Council Regulation (EC) No 320/2006 of  20 February 2006  establishing a temporary scheme for the restructuring of the sugar industry in the Community and amending Regulation (EC) No 1290/2005 on the financing of the common agricultural policy
Date: 2006-02-20
Institutions: Council of the European Union
Subjects: EAGGF Guarantee Section, EU financing arrangements, aid for restructuring, product diversification, sugar industry, sugar product

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COUNCIL REGULATION (EC) No 320/2006

of 20 February 2006

establishing a temporary scheme for the restructuring of the sugar industry in the Community and
amending Regulation (EC) No 1290/2005 on the financing of the common agricultural policy

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 36 and the third subparagraph of
Article 37(2) thereof,

Having regard to the proposal from the Commission,

Having regard to the Opinion from the European Parliament (1),

Having regard to the Opinion from the European Economic and
Social Committee (2),

Whereas:

(1)

Due to developments within the Community and at inter-
national level, the sugar industry in the Community is
faced with structural problems which could seriously put
at stake the competitiveness and even the viability of the
industry as a whole. These problems cannot be addressed
effectively by using the market management instruments
as provided for in the common market organisation for
sugar. To bring the Community system of sugar produc-
tion and trading in line with international requirements
and ensure its competitiveness in the future it is necessary
to launch a profound restructuring process leading to a sig-
nificant reduction of unprofitable production capacity in
the Community. To this end, as a precondition for the
implementation of a functioning new common market
organisation for sugar a separate and autonomous tempo-
rary scheme for the restructuring of the sugar industry in
the Community should be established. Under this scheme
quotas should be reduced in a manner that takes account
of the legitimate interests of the sugar industry, sugar beet,
cane and chicory growers and consumers
in the
Community.

(2)

A temporary restructuring fund should be set up in order
to finance the restructuring measures for the Community
sugar industry. For reasons of sound financial management
the fund should form part of the Guarantee Section of the
EAGGF and thus be governed by the procedures and
mechanisms of Council Regulation (EC) No 1258/1999 of
17 May 1999 on the financing of the common agricultural
policy (3) and, as from 1 January 2007, of the European

(1) Opinion delivered on 19 January 2006 (not yet published in the Offi-

cial Journal).

(2) Opinion delivered on 26 October 2005 (not yet published in the Offi-

cial Journal).

(3)

(4)

(5)

(6)

Agricultural Guarantee Fund set up by Council Regulation
(EC) No 1290/2005 of 21 June 2005 on the financing of
the common agricultural policy (4).

Owing to the fact that outermost regions are currently the
object of development programmes aimed at improving
their competitiveness in raw sugar production and also
produce raw cane sugar in competition with third coun-
tries, which are not subject to the temporary restructuring
amount, undertakings in the outermost regions should not
fall under the scope of this Regulation.

The restructuring measures provided for by this Regulation
should be financed by raising temporary amounts from
those sugar, isoglucose and inulin syrup producers which
will eventually benefit from the restructuring process. As
this amount falls outside the scope of the charges tradition-
ally known in the framework of the common market
organisation for sugar, the proceeds resulting from its col-
lection should be considered as ‘assigned revenue’ as pro-
Euratom)
vided for by Council Regulation (EC,
No 1605/2002 of 25 June 2002 on the Financial Regula-
tion applicable to the general budget of the European
Communities (5).

An important economic incentive for sugar undertakings
with the lowest productivity to give up their quota produc-
tion in the form of an adequate restructuring aid should be
introduced. To this effect, a restructuring aid should be set
up that creates an incentive to abandon sugar quota pro-
duction and renounce the quotas concerned, at the same
time allowing to take into due account the respect of social
and environmental commitments linked to the abandon-
ing of production. The aid should be available during four
marketing years with the aim to reduce production to the
extent necessary to reach a balanced market situation in
the Community.

To support sugar beet, cane and chicory growers that have
to give up production due to the closure of factories they
had supplied previously, a part of the restructuring aid
should be made available to these growers as well as to
machinery contractors that have worked for these growers
in order to compensate for losses resulting from these clo-
sures and in particular the loss of value of investments in
specialised machinery.

(3) OJ L 160, 26.6.1999, p. 103. Regulation as repealed by Regulation

(EC) No 1290/2005 (OJ L 209, 11.8.2005, p. 1).

(4) OJ L 209, 11.8.2005, p. 1.
(5) OJ L 248, 16.9.2002, p. 1.

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As payments of the restructuring amount into the tempo-
rary restructuring fund are made over a certain period of
time, it is necessary that payments of the restructuring aid
are spread in time.

(13)

Some specific situations in certain Member States should
be taken care of by means of an aid from the restructuring
fund provided that it forms part of the national restructur-
ing programme.

(7)

(8)

(9)

(10)

The decision as to the granting of the restructuring aid
should be taken by the Member State concerned. Under-
takings prepared to renounce their quotas should submit
an application to this Member State providing the latter
with all the relevant information in order to enable it to
reach a decision on the aid. Member States should have the
possibility to impose certain social and environmental
requirements in order to take account of the particularities
of the case presented as long as these requirements do not
restrict the operation of the restructuring process.

A restructuring plan should form part of the application
for restructuring aid. This plan should provide the Mem-
ber State concerned with all the relevant technical, social,
environmental and financial information allowing it to
decide on the granting of the restructuring aid. Member
States should take the necessary measures in order to exer-
cise the necessary control over the implementation of all of
the elements of the restructuring.

In the regions concerned by the restructuring process it
might prove to be appropriate to encourage the develop-
ment of alternatives to sugar beet and cane growing and
sugar production. To this effect, Member States should
have the possibility to allocate a certain part of the money
available from the restructuring fund to diversification
measures. These measures, established in the context of a
national restructuring plan, may take the form of measures
identical to certain measures supported under Council
Regulation (EC) No 1698/2005 of 20 September 2005 on
support for rural development by the European Agricul-
tural Fund for Rural Development (EAFRD) (1) or to mea-
sures that are in conformity with Community law
regarding State aid.

(11)

In order to speed up the process of restructuring, the aid
available for diversification should be increased if the quo-
tas renounced go beyond certain levels.

(12)

Full-time refiners should have the possibility to adapt their
situation to the restructuring of the sugar industry. The
adaptation should be supported by means of an aid from
the restructuring fund provided that the Member State
approves the business plan providing for the adaptation.
Member States concerned should ensure an equitable break
down of the aid available among the full-time refiners on
their territory.

(14) As it is to be funded over a period of three years, the
restructuring fund does not dispose from the outset of all
the necessary financial means. Rules as to the limitation of
the granting of the aid should therefore be established.

(15)

(16)

(17)

The measures necessary for the implementation of this
Regulation should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures for the exercise of implementing powers con-
ferred on the Commission (2).

The Commission should be authorised to adopt necessary
measures to solve specific practical problems in the case of
emergency.

The restructuring fund will finance measures which, due to
the nature of the restructuring mechanism, do not fall
under
the categories of expenditure referred to in
Article 3(1) of Regulation (EC) No 1290/2005. It is there-
fore necessary to amend that Regulation accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Temporary restructuring fund

1.
The temporary fund for the restructuring of the sugar indus-
try in the Community (hereinafter referred to as ‘restructuring
fund’) is hereby established.

The restructuring fund shall form part of the Guarantee Section
of the European Agricultural Guidance and Guarantee Fund. As
from 1 January 2007 it shall form part of the European Agricul-
tural Guarantee Fund (EAGF).

The restructuring fund shall finance the expenditure result-
2.
ing from the measures provided for under Articles 3, 6, 7, 8 and 9.

The temporary restructuring amount

referred to in
3.
Article 11 shall be revenue assigned to the restructuring fund in
accordance with Article 18(2) of Regulation (EC, Euratom)
No 1605/2002.

Any amount that may be available in the restructuring fund after
the financing of the expenditure referred to in paragraph 2 shall
be assigned to the EAGF.

(1) OJ L 277, 21.10.2005, p. 1.

(2) OJ L 184, 17.7.1999, p. 23.

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This Regulation shall not apply to the outermost regions

4.
referred to in Article 299(2) of the Treaty.

6)

Article 2

Definitions

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

1)

2)

‘isoglucose’ means the product obtained from glucose or its
polymers with a content by weight in the dry state of at least
10 % fructose;

‘inulin syrup’ means the immediate product obtained by
hydrolysis of inulin or oligofructoses, containing in the dry
state at least 10 % fructose in free form or as sucrose, and
expressed as sugar/isoglucose equivalents;

3)

‘agreement within the trade’ means one of the following:

(a) an agreement concluded at Community level, prior to
the conclusion of any delivery contract, between a group
of national undertakings’ organisations on the one hand
and a group of national sellers’ organisations on the
other;

(b) an agreement concluded, prior to the conclusion of any
delivery contract, between undertakings or a undertak-
ings’ organisation recognised by the Member State con-
cerned on the one hand and a sellers’ association
recognised by the Member State concerned on the other;

(c)

(d)

in the absence of any agreement as referred to in point (a)
or (b), the law on companies and the law on coopera-
tives, in so far as they govern the delivery of sugar beet
by the shareholders or members of a company or coop-
erative manufacturing sugar;

in the absence of any agreement as referred to in point (a)
or (b), the arrangements existing before the conclusion
of any delivery contract, provided the sellers accepting
the arrangement supply at least 60 % of the total beet
bought by the undertaking for the manufacture of sugar
in one or more factories;

4)

‘marketing year’ means the period beginning on 1 October
and ending on 30 September of the following year. By way
of exception, the marketing year 2006/2007 begins on 1 July
2006;

5)

‘full time refiner’ means a production unit:

— of which the sole activity consists of refining imported

raw cane sugar

or

‘quota’ means any quota for the production of sugar, isoglu-
cose and inulin syrup allocated to an undertaking in accor-
dance with Articles 7(2), 8(1), 9(1) and (2) and Article 11 of
Regulation (EC) No 318/2006 of 20 February 2006 on the
common organisation of the markets in the sugar sector (1).

Article 3

Restructuring aid

Any undertaking producing sugar,

1.
isoglucose or inulin
syrup to which a quota has been allocated by 1 July 2006 shall be
entitled to a restructuring aid per tonne of quota renounced, pro-
vided that during one of
the marketing years 2006/2007,
2007/2008, 2008/2009 and 2009/2010 it:

(a)

(b)

renounces the quota assigned by it to one or more of its fac-
tories and fully dismantles the production facilities of the fac-
tories concerned;

renounces the quota assigned by it to one or more of its fac-
tories, partially dismantles the production facilities of the fac-
tories concerned and does not use the remaining production
facilities of the factories concerned for the production of
products covered by the common market organisation for
sugar,

or

(c)

renounces a part of the quota assigned by it to one or more
of its factories and does not use the production facilities of
the factories concerned for refining raw sugar.

This last condition shall not apply in respect of:

— the sole processing plant in Slovenia,

— the sole beet processing plant in Portugal,

existing on 1 January 2006.

For the purpose of this Article, dismantling of production facili-
ties during the marketing year 2005/2006 shall be deemed to take
place in the marketing year 2006/2007.

2.
Restructuring aid shall be granted in respect of the market-
ing year for which the quotas are renounced in accordance with
paragraph 1 and only for the quantity of quota renounced and
not reallocated.

— which refined in the marketing year 2004/2005 a quan-
tity of at least 15 000 tonnes of imported raw cane
sugar;

The quota may only be renounced after consultations conducted
in the framework of the relevant agreements within the trade.

(1) See page 1 of this Official Journal.

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3.

Full dismantling of production facilities shall require:

(b)

in the case referred to in point (b) of paragraph 1:

(a)

(b)

(c)

the definitive and total cessation of the production of sugar,
isoglucose and inulin syrup by the production facilities
concerned;

— EUR 547,50 for the marketing year 2006/2007,

— EUR 547,50 for the marketing year 2007/2008,

the closure of the factory or the factories and the dismantling
of the production facilities thereof within the period referred
to in point (d) of Article 4(2),

— EUR 468,75 for the marketing year 2008/2009,

— EUR 390,00 for the marketing year 2009/2010;

and

(c)

in the case referred to in point (c) of paragraph 1:

the restoring of the good environmental conditions of the
factory site and the facilitation of redeployment of the work-
force within the period referred to in point (f) of Article 4(2).
Member States may require the undertakings referred to in
paragraph 1 to make commitments which go beyond the
statutory minimum requirements imposed by Community
law. However, such commitments shall not restrict the opera-
tion of the restructuring fund as an instrument.

— EUR 255,50 for the marketing year 2006/2007,

— EUR 255,50 for the marketing year 2007/2008,

— EUR 218,75 for the marketing year 2008/2009,

— EUR 182,00 for the marketing year 2009/2010.

4.

Partial dismantling of production facilities shall require:

(a)

(b)

(c)

the definitive and total cessation of the production of sugar,
isoglucose and inulin syrup by the production facilities
concerned;

the dismantling of the production facilities that will not be
used for the new production and were destined and used for
the production of the products mentioned under (a), within
the period referred to in point (e) of Article 4(2);

the restoring of the good environmental conditions of the
factory site and the facilitation of redeployment of the work-
force within the period referred to in point (f) of Article 4(2),
insofar as necessitated by the cessation of the production of
the products mentioned under (a). Member States may
require the undertakings referred to in paragraph 1 to make
commitments which go beyond the statutory minimum
requirements imposed by Community law. However, such
commitments shall not restrict the operation of the restruc-
turing fund as an instrument.

An amount of at least 10 % of the relevant restructuring aid

6.
fixed in paragraph 5 shall be reserved for:

— growers of sugar beet, cane and chicory having delivered
these products during a period preceding the marketing year
referred to in paragraph 2 for the production of sugar or inu-
lin syrup under the relevant quota renounced,

and

— machinery contractors, being private persons or enterprises
having worked under contract with their agricultural machin-
ery for the growers, for the products and in the period
referred to in the first indent.

After consultation of the interested parties, Member States shall
determine the applicable percentage as well as the period referred
to in the first subparagraph provided that an economically sound
balance between the elements of the restructuring plan as referred
to in Article 4(3) is ensured.

The amount of restructuring aid per tonne of renounced

5.
quota shall be:

Member States shall grant the aid on the basis of objective and
non-discriminatory criteria, taking into account the losses result-
ing from the restructuring process.

(a)

in the case referred to in point (a) of paragraph 1:

— EUR 730,00 for the marketing year 2006/2007,

— EUR 730,00 for the marketing year 2007/2008,

— EUR 625,00 for the marketing year 2008/2009,

— EUR 520,00 for the marketing year 2009/2010;

The amount resulting from the application of the first and sec-
ond subparagraphs shall be deducted from the applicable amount
referred to in paragraph 5.

Article 4

Application for restructuring aid

1.
Applications for restructuring aid shall be submitted to the
Member State concerned by 31 January preceding the marketing
year during which the quota is to be renounced.

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However, applications
2006/2007 shall be submitted by 31 July 2006.

in respect of

the marketing year

(d) a business plan detailing the modalities, timetable and costs
for the closure of the factory or factories and the full or par-
tial dismantling of the production facilities;

2.

Applications for restructuring aid shall include:

(e)

if appropriate, the scheduled investments;

(a) a restructuring plan;

(b) a confirmation that the restructuring plan has been prepared
in consultation with the sugar beet, cane and chicory growers;

(c) a commitment to renounce the relevant quota in the market-

ing year concerned;

(d)

in the case referred to in Article 3(1)(a), a commitment to
fully dismantle the production facilities within the period to
be determined by the Member State concerned;

(e)

in the case referred to in Article 3(1)(b), a commitment to
partially dismantle the production facilities within the period
to be determined by the Member State concerned and not to
use the production site and the remaining production facili-
ties for the production of products covered by the common
market organisation for sugar;

(f)

in the cases referred to in Article 3(1)(a) and Article 3(1)(b), a
commitment to meet the requirements provided for in,
respectively, Article 3(3)(c) and Article 3(4)(c) within the
period to be determined by the Member State concerned;

(g)

in the case referred to in Article 3(1)(c), if applicable, a com-
mitment not to use the production facilities for refining raw
sugar.

The respect of the commitments under points (c) to (g) shall be
subject to a decision granting the aid as referred to in Article 5(1).

The restructuring plan referred to in paragraph 2(a) shall

3.
include at least the following elements:

(a) a presentation of the purposes and the actions foreseen, dem-
onstrating a sound economic balance between them and their
consistency with the objectives of the restructuring fund and
of the rural development policy in the region concerned as
approved by the Commission;

(b)

the aid to be granted to growers of sugar beet, cane or chicory
and, if appropriate, machinery contractors in accordance
with Article 3(6);

(c) a complete technical description of the production facilities

concerned;

(f)

a social plan detailing the actions planned in particular with
respect to re-training, redeployment and early retirement of
the workforce concerned and, if applicable, national specific
requirements provided for in accordance with Article 3(3)(c)
or Article 3(4)(c);

(g) an environmental plan detailing the actions planned in par-
ticular to respect mandatory environmental obligations and,
if applicable, national specific requirements provided for in
accordance with Article 3(3)(c) or Article 3(4)(c);

(h) a financial plan detailing all the costs in relation to the

restructuring plan.

Article 5

Decision on the restructuring aid and controls

1.
By the end of February preceding the marketing year
referred to in Article 3(2), Member States shall decide on the
granting of the restructuring aid. However, the decision for the
marketing year 2006/2007 shall be adopted by 30 September
2006.

The restructuring aid shall be granted if the Member State

2.
has established after thorough verification that:

— the application contains

the elements

referred to in

Article 4(2),

— the restructuring plan contains the elements referred to in

Article 4(3),

— the measures and actions described in the restructuring plan
are in conformity with the relevant Community and national
legislation;

and

— the necessary financial resources are available in the restruc-
turing fund, on the basis of information obtained from the
Commission.

3.
If one or more of the conditions laid down in the first three
indents of paragraph 2 are not respected, the application for the
restructuring aid shall be returned to the applicant. The applicant
shall be informed of the conditions that are not respected. The
applicant may then either withdraw or complete his application.

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Notwithstanding the control obligations referred to in Regu-
4.
lation (EC) No 1290/2005, Member States shall monitor, control
and verify the implementation of the restructuring aid as approved
by it.

Article 6

Aid for diversification

1.
An aid for diversification measures in regions affected by
the restructuring of the sugar industry may be granted in any
Member State in relation to the sugar quota renounced by under-
takings established in that Member State in one of the marketing
years 2006/2007, 2007/2008, 2008/2009 and 2009/2010.

Diversification measures which differ from the measures
5.
envisaged under Axis 1 and Axis 3 of Regulation (EC)
No 1698/2005 shall be eligible for the aid referred to in para-
graph 1 provided that they are in conformity with the criteria set
out in Article 87(3) of the Treaty and, in particular, with the aid
intensities and the eligibility criteria laid down in the Commission
guidelines on State aid in the agricultural sector.

6. Member States shall not grant national aid in respect of
diversification measures provided for in this Article. However, if
the ceilings referred to in the third subparagraph of paragraph 4
were to permit the granting of an aid for diversification of 100 %,
the Member State concerned shall contribute at least 20 % of the
eligible expenditure. In this case, Articles 87, 88 and 89 of the
Treaty shall not apply.

The total amount of aid available to a Member State shall be

2.
established on the basis of:

Article 7

Additional aid for diversification

— EUR 109,50 per tonne of sugar quota renounced in the mar-

keting year 2006/2007,

The total amount of aid available to a Member State in

1.
accordance with Article 6(2) shall be increased by:

— EUR 109,50 per tonne of sugar quota renounced in the mar-

keting year 2007/2008,

— 50 % once the national sugar quota fixed in Annex III of
Regulation (EC) No 318/2006 for that Member State has
been renounced by at least 50 % but less than 75 %,

— EUR 93,80 per tonne of sugar quota renounced in the mar-

keting year 2008/2009,

— another 25 % once the national sugar quota fixed in Annex III
of Regulation (EC) No 318/2006 for that Member State has
been renounced by at least 75 % but less than 100 %,

— EUR 78,00 per tonne of sugar quota renounced in the mar-

keting year 2009/2010.

— another 25 % once the national sugar quota fixed in Annex III
of Regulation (EC) No 318/2006 for that Member State has
been completely renounced.

3. Member States which decide to grant aid for diversification
referred to in paragraph 1 or transitional aid referred to in
Article 9 shall establish national restructuring programmes detail-
ing the diversification measures to be undertaken in the regions
concerned and inform the Commission of these programmes.

Notwithstanding paragraph 5, to be eligible for aid referred
4.
to in paragraph 1 diversification measures shall correspond to
one or more of the measures envisaged under Axis 1 and Axis 3
of Regulation (EC) No 1698/2005.

Any increase shall be available in the marketing year in which the
quantity of the national sugar quota renounced reaches, as the
case may be, 50, 75 or 100 %.

2.
The Member State concerned shall decide whether the aid
corresponding to the increase laid down in paragraph 1 shall be
granted for diversification measures referred to in Article 6(1)
and/or to growers of sugar beet or cane giving up their produc-
tion in the regions affected by the restructuring. The aid to grow-
ers shall be granted according to objective and non-discriminatory
criteria.

Member States shall fix criteria in order to distinguish the mea-
sures for which an aid for diversification may be granted from the
measures for which Community support may be granted under
Regulation (EC) No 1698/2005.

Article 8

Transitional aid to full-time refiners

The aid referred to in paragraph 1 shall not be higher than the
ceilings for the EAFRD contribution laid down in Article 70(3)(a)
of Regulation (EC) No 1698/2005.

1.
A transitional aid shall be granted to full-time refiners so as
to allow them to adapt to the restructuring of the sugar industry
in the Community.

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To this end, an amount of EUR 150 million shall be made
2.
available for the total of the four marketing years 2006/2007,
2007/2008, 2008/2009 and 2009/2010.

The amount fixed in the first subparagraph shall be divided as
follows:

— EUR 94,3 million for

full-time refiners in the United

Kingdom,

— EUR 24,4 million for full-time refiners in Portugal,

2. Where, on the basis of the applications submitted for a mar-
keting year and found eligible by the Member State concerned, the
overall amount of aid to be granted exceeds the limit for that mar-
keting year, the granting of aid, shall be based on the chronologi-
cal order of the lodging of applications for aid (‘first come, first
served’ principle).

The aids referred to in Articles 6, 7, 8 and 9 shall be inde-

3.
pendent of the aid referred to in Article 3.

The restructuring aid referred to in Article 3 shall be paid in

4.
two instalments:

— EUR 5,0 million for full-time refiners in Finland,

— 40 % in June of the marketing year referred to in Article 3(2),

— EUR 24,8 million for full-time refiners in France,

and

— EUR 1,5 million for full-time refiners in Slovenia.

— 60 % in February of the following marketing year.

3.
The aid shall be granted on the basis of a business plan
approved by the Member State relating to the adaptation of the
situation of the full-time refiner concerned to the restructuring of
the sugar industry.

However, the Commission may decide to split the instalment
referred to in the second of the preceding indents into two pay-
ments, as follows:

— a first payment in February of the following marketing year,

Member States shall grant the aid on the basis of objective and
non-discriminatory criteria.

and

Article 9

Transitional aid to certain Member States

In the context of the national restructuring programme referred
to in Article 6(3):

— a second payment at a later date when the necessary finan-
cial resources have been paid into the restructuring fund.

5.
The Commission may decide to postpone the payment of
the aids referred to in Articles 6, 7, 8 and 9 until the necessary
financial resources have been paid into the restructuring fund.

(a) an aid of not more than EUR 9 million shall be granted in
Austria for investments in collection centres of sugar beet
and other logistical infrastructure needed as a consequence of
restructuring;

Article 11

Temporary restructuring amount

(b) an aid of not more than EUR 5 million shall be granted in
Sweden for the direct or indirect benefit of sugar beet grow-
ers in Gotland and Öland giving up sugar production as part
of the national restructuring process.

Article 10

Financial limits

1.
Any aid referred to in Articles 3, 6, 7, 8 and 9 claimed for
any of the marketing years 2006/2007, 2007/2008, 2008/2009
and 2009/2010 shall be granted only within the limit of the
appropriations available in the restructuring fund.

1.
A temporary restructuring amount shall be paid per mar-
keting year per tonne of quota by those undertakings to which a
quota has been allocated.

Quotas that have been renounced by an undertaking as from a
given marketing year in accordance with Article 3(1) shall not be
subject to the payment of the temporary restructuring amount for
this marketing year and subsequent marketing years.

The temporary restructuring amount for sugar and inulin

2.
syrup shall be set at:

— EUR 126,40 per tonne of quota for the marketing year

2006/2007,

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— EUR 173,8 per tonne of quota for the marketing year

2007/2008,

Article 12

Detailed rules

— EUR 113,3 per tonne of quota for the marketing year

2008/2009.

The temporary restructuring amount per marketing year for iso-
glucose shall be set at an amount equal to 50 % of the amounts
fixed in the first subparagraph.

3. Member States shall be liable to the Community for the
temporary restructuring amount to be collected on their territory.

Member States shall pay the temporary restructuring amount to
the restructuring fund in two instalments, as follows:

— 60 % by 31 March of the marketing year concerned,

and

Detailed rules for the implementation of this Regulation and, in
particular as regards the requirements provided for in Article 3
and the measures necessary to resolve transitional difficulties,
shall be adopted in accordance with the procedure referred to in
Article 13 of Regulation (EC) No 1258/1999, or, as from 1 Janu-
ary 2007, referred to in Article 41(2) of Regulation (EC)
No 1290/2005.

Article 13

Specific measures

Measures which are both necessary and justifiable in an emer-
gency, in order to resolve practical specific problems shall be
adopted in accordance with the procedure referred to in Article 13
of Regulation (EC) No 1258/1999 or, as from 1 January 2007,
that referred to in Article 41(2) of Regulation (EC) No 1290/2005.

— 40 % by 30 November of the following marketing year.

Such measures may derogate from certain parts of this Regula-
tion, but only to the extent that, and for such a period, as is
strictly necessary.

If the temporary restructuring amount is not paid before the
4.
due date, the Commission shall, after consultation of the Com-
mittee on the Agricultural Funds, deduct a sum equivalent to the
unpaid restructuring amount from the monthly advances on the
provision for expenditure effected by the Member State con-
cerned, referred to in Article 14(1) and Article 15(2) of Council
Regulation (EC) No 1290/2005. Before taking its decision, the
Commission shall give the Member State the opportunity to sub-
mit its observations within a period of two weeks. The provisions
of Article 14 of Council Regulation (EC) No 2040/2000 (1) shall
not apply.

The totality of the temporary restructuring amounts to be
5.
paid in accordance with paragraph 3 shall be allocated by the
Member State among the undertakings on its territory according
to the allocated quota during the marketing year concerned.

Undertakings shall pay the temporary restructuring amounts in
two instalments, as follows:

Article 14

Amendments to Regulation (EC) No 1290/2005

Regulation (EC) No 1290/2005 is hereby amended as follows:

1) The following point shall be added to Article 3(1):

‘(e) restructuring aid, aid for diversification, additional aid
for diversification and transitional aid provided for in
Articles 3, 6, 7, 8 and 9 of Council Regulation (EC)
No 320/2006 of 20 February 2006 establishing a tem-
porary scheme for the restructuring of the sugar indus-
try in the Community (*).

(*) OJ L 58, 28.2.2006, p. 42.’;

— 60 % by the end of February of the marketing year concerned,

2) Article 34 shall be amended as follows:

and

(a)

the following point shall be added to paragraph 1:

— 40 % by 31 October of the following marketing year.

(1) OJ L 244, 29.9.2000, p. 27.

‘(c)

temporary restructuring amounts collected under
Regulation (EC) No 320/2006.’

L 58/50

EN

Official Journal of the European Union

28.2.2006

(b)

in paragraph 2 the words ‘The sums referred to in para-
graph 1(a) and (b)’ shall be replaced by ‘The sums referred
to in paragraphs 1(a), (b) and (c)’.

Article 15

Entry into force

(c)

the following paragraph shall be added:

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

‘(3) The provisions of this Regulation shall apply muta-
tis mutandis to assigned revenue referred to in para-
graph 1 of this Article.’.

It shall apply from 1 July 2006. However, Articles 12 and 13 shall
apply from the date of entry into force of this Regulation.

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

Done at Brussels, 20 February 2006.

For the Council
The President
J. PRÖLL