Commission Regulation (EC) No 465/2000 of 29 February 2000 introducing safeguard measures for imports from the overseas countries and territories of sugar sector products with EC/OCT cumulation of origin
Date: 2000-02-29
Institutions: European Commission
Subjects: import, overseas countries and territories, protective clause, sugar product

1. 3. 2000

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Official Journal of the European Communities

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COMMISSION REGULATION (EC) No 465/2000

of 29 February 2000

introducing safeguard measures for imports from the overseas countries and territories of sugar
sector products with EC/OCT cumulation of origin

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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 terri-
tories with the European Economic Community (1), as last
amended by Decision 2000/169/EC (2), hereinafter known as
the ‘OCT Decision’, and in particular Article 109 thereof,

tonnes. Any imports into the Community therefore
involve a corresponding quantity of Community sugar
which cannot be sold on that market having to be
exported. Refunds for that sugar — within the limit of
certain quotas — are charged to the Community budget
(currently at around EUR 520/tonne). However, exports
with refund are limited in volume by the Agreement on
Agriculture concluded as part of the Uruguay Round
and have been reduced from 1 555 600 tonnes for the
1995/96 marketing year to 1 273 500 tonnes for the
2000/2001 marketing year.

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

(5)

Whereas:

(1)

(2)

(3)

(4)

The Commission has noted that imports of sugar (CN
code 1701) and of mixtures of sugar and cocoa falling
within CN codes 1806 10 30 and 1806 10 90 origin-
ating in the overseas countries and territories (the OCT)
have been increasing greatly since 1997, particulary
those imports with EC/OCT cumulation of origin, which
have gone from zero in 1996 to more than 48 000
tonnes in 1999. Such products are imported into the
Community free of import duties and are released for
free circulation without quantity limits in accordance
with Article 101(1) of the OCT Decision.

By 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 (3), applicable until 29 February
2000, the Commission made those imports subject to
minimum prices for the sugar and to the Community
surveillance procedure for mixtures of sugar and cocoa
so as to place those imported products on an equal
competitive footing with Community products.

By Decision 2000/169/EC of 25 February 2000
extending Decision 91/482/EEC on the association of
the overseas countries and territories with the European
Economic Community the Council extended the period
of application of the OCT Decision by a year, until 28
February 2001.

In the past few years difficulties have arisen on the
Community sugar market, a market in surplus. Sugar
consumption is constant at some 12,7 million tonnes,
while production is between 16,7 and 17,8 million

(6)

(7)

(8)

The operation of the CMO in sugar may be greatly
destabilised by these difficulties. For the 2000/2001
is
marketing year, which starts on 1 July 2000,
planned on the basis of the most cautious estimates
currently available,
to reduce Community producers'
quotas by some 500 000 t (4). Any further import of
sugar or products with a high sugar content from the
OCT will mean a greater reduction in the quota for
Community producers and a greater guaranteed income
loss for them.

it

Imports occur
in a period of some three months
following applications for the issue of licences as a result
of their period of validity. As a result, all imports taken
together, including those in the months preceding the
start of the 2000/2001 marketing year, dictate the situa-
tion on the market during that marketing year and
generate the detrimental effects mentioned in recital (5)
above.

As a result of the difficulties there is a risk that a sector
of Community activity will deteriorate. The Commission
therefore decided on 22 February 2000 to apply the
safeguard clause provided for in Article 109 of the OCT
Decision in respect of
imports from the OCT with
EC/OCT cumulation of origin of sugar sector products.

Article 100 of the OCT Decision states that its object is
to promote trade between the overseas countries and
territories and the Community, taking account of 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 stricly
necessary to remedy the difficulties that have arisen.

(1) OJ L 263, 19.9.1991, p. 1.
(2) OJ L 55, 29.2.2000, p. 67.
(3) OJ L 294, 16.11.1999, p. 11.

(4) Article 26(5) of Council Regulation (EC) No 2038/1999 of 13
September 1999 on the common organisation of the markets in the
sugar sector (OJ L 252, 25.9.1999, p. 1).

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Official Journal of the European Communities

1. 3. 2000

(9)

To this end, the EC/OCT cumulation of origin for prod-
ucts falling within CN codes 1701, 1806 10 30 and
1806 10 90 should be rectricted to a maximum of
3 340 tonnes of sugar, that figure representing the sum
of the highest annual volumes of imports of the prod-
ucts in question recorded in the three years preceding
1999, the year in which imports recorded an exponen-
tial rise, and in respect of which there is currently an
OLAF investigation into suspected irregularities. Imports
of products falling within CN codes 1806 10 30 and
1806 10 90 must also be subject to safeguard measures
in view of their high sugar content and the detrimental
effects of the same nature as for unprocessed sugar on
the CMO in sugar. That measure must ensure that
quantities of imported sugar-based products originating
in the OCT do not exceed a volume likely to cause
disturbances to the CMO in sugar while guaranteeing
them commercial ourlets.

(10)

The Commission reserves the right to propose to the
Council, as part of a review of the OCT Decision, that
the rules allowing cumulation be deleted or that a
quantity restriction at
the lowest possible level be
applied, taking account of the actual financial benefits to
the OCT, the objectives of the common agricultural
policy and budgetary restraints.

(11)

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 Regulation (EC) No 955/1999 of the Euro-
pean Parliament and of the Council (2), applicable to
trade with third countries should ensure compliance
with the provisions introduced in this Regulation.

(13)

In view of the impact of the imports mentioned in
recital (6) above, the safeguard measures should be made
to apply with immediate effect,

HAS ADOPTED THIS REGULATION:

Article 1

falling within tariff headings CN 1701,
For products
1806 10 30 and 1806 10 90, EC/OCT cumulation of origin as
referred to in Article 6 of Annex II to Decision 91/482/EEC
shall be permitted for a quantity of 3 340 tonnes of sugar
during the period of validity of this Regulation.

For products other than unprocessed sugar, the sugar content
of the imported product shall be taken into account for the
purposes of complying with that limit.

Article 2

Import of the products referred to in Article 1 shall be

1.
subject to the issue of an import licence.

2.
Articles 2 to 6 of Commission Regulation (EC) No 2553/
97 of 17 December 1997 on rules for issuing import licences
for certain products covered by CN codes 1701, 1702, 1703
and 1704 and qualifying as ACP/OCT originating products (3)
shall apply mutatis mutandis.

However:

— licences shall bear the serial number 53.0001;

— Article 4(3) of Regulation (EC) No 2553/97 shall not apply;

— applications shall be lodged with the competent authorities
during the first five working days of each month, with the
exception of March 2000, in which applications may be
lodged by 15 March 2000 at the latest.

3.
Applications for import licences shall be accompanied by
a copy of the export licence issued in accordance with Article
13 of Council Regulation (EC) No 2038/1999 of 13 September
1999 on the common organisation of the markets in the sugar
sector (4), in respect of the sugar for the products referred to in
Article 1.

(12)

In order to guarantee proper management, avoid specu-
lation and permit effective controls the rules for the
lodging of licence applications should be specified. They
must include proof that the applicant normally carries
on business in the sugar sector, a declaration that no
other applications have been lodged by that person and
proof that a special security has been lodged in respect
of performance of the undertakings arising from the
licences.

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 30 September 2000.

(1) OJ L 302, 19.10.1992, p. 1.
(2) OJ L 119, 7.5.1999, p. 1.

(3) OJ L 349, 19.12.1997, p. 26.
(4) OJ L 252, 25.9.1999, p. 1.

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

Done at Brussels, 29 February 2000.

For the Commission

Franz FISCHLER

Member of the Commission