COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 03.03.1997 
COM(97) 90 final 
Proposal for a 
COUNCIL REGULATION (EO 
amending Regulation (EEC) No 1789/81 laying down general rules concerning the system of 
minimum stocks in the sugar sector 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
The minimum stock arrangements in the sugar sector are intended to maintain normal supplies 
for each of the regions of the Community in the event of shortages. To that end, sugar 
manufacturers and refineries have a standing obligation to maintain stocks of a certain quantity 
of sugar which they may not dispose of without Community authorization, without which they 
are liable to pay an amount representing the economic advantage they draw from such 
operations and the cost of transporting the sugar from areas with a surplus to areas with a deficit. 
As a result of the abolition of the threshold price for white sugar since 1 July 1995 following the 
Marrakesh agreement which served as the basis for calculating that amount, the Commission 
thinks it appropriate to propose to the Council to amend its Regulation (EEC) No 1789/81. A 
flat-rate amount will be set, calculated on the basis of the same elements and the same method in 
force during the last marketing year (1994/95) to which that threshold price applied. It also 
proposes to the Council to provide for the possibility of reducing that amount by the 
Management Committee procedure, to take account of any future reductions in the intervention 
price for white sugar, which was also a reference factor in establishing the amount in question. 
Henceforth the amount will be a flat-rate amount calculated as follows: 
Amounts based on former Article 6 (in force until 30 June 1995) Amounts in the proposal 
of Regulation (EEC) No 1789/81 (ECU/100 kg of white sugar) 
1. Flat-rate amount representing the advantage of 
release from the aforementioned obligation 0.193 0.193 
2. Difference: 
2.1. Target price 66.50 
2.2. Transport costs from surplus area to deficit area6.77 
2.3. Storage levy 2JÛ 
2.4. (2.1 + 2.2 + 2.3) Threshold price 75.77 (imaginary threshold price) 
2.5. Intervention price 63.19 
2.6. Storage levy 2J5jQ 
2.7. (2.5 + 2.6) Intervention price + storage levy 65.69 
2.8. (2.4 - 2.7) Difference referred to in (b) second 10.08 
subparagraph of Article 6 of Regulation 1789/81 
3. Flat-rate amount 2.415 2.415 
TOTAL 12.688 12.688 - rounded up to 12.70 
JL 
Proposal 
COUNCIL REGULATION (EC) No 
of 
amending Regulation (EEC) No 1789/81 laying down general rules concerning the system of 
minimum stocks in the sugar sector 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EEC) No 1785/81 of 30 June 1981 on the common 
organization of the markets in the sugar sector1, as last amended by Regulation (EC) 
No 1599/962, and in particular Article 12(2) thereof, 
Having regard to the proposal from the Commission, 
Whereas Council Regulation (EEC) No 1789/81 of 30 June 1981 laying down general rules 
concerning the system of minimum stocks in the sugar sector3, as amended by Regulation (EC) 
No 260/964, defines the factors for determining the amount to be levied in the event of disposal 
by sugar manufacturers of quantities of sugar forming part of the minimum stock under 
conditions other than those laid down; whereas one of those factors is the threshold price which 
was abolished with effect from 1 July 1995; 
Whereas the aforementioned amount should henceforth be set as a flat-rate amount fixed at the 
overall level resulting from application of the same method as that applicable during the last 
marketing year of application of the threshold price for white sugar 1994/95; whereas, however, 
provision should also be made for it to be possible to reduce that flat-rate amount to take account 
of any major reduction of the intervention price for white sugar in the future, 
1 OJNoL 177, 1.7.1981, p. 4. 
2 OJ No L 206,16.8.1996, p. 43. 
3 OJ No L 177, 1.7.1981, p. 39. 
4 OJ No L 34, 13.2.1996, p. 16. 
HAS ADOPTED THIS REGULATION: 
The second subparagraph of Article 6 of Regulation (EEC) No 1789/81 is hereby replaced by 
the following: 
"That amount shall be ECU 12,70 per 100 kilograms. The amount may be reduced in accordance 
with the procedure laid down in Article 41, taking account in particular of the amount of any 
reduction in the intervention price for white sugar." 
Atii£k2 
This Regulation shall enter into force on the third day following its publication in the Official 
Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at For the Council 
4-

r FINANCIAL STATEMENT 
BUDGET HEADING: 1119 APPROPRIATIONS: p.m. 
2. TITLE: 
Proposal for a Council Regulation amending Regulation (EEC) No 1789/81 laying down general rules concerning the 
system of minimum stocks in the sugar sector 
3. LEGAL BASIS: 
Council Regulation (EEC) No 1785/81 of 30 June 1981 
4. AIMS: 
Permitting the continuation of the application of the rule under which an amount has to be paid by the manufacturers and 
refiners of sugar who market without authorization their minimum stock of sugar which is held for the purpose of assuring 
the normal supplying of the Community market 
5. FINANCIAL IMPLICATIONS PERIOD OF 
12 MONTHS 
(ECU million) CURRENT 
FINANCIAL 
YEAR (97) 
(ECU million) FOLLOWING 
FINANCIAL 
YEAR (98) 
(ECU million) 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 
- NATIONAL AUTHORITIES 
- OTHER 0 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 1999 
p.m. 2000 
p.m. 2001 
p.m. 2002 
p.m. 
5.2 METHOD OF CALCULATION: 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET? YES/NO 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE 
CURRENT BUDGET? YES/NO 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY? YES/NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO 
OBSERVATIONS: 
In the past there have been no quantities concerned and there is no foreseeable (negative) expenditure for the future. 
For 1999 = p.m. 
S 
ISSN 0254-1475 
COM(97) 90 final 
DOCUMENTS 
EN 03 01 
Catalogue number : CB-CO-97-078-EN-C 
ISBN 92-78-16362-7 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
c