Commission Regulation (EC) No 1554/2001 of 30 July 2001 laying down detailed rules for the application of Council Regulation (EC) No 1260/2001 as regards marketing sugar produced in the French overseas departments and equalising the price conditions with preferential raw sugar
Date: 2001-07-30
Institutions: European Commission
Subjects: EU aid, French overseas department and region, financial aid, raw sugar, sales aid, sugar industry, tariff preference

L 205/18

EN

Official Journal of the European Communities

31.7.2001

COMMISSION REGULATION (EC) No 1554/2001

of 30 July 2001

laying down detailed rules for the application of Council Regulation (EC) No 1260/2001 as regards
marketing sugar produced in the French overseas departments and equalising the price conditions
with preferential raw sugar

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1260/2001 of 19
June 2001 on the common organisation of the markets in the
sugar sector (1), and in particular Article 7(5) thereof,

Whereas:

(1)

(2)

(3)

Article 7(4) of Regulation (EC) No 1260/2001 provides
for flat-rate Community aid for sugar produced in the
French overseas departments to be marketed in the
European regions of the Community. The aid is for raw
sugar produced in the French overseas departments to
be refined in a refinery situated in the European regions
of the Community and to be transported to the Euro-
pean regions of the Community or, where necessary, to
be stored in those departments.

The aid for refining in Community refineries is intended
to provide those refineries with sugar produced in the
French overseas departments at the same price as prefer-
ential sugar.

the specific features of ports, sugar

The sea transport costs depend principally on the size of
the vessels, which in turn is determined by the depth of
water in the ports of loading in the French overseas
departments. Experience has shown that precisely on
account of
is
frequently transported from some of these departments
to the Community in vessels with a net registered
tonnage of less than 20 000 tonnes, whereas the Carib-
bean-United Kingdom freight element is established on
the basis of vessels with a net registered tonnage of
between 25 000 tonnes and 30 000 tonnes. The freight
costs borne by operators may therefore be dispropor-
tionate to the freight element established on a flat-rate
basis. The detailed rules for applying the flat
rate
amount should therefore provide for the possibility of
adjusting the Caribbean-United Kingdom freight element
when the size of the vessels used so warrants.

(4)

Article 5(4) of Protocol 3 on ACP sugar appearing in the
ACP-EC Partnership Agreement (2) stipulates that
the
guaranteed price refers to unpacked sugar, cif European
ports of
fixed for standard quality
sugar. When the yield of preferential sugar differs from

the Community,

(1) OJ L 178, 30.6.2001, p. 1.
(2) OJ L 317, 15.12.2000, p. 3.

(5)

(6)

(7)

(8)

(9)

the scale of

the yield of standard quality,
increases
applied is that practised in international trade, which
differs from the scale provided for the same purpose
under Community rules for raw sugar produced in the
Community. To equalise the price conditions between
the two types of raw sugar, the difference resulting from
applying one or other of the two scales should be offset
by a specific transaction in favour of refiners of raw
sugar produced in the French overseas departments.

Aid for refining is warranted only for such quantities of
raw sugar originating in the French overseas depart-
ments as can be refined into white sugar in the Euro-
pean regions of the Community, taking account of avail-
able supplies of such sugar as regularly established in a
Community supply balance for raw sugar.

Since the producers of this sugar do not have large
storage facilities in their factories, all the sugar intended
for disposal to refineries in the Communities is sent
directly after production for storage in port silos. These
producers must therefore advance the cost of trans-
porting the sugar from the factory to the port of
loading. In recent years, the irregularity of consignments
has increased the duration of this advance as the sugar
thereby
has spent
increasing the burden on the producers concerned. It is
therefore justifiable to grant an advance on the final
payment of the aid equal to the amount of the fob
component of the aid. In order to receive the advance
applicants should be required to lodge a security, and
the other conditions to be fulfilled in order for the
advance to be paid, in particular the quantities of sugar
concerned, should be laid down.

in storage in port silos,

longer

Detailed rules for determining weights and sugar yields
should be laid down, particularly where products of this
kind are transported in bulk in the same vessel but on
behalf of several producers.

In general, a considerable period elapses between the
date on which the sugar concerned is loaded and that on
which the arrival formalities are completed enabling the
competent agency to pay the aid. Provision should
therefore be made for advance payments.

Adequate measures should be laid down for checks on
refined sugar, and refining should be defined for that
purpose.

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Official Journal of the European Communities

L 205/19

(10)

(11)

(12)

The detailed rules laid down in this Regulation replace
those in Commission Regulation (EEC) No 2750/86 of 3
September 1986 laying down detailed rules for the
application of measures for the marketing of sugar
produced in the French overseas departments and
amending for the fourth time Regulation (EEC) No
3016/78 (1), as last amended by Regulation (EC) No
350/1999 (2). That Regulation should therefore be
repealed.

These measures should apply from the start of the 2001/
02 marketing year.

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Sugar,

HAS ADOPTED THIS REGULATION:

Article 1

Flat-rate Community aid shall be granted as an intervention
measure for sugar produced in the French overseas depart-
ments
the
Community.

to be marketed in the European regions of

Article 2

1.
On application to the competent French authorities,
producers of the sugar referred to in Article 1 and delivered to
European ports in the Community shall be granted aid for the
2001/02 marketing year made up of the following compo-
nents:

(a) a flat-rate amount per tonne of sugar expressed as white
sugar to cover the transport costs from the ex-factory stage
to the fob port stage, fixed at:

— EUR 17 per tonne for Reunion and Martinique,

— EUR 24 per tonne for Guadeloupe;

(b) a uniform flat-rate amount to cover the sea transport costs
from the fob port in overseas department stage to the cif
European ports in the Community stage and the connected
insurance costs;

(c) a flat-rate amount per 100 kilograms of

raw sugar
expressed as white sugar held in storage by producers at
the end of each month, fixed at EUR 0,33 per month.

2.
This flat-rate amount referred to in paragraph 1(b) shall
be based on the Caribbean-United Kingdom freight element as
established by the Freight Committee of the United Terminal
Sugar Market Association of London and incorporated in the
London daily price for sugar valid on the date on which the bill
of lading for the sugar concerned is drawn up.

(1) OJ L 253, 5.9.1986, p. 8.
(2) OJ L 44, 18.2.1999, p. 8.

The amount shall be converted into euro at the conversion rate
used to determine the cif price and shall be adjusted on a
flat-rate basis to take account in the insurance costs of the
difference between the value of the sugar on the world market
and its value in the Community. The amount shall then be
multiplied by a coefficient equal to 1,00 divided by the yield of
the sugar concerned.

The adjusted amount shall be determined by the Commission
and notified to the competent French authorities.

3.
The competent French authorities may adjust the amount
referred to in paragraph 1(b) on a flat-rate basis, where the
transport costs borne by the producer exceed that
actual
amount because the vessels used have a net registered tonnage
of less than 20 000 tonnes.

shall be equivalent

The adjustment for each month and each geographical area
(Antilles/Reunion)
to an amount not
exceeding the average difference recorded for bulk transport
during the 12 months preceding the month of departure of the
sugar from the ports in the French overseas departments
between the actual freight costs for vessels with a net registered
tonnage of less than 20 000 tonnes, established on the basis of
bills of lading, and the Caribbean-to-United Kingdom freight
element referred to in paragraph 1(b).

The adjustment may be increased by no more than 25 % where
the vessels used have a net registered tonnage of less than
7 000 tonnes because of port conditions.

The competent French authorities shall notify the Commission
immediately of the adjustments made, specifying in particular
the number of vessels and the amounts concerned, and shall
forward the relevant supporting documents.

Article 3

1.
The aid referred to in Article 2 shall apply to the accepted
arrival weight expressed as white sugar in accordance with the
yield formula referred to in Article 4.

Where transport in bulk does not permit individual lots to be
identified, the average yield of the whole cargo shall be applied
to all the sugar concerned.

The aid referred to in Article 2 shall be paid on presenta-

2.
tion, by the producer concerned, of:

(a) any proof recognised by the Member State concerned that
the sugar concerned has entered the European regions of
the Community, and

(b) the bill of lading, the analysis results and the definitive

invoice.

The analyses shall be carried out at the unloading stage by lots
of 250 tonnes on the whole cargo by a laboratory approved by
the Member State into whose torritory the sugar has been
introduced.

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Official Journal of the European Communities

31.7.2001

A payment in advance may be made equal to 90 % of the
3.
amount determined on the basis of the weight as stated in the
provisional invoice and expressed as white sugar on the basis
of a flat-rate yield of 96 %.

Applications for payment in advance shall be made by the
producers concerned and shall be accompanied by the bill of
invoice.
lading and the provisional

4. Without prejudice to paragraph 2, an initial advance
payment may be made equal to the component of the aid
referred to Article 2(1)(a), on application by the producer or
producers of the raw sugar concerned. This initial advance shall
be treated as a down payment on the advance provided for in
paragraph 3.

The first advance on payment shall be calculated on the basis
of the weight recorded in the silo at the port of loading by the
competent French authorities or persons acting under their
responsibility, and expressed as white sugar on the basis of a
flat-rate yield of 96 %.

At the time of submission of applications as referred to in the
first subparagraph, a security shall be lodged corresponding to
the amount of the advance requested. The security shall be
released for the quantities for which the final payment of the
total aid referred to in Article 2(1)(a) and (b)
is made in
accordance with paragraph 1.

The applicant shall have the choice of providing the security in
cash or in the form of a guarantee by an institution meeting
the criteria laid down by France.

The part of the security or the security which is not released
shall be forfeit for the quantity of sugar for which the corre-
sponding obligations have not been fulfilled.

Article 4

1.
In the case of sugar as referred to in Article 1 which has
been refined in a refinery in the European regions of the
Community, aid shall be granted to the refineries concerned for
every tenth of a percent of yield in excess of 92 %, of an
amount equal to 0,0387 % of the intervention price for raw
sugar for the marketing year during which refining takes place.

Paragraph 1 shall apply up to a ceiling in quantity to be
2.
determined according to the regions in the Community where
refining may be carried out.

The quantities referred to in the first subparagraph shall be
determined in accordance with the procedure referred to in
Article 42(2) of Regulation (EC) No 1260/2001 on the basis of
a Community supply balance for raw sugar and for the refining
of such sugar in the European regions of the Community
concerned.

3.
The total amount of the aid referred to in paragraph 1
shall be granted on application by the undertakings which have
refined the sugar concerned to the competent authorities of the
Member State in whose territory the refining took place.

Article 5

Applications for the aid referred to in Article 4 shall be accom-
panied by proof acceptable to the Member State concerned that
the refined sugar was obtained from raw sugar produced in the
French overseas departments. For this purpose, and at the
request of
the raw sugar
concerned shall be placed under customs control or under
another administrative control offering the same guarantees.

the interested party concerned,

For the purpose of granting this aid ‘refining’ means the
conversion of raw sugar as defined in Article 1(2)(b) of Regula-
tion (EC) No 1260/2001 into white sugar as defined in Article
1(2)(a) of that Regulation.

Article 6

The Member States concerned shall notify the Commission, for
each month, and within two months following the month
concerned, of the quantities, expressed as white sugar,
for
which aid has been granted under Articles 2 and 4, respec-
tively, and the amounts of aid corresponding to those quant-
ities.

Article 7

Regulation (EEC) No 2750/86 is hereby repealed.

Article 8

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

It shall apply from 1 July 2001.

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

Done at Brussels, 30 July 2001.

For the Commission

Frederik BOLKESTEIN

Member of the Commission