Council Regulation (EC) No 318/2006 of  20 February 2006  on the common organisation of the markets in the sugar sector
Date: 2006-02-20
Institutions: Council of the European Union
Subjects: agricultural trade, common organisation of markets, export policy, farm prices, import policy, regulation of agricultural production, sugar

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 318/2006

of 20 February 2006

on the common organisation of the markets in the sugar sector

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:

The operation and development of the common market
for agricultural products should be accompanied by the
establishment of a common agricultural policy to include,
in particular, a common organisation of agricultural mar-
kets which may take various forms depending on the
product.

The sugar market in the Community is based on principles
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 stan-
dard of living for the agricultural community within the
sugar sector, it is necessary to fundamentally review the
common organisation of the market in the sugar sector.

(5)

(6)

(7)

In the light of these developments, Council Regulation (EC)
No 1260/2001 of 19 June 2001 on the common organi-
sation of the markets in the sugar sector (3) should be
repealed and replaced by a new Regulation.

(8)

Reference prices should be fixed for standard qualities of
white sugar and raw sugar. Such standard qualities should
be average qualities representative of sugar produced in

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

Official Journal).

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

Official Journal).

(3) OJ L 178, 30.6.2001, p. 1. Regulation as last amended by Commis-

sion Regulation (EC) No 39/2004 (OJ L 6, 10.1.2004, p. 16).

(1)

(2)

(3)

(4)

the Community and defined on the basis of criteria used
by the sugar trade. It should also be possible to review the
standard qualities to take account, in particular, of com-
mercial requirements and developments in technical
analysis.

In order to achieve reliable information on Community
market prices for sugar, a price reporting system should
be set up on the basis of which market price levels for
white sugar should be determined.

A minimum price should be fixed for quota beet corre-
sponding to a standard quality which should be defined,
in order to ensure a fair standard of living for the Com-
munity growers of sugar beet and sugar cane.

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
the Community. Agreements
sugar beet
within the trade already exist between associations of
sugar beet growers and sugar undertakings. Therefore,
framework provisions should only define the mini-
mum 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.

throughout

The reasons which in the past led the Community to adopt
a production quota system for sugar, isoglucose and inulin
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.

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(9)

(10)

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 Commu-
nity 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 to be allocated an additional quota
under conditions that take into account the lower value
of C sugar.

To counterbalance the effects on isoglucose of the fall in
sugar prices, as well as to avoid penalizing the production
of some isoglucose qualities, additional quotas should be
allocated to the current isoglucose beneficiaries. Moreover,
supplementary quotas should be available for adjustments
of the sweeteners sector of some Member States under the
conditions provided for granting additional sugar quota.

(11)

To ensure that the Community’s production of sugar, iso-
glucose and inulin syrup is reduced sufficiently, the Com-
mission should be entitled to adjust the quotas to a
sustainable level after the termination of the restructuring
fund in 2010.

(12) Given the need to allow for a certain national flexibility in
relation to the structural adjustment of the processing
industry and of beet and cane growing during the period
in which the quotas are to be applied, Member States
should be allowed to alter the quotas of undertakings
within certain limits whilst not restricting the operation of
the restructuring fund established by Council Regulation
(EC) No 320/2006 of 20 February 2006 establishing a
temporary scheme for the restructuring of the sugar indus-
try in the Community (1) as an instrument.

(13)

(14)

The sugar quotas are allocated or reduced following a
merger or transfer of undertakings, the transfer of a fac-
tory, or the lease of a factory. The conditions for adjust-
ment by the Member States of
the
undertakings in question should be established while
ensuring that changes to the quotas of sugar undertakings
are not detrimental to the interests of the beet growers
or cane growers concerned.

the quotas of

Since allocating quota production to undertakings
is a way of ensuring that sugar beet and cane growers are
paid Community prices and have an outlet for their
production, the interests of all parties concerned, in par-
ticular beet and cane growers, should be taken into con-
sideration when quotas are transferred inside production
regions.

used for manufacture in the Community of certain
products such as chemical, pharmaceutical, alcohol or
rum, as out-of-quota production under conditions to be
laid down.

(16) A part of the out of quota production should be used to
ensure the adequate supply to the outermost regions
or could be exported under the Community’s WTO
commitments.

(17)

(18)

Should the production of sugar, isoglucose or inulin syrup
exceed the quotas, it should be possible to provide for a
mechanism to carry forward the surplus sugar, isoglucose
or inulin syrup to be treated as quota production of the fol-
lowing marketing year, in order to avoid the surplus sugar
distorting the sugar market.

Certain mechanisms are available for out of quota produc-
tion. If, for certain quantities, the applicable conditions are
not met, a levy on the surplus should be imposed in order
to avoid the accumulation of these quantities threatening
the market situation.

(19) A production charge should be introduced to contribute to
the financing of the expenditure occurring under the com-
mon organisation of the markets in the sugar sector.

(20)

In order to provide for an efficient control of the produc-
tion of operators producing sugar, isoglucose or inulin
syrup, an approval system for operators should be estab-
lished and detailed information in relation to their produc-
tion should be submitted to the Member State concerned.

(21) A temporary and limited buying-in intervention system
should be kept in place in order to contribute to stabilising
the market for cases where market prices in a given mar-
keting year would fall below the reference price fixed for
the following marketing year.

(22) New market tools to be managed by the Commission
should be introduced. Firstly, if market prices fall below the
reference price for white sugar, it should be possible for
operators, under conditions to be determined by the Com-
mission, to benefit from a private storage scheme. Sec-
ondly, to maintain the structural balance of the markets in
sugar at a price level close to the reference price, it should
be possible for the Commission to decide to withdraw
sugar from the market for as long as it takes for the mar-
ket to rebalance.

(15)

To expand the outlets for sugar, isoglucose and inulin
syrup on the Community’s internal market,
it should
be possible to consider sugar, isoglucose and inulin syrup

(1) See page 42 of this Official Journal.

(23)

The creation of a single Community market for sugar
involves the introduction of a trading system at the exter-
nal borders of the Community. That trading system should
include import duties and export refunds and should, in
principle, stabilise the Community market. The trading sys-
tem should be based on the undertakings accepted under
the Uruguay Round of multilateral trade negotiations.

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(24)

(25)

(26)

(27)

(28)

(29)

(30)

(31)

In order to monitor the volume in trade in sugar with third
countries, provision should be made for an import and
export licence scheme with the lodging of a security to
ensure that the transactions for which such licences are
issued are actually carried out.

(32)

(33)

(34)

(35)

To ensure that those trading arrangements can function
properly, provision should be made for regulating or,
when the situation on the market so requires, prohibiting
the use of inward processing arrangements.

The customs duty system makes it possible to dispense
with all other protective measures at the external frontiers
of the Community. The internal market and duty mecha-
nism could,
in exceptional circumstances, prove to be
inadequate. In such cases, in order not to leave the Com-
munity market without defence against disturbances that
might ensue, the Community should be able to take all
necessary measures without delay. Such measures should
comply with the international commitments of
the
Community.

For the most part, the customs duties applicable to agri-
cultural products under the WTO agreements are laid
down in the common customs tariff. However, for some
products falling within the scope of this Regulation, the
introduction of additional mechanisms makes it necessary
to provide for the possibility to adopt derogations.

In order to prevent or counteract adverse effects on the
Community market which could result from imports of
certain agricultural products, imports of such products
should be subject to payment of an additional duty, if cer-
tain conditions are fulfilled.

It is appropriate, under certain conditions, to confer on the
Commission the power to open and administer tariff quo-
tas resulting from international agreements concluded in
accordance with the Treaty or from other acts of the
Council.

The Community has several preferential market access
arrangements with third countries which allow those coun-
tries to export cane sugar to the Community under favour-
able conditions. Therefore,
it is necessary to evaluate
refiners’ need for sugar for refining and, under certain con-
ditions, to reserve import licences to specialised users of
notable quantities of imported raw cane sugar, deemed as
being full-time refiners in the Community.

Provisions for granting refunds on exports to third coun-
tries, based on the difference between prices within the
Community and on the world market, and falling
within the limits set by the EC’s commitments in the WTO,
should serve to safeguard the possible Community partici-
pation in international trade in sugar. Subsidised exports
should be subject to limits in terms of quantity and bud-
getary outlay.

Compliance with the limits in terms of value should be
ensured at the time when the export refunds are fixed
through the monitoring of payments under the rules
relating to the European Agricultural Guidance and
Guarantee Fund. Monitoring can be facilitated by the com-
pulsory advance fixing of export refunds, while allowing
the possibility, in the case of differentiated refunds, of
changing the specified destination within a geographical
area to which a single export refund rate applies. In the
case of a change of destination, the export refund appli-
cable to the actual destination should be paid, with a ceil-
ing of the amount applicable to the destination fixed in
advance.

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 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 com-
pliance with management rules where exports benefiting
from export refunds are not likely to exceed the quantity
laid down.

The proper working of the single market based on com-
mon prices would be jeopardised by the granting of
national aid. Therefore, the provisions of the Treaty gov-
erning State aid should apply to the products covered by
this common market organisation. However, with a view
to attenuating the effects the reform of the sugar sector is
expected to have in certain circumstances the granting of
certain State aid should be allowed.

In Member States with a significant reduction of sugar
quota sugar beet producers will face particularly severe
adaptation problems. In such cases the transitional Com-
munity aid to sugar beet growers will not suffice to fully
address the beet growers’ difficulties. Therefore, Member
States having reduced their quota by more than 50 %
should be authorised to grant State aid to sugar beet
growers during the application period of the transitional
Community aid. To avoid Member States granting State
aid exceeding the needs of their sugar beet growers the
determination of the total amount of the State aid con-
cerned should be made subject to Commission approval,
except in the case of Italy where the maximum need for
most productive sugar beet to adapt to the market con-
ditions after the reform can be estimated at EUR 11 per
tonne of sugar beet produced. Moreover, due to the par-
ticular problems expected to arise in Italy provision
should be made for arrangements allowing sugar beet
growers to benefit directly or indirectly from the State aid
granted.

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(36)

(37)

(38)

(39)

(40)

(41)

(42)

In Finland sugar beet growing is subject to particular geo-
graphical and climatic conditions which will adversely
affect the growing beyond the general effects of the sugar
reform. For this reason provision should be made for
authorising that Member State on a permanent basis
to grant its sugar beet growers an adequate amount of
State aid.

It is appropriate to provide for measures to be taken 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.

Since the common market in sugar is continuously evolv-
ing, the Member States and the Commission should keep
each informed of relevant developments.

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 (1).

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

The characteristics of sugar production in the outermost
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 247/2006 of 30 January 2006 laying
down specific measures for agriculture in the outermost
regions of the Union (2). For the same reason, France
should be authorised to grant a fixed amount of State aid
to its outermost regions.

Expenditure incurred by the Member States as a result of
the obligations arising from the application of this Regu-
lation should be financed by the Community in accordance
with 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 in accordance with
Council Regulation (EC) No 1290/2005 of 21 June 2005
on the financing of the common agricultural policy.

(43)

The change-over from the arrangements in Regulation (EC)
No 1260/2001 to those provided for in this Regulation as

well as the change-over from the market situation in the
marketing year 2005/2006 to the market situation in the
marketing year 2006/2007 and in order to ensure compli-
ance by the Community with its international commit-
ments with regard to C sugar referred to in Article 13 of
Regulation (EC) No 1260/2001 could give rise to difficul-
ties which are not dealt with in this Regulation. In order to
deal with such difficulties, the Commission should be
enabled to adopt transitional measures,

HAS ADOPTED THIS REGULATION:

TITLE I

SCOPE AND DEFINITIONS

Article 1

Scope

1.
The common organisation of the markets in the sugar sec-
tor established by this Regulation shall cover the following
products:

CN Code

Description

(a)

1212 91

Sugar beet

1212 99 20

Sugar cane

(b)

1701

Cane or beet sugar and chemically pure sucrose, in
solid form

(c)

1702 20

Maple sugar and maple syrup

1702 60 95
and
1702 90 99

Other sugars in solid form and sugar syrups, not
containing added flavouring or colouring matter,
but not including lactose, glucose, maltodextrine
and isoglucose

1702 90 60 Artificial honey, whether or not mixed with natural

honey

1702 90 71

Caramel containing 50 % or more by weight of
sucrose in the dry matter

2106 90 59

Flavoured or coloured sugar syrups, other than iso-
glucose, lactose, glucose and maltodextrine syrups

Isoglucose

(d)

1702 30 10
1702 40 10
1702 60 10
1702 90 30

(e)

1702 60 80
1702 90 80

Inulin syrup

(f)

1703

Molasses resulting from the extraction or refining of
sugar

(1) OJ L 184, 17.7.1999, p. 23.
(2) OJ L 42, 14.2.2006, p. 1.
(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).

(g)

2106 90 30

Flavoured or coloured isoglucose syrups

(h)

2303 20

Beet pulp, bagasse and other waste of sugar under-
takings

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The marketing year for the products listed in paragraph 1
2.
shall begin on 1 October and end on 30 September of the follow-
ing year.

10) ‘delivery contract’ means a contract concluded between a
seller and an undertaking for the delivery of beet for the
manufacture of sugar;

However, the marketing year 2006/2007 shall begin on 1 July
2006 and end on 30 September 2007.

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

Article 2

Definitions

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

1)

2)

3)

4)

5)

6)

7)

8)

‘white sugars’ means sugars, not flavoured or coloured
or containing any other added substances, containing, in the
dry state, 99,5 % or more by weight of sucrose, determined
by the polarimetric method;

‘raw sugars’ means sugars, not flavoured or coloured or con-
taining any other added substances, containing, in the dry
state, less than 99,5 % by weight of sucrose, determined by
the polarimetric method;

‘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. In order to avoid
restrictions on the market for products with low sweetening
power produced by inulin fibre processors without inulin
syrup quota, this definition may be amended in accordance
with the procedure referred to in Article 39(2);

‘quota sugar’, ‘quota isoglucose’ and ‘quota inulin syrup’ mean
any quantity of sugar, isoglucose or inulin syrup production
attributed to a specific marketing year under the quota of the
undertaking concerned;

‘industrial sugar’ means any quantity of sugar production
attributed to a specific marketing year over and above the
sugar quantity referred to in point (5), intended for the pro-
duction by the industry of one of the products referred to in
Article 13(2);

‘industrial isoglucose’ and ‘industrial inulin syrup’ mean any
quantity of isoglucose or inulin syrup production attributed
to a specific marketing year, intended for the production by
referred to in
the industry of one of
Article 13(2);

the products

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

(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 an 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;

12) ‘ACP/Indian sugar’ means sugar falling within CN code 1701
originating in the States listed in Annex VI and imported into
the Community under:

— Protocol 3 to Annex V to the ACP-EC Partnership

Agreement,

or

— the Agreement on cane sugar between the European

Community and the Republic of India (1);

13) ‘full-time refiner’ means a production unit:

— of which the sole activity consists of refining imported

raw cane sugar,

or

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

9)

‘quota beet’ means all sugar beet processed into quota sugar;

(1) OJ L 190, 23.7.1975, p. 36.

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TITLE II

INTERNAL MARKET

CHAPTER 1

Prices

Article 3

Reference prices

1.

For white sugar, the reference price shall be:

(a) EUR 631,9 per tonne for each of the marketing years

2006/2007 and 2007/2008;

(b) EUR 541,5 per tonne for the marketing year 2008/2009;

(c) EUR 404,4 per tonne as from the marketing year 2009/2010.

2.

For raw sugar, the reference price shall be:

(a) EUR 496,8 per tonne for each of the marketing years

2006/2007 and 2007/2008;

The minimum price referred to in paragraph 1 shall apply

2.
to sugar beet of the standard quality described in Annex I.

3.
Sugar undertakings buying quota beet suitable for process-
ing into sugar and intended for processing into quota sugar shall
be required to pay at least the minimum price, adjusted by price
increases or reductions to allow for deviations from the standard
quality.

4.
For the quantities of sugar beet corresponding to the quan-
tities of industrial sugar or surplus sugar that are 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.

Article 6

Interprofessional agreements

1.
Agreements within the trade and delivery contracts shall
conform to paragraph 3 and to purchase terms laid down in
Annex II, in particular as regards the conditions governing the
purchase, delivery, taking over and payment of beet.

(b) EUR 448,8 per tonne for the marketing year 2008/2009;

(c) EUR 335,2 per tonne as from marketing year 2009/2010.

2.
The terms for buying sugar beet and sugar cane shall be
governed by agreements within the trade concluded between
Community growers of these raw materials and Community sugar
undertakings.

The reference prices referred to in paragraphs 1 and 2 shall
3.
apply to unpacked sugar, ex factory. They shall apply to white
sugar and raw sugar of the standard quality described in Annex I.

In delivery contracts, a distinction shall be made according
3.
to whether the quantities of sugar to be manufactured from sugar
beet will be:

Article 4

Price reporting

— quota sugar,

— out-of-quota sugar.

The Commission shall set up an information system on prices in
the sugar market, including a system for the publication of price
levels for the sugar market.

The system shall be based on information submitted by under-
takings producing white sugar or by other operators involved in
the sugar trade. This information shall be treated with confiden-
tiality. The Commission shall ensure that the information pub-
lished shall not permit to identify the prices of
individual
undertakings or operators.

Each sugar undertaking shall provide the Member State in

4.
which it produces sugar with the following information:

(a)

the quantities of beet referred to in the first indent of para-
graph 3, for which they have concluded pre-sowing delivery
contracts and the sugar content on which those contracts are
based;

Article 5

Minimum beet price

(b)

the corresponding estimated yield.

Member States may require additional information.

1.

The minimum price for quota beet shall be:

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

(b) EUR 29,78 per tonne for the marketing year 2007/2008;

(c) EUR 27,83 per tonne for the marketing year 2008/2009;

(d) EUR 26,29 per tonne as from the marketing year 2009/2010.

5.
Sugar undertakings which have not signed pre-sowing deliv-
ery contracts at the minimum price for quota beet for a quantity
of beet equivalent to their quota sugar shall be required to pay at
least the minimum price for quota beet for all the sugar beet they
process into sugar.

6.
Subject to the approval of the Member State concerned,
agreements within the trade may derogate from paragraphs 3
and 4.

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If no agreements within the trade exist, the Member State
7.
concerned shall take the necessary steps under this Regulation to
protect the interests of the parties concerned.

If the sugar undertaking has not paid the one-off amount
5.
before 28 February 2008 the additional quotas shall not be con-
sidered as allocated to the sugar undertaking concerned.

CHAPTER 2

Quota production

Article 7

Quota allocation

The quotas for the production of sugar, isoglucose and inu-

1.
lin syrup at national or regional level are fixed in Annex III.

2.
The Member States shall allocate a quota to each undertak-
ing producing sugar, isoglucose or inulin syrup established in its
territory and approved under Article 17.

For each undertaking, the allocated quota shall be equal to the
total of the A and B quotas under Regulation (EC) No 1260/2001
which were allocated to the undertaking for the marketing year
2005/2006.

3.
In case of allocation of a quota to a sugar undertaking hav-
ing more than one production unit, the Member States shall adopt
the measures they consider necessary in order to take due account
of the interests of sugar beet and cane growers.

Article 9

Additional and supplementary isoglucose quota

1.
In the marketing year 2006/2007 an isoglucose quota of
100 000 tonnes shall be added to the total of the isoglucose quota
fixed in Annex III. In each of the marketing years 2007/2008
and 2008/2009 a further isoglucose quota of 100 000 tonnes
shall be added to the quota of the preceding marketing year.

Member States shall allocate the additional quotas to undertak-
ings, proportionately to the isoglucose quotas that have been allo-
cated in accordance with Article 7(2).

Italy, Lithuania and Sweden may allocate, upon request by
2.
any undertaking established on their respective territories a
supplementary isoglucose quota in the period from the market-
ing year 2006/2007 until the marketing year 2009/2010. The
maximum supplementary quotas are fixed per Member State in
point II of Annex IV.

Article 8

Additional sugar quota

3.
A one-off amount of EUR 730 shall be levied on the quotas
that have been allocated to undertakings in accordance with para-
graph 2. It shall be collected per tonne of supplementary quota
allocated.

By 30 September 2007 at the latest, any sugar undertaking
1.
may request from the Member State where it is established the
allocation of an additional sugar quota.

The maximum additional sugar quotas per Member State are fixed
in point I of Annex IV.

2.
On the basis of the requests, the Member State shall deter-
mine according to objective and non-discriminatory criteria the
quantities which are acceptable. If the sum of these demands for
additional quantities exceeds the available national quantity, the
Member State concerned shall provide for a proportional reduc-
tion of the acceptable quantities. The resulting quantities shall be
the additional quota allocated to the undertakings concerned.

3.
A one-off amount of EUR 730 shall be levied on the addi-
tional quotas that have been allocated to undertakings in accor-
dance with paragraphs 1 and 2. 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 under-
takings on its territory that have been allocated an additional
quota.

Article 10

Quota management

In accordance with the procedure

1.
referred to in
Article 39(2), the quotas set out in Annex III shall be adjusted by
30 September 2006 at
for the marketing year
the latest
2006/2007 and by the end of February at the latest of the previ-
ous marketing year for each of the marketing years 2007/2008,
2008/2009, 2009/2010 and 2010/2011. The adjustments shall
result from the application of Articles 8 and 9, of paragraph 2 of
this Article, and of Articles 14 and 19 of this Regulation and of
Article 3 of Regulation (EC) No 320/2006.

2.
Taking into account the results of the restructuring scheme
provided for in Regulation (EC) No 320/2006, the Commission
shall decide by the end of February 2010 at the latest, in accor-
dance with the procedure referred to in Article 39(2), the com-
mon percentage needed to reduce the existing quotas for sugar,
isoglucose and inulin syrup per Member State or region with a
view to avoid market imbalances in the marketing years as from
2010/2011.

The payment of the one-off amount by a sugar undertaking con-
cerned shall be made by a deadline to be determined by the Mem-
ber States. The deadline shall not be later than 28 February 2008.

The Member States shall adjust the quota of each undertak-

3.
ing accordingly.

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Article 11

National quota reallocation

Article 13

Industrial sugar

A Member State may reduce the sugar or isoglucose quota

1.
as allocated to an undertaking established on its territory:

Industrial sugar, industrial isoglucose or industrial inulin
1.
syrup shall be reserved for the production of one of the products
referred to in paragraph 2 when:

— by up to 25 % for

the marketing years 2006/2007
and 2007/2008 whilst respecting the freedom of undertak-
ings to participate in the mechanisms established by Regula-
tion (EC) No 320/2006,

(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;

and

and

— by up to 10 % for the marketing year 2008/2009 and

following.

(b)

it has been delivered to the user by 30 November of the fol-
lowing marketing year at the latest.

2. Member States may transfer quotas between undertakings in
accordance with the rules laid down in Annex V and taking into
consideration the interests of each of the parties concerned, par-
ticularly sugar beet and cane growers.

2.
In accordance with the procedure referred to in Article 39(2)
the Commission shall draw up a list of products for the produc-
tion of which industrial sugar, industrial isoglucose or industrial
inulin syrup is used.

3.
The quantities reduced pursuant to paragraphs 1 and 2 shall
be allocated by the Member State in question to one or more
undertakings on its territory, whether or not holding a quota.

The list shall in particular include:

CHAPTER 3

Out-of-quota production

Article 12

Scope

The sugar, isoglucose or inulin syrup produced during a market-
ing year in excess of the quota referred to in Article 7 may be:

(a) used for the processing of certain products as referred to in

Article 13;

(b) carried forward to the quota production of the next market-

ing year, in accordance with Article 14,

(c) used for the specific supply regime for the outermost regions,
in accordance with Title II of Regulation (EC) No 247/2006;

or

(d) exported within the quantitative limit fixed in accordance
with the procedure referred to in Article 39(2) respecting the
commitments resulting from agreements concluded under
Article 300 of the Treaty.

Other quantities shall be subject to the surplus amount referred
to in Article 15.

(a) bioethanol, alcohol, rum, live yeast and quantities of syrups
for spreading and those to be processed into ‘Rinse
appelstroop’;

(b) certain industrial products without sugar content but the
processing of which uses sugar, isoglucose or inulin syrup;

(c)

certain products of the chemical or pharmaceutical industry
which contain sugar, isoglucose or inulin syrup.

3.
A production refund may be granted on the products listed
in Article 1(1)(b) to (e) if surplus sugar or imported sugar, surplus
isoglucose or surplus inulin syrup is not available at a price cor-
responding to the world price for the manufacturing of products
referred to in paragraph 2(b) and (c) of this Article.

The production refund shall be fixed taking into account in par-
ticular 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 available on the Com-
munity market or the reference price if there is no surplus sugar.

Article 14

Carry forward of surplus sugar

1.
Each undertaking may decide to carry forward all or part of
its production in excess of its sugar quota, its isoglucose quota
or its inulin syrup quota to be treated as part of the next market-
ing year’s production. Without prejudice to paragraph 3, that
decision shall be irrevocable.

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Undertakings which take the decision referred to in para-

2.
graph 1 shall:

(a)

inform the Member State concerned before a date to be deter-
mined by this Member State:

— between 1 February and 30 June of the current market-
ing year for quantities of cane sugar being carried
forward,

— between 1 February and 15 April of the current market-
ing year for others quantities of sugar or inulin syrup
being carried forward;

(b) undertake to store such quantities at their own expense until

the end of the current marketing year.

3.
If an undertaking’s definitive production in the marketing
year concerned was less than the estimate made when the deci-
sion in accordance with paragraph 1 was taken, the quantity car-
ried forward may be adjusted retroactively by 31 October of the
following marketing year at the latest.

4.
The quantities carried forward shall be deemed to be the
first quantities produced under the quota of the following mar-
keting year.

CHAPTER 4

Market management

Article 16

Production charge

1.
As from the marketing year 2007/2008, a production
charge shall be levied on the sugar quota, the isoglucose quota
and the inulin syrup quota held by undertakings producing sugar,
isoglucose or inulin syrup.

The production charge shall be set at EUR 12,00 per tonne
2.
of the quota sugar and quota inulin syrup. For isoglucose, the pro-
duction charge shall be set at 50 % of the charge applicable to
sugar.

3.
The totality of the production charge paid in accordance
with paragraph 1 shall be charged by the Member State to the
undertakings on its territory according to the quota held during
the marketing year concerned.

Payments shall be made by the undertakings by the end of Feb-
ruary of the relevant marketing year at the latest.

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

Article 15

Surplus amount

Article 17

Approved operators

1.

A surplus amount shall be levied on quantities of:

(a)

surplus sugar, surplus isoglucose and surplus inulin syrup
produced during any marketing year, except quantities car-
ried forward to the quota production of the following mar-
keting year and stored in accordance with Article 14 or
quantities referred to in Article 12(c) and (d);

On request, Member States shall grant an approval to an
1.
undertaking producing sugar, isoglucose or inulin syrup or to an
undertaking that processes these products into a product included
in the list referred to in Article 13(2) provided that
the
undertaking:

(a) proves his professional production capacities;

(b)

industrial sugar, industrial isoglucose and industrial inulin
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);

(b) agrees to provide any information and to be subject to con-

trols related to this Regulation;

(c)

is not subject to suspension or withdrawal of the approval.

(c)

sugar, isoglucose and inulin syrup withdrawn from the mar-
ket in accordance with Article 19 and for which the obliga-
tions provided for in Article 19(3) are not met.

2.
The approved undertakings shall provide the Member State
in whose territory the harvest of beet, cane or the refining takes
place, with the following information:

The surplus amount shall be fixed in accordance with the
2.
procedure referred to in Article 39(2) at a sufficiently high level
in order to avoid the accumulation of quantities referred to in
paragraph 1.

3.
The surplus amount paid in accordance with paragraph 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.

(a)

the quantities of beet or cane for which a delivery contract
has been concluded, as well as the corresponding estimated
yields of beet or cane, and sugar per hectare;

(b) data regarding provisional and actual sugar beet, sugar cane
and raw sugar deliveries, and regarding sugar production and
statements of sugar stocks;

(c) quantities of white sugar sold and corresponding prices

and conditions.

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Article 18

Private storage and intervention

Article 19

Withdrawal of sugar

If the average Community price recorded is below the ref-
1.
erence price, during a representative period, and is likely to remain
at that level, taking into account the market situation, aid for pri-
vate storage of white sugar may be granted to undertakings which
are allocated a sugar quota.

2.
Throughout the marketing years 2006/2007, 2007/2008,
2008/2009 and 2009/2010, the intervention agency designated
by each sugar-producing Member State shall buy in, up to a total
quantity of 600 000 tonnes, expressed in white sugar, per mar-
keting year for the Community, any white or raw sugar offered
to it provided that the sugar concerned:

— has been produced under quota and manufactured from beet

or cane harvested in the Community,

— has been the subject of a storage contract concluded between

the seller and the intervention agency.

Intervention agencies shall buy in at 80 % of the reference price
fixed in Article 3 for the marketing year following the marketing
year during which the offer is lodged. If the quality of the sugar
differs from the standard quality for which the reference price is
fixed, this price shall be increased or reduced accordingly.

3.
Intervention agencies may sell sugar only at a price which
is higher than the reference price fixed for the marketing year in
which the sale takes place.

However, it may be decided in accordance with the procedure
referred to in Article 39(2), whilst respecting the commitments
resulting from agreements concluded under Article 300 of the
Treaty, that intervention agencies:

(a) may sell sugar at a price equal to or lower than the reference
price referred to in the first subparagraph if the sugar is
intended:

— for use as animal feed,

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 commitments 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 inulin syrup may be withdrawn
from the market until the beginning of the following marketing
year.

In that case, the traditional supply need for refining imported raw
sugar referred to in Article 29(1) of this Regulation shall be
reduced by the same percentage for the marketing year concerned.

2.
The withdrawal percentage referred to in paragraph 1 shall
be determined by 31 October of the marketing year concerned at
the latest on the basis of expected market trends during that mar-
keting year.

3.
Each undertaking provided with a quota shall store at its
own expense during the period of withdrawal the quantities of
sugar corresponding to the application of the percentage referred
to in paragraph 1 to its production under quota for the market-
ing year concerned.

The sugar quantities withdrawn during a marketing year shall be
treated as the first quantities produced under quota for the fol-
lowing marketing year. However,
the
expected sugar market trends, it may be decided, in accordance
with the procedure referred to in Article 39(2), to consider, for the
current and/or the following marketing year, all or part of the
withdrawn sugar, isoglucose or inulin syrup as:

taking into account

— surplus sugar, surplus isoglucose or surplus inulin syrup
available to become industrial sugar, industrial isoglucose
or industrial inulin syrup,

or

or

— for export, either without further processing or after
processing into products listed in Annex I to the Treaty
or into goods listed in Annex VII to this Regulation.

(b) are to make unprocessed sugar held by them available, for
human consumption on the internal market of the Commu-
nity, to charitable organisations — recognised by the Mem-
ber State concerned or by the Commission in cases where a
Member State has not recognised any such organisation — at
a price which is lower than the current reference price or free
of charge for the distribution as part of individual emergency
aid operations.

— temporary quota production of which a part may be reserved
for export respecting commitments of the Community result-
ing from agreements concluded under Article 300 of the
Treaty.

If sugar supply in the Community is inadequate, it may be
4.
decided,
in accordance with the procedure referred to in
Article 39(2), that a certain quantity of withdrawn sugar, isoglu-
cose and inulin syrup may be sold on the Community market
before the end of the period of withdrawal.

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Article 20

Storage under different measures

Sugar stored under one of the measures referred to in Article 14,
Article 18 or Article 19 during a marketing year may not be sub-
ject to private or public storage under any other of those
provisions.

TITLE III

TRADE WITH THIRD COUNTRIES

CHAPTER 1

Common provisions on imports and exports

Article 21

Combined Nomenclature

The general rules for interpreting the Combined Nomenclature
and the special rules for its application shall apply to the tariff
classification of products covered by this Regulation. The tariff
nomenclature resulting from the application of this Regulation
shall be included in the Common Customs Tariff.

Article 22

General principles

Unless otherwise provided for in this Regulation or in provisions
adopted pursuant thereto, the following shall be prohibited in
trade with third countries:

(a)

the levying of any charge having equivalent effect to a cus-
toms duty;

(b)

the application of any quantitative restriction or measure
having equivalent effect.

Article 23

Export and import licences

Licences shall be issued by the Member States to any appli-
2.
cant, irrespective of his place of establishment in the Community,
and without prejudice to measures taken for the application of
Articles 28 and 32 of this Regulation, of Article 12(5) of Council
Regulation (EC) No 980/2005 of 27 June 2005 applying a scheme
of generalised tariff preferences (1) and the application of agree-
ments concluded in accordance with Article 133 or Article 300
of the Treaty.

Import and export licences shall be valid throughout the

3.
Community.

Licences shall be issued subject to the lodging of a security guar-
anteeing that the products are imported or exported during the
term of validity of the licence. Except in cases of force majeure, the
security shall be forfeited in whole or in part if the import or
export is not carried out, or is carried out only partially, within
that period.

The terms of validity of the licences shall be fixed in accor-

4.
dance with the procedure referred to in Article 39(2).

Article 24

Inward processing arrangements

To the extent necessary for the proper functioning of the com-
mon organisation of the markets in the sugar sector, the use of
inward processing arrangements for the products listed in
Article 1(1) may be fully or partially prohibited in accordance
with the procedure referred to in Article 39(2).

Article 25

Safeguard measure

1.
If, by reasons of imports or exports, the Community mar-
ket in one or more of the products listed in Article 1(1) is affected
by, or is threatened with, serious disturbance likely to jeopardise
the achievement of the objectives set out in Article 33 of the
Treaty, appropriate measures respecting the Communities’ inter-
national engagements may be applied in trade until such distur-
bance or threat has ceased.

2.
If the situation referred to in paragraph 1 arises, the Com-
mission shall, at the request of a Member State or on its own ini-
tiative, decide upon the necessary measures.

If the Commission receives a request from a Member State, it shall
take a decision thereon within three working days following
receipt of the request.

1.
Imports into the Community, or exports therefrom, of any
of the products listed in Article 1(1), except those under point (h),
shall be subject to presentation of an import or export licence.
However, derogations may be provided for if licences are not
required for the management of certain imports of sugar.

The Member States shall be notified of such measures, which shall
be immediately applicable.

(1) OJ L 169, 30.6.2005, p. 1.

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3. Measures decided on by the Commission pursuant to para-
graph 2 may be referred to the Council by any Member State
within three working days of the date on which they were noti-
fied. The Council shall meet without delay. It may, acting by quali-
fied majority, amend or repeal the measures in question within
one month following the date on which they were referred to the
Council.

Imports made at a price below the level notified by the
2.
Community to the World Trade Organisation (‘the trigger price’)
may be subject to an additional import duty.

The import prices to be taken into consideration for imposing
that additional import duty shall be determined on the basis of the
cif import prices of the consignment under consideration.

4.
However measures applying to Members of the WTO
adopted pursuant to this Article shall be applied on the basis of
Council Regulation (EC) No 3285/94 of 22 December 1994 on
the common rules for imports (1).

Cif import prices shall be checked to that end against the repre-
sentative prices for the product on the world market or on the
Community import market for that product.

CHAPTER 2

Provisions applicable to imports

Article 26

Import duties

1.
Unless this Regulation provides otherwise, the rates of
import duty in the Common Customs Tariff shall apply to the
products listed in Article 1(1).

2.
Notwithstanding paragraph 1, the Commission may sus-
pend in whole or in part for certain quantities the application of
import duties on the following products to ensure that the Com-
munity market is adequately supplied by means of imports from
third countries:

— raw sugar for refining falling within CN codes 1701 11 10

and 1701 12 10,

— molasses falling within CN code 1703.

In order to guarantee the supply necessary for the manufac-
3.
turing of products referred to in Article 13(2), the Commission
may suspend in whole or in part for certain quantities the appli-
cation of import duties on sugar falling within CN code 1701
and isoglucose falling within CN codes 1702 30 10, 1702 40 10,
1702 60 10 and 1702 90 30.

Article 27

Management of imports

1.
In order to prevent or counteract adverse effects on the mar-
ket of the Community which may result from imports of certain
products listed in Article 1(1), imports of one or more of such
products at the rate of duty laid down in the Common Customs
Tariff shall be subject to the payment of an additional import duty
if the conditions to be determined pursuant to Article 40(1)(e) are
fulfilled, unless the imports are unlikely to disturb the Commu-
nity market, or where the effects would be disproportionate to the
intended objective.

(1) OJ L 349, 31.12.1994, p. 53. Regulation as last amended by Regula-

tion (EC) No 2200/2004 (OJ L 374, 22.12.2004, p. 1).

If the volume of imports in any year in which the adverse
3.
effects referred to in paragraph 1 arise or are likely to arise exceeds
a level based on market access opportunities defined as the per-
centage of the corresponding domestic consumption during the
three previous years (‘the trigger volume’), an additional import
duty may also be imposed.

Article 28

Tariff quotas

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.

2.
Tariff quotas shall be administered in a manner which
avoids any discrimination between the operators concerned, by
applying one of the following methods or a combination of them
or another appropriate method:

(a) a method based on the chronological order of the lodging of

applications (‘first come, first served’ principle);

(b) a method of distribution in proportion to the quantities
requested when the applications were lodged (using the
‘simultaneous examination method’);

(c) a method based on taking traditional trade patterns into

account (using the ‘traditional/new arrival method’).

3.
The method of administration adopted shall, where appro-
priate, give due weight to the supply requirements of the Com-
munity market and the need to safeguard the equilibrium of that
market.

Article 29

Traditional supply need for refining

1.
Notwithstanding Article 19(1), a traditional supply need of
sugar for refining is fixed for the Community at 1 796 351 tonnes
per marketing year, expressed in white sugar.

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the marketing

2007/2008
years
During
and 2008/2009, the traditional supply need shall be distributed
as follows:

2006/2007,

— 296 627 tonnes for France,

— 291 633 tonnes for Portugal,

— 19 585 tonnes for Slovenia,

— 59 925 tonnes for Finland,

— 1 128 581 tonnes for the United Kingdom.

The traditional supply need referred to in the first subpara-

2.
graph of paragraph 1 shall be increased:

(a) by 50 000 tonnes in the marketing year 2007/2008 and by
100 000 tonnes as from the marketing year 2008/2009.
These quantities shall be made available to Italy in the mar-
keting years 2007/2008 and 2008/2009;

(b) by 30 000 tonnes as from the marketing year 2006/2007
and by a supplementary 35 000 tonnes as from the market-
ing year in which the sugar quota has been reduced by at
least 50 %.

The quantities referred to in point (b) of the first subparagraph
shall concern raw cane sugar and shall be reserved for the mar-
keting years 2006/2007, 2007/2008 and 2008/2009 for the sole
sugar beet processing plant at work in 2005 in Portugal. This pro-
cessing plant is deemed to be a full time refiner.

Import licences for sugar for refining shall be issued only to
3.
full-time refiners provided that the concerned quantities do not
exceed the quantities that may be imported in the framework of
the traditional supply need referred to in paragraphs 1 and 2. The
licences in question 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.

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.

The application of import duties on cane sugar for refining
4.
falling within CN code 1701 11 10 originating in the States
referred to in Annex VI shall be suspended for the complemen-
tary quantity which is needed to allow an adequate supply of the
full-time refiners for each of the marketing years 2006/2007,
2007/2008 and 2008/2009.

The complementary quantity shall be fixed in accordance with the
procedure referred to in Article 39(2), based on the balance
between the traditional supply need referred to in paragraph 1 of
this Article and the forecast supply of sugar for refining for the
marketing year concerned. This balance may be revised in accor-
dance with the procedure referred to in Article 39(2) during the
marketing year and may be based on historic flat-rate estimates of
the raw sugar intended for consumption.

Article 30

Guaranteed price

1.
The guaranteed prices fixed for the ACP/Indian sugar shall
apply for import of standard quality raw and white sugar from:

(a)

the least developed countries under the arrangements referred
to in Articles 12 and 13 of Regulation (EC) No 980/2005;

(b)

the States listed in Annex VI to this Regulation for the
complementary quantity referred to in Article 29(4).

2.
Applications for import licences for sugar benefiting from
a guaranteed price shall be accompanied by an export licence
issued by the authorities of the exporting country certifying the
compliance of the sugar with the rules provided for in the agree-
ments concerned.

Article 31

Sugar Protocol Commitments

In accordance with the procedure referred to in Article 39(2),
measures may be adopted to ensure that the ACP/Indian sugar is
imported into the Community under the conditions set out in
Protocol 3 to Annex V to the ACP-EC Partnership Agreement and
the Agreement on cane sugar between the European Community
and the Republic of India. Those measures may, if necessary,
derogate from Article 29 of this Regulation.

CHAPTER 3

Provisions applicable to exports

Article 32

Scope of export refunds

1.
To the extent necessary to enable the products listed in
Article 1(1) (b) and (c) to be exported without further processing
or in the form of processed products listed in Annex VII, on the
basis of world market quotations or prices of sugar and within the
limits resulting from agreements concluded in accordance with
Article 300 of the Treaty, the difference between those quotations
or prices and prices in the Community may be covered by export
refunds.

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Provision may be made for export refunds to be granted on
2.
the products listed in Article 1(1)(d) and (g) and exported without
further processing or in the form of processed products listed in
Annex VII.

Export refunds fixed at regular intervals, may, if necessary, be
amended in the interval by the Commission, at the request either
of a Member State or on its own initiative.

In that case, the amount of the refund per tonne of dry matter
shall be fixed taking particular account of:

3.
Export refunds on products referred to in Article 32(1)
and (2) and exported without further processing shall be granted
only on application and on presentation of an export licence.

(a)

the refund applicable to exports of products falling within
CN code 1702 30 91;

(b)

the refund applicable to exports of the products listed in
Article 1(1)(c);

refund applicable to products

The export
referred to in
Article 32(1) and (2) exported without further processing shall be
that applicable on the day of application for the licence and, in the
case of a differentiated refund, that applicable on the same day:

(c)

the economic aspects of the planned exports.

(a)

for the destination indicated on the licence,

3.
The export refund for raw sugar of the standard quality
defined in Annex I may not exceed 92 % of that granted for white
sugar. However, this limit shall not apply to export refunds to be
fixed for candy sugar.

or

4.
Export refunds on the products exported in the form of pro-
cessed products listed in Annex VII may not be higher than those
applicable to the same products exported without
further
processing.

Article 33

Export refund fixation

The quantities which may be exported with an export

1.
refund shall be allocated by the method which:

(a)

is most suited to the nature of the product and the situation
on the market in question, allowing the most efficient pos-
sible use of the resources available, account being taken of
the efficiency and structure of Community exports without
creating discrimination between the operators concerned and
notably between large and small operators;

(b)

is least cumbersome administratively for operators, account
being taken of administration requirements.

2.
Export refunds shall be the same for the whole Community.
They may vary according to destination, where the world market
situation or the specific requirements of certain markets make this
necessary.

Export refunds shall be fixed in accordance with the procedure
referred to in Article 39(2).

Refunds may be fixed:

(a) at regular intervals;

(b) where appropriate, for the actual destination if this differs
from the destination indicated on the licence, in which case,
the amount applicable shall not exceed the amount appli-
cable to the destination indicated on the licence.

4.
The scope of paragraph 3 may be extended to apply to the
products in question that are exported in the form of processed
products listed in Annex VII, in accordance with the procedure
referred to in Article 16(2) of Council Regulation (EC)
No 3448/93 of 6 December 1993 laying down the trade arrange-
ments applicable to certain goods resulting from the processing
of the agricultural products (1). Detailed implementing rules shall
be adopted in accordance with that procedure.

Article 34

Export limits

Observance of the volume commitments resulting from the agree-
ments concluded in accordance with Article 300 of the Treaty
shall be ensured on the basis of the export licences issued for the
reference periods which apply to the products concerned.

Article 35

Export restrictions

1. When the quotations or prices on the world market of one
or more of the products listed in Article 1(1) reach a level that dis-
rupts or threatens to disrupt the availability of supply on the
Community market and where that situation is likely to continue
and deteriorate, appropriate measures may be taken in case of
extreme emergency.

(b) by invitation to tender for products in respect of which pro-

vision was made for that procedure in the past.

(1) OJ L 318, 20.12.1993, p. 18. Regulation as last amended by Regula-

tion (EC) No 2580/2000 (OJ L 298, 25.11.2000, p. 5).

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2. Measures adopted pursuant to this Article shall be applied
having regard to the obligations arising from agreements con-
cluded in accordance with Article 300(2) of the Treaty.

— the situation is likely to continue disturbing or threatening to

disturb the market,

TITLE IV

GENERAL, TRANSITIONAL AND FINAL PROVISIONS

CHAPTER 1

General provisions

Article 36

State aid

1.
Unless this Regulation provides otherwise, Articles 87, 88
and 89 of the Treaty shall apply to the production of and trade in
the products listed in Article 1(1), except for the State aid laid
down in paragraphs 2 and 3 of this Article.

2. Member States which reduce their sugar quota by more than
50 %, may grant temporary State aid during the period for which
the transitional aid for beet growers is being paid in accordance
with chapter 10f of Council Regulation (EC) No 319/2006 of
20 February 2006 amending Regulation (EC) No 1782/2003
establishing common rules for direct support schemes under the
common agricultural policy and establishing certain support
scheme for farmers (1). The Commission shall, on the basis of an
application by any Member State concerned, decide on the total
amount of the State aid available for this measure.

For Italy, the temporary aid referred to in the first subparagraph,
shall not exceed a total of EUR 11 per marketing year per tonne
of sugar beet to be granted to sugar beet growers and for the
transport of sugar beet.

Finland may grant aid up to EUR 350 per hectare per mar-

3.
keting year to sugar beet growers.

The Member States concerned shall inform the Commission
4.
within 30 days of the end of each marketing year of the amount
of State aid actually granted in that marketing year.

Article 37

Disturbance clause

When a substantial rise or fall in prices is recorded on the Com-
munity market and:

— all measures available under the other Articles of this Regu-

lation have been taken,

and

(1) See page 32 of this Official Journal.

further necessary measures may be taken.

Article 38

Communication

Member States and the Commission shall provide each other with
any information necessary for the application of this Regulation
and for complying with the international obligations concerning
the products referred to in Article 1(1).

Article 39

Management Committee for Sugar

The Commission shall be assisted by a Management Com-

1.
mittee for Sugar (hereinafter referred to as ‘the Committee’).

2. Where reference is made to this paragraph, Articles 4 and 7
of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be set at one month.

3.

The Committee shall adopt its Rules of Procedure.

Article 40

Implementing rules

1.
Detailed rules for the implementation of this Regulation
shall be adopted in accordance with the procedure referred to in
Article 39(2). They shall include in particular:

(a) detailed rules for the application of Articles 3 to 6, in par-
ticular 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);

(b) detailed rules for the application of Articles 7 to 10;

(c) detailed rules for the application of Articles 12, 13, 14
and 15, and in particular the conditions for granting produc-
tion refunds, the amounts of such refunds and the eligible
quantities;

(d) detailed rules regarding the establishment and the communi-
cations of the amounts referred to in Articles 8, 9, 15 and 16;

(e) detailed rules for the application of Articles 26, 27 and 28.

These rules may include in particular:

(i)

any suspension referred to in Article 26(2) and (3) which
could be determined by a tendering procedure;

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(ii)

the specification of the products to which additional
import duties may be applied under Article 27;

(v)

the percentage of withdrawn quota sugar referred to in
Article 19(1);

(iii) the annual tariff quotas under Article 28(1), if necessary
suitably phased over the year, and the determination of
the administrative method to be used which, where
appropriate, shall include:

(vi) the conditions for the payment of the minimum price in
case the withdrawn sugar is being sold on the Commu-
nity market under Article 19(4);

— guarantees covering the nature, provenance and ori-

gin of the product;

— recognition of the document used for verifying the

guarantees referred to in the first indent;

— the conditions under which import licences shall be

issued and their term of validity;

(e)

rules for the application of the derogation provided for in
Article 23(1);

(f) detailed rules for the application of Articles 29 and 30 and,
in particular, to comply with international agreements:

(i)

amendments
Article 2(11);

to the definition provided for

in

(f) detailed rules for the application of Articles 36 and 38;

(g) detailed rules for the application of the provisions of Chap-
ter 3 of Title III. These rules may include in particular:

(i)

detailed rules on the redistribution of exportable quan-
tities which have not been allocated or utilised;

(ii) amendments to Annex VI;

(g) measures in application of Article 37.

Article 41

Amendment to Regulation (EC) No 247/2006

(ii)

the appropriate measures as referred to in Article 35.

Regulation (EC) No 247/2006 is hereby amended as follows:

The following may in addition be adopted in accordance

2.
with the procedure referred to in Article 39(2):

(a)

criteria to be applied by the sugar undertakings when allo-
cating among beet sellers the quantities of beet to be covered
by pre-sowing delivery contracts as referred to in Article 6(4);

(b) amendments to Annexes I and II;

(c) a derogation from the dates laid down in Article 14(2);

(d) detailed rules for the application of Articles 16 to 19 and, in

particular:

(i)

the supplementary information to be submitted by the
approved operators;

(ii)

the criteria for sanctions, suspensions and withdrawal of
approval of the operators;

(iii) the granting of aids and the amount of aids for private

storage provided for in Article 18(1);

1) The following paragraph shall be added to Article 16:

‘3.
France may grant national aid for the sugar sector in
the French outermost regions, of up to EUR 60 million for
the marketing year 2005/2006 and up to EUR 90 million for
the marketing years 2006/2007 onwards.

Articles 87, 88 and 89 of the Treaty shall not apply to the aid
referred to in this paragraph.

France shall inform the Commission within 30 days of the
end of each marketing year of the amount of aid actually
granted.’;

2) Article 23(2) shall be replaced by the following:

‘2.
The Community shall finance the measures provided
for in Titles II and III of this Regulation up to an annual maxi-
mum as follows:

Financial
year
2007

Financial
year
2008

Financial
year
2009

(million EUR)

Financial
year 2010
and fur-
ther

(iv) the minimum quality and quantity requirements, the
price increases and reductions applicable, and the pro-
cedures and requirements for taking over by the inter-
intervention buying in
vention agencies, and for
provided for in Article 18(2);

French overseas
departments

126,6

133,5

140,3

143,9

Azores and Madeira

77,9

78,0

78,1

78,2

Canary Islands

127,3

127,3

127,3

127,3’

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Article 42

Specific measures

that may be produced under quota, and the transition from the
rules provided for in Regulation (EC) No 1260/2001 to those
established by this Regulation,

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 39(2).

and

Such measures may derogate from provisions of this Regulation,
but only to the extent that, and for such a period, as is strictly
necessary.

(b)

to ensure compliance by the Community with its interna-
tional obligations with regard to C sugar referred to in
Article 13 of Regulation (EC) No 1260/2001 while avoiding
any disruption of the sugar market in the Community.

Article 43

Financial provisions

Regulation (EC) No 1258/1999 and, as from 1 January 2007,
Regulation (EC) No 1290/2005, and the provisions adopted for
the implementation thereof shall apply to the expenditure
incurred by the Member States in carrying out obligations under
this Regulation.

Article 45

Repeal

Regulation (EC) No 1260/2001 shall be repealed.

CHAPTER 2

Transitional and final provisions

Article 44

Transitional measures

In accordance with the procedure referred to in Article 39(2),
measures may be adopted:

(a)

to facilitate the transition from the market situation in the
marketing year 2005/2006 to the market situation in the mar-
keting year 2006/2007, in particular by reducing the quantity

Article 46

Entry into force

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

It shall apply from the marketing year 2006/2007. However,
Articles 39, 40, 41 and 44 shall apply from the date of entry into
force of this Regulation. Title II shall apply until the end of mar-
keting year 2014/2015.

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

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ANNEX I

STANDARD QUALITIES

POINT I

Standard quality for sugar beet

Standard quality beet shall:

(a)

be of sound and fair merchantable quality;

(b) have a sugar content of 16 % at the reception point.

POINT II

Standard quality for white sugar

1. White sugar of the standard quality shall have the following characteristics:

(a)

be of sound, genuine and merchantable quality; dry, in homogeneous granulated crystals, free-flowing;

(b) minimum polarisation: 99,7°;

(c) maximum moisture content: 0,06 %;

(d) maximum invert sugar content: 0,04 %;

(e)

the number of points determined under paragraph 2 shall not exceed a total of 22, nor:

15 for the ash content,

9 for the colour type, determined using the method of the Brunswick Institute of Agricultural Technology (here-
inafter referred to as ‘the Brunswick method’),

6 for the colouring of the solution, determined using the method of the International Commission for Uniform
Methods of Sugar Analysis (hereinafter referred to as ‘the ICUMSA method’).

2. One point shall correspond to:

(a) 0,0018 % of ash content determined using the ICUMSA method at 28° Brix,

(b) 0,5 units of colour type determined using the Brunswick method,

(c) 7,5 units of colouring of the solution determined using the ICUMSA method.

3.

The methods for determining the factors referred to in paragraph 1 shall be those used for determining those factors
under the intervention measures.

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POINT III

Standard quality for raw sugar

1.

2.

Raw sugar of the standard quality shall be sugar with a yield in white sugar of 92 %.

The yield of raw beet sugar shall be calculated by subtracting from the degree of polarisation of that sugar:

(a)

its percentage ash content multiplied by four;

(b)

its percentage invert sugar content multiplied by two;

(c)

the number 1.

3.

The yield of raw cane sugar shall be calculated by subtracting 100 from the degree of polarisation of that sugar mul-
tiplied by two.

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ANNEX II

PURCHASE TERMS FOR BEET

POINT I

For the purposes of this Annex ‘Contracting Parties’ means:

(a)

sugar undertakings (hereinafter referred to as ‘manufacturers’),

and

(b) beet sellers (hereinafter referred to as ‘sellers’).

POINT II

1. Delivery contracts shall be made in writing for a specified quantity of quota beet.

2. Delivery contracts shall specify whether an additional quantity of beet may be supplied, and under what terms.

POINT III

1. Delivery contracts shall indicate the purchase prices for the quantities of beet referred to in the first indent and, if appro-
priate, second indent, of Article 6(3). In the case of the quantities referred to in the first indent of Article 6(3), those
prices may not be lower than the minimum price for quota beet referred to in Article 5(1).

2. Delivery contracts shall lay down a fixed sugar content for beet. They shall include a conversion scale showing the dif-
ferent sugar contents and factors for converting the quantities of beet supplied into quantities corresponding to the
sugar content shown in the delivery contract.

The scale shall be based on the yields corresponding to the different sugar contents.

3. Where a seller has signed a delivery contract with a manufacturer for the delivery of beet as referred to in the first indent
of Article 6(3), all deliveries by that seller, converted in accordance with paragraph 2 of this Point, shall be considered
to be deliveries within the meaning of the first indent of Article 6(3), up to the quantity of beet specified in the delivery
contract.

4. Manufacturers producing a quantity of sugar lower than their quota beet for which they have signed pre-sowing deliv-
ery contracts under the first indent of Article 6(3), shall distribute the quantity of beet corresponding to any additional
production up to the amount of their quota among the sellers with whom they have signed pre-sowing delivery con-
tracts within the meaning of the first indent of Article 6(3).

Agreements within the trade may derogate from this provision.

POINT IV

1. Delivery contracts shall contain provisions concerning the staggering and normal duration of beet deliveries.

2.

Provisions referred to in paragraph 1 shall be those applicable during the previous marketing year, taking account of
the level of actual production; agreements within the trade may derogate therefrom.

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1. Delivery contracts shall provide for beet collection places.

POINT V

2. Where sellers and manufacturers have already signed a delivery contract for the previous marketing year, the collection
places agreed upon by them for deliveries during that marketing year shall remain in operation. Agreements within the
trade may derogate from this provision.

3. Delivery contracts shall provide that loading and transport costs from the collection places are to be borne by the manu-
facturer subject to special agreements based on local rules or usages in operation before the previous marketing year.

4. However, in Denmark, Greece, Spain, Ireland, Portugal, Finland and the United Kingdom, where beet is delivered free-
at-factory, delivery contracts shall require manufacturers to contribute to loading and transport costs and shall stipu-
late the percentage or amounts.

1. Delivery contracts shall provide for reception points for beet.

POINT VI

2. Where sellers and manufacturers have already signed a delivery contract for the previous marketing year, the reception
points agreed upon by them for deliveries during that marketing year shall remain in operation. Agreements within the
trade may derogate from this provision.

POINT VII

1. Delivery contracts shall provide for the sugar content to be determined using the polarimetric method. A sample of the

beet shall be drawn at the time of reception.

2. Agreements within the trade may provide for samples to be drawn at another stage. In such cases, the delivery contract
shall provide for a correction to compensate for any drop in the sugar content between the reception and the drawing
of the sample.

POINT VIII

Delivery contracts shall provide for gross weight, tare and sugar content to be determined using one of the following
procedures:

(a)

jointly, by the manufacturer and the beet growers’ trade organisation, if an agreement within the trade so provides;

(b) by the manufacturer, under the supervision of the beet growers’ trade organisation;

(c)

by the manufacturer, under the supervision of an expert recognised by the Member State concerned, provided the seller
defrays the costs thereof.

POINT IX

1. Delivery contracts shall require manufacturers to do one or more of the following for the whole quantity of beet

delivered:

(a)

to return the fresh pulp from the tonnage of beet delivered free of charge to the seller, ex factory;

(b)

to return part of that pulp, pressed, dried or dried and molassed, free of charge to the seller, ex factory;

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(c)

to return the pulp, pressed or dried, to the seller, ex factory; in this case, the manufacturer may require the seller
to pay the pressing or drying costs;

(d)

to pay the seller compensation which takes account of the possibilities of selling the pulp concerned.

When parts of the whole quantity of beet delivered are subject to different treatment, the delivery contract shall impose
more than one of the obligations provided for in the first subparagraph.

2. Agreements within the trade may provide for pulp to be delivered at a stage other than that referred to in para-

graph 1(a), (b) and (c).

POINT X

1. Delivery contracts shall fix the time limits for any advance payments and for payment of the purchase price for beet.

2.

The time limits referred to in paragraph 1 shall be those valid during the previous marketing year. Agreements within
the trade may derogate from this provision.

Where delivery contracts lay down rules covering matters which are dealt with in this Annex, or where they contain pro-
visions governing other matters, their provisions and effects shall not conflict with this Annex.

POINT XI

POINT XII

1. Agreements within the trade as described in Article 2(11)(b) shall contain arbitration clauses.

2. Where agreements within the trade at Community, regional or local level lay down rules covering matters which are
dealt with in this Regulation, or where they contain provisions governing other matters, their provisions and effects
shall not conflict with this Annex.

3. Agreements referred to in paragraph 2 lay down, in particular:

(a)

rules on the distribution to sellers of quantities of beet which the manufacturer decides to buy prior to sowing, for
the manufacture of sugar within the limits of the quota;

(b)

rules on distribution as referred to in Point III(4);

(c)

the conversion scale referred to in Point III(2);

(d)

rules on the choice and supply of seeds of the varieties of beet to be produced;

(e)

the minimum sugar content of beet to be delivered;

(f)

a requirement for consultation between the manufacturer and the sellers’ representatives before the starting date
of beet deliveries is fixed;

(g)

the payment of premiums to sellers for early or late deliveries;

(h) details of:

(i)

the part of the pulp referred to in Point IX(1)(b),

(ii)

the costs referred to in Point IX(1)(c),

(iii)

the compensation referred to in Point IX(1)(d);

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(i)

the removal of pulp by the seller;

(j) without prejudice to Article 5(1), rules on how any difference between the reference price and the actual selling

price of the sugar is to be allocated between the manufacturer and sellers.

POINT XIII

Where there is no set agreement within the trade as to how the quantities of beet intended for the manufacture of sugar
within the quota limits which the manufacturer offers to buy before sowing should be allocated among the sellers, the Mem-
ber State concerned may itself lay down rules for such allocation.

Those rules may also grant to traditional sellers of beet to cooperatives delivery rights other than those which they would
enjoy if they belonged to such cooperatives.

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ANNEX III

NATIONAL AND REGIONAL QUOTAS

Member States or regions
(1)

Belgium

Czech Republic

Denmark

Germany

Greece

Spain

France (metropolitan)

French overseas departments

Ireland

Italy

Latvia

Lithuania

Hungary

Netherlands

Austria

Poland

Portugal (mainland.)

The autonomous region of the Azores

Slovakia

Slovenia

Finland

Sweden

United Kingdom

Sugar
(2)

819 812

454 862

420 746

3 416 896

317 502

996 961

3 288 747

480 245

199 260

Isoglucose
(3)

71 592

—

—

35 389

12 893

82 579

19 846

—

—

1 557 443

20 302

66 505

103 010

401 684

864 560

387 326

1 671 926

69 718

9 953

207 432

52 973

146 087

368 262

1 138 627

Total

17 440 537

—

—

137 627

9 099

—

26 781

9 917

—

42 547

—

11 872

—

27 237

507 680

(tonnes)

Inulin Syrup
(4)

215 247

—

—

—

—

—

24 521

—

—

—

—

—

—

80 950

—

—

—

—

—

—

—

—

—

320 718

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ANNEX IV

POINT I

ADDITIONAL QUOTAS FOR SUGAR

Member states

Additional quota

(tonnes)

Belgium

Czech Republic

Denmark

Germany

Greece

Spain

France (metropolitan)

Ireland

Italy

Latvia

Lithuania

Hungary

Netherlands

Austria

Poland

Portugal (mainland)

Slovakia

Slovenia

Finland

Sweden

United Kingdom

62 489

20 070

31 720

238 560

10 000

10 000

351 695

10 000

10 000

10 000

8 985

10 000

66 875

18 486

100 551

10 000

10 000

10 000

10 000

17 722

82 847

Total

1 100 000

POINT II

SUPPLEMENTARY QUOTAS FOR ISOGLUCOSE

Member states

Supplementary quota

(tonnes)

Italy

Lithuania

Sweden

60 000

8 000

35 000

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ANNEX V

DETAILED RULES ON TRANSFERS OF SUGAR OR ISOGLUCOSE QUOTAS

For the purposes of this Annex:

POINT I

(a)

‘merger of undertakings’ means the consolidation of two or more undertakings into a single undertaking;

(b)

‘transfer of an undertaking’ means the transfer or absorption of the assets of an undertaking having quota to one or
more undertakings;

(c)

(d)

‘transfer of a factory’ means the transfer of ownership of a technical unit, including all the plant required to manufac-
ture the product concerned, to one or more undertakings, resulting in the partial or total absorption of the production
of the undertaking making the transfer;

‘lease of a factory’ means the leasehold contract of a technical unit including all the plant required for the manufacture
of sugar, with a view to its operation, concluded for a period of at least three consecutive marketing years, which the
parties agree not to terminate before the end of the third marketing year, with an undertaking which is established in
the same Member State, as the factory concerned, if, after the lease takes effect, the undertaking which rents the factory
can be considered a solely sugar-producing undertaking for its entire production.

POINT II

1. Without prejudice to paragraph 2, in the event of the merger or transfer of sugar-producing undertakings or the trans-

fer of sugar factories, the quota shall be adjusted as follows:

(a)

(b)

in the event of the merger of sugar-producing undertakings, the Member States shall allocate to the undertaking
resulting from the merger a quota equal to the sum of the quotas allocated prior to the merger to the sugar-
producing undertakings concerned;

in the event of the transfer of a sugar-producing undertaking, the Member State shall allocate the quota of the
transferred undertaking to the transferee undertaking for the production of sugar or, if there is more than one
transferee undertaking, the allocation shall be made in proportion to the sugar production absorbed by each of
them;

(c)

in the event of the transfer of a sugar factory, the Member State shall reduce the quota of the undertaking trans-
ferring ownership of the factory and shall increase the quota of the sugar-producing undertaking or undertakings
purchasing the factory in question by the quantity deducted in proportion to the production absorbed.

2. Where a number of the sugar-beet or cane growers directly affected by one of the operations referred to in paragraph 1
expressly show their willingness to supply their beet or cane to a sugar-producing undertaking which is not party to
those operations, the Member State may make the allocation on the basis of the production absorbed by the under-
taking to which they intend to supply their beet or cane.

3.

In the event of closure, in circumstances other than those referred to in paragraph 1, of:

(a)

a sugar-producing undertaking;

(b) one or more factories of a sugar-producing undertaking,

the Member State may allocate the part of the quotas involved in such closure to one or more sugar-producing
undertakings.

Also in the case referred to in point (b) of the preceding subparagraph, where some of the producers concerned
expressly show their willingness to supply their beet or cane to a given sugar-producing undertaking, the Member State
may allocate the proportion of the quotas corresponding to the beet or cane concerned to the undertaking which they
intend to supply with those products.

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4. Where the derogation referred to in Article 6(6) is invoked, the Member State concerned may require the beet growers
and the sugar undertakings concerned by that derogation to include in their agreements within the trade special clauses
enabling the Member State to apply paragraphs 2 and 3 of this Point.

5.

In the event of the lease of a factory belonging to a sugar-producing undertaking, the Member State may reduce the
quota of the undertaking offering the factory for rent and allocate the portion by which the quota was reduced to the
undertaking which rents the factory in order to produce sugar in it.

If the lease is terminated during the period of three marketing years referred to in Point I (d) the adjustment of quota
under the first subparagraph of this paragraph shall be cancelled retroactively by the Member State as at the date on
which the lease took effect. However, if the lease is terminated by reason of force majeure, the Member State shall not be
bound to cancel the adjustment.

6. Where a sugar-producing undertaking can no longer ensure that it meets its obligations under Community legislation
towards the sugar-beet or cane producers concerned, and where that situation has been ascertained by the competent
authorities of the Member State concerned, the latter may allocate for one or more marketing years the part of the quo-
tas involved to one or more sugar-producing undertakings in proportion to the production absorbed.

7. Where a Member State grants a sugar producing undertaking price and outlet guarantees for processing sugar beet into
ethyl alcohol, that Member State may, in agreement with that undertaking and the beet growers concerned, allocate all
or part of the sugar production quotas to one or more other undertakings for one or more marketing years.

POINT III

In the event of the merger or transfer of isoglucose-producing undertakings or the transfer of an isoglucose-producing fac-
tory, the Member State may allocate the quotas involved for the production of isoglucose to one or more other undertak-
ings, whether or not they have a production quota.

POINT IV

The measures taken pursuant to Points II and III may take effect only if the following conditions are met:

(a)

the interests of each of the parties concerned are taken into consideration;

(b)

the Member State concerned considers that they are likely to improve the structure of the beet, cane and sugar-
manufacturing sectors;

(c)

they concern undertakings established in the same territory for which the quota is set in Annex III.

POINT V

When the merger or transfer occurs between 1 October and 30 April of the following year, the measures referred to in
Points II and III shall take effect for the current marketing year.

When the merger or transfer occurs between 1 May and 30 September of the same year, the measures referred to in Points II
and III shall take effect for the following marketing year.

Where Article 10(3) is applied, Member States shall allocate the adjusted quotas by the end of February at the latest with a
view to applying them in the following marketing year.

POINT VI

Where Points II and III are applied, Member States shall inform the Commission of the adjusted quotas not later than 15 days
after the expiry of the periods referred to in Point V.

POINT VII

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ANNEX VI

STATES REFERRED TO IN ARTICLE 2(12)

Barbados

Belize

Côte d’Ivoire

Republic of the Congo

Fiji

Guyana

India

Jamaica

Kenya

Madagascar

Malawi

Mauritius

Mozambique

Saint Kitts and Nevis — Anguilla

Suriname

Swaziland

Tanzania

Trinidad and Tobago

Uganda

Zambia

Zimbabwe

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ANNEX VII

PROCESSED PRODUCTS

Description

Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk
and cream, whether or not concentrated or containing added sugar or other sweetening matter or
flavoured or containing added fruit, nuts or cocoa:

CN Code

ex 0403

0403 10

– Yoghurt:

0403 10 51 to
0403 10 99

– – Flavoured or containing added fruit, nuts or cocoa

0403 90

– Other:

0403 90 71 to
0403 90 99

– – Flavoured or containing added fruit, nuts or cocoa

ex 0710

– Vegetables (uncooked or cooked by steaming or by boiling in water), frozen:

0710 40 00

– Sweetcorn

ex 0711

– Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur
water or in other preservative solutions), but unsuitable in that state for immediate consump-
tion:

0711 90

– Other vegetables; mixtures of vegetables:

– – Vegetables:

0711 90 30

– Sweetcorn

1702 50 00

Chemically pure fructose

ex 1704

1806

ex 1901

Sugar confectionery (including white chocolate), not containing cocoa, except liquorice extract of
subheading No 1704 90 10

Chocolate and other food preparations containing cocoa

Malt extract: food preparations of flour, meal, starch or malt extract, not containing cocoa or con-
taining less than 40 % by weight of cocoa calculated on a totally defatted basis, not elsewhere
specified or included; food preparations of goods of heading Nos 0401 to 0404, not containing
cocoa or containing less than 5 % by weight of cocoa calculated on a totally defatted basis, not
elsewhere specified or included:

1901 10 00

– Preparations for infant use, put up for retail sale

1901 20 00

– Mixes and doughs for the preparations of bakers’ wares of heading No 1905

1901 90

– Other:

– – Other:

1901 90 99

– – – Other

ex 1902

Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared,
such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or
not prepared:

1902 20

– Stuffed pasta, (whether or not cooked or otherwise prepared):

– – Other:

1902 20 91

– – – Cooked

1902 20 99

– – – Other

1902 30

– Other pasta

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EN

Official Journal of the European Union

28.2.2006

CN Code

Description

1902 40

– Couscous:

1902 40 90

– – Other

1904

ex 1905

Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example,
cornflakes); cereals (other than maize (corn)) in grain form or in the form of flakes or other worked
grains (except flour and meal), pre-cooked, or otherwise prepared, not elsewhere specified
or included

Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not containing cocoa; commun-
ion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and
similar products:

1905 10 00

– Crispbread

1905 20

1905 31

1905 32

1905 40

1905 90

– Gingerbread and the like

– – Sweet biscuit

– – Waffles and wafers

– Rusks, toasted bread and similar toasted products

– Other:

– – Other:

1905 90 45

– – – Biscuits

1905 90 55

– – – Extruded or expanded products, savoury or salted

1905 90 60

– – – – With added sweetening matter

1905 90 90

– – – – Other

ex 2001

Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic
acid:

2001 90

– Other:

2001 90 30

– – Sweetcorn (Zea mays var. saccharata)

2001 90 40

– – Yams, sweet potatoes and similar edible parts of plants containing 5 % or more by weight of

starch

ex 2004

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than
products of heading No 2006:

2004 10

– Potatoes:

– – Other:

2004 10 91

– – – In the form of flour, meal or flakes

2004 90

– Other vegetables and mixtures of vegetables:

2004 90 10

– – Sweetcorn (Zea mays var. saccharata)

ex 2005

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other
than products of heading No 2006):

2005 20

– Potatoes:

2005 20 10

– – In the form of flour, meal or flakes

2005 80 00

– Sweetcorn (Zea mays var. saccharata)

ex 2101

Extracts, essences and concentrates of coffee, tea or mate and preparations with a basis of these
products or with a basis of coffee, tea or mate; roasted chicory and other roasted coffee substi-
tutes, and extracts, essences and concentrates thereof:

– Extracts, essences and concentrates of coffee and preparations with a basis of these products

or with a basis of these extracts, essences or concentrates or with a basis of coffee:

28.2.2006

EN

Official Journal of the European Union

L 58/31

CN Code

Description

– – Preparations with a basis of these extracts, essences or concentrates or with a basis of coffee:

2101 12 98

– – – Other

– Extracts, essences and concentrates, of tea or mate, and preparations with a basis of these

extracts, essences or concentrates, or with a basis of tea or mate:

– – Preparations:

2101 20 98

– – – Other

– Roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates

thereof:

– – Roasted chicory and other roasted coffee substitutes:

2101 30 19

– – – Other

– – Extracts, essences and concentrates of roasted chicory and other roasted coffee substitute:

2101 30 99

– – – Other

2105 00

Ice cream and other edible ice, whether or not containing cocoa

ex 2106

Food preparations not elsewhere specified or included:

2106 90

– Other:

2106 90 10

– – Cheese fondues

– – Other:

2106 90 92

– – – – – Containing no milk fats, sucrose, isoglucose, glucose or starch or containing, by weight,
less than 1,5 % milk fat, 5 % sucrose or isoglucose, 5 % glucose or starch

2106 90 98

– – – – – Other

2202

2205

ex 2208

Waters, including mineral waters and aerated waters, containing added sugar or other sweetening
matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of
heading No 2009

Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol.; spirits,
liqueurs and other spirituous beverages:

2208 20

– Spirits obtained by distilling grape wine or grape marc:

2208 50 91 to
2208 50 99

Geneva

2208 70

Liqueurs and cordials

2208 90 41 to
2208 90 78

– Other spirits and spirituous beverages

2905 43 00

Mannitol

2905 44

D-glucitol (sorbitol)

ex 3302

Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one
or more of these substances of a kind used as raw materials in industry; other preparations based
on odoriferous substances, of a kind used for the manufacture of beverages:

3302 10

– Of a kind used in the food or drink industries:

– – Of a kind used in the drink industries:

– – – Preparations containing all flavouring agents characterising a beverage:

– – – – – Other (of an actual alcoholic strength by volume not exceeding 0,5 %):

3302 10 29

Other

ex Chapter 38

Miscellaneous chemical products:

3824 60

Sorbitol other than that of subheading 2905 44