European Parliament legislative resolution on the proposal for a Council regulation on the common organisation of the markets in the sugar sector (COM(2005)0263 - C6-0243/2005 - 2005/0118(CNS))
Date: 2006-01-19
Institutions: Committee on Agriculture and Rural Development, European Parliament
Subjects: EU financing, aid to agriculture, common organisation of markets, industrial restructuring, production quota, production refund, reference price, sugar industry, surveillance concerning imports

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P6_TA(2006)0023

Common organisation of the market in sugar *

European Parliament legislative resolution on the proposal for a Council regulation on the
common organisation of the markets in the sugar sector (COM(2005)0263 — C6-0243/2005 —
2005/0118(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the Commission proposal to the Council (COM(2005)0263) (1),

— having regard to Articles 36 and 37 of the EC Treaty, pursuant to which the Council consulted Parlia-

ment (C6-0243/2005),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Agriculture and Rural Development and the opinions
of the Committee on Development, the Committee on Budgets, the Committee on Budgetary Control
and the Committee on International Trade (A6-0391/2005),

1. Approves the Commission proposal as amended;

2. Records that the appropriations shown in the proposal for a regulation are for guidance only until
such time as an agreement has been reached on the financial perspective for the period covering 2007
onwards;

3. Asks the Commission, once the next financial perspective has been adopted, to confirm the amounts
shown in the proposal for a regulation or, where appropriate, to submit the adjusted amounts for the
approval of the European Parliament and the Council, thereby ensuring compatibility with the relevant ceil-
ings;

4. Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

5. Considers it unacceptable that the Council should have announced a political agreement on sugar
reform, with far-reaching implications for the future of the industry in many Member States, without first
having obtained the opinion of the European Parliament; the Council may never conclude a final political
agreement before consultation of the European Parliament has been completed;

6. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

7. Asks the Council to consult Parliament again if it intends to amend the Commission proposal substan-
tially;

8.

Instructs its President to forward its position to the Council and Commission.

(1) Not yet published in OJ.

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AMENDMENTS
BY PARLIAMENT

Amendment 1

Recital 2

(2)
The sugar market in the Community is based on princi-
ples which for other common market organisations have been
substantially reformed in the past. In order to pursue the
objectives set out in Article 33 of the Treaty, and notably in
order to stabilise the markets and to ensure a fair standard of
living for the agricultural community within the sugar sector,
it is necessary to fundamentally review the common organisa-
tion of the market in the sugar sector.

(2)
The sugar market in the Community is based on princi-
ples which for other common market organisations have been
reformed in the past. In order to pursue the objectives set out
in Article 33 of the Treaty, and notably in order to stabilise
the markets and to ensure a fair standard of living for the agri-
cultural community within the sugar sector, it is necessary to
introduce modifications to the common organisation of the
market in the sugar sector.

Amendment 2

Recital 3 a (new)

(3a)
The Community sugar market is likely to be particu-
larly volatile for the first four years of the reform (2006 to
2010), whilst the restructuring scheme is put into operation.
The reference price system has not been successful in other
agricultural sectors in either stabilising markets or estab-
lishing a floor price on the market. It is therefore necessary
to retain the intervention price system for the four-year
period from 2006 to 2010, with provision being made,
where necessary, for sugar being bought in by the interven-
tion agencies. To this end, intervention prices should be set
for both white and raw sugar at a level that ensures a fair
income for sugar beet and sugar cane producers, while
protecting the interests of consumers. Such price guarantees
for sugar in practice also benefit sucrose syrups and isoglu-
cose and inuline syrup, the prices of which are dependent on
the price of sugar. As from the marketing year 2010/2011,
a reference price should be established in place of the inter-
vention system.

Amendment 3

Recital 5 a (new)

(5a)
In order to ensure a fair standard of living for beet
producers, a minimum price should be fixed for quota beet
which takes account of the intervention price for white
sugar and the estimated Community yield of 130 kg of
sugar per tonne of standard quality beet.

Amendment 4

Recital 6 a (new)

(6a) As only a small proportion of the reduction in sugar
prices will be passed on to the European consumer (1,5 %
for white sugar, which accounts for 70 % of sugar produc-
tion; 5 % for raw sugar, which accounts for the remaining
30 %), the reference or intervention price and the minimum
price for beet should be established primarily on the basis of
the trends in quantities produced, imports and consumption,
in such a way as to ensure balance on the Community
market.

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Amendment 5

Recital 7

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AMENDMENTS
BY PARLIAMENT

(7)
Specific instruments are needed to ensure a fair balance
of rights and obligations between sugar undertakings and
sugar beet growers. Therefore, standard provisions should be
laid down to govern the contractual relations between buyers
and sellers of sugar beet. The diversity of natural, economic
and technical situations makes it difficult to provide for
uniform purchase terms for sugar beet throughout the Com-
munity. Agreements within the trade already exist between
associations of sugar beet growers and sugar undertakings.
framework provisions should only define the
Therefore,
minimum guarantees required by both sugar beet growers
and the sugar industry to ensure a smooth functioning of
the sugar market with the possibility to derogate from some
rules in the context of an agreement within the trade.

(7)
Specific instruments are needed to ensure a fair balance
of rights and obligations between sugar undertakings and
sugar beet growers. Therefore, standard provisions should be
laid down to govern the contractual relations between buyers
and sellers of sugar beet. If specific economic difficulties arise
for which the framework provisions cannot provide a valid
solution, it should be possible for agreements within the
trade to introduce, following consultation of the Commis-
sion's services, derogations from certain rules provided they
are proportionate and of limited duration.

Amendment 6

Recital 8

The reasons which in the past led the Community to
(8)
adopt a production quota system for sugar,
isoglucose and
inuline syrup still remain valid. However, due to developments
within the Community and internationally, it is necessary to
adjust the production system in order to provide for new
arrangements and reductions of the quotas. In line with the
previous quota system, a Member State should allocate quotas
to the undertakings established within its territory. The new
common organisation of
the markets in the sugar sector
should maintain the legal status of the quotas in so far as,
according to the case-law of the Court of Justice, the system
of quotas constitutes a mechanism for regulating the market
in the sugar sector which aims to ensure the attainment of
public interest objectives.

The reasons which in the past led the Community to
(8)
adopt a production quota system for sugar,
isoglucose and
inuline syrup still remain valid. However, due to developments
within the Community and internationally, it is necessary to
adjust the production system, in particular the quotas, with a
view to ensuring balance on the markets in the sugar sector.
In line with the previous quota system, a Member State should
allocate quotas to the undertakings established within its terri-
tory. The new common organisation of the markets in the
sugar sector should maintain the legal status of the quotas in
so far as, according to the case-law of the Court of Justice, the
system of quotas constitutes a mechanism for regulating the
market in the sugar sector which aims to ensure the attain-
ment of public interest objectives.

Amendment 7

Recital 8 a (new)

(8a)
The introduction by the European Union in 2000 of
a regime based on unlimited zero-duty access to sugar from
the Balkan countries resulted in an unprecedented rise in
imports, due, in particular, to irregular trade practices which
remained undetected for a considerable time. The return to
controlled imports in 2005 has made it possible to block
illegal imports of sugar into the Community and to ensure
balance on the internal market.

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Amendment 8

Recital 8 b (new)

(8b)
There are objective risks that the irregular trade
practices that developed following the opening-up of the
Community market to zero-duty, quota-free sugar imports
from the Balkan countries could reappear with the full entry
into force of the ‘Everything But Arms’ initiative for the
least developed countries (LDCs). If the Community is to
adapt its production quotas in an effective and rational
fashion, it will need suitable regulatory instruments, which
enable it to keep control over the supply of sugar on its
market and to eliminate all irregular trade practices, given
that
the latter disturb the market and unbalance the
Community's production system. Developing countries will
also require substantial assistance so that they can guard
against
these practices and take full advantage of the
‘Everything But Arms’ initiative.

Amendment 9

Recital 8 c (new)

(8c)
In the case of the ‘Everything But Arms’ initiative,
under which the LDCs will be able to import sugar free of
tariffs and quotas, there is some risk of three-way trading,
which would be virtually impossible to detect under reason-
able financial conditions and which could potentially under-
mine the stability of the Community market. This three-way
trading might also threaten development itself in the LDCs,
since it would benefit only the major international operators,
whilst having no positive effect on the local communities
dependent on sugar production. Given that many developing
countries are in fact dependent on sugar under purely
export-oriented production regimes, it is crucial to ensure
that the threat of three-way trading does not hinder devel-
oping countries' access to EU markets.

Amendment 10

Recital 9

(9)
Following the recent decisions on export subsidies of
the World Trade Organisation Panel and the Appellate Body
on EU export subsidies for sugar and in order for Com-
munity operators to ensure a smooth change-over from the
previous quota system to the present system, it should be
possible during the marketing year 2006/2007 for sugar
undertakings that produced C sugar in the marketing year
2004/2005 to be allocated an additional quota under condi-
tions that take the lower value of C sugar into account.

deleted

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Amendment 11

Recital 9 a (new)

Thursday, 19 January 2006

AMENDMENTS
BY PARLIAMENT

(9a)
The depletion of oil resources worldwide has led to
an unprecedented rise in the price of crude oil. In this
climate, alcohol production in the sugar sector is a major
asset for the development of alternative energies. Given the
impact of
the common organisation of
markets at production level, it is important to anticipate and
reinforce these trends by opening up prospects for the sugar
sector and clearly including the bioethanol outlet within
production outside the quota.

the reform of

Amendment 78

Recital 9 b (new)

The EU should seek to abolish export subsidies as

(9b)
soon as possible, and at the latest by 2013.

Amendment 12

Recital 10 a (new)

(10b) Undertakings
that are allocated an additional
isoglucose quota should agree in advance to renounce the
subsidy provided for under the temporary scheme for the
restructuring of the sugar industry.

Amendment 13

Recital 11

To ensure that the Community's production of sugar,
(11)
isoglucose and inuline syrup is reduced sufficiently,
the
Commission should be entitled to adjust the quotas to a
sustainable level after the termination of the restructuring
fund in 2010.

(11)
To ensure balance on the Community market if the
situation so warrants the Council should be entitled, on a
proposal from the Commission and after consulting the
European Parliament, to adjust the quotas for sugar, isoglu-
cose and inuline syrup, and to set them at a sustainable level
after the termination of the restructuring fund in 2010.

Amendment 14

Recital 15 a (new)

(15a)
Steps should be taken to ensure that the chemical
and pharmaceutical industries can obtain supplies of sugar
at the world market price.

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Amendment 15

Recital 28 a (new)

(28a)
The rules of origin should be tightened in order to
prevent the acquisition of origin being determined by the
refining process.

Amendment 16

Recital 29

(29)
The Community has several preferential market access
arrangements with third countries which allow those countries
to export cane sugar to the Community under favourable
conditions. Therefore, it is necessary to evaluate refiners' need
for sugar for refining and, under certain conditions, to reserve
import licences to full-time refiners in the Community.

(29)
The Community has several preferential market access
arrangements with third countries which allow those countries
to export cane sugar to the Community under favourable
conditions. Therefore, it is necessary to evaluate refiners' need
for sugar for refining and, under certain conditions, to reserve
import
in the Community.
However, as from the marketing year 2009/2010 import
licences should be issued to other sugar factories as well.

to full-time refiners

licences

Amendment 17

Recital 29 a (new)

Preferential access by LDCs to EU markets in
(29a)
respect of sugar products should be temporarily withdrawn
in cases where their exports to the EU exceed their domestic
production capacity, without regard to sugar products other-
wise disposed of, primarily through domestic consumption
and exports to third countries. The Commission should
information from beneficiary
therefore receive statistical
countries about
sugar production and
consumption, as well as their sugar imports and exports.
These statistics should also include sugar in processed
products.

their domestic

Amendment 18

Recital 29 b (new)

(29b)
Beneficiary countries of the Generalised System of
Preferences should be prohibited from using sugar from
third countries that do not belong to the group of LDCs for
products that they intend to sell to the EU under the prefer-
ential access scheme.

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Amendment 20

Recital 32

Thursday, 19 January 2006

AMENDMENTS
BY PARLIAMENT

(32)
Compliance with the quantity limits should be ensured
by a reliable and effective system of monitoring. To that end,
the granting of export refunds should be made subject to an
export licence. Export refunds should be granted up to the
limits available, depending on the particular situation of each
should be
product
permitted only for processed products not listed in Annex I to
the Treaty, to which volume limits do not apply. Provision
should be made for derogating from strict compliance with
management
rules where exports benefiting from export
refunds are not likely to exceed the quantity laid down.

concerned. Exceptions

to that

rule

(32)
Compliance with the quantity limits should be ensured
by a reliable and effective system of monitoring. To that end,
the granting of both export refunds and non- quota exports
should be made subject to an export licence. Export refunds
should be granted up to the limits available, depending on the
particular situation of each product concerned. Exceptions to
that rule should be permitted only for processed products not
listed in Annex I to the Treaty, to which volume limits do not
apply. Provision should be made for derogating from strict
compliance with management rules where exports benefiting
from export refunds are not likely to exceed the quantity laid
down.

Amendment 21

Recital 34

It is appropriate to provide for measures to be taken
(34)
when a substantial rise or fall in prices disturbs or threatens to
disturb the Community market. These measures may include
the opening of a quota at reduced tariff for imports of sugar
from the world market for the time necessary.

It is appropriate to provide for measures to be taken
(34)
when a substantial rise or fall in prices disturbs or threatens to
disturb the Community market. Should there be a deficit in
these measures may include the
Community production,
opening of a quota at reduced tariff for imports of sugar from
the world market for the time necessary.

Amendment 22

Recital 38

(38)
The characteristics of sugar production in the outer-
most regions of the Community distinguish that production
from sugar production in the rest of the Community. Financial
support should therefore be given to the sector by allocating
resources to farmers in those regions after the entry into force
of the support programmes to assist local production which
Member States draw up under Council Regulation (EC) No …/
2005 of […] laying down specific measures for agriculture in
the outermost regions of the Union.

(38)
The characteristics of sugar production in the outer-
most regions of the Community distinguish that production
from sugar production in the rest of the Community. Financial
support should therefore be given to the sector by allocating
resources to farmers in those regions after the entry into force
of the support programmes to assist local production which
Member States draw up under Council Regulation (EC) No …/
2005 of […] laying down specific measures for agriculture in
the outermost regions of the Union. Provision should also be
made for specific aid schemes for Community areas and
regions facing economic and social hardship.

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Amendment 23

Recital 40

(40)
The change-over from the arrangements in Regulation
(EC) No 1260/2001 to those provided for in this Regulation
could give rise to difficulties which are not dealt with in this
the
Regulation.
Commission should be enabled to adopt transitional measures.

to deal with such difficulties,

In order

(40)
The change-over from the arrangements in Regulation
(EC) No 1260/2001 to those provided for in this Regulation
could give rise to difficulties which are not dealt with in this
Regulation, such as the uncertainty with respect to the
marketing year 2006/2007 in those areas in which autumn
sowing is practiced. In order to deal with such difficulties, the
Commission should be enabled to adopt transitional measures.

Amendment 24

Recital 40 a (new)

In the context of the restructuring of the European
(40a)
sugar industry,
the Council must mobilise the Union's
Structural Funds and all the social cohesion policy instru-
ments, with a view to optimising the management of the
restructuring and encouraging job creation.

Given the extent of the proposed reform, over a short period,
especially in rural areas, and covering various types of
economic activity,
to develop regional
it will be vital
programmes quickly, with the support of the EU's Structural
Funds and of all the social cohesion policy instruments. That
is in line with the objectives of the Lisbon Strategy, the
European Employment Strategy, and the Commission's cohe-
sion guidelines for 2007-2113, and reflects, in particular,
the terms of the Commission communication on restruc-
turing and employment (1).

That communication stresses that the EU should, as a
matter of consistency, assume the costs of the policies it
implements (point 1.1), and draws attention to the need to
make use of all the Community financial instruments avail-
able to the Member States in a complementary and inte-
grated fashion, with a view to managing economic change
and optimising the impact on employment (point 2.1.3).

(1) Commission communication entitled ‘Restructuring and employ-
ment — Anticipating and accompanying restructuring in order
to develop employment:
the European Union’,
the role of
(COM(2005)0120).

Amendment 25

Article 1, paragraph 1 a (new)

The common organisation of markets in the sugar
1a.
sector shall seek to pursue the objectives set out in Article
33 of the Treaty, and notably, to stabilise the markets, to
increase the market orientation of the Community sugar
regime, and to ensure a fair standard of living for the agri-
cultural community within the sugar sector.

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BY PARLIAMENT

Amendment 26

Article 2, point (6 a) (new)

(6a)
‘exported sugar’, ‘exported isoglucose’ and ‘exported
inuline syrup’ mean the quantity of sugar, isoglucose or
inuline syrup exported to third countries during a given
marketing year within the
the agreements
concluded pursuant to Article 300 of the Treaty;

limits of

Amendment 27

Article 2, point (7)

‘surplus sugar’,

(7)
‘surplus isoglucose’ and ‘surplus inuline
syrup’ mean any quantity of sugar, isoglucose or inuline syrup
production attributed to a specific marketing year over and
above the respective quantities referred to in points (5) and
(6);

‘surplus sugar’,

(7)
‘surplus isoglucose’ and ‘surplus inuline
syrup’ mean any quantity of sugar, isoglucose or inuline syrup
production attributed to a specific marketing year over and
above the respective quantities referred to in points (5), (6)
and (6a);

Amendment 28

Article 2, point (11 a) (new)

(11a)
‘Preferential sugar originating from the least devel-
oped countries (LDCs)’ means sugar produced and exported
by a particular LDC in excess of its consumption as notified
to the International Sugar Organisation.

Amendment 29

Article 2 a (new)

Article 2a

Price system

1. During the marketing years 2006/2007, 2007/2008,
2008/2009 and 2009/2010, an intervention system based
on an intervention price shall be established in accordance
with the procedures laid down in Article 17a.

2.
As from the marketing year 2010/2011, the interven-
tion system shall be replaced by a system based on a refer-
ence price.

Amendment 30

Article 3

Reference price

Reference or intervention price

1.

For white sugar, the reference price shall be:

For white sugar, the reference or intervention price shall

1.
be:

(a) 631,9 Euro per tonne for the marketing year 2006/2007;

(a) 631,9 Euro per tonne for the marketing year 2006/2007;

(b) 476,5 Euro per tonne for the marketing year 2007/2008;

(b) 571,2 Euro per tonne for the marketing year 2007/2008;

(c) 449,9 Euro per tonne for the marketing year 2008/2009;

(c) 525,8 Euro per tonne for the marketing year 2008/2009;

(d) 385,5 Euro per
2009/2010.

tonne as

from the marketing year

(d) 442,3 Euro per
2009/2010;

tonne as

from the marketing year

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2.

For raw sugar, the reference price shall be:

For raw sugar, the reference or intervention price shall

2.
be:

(a) 496,8 Euro per tonne for the marketing year 2006/2007;

(a) 496,8 Euro per tonne for the marketing year 2006/2007;

(b) 394,9 Euro per tonne for the marketing year 2007/2008;

(b) 496,8 Euro per tonne for the marketing year 2007/2008;

(c) 372,9 Euro per tonne for the marketing year 2008/2009;

(c) 441,2 Euro per tonne for the marketing year 2008/2009;

(d) 319,5 Euro per
2009/2010.

tonne as

from the marketing year

(d) 366,6 Euro per
2009/2010.

tonne as

from the marketing year

The reference prices referred to in paragraphs 1 and 2
3.
shall apply to unpacked sugar, ex-factory,
loaded on to a
means of transport chosen by the purchaser. They shall apply
to white sugar and raw sugar of the standard quality described
in Annex I.

The reference or intervention prices referred to in para-
3.
graphs 1 and 2 shall apply to unpacked sugar, ex-factory,
loaded on to a means of transport chosen by the purchaser.
They shall apply to white sugar and raw sugar of the standard
quality described in Annex I.

Amendment 31

Article 5, paragraph 1

1.

The minimum price for quota beet shall be:

1.

The minimum price for quota beet shall be:

(a) 32,86 Euro per tonne for the marketing year 2006/2007;

(a) 32,86 Euro per tonne for the marketing year 2006/07;

(b) 25,05 Euro per
2007/2008.

tonne as

from the marketing year

(b) 31,6 Euro per tonne as from the marketing year 2007/08;

(ba) 30,6 Euro per tonne as from the marketing year

2008/09;

(bb) 29,4 Euro per tonne as from the marketing year

2009/10.

However, the minimum price for quota beet may be reduced
by a maximum of 10 % by way of an agreement within the
trade.

Amendment 32

Article 5, paragraph 2

2.
The minimum price referred to in paragraph 1 shall
apply to sugar beet of the standard quality described in Annex
I.

2.
The minimum price referred to in paragraph 1 shall
apply to sugar beet of the standard quality described in Annex
I and shall correspond to a yield of 130 kg of quota sugar.

This price shall apply to the ‘delivery to the place of
delivery’ stage.

Amendment 33

Article 5, paragraph 4

For the quantities of sugar beet corresponding to the
4.
industrial sugar or surplus sugar that are
quantities of
subject to the surplus amount provided for in Article 15, the
sugar undertaking concerned shall adjust the purchase price
so that it is at least equal to the minimum price for quota
beet.

4.
For the quantities of sugar beet corresponding to the
quantities of industrial sugar, the sugar undertaking concerned
shall be required to pay at least the price set by agreements
within the trade, bearing in mind the added value of the
sugar concerned, the relationship between the institutional
sugar prices and quota beet after the restructuring period,
and the conventional yield of 130 kg per tonne of beet with
16 % sugar content.

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AMENDMENTS
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Amendment 34

Article 5, paragraph 4 a (new)

4a.
For the surplus quantities of sugar beet, which, as
provided for in Article 15, are subject to levies on surpluses
or which are sold on the Community market free from the
levy on surpluses, the undertaking concerned shall adjust the
purchase price so that it is at least equal to the minimum
price for quota beet.

Amendment 36

Article 8

deleted

Article 8

Additional sugar quota

1.
By 31 July 2006 at the latest, sugar undertakings that
produced C sugar under Regulation (EC) No 1260/2001
during the marketing year 2004/2005 may request from the
Member State where they are established the allocation of
an additional quota for a total as set out in Annex IV. The
additional quotas shall be allocated according to objective
and non discriminatory criteria.

2.
If the demand for additional quotas exceeds the avail-
able national quantity, the Member State concerned shall
provide for a proportional reduction of the quantities to be
allocated.

A one-off amount shall be levied on the additional
3.
quotas that have been allocated to undertakings in accord-
ance with paragraphs 1 and 2. This amount shall be set at
an amount equal to the level of the restructuring aid applic-
able in the marketing year 2006/2007. It shall be collected
per tonne of additional quota allocated.

4.
The totality of the one-off amount paid in accordance
with paragraph 3 shall be charged by the Member State to
the undertakings on its territory that have been allocated an
additional quota.

The payment of the one-off amount by a sugar undertaking
concerned shall be made by a deadline to be determined by
the Member States. The deadline shall not be later than
28 February 2007.

5.
If the sugar undertaking has not paid the one-off
amount before 28 February 2007 the additional quotas shall
not be considered as allocated to the sugar undertaking
concerned.

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Article 9

Additional isoglucose quota

Amendment 37

Article 9

deleted

In the marketing year 2006/2007 an isoglucose quota of
100 000 tonnes is added to the total of the isoglucose quota
fixed in Annex III.
the marketing years
In each of
2007/2008 and 2008/2009 a further isoglucose quota of
100 000 tonnes is added to the quota of the preceding
marketing year.

Member States shall allocate the additional quotas to under-
takings, proportionately to the isoglucose quota that have
been allocated in accordance with Article 7(2).

Amendment 38

Article 10, paragraph 2

the results of

Taking into account

2.
the restructuring
scheme provided for in Council Regulation (EC) No …/2005
(restructuring scheme), the Commission shall decide by the
end of February 2010 at the latest, in accordance with the
procedure referred to in Article 39(2), the common percentage
needed to reduce the existing quotas for sugar, isoglucose and
inuline syrup per Member State or region with a view to
avoid market
imbalances in the marketing years as from
2010/2011.

2. On a proposal
from the Commission and after
consulting the European Parliament, and taking into account
the results of the restructuring scheme provided for in Council
the
Regulation (EC) No …./2005 (restructuring scheme),
Council shall decide by the end of February 2010 at the latest,
in accordance with the procedure referred to in Article 39(2),
the common percentage needed to reduce the existing quotas
for sugar, isoglucose and inuline syrup per Member State or
imbalances in the
region with a view to avoid market
marketing years as from 2010/2011.

Amendment 39

Article 12, point (ca) (new)

ca) exported to third countries, subject to the conditions laid

down in this Regulation.

Amendment 40

Article 12 a (new)

Article 12a

Outlets for sugar surpluses

The Commission shall carry out a study in order to identify
transitional outlets for sugar surpluses for energy use.

Amendment 41

Article 13, paragraph 1, point (a)

(a)

it has been subject to a delivery contract concluded before
the end of the marketing year between a producer and a
user which have both been granted approval under Article
17;

(a)

it has been subject to a delivery contract concluded before
the end of the marketing year between a producer and/or
supplier and a user which have been granted approval
under Article 17;

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AMENDMENTS
BY PARLIAMENT

Amendment 42

Article 13, paragraph 2, point (a)

(a) alcohol, rum, live yeast and ‘Rinse appelstroop’;

(a) alcohol, bioethanol for energy purposes, rum, yeast and

‘Rinse appelstroop’;

Amendment 43

Article 13, paragraph 2, point (b)

(b)

industrial products without sugar content but the proces-
isoglucose or
sing of which uses a quantity of sugar,
inuline syrup higher than 50 % of the weight of the final
product;

(b)

industrial products without sugar content but the proces-
sing of which uses sugar, isoglucose or inuline syrup as
the base product;

Amendment 44

Article 13, paragraph 3, subparagraph 1

3.
A production refund may be granted on the products
listed in Article 1(1)(b) to (e) if surplus sugar, surplus isoglu-
cose or surplus inuline syrup is not available at a price corre-
sponding to the world price for the manufacturing of products
referred to in paragraph 2 points (b) and (c) of this Article.

3.
A production refund shall be granted on the products
listed in Article 1(1)(b) to (e) if surplus sugar, surplus isoglu-
cose or surplus inuline syrup is not available at a price corre-
sponding to the world price for the manufacturing of products
referred to in paragraph 2 points (b) and (c) of this Article.

Amendment 45

Article 13, paragraph 3, subparagraph 3

The production refund shall be fixed taking into account in
particular the costs arising from the use of imported sugar
which the industry would have to bear in the event of supply
on the world market and the price of the surplus sugar avail-
able on the Community market or the reference price if there
is no surplus sugar.

The production refund shall be fixed taking into account in
particular the costs arising from the use of imported sugar
which the industry would have to bear in the event of supply
on the world market and the price of the surplus sugar avail-
able on the Community market or the reference or interven-
tion price if there is no surplus sugar.

Amendment 46

Article 14, paragraph 2, first subparagraph, point (a)

(a)

inform the Member State concerned by 31 January of the
current marketing year at the latest, of the quantities of
sugar, isoglucose or inuline syrup being carried forward;

(a)

inform the Member State concerned by 15 February of
the current marketing year at the latest, of the quantities
of
inuline syrup being carried
forward;

isoglucose or

sugar,

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AMENDMENTS
BY PARLIAMENT

Amendment 47

Article 14, paragraph 2, second subparagraph, introductory wording

However, the date of 31 January referred to in point (a) of
the first subparagraph shall be replaced:

However, the date of 15 February referred to in point (a) of
the first subparagraph shall be replaced:

Amendment 48

Article 14, paragraph 2, second subparagraph, point (b)

(b) for undertakings established in the United Kingdom, by

deleted

15 February;

Amendment 49

Article 15, paragraph 1, point (a)

(a) surplus sugar, surplus isoglucose and surplus inuline syrup
produced during any marketing year, except quantities
carried forward to the quota production of the following
marketing year and stored in accordance with Article 14
or quantities referred to in Article 12(c);

(a) surplus sugar, surplus isoglucose and surplus inuline syrup
produced during any marketing year, except quantities
exported to third countries within the limits of the agree-
ments concluded pursuant to Article 300 of the Treaty,
carried forward to the quota production of the following
marketing year and stored in accordance with Article 14,
referred to in Article 12(c), or the quantities whose export
is permitted as indicated in Article 12(ca);

Amendment 50

Article 15, paragraph 1, point (b)

(b)

sugar,

industrial

industrial
and industrial
inuline syrup for which no proof has been supplied, by a
date to be determined, that it has been processed in one
of the products referred to in Article 13(2);

isoglucose

(b)

sugar,

industrial

isoglucose

industrial
and industrial
inuline syrup for which no proof has been supplied by
the user undertaking, by a date to be determined, that it
has been processed in one of the products referred to in
Article 13(2);

Amendment 51

Article 15, paragraph 1, point (c a) (new)

(ca) surplus sugar, surplus isoglucose and surplus inuline
syrup for which proof of export has not been provided
within the time-limit prescribed.

Amendment 52

Article 15, paragraph 3

The surplus amount paid in accordance with paragraph
3.
1 shall be charged by the Member State to the undertakings
on its territory according to the quantities of production
referred to in paragraph 1 that have been established for the
undertakings for the marketing year concerned.

The surplus amount paid in accordance with paragraph
3.
1 shall be charged by the Member State to the undertakings
on its territory according to the quantities of production
referred to in paragraph 1 that have been established for the
undertakings for the marketing year. Moreover, for the quan-
tities referred to in paragraph 1(b) the surplus amount shall
be charged to the user undertakings.

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AMENDMENTS
BY PARLIAMENT

Amendment 53

Article 16, paragraph 4

4.
Community sugar and inuline syrup undertakings may
require sugar-beet or sugar-cane growers or chicory suppliers
to bear 50 % of the production charge concerned.

4.
In the context of interprofessional agreements, Com-
munity sugar and inuline syrup undertakings may share the
burden of the production charge with sugar-beet or sugar-
cane growers or chicory suppliers. The participation of
sugar-beet or sugar-cane growers or chicory suppliers may
not exceed 50 % of the production charge concerned.

Amendment 54

Article 17 a (new)

Article 17a

Intervention scheme

the

1. During the marketing years 2006/2007, 2007/2008,
2008/2009 and 2009/2010,
intervention agency
appointed by each sugar-producing Member State shall be
in accordance with the procedure referred to in
required,
Article 39(2), to purchase the white sugar and raw sugar
produced under quota and manufactured from sugar beet
and sugar cane harvested in the Community that is offered
to it, subject to prior conclusion of a storage contract
between the seller and the said agency for the sugar in ques-
tion. If the sugar quality differs from the standard quality
for which the intervention price has been fixed, the latter
shall be adjusted by application of bonuses or deductions.

2. During the marketing years 2006/2007, 2007/2008,
2008/2009 and 2009/2010, the intervention agencies shall,
where appropriate, buy at the intervention price valid for
the area in which the sugar is located at the time of
purchase.

3. During the marketing years 2006/2007, 2007/2008,
2008/2009 and 2009/2010, the intervention agencies may
sell sugar only at a price higher than the intervention price.

Amendment 55

Article 19, paragraph 1, subparagraph 1

1.
In order to preserve the structural balance of the market
at a price level which is close to the reference price, taking
into account the obligations of the Community resulting from
agreements concluded in accordance with Article 300 of the
Treaty, a percentage, common to all Member States, of quota
sugar, quota isoglucose and quota inuline syrup may be with-
drawn from the market until the beginning of the following
marketing year.

1.
In order to preserve the structural balance of the market
at a price level which is close to the reference or intervention
price, taking into account the obligations of the Community
resulting from agreements concluded in accordance with
Article 300 of
the Treaty, a percentage, common to all
Member States, of quota sugar, quota isoglucose and quota
inuline syrup may be withdrawn from the market until the
beginning of the following marketing year.

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AMENDMENTS
BY PARLIAMENT

Amendment 56

Article 19, paragraph 3, subparagraph 2, indent 2

– supplementary quota production;

– supplementary quota production up to 105 %;

Amendment 57

Article 25, paragraph 1 a (new)

1a.
Should imports from one of the LDCs exceed the
volumes guaranteeing a net balance between normal internal
production capacity and normal internal consumption in the
the Commission shall suspend such
country concerned,
imports from that country.

Amendment 58

Article 25, paragraph 2, subparagraph 1

If the situation referred to in paragraph 1 arises, the
2.
Commission shall, at the request of a Member State or on its
own initiative, decide upon the necessary measures.

If the situation referred to in paragraph 1 and para-
2.
graph 1a arises, the Commission shall, at the request of a
Member State or on its own initiative, decide upon the neces-
sary measures.

Amendment 59

Article 25 a (new)

Article 25a

Volume of preferential imports

imports
Where Article 18 applies or where preferential
exceed the volume laid down in Article 19, the Commission
shall adopt the measures required to apply Article 27(2) and
(3).

Amendment 60

Article 26, paragraph 3

3.
If the production refund provided for in Article 13(3)
does not guarantee the supply necessary for the manufac-
turing of products referred to in Article 13(2), the Commis-
sion may suspend in whole or in part for certain quantities
the application of import duties on white sugar falling within
CN code 1701 and
falling within codes
isoglucose
1702 30 10, 1702 40 10, 1702 60 10 and 1702 90 30.

3.
If the production refund provided for in Article 13(3)
does not guarantee the supply necessary for the manufac-
turing of products referred to in Article 13(2), the Commis-
sion may suspend the application of import duties on sugar
falling within CN code 1701 and isoglucose falling within
codes
and
1702 90 30.

1702 30 10,

1702 40 10,

1702 60 10

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AMENDMENTS
BY PARLIAMENT

Amendment 61

Article 27 a (new)

Article 27a

Imports from LDCs

1.
Imports of sugar from LDCs shall be subject to duties
under the Common Customs Tariff on the basis of the
existing levels until 1 July 2012. Duties under the Common
Customs Tariff shall be reduced by 20 % on 1 July 2012,
50 % on 1 July 2013 and 80 % on 1 July 2014. As from 1
July 2015 they shall be completely phased out.

Pending the complete phasing-out of duties under the
2.
Common Customs Tariff in accordance with paragraph 1,
for each marketing year a zero-rated global tariff quota
shall be opened for products corresponding to tariff heading
1701 originating in least developed countries. The initial
tariff quota for the marketing year 2006/2007 for products
corresponding to tariff heading 1701 shall be 149 212
tonnes, expressed in white sugar equivalent. For each of the
following marketing years the tariff quota for products
corresponding to heading 1701 shall be raised by 27 % as
compared to the quota for the previous marketing year.

3.
As from the marketing year 2010/2011, should sugar
imports from least developed countries be in excess of the
levels guaranteeing a net balance between internal produc-
tion and consumption in one or more of the countries
concerned, as determined from its declarations to the Inter-
national Sugar Organisation, the Commission may suspend
such imports in accordance with the procedures set out in
Article 25, at the request of a Member State or on its own
initiative.

Amendment 62

Article 28, paragraph 1

1.
Tariff quotas for imports of products listed in Article
1(1) resulting from agreements concluded in accordance with
Article 300 of the Treaty or from any other act of the Council
shall be opened and administered by the Commission under
detailed rules adopted in accordance with the procedure
referred to in Article 39(2) of this Regulation.

1.
Tariff quotas for imports of products listed in Article
1(1) resulting from agreements concluded in accordance with
Article 300 of the Treaty or from any other act of the Council
shall be opened and administered by the Commission under
detailed rules adopted in accordance with the procedure
referred to in Article 39(2) of this Regulation and pursuant to
Articles 308a, 308b and 308c of Commission Regulation
(EEC) No 2454/93 of 2 July 1993 establishing certain
implementing provisions for Council Regulation (EEC) No
2913/92 establishing the Community Customs Code (1).

(1) OJ L 253, 11.10.1993, p. 1. Regulation as last amended by Regu-

lation (EC) No 883/2005 (OJ L 148, 11.6.2005, p. 5).

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BY PARLIAMENT

Amendment 63

Article 28, paragraph 3 a (new)

3a. Where the Commission finds that there is sufficient
evidence of fraud or failure to provide administrative coop-
eration as required for the verification of evidence of origin,
or that there is a massive increase in exports into the Com-
munity above the level of normal production and export
capacity, it may take measures to suspend in whole or in
part the application of tariff quotas for a period of six
months, provided that it has first:

(a) informed the Committee referred to in Article 39(1);

(b) called on the Member States to take such precautionary
measures as are necessary in order to safeguard the
Community's financial interests;

(c) published a notice in the Official Journal of European
Union stating that there are grounds for reasonable
doubts about
tariff
quotas, which call into question the right of the benefi-
ciary country or territory to continue enjoying the bene-
fits of such arrangements.

implementation of

lawful

the

Amendment 64

Article 29, paragraph 2, subparagraph 1

2.
Import licences for sugar for refining shall be issued
only to full-time refiners provided that the concerned quanti-
ties are below the traditional supply need referred to in para-
graph 1. The licences in question shall be issued for 75 % of
the ACP/Indian sugar before being available for any other
sugar. They may be transferred only between full-time refiners
and their validity expires at the end of the marketing year for
which they have been issued.

2.
Import licences for sugar for refining shall be issued
only if the quantities concerned are below the traditional
supply need referred to in paragraph 1. The licences in ques-
tion shall be issued for 75 % of the ACP/Indian sugar before
being available for any other sugar. They may be transferred
only between full-time refiners and their validity expires at the
end of the marketing year for which they have been issued.

Amendment 72/rev.

Article 29, paragraph 2, subparagraph 2

This paragraph shall apply for
the marketing years
2006/2007, 2007/2008 and 2008/2009, and for the first
three months of each of the following marketing years.

In areas where a deficit exists, sugar manufacturers shall be
permitted to carry out refining activities, on a part-time
basis and for imported sugar.

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AMENDMENTS
BY PARLIAMENT

Amendment 66

Article 31 a (new)

Article 31a

Checks on preferential imports

Preferential
imports from the LDCs shall not exceed the
quantities of sugar produced locally and shall be separate
from the volumes required for internal consumption in the
countries concerned.

Amendment 67

Article 40, paragraph 1, point (a)

(a) detailed rules for applying Articles 3 to 6, in particular
those concerning increases and reductions of prices to be
applied for deviations from the standard of the reference
price referred to in Article 3(3) and the minimum price
referred to in Article 5(3);

(a) detailed rules for applying Articles 3 to 6, in particular
those concerning increases and reductions of prices to be
applied for deviations from the standard of the reference
or intervention price referred to in Article 3(3) and the
minimum price referred to in Article 5(3);

Amendment 68

Article 40, paragraph 1, point (c)

(c) detailed rules for applying Articles 13, 14 and 15, and in
particular the conditions for granting production refunds,
the amounts of sugar refunds and eligible quantities;

(c) detailed rules for applying Articles 13, 14 and 15, and in
particular the conditions for the grant of export licences
for non-quota sugar and non-quota isoglucose, the condi-
tions for granting production refunds, the amounts of
sugar refunds and eligible quantities;

Amendment 69

Article 44

In accordance with the procedure referred to in Article 39(2),
transitional measures may be adopted to facilitate the transi-
tion from the
in Regulation (EC)
No 1260/2001 to those established by this Regulation.

rules provided for

rules provided for

In accordance with the procedure referred to in Article 39(2),
transitional measures may be adopted to facilitate the transi-
tion from the
in Regulation (EC)
No 1260/2001 to those established by this Regulation. In par-
ticular, the quotas for the marketing year 2005/2006 shall
be increased in those Member States practising autumn
sowing, in proportion to the volume of sugar produced from
ground beet prior to 30 September 2006. Such sugar beet
shall be subject to the price and regulatory conditions laid
down in Regulation (EC) No 1260/2001.