Commission Regulation (EC) No 38/2004 of 9 January 2004 amending Regulation (EC) No 314/2002 laying down detailed rules for the application of the quota system in the sugar sector
Date: 2004-01-09
Institutions: European Commission
Subjects: common organisation of markets, production quota, sugar, syrup

10.1.2004

EN

Official Journal of the European Union

L 6/13

COMMISSION REGULATION (EC) No 38/2004

of 9 January 2004

amending Regulation (EC) No 314/2002 laying down detailed rules for the application of the quota
system in the sugar sector

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1260/2001 on
the common organisation of the markets in the sugar sector (1),
and in particular Articles 13(3), 14(4), 15(8), 16(5), 18(5) and
20(2) and the second paragraph of Article 41 thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

Both yeast and alcohol production use sugar industry
products and by-products that do not form part of the
finished product but are needed for the fermentation
process by which it is made.

The recently increasing demand from alcohol producers
for molasses has meant
less high quality beet
that
molasses has been available to yeast producers and that
it is of increasing interest to them to use sugar syrups.
Use of these in turn means a marked reduction in envir-
onmental pollution caused by using molasses in making
yeast.

Commission Regulation (EC) No 314/2002 (2) stipulates
that invert sugar and syrups processed into alcohol or
rum are excluded from calculation of sugar production
for the purposes of Articles 13 to 18 of Regulation (EC)
No 1260/2001.

In order to treat yeast producers fairly the above provi-
sion should be extended to cover syrups processed into
live yeast.

To prevent any misuse of the production quota system,
arrangements should be introduced for supervising both
enterprises allocated sugar production quotas and those
processing sugar into alcohol, rum or yeast. Official
approval of processing enterprises should be required
and prior declaration of deliveries
from enterprises
assigned quotas should be required so that the authori-
ties of the Member States can check on quantities. These
arrangements should also apply to syrups for spreading
and syrups to be processed into ‘Rinse appelstroop’,

which, under Article 1(2)(h) of Regulation (EC) No 314/
2002, are excluded from calculation of sugar production
for the purposes of Articles 13 to 18 of Regulation (EC)
No 1260/2001. To give the authorities time to introduce
management and inspection measures, the new provi-
sions should apply from 1 February 2004.

To allow monitoring of use of invert sugar and syrups
and of the corresponding production of alcohol, rum,
yeast, syrups for spreading and ‘Rinse appelstroop’,
Member States should notify the Commission of the
quantities used and produced.

In the third subparagraph of Article 4b(3) of Regulation
(EC) No 314/2002 a distinction should be made between
isoglucose expressed as dry matter and
quantities of
quantities of
inulin syrup expressed as white sugar
equivalent.

In Article 6(5)(c) of Regulation (EC) No 314/2002
concerning export obligations to be fulfilled during the
current marketing year (within the meaning of Article
15(1)(d) of Regulation (EC) No 1260/2001) the words
‘such quantities being spread evenly over the marketing
year’ are unnecessary and should for clarity be removed.

(6)

(7)

(8)

(9)

Regulation (EC) No 314/2002 should be amended
accordingly.

(10)

The Management Committee for Sugar has not delivered
an opinion within the time limit set by its chairman,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 314/2002 is amended as follows:

1.

in Article 1(2) point (f) is replaced by:

(1) OJ L 178, 30.6.2001, p. 1. Regulation as last amended by Commis-
sion Regulation (EC) No 2196/2003 (OJ L 328, 17.12.2003, p. 26).
(2) OJ L 50, 21.2.2002, p. 40. Regulation as amended by Regulation

(EC) No 1140/2003 (OJ L 160, 28.6.2003, p. 33).

‘(f) quantities of

invert sugar and syrups processed into
alcohol or rum and quantities of syrups used in making
live yeast;’

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Official Journal of the European Union

10.1.2004

2. the following Article 1a is added:

‘Article 1a

The checks shall cover at least 10 % of the invert sugar and
syrups. Should irregularities or anomalies be found,
the
Member States shall increase the check percentage according
to the gravity of the findings.

1.
Only quantities used by undertakings approved by the
competent authorities of the Member States shall count for
the purposes of Article 1(2)(f) and (h).

These authorities shall grant approval on request to under-
takings producing alcohol, rum, yeast, syrups for spreading
and “Rinse appelstroop” which agree to:

(a) keep separate daily stock records for the raw materials
and processed products indicated at Article 1(2)(f) and
(h);

(b) provide on request by these authorities any information
or supporting documents needed for checking the origin
and use made of the raw materials indicated at (a);

(c) allow these authorities to make appropriate administra-

tive and physical checks.

2.
For the purposes of application of Article 1(2)(f) and
(h) undertakings assigned quotas shall before making deliv-
eries declare to the competent authorities of the Member
States concerned:

(a) the nature and quantity of the products to be delivered,

in both net weight and in white sugar equivalent;

4.
At the end of each marketing year Member States shall
determine for each undertaking assigned quotas and each
approved undertaking the relevant quantities of syrup and
invert sugar and the corresponding production of alcohol,
rum, yeast, syrups for spreading and “Rinse appelstroop”.

Approval shall be withdrawn, for the marketing year
5.
in progress and the following one,
from any enterprise
failing to observe the terms of approval. A fresh application
for approval must subsequently be made.

Before 5 September each year Member States shall

6.
notify to the Commission for the previous marketing year:

(a) the total quantities, expressed as white sugar equivalent,
sugar and syrups and the corresponding

of
invert
production of:

— alcohol, expressed as pure alcohol, broken down by

fuel alcohol, rum and other alcohol,

— live yeasts, expressed as pressed yeasts, and

— syrups for spreading and “Rinse appelstroop”.

(b) particulars of the approved processor and the location
at which the products delivered are to be processed

(b) the findings from checks made under paragraph 3 and

the action taken on these;

(c) the timetable of deliveries to the processing location.

(c) cases of withdrawal of approval under paragraph 5.’;

additional

requirements

The competent authorities of the Member States shall
3.
if necessary set
for granting
approval as indicated in the second subparagraph of para-
graph 1 and additional requirements in connection with the
declarations indicated in paragraph 2 such as the date by
which they are to be made and their period of validity. They
shall make administrative and physical checks on the origin
and processing of these deliveries.

Using risk analysis they shall each marketing year make
unannounced physical on-the-spot checks.

The risk analysis shall use, inter alia:

(a) findings from checks made in previous years;

(b) changes from the previous year;

(c) processed product yield from the raw material.

3.

in the first subparagraph of Article 4b(3) the opening words
are replaced by:

‘Each undertaking to which a production quota has been
granted for isoglucose or inulin syrup shall notify to the
competent authority of the Member State in which produc-
tion took place, before 1 August, the quantities of isoglu-
cose (expressed as dry matter) and of inulin syrup (expressed
as white sugar equivalent) owned by it and stored in free
circulation on Community territory at
the
previous marketing year, broken down as follows:’;

the end of

4.

in the first paragraph of Article 6(5), point (c) is replaced
by:

‘(c) all foreseeable exports of sugar,

isoglucose and inulin
syrup in the form of processed products with export
refunds or export levies fixed for that purpose during
that marketing year.’

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Official Journal of the European Union

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

Points 1 and 2 in Article 1 shall apply from 1 February 2004.

Article 2

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

Done at Brussels, 9 January 2004.

For the Commission

Franz FISCHLER

Member of the Commission