Commission Regulation (EC) No 2423/1999 of 15 November 1999 introducing safeguard measures in respect of sugar falling within CN code 1701 and mixtures of sugar and cocoa falling within CN codes 18061030 and 18061090 originating in the overseas countries and territories
Date: 1999-11-15
Institutions: European Commission
Subjects: cocoa, originating product, overseas countries and territories, protective clause, sugar

16. 11. 1999

EN

Official Journal of the European Communities

L 294/11

COMMISSION REGULATION (EC) No 2423/1999

of 15 November 1999

introducing safeguard measures in respect of sugar falling within CN code 1701 and mixtures of
sugar and cocoa falling within CN codes 1806 10 30 and 1806 10 90 originating in the overseas
countries and territories

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

Having regard to the Treaty establishing the European
Community,

Having regard to Council Decision 91/482/EEC of 25 July
1991 on the association of the overseas countries and territ-
ories with the European Economic Community (1), as last
amended by Decision 97/803/EC (2), hereinafter referred to as
the ‘OCT Decision’, and in particular Article 109 thereof,

Following consultation with the Committee set up under
Article 1(2) of Annex IV to that Decision,

Whereas:

(1)

(2)

(3)

In recent months difficulties have arisen which may
result in a serious deterioration of the Community's
sugar sector. These difficulties have been caused by
increasing quantities of sugar
imported from 1997
onwards under the EC/OCT cumulation of origin proce-
dure and in the form of mixtures of sugar and cocoa
falling within CN codes 1806 10 30 and 1806 10 90
originating in the overseas countries and territories.
These products are imported into the Community free of
import duties in accordance with Article 101(1) of the
OCT Decision.

These imports may result in a serious deterioration in
the operation of the common organisation of the market
in the sugar sector and have highly detrimental effects
on Community sugar operators.

the market organisation may be
The operation of
profoundly destabilised: sugar consumption is constant
on the Community market, and accordingly any import
of sugar into the Community at prices below the inter-
vention price throws onto the export market a corres-
ponding quantity of Community sugar which it cannot
absorb. Refunds paid on such sugar are charged to the
Community budget
(currently at around EUR 520/
tonne). Such exports are limited in volume by the GATT
agreements, and the imports thus reduce the scope for
exporting sugar within quotas. To cope with this
problem, consideration should be given to reducing
Community production quotas.

(1) OJ L 263, 19.9.1991, p. 1.
(2) OJ L 329, 29.11.1997, p. 50.

Community sugar operators also risk damage as a result
of these higher imports. The features of the common
market organisation in sugar are the principle of self-
financing by the Community's sugar producers, disposal
of surplus sugar produced in the Community (particu-
larly through export refunds), and a minimum price
which Community sugar manufacturers must pay for
their raw material
(beet). Such increased imports of
sugar, either as such or in the form of products with a
high sugar content, at prices below those at which
Community producers can sell comparable products,
have a profoundly destabilising impact on the activity of
Community undertakings which, owing to the common
agricultural policy's constraints in favour of
farmers,
cannot compete with the imported products.

(5)

(6)

(7)

(8)

An increase in the volume of exports attracting refunds
may also entail the risk of a rise in the unit costs of
exporting sugar within quotas and consequently in the
production levy on Community sugar producers.

There is therefore an ongoing risk that a sector of
Community activity will deteriorate. In view of this risk
it is necessary, in accordance with Article 109 of the
OCT Decision, to apply safeguard measures in respect of
imports into the Community of sugar falling within CN
code 1701 and mixtures of sugar and cocoa with a
sugar content over 65 % falling within CN codes
1806 10 30 and 1806 10 90 originating in the overseas
countries and territories.

taking account of

Under Article 100 of the OCT Decision, its object is to
promote trade between the overseas countries and territ-
ories and the Community,
their
respective levels of development.
In accordance with
Article 109(2) of the OCT Decision, priority must be
given to such measures as would least disturb the func-
tioning of the association and the Community; these
measures must not exceed the limits of what is strictly
necessary to remedy the difficulties that have arisen.

To this end, sugar falling within CN code 1701 should
be released for free circulation in the Community free of
import duties only if the import price cif, as shown by
supporting documents, of unpacked sugar of
the
standard quality defined by Community rules delivered
to European ports in the Community is not less than the
in question.
intervention price of

the products

L 294/12

EN

Official Journal of the European Communities

16. 11. 1999

(9)

(10)

This measure should ensure that imported sugar is not
sold at prices below those on the Community market
and avoid the destabilising effects of these imports while
ensuring an adequate unit profit for the OCT operators
concerned and compliance with the order of preferences
introduced in favour of Community products and of
products originating in the OCT by the EC Treaty.

In the case of mixtures of sugar and cocoa falling within
CN codes 1806 10 30 and 1806 10 90, imports should
be subject to Community surveillance. This will allow
the Commission to monitor the development of such
imports closely, as regards quantities and prices, without
generating any additional administrative burden for
operators.

The specific checks on the value of the imported goods
covered by the measures laid down by this Regulation,
and the checks applicable in trade with third countries
established under the Community rules on release for
free circulation and customs value laid down by Council
Regulation (EEC) No 2913/92 of 12 October 1992
establishing the Community Customs Code (1), as last
amended by Commission Regulation (EC) No 1662/
1999 (2), should ensure compliance with the provisions
introduced in this Regulation.

(11)

In view of the trend with respect to quantities already
supplied during the 1998/1999 marketing year, these
temporary measures should be applied until the end of
the period of application of the OCT Decision,

HAS ADOPTED THIS REGULATION:

Article 1

1.
Products with EC-OCT cumulation of origin falling within
CN code 1701 shall be released for free circulation in the
Community free of import duties only if the import price cif of
unpacked goods of standard quality as laid down by Council

Regulation (EEC) No 793/72 (3) fixing the standard quality for
white sugar,
is not less than the intervention price of the
products in question.

2. When carrying out the formalities of release for free
circulation for the products referred to in paragraph 1, impor-
ters shall produce any document showing the sales price and
the transport and insurance costs for the imported goods. To
this end, the import price shall be the price of the unpacked
goods.

3.
The Member States shall communicate each week to the
Commission, by any form of written telecommunication, the
quantities of the products referred to in paragraph 1 for which
import licences have been issued, indicating the date of issue
and the exporting country.

This information must be sent separately from details of other
applications for import licences in the sugar sector.

Article 2

Products originating in the overseas countries and territories
falling within CN codes 1806 10 30 and 1806 10 90 shall be
released for free circulation in the Community free of import
duties subject to Community surveillance in accordance with
the rules laid down in Article 308d of Commission Regulation
(EEC) No 2454/93 (4) laying down provisions for the imple-
mentation of Council Regulation (EEC) No 2913/92 estab-
lishing the Community Customs Code.

Article 3

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

It shall apply until 29 February 2000.

However, Article 1 shall not apply to imports for which import
licences were issued before the entry into force of this Regula-
tion.

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

Done at Brussels, 15 November 1999.

For the Commission

Franz FISCHLER

Member of the Commission

(1) OJ L 302, 19.10.1992, p. 1.
(2) OJ L 197, 29.7.1999, p. 25.

(3) OJ L 94, 21.4.1972, p. 1.
(4) OJ L 253, 11.10.1993, p. 1.