Council Regulation (EC) No 2038/1999 of 13 September 1999 on the common organisation of the markets in the sugar sector
Date: 1999-09-13
Institutions: Council of the European Union
Subjects: common organisation of markets, import policy, prices policy, sugar, third country, trade policy

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 2038/1999

of 13 September 1999

on the common organisation of the markets in the sugar sector

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36 and 37 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Whereas:

provision should be made for measures to stabilise the
market in sugar and for this purpose there should be
fixed annually a target price for white sugar and, for the
areas having no deficit, an intervention price for white
sugar, as well as an intervention price for raw sugar,
and, for each of the deficit areas, a derived intervention
price for white sugar and, should the need arise, for raw
sugar; the above objective could be attained by making
provision for buying-in by intervention agencies at the
intervention prices; moreover, a compensation system
for storage costs for sugar produced both from raw
materials of Community origin, including molasses, and
preferential sugar could serve the same purpose; these
price guarantees given for sugar also benefit sugar
syrups, isoglucose and inulin syrup, the prices of which
are based on those of sugar;

(1)

(2)

Council Regulation (EEC) No 1785/81 of 30 June 1981
on the common organisation of the markets in the sugar
sector (3) has been substantially
amended several
times (4);
in the interest of clarity and rationality it
should therefore be codified;

substitutes

the operation and development of the common market
in agricultural products must be accompanied by the
establishment of a common agricultural policy to
include,
in particular, a common organisation of the
agricultural markets which may take various forms
isoglucose and
depending on the product concerned;
liquid sugar
inulin syrup are direct
obtained from sugar beet or sugar cane; therefore, the
markets in sugar, isoglucose and inulin syrup are closely
linked; the situation in the Community in respect of
sweeteners is characterised by structural surpluses and
any Community decision relating to one of these prod-
ucts inevitably has repercussions on the others;
it is
therefore necessary to have an organisation common to
the sugar,
isoglucose and inulin syrup sectors which
takes appropriate account of production features specific
to the various sectors;

for

(4)

in order not to interfere with the prices referred to
above,
intervention agencies may sell sugar only at a
price which is higher than the intervention price unless
it is to be exported either in the natural state or after
processing or is to be used for animal feeding; this rules
prevents the disposal of sugar to charitable organisations
for use for human consumption in the Community;
provision should therefore be made for such a poss-
ibility in the case of individual emergency aid operations
assuring the availability of supplies and thus repre-
senting at the same time a humanitarian operation; such
operations are effective only it rapidly implemented;
provision should therefore be made for the most ap-
propriate provedure to be used in such instances;

(3)

to ensure that the necessary guarantees in respect of
employment and standards of living are maintained for
Community growers of sugar beet and sugar cane,

(1) OJ C 219, 30.7.1999
(2) OJ C 138, 18.5.1999, p. 18.
(3) OJ L 177, 1.7.1981, p. 4. Regulation as last amended by Commis-
sion Regulation (EC) No 1148/98 (OJ L 159, 3.6.1998, p. 38).

(4) See Annex III, Part B.

(5)

it is necesseary that these regulatory measures should
provide guarantees which are fair both to manufacturers
and to producers of the basic products; it is therefore
appropriate to fix for beet, in addition to a basic price,
minimum prices for A beet intended for processing into
A sugar and a minimum price for B beet intended for

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processing into B sugar which must be observed when
sugar manufacturers buy beet; it is also appropriate to
provide,
in the interests of ensuring a fair balance of
rights and duties between agricultural manufacturers and
producers, the instruments necessary to this end and, in
particular, to establish Community outline provisions
governing the contractual relations between buyers and
sellers of beet and to provide for adequate measures to
achieve this object in respect of sugar cane;

for the sugar beet sector, having regard to the implica-
tions, in particular of a general nature, for the operation
of the common organisation of the markets in sugar,
application of Council Regulation (EC) No 952/97 of 20
May 1997 on producer groups
and associations
thereof (1) should be postponed for the period during
which the production quota arrangements are applied;

the creation of a Community market for sugar as for
isoglucose and inulin syrup implies the introduction of a
common trading system at the external frontiers of the
Community; a trading system including import leveis
and export refunds tends to stabilise the Community
market in preventing, in particular, price fluctuations on
the world market from affecting prices for these prod-
ucts ruling within the Community; whereas, therefore,
provision should be made for the charging of a levy on
imports from third countries and for the payment of a
refund on exports to such countries which, as regards
sugar, would, in either case, cover, with regard to the
sugar, the difference between prices ruling insde and
outside the Community when world market prices are
lower than the Community prices and, with regard to
isoglucose and inulin syrup, would ensure a certain
measure of protection for the Community industry
which processes these products;

in addition to this trading system and to the extent
necessary for its proper working, provision should be
made for regulating or, when the situation on the
market
inward
so requires, prohibiting the use of
processing arrangements:

(10)

(11)

(12)

desirable to allow undertakings established in those
regions to use to that end blocked carryover stocks for
authorising them to dispose of the sugar in question
before the end of the compulstory storage period;

in the event of a shortage on the world market pushing
up world market prices to a level higher than that of the
Community prices, or in the event of difficulties in the
normal supplies to the Community as a whole or to one
of its areas, appropriate provisions should be laid down
in order to avoid in good time a situation where regional
surpluses are exported to third countries while an
abnormal rise in Community prices makes it impossible
to continue to guarantee supplies to consumers at
reasonable prices;

it must be made possible for the competent authorities
to keep a constant watch on movements in trade with
third countries in order to enable them to assess trends
thereof and, where appropriate, to apply such measures
provided for in this Regulation as may prove necessary;
to this end, provision should be made for a system of
import and export licences, the issue of which is condi-
tional upon the lodging of a guarantee assuring that the
operation for which the licences is being requested will
be carried out;

the Community; however,

the customs duties system makes it possible to dispense
with all other protective measures at the external fron-
tiers of
the prices and
customs duties machinery may in exceptional circum-
stance prove defective; such cases, so as not to leave the
Community market without defence against disturb-
the Community
ances which may arise therefrom,
should be enabled swiftly to take all necessary measures;
these measures must be in conformity with the obliga-
tions arising from the Agreements resulting from the
Uruguay Round of multilateral trade negotiations, here-
inafter referred to as ‘GATT’; moreover, in order to avert
problems of supply to the Community market,
the
suspension of customs duties on certain sugar products
should be permitted;

in order to ensure normal supplies to the Community as
a whole or to one of its areas, a system of minimum
stock would be an effective measure; it is also appro-
priate, in order to achieve this objective, to lay down
provisions which would enable appropriate intervention
measures to be taken under certain conditions;
it is
possible that the minimum stock system will not be
sufficient to ensure supplies to one or more regions if
natural disasters strike the said regions; it is therefore

(13)

the GATT agreements were approved by Decision 94/
800/EC (2);
the agreement on agriculture (hereinafter
referred to as ‘the Agreement’) provides, in particular, for
the gradual reduction of the level of the Community's
export support for agricultural products and in par-
ticular for sugar under guarantee of production quotas;
the Agreement provides for the reduction of export
support, in terms of both quantities and appropriations,
over a transitional period;

(6)

(7)

(8)

(9)

(1) OJ L 142, 2.6.1997, p. 30. Regulation repealed by Regulation (EC)

No 1257/1999, (OJ L 160, 26.6.1999, p. 80).

(2) OJ L 336, 23.12.1994, p. 1.

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(14)

(15)

(16)

(17)

in production and to provide

the reasons which have hitherto led the Community to
retain a production quota system for sugar, isoglucose
and inulin syrups remain valid; however, changes have
been made in that system to take account of recent
developments
the
Community with the instruments necessary to ensure, in
a fair yet efficient way, that the procedures themselves
meet in full the cost of disposing of the surpluses of
Community production over consumption; however,
such a system should apply for a limited period only
and should be regarded as transitional;

for

the losses

the common organisation of the sugar sector markets
has been based, first, since the 1986/87 marketing year,
on the principle of full financial responsibility on the
part of producers
incurred in each
that part of
marketing year due to the disposal of
Community production under quota which is surplus to
the Community's internal consumption and, secondly,
on a differentiation of the price and disposal guarantees
in line with the production quota allocated to each
undertaking; sugar production quotas are allocated to
each undertaking on the basis of objective production
during a particular
reference period; however, with
regard to mainland Portugal where no sugar beet was
grown at the time of accession, the Treaty of Accession
allowed for the possibility of allocating quotas to an
undertaking without reference to production figures, on
condition that the undertaking was in a position to start
production immediately,
i.e. that it had the necessary
technical capacity;

since commitments to reduce export support are to be
implemented over a transitional period, the present basic
sugar and isoglucose quantities and inulin syrup quotas
should be maintained unchanged but with provision
the guarantees pertaining thereto to be
made for
adjusted as appropriate to permit compliance with the
commitments made under the Agreement, while taking
into account the fundamental factors affecting the situ-
ation of this sector in the Community; it is accordingly
desirable to maintain the sector's self-financing arrange-
ments and production quotas for a period corresponding
to the abovementioned transitional period, namely six
marketing years;

financial responsibility should be guaranteed by the
producers' contributions which take the form of a basic
production levy charged on all production of A and B
sugar but which is limited to 2 % of the intervention
price for white sugar and a B levy which is charged on
the production of B sugar but which is subject to a limit
isoglucose and inulin syrup
of 37,5 % of that price;
producers under some conditions pay a proportion of
those contributions; because of the limits referred to
above, the objective of making sugar production self-
financing cannot, under the abovementioned circum-
stances, be achieved in respect of each marketing year;

(18)

(19)

(20)

(21)

an additional levy should therefore be charged for that
purpose;

in question;

in particular in the interests of equal treatment, the
additional levy should be calculated for each undertaking
on the basis of its share in the revenue generated by the
production levies which it has paid in respect of the
marketing year
therefore, a coefficient
should be determined for the Community as a whole
which represents, in respect of that marketing year, the
ratio between the total
loss recorded and the total
revenue generated by the production levies in question;
conditions should also be laid down under which beet
and sugar cane sellers are to contribute to eliminating
the uncovered part of the loss for the marketing year
concerned;

of

the

relevant

the production quotas allocated to each sugar sector
undertaking may, in any marketing year, give rise, as a
result
consumption, production,
importation, stock and carryover levels, and the average
loss likely to be borne under the self-financing scheme,
to an export volume exceeding that set in the Agree-
ment; provision should therefore be made for adjust-
ments over one or more marketing years in the guaran-
tees linked to quotas so that the Community's commit-
ments can be met;

as the first step in implementing adjustments to the
guarantees, the difference recorded for a given marketing
year between the Community's exportable volume and
the amount set in the Agreement should be apportioned
between sugar, isoglucose and inulin syrup according to
the percentages which the quotas of each represent in
the total of the quotas set for these three products and
for the Community;

initial breakdown by product

this
should then be
followed by a breakdown between the Member States
which adjusts the guarantees linked to the quotas
assigned to producing undertakings located in each
Member State in a way that does not affect the existing
balance of quotas and burden-sharing; to this end, a
reduction coefficient should be determined for each
Member State in respect of the A and B guarantees
which is in line with the maximum contributions
pertaining to these guarantees; it should then be up to
each Member State concerned to make an allocation
among undertakings which takes account of the guaran-
tees arising for each undertaking from its own quotas;

(22)

the common organisation of the market in sugar estab-
lished a compensation system for storage costs; whereas
is appropriate to make it clear that sugar which
it
formed the subject of the reduction of guarantees under
obligations arising from undertakings given in the
context of the Agreement may continue to be eligible
for
the said
system;

reimbursement of storage costs under

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(23)

(24)

(25)

(26)

(27)

given the need to allow for a certain structural adjust-
ment of the processing industry and of beet and cane
growing during the period in which these quotas are
applied, provision should be made for a margin of
manoeuvre allowing Member States to alter undertaking
quotas by a maximum of 10 %; in view of the particular
situation of this sector in Spain, Italy and the French
overseas departments, this limit should not be applied in
those regions when restructuring plans are being imple-
mented;

access on certain terms to all raw sugar originating in
the Community, the ACP States and/or in certain other
traditional suppliers to be specified, on the basis of a
forward balance and in a particular order of priority,
namely Community sugar, preferential sugar covered by
Protocol No 8 annexed to the Fourth ACP-EC Conven-
tion (1), and sugar imported from ACP States and/or
other traditional suppliers; for raw sugar imported from
the ACP States listed in Protocol No 8 and from India
other than preferential sugar in the strict sense, a special
preferential arrangement for access to the Community
refining market should be introduced;

a means

since the production quotas allocated to undertakings
constitute
producers
of
Community prices and an outlet for their production,
quota transfers should be made taking into consider-
ation the interests of all the parties concerned and in
particular those of sugar beet and sugar cane producers;

guaranteeing

in order to enable the outlets for sugar and isoglucose
on the internal market of
the Community to be
enlarged,
it is further appropriate to afford the poss-
ibility of putting out of production, within the meaning
of the quota system and under conditions to be laid
down, all sugar or isoglucose intended for manufacture,
in the Community, of products other than foodstuffs;

the

in the Declaration by
European Economic
Community on supplies to the sugar refining industry in
Portugal annexed to the Final Act of the Treaty of Acces-
sion of Spain and Portugal, the Community stated that it
was prepared to make an overall examination of the
refining industry in the Community and in Portugal in
particular; such an examination was also applied to
Finland;

this examination has shown the need, in particular with
the aim of achieving a steadier and more even flow of
supplies to refineries throughout the Community, to
estimate clearly the expected maximum traditional
requirement of raw sugar for refining into white sugar in
each of the Member States concerned, namely Finland,
France, Portugal and the United Kingdom, using ob-
jective reference data and taking into account the quant-
ities of sugar going for direct consumption recorded for
the 1994/95 marketing year; to achieve this aim, the
possibility should be opened to the refining industry,
its anticipated needs, of gaining
within the limit of

(28)

pursuant to Article 1 of the said Protocol and to Article
1 of the Agreement between the European Economic
Community and the Republic of India on cane sugar (2),
the implementation of
these systems of preferential
imports must be carried out within the framework of
the common organisation of the market in sugar;

(29)

it is necessary to create the means for ensuring that raw
cane sugar imported under the said preferential systems
can be refined under the most equitable conditions of
competition;

(30)

(31)

refining is an important activity both in the sugar sector
in general and in the Community, and in particular in
refineries for conversion of raw sugar into white sugar;
from a technical point of view, refining produces high-
quality products from sugar cane that can meet market
requirements; moreover, these refineries are located in
the port-related refining
areas of high consumption;
industry is accordingly, for the Community, a valuable
in par-
complement to the beet processing industry,
ticular
the United
Kingdom and southern and western France;

in Finland, mainland Portugal,

in a joint declaration on the Portuguese sugar market
annexed to the Final Act of the Fourth ACP- EC Conven-
tion,
the ACP States and the Community agreed to
continue, under the relevant provisions of the Conven-
tion and in particular Article 168(2) thereof, the exam-
ination of requests from the ACP States for increased
preferential access to the Portuguese market for ACP
sugar; examination of
these requests, which concern
supplies to port refineries in the Community as a whole,
leads to the conclusion that special priority access
should be given to raw cane sugar originating in the
ACP States party to Protocol No 8 and in India, under
special agreements negotiated between the Community
and the countries referred to in Protocol No 8 and/or
other countries and on the basis of a Community es-
timate of requirements after utilisation for refining of all
available raw cane and beet sugar in the Community and
preferential sugar;

(1) OJ L 229, 17.8.1991, p. 3.
(2) OJ L 190, 22.7.1975, p. 36.

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(32)

up to the 1994/95 marketing year, Community adjust-
ment aid has been granted for refining of preferential
raw cane sugar and of raw sugar from cane and beet
harvested in the Community; hitherto it has been
possible to adjust this aid for any given marketing year
in line with the storage levy set for that year and/or any
change in the refining margin resulting from the prices
set for the marketing year in question; in the light of
experience, this aid should continue; given the direct
impact on the refining margin of changes in the storage
levy, it should be made compulsory for the adjustment
aid to be altered in line with that levy in the case of
refining of raw sugar covered by Community price guar-
antees or imported from the ACP States as preferential
sugar;

(33)

the common organisation of the markets in the sugar
sector must, at the same time, take appropriate account
of the objectives set out in Articles 33 and 131 of the
Treaty;

(34)

certain transitional measures may prove necessary and
the same need may arise at each changeover from one
marketing year to the next or during the same marketing
year; provision should therefore be made for the poss-
ibility of adopting appropriate measures;

(35)

in order to facilitate implementation of the provisions of
this Regulation, a procedure should be provided for
establishing close cooperation between Member States
and the Commission within a Management Committee
for Sugar;

(36)

beet production in Italy, in view of its particular charac-
teristics and the dimensions of holdings, is facing, in the
northern region, although less and less so, and in the
central region, difficulties in particular concerning the
application of modern production methods; for struc-
tural reasons, these difficulties persist in the southern
region, which is, moreover, recognised as lagging behind
in development and structural adjustment; beet growing
there is indispensable in order to regenerate soils with a
particularly high level of clay and thus to avoid a return
to monoculture; Italy should therefore be authorised to
grant, on the one hand,
in its northern and central
regions national aid the downward sliding scale of which
shall be extended over five marketing years, and to

(37)

(38)

(39)

(40)

grant, on the other hand, in its southern region such aid
progressively reduced over six marketing years from the
level granted for the 1994/95 marketing year;

by virtue of Article 110 of the Act of Accession of the
Kingdom of Spain and the Portuguese Republic, Spain is
authorized to grant national adjustment aid to producers
of A and B beet until 31 December 1995; in order to
take account of certain difficulties which still exist, it is
appropriate to maintain the authorisation for national
aid beyond 31 December 1995 for a limited period and
on a downward sliding basis;

the cane sugar production process in Spain is faced with
to maintain itself as
specific difficulties in its effort
compared with that of other crops; whereas, in order to
enable this limited production to be maintained, a
national aid of EUR 6 should be authorised per 100
kilograms of white sugar obtained from cane sugar;

Community membership of
the International Sugar
Agreement might require special measures to allow the
Community to implement the obligations arising from
such membership; for this purpose, provision should be
made for the appropriate measures to be adopted within
the framework of this Regulation;

pursuant to Articles 2 and 3 of Council Regulation (EEC)
No 729/70 of 21 April 1970 on the financing of the
common agricultural policy (1), the expenses incurred by
the Member States in meeting obligations arising from
the application of
this Regulation devolve upon the
Community,

HAS ADOPTED THIS REGULATION:

CHAPTER I

SCOPE AND DEFINITIONS

Article 1

The common organisation of the markets in the sugar
1.
sector established by this Regulation shall cover the following
products:

CN code

Description

(a) 1701

Cane or beet sugar and chemically pure sucrose, in
solid form

(b) 1212 91

1212 92 00

Sugar beet
Sugar cane

(c) 1703

Molasses resulting from the extraction or refining of
sugar

(1) OJ L 94, 28.4.1970, p. 13. Regulation repealed by Regulation (EC)

No 1258/1999, (OJ L 160, 26.6.1999, p. 103).

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CN code

Description

(d) 1702 20

1702 60 95
1702 90 99

1702 90 60

1702 90 71

2106 90 59

Maple sugar and maple syrup
Other sugars in solid form and sugar syrups, not
containing added flavouring or colouring matter,
including lactose, glucose, maltodextrine
but not
and isoglucose
Artificial honey, whether or not mixed with natural
honey
Caramel containing 50 % or more by weight of
sucrose in the dry matter
Flavoured or coloured sugar syrups, other than
isoglucose,
and maltodextrine
glucose
syrups

lactose,

(e) 2303 20

Beet pulp, bagasse and other waste of sugar manu-
facture

(f) 1702 30 10
1702 40 10
1702 60 10
1702 90 30

Isoglucose

(g) 2106 90 30

Flavoured or coloured isoglucose syrups

(h) 1702 60 80
1702 90 80

Inulin syrup

2.

For the purposes of this Regulation:

(a) ‘white sugars’ means sugars, not flavoured or coloured or
containing any other added substances, containing, in the
dry state, 99,5 % or more by weight of sucrose, determined
by the polarimetric method;

(b) ‘raw sugars’ means sugars, not flavoured or coloured or
containing any other added substances, containing, in the
dry state, 99,5 % by weight of sucrose, determined by the
polarimetric method;

(c) ‘isoglucose’ means the product obtained from glucose or its
polymers with a content by weight in the dry state of at
least 10 % fructose;

(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;

(e) ‘A sugar’ and ‘A isoglucose’ mean any quantity of sugar or
isoglucose the production of which is attributable to a
specific marketing year and which is produced by the
undertaking concerned within its A quota;

(f) ‘B sugar’ and ‘B isoglucose’ mean any quantity of sugar or
isoglucose the production of which is attributable to a
specific marketing year and which is produced by the
undertaking concerned outside its A quota but within the
sum of its A and B quotas;

undertaking concerned outside the sum of its A and B
qutoas or by an undertaking which has no quota;

(h) ‘A beet’ means all beet processed into A sugar;

(i) ‘B beet’ means all beet processed into B sugar;

(j) ‘A inulin syrup’ shall be inulin syrup expressed as sugar/
isoglucose equivalent the production of which is assigned
to a specific marketing year within the undertaking's A
quota;

(k) ‘B inulin syrup’ shall be the inulin syrup expressed as
sugar/isoglucose equivalent
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;

(l) ‘C inulin syrup’ shall be inulin syrup expressed as sugar/
isoglucose equivalent 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.

CHAPTER II

PRICES

Article 2

1.
The marketing year for all the products listed in Article 1
shall begin on 1 July and expire on 30 June of the following
year.

2.
A target price for white sugar shall be fixed each year.
This price shall be valid for unpacked white sugar of the
standard quality to which the intervention price applies,
unpacked, ex-factory,
transport
chosen by the purchaser.

loaded on to a means of

The target price for white sugar shall be fixed each year at
3.
the same time as the intervention price for white sugar in
accordance with the procedure laid down in Article 37(2) of
the Treaty.

Article 3

1.

For white sugar there shall be fixed each year:

(a) an intervention price for the non-deficit areas;

(b) a derived intervention price for each of the deficit areas.

An intervention price shall be fixed annually for raw
2.
sugar. This price shall be calculated on the basis of the inter-
vention price for white sugar
flat-rate
amounts for processing and yield.

taking account of

Where it is necessary to market raw sugar produced in a deficit
area, a derived intervention price may be fixed for such sugar.

(g) ‘C sugar’ and ‘C isoglucose’ mean any quantity of sugar or
isoglucose the production of which is attributable to a
specific marketing year and which is produced either by the

The intervention prices referred to in paragraphs 1 and 2
loaded on to a

3.
shall apply to unpacked sugar, ex-factory,
means of transport chosen by the purchaser.

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They shall be valid for white sugar and for raw sugar of a
specified standard quality.

intervention price, such amount being adjusted by the coeffi-
cient 1,30.

4.
The intervention price for white sugar shall be fixed
before 1 August for the marketing year beginning on 1 July of
the following year, in accordance with the procedure laid down
in Article 37(2) of the Treaty.

In accordance with the same procedure the Council shall
specify the standard quality for which this price is valid.

5.
The Council, acting by a qualified majority on a proposal
from the Commission, shall fix the intervention price for raw
sugar and the derived intervention prices each year at the same
time as it fixes the intervention price for white sugar.

In accordance with the same procedure the Council shall
specify the standard quality for which the intervention price for
raw sugar is valid.

Article 4

1.
A basic price for beet shall be fixed each year. It shall be
valid for a specified delivery stage and a specified standard
quality.

The basic price for beet referred to in paragraph 1 shall
2.
be fixed taking account of the intervention price for white
sugar and of fixed values representing:

— the processing margin,

— the yield,

— undertakings' receipts from sales of molasses,

— where appropriate, the cost incurred in delivering beet to

undertakings.

3.
The basic price for beet shall be fixed in accordance with
the procedure laid down in Article 37(2) of the Treaty at the
same time as the intervention price for white sugar.

In accordance with the same procedure the Council shall
specify the delivery stage and standard quality for beet.

Article 5

1.
There shall be fixed each year at the same time as the
intervention price for white sugar a minimum price for A beet
and a minimum price for B beet.

These prices shall be valid for the same delivery stage and
standard quality as specified for the basic price for beet.

The minimum price for A beet shall be equal to 98 % of

2.
the basic price for beet.

Subject to Article 33, the minimum price for B beet shall be
equal to 68 % of the basic price for beet.

4.
The Council, acting by a qualified majority on a proposal
from the Commission, shall fix the minimum prices for beet.

Article 6

1. Without prejudice to Article 39 and the provisions
adopted pursuant to Article 32, sugar manufacturers buying
beet:

(a) suitable for processing into sugar,

and

(b) intended for processing into sugar,

shall be required to pay at least a minimum price adjusted
by price increases or reductions to allow for deviations
from the standard quality.

The minimum price referred to in paragraph 1 shall

2.
correspond:

(a) in the non-deficit areas to:

— the minimum price for A beet, in the case of beet to be

processed into A sugar,

— the minimum price for B beet, in the case of beet to be

processed into B sugar;

(b) in the deficit areas to:

— the minimum price for A beet adjusted in accordance
with Article 5(3), in the case of beet to be processed
into A sugar,

— the minimum price for B beet adjusted in accordance
with Article 5(3), in the case of beet to be processed
into B sugar.

3.
Detailes rules for the application of this Article and the
price increases and reductions shall be adopted in accordance
with the procedure laid down in Article 48.

Article 7

1.
Agreements within the trade and contracts concluded
between buyers and sellers of beet must conform to outline
provisions, in particular as regards the conditions governing
the purchase, delivery and acceptance of beet and the payment
for beet.

2.
Conditions for purchasing sugar cane shall be governed
by agreements within the trade between Community sugar
cane producers and Community sugar manufacturers.

Conditions for purchasing the basic agricultural product for the
manufacture of inulin syrup shall be governed by interbranch
agreements between Community growers of those basic prod-
ucts and inulin syrup producers.

3.
For areas for which a derived intervention price for white
sugar is fixed, the minimum prices for A beet and B beet shall
be increased by an amount equal to the difference between the
derived intervention price for the area in question and the

3.
The Council, acting by a qualified majority on a proposal
from the Commission, shall adopt general rules for the applica-
tion of this Article, and particularly the outline provisions
referred to in paragraph 1.

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If necessary, detailes rules for the application of para-
4.
graphs 1 and 2 shall be adopted in accordance with the proce-
dure laid down in Article 48.

5.
If there are no agreements within the trade, the Member
State in question may, within the framework of this Regulation,
take the necessary measures to protect the interests of the
parties concerned.

This Member State shall inform the Commission without delay
of the measures taken pursuant to the first subparagraph.

Regulation (EC) No 952/97 shall not apply to sugar beet

6.
during the period referred to in Article 26(1).

Article 8

1.
A compensation system for storage costs, comprising
flat-rate reimbursement to be financed by means of a levy, shall
be provided for under the conditions set out in this Article.

Storage costs in respect of:

2.
— white sugar,
— raw sugar,
— syrups obtained prior to the crystallising stage,
— syrups obtained by dissolving crystallised sugar,

manufactured from beet or cane harvested in the Community
shall be reimbursed at a flat rate by the Member States.

The Member States shall impose a levy on each sugar manufac-
turer, as appropriate:
— per unit of weight of sugar produced,
— per unit of weight of the syrups referred to in the first
subparagraph which are produced prior to the crystallising
stage and marketed in their natural state.

The amount of the reimbursement shall be the same for the
whole Community. This rule of uniformity shall also apply in
respect of the levy.

3.
Paragraph 2 shall not apply to flavoured or coloured
sugars falling within CN code No 1701 or to flavoured or
coloured syrups falling within subheading 2106 90 59 of the
CN code.

The Council, acting by a qualified majority on a proposal

4.
from the Commission, shall:

(a) adopt the general rules for the application of this Article;

(b) fix the reimbursement amount simultaneously with the

derived intervention prices.

The amount of

the levy shall be fixed each year in
5.
accordance with the procedure laid down in Article 48. The
other detailed rules for the application of this Article shall be
adopted according to the same procedure.

Article 9

1.
Throughout the marketing year the intervention agency
designated by each sugar-producing Member State shall be
required, on conditions to be determined in accordance with

paragraphs 5 and 6, to buy in any white and raw sugar offered
to it which has been manufactured from beet and cane
harvested in the Community in so far as there exist prior
storage contracts between the offerors and such agency for the
sugar in question.

Intervention agencies shall buy in at the intervention price or
the derived intervention price, as the case may be, valid for the
area in which the sugar is situated at the time of purchase. If
the quality of the sugar differs from the standard quality for
which the intervention price was fixed, then this price shall be
adjusted by means of increases or reductions.

It may be decided to grant premiums for sugar which is
2.
in one of the situations referred to in Article 23(2) of the
Treaty and which is rendered unfit for human consumption.

It may be decided to grant production refunds on the
3.
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 23(2) of the Treaty and are
used in the manufacture of certain products of the chemical
industry.

4.
Appropriate measures shall be taken on the subject of the
transport and storage costs of sugars produced in the French
overseas departments, in order to permit these sugars to be
marketed in the European Regions of the Community.

To the extent necessary for the supply of refineries, provision
may be made that raw sugar manufactured from beet harvested
in the Community shall qualify for the same measures as those
referred to in the first subparagraph.

For the purposes of this Article, ‘refinery’ shall mean a produc-
tion unit whose sole activity consists in refining either raw
sugar or syrups produced prior to the crystallising stage.

The Council, acting by a qualified majority on a proposal
5.
from the Commission, shall determine the general rules for the
application of paragraphs 1 to 4, which may derogate from
Article 8 as regards the application of paragraph 4, and the
chemical products referred to in paragraph 3.

6.
Detailes rules for the application of this Article shall be
adopted in accordance wiht the procedure laid down in Article
48 and shall deal

in particular with:

— the minimum quality and quantity requirements on inter-

vention,

— the price increases and reductions applicable on interven-

tion,

— the procedures and conditions for taking-over by interven-

tion agencies,

— the conditions for granting premiums and the amounts of

such premiums,

— the conditions for granting production refunds and the

amounts of such refunds,

— the measures referred to in the second subparagraph of

paragraph 4.

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Article 10

The percentage fixed may be reduced.

In order

1.
to the entire
to help guarantee supplies
Community or to one of its regions, the Council, acting by a
qualified majority on a proposal from the Commission, shall
decide upon the conditions under which special intervention
measures may be taken where Article 22 is applied.

However, such measures may not result in Community sugar
manufacturers being obliged to sell sugar to intervention agen-
cies.

2.
The nature and application of such intervention measures
shall be decided upon in accordance with the procedure laid
down in Article 48.

Article 11

Intervention agencies may sell sugar only at a price which

1.
is higher than the intervention price.

It may, however, be decided that intervention agencies may sell
sugar at a price equal to or lower than the intervention price if
the sugar is intended:
— for animal feeding, or
— for export, either in the natural state or after processing
into the products listed in Annex II to the Treaty or into
the products listed in Annex I to this Regulation.

2.
It may however be decided, paragraph 1 notwithstanding,
that intervention agencies shall, with a view to its distribution
free of charge, make sugar in the natural state held by them
available to charitable organisations — recognised by the
Member State concerned or,
if no recognisations, by the
Commission — actively involved in individual emergency aid
operations, at a price which is lower than the intervention price
or free of charge for human consumption on the internal
market of the Community.

3.
The Council, acting by a qualified majority on a proposal
from the Commission, shall adopt general rules for the sale of
products which have been the subject of intervention measures.

4.
Detailed rules for the application of this Article and the
decision to make sugar available as specified in paragraph 2
shall be adopted in accordance with the procedure laid down in
Article 48.

Article 12

In order to ensure normal supplies to the Community as
its areas, there shall be a standing
the
in the European territory of

1.
a whole or to one of
obligation to maintain,
Community, minimum stocks:

(a) of beet sugar produced in the Community;

(b) of cane sugar produced in the French overseas departments
and of the preferential sugar referred to in Article 40.

This minimum stock of the sugar referred to in (a) above shall,
on a fixed date, be equal to a percentage of the A quota of each
sugar-producing undertaking or to the same percentage of its
production of A sugar where this is less than its A quota.

The minimum stock of
the sugar referred to in the first
subparagraph under (b) shall be equal to a percentage of the
quantity of sugar in question refined by an undertaking over a
fixed period.

2.
The Council, acting by a qualified majority on a proposal
from the Commission, shall adopt general rules for the applica-
tion of this Article and, in particular, shall fix the date and the
percentage referred to in the second subparagraph of paragraph
1 and the percentage and the period referred to in the fourth
subparagraph of paragraph 1.

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

Detailed rules for the application of this Article and, in
3.
particular, the reduction of the percentage referred to in the
third subparagraph of paragraph 1 shall be adopted in accord-
ance with the procedure laid down in Article 48.

CHAPTER III

TRADE WITH THIRD COUNTRIES

Article 13

1.
Imports into the Community, or exports therefrom, of
any of the products listed in Article 1(1)(a),(b),(c),(d),(f),(g) and
(h) shall be subject to presentation of an import or export
licence.

Licences shall be issued by the Member States to any applicant,
irrespective of his place of establishment in the Community
and without prejudice to measures taken for the application of
Articles 17 and 18.

licences shall be valid throughout

the
Import and export
to the
Community. Such licences shall be issued subject
lodging of a security guaranteeing that
the products are
imported or exported during the term of validity of the licence;
except in cases of force majeure the security shall be forfeited in
whole or in part if import or export is not carried out, or is
only carried out partially, within that period.

In accordance with the procedure

2.
Article 48:

laid down in

(a) the scheme provided for in paragraph 1 may be extended

to cover the products listed in Article 1(1)(e);

(b) the term of validity of licences and other detailed rules for
the application of this Article, which may lay down in
particular a time limit for the issue of licences, shall be
adopted.

Article 14

1.
Unless this Regulation provides otherwise, the rates of
duty in the Common Custom Tariff shall apply to the products
listed in Article 1.

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that

to ensure

Notwithstanding paragraph 1,

the
2.
Community market is adequately supplied with raw sugar for
refining falling within CN codes 1701 11 10 and 1701 12 10
and molasses falling within CN codes 1703 by means of
imports from third countries, the Commission may, in accord-
ance with the procedure laid down in Article 48, suspend in
whole or in part the application of import duties on these
products, and establish the arrangements for any such suspen-
sion.

Suspension may apply for the period in which the price on the
world market plus the import duty in the Common Customs
Tariff:

— in the case of raw sugar, exceeds the intervention price for

the product,

— in the case of molasses, exceeds the price level corres-
ponding to the price of molasses used as a basis, for the
sugar marketing year under consideration, for determining
revenue from sales of molasses pursuant to the provisions
of Article 4(2).

Article 15

In order to prevent or counteract adverse effects on the
1.
market in the Community which may result from imports of
certain agricultural products, imports of one or more of such
products at
the rate of duty laid down in the Common
Customs Tariff shall be subject to payment of an additional
the
import duty if
Agreement on Agriculture concluded in accordance with
Article 300 of the Treaty in the framework of the Uruguay
Round of multilateral trade negotiations have been fulfilled,
unless the imports are unlikely to disturb the Community
market, or where the effects would be disproportionate to the
intended objective.

the conditions set out

in Article 5 of

2.
The trigger prices below which an additional duty may be
imposed shall be those notified by the Community to the
World Trade Organisation.

import duty imposed shall

The trigger volumes to be exceeded in order to have the
in particular be deter-
additional
mined on the basis of imports into the Community in the three
years preceding the year in which the adverse effects referred to
in paragraph 1 arise or are likely to arise.

3.
The import prices to be taken into consideration for
imposing an additional import duty shall be determined on the
basis of the cif import prices of the consignment under consid-
eration.

Cif import prices shall be checked to that end against the
representative prices for the product on the world market or
on the Community import market for that product.

The Commission shall adopt detailed rules

4.
the
application of this Article in accordance with the procedure
laid down in Article 48. Such detailed rules shall specify in
particular:

for

(a) the products to which additional import duties shall apply
under the terms of Article 5 of the Agreement on Agricul-
ture;

(b) the other criteria necessary to ensure application of para-
graph 1 in accordance with Article 5 of the Agreement on
Agriculture.

Article 16

For molasses:
— the world market price referred to in Article 14(2), and
— the representative price referred to in Article 15(3),

shall apply to standard quality.

Standard quality may be determined in accordance with the
procedure laid down in Article 48.

Article 17

Tariff quotas for the products listed in Article 1 resulting
1.
from agreements concluded in the framework of the Uruguay
Round of multilaterial trade negotiations shall be opened and
administered in accordance with detailed rules adopted under
the procedure laid down in Article 48.

Quotas shall be administered by applying one of the

2.
following methods or a combination of them:
— method based on chronological order of the lodgement of

applications (‘first come, first served’ principle),

— method of distribution in proportion to the quantities
requested when the applications were lodged (using the
‘simultaneous examination’ method),
— method based on taking traditional

trade patterns into

account (using the ‘traditional/new arrivals’ method).

Other appropriate methods may be adopted.

They must avoid any discrimination between the operators
concerned.

3.
The method of administration adopted shall, where
appropriate, give due weight to the supply requirements of the
Community market and the need to safeguard the equilibrium
of that market, whilst at the same time possibly drawing on
methods which may have been applied in the past to quotas
corresponding to those referred to in paragraph 1, without
prejudice to the rights resulting from agreements concluded in
the framework of the Uruguay Round negotiations.

4.
The detailed rules referred to in paragraph 1 shall provide
for annual quotas, suitably phased over the year, if necessary,
shall determine the administrative method to be used and,
where appropriate, shall

include provisions regarding:

(a) guarantees covering the nature, provenance and origin of

the product;

(b) recognition of the document used for verifying the guaran-

tees referred to in (a); and

(c) the conditions under which import licences are issued and

their term of validity.

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Article 18

to be exported without

To the extent necessary to enable the products listed in
1.
Article 1(1)(a),(c) and (d)
further
processing or in the form of goods listed in Annex I, on the
basis of quotations or prices on the world market for those
products listed in Article 1(1)(a) and (c), and within the limits
resulting from agreements concluded in accordance with
Article 300 of the Treaty, the difference between those quota-
tions or prices and prices in the Community may be covered
by export refunds.

The export refund granted for raw sugar may not exceed that
granted for white sugar.

2.
Provision may be made for export refunds in respect of
the products listed in Article 1(1)(f), (g) and (h) and exported
without further processing or in the form of goods mentioned
in Annex I.

Refunds fixed at regular intervals may, where necessary, be
adjusted in the intervening period by the Commission at the
request of a Member State or on its own initiative.

Tenders submitted in response to an invitation shall not be
considered unless a deposit is lodged. Except in cases of force
majeure, the deposit shall be forfeited in whole or in part if
tenderers have not fulfilled, or have only partially fulfilled, the
obligations placed upon them.

The provisions of Articles 19, 20 and 21 concerning products
not denatured and exported without further processing listed in
Article 1(1)(a),(c) and (d) shall apply in addition.

6. When the amount of the refund is set, account shall be
taken in particular of the need to establish a balance between
the use of Community basic agricultural products for export as
processed goods to third countries, and the use of products
from these countries admitted for inward processing.

When determining the amount of the refund, for each 100 kg
of dry matter particular account shall be taken of:

(a) the refund applicable to exports of products falling within

CN code 1702 30 91;

(b) the refund applicable to exports of the products referred to

in Article 1(1)(d);

7.
Refunds on products listed in paragraph 1 and exported
without further processing shall only be granted on application
and on presentation of the relevant export licence.

8.
The refund applicable to exports of products listed in
Article 1 exported without further processing shall be that
applicable on the day of application for the licence and, in the
case of a differentiated refund, that applicable on the same day:

(c) the economic aspects of the planned exports.

(a) for the destination indicated on the licence; or

The refund applicable to products listed in Article 1
3.
exported in the form of goods listed in Annex I shall not be
greater than that applicable to these products exported without
further processing.

The method to be adopted for the allocation of the
4.
quantities which may be exported with a refund shall be the
method which:

(a) is most suited to the nature of the product and the situ-
ation on the market in question, allowing the most efficient
possible use of the resources available, account being taken
of
the efficiency and structure of Community exports
without, however, creating discrimination between large
and small operators;

(b) is least cumbersome administratively for operators, account

being taken of administration requirements;

(c) prevents

any

discrimination between the operators

concerned.

5.
Refunds shall be the same for the whole Community.
They may vary according to destination, where the world
market situation or the specific requirements of certain markets
make this necessary.

Refund shall be fixed in accordance with the procedure laid
down in Article 48. Refunds may be fixed:

(a) at regular intervals;

(b) for the actual destination if it differs from the destination
indicated on the licence. In that case, the amount applicable
may not exceed the amount applicable for the destination
indicated on the licence.

Appropriate measures may be taken to prevent abuse of the
flexibility provided for in this paragraph.

9.
Paragraphs 7 and 8 may be made to apply to products
listed in Article 1 and exported in the form of goods listed in
Annex I in accordance with the procedure laid down in Article
16 of Regulation (EC) No 3448/93 (1).

10.
Paragraphs 7 and 8 may be waived in the case of
products listed in Article 1 on which refunds are paid under
food-aid operations,
in accordance with the procedure laid
down in Article 48.

11.

The refund shall be paid upon proof:

— that the products have been exported from the Community,

and

— that,

in the case of a differentiated refund, the products
have reached the destination indicated on the licence or
another destination for which a refund was fixed, without
prejudice to point (b) of the first subparagraph of para-
graph 8. However, exceptions may be made to this rule in
accordance with the procedure laid down in Article 48,
provided that conditions are laid down which offer equiva-
lent guarantees.

(b) by invitation to tender in respect of products for which
provision was made for that procedure in the past.

(1) OJ L 318, 20.12.1993, p. 18. Regulation as last amended by
Commission Regulation (EC) No 2491/98, (OJ L 309, 19.11.1998,
p. 28).

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Supplementary provisions may be laid down in accordance
with the procedure provided for in Article 48.

which is considered to be representative for the expor-
tation of this type of sugar,

12.
No refund shall be granted on exports in the natural
state of the not denatured products referred to in Article 1(1)(a)
unless, depending on the case, they have been:

(a) obtained from sugar beet or sugar cane harvested within

the Community;

(b) imported into the Community

in accordance with

Article 40;

(c) obtained from one of the products imported in accordance

with Article 40.

13.
No refund shall be granted on exports in the natural
state of the not denatured products referred to in Article 1(c)
and (d) which are not of Community origin or which have not
been obtained from sugars imported into the Community in
accordance with the provisions of paragraph 12(b) or from the
products referred to in paragraph 12(c).

14.
Compliance with the limits on volumes arising from
agreements concluded in accordance with Article 300 of the
Treaty shall be ensured on the basis of the export licences
issued for the reference periods provided for therein and
applicable to the products concerned.

15.
The detailed rules for the application of this Article,
including the arrangements for redistributing unallocated or
unused exportable quantities, and the amendment of Annex I
shall be adopted in accordance with the procedure laid down in
Article 48. However, the rules governing the application of
paragraph 6 for the products referred to in Article 1 exported
in the form of goods listed in Annex I shall be adopted in
accordance with the procedure provided for in Article 16 of
Regulation (EC) No 3449/93.

— the costs of transporting sugar from the areas referred
to in the first indent to ports or other points of export
in the Community,

— trade expenses and any transhipment, transport and
packaging charges incurred in marketing sugar on the
world market,

— quotations or prices recorded for sugar on the world

market, and

— the economic aspect of the proposed exports.

3. Where the refund is fixed by tender for the products
referred to in Article 1(1)(a):

(a) the purpose of the tender shall be to determine the amount

of the refund;

(b) the competent authorities of the Member States shall invite
tenders in accordance with an instrument binding in law in
all Member States. This instrument shall
lay down the
terms of the invitation to tender. These terms must guar-
antee equal access for all persons established within the
Community;

(c) the terms of the invitation to tender shall include a time
limit for the submission of tenders. The maximum amount
of the refund for the invitation in question shall be fixed in
accordance with the procedure laid down in Article 48
within three working days following the expiry of the time
limit and in the light of the tenders received. When the
maximum amount is being calculated, account shall be
the supply situation and prices within the
taken of
Community, prices and potential outlets on the world
market and costs incurred in exporting sugar.

Article 19

A maximum tonnage may be fixed in accordance with the
same procedure;

1.
This Article shall apply to the fixing of refunds on the not
denatured products exported in the natural state referred to in
Article 1(1)(a).

As regards the periodic fixing of refunds for the products

2.
referred to in Article 1(1)(a):

(a) the refunds shall be fixed every two weeks.

However, such fixing may be discontinued in accordance
with the procedure laid down in Article 48 if it is found
that no surplus sugar is available within the Community for
export on the basis of world market prices. In that event,
no refund shall be granted;

(b) when the refund is being fixed,

the situation on the
Community and world markets in sugar, and in particular
the following, shall be taken into account:

— the

intervention price

the
Community area with the largest surplus or the inter-
vention price for raw sugar for the Community area

for white

sugar

for

(d) where exports can be effected on the basis of a refund
which is lower than that which would result from taking
the difference between prices within the Community and
prices on the world market into account and where exports
are for a specific destination, the competent authorities of
the Member States may be required to issue a special
invitation to tender, the terms of which shall

include:

— the possibility of submitting tenders at any time until

the tendering procedure is terminated, and

— a maximum amount of the refund, calculated in the
light of requirements for the exports in question;

(e) if the amount of the refund shown in a tender:

— exceeds the maximum fixed, the competent authorities

of the Member States shall reject that tender,

— does not exceed the maximum, those authorities shall
to the refund

fix the refund at an amount equal
appearing in the tender in question.

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4.

The refund on raw sugar:

(a) shall be fixed for the standard quality defined in Article 1

of Regulation (EEC) No 431/68 (1);

(b) fixed periodically in accordance with paragraph 2(a):

— may not exceed 92 % of the refund for white sugar for
the same period. However, this limit shall not apply to
refunds to be fixed for candy sugar,

— shall for each exporting operation under consideration
be multiplied by a conversion factor which shall be
obtained by dividing the yield of
the raw sugar
exported, calculated in accordance with the provisions
of Article 1 of Regulation (EEC) No 431/68, by 92;

(c) the maximum amount fixed pursuant to paragraph 3(c)
within the framework of a tender may not exceed 92 % of
the maximum amount fixed at the same time for white
sugar pursuant to that paragraph.

Article 20

1.
The refund on the not denatured products exported in
the natural state listed in Article 1(1)(c), shall be fixed each
month, account being taken of:

(a) the price of molasses used to determine receipts from the
sale of molasses for the sugar year in question pursuant to
Article 4(2);

(b) prices

and potential outlets

for molasses on the

Community market;

(c) quotations or prices recorded for molasses on the world

market; and

However, such periodic fixing may be discontinued in accord-
ance with the procedure laid down in Article 48 if the periodic
fixing of the refund on white sugar, not further processed, is
suspended. In this event, no refund shall be granted.

2.
The basic amount of the refund on the products referred
to in paragraph 1, with the exception of sorbose, shall be equal
to one-hundredth of an amount arrived at by taking account
of:

(a) the difference between the intervention price for white
sugar for the Community area with the largest surplus for
the month for which the basic amount is fixed, and the
quotations or prices for white sugar recorded on the world
market;

(b) the need to establish a balance between:

— the use of Community basic products in the manufac-
ture of processed goods for export to third countries,
and

— the use of third-country products brought in under

inward processing arrangements.

3.
In the case of sorbose, the basic amount of the refund
shall be equal to the basic amount of the refund less one-
hundredth of the production refund valid pursuant to Regula-
tion (EEC) No 1010/86 (2) for the products listed in the Annex
to that Regulation.

The application of the basic amount of the refund may be

4.
limited to some of the products listed in Article 1(1)(d).

(d) the economic aspect of the proposed exports.

Article 22

However, such fixing may be discontinued in accordance with
the procedure laid down in Article 48 if it is found that no
surplus molasses is available within the Community for export
on the basis of world market prices. In that event, no refund
shall be granted.

2.
In special circumstances the amount of the refund may
be fixed by tender for specific quantities and specific areas of
the Community. The purpose of the tender shall be to deter-
mine the amount of the refund.

The competent authorities of the Member States concerned
shall
invite tenders on the basis of an authorisation laying
down the terms of the invitation to tender. These terms must
guarantee equal access for all persons established within the
Community.

Article 21

The basic amount of the refund shall be fixed each month
1.
for the not denatured products exported in the natural state
listed in Article 1(1)(d).

1.
To the extent necessary for the proper working of the
common organisation of the markets in the sugar sector, the
Council, acting in accordance with the voting procedure laid
down in Article 37(2) of the Treaty on a proposal from the
Commission, may prohibit in whole or in part the use of
inward processing arrangements:

— in respect of products listed in Article 1(1)(a) and (d), and

— in special cases, in respect of products listed in Article 1(1)
which are intended for the manufacture of goods listed in
Annex I.

2.
By way of derogation from paragraph 1, if the situation
referred to in paragraph 1 arises with exceptional urgency and
the Community market is disturbed or is liable to be disturbed
by inward or outward processing arrangements, the Commis-
sion shall, at the request of a Member State or on its own
initiative, decide upon the necessary measures; the Council and
the Member States shall be notified of such measures, which
shall be valid for no more than six months and shall be
immediately applicable. If the Commission receives a request
from a Member State, it shall take a decision thereon within a
week following receipt of the request.

(1) OJ L 89, 10.4.1968, p. 3. Regulation as amended by Regulation

(EC) No 3290/94 (OJ L 349, 31.12.1994, p. 105).

(2) OJ L 94, 9.4.1986, p. 9. Regulation as last amended by Commis-
sion Regulation (EC) No 2074/98 (OJ L 265, 30.9.1998, p. 8).

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3. Measures decided on by the Commission may be referred
to the Council by any Member State within a week of the day
on which they were notified. The Council, acting by a qualified
majority, may confirm, amend or repeal
the Commission
decision. If the Council has not acted within three months, the
Commission decision shall be deemed to have been repealed.

The following shall be decided in accordance with the

3.
procedure laid down in Article 48:

(a) the cif prices referred to in paragraphs 1 and 2;

(b) the other arrangements for implementation of this Article.

Article 23

1.
The general rules for the interpretation of the combined
nomenclature and the special rules for its application shall
apply to the tariff classification of products covered by this
Regulation; the tariff nomenclature resulting from the applica-
tion of this Regulation shall be incorporated in the Common
Customs Tariff.

Save as otherwise provided for in this Regulation or
2.
pursuant to a provision thereof, the following shall be prohib-
ited in trade with third countries:

(a) the levying of any charge having equivalent effect to a

customs duty;

(b) the application of any quantitative restriction or measure

having equivalent effect.

Article 24

1. Where the price of sugar on the world market exceeds
the intervention price, provision may be made to apply an
export levy in respect of the sugar in question. This levy must
be applied when the cif price of white sugar or raw sugar is
greater than the intervention price plus an amount equal to the
sum of 10 % of the intervention price and the storage levy
applicable during the marketing year concerned.

The export levy may be determined by tender. Except in the
case of tendering, the levy to be charged shall be that applic-
able on the day of export.

2. Where the cif price of white or raw sugar is greater than
the intervention price plus an amount equal to the sum of
10 % of the intervention price and the storage levy applicable
during the marketing year concerned, the Council, acting on a
proposal from the Commission in accordance with the voting
procedure laid down in Article 37(2) of the Treaty, may decide
to grant an import subsidy for the product in question.

Where it is established that:

(a) supplies to the Community; or

(b) supplies to a major consumption region in the Community,

cannot be ensured from Community availability,
the
Council, acting on a proposal from the Commission in
accordance with the voting procedure laid down in Article
37(2) of the Treaty, shall decide to grant the import subsidy
and determine the conditions for its application. Those
conditions shall relate in particular to the quantity of white
or raw sugar to be covered by the subsidy, the duration of
the subsidy and, where appropriate, the importing regions.

case of

the products

In the
referred to in Article
1(1)(b),(c),(d),(f),(g) and (h) provisions similar to those in para-
graphs 1 and 2 may be adopted in accordance with the proce-
dure laid down in Article 48.

4.
this
The amounts stemming from the application of
Article shall be fixed by the Commission. However, the export
levies determined by tendering shall be fixed in accordance
with the procedure laid down in Article 48.

Article 25

If, by reason of

imports or exports,

1.
the Community
market in one or more of the products listed in Article 1 is
affected by, or is threatened with, serious disturbance likely to
jeopardise the achievement of the objectives set out in Article
33 of the Treaty, appropriate measures may be applied in trade
with third countries until such disturbance or threat of distur-
bance has ceased.

The Council, acting in accordance with the voting procedure
laid down in Article 37(2) of the Treaty on a proposal from the
Commission, shall adopt the general rules for implementing
this paragraph and shall define the cases and limits within
which the Member States may take protective measures.

2.
If the situation referred to in paragraph 1 arises, the
Commission shall, at the request of a Member State or on its
own initiative, decide upon the necessary measures;
the
Member States shall be notified of such measures, which shall
be immediately applicable.
the Commission receives a
If
request from a Member State, it shall take a decision thereon
within three working days following receipt of the request.

3. Measures decided upon by the Commission may be
referred to the Council by any Member State within three
working days of the day on which they were notified. The
Council shall meet without delay. It may, acting by a qualified
majority, amend or annul the measure in question.

4.
This Article shall be applied having regard to the obliga-
tions arising from agreements concluded in accordance with
Article 300(2) of the Treaty.

CHAPTER IV

QUOTAS

Article 26

Articles 27 to 39 shall apply in respect of the marketing

1.
years 1995/96 to 2000/2001.

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For the period referred to in paragraph 1 and without
2.
prejudice to paragraph 5, Article 27(3), Article 30 and, as
appropriate, Article 28(5), the A and B quotas of undertakings
producing sugar or isoglucose shall be those assigned by the
Member States for the 1994/95 marketing year.

3.
For the period referred to 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 27(3) or 28(2).

4.
For the period referred to in paragraph 1 and without
prejudice to paragraph 5, the A and B quotas of undertakings
producing inulin syrup shall be those definitively assigned by
the Member States pursuant to Article 29 for the 1994/95
marketing year. Articles 27 and 30 shall not apply to such
undertakings.

5.
In order to comply with the commitments entered into
by the Community under the agricultural agreement concluded
pursuant to Article 300(2) of the Treaty, the guarantees for the

disposal of sugar, isoglucose and inulin syrup produced under
quota may be reduced for one or more designated marketing
years.

For the purposes of applying the first subparagraph, for each
marketing year the guaranteed quantity under quotas shall be
laid down before 1 October on the basis of forecast of produc-
tion,
imports, consumption, storage, carryover, exportable
balance and average loss likely to be borne under the self-
financing scheme within the meaning of point (d) of Article
33(1). If these forecasts show an exportable balance for the
marketing year in question greater than the maximum laid
down by the Agreement,
the guaranteed quantity shall be
reduced by the difference in accordance with the procedure laid
down in Article 48. This difference shall be divided up between
isoglucose and inulin syrup in accordance with the
sugar,
percentage representing the total of the A and B quotas of each
product in the Community. It shall then be broken down by
Member State and by product by applying the corresponding
coefficient set out in the table below:

1

2

3

Region

Coefficient applicable
to sugar expressed
as white sugar

Coefficient applicable
to isoglucose
in dry matter

A sugar

B sugar

A isoglucose

B isoglucose

Coefficient applicable
to inulin syrup
as sugar/isoglucose
equivalent

A inulin
syrup

B inulin syrup

0,046201

0,009920

0,225547

0,062024

0,556265

0,130955

BLEU (1)

Denmark

Germany

Ireland

Italy

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

0,027206

0,008015

—

—

0,169608

0,052188

0,104246

0,024551

Germany (region Article 28)

0,055204

0,016986

—

—

Greece

Spain

0,012352

0,001235

0,037978

0,008944

0,026459

0,001102

0,166138

0,017721

France (metropolitan) (2)

0,213231

0,063239

0,061081

0,015898

0,058922

0,013847

France (ODS) (2)

0,019298

0,002063

0,007752

0,000775

—

—

—

—

0,082491

0,015514

0,059803

0,014083

Netherlands

0,053393

0,014083

0,026804

0,006313

0,194365

0,045646

Portugal (mainland)

0,002323

0,000232

0,029213

0,006880

Portugal (autonomous region of the
Azores)

0,000387

0,000039

—

—

United Kingdom

0,044297

0,004430

0,084713

0,022596

Austria

Sweden

Finland

0,022673

0,005292

0,014327

0,001433

—

—

—

—

0,005683

0,000568

0,023151

0,002316

—

—

—

—

—

—

—

—

—

—

—

—

(1) Belgo-Luxembourg Economic Union
(2) Pursuant to the second subparagraph of Article 30(3).

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The Member State shall then allocate the difference to which it is subject among the producer undertakings
established on its territory on the basis of the existing ratio between their A quota and their B quota for the
product in question and the basic quantity A and the basic quantity B for the Member State or, as
appropriate, the sum of the A quotas and the sum of the B quotas for this product assigned to the producer
undertakings.

Sugar, isoglucose and inulin syrup produced beyond the quantity guaranteed shall be considered as C sugar,
C isoglucose and C inulin syrup.

The arrangements for the application of the first subparagraph, the reduction in the guaranteed quantity
and, where appropriate, any change in that quantity as regards the fixing of the guaranteed quantity for the
following marketing year shall be adopted in accordance with the procedure laid down in Article 48.

6.
Before 1 January 2001 the Council shall, in accordance with the procedure laid down in Article 37(2)
of the Treaty, adopt the arrangements to apply from 1 July 2001 to the production of sugar, isoglucose and
inulin syrup.

Article 27

Under the conditions of this chapter, the Member States shall allocate an A and B quota to each
1.
undertaking producing sugar and to each undertaking producing isoglucose which is established on its
territory and has:
— either been provided with an A and B quota during the 1994/95 marketing year,
— or, as regards Austria, Finland and Sweden, has produced sugar or isoglucose during the 1994 calendar

year.

2. With regard to Portugal, that country shall allocate, for its mainland region under the conditions of
this chapter and within the limit of the basic A and B quantities fixed for that region in paragraph 3, an A
quota and a B quota to each undertaking situated in that region which is likely to start up sugar production.

Before such allocation Portugal may use for the benefit of the A and B quotas of the undertaking situated in
the autonomous region of the Azores up to 10 % of the basic A and B quantities fixed in respect of
mainland Portugal.

For the allocation of the A and B quotas referred to in paragraph 1 the basic quantities shall be fixed

3.
as folllows:

I. Basic quantities A

Region

a) Basic quantity A for

b) Basic quantity A for iso-

sugar (1)

glucose (2)

Denmark

Germany

Greece

Spain

France (metropolitan)

France overseas departments

Ireland

Italy

Netherlands

Austria

Potugal (mainland)

The autonomous region of the Azores

Finland

Sweden

Belgium/Luxembourg Economic Union

United Kingdom

(1) In tonnes of white sugar.
(2) In tonnes of dry matter.

328 000,0

1 990 000,0

290 000,0

960 000,0

2 530 000,0

466 000,0

182 000,0

1 320 000,0

690 000,0

316 529,0

63 636,4

9 090,9

133 433,0

336 364,0

680 000,0

1 040 000,0

—

28 882,0

10 522,0

75 000,0

15 887,0

—

—

16 569,0

7 426,0

—

8 093,9

—

10 845,0

—

56 667,0

21 696,0

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II. Basic quantities B

Region

a) Basic quantity B for

b) Basic quantity B for iso-

sugar (1)

glucose (2)

Denmark

Germany

Greece

Spain

France (metropolitan)

France overseas departments

Ireland

Italy

Netherlands

Austria

Portugal (mainland)

The autonomous region of Azores

Finland

Sweden

Belgium/Luxembourg Economic Union

United Kingdom

(1) In tonnes of white sugar.
(2) In tonnes of dry matter.

96 629,3

612 312,9

29 000,0

40 000,0

759 232,8

46 600,0

18 200,0

248 250,0

182 000,0

73 881,0

6 363,6

909,1

13 343,0

33 636,0

146 000,0

104 000,0

—

6 802,0

2 478,0

8 000,0

4 135,0

—

—

3 902,0

1 749,0

—

1 906,1

—

1 085,0

—

15 583,0

5 787,0

4.
For the period referred to in Article 26(1) and notwith-
standing paragraph 2 and Articles 28 and 30, the A quota and
the B quota of each sugar-producing undertaking and each
isoglucose-producing undertaking shall be equal, respectively,
to the A quota and the B quota allocated to it for the 1994/95
marketing year.

6.
As necessary, detailed rules for the application of this
Article, and in particular those concerning the conversion
system referred to in paragraph 5, shall be adopted in accord-
ance with the procedure laid down in Article 48.

However, as regards sugar producing undertakings established
in:

(a) Austria, the A and B quota of the sugar producer shall be
equal to the base A and base B quantities respectively laid
down in paragraph 3, point I(a) and point II(a) for Austria;

1. Without prejudice to Article 27(3),
in the case of
Germany an additional region shall be constituted for the
purposes of applying the quota system to sugar-producing
undertakings established in the said region which produced
sugar before 1 July 1990 and continue to do so thereafter.

Article 28

(b) Finland, the A and B quota of the sugar producer shall be
equal to the base A and base B quantities respectively laid
down in paragraph 3, point I(a) and point II(a) for Finland;

The region corresponds, for the purposes of this Regulation, to
the territory of the former German Democratic Republic.

(c) Sweden, the A and B quota of the sugar producer shall be
equal to the base A and base B quantities respectively laid
down in paragraph 3, point I(a) and point II(a) for Sweden.

As regards the producer of isoglucose established in Finland, its
A and B quota shall be equal to the base A and B quantities
respectively laid down in paragraph 3 point I(b) and point II(b)
for Finland.

The Council, acting by a qualified majority on a proposal
5.
from the Commission,
specify a
standard quality for isoglucose and the criteria for a system for
converting the quantities produced into quantities of
that
standard quality.

shall, where necessary,

2.
For the allocation of A and B quotas to the undertakings
referred to in paragraph 1, the basic quantities shall be as
follows:

(a) basic quantity A: 647 703 tonnes of white sugar,

(b) basic quantity B: 199 297 tonnes of white sugar.

3.
The A quota of each sugar-producing undertaking
referred to in paragraph 1 shall be determined by applying to
the average annual quantity of sugar produced by the under-
taking concerned during the 1984/85 to 1988/89 marketing
years, hereinafter referred to as the reference production, a
coefficient representing the ratio between the basic quantity A
referred to in paragraph 2 and the sum of
the reference
production quantities of the undertakings in the region defined
in paragraph 1.

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The B quota of

each sugar-producing undertaking
4.
referred to in paragraph 1 shall be equal to 30,77 % of its A
quota determined in accordance with paragraph 3.

Rules for the application of this Article, in particular the
5.
terms mentioned in paragraph 1, shall be adopted in accord-
ance with the procedure laid down in Article 48.

Article 30 shall apply only to transfers between the

5.
sugar-producing undertakings referred to in paragraph 1.

6.
Detailed rules for applying this Article shall, where neces-
sary, be adopted in accordance with the procedure laid down
in Article 48.

Article 29

1. Without prejudice 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 para-
graph 1 and 3.

The A quota indicated in paragraph 1 shall if necessary

3.
be adjusted so that the sum of the A and B quotas:

— is not more than 85 %, and

— is not less than 65 %

of the undertaking's installed technical production capacity on 1
October 1992 for the continuous industrial production of inulin
syrup from the specific installation designed and reserved for
hydrolysis of inulin in accordance with paragraph 1.

This capacity shall be determined by the Member State
concerned on the basis of
the basic
agricultural product processed into inulin syrup during a
maximum period of one hundred days per year.

the daily tonnage of

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 hydro-
lysis installation used for manufacturing, in accordance with
paragraph 1, the product defined in Article 11(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 sugar/isoglucose equivalent by
applying a coefficient of 1,9 to verified production in terms of
dry matter.

Article 30

1. Member States may transfer A quotas and B between
undertakings under the conditions laid down in this Article,
taking into consideration the interests of each of the parties
concerned and in particular those of sugar beet producers or
sugar cane producers.

2. Member States may reduce the A quota and the B quota
of each sugar-producing undertaking or each isoglucose-
producing undertaking situated in their territories by a total
quantity not exceeding, for the period referred to in Article
26(1), 10 % of the A quota or of the B quota, as the case may
be, fixed for each of them in accordance with Article 27.

The limit of 10 % referred to in the first subparagraph shall not
apply in Italy, Spain or in the French overseas departments in
cases where the transfer of quotas is made on the basis of
restructuring plans in the beet, cane and sugar sectors in the
region concerned and to the extent necessary to permit such
plans to be implemented. As regards the transfers of quotas in
Spain under such restructuring plans, Article 9 of Regulation
(EEC) No 193/82 (1) shall apply.

The restructuring plans and the ensuing measures affecting the
A and B quotas shall be communicated to the Commission
without delay.

3.
The withdrawn quantities of A quotas and B quotas shall
be allocated by the Member States to one or more other
undertakings, whether or not in possession of a quota, situated
in the same region within the meaning of Article 27(3)
excluding the undertakings from which these quantities were
withdrawn.

Nevertheless, France may reduce by a quantity not exceeding
30 000 tonnes of white sugar in total the A quotas, fixed in
accordance with Article 27, of undertakings situated in its
overseas departments, and may reallocate the quantities thus
withdrawn to one or more other undertakings situated in
metropolitan France. After reduction the A quota of each
undertaking concerned may not be less than the average of its
sugar production within the limit of its basic quota recorded
for such undertaking in each of the marketing years 1977/78
to 1979/80 within the meaning of Regulation (EEC) No 3330/
74 (2).

4.
The Council, acting by a qualified majority on a proposal
from the Commission, shall adopt general rules concerning the
adjustment of quotas, in particular where this results from the
amalgamation or transfer of undertakings.

5.
Detailed rules for the application of this Article shall
be adopted in accordance with the procedure laid down in
Article 48.

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

(1) OJ L 21, 29.1.1982, p. 3.
(2) OJ L 359, 31.12.1974, p. 1. Regulation as replaced by Regulation

(EEC) No 1785/81.

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Article 31

1. Without prejudice to paragraph 2, C sugar not carried
forward pursuant to Article 32, 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 24 shall not apply to such sugar and
Articles 9, 18 and 24 to such isoglucose and inulin syrup.

Exceptionally, and to the extent necessary to guarantee
2.
the Community's sugar supplies, it may be decided that Article
24 shall apply to C sugar. In that event it shall be decided at
the same time that
the C sugar in
question may finally be disposed of on the internal market
without the amount laid down in paragraph 3 of this Article
being levied.

the entire quantity of

3.
Detailed rules for the application of this Article shall
be adopted in accordance with the procedure laid down in
Article 48.

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.

Article 32

Each undertaking shall be free to decide to carry forward
1.
the whole or part of its sugar production outside its ‘A’ quota
to the next marketing year to be treated as part of that year's
production. That decision shall be irrevocable.

Each undertaking shall be free to decide to carry forward the
whole or part of its production of A sugar and B sugar which
has become production of C sugar after application of Article
26(5) to the next marketing year to be treated as part of that
year's production. That decision shall also be irrevocable.
Furthermore, it shall not be subject to any limit that may be
laid down under paragraph 4 of this Article.

Undertakings which take the decision referred to in para-

2.
graph 1 shall:

— inform the Member State concerned, before 1 February, of
the quantity or quantities of sugar being carried forward,
and

— undertake to store such quantity or quantities for a period
of 12 consecutive months from a date to be determined.
For this period, storage costs for C sugar carried forward
and for A sugar and B sugar which have become carried-
forward C sugar after application of Article 26(5) shall also
be reimbursed under Article 8.

However, the date of 1 February referred to in the first indent
of the first subparagraph shall be replaced:

(a) for undertakings established in Spain, by that of 15 April
where beet-sugar production is concerned, and by that of
20 June where cane-sugar production is concerned;

(b) for undertakings established in the United Kingdom, by

that of 15 February.

For undertakings situated in the French departments of Guade-
loupe and Martinique the date referred to in the first indent of
the first subparagraph shall be 1 May.

If an undertaking's definitive production in the marketing year
concerned was less than the estimate made when the decision
to carry forward was taken, then the quantity carried forward
may, before 1 August of the next marketing year, be adjusted
retroactively.

In cases of natural disasters such as drought and flooding
3.
striking a Community region and where the application of
Article 12 is not sufficient to ensure the normal supply of that
region, a decision may be taken, under the procedure laid
down in Article 48, to reduce the period of compulsory storage
referred to in paragraph 2, first subparagraph, second indent
for a quantity of sugar sufficient to ensure the normal supply
of the said region.

4.
Detailed rules for the application of this Article, which
may fix a limit on the quantities of sugar allowed to be carried
forward, shall be adopted in accordance with the procedure
laid down in Article 48.

These rules shall provide, in particular, for a charge to be levied
on any sugar comprising the quantity referred to in the second
indent of
the first subparagraph of paragraph 2 which is
disposed of during the prescribed period of storage.

Article 33

Before the end of each marketing year there shall be

1.
recorded:

(a) 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;

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

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

(d) 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
tonnage of export
levies on the total
obligations in question;

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(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).

manufacturers as a levy on their production of B sugar, B
isoglucose and B inulin syrup.

2.
Before the end of the 2000/2001 marketing year and
without prejudice to Article 26(5), there shall be recorded
cumulatively for the 1995/96 to 2000/2001 marketing year:

(a) the exportable surplus established, on the basis of

the
definitive production of A and B sugar, A and B isoglucose
and, from the 1994/95 marketing year, A and B inulin
syrup and the definitive quantity of sugar, isoglucose and,
from the 1994/95 marketing year, 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 para-
graph 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 36(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 attribut-
able to the current marketing year. An amount equal to this
quotient shall be charged to manufacturers as a basic produc-
tion levy on their production of A and sugar, A and B iso-
glucose 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, expressed as sugar/iso-
glucose equivalent by applying a coefficient of 1,9, the
maximum amount payable on white sugar, and

— on the isoglucose in question,

the share of
production levy borne by sugar manufacturers.

the basic

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
the maximum

by application of a coefficient of 1,9,
amount payable on B white sugar, and

— on B isoglucose, the share of the levy on B sugar borne by

sugar manufacturers.

5. Where the figures recorded pursuant
to paragraph 1
show that, because of the ceiling placed on the basic produc-
tion levy and the B levy fixed in paragraphs 3 and 4, the
foreseeable total loss for the current marketing year is likely
not to be covered by the receipts expected from those levies,
the maximum percentage referred to in the first indent of
paragraph 4 shall be adjusted to the extent necessary to cover
the said total

loss but without exceeding 37,5 %.

The revised maximum percentage for the B levy shall be fixed
for the current marketing year before 15 September of that
marketing year. At the same time the percentage referred to in
the second subparagraph of Article 5(2) shall be adjusted
accordingly.

The Council, acting by a qualified majority on a proposal
6.
from the Commission, may decide that all or part of the losses
resulting from any granting of the production refunds referred
to in Article 9(3) must be included in the total loss referred to
in paragraph 1(e) of this Article.

The levies referred to in this Article shall be collected by

7.
the Member States.

8.
In accordance with the procedure laid down in Article
48, detailed rules for the application of this Article and in
particular:

— the amounts of the levies to be collected,

— the revised maximum percentage for the B levy,

— the adjusted minimum price for B beet corresponding to

the revised maximum percentage for the B levy.

Article 34

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 ques-
tion. An amount equal to this quotient shall be charged on

1. Where, in respect of a particular marketing year, the total
loss recorded pursuant to Article 33(1) and (2) is not fully
covered by the receipts from the production levies for that
marketing year after application of Article 33(3) to (5), an
additional
levy shall be charged to manufacturers, without
prejudice to Article 5, so as to cover fully that part of the total
loss in question which is not covered by the said receipts.

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The additional levy shall be determined for each under-
2.
taking producing sugar, isoglucose or inulin syrup by applying
to the total sum due from the undertaking by way of produc-
tion levies for the marketing year in question a coefficient to be
determined. This coefficient shall be the ratio, reduced by 1, for
loss recorded for the
the Community between the overall
marketing year in question under Article 33(1) and (2) and the
revenue from the basic production levies and B levies due from
manufacturers of
re-
spectively, for that marketing year.

isoglucose and inulin syrup,

sugar,

3.
The additional levy shall be paid by the manufacturers in
question before the 15th day of December following the
marketing year in respect of which it is payable.

Sugar manufacturers may require that sellers of Community-
produced cane, as the case may be, refund part of the addi-
tional levy in question which has been collected. Such refund
may at most be equal to the maximum amount contributed by
the beet or cane sellers, as provided for by Article 33, towards
the basic production levy and the B levy for the marketing year
in question multiplied by the coefficient referred to in para-
graph 2 of this Article.

The refund referred to in the second subparagraph shall be
effected on beet delivered under the marketing year in question.
However, the parties concerned may agree that the refund shall
be effected on beet delivered under the following marketing
year.

4.
For the purposes of the information recorded pursuant to
Article 33(2), account shall be taken of the revenue generated
by charging the additional levy referred to in paragraph 1 of
this Article.

5.
Detailed rules for the application of this Article, and in
particular the coefficient referred to in paragraph 2, shall
be adopted in accordance with the procedure laid down in
Article 48.

Article 35

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 agree-
ment or by contract with reference to the purchase price of the
basic product delivered for this purpose under the marketing
year in question.

Detailed rules for the application of paragraph 1 shall be
2.
adopted, where necessary, in accordance with the procedure
laid down in Article 48.

Article 36

1.
If it is found, after application of Articles 33 and 34 to
the 1994/95 marketing year, that the actual total loss for the
said marketing year:

(a) is not fully covered by the proceeds of the production levy
and, where appropriate, the additional levy, the resulting
financial burden shall be added to the estimated total loss
referred to in Article 33(1)(e) for the marketing year during
which the finding is made;

(b) is less than the proceeds of the production levies and,
where appropriate, the additional levy, an amount equal to
the difference shall be deducted from the estimated total
loss or, as the case may be, added to the estimated total
loss resulting from application of Articles 33 and 34 to the
marketing year during which the finding is made.

2. When the amount of the basis production levy is less
than the maximum amount referred to Article 33(3) or when
the amount of the B levy is less than the maximum amount
referred to in paragraph 4 of the said Article, revised, where
necessary, in accordance with paragraph 5 thereof, the sugar
manufacturers shall be required to pay the beet sellers 60 % of
the difference between the maximum amount of the levy in
question and the amount of the levy to be charged.

The amount to be paid per tonne of beet shall be fixed for the
standard quality.

The price increases and reductions referred to in Article 6 shall
apply to this amount.

3.
Community sugar manufacturers may require from the
sellers of cane produced in the Community the repayment of
60 % of the levy on a quantity of sugar in respect of which the
levy concerned is charged.

4. Member States shall ensure, on the basis of the informa-
tion provided by the sugar manufacturers, that the payment for
the beet satisfies the relevant Community provisions.

5.
Detailed rules for the application of this Article shall
be adopted in accordance with the procedure laid down in
Article 48.

Article 37

1.
In contracts for the delivery of beet for the manufacture
of sugar, beet shall be differentiated according to whether the
quantities of sugar to be manufactured from it are:

(a) A sugar;

(b) B sugar;

(c) sugar other than A and B sugars.

For each undertaking, sugar manufacturers shall
inform the
Member State in which the undertaking concerned produces
sugar of the following:

— the quantities of beet referred to under (a) for which pre-
sowing contracts were signed and the sugar content on
which these contracts were based, and

— the corresponding estimated yield.

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The Member States may require additional

information.

2.
Notwithstanding Article 6(2)(b) and Article 39, any sugar
manufacturer who has not signed pre-sowing delivery contracts
for a quantity of beet equal to the A quota at the minimum
price for A beet shall be required to pay at least this minimum
price for all beet processed into sugar in the undertaking
concerned.

3.
An agreement within the trade may, with the agreement
of the Member State concerned, derogate from paragraphs 1
and 2.

4.
The Council, acting by a qualified majority on a proposal
from the Commission, shall adopt general rules for the applica-
tion of this Article.

5.
Detailed rules for the application of this Article, and, if
necessary, the criteria to be observed by manufacturers when
dividing between beet sellers the beet quantities to be covered
by pre-sowing contracts within the meaning of paragraph 1,
shall be adopted in accordance with the procedure laid down in
Article 48.

Article 38

1.
It may be decided that sugar or isoglucose used for the
manufacture of certain products shall not be considered as
production within the meaning of this chapter.

2.
The Council, acting by a qualified majority on a proposal
from the Commission, shall determine the general rules for the
application of paragraph 1 and the products referred to in that
paragraph.

3.
Detailed rules for the application of this Article shall
be adopted in accordance with the procedure laid down in
Article 48.

Article 39

Sugar manufacturers may buy beet

1.
intended for the
production by the undertaking concerned of C sugar or of the
sugar referred to in Article 38 at a price lower than the
minimum prices for beet referred to in Article 5(1).

In respect of

2.
responding to the quantity of sugar:

the quantity of beet purchased cor-

— disposed of on the internal market, pursuant to Article

31(3), or

— carried forward to the following marketing year, pursuant

to Article 32,

If necessary, detailed rules for the application of this
3.
Article shall be adopted in accordance with the procedure laid
down in Article 48.

CHAPTER V

SYSTEM OF PREFERENTIAL IMPORTS

Article 40

Articles 41, 42 and 43 shall apply to cane sugar, hereinafter
referred to as ‘preferential sugar’, falling within CN code 1701,
which originates in the States listed in Annex II and which is
imported into the Community under:

(a) Protocol 8 on ACP sugar annexed to the fourth ACP-EC

Convention,

(b) the Agreement

between

the

European

Economic

Community and the Republic of India on cane sugar.

Article 41

Where the quality of preferential sugar imported pursuant to
Article 40 and purchased by intervention agencies or by other
agents appointed by the Community deviates
from the
standard quality, the guaranteed prices shall be adjusted by
means of price increases and reductions.

Article 42

No import duty shall apply to imports of preferential

1.
sugar pursuant to Article 40.

Preferential sugar shall enjoy no derogations from the

2.
prohibitions referred to in Article 23(2).

Article 43

1.
For marketing years 1995/96 to 2000/2001, adjustment
aid shall, as an intervention measure, be granted to the industry
engaged in refining preferential raw cane sugar imported for
that purpose into the Community pursuant to Article 40.

2.
The aid referred to in paragraph 1 may be granted only in
respect of the quantities eligible under Article 40, which are
refined into white sugar at the refineries referred to in Article
9(4). The aid for the white sugar in question shall be EUR 0,10
per 100 kilograms, expressed in white sugar.

3.
During the period specified in paragraph 1, additional
basic aid of EUR 0,10 per kilograms, expressed as white sugar,
shall be granted for the refining, at the refineries referred to in
Article 9(4), of raw cane sugar produced in the French overseas
departments, in order to restore the price balance between the
sugar and preferential sugar.

the sugar manufacturers concerned shall, where appropriate,
adjust the purchase price so that it is at least equal to the
minimum price for A beet.

4.
For a particular marketing year, adjustment aid and addi-
tional aid shall be adjusted in the light of the storage levy fixed
for that year and previous adjustments.

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Pursuant to the second subparagraph of Article 9(4), the
5.
aid arrangements provided for in paragraphs 1 to 4 of this
Article may be extended under conditions to be determined, to
raw sugar from beet harvested in the Community and refined
in the refineries defined in Article 9.

6.
Detailed rules for the application of this Article, and in
particular concerning the adjustments referred to in paragraph
4, shall be adopted in accordance with the procedure laid down
in Article 48.

Article 44

1.
During the period referred to in Article 43(1), in order to
ensure adequate supplies to the Community refineries referred
to in Article 9(4), a reduced rate of duty, hereinafter referred to
as ‘special duty’, shall be levied on imports of raw cane sugar
originating in the States referred to in Article 40 and other
States pursuant to agreements with those States, hereinafter
referred to as ‘special preferential sugar’ and subject to the
conditions laid down therein, and in particular the minimum
purchasing price to be paid by refiners.

For the purposes of paragraph 1 and without prejudice to
2.
paragraph 5,
the presumed maximum supply needs per
marketing year, expressed in white sugar, of the refining indus-
tries in:

(a) Finland, amount to 60 000 tonnes,

(b) metropolitan France, amount to 297 000 tonnes,

(c) continental Portugal, amount to 292 000 tonnes,

(d) the United Kingdom, amount to 1 130 000 tonnes.

3. Without prejudice to paragraph 5, on the basis of a
Community forecast supply balance for raw sugar for each
marketing year or part of a marketing year, the quantities of
sugar harvested in the
raw cane
Community with or without distinction of origin available to
the refining industry shall be determined. This balance may be
revised during the marketing year.

sugar and raw beet

For the purposes of determining these quantities, the quantities
of sugar from the French overseas departments and of prefer-
ential sugar for direct consumption to be used in each balance
shall be those determined for the 1994/95 marketing year, less
forecast local consumption in those departments during the
marketing year in question.
If the balance shows that the
amounts available will be insufficient to meet the maximum
needs laid down in paragraph 2, the necessary measures shall
be laid down to enable the Member States concerned to import
the shortfall as special preferential sugar under the arrange-
ments for imports at a special rate of duty provided for in the
agreements referred to in paragraph 1.

Except in the event of force majeure, where the maximum
4.
presumed needs for a Member State, as laid down in paragraph
2 or after revision within the meaning of paragraph 5, are
exceeded, a quantity equivalent to the excess shall be subject to
the payment of an amount corresponding to the full rate of
duty in force for the marketing year in question, increased by

the aid referred to in Article 43 and, where appropriate, by the
highest additional rate of duty recorded during that marketing
year.

However, as regards preferential raw sugar and in the event of
revision within the meaning of paragraph 5, the quantities in
excess of the revised maximum presumed needs, within the
limit of the quantities laid down in paragraph 2, may be sold to
intervention bodies on the terms stipulated in Article 41 if they
cannot be marketed in the Community.

5. Where Article 26(5) applies, the sum of the preferential
maximum needs referred to in paragraph 2 of this Article shall
be reduced for the marketing year concerned by a quantity
equal to the sum of the special preferential sugars needed to
cover the presumed maximum needs determined under the
conditions referred to in paragraph 3 of
this Article, and
reduced by the same percentage reduction as was applied to
the sum of
the basic quantities A for Community sugar
pursuant to the said paragraph 5.

The reduction of the maximum needs shall be apportioned
between the Member States concerned on the basis of the
relationship existing between the quantity fixed for each one of
them in paragraph 2 and the sum of the quantities fixed in that
paragraph.

6.
Detailed rules for the application of this Article, and in
particular concerning the implementation and management of
the agreements referred to in paragraph 1, shall be adopted in
accordance with the procedure laid down in Article 48.

CHAPTER VI

GENERAL PROVISIONS

Article 45

The requisite provisions to prevent the market in sugar being
disturbed as a result of an alteration in price levels at the
changeover from one marketing year to the next or during the
same marketing year may be adopted in accordance with the
procedure laid down in Article 48.

Article 46

Member States and the Commission shall communicate to each
other the information necessary for implementing this Regula-
tion.

Rules for the communication and distribution of such informa-
tion shall be adopted in accordance with the procedure laid
down in Article 48.

Article 47

A Management Committee for Sugar (hereinafter called ‘the
committee’) shall be established, consisting of representatives of
the Member States and presided over by a representative of the
Commission.

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Article 48

Article 53

1. When the procedure laid down in this Article is to be
followed, the chairman shall refer the matter to the committee
either on his own initiative or at the request of the repres-
entative of a Member State.

2.
The representative of the Commission shall submit to the
committee a draft of the measures to be taken. The committee
shall deliver its opinion on the draft within a time limit which
the chairman may lay down according to the urgency of the
matter. The opinion shall be delivered by the majority laid
down in Article 148(2) of the Treaty in the case of decisions
which the Council is required to adopt on a proposal from the
Commission. The votes of the representatives of the Member
States within the committee shall be weighted in the manner
set out in that Article. The chairman shall not vote.

The Commission shall adopt measures which shall apply
immediately.

However,
if these measures are not in accordance with the
opinion of the committee, they shall forthwith be commun-
icated to the Council by the Commission. In that event the
Commission may defer application of the measures which it
has adopted for not more than one month from the date of
such communication.

The Council, acting by a qualified majority, may take a
different decision within one month.

Article 49

The committee may consider any other question referred to it
by its chairman either on his own initiative or at the request of
the representative of a Member State.

Article 50

Goods listed in Article 1(1) which are manufactured or
obtained from products to which Article 23(2) and Article 24
of the Treaty do not apply shall not be admitted to free
circulation within the Community.

Article 51

Save as otherwise provided in this Regulation, Articles 87, 88
and 89 of the Treaty shall apply to the production of, and trade
in, the products listed in Article 1(1).

Article 52

This Regulation shall be applied so that appropriate account is
taken, at the same time, of the objectives set out in Articles 33
and 131 of the Treaty.

1.
Italy shall be authorised, under the conditions set out in
paragraphs 2 and 3, to grant adjustment aid in the case referred
to in paragraph 2(a) and (b) to producers of sugar beet and in
the case referred to in paragraph 2(c) to producers of sugar
beet as well as, where appropriate, to sugar producers in the
region in question.

2.
The aid referred to in paragraph 1 may be granted only in
respect of the corresponding quantity of sugar produced within
the limit of the A and B quotas of each sugar-producing
undertaking.

(a) For the production referred to in the first subparagraph in
northern Italy, the unit amount of aid may not exceed:

— in the 1995/96 marketing year: EUR 8,15 per 100

kilograms of white sugar,

— in the 1996/97 marketing year: EUR 5,43 per 100

kilograms of white sugar,

— in the 1997/98 marketing year: EUR 3,80 per 100

kilograms of white sugar,

— in the 1998/99 marketing year: EUR 2,17 per 100

kilograms of white sugar,

— in the 1999/2000 marketing year: EUR 1,09 per 100

kilograms of white sugar.

(b) For the production referred to in the first subparagraph in
central Italy, the unit amount of aid may not exceed:

— in the 1995/96 marketing year: EUR 8,15 per 100

kilograms of white sugar,

— in the 1996/97 marketing year: EUR 5,43 per 100

kilograms of white sugar,

— in the 1997/98 marketing year: EUR 4,35 per 100

kilograms of white sugar,

— in the 1998/99 marketing year: EUR 3,26 per 100

kilograms of white sugar,

— in the 1999/2000 marketing year: EUR 2,17 per 100

kilograms of white sugar.

(c) For the production referred to in the first subparagraph in
southern Italy, the unit of amount of aid may not exceed:

— in the 1995/96 marketing year: EUR 8,15 per 100

kilograms of white sugar,

— in the 1996/97 marketing year: EUR 7,61 per 100

kilograms of white sugar,

— in the 1997/98 marketing year: EUR 7,06 per 100

kilograms of white sugar,

— in the 1998/99 marketing year: EUR 6,52 per 100

kilograms of white sugar,

— in the 1999/2000 marketing year: EUR 5,98 per 100

kilograms of white sugar,

— in the 2000/2001 marketing year: EUR 5,43 per 100

kilograms of white sugar.

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As regards southern Italy only, Italy may, depending on
3.
the marketing year in question, adjust the aid referred to in
point (c) of paragraph 2 where this is necessitated by excep-
tional requirements connected with restructuring the sugar
sector in that part of Italy. Pursuant to Articles 87, 88 and 89
the Commission shall assess in particular
of
whether such aid is consistent with the restructuring plans.

the Treaty,

— in the 1997/98 marketing year: EUR 4,35 per 100

kilograms of white sugar,

— in the 1998/99 marketing year: EUR 3,26 per 100

kilograms of white sugar,

— in the 1999/2000 marketing year: EUR 2,17 per 100

kilograms of white sugar,

4.

For the purposes of paragraphs 1, 2 and 3:

(a) northern Italy means Italy other
regions listed under (b) and (c);

than the production

(b) central

Italy means Tuscany, Umbria, Latium and the

Marches;

(c) southern Italy means Abruzzi, Molise, Apulia, Sardinia,

Campania, Basilicata, Calabria and Sicily.

5.
Italy shall notify the Council, in respect of each marketing
year, of the measures taken in application of paragraphs 1, 2
and 3 and, in particular, of the distribution of the aid by region
and between producers of sugar beet and producers of sugar in
southern Italy.

6.
Spain shall be authorised, under the conditions set out
below, to grant adjustment aid to sugar-producing undertak-
ings during the 1993/94 to 1996/97 marketing years.

The aid shall be granted only for A and B sugars, as part of
restructuring plans aimed at rationalising the Spanish sugar
industry. These plans shall be forwarded to the Commission.
The aid shall be limited to EUR 45,65 million for the period
referred to in the first subparagraph.

As an intervention measure, 50 % of
marketing year shall be paid by the Community.

the aid granted per

Spain shall be authorised, under the conditions set out in
7.
paragraph 8, to grant adjustment aid in the case referred to in
paragraph 8(a) to producers of sugar beet and in the case
referred to in paragraph 8(b) to producers of sugar cane in its
territory.

8.
The aid referred to in paragraph 7 may be granted only in
respect of the corresponding quantity of sugar produced within
the limit of the A and B quotas of each sugar-producing
undertaking.

(a) For the production referred to in the first paragraph from

beet, the unit amount of aid may not exceed:

— in the 1995/96 marketing year: EUR 8,67 per 100

kilograms of white sugar,

(b) For the production referred to in the first paragraph from
cane, the unit amount of aid may not exceed EUR 7,25 per
100 kilograms of white sugar in the 1995/96 to 2000/
2001 marketing years.

Spain shall notify the Council,

in respect of each
9.
marketing year, of the measures taken in application of para-
graphs 7 and 8 and, in particular, of the distribution of the aid
between producers of sugar beet and producers of sugar cane.

10.
During the 1995/96 to 2000/2001 marketing years, the
United Kingdom shall be authorised to grant, to the extent that
it deems necessary, adjustment aid for the refining of preferen-
tial unrefined cane sugar.

The granting of the aid referred to in the first subparagraph
may take place only within the limit of the quantities agreed
pursuant to the provisions referred to by Article 40, such
quantities being refined into white sugar
in the United
Kingdom. For this production of white sugar, the maximum
amount of aid shall be set at EUR 0,54 per 100 kilograms of
sugar expressed as white sugar.

Article 54

Should special measures be necessary for the implementation
within the framework of this Regulation of obligations arising
from Community membership of
the International Sugar
Agreement, the Council, acting by a qualified majority on a
proposal from the Commission, shall adopt such measures,
which may derogate from the provisions of this Regulation.

Article 55

Regulation (EEC) No 1785/81 is hereby repealed.

References to the said Regulation shall be construed as refer-
ences to this Regulation and shall be read in accordance with
the correlation table set out in Part A of Annex III.

Article 56

— in the 1996/97 marketing year: EUR 5,43 per 100

kilograms of white sugar,

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

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

Done at Brussels, 13 September 1999.

For the Council

The President

T. HALONEN

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ANNEX I

Description of goods

Buttermilk, curdled milk and cream flavoured or containing added fruit, nuts or cocoa, yoghurt,
kephir and other fermented or acidified milk and cream, whether or not concentrated or
containing added sugar or other sweetening matter

CN code

ex 0403

0403 10 51
to
0403 10 99

0403 90 71
to
0403 90 99

0710

Vegetables (uncooked or cooked by steaming or by boiling in water), frozen:

0710 40 00

– Sweet corn

0711

Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water
or in other preservative solutions), but unsuitable in that state for immediate consumption:

0711 90

– Other vegetables: Mixtures of vegetables:

– – Vegetables:

0711 90 30

– – – Sweet corn

ex 1302

Vegetable saps and extracts; pectic substances, pectinates and pectates; agaragar and other
mucilages and thickeners, whether or not modified, derived from vegetable products:

– Mucilages and thickeners, whether or not modified, derived from vegetable products:

1302 31 00

– – Agar-agar

1302 32

– – Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean

seeds or guar seeds:

1302 32 10

– – – from locust beans or locust bean seeds

1302 32 90

– – – from guar seeds

1302 39 00

– – other

1702 50 00

– Chemically pure fructose:

1702 90 10

– – Chemically pure maltose

ex 1704

Sugar confectionery (including white chocolate), not containing cocoa, except liquorice extract
from sub-heading 1704 90 10

1806

Chocolate and other food preparations containing cocoa

ex 1901

Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa or
containing less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewhere
specified or included; food preparations of goods of headings 0401 to 0404, not containing cocoa
or containing less than 5 % by weight of cocoa calculated on a totally defatted basis, not elsewhere
specified or included:

1901 10 00

– Preparations for infant use, put up for retail sale

1901 20 00

– Mixes and doughs for the preparations of bakers' wares of heading 1905

1901 90

– other:

– – other:

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CN code

1901 90 91

Description of goods

– – – containing no milk fats, sucrose, isoglucose, glucose or starch or containing less than 1,5 %
milk fat, 5 % sucrose (including invert sugar) or isoglucose, 5 % glucose or starch, excluding
food preparations in powder form of goods of headings 0401 to 0404

1901 90 99

– – – other

1902

Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared,
such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or
not prepared:

1902 20

– Stuffed pasta, whether or not cooked or otherwise prepared:

– – other:

1902 20 91

– – – cooked

1902 20 99

– – – other

1902 30

– other pasta

1902 40

– Couscous:

1902 40 90

– – other

1904

1905

Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, corn
flakes); cereals (other than maize (corn)) in grain form or in the form of flakes or other worked
grains (except flour and meal), pre-cooked, or otherwise prepared, not elsewhere specified or
included

Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa;
communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice
paper and similar products:

1905 10 00

– Crispbread

1905 20

– Gingerbread and the like

1905 30

– Sweet biscuits; waffles and wafers

1905 40

– Rusks, toasted bread and similar toasted products

1905 90

– other:

– – other:

1905 90 40

– – – Waffles and wafers with a water content exceeding 10 % by weight

1905 90 45

– – – Biscuits

1905 90 55

– – – Extruded or expanded products, savoury or salted

– – – other:

1905 90 60

– – – – With added sweetening matter

1905 90 90

– – – – other

2001

Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic
acid:

2001 90

– other:

2001 90 30

– – Sweet corn (Zea meys var. saccharata)

2001 90 40

– – Yams, sweet potatoes and similar edible parts of plants containing 5 % or more by weight or

starch

2004

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than
products of heading 2006:

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CN code

Description of goods

2004 10

– Potatoes:

– – other:

2004 10 91

– – – In the form of flour, meal or flakes

2004 90

– Other vegetables and mixtures of vegetables:

2004 90 10

– – Sweet corn (Zea meys var. saccharata)

2005

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other
than products of heading 2006:

2005 20

– Potatoes:

2005 20 10

– – In the form of flour, meal or flakes

2005 80 00

– Sweet corn (Zea meys var. saccharata)

2008

Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not
containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:

– Nuts, ground-nuts and other seeds, whether or not mixed together:

2008 11

– – Ground-nuts:

2008 11 10

– – – Peanut butter

2101

2102

Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these
products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes
and extracts, essences and concentrates thereof

Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines of
heading 3002); prepared baking powders:

2102 10

– Active yeasts:

– – Bakers' yeast:

2102 10 31

– – – Dried

2102 10 39

– – – other

2101 20

– Inactive yeasts; other single-cell micro-organisms, dead:

– – Inactive yeasts:

2102 20 11

– – – In tablet, cube or similar form, or in immediate packings of a net content not exceeding 1 kg

2102 20 19

– – – other

ex 2103

Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and
meal and prepared mustard:

2103 10 00

– Soya sauce

2103 20 00

– Tomato ketchup and other tomato sauces

2103 90

– other

2105 00

Ice-cream and other edible ice, whether or not containing cocoa

ex 2106

2202

2205

Food preparations not elsewhere specified or
for compound alcoholic
preparations of sub-heading 2106 90 20 and flavoured or coloured sugar syrups of sub-headings
2106 90 30 to 2106 90 59

included, except

Waters,
non-alcoholic beverages, not including fruit or vegetable juices of heading 2009

including mineral waters and aerated waters, containing added sugar or other

Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances

L 252/30

EN

Official Journal of the European Communities

25. 9. 1999

CN code

2208

Description of goods

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits,
liqueurs and other spirituous beverages:

2208 20

– Spirits obtained by distilling grape wine or grape marc

2208 50 91
and
2208 50 99

– – Geneva

2208 70

– Liqueurs and cordials

2208 90 41
to
2208 90 78

– – Other spirits, and other spirituous beverages

ex 2520

Gypsum; anhydrite; plasters whether or not coloured, with or without small quantities of
accelerators or retarders:

2520 20

– Plasters

ex 2839

Silicates; commercial alkali metal silicates

2839 90 00

– other

Chapter 29

Organic chemicals

Chapter 30

Pharmaceutical products

3203 00 90

– Colouring matter of vegetable or animal origin and preparations based on this matter

ex 3204

3302

Synthetic organic colouring matter and preparations as specified in note 3 to this Chapter based on
this colouring matter

Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one
or more of these substances, of a kind used as raw materials in industry; other preparations based
on odoriferous substances, of a kind used for the manufacture of beverages:

3302 10

– Of a kind used in the food or drink industries:

3302 10 21

– – – – – Containing no milkfats, sucrose, isoglucose, glucose or starch or containing less than

1,5 % milkfat, 5 % sucrose or isoglucose, 5 % glucose or starch

3302 10 29

– – – – – other

3307

Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories
and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared
room deodorisers, whether or not perfumed or having disinfectant properties:

– Preparations for perfuming or deodorising rooms,

including odoriferous preparations used

during religious rites:

3307 49 00

– – other

3307 90 00

– other

ex 3401

Soap, organic surface-active products and preparations for use as soap, in the form of bars, cakes,
moulded pieces or shapes, whether or not containing soap; paper, wadding, felt and nonwovens,
impregnated, coated or covered with soap or detergent:

3401 19 00

– – other

3402

Organic surface-active agents (other than soap); surface-active preparations, washing preparations
(including auxiliary preparations) and cleaning preparations, whether or not containing soap, other
than those of heading 3401

25. 9. 1999

EN

Official Journal of the European Communities

L 252/31

CN code

3403

Description of goods

Lubricating preparations (including cutting-oil preparations, bolt or nut release preparations,
anti-rust or anti-corrosion preparations and mould release preparations, based on lubricants) and
preparations of a kind used for the oil or grease treatment of textile materials, leather, furskins or
other materials, but excluding preparations containing, as basic constituents, 70 % or more by
weight of petroleum oils or of oils obtained from bituminous minerals:

– containing petroleum oils or oils obtained from bituminous minerals:

3403 19

– – other:

3403 19 10

– – – containing 70 % or more by weight of petroleum oils or of oils obtained from bituminous

minerals but not as the basic constituent

3405

3407 00 00

Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal, scouring pastes and
powders and similar preparations (whether or not in the form of paper, wadding, felt, non-wovens,
impregnated, coated or covered with such preparations),
cellular plastics or cellular rubber,
excluding waxes of heading 3404

Modelling pastes, including those put up for children's amusement; preparations known as ‘dental
wax’ or as ‘dental impression compounds’, put up in sets, in packings for retail sale or in plates,
horseshoe shapes, sticks or similar forms; other preparations for use in dentistry, with a basis of
plaster

ex Chapter 35

Albuminoidal substances; modified starches; glues; enzymes, except those of headings 3501 and
3505

ex Chapter 38

Miscellaneous chemical products except those of heading 3809

ex Chapter 39

Plastics and articles thereof:

3901
to
3914

ex 6809

– primary forms

Articles of plaster or of compositions based on plaster (boards, sheets, panels, tiles and similar
articles)

L 252/32

EN

Official Journal of the European Communities

25. 9. 1999

ANNEX II

States, countries and territories referred to in Article 40

Barbados

Belize

Mauritius

People's Republic of the Congo

Côte d'Ivoire

Saint Kitts-Nevis-Anguilla

Fiji

Guyana

India

Jamaica

Kenya

Madagascar

Malawi

Suriname

Swaziland

Tanzania

Trinidad and Tobago

Uganda

Zambia

Zimbabwe

25. 9. 1999

EN

Official Journal of the European Communities

L 252/33

ANNEX III

Part A

CORRELATION TABLE

Regulation (EEC) No 1785/81

This Regulation

—

Article 1(1)

Article 1(2)(a)

Article 1(2)(b)

Article 1(2)(c)

Article 1(2)(d)

Article 24(1), second subparagraph, point (a)

Article 24(1), second subparagraph, point (b)

Article 24(1), second subparagraph, point (c)

Article 5(4)

Article 24b(5)(a)

Article 24b(5)(b)

Article 24c(5)(c)

Title I

Article 2

Article 3

Article 4

Chapter I

Article 1(1)

Article 1(2)(a)

Article 1(2)(b)

Article 1(2)(c)

Article 1(2)(d)

Article 1(2)(e)

Article 1(2)(f)

Article 1(2)(g)

Article 1(2)(h) and (i)

Article 1(2(j)

Article 1(2)(k)

Article 1(2)(l)

Chapter II

Article 2

Article 3

Article 4

Article 5(1), (2) and (3)

Article 5(1), (2) and (3)

Article 5(5)

Article 6

Article 7

Article 8(1), first subparagraph

Article 8(1), second subparagraph

Article 8(1), third subparagraph

Article 8(2)

Article 8(2a)

Article 8(3)

Article 8(4)

Article 8(5)

Article 9(1)

Article 9(2)

Article 9(3)

Article 9(4)

Article 9(4b)

Article 9(4c)

Article 9(5)

Article 9(6), first indent

Article 9(6), second indent

Article 9(6), third indent

Article 9(6), fourth indent

Article 9(6), fifth indent

Article 9(6), sixth indent

Article 9(6), seventh indent

Article 5(4)

Article 6

Article 7

Article 8(1)

—

—

Article 8(2)

—

Article 8(3)

Article 8(4)

Article 8(5)

Article 9(1)

Article 9(2)

Article 9(3)

Article 9(4)

—

—

Article 9(5)

Article 9(6), first indent

Article 9(6), second indent

Article 9(6), third indent

Article 9(6), fourth indent

Article 9(6), fifth indent

Article 9(6), sixth indent

—

L 252/34

EN

Official Journal of the European Communities

25. 9. 1999

Regulation (EEC) No 1785/81

This Regulation

Article 10

Article 11(1)

Article 11(1a)

Article 11(2)

Article 11(3)

Article 12

Title II

Article 13

Article 14

Article 15

Article 15a

Article 16

Article 17

Article 17a

Article 17b

Article 17c

Article 18

Article 19

Article 20

Article 21

Title III

Article 23(1)

Article 23(2)

Article 23(3)

Article 23(4)

Article 23(4a)

Article 23(5)

Article 24(1), first subparagraph

Article 24(1a), first subparagraph

Article 24(1a), second subparagraph

Article 24(1a), third subparagraph

Article 24(1a), fourth subparagraph

Article 24(1a), fifth subparagraph

Article 24(2)

Article 24(3)

Article 24(6)

Article 24(8)

Article 24a(1)

Article 24a(2)

Article 24a(3), first subparagraph

Article 24a(3), second subparagraph

Article 24a(4)

Article 24a(5)

Article 24a(6)

Article 24b(1) to (4)

Article 24b(6)

Article 25

Article 10

Article 11(1)

Article 11(2)

Article 11(3)

Article 11(4)

Article 12

Chapter III

Article 13

Article 14

Article 15

Article 16

Article 17

Article 18

Article 19

Article 20

Article 21

Article 22

Article 23

Article 24

Article 25

Chapter IV

Article 26(1)

Article 26(2)

Article 26(3)

Article 26(4)

Article 26(5)

Article 26(6)

Article 27(1)

Article 27(2), first subparagraph

Article 27(2), second subparagraph

—

—

—

Article 27(3)

Article 27(4)

Article 27(5)

Article 27(6)

Article 28(1)

Article 28(2)

Article 28(3)

—

Article 28(4)

Article 28(5)

Article 28(6)

Article 29(1) to (4)

Article 29(5)

Article 30

25. 9. 1999

EN

Official Journal of the European Communities

L 252/35

Regulation (EEC) No 1785/81

This Regulation

Article 26

Article 27(1)

Article 27(2)

Article 27(2a)

Article 27(3)

Article 27(4)

Article 28

Article 28a

Article 28b

Article 29

Article 30

Article 31

Article 32

Title IIIa

Article 32a

Title IV

Article 33

Article 34

Article 35

Article 36

Article 37(1)

Article 37(2), first subparagraph

Article 37(2), second subparagraph

Article 37(3)

Article 37(4)

Article 37(5)

Article 37(6)

Title V

Article 38

Article 39

Article 40(1)

Article 40(2)

Article 41(1)

Article 41(2) and (3)

Article 42

Article 43

Article 44

Article 45

Article 46

Article 47

Article 48

Article 49

—

—

Annex I

Annex II

—

Article 31

Article 32(1)

Article 32(2)

Article 32(3)

Article 32(4)

—

Article 33

Article 34

Article 35

Article 36

Article 37

Article 38

Article 39

—

—

Chapter V

Article 40

Article 41

Article 42

Article 43

Article 44(1)

Article 44(2)

—

Article 44(3)

Article 44(4)

Article 44(5)

Article 44(6)

Chapter VI

Article 45

Article 46

Article 47

—

Article 48(1)

Article 48(2)

Article 49

Article 50

Article 51

Article 52

Article 53

Article 54

—

—

Article 55

Article 56

Annex I

Annex II

Annex III

L 252/36

EN

Official Journal of the European Communities

25. 9. 1999

Part B

Official Journal

No

Page

Date

Council Regulation (EEC) No 192/82 of 26 January 1982

Council Regulation (EEC) No 606/82 of 16 March 1982

Council Regulation (EEC) No 1482/85 of 23 May 1985

Council Regulation (EEC) No 3768/85 of 20 December 1985
(only with regard to Article 1(1))

Council Regulation (EEC) No 934/86 of 24 March 1986

Commission Regulation (EEC) No 3666/86 of 1 December 1986

Council Regulation (EEC) No 229/87 of 26 January 1987

Commission Regulation (EEC) No 3993/87 of 23 December 1987

Council Regulation (EEC) No 1107/88 of 25 April 1988

Council Regulation (EEC) No 2250/88 of 19 July 1988

Commission Regulation (EEC) No 2306/88 of 26 July 1988

Council Regulation (EEC) No 1069/89 of 18 April 1989

Council Regulation (EEC) No 3577/90 of 4 December 1990
(only with regard to Articles 1 and 2 and Annex V)

Council Regulation (EEC) No 305/91 of 4 February 1991

Commission Regulation (EEC) No 464/91 of 27 February 1991
(only with regard to Article 3)

Commission Regulation (EEC) No 61/92 of 10 January 1992
(only with regard to Article 2)

Council Regulation (EEC) No 3484/92 27 November 1992

Council Regulation (EEC) No 3814/92 of 28 December 1992

Council Regulation (EEC) No 1548/93 of 14 June 1993

Council Regulation (EC) No 133/94 of 24 January 1994

Council Regulation (EC) No 3290/94 of 22 December 1994
(only with regard to Articles 1 and 2 and Annex IV)

Commission Regulation (EC) No 283/95 of 13 February 1995

Council Regulation (EC) No 1101/95 of 24 April 1995
(only with regard to Article 1)

Commission Regulation (EC) No 1126/96 of 24 June 1996

Council Regulation (EC) No 1599/96 of 30 July 1996

Council Regulation (EC) No 1148/98 of 2 June 1998

L 21

L 74

L 151

L 362

L 87

L 339

L 25

L 377

L 110

L 198

L 201

L 114

L 353

L 37

L 54

L

6

L 353

L 387

L 154

L 22

L 349

L 34

L 110

L 150

L 206

L 159

1

1

1

8

1

10

1

24

20

28

65

1

23

1

22

19

8

7

10

7

29.1.1982

18.3.1982

10.6.1985

31.12.1985

2.4.1986

2.12.1986

28.1.1987

31.12.1987

29.4.1988

26.7.1988

27.7.1988

27.4.1989

17.12.1990

9.2.1991

28.2.1991

11.1.1992

3.12.1992

31.12.1992

25.6.1993

27.1.1994

105

31.12.1994

3

1

3

43

38

14.2.1995

17.5.1995

25.6.1996

16.8.1996

3.6.1998