Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1785/81 on the common organization of the markets in the sugar sector
Date: 1993-09-29
Institutions: European Commission
Subjects: common organisation of markets, export refund, marketing, sugar, syrup

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

COM(93) 442  final 

Brussels, 29  September  1993 

Proposal  for a 
COUNCIL REGULATION (EEC) 
amending Regulation  (EEC) No  1785/81  on the common organization of 
the markets in the sugar sector 

(presented by the Commission) 

it 

.-^..-^ 

EXPLANATORY  MEMORANDUM 

I.  Sugar production  arrangements,  supplies  to  Community  refineries  and Community  and 

national  aids 

The period of validity of the production quota arrangements set by the basic sugar sector, 
Regulation  (EEC)  No  1785/81,  was  renewed  in  1991  for  the  1991/92  and  1992/93 
marketing years and has again been renewed for  1993/94  only.  Under Article 23  of the 
Regulation these arrangements are due to be reviewed prior to determination  of the rules 
to be applied from  1 July  1994.  On the occasion of this fresh review the conclusions are 
not yet  known of  the  international  trade negotiations  although  these  are  likely  to  affect 
sugar.  Within the Community  the single  market has only just been put into effect  and a 
new  sweetener  of  agricultural  origin,  inulin  syrup,  has  just  been  launched  on  the 
Community  markets  in  direct  competition  with  sugar  and  isoglucose.  On  the  world 
market the  situation  continues  volatile  and subject to  erratic, unforeseeable  movements. 
Production  has  exceeded  consumption  for  several  years  and  stocks  are  large.  The 
importance  of  these  interrelating  factors  and the  imminence  of  the next  marketing year 
lead  the  Commission  to  propose  that  the  Council  again  retain  the  sugar  production 
arrangements unchanged, on this occasion  for  the  1994/95  marketing year,  and likewise 
maintain  the  preferential  arrangements  for  Portuguese  raw  sugar  imports  from  third 
countries, the Community refining aid arrangements and the national  aid arrangements in 
Germany, Italy  and the United Kingdom. 

II.  Production of  inulin syrup 

Since  1981  the  common  organization  of  the  sugar  sector  markets, based  as it has been 
since its origin on official  prices and quotas, has had to include  in its scope, in addition 
to sugar and its derivatives and the basic agricultural products from which it is made, the 
high  fructose  content  syrup  called  isoglucose.  This  processed  agricultural  product  is 
generally made from starch converted into glucose and is defined as 'the product obtained 
from  glucose  or its polymers  with  a content  by  weight  in the  dry state of  at least  10% 
fructose'.  The fructose  content  can be  raised to  98% or more  and a crystalline product 
obtained. 

Like  sugar,  isoglucose  is  covered  by  the  specific  rules  of  the  sector  such  as  quota 
restrictions on the volume of production that can be disposed of on the Community market 
and production levies designed to make producers themselves finance the cost of disposing 
of  surplus Community  production. 

Until  now,  isoglucose  has  been  the  only  high  fructose  syrup  to  be  produced  in  the 
Community  on  a large  scale  and  marketed.  As  a result  of  technical  developments  in 
natural  sweetener  production,  a  new  high  fructose  syrup  has  just  been  launched 
industrially on the Community sweetener markets.  The new product, which can be called 
inulin  syrup  (fructose  syrup),  is  obtained  from  chicory,  which  is  generally  used  at the 
moment, or Jerusalem artichokes.  Production is by extraction of inulin, an oligopolymer 
of fructose  that is the main constituent of the roots of  agricultural  plants such as chicory 

and Jerusalem  artichoke and is not itself a sweetener but by complete or partial  hydrolysis 
of the inulin  gives an iriulin syrup the fructose  content  of which  can  reach  levels of more 
than 80%.  It is used by itself or mixed with glucose and is fully  comparable to isogiucose 
but  does  not  fall  within  the  legal  definition  of  that  production  determined  in  the 
Community  rules  and,  as  a  direct  substitute  for  isoglucose  and  liquid  sugar,  is  thus  in 
direct  competition  with  them. 

Free production  of this high fructose  syrup is thus likely to lead to its replacing isoglucose 
and liquid sugar on a Community  market where there is surplus production, the inevitable 
upshot  being  market  disturbance  and  displacement  of  Community  sugar  to  exportation 
with a refund.  Since at the moment this product falls completely  outside the scope of the 
Community  rules, no production  levies are paid  to  cover the cost of  refunds  through  the 
special  self-financing  sugar  export arrangements  although  the product  benefits  indirectly 
from  the  market  support  measures. 

Since  the  Commission  is  proposing  that  the  Council  maintains  unchanged  the  sugar 
production  arrangements  based on quotas and  regulatory  prices, the privileged  economic 
position  of  inulin  syrup  thus  carries  the  risk  of  rapid  expansion  of  production  to  the 
disadvantage  of  sugar  and  isoglucose  production,  which  would  not  only  be  treated 
unequally  by  comparison  but  would  be  burdened  with  additional  costs,  while  the  new 
product  would  benefit  indirectly  from  the  guarantees  given  to  sugar  while  remaining 
outside  the system. 

The Commission thus proposes that under Article  23(4) of Regulation  (EEC) No  1785/81 
inulin  syrup  be  included  in  the  common  organization  of  the  sugar  markets  and  covered 
by  the  provisions  of  that  Article,  i.e.  in  particular  that  quotas  for  inulin  syrup  will  be 
determined  by reference  to production  in the period  1 July  1992 to  30 June  1993 with  a 
similar corrective to that used for  isoglucose (maximum  quota not less than 65% or more 
than  85% of  installed  production  capacity  on  1 October  1992).  The  Commission  also 
proposes that production  capacity  should be more  clearly  defined  in terms of  continuous 
and  complete  processing  of  the  basic  agricultural  product  into  the  final  product,  inulin 
syrup, in an  installation  designed  and  reserved  for  this purpose. 

Proposal  for a 
COUNCIL  REGULATION (EEC) 
amending  Regulation  (EEC) No  1785/81  on the common  organization  of 
the markets in the sugar sector 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European  Economic  Community,  and  in 
particular Articles 42  and 43  thereof, 

Having regard to the proposal  from the Commission, 

Having  regard to the opinion  of the European Parliament, 

Having regard to the opinion of  the Economic  and Social  Committee, 

Whereas  Article  23  of  Council  Regulation  (EEC)  No  1785/81(1),  as  last  amended  by 
Regulation (EEC) No  1548/93(2), continues the production  quota arrangements for the sector 
in the  1993/94  marketing year and also  stipulates that before  1 January  1994 the Council  is 
to determine the arrangements to be applied to sugar and isoglucose from  1 July  1994; 

Whereas  the present  sugar-production  arrangements  preclude  any risk of  sudden  change in 
areas planted  and their provisions  on self-financing  make producers financially  responsible 
for  disposal  of  surplus  Community  production;  whereas  it  is  therefore  possible  for  these 
arrangements to coexist  with those for other arable crops; 

Whereas  it is  thus  desirable to  extend the  existing  production  arrangements  to the  1994/95 
marketing year, together with the preferential  arrangements for  importation of third country 
raw sugar into Portugal, the Community  refining  aid arrangements and the authorizations to 
grant national  aid in Germany, Italy  and the  United Kingdom; 

Whereas the said Article 23 stipulates that the Council  shall also adopt before  1  January  1994 
production  arrangements  for  inulin  syrup; whereas  continuation  of  the  existing  production 
quota  arrangements  for  sugar  and  isoglucose  for  the  1994/95  marketing  year  requires that 
similar arrangements be applied to the production of inulin syrup, which as a direct substitute 
for isoglucose and liquid sugar would otherwise be in direct competition  with these products 
on unequal terms of treatment, detrimental to them, since in view of the Community's surplus 
production of sugar any production of inulin syrup would necessarily  result in exportation of 
a  certain  volume  of  sugar  at the  expense  of  producers  of  sugar  and  isoglucose  alone  and 
would risk a serious disturbance of the market; 

(1)  OJNoL  177,  1.7.1981, p. 4. 
(2)  OJ No  L 154, 25.6.1993, p. 10. 

Whereas  as  regards  trade  and  also  intervention  prices  and  storage  the  provisions  covering 
isoglucose should, given  the great similarity  of the two products, also be applicable to inulin 
syrup; 

Whereas  apart  from  one  fairly  long-established  production  unit  in  one Member  State  inulin 
syrup production has commenced fairly  recently  in the Community; whereas it is accordingly 
equitable  to  assign  to  each  producer  quotas  in  line  with  his  production  in  the  most  recent 
possible period, namely,  as specified  in  Article  23(4)  of  Regulation  (EEC)  No  1785/81,  his 
output in the period  1 July  1992 to 30 June  1993; whereas in the case of "B"  quotas  reference 
should be made to the treatment  of isoglucose production;  whereas for  the sake of  economic 
equity,  quotas  should  be  determined  in  the  same  way  as  was  done  for  isoglucose,  using  as 
corrective  for  the  undertakings  in  question  their  installed  technical  production  capacity  on 
1  October  1992; 

Whereas  to  make  this  corrective  uniform  throughout  the  Community,  production  capacity 
claims by firms applying  for  quotas that  are not  fully  justified  should,  as far  as possible, be 
discounted;  whereas  to  this  end  "production  capacity"  should  be  defined  by  reference  to 
conversion  of  the basic  agricultural  product  into  inulin  syrup  in  a continuous  and  complete 
process  extending  from  cropping  of  the  agricultural  product  to final processing; 

Whereas this Regulation should be applied under the best possible conditions; whereas certain 
transitional  measures  may  accordingly  prove  necessary;  whereas these  should  be  adopted in 
accordance  with  the procedure  laid  down  in  Article  41  of  Regulation  (EEC) No  1785/81, 

HAS ADOPTED  THIS REGULATION 

Article 1 

Regulation  (EEC) No  1785/81 is hereby  amended  as  follows: 

1.  The following  product  is added  to  Article  1(1): 

CN  code 

Description 

(h) 

ex  17 02  60  90  10 
ex  17 02  90 90  10 

) 
) 

Inulin  syrup 

2.  The following  is added  to  Article  1(2): 

"(d)  "inulin  syrup"  means  the  immediate  product  obtained  by  hydrolysis  of  inulin  or 
oligofructoses,  containing  in the dry  state  at least  10% fructose  in free  form  or  as 
sucrose." 

3.  The following  paragraph 2(a)  is inserted in Article 7: 

"2(a)  Conditions  for  purchasing  the  basic  agricultural  product  for  the  manufacture  of 
inulin  syrup  shall  be  governed  by  inter-branch  agreements  between  Community 
growers of those basic products and inulin  syrup producers." 

4.  Article  9(3) is replaced by the  following: 

"3.  It may be decided to grant production refunds on the products listed in Article  1(1 )(a), 
(f)  and (h) and on the syrups listed in Article  1(1 )(d) where these fall  within one of 
the  situations  contemplated  by  Article  9(2)  of  the  Treaty  and  are  used  in  the 
manufacture of  certain products of the chemical  industry." 

5.  In Article 9(4)(b)  "1993/94 marketing year" is replaced by  "1994/95  marketing year". 

6.  In Article  9(4)(c)  "Throughout  the  1993/94  marketing  year" is  replaced  by  "During the 

1994/95  marketing year". 

7.  In Article  12(2), the second subparagraph  is replaced by the  following: 

"In accordance  with  the  same  procedure,  an  obligation  equivalent  to  the  obligation  to 
maintain a minimum stock may be laid down for the products referred to in Article  1(1 )(f) 
and (h)." 

8.  In Article  13(1), the first subparagraph  is replaced by the  following: 

"All  imports  into  and  exports  out  of  the  Community  of  the  products  listed  in 
Article  l(l)(a), (b), (c), (d), (f),  (g) and (h) shall be conditional  upon the presentation of 
an  import  licence  or  an  export  licence  issued  by  the  Member  States  to  any  applicant 
irrespective of the place of his establishment in the Community." 

9.  Article  16(1) is replaced by the  following: 

"1.  A levy  shall  be charged on imports of the products listed in Article  1(1 )(a), (b), (c), 

(d), (f),  (g)  and (h)." 

10.  In Article  16, the following  paragraph 6a is inserted: 

"6a  The levy on the product listed in Article  1(1 )(h) shall be equal, per  100 kilograms of dry 

matter, to  1.9 times the levy  set under paragraph 6 of  this Article." 

11.  In Article  16a(l)  "1993/94 marketing year" is replaced by  "1994/95  marketing year". 

12.  In Article  17(4) the second  subparagraph is replaced by the following: 

"It may  be  decided  in  accordance  with  the  same  procedure  that the  system  provided  for in 
paragraph 2 shall apply in whole or in part to any of the products listed in Article  1(1 )(d), (f), 
(g) and (h)." 

13.  Article  18(4) is replaced by the following: 

"4.  For the products listed in Article  1(1 )(b), (c), (d), (f), (g) and (h), provisions corresponding 
to those of paragraphs  1 and 2 of this Article and to the rules for their application may be 
adopted in accordance with the procedure laid down in Article 41." 

14.  In Article  19(2), the first  subparagraph is replaced by the  following: 

"2.  An export  refund  may  be provided for  the products listed  in  Article  1(1 )(f),  (g)  and (h) 

which  are exported in the natural  state or in the form of goods listed in Annex I." 

15.  In Article 21(2), the first indent in the first subparagraph is replaced by the following: 

"-  the  levying  of  any  customs  duty  on  the  products  listed  in  Article  1(1 )(a)  to  (d)  and  (f) 

to (h)'\ 

16.  Article 23  is replaced by the  following: 

"Article 23 

1.  Articles 24 to 32  shall  apply  in respect of the  1994/95  marketing year. 

2.  For the period shown  in paragraph  1 and without prejudice  to Articles 24(2)  and 25, the 
A and B quotas of undertakings producing sugar or isoglucose shall be those applicable for 
the  1993/94  marketing year. 

3.  For the period shown in paragraph  1, the basic A and B production quantities for sugar and 
isoglucose  used  in  the  assignment  of  quotas  shall  be  those  set  out,  as  appropriate,  in 
Article 24(2) or 24a(2). 

4.  For  the  period  shown  in  paragraph  1,  Member  States  shall,  in  accordance  with  the 
requirements of Article 24b, assign A and B  quotas to undertakings producing inulin syrup 
in their territory that meet those requirements.  Articles 24 and 25  shall not apply to such 
undertakings. 

5.  Before  1 January  1995 the  Council  shall, in  accordance  with the procedure  laid down in 
Article 43(2)  of  the  Treaty,  adopt  the  arrangements  to  apply  from  1 July  1995  to  the 
production of  sugar, isoglucose  and inulin syrup." 

17.  In Article  24(1),  "1992/93" is replaced by "1993/94". 

18.  In Article  24(l)(a),  "the  1991/92,  1992/93  and  1993/94  marketing years" is replaced by "the 

1991/92 to  1994/95  marketing years". 

19.  In Article 24(3),  "1992/93" is replaced by "1993/94". 

20.  The following  Article  24b  is inserted. 

"Article 24b 

1.  Without  prejudice  to  Article  24  or  to  paragraph  3,  the  A  quota  of  each  undertaking 
producing  inulin  syrup  shall  be  equal  to  its  production  volume  from  1 July  1992  to 
30 June  1993 from a specific  installation designed and reserved for hydrolysis of inulin as 
part of  a  complete  integrated  conversion  process  stretching  from  reception  of  the basic 
agricultural product to final production of inulin syrup.  Production shall be verified by the 
Member State on terms to be determined. 

2.  The B  quota of  each  undertaking producing  inulin  syrup shall be  23.55% of  its  A quota 

determined pursuant to this Article. 

3.  The A quota indicated in paragraph  1 shall if necessary be adjusted so that the sum of the 
A  and  B  quotas  is  not  more  than  85% or  less  than  65% of  the  undertaking's  installed 
capacity  on  1 October  1992 for the continuous industrial  production of inulin syrup from 
the  specific  installation  designed  and  reserved  for  hydrolysis  of  inulin  as  specified  in 
paragraph 1. 

This capacity  will  be  determined by the Member  State on the basis of  the daily  tonnage 
of the basic product processed into inulin syrup of the basic agricultural product during a 
maximum period of three months per year. 

4.  For the purposes of verification as indicated in paragraph  1, manufacturers producing inulin 
syrup on or after  1 July  1992  must forthwith  notify  to the Member  State in  which their 
production  facilities  are  located,  details  of  each  inulin  hydrolysis  installation  used  for 
manufacturing,  as  specified  in  paragraph  1,  the  product  defined  in  Article  1(2).  The 
Member  State  may  call  upon  the  interested  party  to  provide  any  further  information  it 
needs. 

Member States shall  take all  necessary  action to check  the accuracy  of  notifications. 

For the purpose of their allocation by the Member State, A and B quotas shall be expressed 
as  tonnes  of  dry  matter  following  application  of  a  coefficient  of  1.9  to  actual  verified 
production. 

Member States shall notify the quotas allocated and their holders to the Commission, which 
shall  notify  them to the other Member States. 

5.  For the purposes of  this Regulation: 

(a) 

"A  inulin  syrup"  shall  be  inulin  syrup  the  production  of  which  is  assigned  to  a 
specific  marketing year within the undertaking's A quota; 

(b)  "B inulin  syrup" shall  be the inulin  syrup the production of  which  is  assigned to a 
specific  marketing year and thereby falls outside the A quota of the undertaking but 
does not exceed the sum of  its A and B quotas; 

(c) 

"C inulin  syrup"  shall  be  inulin  syrup  the  production  of  which  is  assigned  to  a 
specific  marketing year  and which  is  either  additional  to  the  sum  of  the  A  and B 
quotas of  the  undertaking  in question  or has been produced by  an undertaking not 
provided with quotas. 

6.  Rules for the application of this Article, in particular the terms mentioned in paragraph  1, 

shall  be adopted in accordance  with the procedure laid down in Article 41." 

21.  Article 26(1) is replaced by the following: 

"1.  Without  prejudice  to  paragraph 2,  C  sugar  not  carried  forward  pursuant  to  Article 27, 
C isoglucose  and  C  inulin  syrup  may  not  be  disposed  of  on  the  Community's  internal 
market  and  must  be  exported  in  the  natural  state  without  further  processing  before 
1 January following  the end of the marketing year in question. 

Articles  8, 9,  18 and  19 shall not apply to mis sugar, and Articles 9,  18 and  r9 shall not 
apply to this isoglucose  or this inulin syrup." 

22.  In Article 26(3), the second subparagraph is replaced by the following: 

*These  rules  shall  provide  in  particular  for  the  levying  of  a  charge  on  the  C sugar, 
C isoglucose  and C inulin  syrup  referred  to  in paragraph  1 in  respect  of  which proof of its 
export  in  the  natural  state  within  the  prescribed  period  was  not  furnished  at  a  date  to  be 
determined." 

23.  Article 28(1)  to (4) is replaced by the  following: 

"1.  Before  the end of  each marketing year there shall be recorded: 

(a) 

(b) 

(c) 

(d) 

estimates of  the production  of  A  and  B  sugar,  A  and B  isoglucose,  and A  and B 
inulin  syrup attributable to the marketing year in question; 

estimates  of  the  quantities  of  sugar,  isoglucose  and  inulin  syrup  disposed  of  for 
consumption  within the Community  during the marketing year in question; 

the exportable surplus obtained by subtracting the quantity referred to in (b) from the 
quantity referred to in (a); 

estimates  of  the  average  loss  or  the  average  revenue  per  tonne  of  sugar  for  export 
obligations to be fulfilled  during the current marketing  year. 

This  average  loss  or  average  revenue  shall  be  equal  to  the  difference  between  the 
total  amount of refunds  and the total  amount of levies on the total tonnage of export 
obligations  in  question; 

(e) 

estimates  of  the total  loss or  the  total  revenue, obtained  by  multiplying  the  surplus 
referred  to in  (c) by  the  average  loss or  the  average  revenue  referred  to in (d). 

2.  Before the end of the  1994/95 marketing year there shall be recorded cumulatively  for the 

1991/92,  1992/93,  1993/94  and  1994/95  marketing years: 

(a) 

the exportable surplus established on the basis of the definitive production of A and 
B  sugar, A and B isoglucose,  and A and B  inulin syrup and the definitive  quantity 
of  sugar,  isoglucose  and  inulin  syrup  disposed  of  for  consumption  within  the 
Community; 

(b) 

the average loss or average revenue per tonne of sugar resulting from the total export 
obligations  in  question  determined  by  following  the  calculating  rule referred  to in 
paragraph  1(d), second subparagraph; 

(c) 

the total  loss or total  revenue obtained by multiplying  the surplus referred to in (a) 
by the average loss or the average revenue referred to in (b); 

(d) 

the total  sum of  the basic production  levies  and the B levies charged. 

The estimated total loss or total revenue referred to in paragraph  1(e) shall be adjusted on 
the basis of the difference  between the amounts recorded in (c)  and (d). 

3.  When the recorded figures referred to in paragraph  1  result, after adjustment in accordance 
with paragraph 2, and without prejudice to Article 29(1), in an estimated overall loss, that 
loss  shall  be divided by  the estimated production  of  A and B  sugar, A and B  isoglucose 
and A and B inulin syrup attributable to the current marketing year.  An amount equal to 
this  quotient  shall  be  charged  on  manufacturers  as  a  basic  production  levy  on  their 
production of  A and B sugar, A and B isoglucose  and A and B inulin syrup. 

This levy  shall  not, however, exceed: 

-  on the sugar  in question, an amount  equal  to  2.0% of  the intervention price  for white 

sugar; 

-  for the inulin  syrup in question, expresed  as sugar/isoglucose equivalent by applying a 

coefficient  of  1.9, the maximum  amount payable on white sugar; and 

-  on  the  isoglucose  in  question,  the  share  of  the  basic  production  levy  borne  by  sugar 

manufacturers. 

4.  When the maximum permitted basic production levy does not fully  cover the overall  loss 
referred to in the first subparagraph of paragraph 3, the uncovered balance shall be divided 
by the estimated production of B sugar, B isoglucose and B inulin syrup attributable to the 
marketing  year  in  question.  An  amount  equal  to  this  quotient  shall  be  charged  on 
manufacturers  as a levy on their production  of B sugar, B isoglucose  and B inulin syrup. 

10 

Subject to paragraph  5, this levy  shall  not, however, exceed: 

-  on B  sugar, an amount equal to 30.0% of the intervention price for white sugar; 

-  for  B  inulin  syrup,  expressed  as  sugar/isoglucose  equivalent  by  application  of  a 

coefficient  of  1.9, the maximum  amount payable on B white sugar; and 

-  on B isoglucose, the share of the levy  on B sugar borne by  sugar manufacturers." 

24.  Article 28a(2)  is replaced by the  following: 

"2.  The additional  levy  shall  be determined for each undertaking producing sugar, isoglucose 
or inulin syrup by applying to the total sum due from the undertaking by way of production 
levies  for the marketing year in question  a coefficient  to be determined.  This  coefficient 
shall  be the ratio, reduced by  1, for the Community  between the overall  loss recorded for 
the marketing year in question  under Article 28(1) and (2) and the revenue from the basic 
production  levies  and  B  levies  due  from  manufacturers  of  sugar,  isoglucose  and  inulin 
syrup, respectively,  for that marketing year." 

25.  The following  Article 28b is added: 

"Article 28b 

1. 

Inulin  syrup  producers  may  require  sellers  of  the  basic  agricultural  product  used  to 
produce  such  inulin  syrup  to  be  responsible  for  part  of  the  basic  production  levies, 
B levies  and additional  levies  charged to  the producers.  This  share cannot  exceed that 
borne by the sugar-beet growers for the marketing year concerned; it shall be determined 
by inter-branch agreement or by contract with reference to the purchase price of the basic 
product delivered for this purpose  under the marketing year in question. 

2.  Detailed  rules for  the  application  of  paragraph  1 shall  be  adopted,  where necessary, in 

accordance with the procedure  laid down  in  Article 41." 

26.  In  Article  46(1),  (3)(b),  (5)  and  (6),  "1993/94  marketing  year"  is  replaced  by  "1994/95 

marketing year". 

27.  In the first subparagraph of Article 46(7), "1990/91,  1991/92, 1992/93  and 1993/94 marketing 

years" is replaced by  "1990/91  to  1994/95  marketing years". 

28.  In Article 48, "30 June  1994" shall  be replaced by  "30 June 1995". 

11 

Article  2 

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  that  of  its publication  in  the 
Official  Journal  of  the  European  Communities. 

It  shall  apply  from  1 July  1994. 

This Regulation  shall  be binding  in  its entirety  and  directly  applicable  in  all  Member  States. 

Done at Brussels, 

For the Council 
The  President 

12 

FINANCIAL  STATEMENT 

DATE: 

1. BUDGET HEADING: Expenditure 11 

Revenue  1000 and  1100 

APPROPRIATIONS:  (DB93): ECU 2. GYI mi 11 ion 
ECU 1.263,7 and 716,1 million 

2. TITLE: 

Proposal  for a Council Regulation  (EEC) amending Regulation  (EEC) Kb 1785/81 on the ocmnon organization 
of  the markets in the sugar  sector. 

3. LEGAL BASIS: Articles 42 and 43 of the Treaty 

4. AIMS OF PROJECT: 

* 

Prolongation of  the ocmnon organization of  the sugar markets for  the 199V95marketing year  including 
the  introduction of a production quota  for inulin  syrups. 

5.  FINANCIAL  llwPLICATIONS 

Period of  12 months 
(ECU mi 11 ion) 

Current  Financial  Year 
(1994)(ECU million) 

Following  Financial  Year 

(199$(ECUmillicn) 

5.0 EXPENDITURE 

- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENT ION) 

2  2U7.1 

5.1  REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS  DUTIES) 

- NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2 METHOD OF CALCULATION: 

1  723.7 

199  6 

110.4 
p.m. 

p.m. 

2  096.7 

1  723.7 

1997 

1998 

1999 

} 

(see attached tables for details of  calculation) 
Expenditure  is a I located 95% to the 1995 budget and 5% to the 1996 budget. 
Revenue  Is foreseen to be 100% for the 1995 budgetary year. 

6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6 .2 

IS  A  SUPPLEMENTARY  BUDGET  NECESSARY? 

6 .3  WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

OBSERVATIONS: 

13 

YES 

YES 

ND 

YES 

Annex 1 

EXPENDITURE  IN THE SUGAR  SECTOR 

Refunds: 

Reimbursement  of  storage 
costs 

3 015 000 tonnes  x 420 ECU/t 

(1) 

ECU million (A) 

1 266.3 

86.0 million  t/month  x 5.2 ECU/t 

447.2 

Expenditure  of  intervention 
agencies  for purchase and 
disposal  operations 

(forfeit) 

Refunds  for use in the 
chemical  industry 

200 000 x (420-70)  ECU/t 

Aid  for the marketing of 
raw  sugar 

DOM-EUR  11: 290 000 t x ECU  71/t 
(cane) 

PORTUGAL: 90 000 t x ECU 71/t 
(beet) 

Subsidies  for the  import  of sugar 

Stock  depreciation: 

Adaptation  aid for the Portuguese 
industry 

Community  aid for raw sugar:  1 720 000 t x ECU  5.80/t 

1 .0 

70.0 

2U.6 

6.4 

p.m. 

p.m. 

p.m. 

10.0 

10.  Community  share of the 

nat ional  UK aid 
11. Aid for the Spanish sugar 

industry 

1  130 000 t x ECU 4.5/t x 2 5% 

ECU 37.8 million 

x 1 /3 x  5^ 

TOTAL 

1.3 

____6._3_ 

1 829.1 

EFFECT  OF  THE  DOUBLE  RATE  1 829.1  x 1 207 

-  ECU 2  207.7  mi I I ion  (B) 

(1)  Including  173 000 tonnes  sugar  equivalent  from  the  production  of  inulin  syrup. 

14 

[TTfTsUfiAR 

UEBL 

DK 

GR 

ESP 

FR 

metrop 

dom 

IRL 

ANNEX, il: SUGAR  LEVIES AND HYPOTHESES  PER MEMBER  STATES 

1,207 
290 
29 
319 

1,207 

960 
40 
1000 

cotisation on lev 
i es 

1.207 

2996 
805,8 
3601,8 

2860 

759,2 

1.2071 

2530 
759.2 
3289,2 

2560 

759.2 

3619.2 

3319.2 

1,207 

466 
46.6 
512.6 

300 

300 

Calculation of the 

1,207 

680 

146 

626 

1.207 

326 
96,6 
424,6 

680J 
146| 

826| 

8,6 

28.7! 
37,3 

45.0 

328 
96,6 

4 2 46 

4,4 

19,0 
23.4 

28,2 

1.207 

2637.7 
811,6 
3449.3 
sugar 
2638 

811.3 
3449.3 

36.1 

159,2 
195,3 

235.7 
isogl 
28.9 

5,6 

34,5 

0.2 
0.5 
0.7 
0.8 

290 
29 
319 

3,3 
5.7 
9.0 

10.9 
ucose pro 
10,5 
1.8 
12,3 

960 
40 
1000 

10.5 

7.8 

18,3 

22.1 

75.0 
8,0 
83,0 

0,4 
0.7 

1.1 
1,3 
i n u l in  production  levy 

0,2 
0,2 

Calculation of the 

duction-

l e v i es 

1,207 

182 
18,2 
200.2 

182 

••8.2 
200.2 

2.1 
3.6 

5.7 

6.9 

37,9 

149.0 

186,9 

225,6 

15,9 

4,0 

19,9 

0,1 
0.3 
0.4 
0.5 

19 
4,5 
23,5 

0,2 

0.9 

1,1 
1,3 

50oLiJ<',OSF. 

'  v v „ h ; " no  • A 

">R  n".'.CT,ON9 

Î00Q T 
:OCOT 

A 'B 

,  - 

j  p yy 

:Mfc£CU(A) 
l,VioECU(B) , 

A U C T I ON A 
"lucnoNs 

;ooor 
;0COT 
!000T 

. î vy 

sMfo  ECU(A) 
;-^b  ECU(B) 

ECU/T) 
4,389t 
82.3921 

ECU/T 
10,466 
196.238 

56.7 
15.0 
71.7 

0,3 
1.2 

Calculation  of  the 

96.6 
23.3 
122,1 

1,3 

4,6 

5,9 
7,1 

IT 

1.207 
1320 

248,3 
1568,3 

1320 

248,3 

1568.3 

16.4 

48.7 

65,1 

78.6 

16.6] 

3.9 
20,4! 

0.1 
0.3 
0,4 

0,5 

NL 

1.207 

690 
182 
872 

690 

182 
872 

9,1 
35.7 

44,8 
54.1 

7,4 

1.7 

9,2 

0,0 

0.1 

38 
6.9 
46.9 

0.5 
1.7 

2,2i 

2.7! 

PORT 

UK 

EUR12 

1  207| 

63.6! 

701 

2! 

0.0; 
o.oi 

O.Oi 

0 ol 

6.6 

e.e! 

0  0! 
C  0; 
O.Oi 
o.oi 

1.207 

1040 
104 
1144 

1040] 
104| 

12.0! 
20.4| 

0  7; 

11187.3: 

24fi7 9; 

13675 2! 

10990; 

2434  6Î 

13424.6; 

'40,4 

477 8' 

6-5  2 
746  2 

22S  3 

45,3 

285  CI 

5  0 

•55  S' 
36  7; 
•92  5. 

2  0 
7  2 

9.2 

Calculation of the additional lev! 

44,7 

0,208 

23,4 

0,208 

196,0 

0,208 

9.2 

0.208 

19,4 

0.208 

188,4 

0,208 

ri es 

\ 

- ! 

704,2 
632,4 

5,7 

0.208 

65,5 

0,208 

47,1 

0,208 

0,0; 

0.208, 

33.0; 

0.206 

622  4 

9,3 

1.9 
2,3 
"Ècu/rf Calculation  of. the storage  levy 

49,2 

5,9 

40,8 

4.9 

JMtoJ£U{E 

pro< 

.'JCOS 

*«  T  FC'JfB) 

* ./•  fcVU(R) 

•Vj-.-CL'tB) 

_880 
30.8* 
37,2 

4 5 . 0| 

7.1 

: i . 2; 

424 

14,8 
17,9 

26.2 
0.0 
0,0 

17.9 
5.9 
£2.0, 

3392 

118,7 

143,3 

2 3 6 ,7 

0,0 

0,8 

143.3J 
.J1À. 
.5 

234 

8,2 

9.9 

10,9 

0,0 

0.2 

9,r» 

2,3 
23.3 

4.0 
4,8 

1021 

35,7 

43,1 

22.1 
0,0 
1.3 

4 3 ,1 
4 ,8 

39,3 

47,4 

3763 

131,7 

159,0 

225.6 

1.3 

0,5 

1 6 9 .0 

71,31 

4 3 3 ,8 

1.2 
1.4 

200 

7.0 
8.4 

6 .9 

0 ,0 

0.0 

8.4 

1.4 
16,7 

13,7 
16.5 

1570 

55,0 
66,4 

78,6 

0.0 

0,5 

66,4 

13,5 

9.8] 

11.8: 

942I 
33,0 

39,8 

54.1 

2.7 

0.1 
39,6 
11.8 

162  0 

108.5| 

O.Oj 

0  0, 

6  9! 

i 
S  3 

' 2'  8 
•  c;  a 

11 72i 

41,0; 

49  5' 

39 

4*6  0 

574  6' 

746  2 
1 1 . 1. 

b / 4. h 

1  .'..•'; 

ÎL 

0.1 j 
O.1! 

o.oj 
0,0! 
o.oj 

0 . 1! 

Î7T 

syrup  production, express^? as "saga**-equiwaient, in 1992/93  without  adjustment  fo<- production  capacity. 

E38j-.'-

j'\,  Ecui.  X 

ESN 0254-1475 

COM(93) 442 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-93-486-EN-C 

ISBN 92-77-59418-7 

Office for Officiai Publications of the European Communities 
L-2985 Luxembourg 

16