Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 1789/81 laying down general rules concerning the system of minimum stocks in the sugar sector
Date: 1997-03-03
Institutions: European Commission
Subjects: common organisation of markets, minimum stock, sugar, supply

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) 

of Regulation  (EEC) No  1789/81 

Amounts  in the  proposal 
(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 

2.6. 

Storage  levy 

63.19 

2J5jQ 

2.7. 

2.8. 

(2.5 + 2.6)  Intervention  price + storage  levy  65.69 

(2.4 - 2.7) Difference  referred  to in (b) second 
subparagraph  of Article 6 of Regulation  1789/81 

10.08 

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 

5.0 

EXPENDITURE 
-  CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTION) 

-  NATIONAL AUTHORITIES 
-  OTHER 

5.1. 

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

-  NATIONAL 

5.0.1 
5.1.1 

ESTIMATED EXPENDITURE 
ESTIMATED REVENUE 

5.2 

METHOD OF CALCULATION: 

PERIOD OF 
12 MONTHS 

(ECU million) 

CURRENT 
FINANCIAL 
YEAR (97) 
(ECU million) 

FOLLOWING 
FINANCIAL 
YEAR (98) 
(ECU million) 

0 

1999 
p.m. 

2000 
p.m. 

2001 
p.m. 

2002 
p.m. 

6.0 

6.1 

CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 
RELEVANT CHAPTER OF THE CURRENT BUDGET? 
CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE 
CURRENT BUDGET? 
WILL A SUPPLEMENTARY  BUDGET BE NECESSARY? 
WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

6.2 
6.3 
OBSERVATIONS: 

YES/NO 

YES/NO 

YES/NO 
YES/NO 

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 

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