Commission Regulation (EC) No 1325/2001 of 29 June 2001 providing for the continued application of safeguard measures with regard to imports of sugar sector products with EC/OCT originating status from the overseas countries and territories for the period 1 July to 1 December 2001
Date: 2001-06-29
Institutions: European Commission
Subjects: export licence, free circulation, import licence, originating product, overseas countries and territories, sugar

30.6.2001

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Official Journal of the European Communities

L 177/57

COMMISSION REGULATION (EC) No 1325/2001

of 29 June 2001

providing for the continued application of safeguard measures with regard to imports of sugar
sector products with EC/OCT originating status from the overseas countries and territories for the
period 1 July to 1 December 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 2001/161/EC (2), hereinafter referred to
as ‘the OCT Decision’, and in particular Article 109 thereof,

After consulting the Committee set up in accordance with
Article 1(2) of Annex IV to that Decision,

Whereas:

tonnes. In accordance with the basic Regulation, produc-
tion under quota is around 14,2 million tonnes a year
(in 2000/01 it stood at around 13,88 million tonnes).
Any imports of sugar into the Community therefore
generate a need to export a corresponding quantity of
Community sugar that cannot be disposed of on that
market. Refunds on that sugar — within certain quotas
— are charged to the Community budget (at around
EUR 430/tonne during 2000/01). However, exports on
which refunds are payable are limited in quantity under
the Agreement on Agriculture concluded as part of the
Uruguay Round (4)
and have been reduced from
1 555 600 tonnes for the 1995/96 marketing year to
1 273 500 tonnes from 2000/01, which gives total
refunds of EUR 499,1 million.

(1)

(2)

(3)

(4)

countries

and territories

The Commission has noted that imports of sugar (CN
code 1701) and of mixtures of sugar and cocoa covered
by CN codes 1806 10 30 and 1806 10 90 originating in
the overseas
(hereinafter
referred to as ‘the OCT’), and in particular imports with
EC/OCT originating status, rose sharply from 1997 to
1999. These imports increased from zero tonnes in
1996 to more than 53 000 tonnes in 1999. The prod-
ucts concerned are imported into the Community free of
import duties and are allowed in with no limit on
quantity in accordance with Article 10(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 by one year to 28 February 2001. By
Decision 2001/161/EC, the Council again extended the
period of application of Decision 91/482/EEC by a
further period ending on 1 December 2001.

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 (3) limits EC/OCT originating status for
the products referred to in recital 1 to a maximum of
3 878 tonnes of sugar for the period 1 March to 30 June
2001.

In the past few years difficulties have arisen on the
Community sugar market. That market is in surplus.
the 2000/01
Sugar consumption is constant. For
it stands at around 12,85 million
marketing year,

(1) OJ L 263, 19.9.1991, p. 1.
(2) OJ L 58, 28.2.2001, p. 21.
(3) OJ L 58, 28.2.2001, p. 13.

(5)

(6)

(7)

the common organisation of

the 2000/01 marketing year,

The operation of
the
market in sugar may be greatly destabilised by these
the
difficulties. For
Commission reduced Community producers' quotas by
498 800 tonnes (5). This measure has already brought
about a reduction in areas under sugar-beet. A further
substantial reduction cannot be ruled out for the 2001/
02 marketing year. Under the reform of the common
for sugar (6), the
organisation of the markets (COM)
Council has reduced the Community production quota
by 115 000 tonnes. Any further imports of sugar or
products with a high sugar content from the OCT will
call for a greater reduction in the quota for Community
producers and will accordingly entail 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. On
12 June 2001 the Commission therefore decided to
continue to apply the safeguard clause provided for in
Article 109 of the OCT Decision in respect of imports
from the OCT of certain sugar sector products with
EC/OCT originating status.

Article 100 of the OCT Decision states that its object is
to promote trade between the OCT and the Community,
taking account of their respective levels of development.
that Decision,
In accordance with Article 109(2) of
priority must be given to such measures as would least
disturb the functioning of
the association and the
Community. Furthermore,
such measures must not
exceed the limits of what is strictly necessary to remedy
the difficulties that have arisen.

(4) OJ L 336, 23.12.1994, p. 22.
(5) Commission Regulation (EC) No 2073/2000 (OJ L 246, 30.9.2000,

p. 38).

(6) Council Regulation (EC) No 1260/2001 (OJ L 178, 30.6.2001,

p. 1).

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(8)

(9)

To that end, for the period 1 July to 1 December 2001
EC/OCT originating status for products covered by CN
codes 1701, 1806 10 30 and 1806 10 90 should be
restricted to a maximum of 4 848 tonnes of sugar,
which figure represents the sum of the highest quantities
of imports of the products in question recorded annually
in the three years preceding 1999,
the year when
imports soared. For the purposes of determining the
quantities of sugar concerned, the Commission notes 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 for the sole
purpose of adopting these safeguard measures, for sugar
covered by CN code 1701 and for 1997, the Commis-
sion is basing itself on the figure of 10 372,2 tonnes, i.e.
total imports from the OCT of sugar with EC/OCT and
ACP/OCT originating status recorded by Eurostat.

Safeguard measures should also be introduced for prod-
ucts covered by CN codes 1806 10 30 and 1806 10 90
in view of their high sugar content and their prejudicial
effects on the COM for sugar, which are similar to those
of unprocessed sugar. Those measures should ensure
that imported OCT-originating sugar-based products do
not exceed a quantity that could disturb the COM for
sugar, while at
the same time guaranteeing them a
commercial outlet.

(10) As part of the review of the OCT Decision, the Commis-
sion made a proposal to the Council to abolish the rules
allowing cumulation of originating status in the sugar
sector.

(11)

The specific checks on imported goods covered by the
measures laid down in 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 in Council Regulation (EEC) No
2913/92 of 12 October 1992 establishing
the
Community Customs Code (2), as last amended by Euro-
pean Parliament and Council Regulation (EC) No 2700/
2000 (3), should ensure compliance with the provisions
of this Regulation. In order to ensure proper manage-
ment, avoid speculation and permit effective controls on
products covered by CN codes 1701, 1806 10 30 and
1806 10 90, detailed rules should be laid down on the
lodging of
licence applications. For products with
EC/OCT originating status, applications must in partic-
ular 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
security has been lodged to ensure
that a special

the undertakings arising from the
performance of
licences.
In order to create minimal disturbance for
operators and at their request, the term of validity of
licences should be extended beyond that provided for
under the current safeguard measures.

(12)

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

HAS ADOPTED THIS REGULATION:

Article I

For products covered by CN codes 1701, 1806 10 30 and
1806 10 90, cumulation of EC/OCT originating status as
referred to in Article 6 of Annex II to Decision 91/482/EEC
shall be permitted for a quantity of 4 848 tonnes of sugar
during the period of application of this Regulation.

Compliance with that limit shall be ascertained on the basis of
the sugar content of imported products other than unprocessed
sugar.

Article 2

1.
Imports of the products referred to in Article 1 shall be
subject to the issue of an import licence in accordance with
Commission Regulation (EC) No 1291/2000 (4) laying down
common detailed rules for the application of the system of
import and export licences and advance fixing certificates for
agricultural products.

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

However:

— licences shall bear the serial number 53.0001,

— licence applications may be for a maximum of 4 848

tonnes,

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

— applications shall be lodged with the competent authorities
in the first five working days of each month, with the
exception of July 2001, when applications shall be lodged
by 15 July 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 4 848
tonnes during the period of application of this Regulation,

(1) Not yet published.
(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.

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— the term of validity of import licences shall expire on the
final day of the fourth month following their issue.

the common organisation of the markets in the sugar sector
for the sugar used in those products.

3.
On completion of the formalities for release for free
circulation in the customs territory of the Community, opera-
tors shall present the customs authorities of the Member States
with a copy of the export licence issued in accordance with
Article 13 of Council Regulation (EC) No 2038/1999 (1) on

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 from 1 July to 1 December 2001.

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

Done at Brussels, 29 June 2001.

For the Commission

Franz FISCHLER

Member of the Commission

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