
(b)exemption from thelevy onexports ofequivalent quantities after the
start ofthe 1975 "beet year .
Onpoint (a)Forquantities intheorder of300000to500000metric
tons ofsugar ,inrespect ofwhich thesubsidy isestimated
at200u.a./metric ton ,foreseeable expenditure amounts to
"between 60and 100million u.a .
Inview ofthetime when themeasure isputinto operation
andthetime required fortransporting thegoods ,thefirst
subsidies will probably notbepaid until thebeginning of
1975 * should benoted that when thepreliminary draft
budget andtheamending letter were drawn uptheexpenditure
resulting from this proposal wasnot taken into account .
Following theCouncil decision itwill therefore benecessary
tomake provision foracorresponding increase inthe
appropriations for theGuarantee Section oftheEAGGF .
Onpoint (b)Itishard tocalculate thefinancial consequences of
exemption from thelevy onexports ofequivalent quantities .
This depends onthequantities actually exported andthe
amount oftheexport levy .Itdepends ontheevolution of
prices ontheworld market whether ornot there isanexport
levy in1975 and1976 .
Budget oftheEuropean Communities ,Article 641–Intervention infavour
ofsugar
1973 -Appropriations 84530000u.a .,Expenditure 75500000u.a.
1974 -Appropriations 97700000u.a.,Expenditure
1975 "*Appropriations 114100000u.a.(preliminary draft Budget )Onpoint (b)
Budget ofthe

Proposal fora
REGULATION (EEC)OF1HSCOUNCIL
ontheintroduction ofasubsidy onimports of
white andraw sugar
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ;;
Having regard toCouncil Regulation NoIOO9/67/EEC'''^of18December 1967on
thecommon organization ofthemarket insugar ,aslast amended byRegulation
(EEC)NO,*.../ 74^»andinparticular Article 16(3)thereof ;
Having regard toCouncil Regulation (EEC)NO608/72^of23March 1972laying
down rules tobeapplied incases ofconsiderable price rises ontheworld
sugar market ,andinparticular Article 2thereof ?
Having regard totheproposal from theCommission ;
Whereas Article 16(2)ofRegulation No1009/67/EECmakes ,provision fora
subsidy tobegranted onimports ofsugar ifthe c.i.f .price for sugar is
higher than thethresold price ;whereas ,tnder Article 2ofRegulation (EEC)
no608/72,theCouncil must decide onthegranting ofthesubsidy onimports
ofsugar where itisfound that supplies totheCommunity ortoahigh-consumption
region oftheCommunity cannolonger bemaintained ;
Whereas thec.i.f .price hasbeen higher than thethreshold price since December 1973
whereas ,given thelatest estimate offoreseeable production ,imports andcon­
sumption ,sugar supplies totheCommunity asawhole cannolonger bemaintained ;
whereas ,inview oftheseriousness ofthesituation ,animport subsidy must be
decided on;
Whereas theprices forsugar ontheCommunity market ,particulary inthedeficit
regions ,areappreciably higher than Community prices ;whereas itisnecessary to
provide forsugar tobeimported insufficient quantities toenable thegeneral
objective ofmaintaining sugar supplies attheCommunity price tobeattainsd :
1)J0 No308 ,18.12.1967 ,p.l
2)J0 No
3)J0 NoL75,28.3.1972 ,p.5

Whereas ,hr,vin ?regard "totheforward market insugar ,thecosts of
thoimport subsidies will bereduced iftheimporters concerned are
authorised toexport anequivalent quantity ofsugar produced during
the1975/76sugar yearj v
Whereas ,inview ofthecomplexity oftheproposed rueasure andinorder
toensure equal opportunities forallimporters ,theamount ofthe
subsidy should bedetermined bymeans ofaninvitation totender )
HAS AD0PT3D THES REGULATION :

Article 1
Asubsidy shall "begranted onwhite sugar andraxsugar imported into the
Community from third countries «
Article 2
Theimport subsidy shall relate only tothequantity ofsugar required to
guarantee supplies ofsugar totheCommunity until thebeginning ofthe
1975 "beet year onthe "basis oftheCommunity price#
Article 3
1#Tenders shall "beinvited forthepurpose ofdetermining thesubsidy
perunit ofweight ofsugar .
2*Thetendering conditions must guarantee equality ofaocess forall
persons established intheCommunity *
3«Thesuccessful tenderer shall berequired toabide byamaximum price
level ,fixed byreference tothethreshold price ,forsales ofthesu­
gartoconsumers intheCommunity#
4«Thetenderer mayexport during aspeoified period %quantity ofsugar
v
equal tothat towhich histender relates without theproviaons of
Article 16(l)ofRegulation noIOO9/67/EEObeing applied#
Artiole 4
This Regulation shall enter into force onthethird dayfollowing its
publication intheOfficial Journal oftheEuropean Communities#
This Regulation shall bebinding initsentirety anddirectly applicable
inallMember States#
Done atBrussel ,
yFor the Gouncil
The Président

Proposai .fo?a
REGULATION(EH))o?VrjsjCOUFTIL
onthefinancingofthesubsidy,onsugariaportsandthegranting
ofasubsidyonsugarproducedinexcessofthemaximumquota
THECOUNCILOFTHEEUROPE/JTCOMIIUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle43thereof;
HavingregardtotheproposalfromtheCommission;
Havingregardto.theOpinionof.theEuropeanParliament;
Whereas,underArticle16ofCouncilRegulationNoIOCS/6'J/EEG^of
18December196?onthecommonorganization ofthemarketinsugar,
aslastamendedbyRegulation(EEC)IToJl^'yasubsidyonsugar
importswasdecidedonbyCouncilRegulation(EEC)NO/74^of
1974ontheintroduction ofasubsidyonimportsofwhite
andrawsugar;
Whereas,inordertolimitasParas-possiblethefinancialconsequences
ofsuchimportsandtoupholdCommunitypreference,thefieldofaction--
oftradersshouldbeenlargedtoincludeCommunitysugarproducedinexes
ofthemaximumquotawhich,underArticle25ofRegulationNoIOO9/67/EEC
shouldbeexportedtothirdcountries;".■ .v'■
Whereas,thefinancingofsubsidiesonsugarimports,whetherunder
Regulation(EEC)No/74orunderthisRegulation,isataskforthe
Communityasawholewithintheframeworkoftheregularization of
agricultural markets;whereasthenecessarymeasuresshouldtherefore
betaken;
HA3ADOPTEDTHISREGULATION s
1OJNo308,18December196?,p#l
2OJ
30J

ArticleI
1#Adecisionmay"betakentograntasubsidyinrespectofsugar
producedinexcessofthe-maximumquotaintheCommunityduring-
the1973/74and1974/75sugaryearsandwhich,underArticle25
ofRegulationlibIOO9/67/EEC1should "beexportedtothirdcountries#
2*Theintroduction ofthesubsidyanddetailedrulesfortheapplication
ofthisArtioleshall"beadoptedinaccordancewiththeprocedure
laiddowninArticle40ofRegulationHotIOO9/67/EEO#
Article2
Asregardsthefinancingofthecommonagriculturalpolicy,thesubsidy
–grantedonimportsofsugarpursuantto.Article16ofRegulation
NoIOO9/67/EECor. , ',
–grantedinrespectofsugarproducedin.excess.ofthemaximumquota
pursuantto.Article1
shallberegardedasintervention measuresintendedtoregularizeagri­
culturalmarkets#
.Article3
ThisRegulationshallenterintoforceonthethirddayfollowingits
publicationintheOfficialJournaloftheEuropeanCommunities#
ThisRegulationshallbebindinginitsentiretyanddireotly
applicableinallMemberStates# -
V '
DoneatErussel,. FortheCounoil
ThePrésident