Commission Regulation (EC) No 60/2004 of 14 January 2004 laying down transitional measures in the sugar sector by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia
Date: 2004-01-14
Institutions: European Commission
Subjects: Cyprus, Czechia, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, common commercial policy, common organisation of markets, sugar industry, transitional period (EU)

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COMMISSION REGULATION (EC) No 60/2004

of 14 January 2004

laying down transitional measures in the sugar sector by reason of the accession of the Czech
Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(3)

Having regard to the Treaty establishing the European
Community,

Having regard to the Treaty of Accession of
the Czech
Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta,
Poland, Slovenia and Slovakia, and in particular Article 2(3)
thereof,

Having regard to the Act of Accession of the Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland,
Slovenia and Slovakia, and in particular the first subparagraph
of Article 41 thereof,

Whereas:

(1)

(2)

The rules concerning production and trade arrangements
for the sugar market inserted in Council Regulation (EC)
No 1260/2001 of 19 June 2001 on the common organi-
sation of the markets in the sugar sector (1) by the Act of
Accession of the Czech Republic, Estonia, Cyprus, Latvia,
Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia
(hereinafter referred to as the Act of Accession), will be
applicable as from 1 May 2004, which is two months
before the expiry of the marketing year 2003/2004.
Transitional measures are therefore required to change
over from the production and trade arrangements in
force in the Czech Republic, Estonia, Cyprus, Latvia,
Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia
(hereinafter referred to as the new Member States) to
those provided for in Regulation (EC) No 1260/2001.

For the marketing year 2003/2004,
the entire sugar
production of the new Member States is produced under
national arrangements, and the main quantities of their
production will be disposed of before 1 May 2004.
Consequently,
inter-profes-
the provisions on prices,
sional agreements and self-financing provided for in
Articles 2 to 6 and 10 to 21 of Regulation (EC) No
1260/2001 should not apply before 1 July 2004. The
non application of the self-financing arrangements and
the provision on prices to sugar produced before 1 July
2004 means
refund arrangement
provided for in Articles 27 to 31 of Regulation (EC) No
1260/2001 and the intervention and production refund
arrangements provided for in Articles 7, 8 and 9 of that
Regulation should not apply before 1 July 2004.

export

that

the

(4)

(5)

(6)

In the case of isoglucose, production is steady and in
keeping with demand and it is therefore necessary to
determine an appropriate share of the basic isoglucose
quantities defined for the new Member States producing
isoglucose in order to facilitate the transition and to
ensure the balance between production and consump-
for the
tion in the enlarged Community. However,
purposes of ensuring the same treatment for isoglucose
and sugar, Articles 2 to 21 and 27 to 31 of Regulation
(EC) No 1260/2001 should only become applicable to
isoglucose in the new Member States from 1 July 2004.

The Act of Accession defines a maximum supply need
the sugar-producing undertaking in Slovenia of
for
19 585 tonnes. In order to guarantee the supply of that
undertaking with raw sugar for refining between 1 May
and 30 June 2004, an appropriate
the
maximum supply need should be determined for that
period.

share of

There is a considerable risk of disruption on the markets
in the sugar sector by products being introduced into
the new Member States before their accession for specu-
lation purposes. Provisions facilitating the transition
should therefore be made to avoid such speculative
movements in view of the accession of the new Member
States. Similar provisions have already been taken in
respect of trade in agricultural products on account of
the accession of the Czech Republic, Estonia, Cyprus,
Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and
Slovakia by Regulation (EC) No 1972/2003 (2). Separate
rules are necessary in order to take into account the
particularities of the sugar sector.

free

Chapter 5 of Annex IV to the Act of Accession foresees
that goods which are under different types of suspensive
regime on the date of accession are exempted from
customs duties when released for
circulation
provided that certain circumstances are complied with.
However, in the sugar sector there is a high risk that this
possibility will be used for speculative purposes. In addi-
tion, it would allow operators to circumvent the obliga-
tion laid down in this regulation to eliminate from the
market at their expense the quantities of surplus sugar
or isoglucose identified by the authorities of the new
member States or to pay charges of the proof of elimina-
tion of these quantities cannot be provided. Products
which present such a risk should therefore be subject to
import duties on the date of release for free circulation.

(1) OJ L 178, 30.6.2001, p. 1. Regulation as last amended by the Act

of Accession.

(2) OJ L 293, 11.11.2003, p. 3.

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(7)

(8)

(9)

sugar or

the expense of

Furthermore, and in accordance with the Act of Acces-
sion, quantities of
isoglucose
stocks of
exceeding the normal carry-over stock should be elimi-
nated from the market at
the new
Member States. Determination of the surplus stocks will
be carried out by the Commission on the basis of trade
developments, production and consumption trends in
the new Member States during the period of 1 May
2000 to 30 April 2004. For this procedure, besides
sugar and isoglucose, other products with a significant
sugar equivalent content should be also considered as
they could also be possible targets of speculation. In case
the determined surplus quantity of sugar and isoglucose
is not eliminated from the Community market by 30
the new Member State
April 2005 at
concerned will be made financially responsible for the
relevant quantity. The amount to be charged for a new
Member State and payable for the Community budget in
case of non elimination of surplus stocks should be the
highest export refund applicable during the period of 1
May 2004 and 30 April 2005.

the latest,

It is the interest of both the Community and the new
Member States to preferably prevent the accumulation of
surplus stocks and in any case be able to identify those
operators or individuals involved in major speculative
trade movements. For that purpose new Member States
should dispose of a system on 1 May 2004 that enables
them to identify those responsible for such develop-
ments.

For the determination of surplus stocks and the elimina-
identified surplus stocks new Member States
tion of
should provide for the Commission most recent statistics
of trade, production and consumption of the products
considered, as well as proof of elimination from market
of the identified surplus stocks by the set deadline.

Article 2

Isoglucose quotas

For the period from 1 May 2004 to 30 June 2004, the basic
quantities of A and B isoglucose for the new Member States
producing isoglucose shall be as follows:

Hungary

Poland

Slovakia

Basic quantity A
in tonnes of dry
matter

Basic quantity B
in tonnes of dry
matter

21 271

1 667

4 152

6 254

312

837

Article 3

Preferential import of cane sugar

In order to cover its demand for the refining of raw cane sugar
for the period from 1 May 2004 to 30 June 2004, Slovenia is
authorised to issue licences during that period for ‘special
preferential sugar’ within the limit of 3 264 tonnes, expressed
in white sugar equivalent and under the conditions provided
for in Commission Regulation (EC) No 1159/2003 (1).

SECTION 2

TRANSITIONAL MEASURES TO AVOID SPECULATION

(10)

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

Article 4

Definitions

HAS ADOPTED THIS REGULATION:

SECTION 1

TRANSITIONAL MEASURES IN VIEW OF ACCESSION

Article 1

Applicability of certain provisions of Regulation (EC) No
1260/2001

Articles 2 to 21 and 27 to 31 of Regulation (EC) No 1260/
2001 shall not apply from 1 May 2004 to 30 June 2004 to the
Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary,
Malta, Poland, Slovenia and Slovakia (hereinafter referred to as
the new Member States).

For the purposes of this Section, the following definitions shall
apply:

1.

‘Sugar’ means:

(a) beet sugar and cane sugar, in solid form, falling within

CN code 1701;

(b) sugar

syrup falling within CN codes 1702 60 95,

1702 90 99 and 2106 90 59;

(c) inulin syrup falling within CN codes 1702 60 80 and

1702 90 80;

2.

3.

‘Isoglucose’ means the product
falling within CN codes
1702 30 10, 1702 40 10, 1702 60 10, 1702 90 30 and
2106 90 30;

‘Processed products’ means products having an added sugar/
sugar equivalent content exceeding 10 %, which have
resulted from the processing of agricultural products;

4.

‘Fructose’ means chemically pure fructose under CN code
1702 50 00.

(1) OJ L 162, 1.7.2003, p. 25.

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Article 5

(b) they are released for free circulation on or after 1 May

2004.

Suspensive regime

1.
By way of derogation from Chapter 5 of Annex IV to the
Act of Accession and from Articles 20 and 214 of Council
Regulation (EEC) No 2913/92 (1), products falling within CN
codes 1701, 1702, 1704, 1904, 1905, 2006, 2007, 2009,
2101 12 92, 2101 20 92, 2105 and 2202 except those listed
in Article 4(5) of Commission Regulation (EC) No 1972/2003,
shall be subjected to the erga omnes import duty rate,
including any additional import duty applicable on the date of
release for free circulation, provided that:

(a) before 1 May 2004, they have been in free circulation in
the Community as constituted on 30 April 2004 or in a
new Member State and;

(b) on 1 May 2004, they are:

(i) in temporary storage, or

(ii) under one of the customs treatments or procedures
referred to in Article 4(15)(b) and Article 4(16)(b) to
(g) of Regulation (EEC) No 2913/92 in the Community,
or

(iii) in transport after having been subject to export formal-

ities within the enlarged Community.

1702 40 10,

This first subparagraph shall not apply to products, with the
exception of refined beet C sugar, C isoglucose syrup and C
inulin syrup falling within CN codes 1701 99 10, 1701 99 90,
1702 30 10,
1702 90 30,
1702 60 80 and 1702 90 80 respectively, exported from the
Community of Fifteen if the importer gives evidence that no
export refund has been sought for the products of the country
of export. Upon the importer's request,
the exporter shall
arrange to obtain an endorsement by the competent authority
on the export declaration that an export refund has not been
sought for the products of the country of export.

1702 60 10,

2.
By way of derogation from Chapter 5 of Annex IV to the
Act of Accession and from Articles 20 and 214 of Regulation
(EEC) No 2913/92, products falling within CN codes 1701,
1702, 1704, 1904, 1905, 2006, 2007, 2009, 2101 12 92,
2101 20 92, 2105 and 2202 except those listed in Article 4(5)
of Regulation (EC) No 1972/2003, coming from third countries
shall be subjected to the import duty, including any additional
import duty, applicable on the date of release for free circula-
tion, provided that:

Article 6

Abnormal stocks

The Commission determines by 31 October 2004 at the
1.
latest, for each new Member State,
in accordance with the
procedure referred to in Article 42(2) of Regulation (EC) No
1260/2001, the quantity of sugar as such or in processed
products,
isoglucose and fructose exceeding the quantity
considered as being normal carry-over stock at 1 May 2004
and which has to be eliminated from the market at the expense
of the new Member States.

To determine this surplus quantity, account is in particular
taken of the development during the year preceding accession
in relation to the previous years of:

(a) imported and exported quantities of sugar as such or in

processed products, isoglucose and fructose;

(b) production, consumption and stocks of sugar and isoglu-

cose;

(c) the circumstances in which stocks were built up.

2.
The new Member State concerned ensures the elimination
from the market of a quantity of sugar or isoglucose, without
Community intervention, equal to the surplus quantity referred
to in paragraph 1, by 30 April 2005 the latest:

(a) by export without refund from the Community;

(b) by use in the sector of combustibles;

(c) by denaturation without aid for animal feed in accordance
with Titles III and IV of Commission Regulation (EEC) No
100/72 (2).

3.
For the application of paragraph 2, the competent autho-
rities of the new Member States shall dispose on 1 May 2004
of a system for the identification of traded or produced surplus
quantities of sugar as such or in processed products, isoglucose
or fructose, at the level of the main operators concerned. That
system may in particular rely on import tracking, fiscal moni-
toring, surveys based on operators' accounts and physical
stocks, and include measures such as risk guarantees. The
system of identification shall be based on risk assessment that
takes due account in particular of the following criteria:

— type of activity of the operators concerned,

(a) they are under inward processing referred to in Article
4(16)(d) or temporary admission referred to in Article
4(16)(f) of Regulation (EEC) No 2913/92 in a new Member
State on 1 May 2004;

— capacity of storage facilities,

— level of activities.

(1) OJ L 302, 19.10.1992, p. 1.

(2) OJ L 12, 15.1.1972, p. 15.

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The new Member State shall use that system to compel the
operators concerned to eliminate from the market at their own
expense an equivalent quantity of sugar or isoglucose of their
determined
operators
concerned shall provide the proof, to the satisfaction of the
new Member State, that products were eliminated from the
market by 30 April 2005 at the latest.

individual

quantity.

surplus

The

In case such proof is not provided, the new Member State shall
charge an amount equal to the quantity in question multiplied
by the highest
import charges applicable to the product
concerned during the period from 1 May 2004 to 30 April
2005,
increased by EUR 1,21/100 kg in white sugar or dry
matter equivalent.

The amount referred to in the third subparagraph shall be
assigned to the national budget of the new Member State.

4. When the sugar or isoglucose is eliminated in accordance
with paragraph 2(a), the operators concerned shall provide the
proof of export by 31 July 2005 at the latest by the presenta-
tion of:

(a) export

licences issued in accordance with Commission
Regulations (EC) No 1291/2000 (1) and (EC) No 1464/
95 (2).

(b) relevant documents referred to in Articles 32 and 33 of
Regulation (EC) No 1291/2000 necessary for the release of
the guarantee.

the surplus quantity,

In case the proof of elimination from the market is not
2.
provided in accordance with paragraph 1, for a part or the
totality of
the new Member State is
charged an amount equal to the quantity not eliminated multi-
plied by the highest export refunds applicable to white sugar
falling within CN code 1701 99 10 during the period from 1
May 2004 to 30 April 2005. This amount will be assigned to
the Community budget by 30 November 2005 at the latest and
will be taken into account for the calculation of the production
levies for the marketing year 2004/2005.

Article 8

Control

The new Member States shall

1.
the necessary
measures for the application of this Section and establish in
particular the control procedures which prove necessary for the
elimination of the surplus quantity referred to in Article 6(1).

take all

The new Member States communicate to the Commission

2.
by 31 July 2004 at the latest:

(a) information on the system established for the identification
of surplus quantities referred to in the first subparagraph of
Article 6(3);

(b) quantities of sugar,

isoglucose,

fructose and processed
products imported and exported monthly for the period
from 1 May 2000 to 30 April 2004, communicated sepa-
rately for imports and exports to the Community as consti-
tuted on 30 April 2004, the new Member States and third
countries;

The export licence referred to in (a) shall be valid from the date
of its issue until 1 May 2005.

Article 7

Proof of elimination by new Member States

1.
By 31 July 2005 at the latest, the new Member States
shall provide proof to the Commission, that the surplus quan-
tity referred to in Article 6 (1) was eliminated from the market
in accordance with Article 6(2) and specify for each method
the quantity eliminated.

(1) OJ L 152, 24.6.2000, p. 1.
(2) OJ L 144, 28.6.1995, p. 14.

(c) for the period from 1 May 2000 to 30 April 2004, the
quantities of
sugar and isoglucose produced annually,
broken down, as the case may be, by production under
quota and out of quota, and consumed annually;

(d) for the period from 1 May 2000 to 1 May 2004, the stocks

of sugar and isoglucose held on 1 May of each year.

SECTION 3

FINAL PROVISION

Article 9

Entry into force

This Regulation shall enter into force on 1 May 2004, subject
to the entry into force of the Treaty of Accession of the Czech
Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta,
Poland, Slovenia and Slovakia.

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

Done at Brussels, 14 January 2004.

For the Commission

Franz FISCHLER

Member of the Commission