Commission Regulation (EC) No 396/2001 of 27 February 2001 providing for the continued application of safeguard measures for imports from the overseas countries and territories of sugar sector products with EC/OCT cumulation of origin for the period 1 March to 30 June 2001
Date: 2001-02-27
Institutions: European Commission
Subjects: European Community, import licence, import policy, originating product, overseas countries and territories, sugar product

28.2.2001

EN

Official Journal of the European Communities

L 58/13

COMMISSION REGULATION (EC) No 396/2001

of 27 February 2001

providing for the continued application of safeguard measures for imports from the overseas
countries and territories of sugar sector products with EC/OCT cumulation of origin for the period
1 March to 30 June 2001

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), hereafter 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)

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)
increased greatly between 1997 and 1999, particularly
those imports with EC-OCT cumulation of origin, which
increased from zero in 1996 to more than 53 000
tonnes in 1999. Such products are imported into the
import duties and are admitted
Community free of
without quantity limits
in accordance with Article
101(1) of the OCT Decision.

By Decision 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 until 28 February 2001. The Commission
has proposed that the Council extend this Decision for
the four-month period ending on 30 June 2001.

Commission Regulation (EC) No 2081/2000 of 29
September 2000 providing for the continued application
of safeguard measures for imports from the overseas
countries and territories of sugar sector products with

(1) OJ L 263, 19.9.1991, p. 1.
(2) OJ L 55, 29.2.2000, p. 67.

(4)

(5)

(6)

(7)

EC/OCT cumulation of origin (3), as amended by Regula-
tion (EC) No 2496/2000 (4), limits EC/OCT cumulation
of origin for the products referred to in recital 1 to a
maximum of 4 848 tonnes of sugar for the period 1
October 2000 to 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
per year, while production under quota is around 14,3
million tonnes per year. Any imports of sugar 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 435/
tonne). However, exports with refund are limited in
volume by the Agreement on Agriculture concluded as
part of the Uruguay Round (5) 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.

The operation of the COM in sugar may be greatly
destabilised by these difficulties. For the 2000/2001
marketing year, the Commission reduced Community
producers' quotas by 498 800 tonnes (6). 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 loss of income
for them.

As a result of these continuing difficulties, there is a risk
that a sector of Community activity will deteriorate. The
Commission therefore decided on 13 February 2001 to
continue to apply the safeguard clause provided for in
Article 109 of the OCT Decision in respect of imports of
sugar sector products from the OCT with EC-OCT
cumulation of origin.

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. More-
over, those measures must not exceed the limits of what
is strictly necessary to remedy the difficulties that have
arisen.

(3) OJ L 246, 30.9.2000, p. 64.
(4) OJ L 288, 15.11.2000, p. 13.
(5) OJ L 336, 23.12.1994, p. 22.
(6) Commission Regulation (EC) No 2073/2000 of 29 September 2000
reducing, for the 2000/2001 marketing year, the guaranteed quan-
tity under the production quotas scheme for the sugar sector and
the presumed maximum supply needs of sugar refineries under the
preferential

import arrangements (OJ L 246, 30.9.2000, p. 38).

L 58/14

EN

Official Journal of the European Communities

28.2.2001

(8)

(9)

(10)

(11)

(12)

To that end, EC/OCT cumulation of origin for products
falling within CN codes 1701, 1806 10 30 and
1806 10 90 should be restricted to a maximum of
3 878 tonnes of sugar for the period 1 March to 30 June
2001, that figure representing the sum of the highest
annual volumes of imports of the products in question
recorded in the three years preceding 1999, the year in
which imports recorded a sharp rise. In determining the
quantities of sugar to be taken into consideration, the
Commission takes note of the position adopted by the
President of the Court of First Instance in his rulings of
12 July and 8 August 2000 in cases T-94/00R, T-110/
00R and T-159/00R (1), without, however, recognising it
as justified. Consequently, in order to avoid unnecessary
procedures and solely for the purposes of adopting these
safeguard measures, the Commission, for sugar falling
within CN code 1701 and for 1997, bases itself on the
figure of 10 372,2 tonnes, the total
imports of sugar
from the OCT with EC-OCT and ACP/OCT cumulation
of origin recorded by Eurostat.

Safeguard measures should also be introduced for prod-
ucts
falling within CN codes 1806 10 30 and
1806 10 90 in view of their high sugar content and the
similar prejudicial effects on the COM in sugar as with
unprocessed sugar. Those measures should ensure that
the quantities of sugar-based products imported from
the OCT do not exceed a volume that could disturb the
COM in sugar, while at the same time guaranteeing
them a commercial outlet.

It should be recalled that the Commission proposed to
the Council, as part of a review of the OCT Decision,
that the rules allowing cumulation in the sugar sector be
abolished.

The specific checks on 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 (2), as last amended by Regu-
lation (EC) No 2700/2000 of the European Parliament
and of the Council (3), should ensure compliance with
the provisions laid down by this Regulation.

In order to guarantee proper management, avoid specu-
lation and permit effective controls on products falling
within CN codes 1701, 1806 10 30 and 1806 10 90,
the rules for the lodging of licence applications should
be specified. They must
for products with
EC-OCT cumulation of origin, proof that the applicant
normally carries on business in the sugar sector, a
declaration that no other applications have been lodged

include,

by that person and proof that a special security has been
lodged to ensure performance of
the undertakings
arising from the licences.

(13)

In view of the impact of the imports, the safeguard
measures should be made to apply with immediate
effect,

HAS ADOPTED THIS REGULATION:

Article 1

For products
falling within tariff headings CN 1701,
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 3 878 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 in accordance with
Commission Regulation (EC) No 1291/2000 of 9 June 2000
laying down common detailed rules for the application of the
system of import and export licences and advance fixing certi-
ficates for agricultural products (4).

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 qualify as ACP/OCT originating products (5)
shall apply mutatis mutandis.

However:

— licences shall bear the serial number 53.0001,

— licence applications may be for a maximum of 3 878

tonnes,

— 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 2001, when applications may be
lodged by 15 March 2001 at the latest,

— the single reducing coefficient shall be applied and the
lodging of new applications suspended where the quantity
covered by applications for import licences exceeds 3 878
tonnes during the period of application of this Regulation,

— import licences shall expire on the final day of the third

month following issue.

(1) Not yet published in the Official Journal.
(2) OJ L 302, 19.10.1992, p. 1.
(3) OJ L 311, 12.12.2000, p. 17.

(4) OJ L 152, 24.6.2000, p. 1.
(5) OJ L 349, 19.12.1997, p. 26.

28.2.2001

EN

Official Journal of the European Communities

L 58/15

For the products referred to in Article 1 with EC/OCT cumulation of origin, on completion of the
3.
formalities for release for free circulation in the customs territory of the Community, operators shall give
the customs authorities in the Member States 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 (1), for the sugar used in those products.

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

It shall apply from 1 March 2001 to 30 June 2001.

Article 3

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

Done at Brussels, 27 February 2001.

For the Commission

Franz FISCHLER

Member of the Commission

(1) OJ L 252, 25.9.1999, p. 1.