Commission Regulation (EC) No 493/2006 of  27 March 2006  laying down transitional measures within the framework of the reform of the common organisation of the markets in the sugar sector, and amending Regulations (EC) No 1265/2001 and (EC) No 314/2002
Date: 2006-03-27
Institutions: European Commission
Subjects: aid to agriculture, common organisation of markets, production quota, production refund, production surplus, quantitative restriction, regulation of agricultural production, sugar

28.3.2006

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Official Journal of the European Union

L 89/11

COMMISSION REGULATION (EC) No 493/2006

of 27 March 2006

laying down transitional measures within the framework of the reform of the common organisation
of the markets in the sugar sector, and amending Regulations (EC) No 1265/2001 and (EC)
No 314/2002

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

the decision to carry forward in order to facilitate the
transition between the existing regime and the new
regime.

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EC) No 318/2006 of 20
February 2006 on the common organisation of the markets in
the sugar sector (1), and in particular Article 44 thereof,

Having regard to Council Regulation (EC) No 1260/2001 of 19
June 2001 on the common organisation of the markets in the
sugar sector (2), and in particular Articles 7(5), 15(8) and 16(5)
thereof,

Whereas:

(1)

(2)

(3)

The necessary measures should be taken to facilitate the
transition in the sugar sector from the rules provided for
in Regulation (EC) No 1260/2001 to the new regime
established by Regulation (EC) No 318/2006.

the obligation to export
Following the deletion of
provided for
in Article 13 of Regulation (EC) No
1260/2001, measures should be laid down to manage
the quantities of sugar resulting from the disappearance
of this obligation and of the C sugar arrangements from
1 July 2006. These measures should comply with the
Community’s international obligations.

the quantities of sugar
To improve management of
the quota attributable to the
produced in excess of
2005/2006 marketing year, undertakings
should be
allowed to carry forward some of these quantities to
the 2006/2007 marketing year. To this end,
it should
be laid down that the carry forward in question is subject
to the application of Commission Regulation (EEC) No
65/82 of 13 January 1982 laying down detailed rules for
carrying forward sugar
to the following marketing
year (3), while allowing a certain degree of flexibility on

(1) OJ L 58, 28.2.2006, p. 1.
(2) OJ L 178, 30.6.2001, p. 1. Regulation as

last amended by
Commission Regulation (EC) No 39/2004 (OJ L 6, 10.1.2004,
p. 16).

(3) OJ L 9, 14.1.1982, p. 14. Regulation as last amended by Regulation

(EC) No 2223/2000 (OJ L 253, 7.10.2000, p. 15).

(4)

(5)

(6)

The quantity of non-quota sugar in the 2005/2006
marketing year, which may be neither carried over nor
exported, should be considered to be non-quota sugar in
the 2006/2007 marketing year in order to allow its
through the uses provided for in respect of
disposal
this sugar by Regulation (EC) No 318/2006, as well as,
taking into account the exceptional conditions of the
transition between those marketing years,
its use in
animal feed.

For control purposes and, where applicable, the appli-
cation of penalties, the proportion of C sugar production
in the 2005/2006 marketing year not carried over and
the quota in the
not considered to be in excess of
2006/2007 marketing year
to be
to the application of Commission Regulation
subject
(EEC) No 2670/81 of 14 September 1981 laying down
detailed
sugar
rules
production in excess of the quota (4).

should continue

implementing

in respect

of

of

each

quota

undertaking

to improve

the market balance

In order
in the
Community without creating new stocks of sugar in
the 2006/2007 marketing year, provision should be
made for a transitional measure to reduce eligible
production under quota in respect of
that marketing
year. A threshold should be fixed above which the
production under
is
considered withdrawn within the meaning of Article 19
of Regulation (EC) No 318/2006 or, at the request of the
undertaking, as production in excess of the quota within
the meaning of Article 12 of that Regulation. In view of
the transition between the two regimes, this threshold
in equal parts,
should be obtained by a combination,
of the method laid down in Article 10 of Regulation
(EC) No 1260/2001 and that laid down in Article 19
of Regulation (EC) No 318/2006 and take into account
the special efforts made by some Member States within
the framework of
the restructuring fund set up by
Council Regulation (EC) No 320/2006 of 20 February
2006 establishing a temporary scheme for the restruct-
uring of
the sugar industry in the Community and
amending Regulation (EC) No 1290/2005 on the
financing of the common agricultural policy (5).

(4) OJ L 262, 16.9.1981, p. 14. Regulation as last amended by Regu-

lation (EC) No 95/2002 (OJ L 17, 19.1.2002, p. 37).

(5) OJ L 58, 28.2.2006, p. 42.

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(7)

(8)

sugar produced in the

In order to comply with the marketing conditions for the
2005/2006 marketing year, it should be laid down that
the aid for disposal and additional aid for sugar produced
in certain regions of the Community in the 2005/2006
marketing year and, within the limits of the quantities set
by Commission Regulation (EC) No 180/2006 of 1
February 2006 (6), the refining aid for certain preferential
sugars imported and refined in the 2005/2006 delivery
period may continue to be paid beyond 30 June 2006.
To this end, Commission Regulation (EC) No 1554/2001
of 30 July 2001 laying down detailed rules for the appli-
cation of Council Regulation (EC) No 1260/2001 as
regards marketing
French
overseas departments and equalising the price conditions
with preferential raw sugar (7) and Commission Regu-
lation (EC) No 1646/2001 of 13 August 2001 laying
down detailed implementing rules
the grant of
adjustment aid to the preferential raw sugar refining
industry and adjusting both the adjustment aid and addi-
tional basic aid for the sugar refining industry (8) should
continue to apply to the granting of these aids. For the
sugar concerned the refining of preferential sugars by
certain refineries should continue to be limited and the
control on presumed maximum supply needs should be
maintained, and provision should be made for
the
continued application of Commission Regulation (EC)
the
No 1460/2003 of 18 August 2003 setting for
2003/2004 to 2005/2006 marketing years
rules of
application for Council Regulation (EC) No 1260/2001
as regards the presumed maximum raw sugar supply
needs of refineries (9).

for

the calculation,

To carry out
fixing and collecting of
production levies in the 2005/2006 marketing year,
certain provisions of Commission Regulation (EC) No
314/2002 of 20 February 2002 laying down detailed
rules for the application of
the quota system in the
sugar sector (10) and of Commission Regulation (EC) No
779/96 of 29 April 1996 laying down detailed rules for
the application of Council Regulation (EEC) No 1785/81
as regards communications in the sugar sector (11) should
continue to apply beyond 30 June 2006. The levies are
calculated on the basis of statistical data which are
regularly updated. As it is the last time that levies are
to be fixed for the entire period between the 2001/2002
marketing year and the 2005/2006 marketing year,
without a subsequent possibility, as in previous years,
the calculations on the basis of updated
to adjust
the calculation should be deferred and the
figures,
fixed on 15 February 2007 to
levies

should be

guarantee the reliability of
relevance of the statistical data used.

the calculations and the

(9)

of

Regulation

Commission

In order to ensure the supply to the chemical industry in
the context of the transition between the existing regime
and the new regime introduced on 1 July 2006, certain
provisions
(EC) No
1265/2001 of 27 June 2001 laying down detailed
rules for the application of Council Regulation (EC) No
1260/2001 as regards granting the production refund on
certain sugar products used in the chemical industry (12)
should continue to apply beyond 30 June 2006 to the
refund certificates issued before that date. Since the new
regime allows the use by the chemical industry of non-
quota sugar, the period of validity of the export certi-
ficates should be reduced and the granting of the refund
should be limited to the production under quota in the
2005/2006 marketing year.

(10) Under Article 1(2) of Regulation (EC) No 318/2006, the
period covered by the marketing year begins on 1
October and ends on 30 September of the following
year. However, the 2005/2006 marketing year, as laid
down by Regulation (EC) No 1260/2001, ends on 30
June 2006. The 2006/2007 marketing year therefore
begins on 1 July 2006 and ends on 30 September
2007, and thus extends over 15 months. For
the
2006/2007 marketing year, therefore, provision should
be made for an increase in the quotas and the traditional
refining requirements which previously corresponded to
a 12-month period and which will, after this marketing
year, again apply to a 12-month period, by taking the
extra three months into account so as to ensure an
allocation which corresponds to that of the preceding
and subsequent marketing years. These
transitional
quotas should cover sugar production from the start of
the 2006/2007 marketing year, from sugar beet sown
before 1 January 2006.

(11)

Regulations (EC) No 314/2002 and (EC) No 1265/2001
should therefore be amended accordingly.

(6) OJ L 29, 2.2.2006, p. 28.
(7) OJ L 205, 31.7.2001, p. 18. Regulation as amended by Regulation

(EC) No 1442/2002 (OJ L 212, 8.8.2002, p. 5).

(8) OJ L 219, 14.8.2001, p. 14. Regulation as amended by Regulation

(EC) No 1164/2002 (OJ L 170, 29.6.2002, p. 48).

(9) OJ L 208, 19.8.2003, p. 12.
(10) OJ L 50, 21.2.2002, p. 40. Regulation as last amended by Regu-

lation (EC) No 1665/2005 (OJ L 268, 13.10.2005, p. 3).

(11) OJ L 106, 30.4.1996, p. 9. Regulation as last amended by Regu-

lation (EC) No 1159/2003 (OJ L 162, 1.7.2003, p. 25).

(12)

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

(12) OJ L 178, 30.6.2001, p. 63.

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HAS ADOPTED THIS REGULATION:

CHAPTER I

TRANSITIONAL MEASURES

Article 1

Carrying forward of quotas

1.
Notwithstanding Article 14 of Regulation (EC) No
1260/2001, and within the limits laid down in the second
subparagraph of Article 2(1) of Regulation (EEC) No 65/82,
each undertaking may decide by 31 October 2006 on the
quantity of C sugar production attributable to the 2005/2006
marketing year that it is to carry forward to the 2006/2007
marketing year, or amend its decision made before the entry
into force of this Regulation to carry forward a certain quantity.

2.
Undertakings which make a decision to carry forward as
referred to in paragraph 1, or which amend their decision, shall:

(a)

inform the Member State concerned, before 31 October
2006, of the quantity of sugar carried forward;

(b) undertake to store the quantity carried forward until

31 October 2006.

3.
Regulation (EEC) No 65/82 shall apply to B and C sugar
from the 2005/2006 marketing year carried forward to the
2006/2007 marketing year.

4. Member States shall
inform the Commission, not later
than 30 November 2006 and for each undertaking, of the
quantity of B and C sugar
carried forward from the
2005/2006 marketing year to the 2006/2007 marketing year.

C sugar referred to in paragraph 1 of this Article which are used
in animal feed under the same control conditions as those laid
down by the Commission for the industrial sugar referred to in
Article 13(2) of Regulation (EC) No 318/2006.

3.
Regulation (EEC) No 2670/81 shall apply to C sugar
production in the 2005/2006 marketing year, with the
exception of the sugar carried forward or considered to be
non-quota sugar in the 2006/2007 marketing year as referred
to in paragraph 1 of this Article.

The minimum price for A sugar for the 2005/2006 marketing
year shall apply to the beet equivalent to the quantity of sugar
referred to in Article 3 of Regulation (EEC) No 2670/81.

Article 3

Preventive withdrawal

the share of

For each undertaking,

1.
the production of
sugar, isoglucose or inulin syrup in the 2006/2007 marketing
year which is produced under the quotas listed in Annex III to
Regulation (EC) No 318/2006 and which exceeds the threshold
established in accordance with paragraph 2 of this Article shall
be considered withdrawn within the meaning of Article 19 of
that Regulation or, at the request of the undertaking concerned
before 31 January 2007, shall be considered fully or partially to
be produced in excess of the quota within the meaning of
Article 12 of that Regulation.

For

each undertaking,

2.
threshold referred to in
paragraph 1 shall be established by multiplying the quota
allocated to the undertaking under Article 7(2) of Regulation
(EC) No 318/2006 by the sum of the following coefficients:

the

Article 2

C sugar

(a)

the coefficient fixed for the Member State concerned in
Annex I to this Regulation;

licences

1. Without prejudice to decisions to carry forward taken in
accordance with Article 1 of this Regulation, and to exports
under
issued in accordance with Article 4 of
Commission Regulation (EC) No 1464/95 (13), C sugar from
the 2005/2006 marketing year shall be considered to be non-
quota sugar, as referred to in Article 12 of Regulation (EC) No
318/2006, produced in respect of the 2006/2007 marketing
year.

2.
Notwithstanding Article 15 of Regulation (EC) No
318/2006, the levy shall not be charged on the quantities of

(b) the coefficient obtained by dividing the sum of the quotas
renounced in the 2006/2007 marketing year in the Member
State concerned under Article 3 of Regulation (EC) No
320/2006 by the sum of
that
Member State
to Regulation (EC) No
318/2006. The Commission shall fix this coefficient not
later than 15 October 2006.

in Annex III

the quotas

fixed for

(13) OJ L 144, 28.6.1995, p. 14. Regulation as last amended by Regu-

lation (EC) No 96/2004 (OJ L 15, 22.1.2004, p. 3).

However, where the sum of the coefficients exceeds 1,0000, the
threshold shall be equal to the quota referred to in paragraph 1.

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The minimum price applicable to the quantity of beet
3.
equivalent to the sugar production withdrawn in accordance
with paragraph 1 shall be that of the 2007/2008 marketing
year.

4.
The obligation referred to in Article 6(5) of Regulation
(EC) No 318/2006 shall concern the quantity of beet equivalent
to the threshold referred to in paragraph 1 of this Article.

Article 5

Refining aid

1.
Adjustment aid shall be granted to the industry refining
preferential raw cane sugar imported under Protocol 3 on ACP
sugar attached to Annex IV to the ACP-EC Partnership
Agreement signed in Cotonou on 23 June 2000 (14), and
refined in the 2005/2006 delivery period between 1 July
2006 and 30 September 2006.

Before 1 July 2006, Member States

send the
5.
Commission an estimate of the quantities of sugar, isoglucose
and inulin syrup to be considered withdrawn under this Article.

shall

Article 4

Aid for sugar produced in the French overseas departments

1.
Aid for disposal and additional aid shall be granted to
sugar produced under quota in the 2005/2006 marketing
year in the French overseas departments, refined and/or trans-
ported between 1 July 2006 and 31 October 2006.

They shall apply to the quantities of sugar concerned, in repla-
cement for the aids referred to in Articles 7(4) and 38(3) and
(4) of Regulation (EC) No 1260/2001.

The aid for disposal shall concern:

— refining in refineries

the
Community of the sugars produced in the French overseas
departments, in particular on the basis of their output,

in the European regions of

— the transport of sugar produced in the French overseas
departments to the European regions of the Community
and, where appropriate, its storage in these departments.

Regulations (EC) No 1554/2001 and (EC) No 1646/2001
2.
shall apply to the
sugar produced under quota in the
2005/2006 marketing year for the aid for disposal and the
additional aid referred to in paragraph 1 of this Article.

For

the purposes of

‘refinery’ means a
3.
production unit whose sole activity consists in refining either
raw sugar or syrups produced prior to the crystallising stage.

this Article,

This aid shall be paid to refineries. It shall apply to the quan-
tities referred to in Regulation (EC) No 180/2006 and not
refined by 1 July 2006, as a replacement for the aid referred
to in Article 38(1),
(4) of Regulation (EC)
and
No 1260/2001.

(2)

Regulation (EC) No 1646/2001 shall apply to the prefer-

2.
ential sugar refined in the 2005/2006 delivery period.

Except

in cases of

force majeure, where the presumed
3.
maximum supply needs for a Member State as laid down in
Article 39(2) of Regulation (EC) No 1260/2001 are exceeded in
the course of the 2005/2006 marketing year, a quantity corre-
sponding to the excess shall be subject to the payment of an
amount corresponding to the full rate of import duty in force
for the marketing year in question, increased by EUR 115,40
per tonne of white sugar equivalent.

4.
Regulation (EC) No 1460/2003 shall apply to control and,
where appropriate, the consequences of exceeding the presumed
maximum supply needs for the refining industries as referred to
in paragraph 3 of this Article.

For

the purposes of

‘refinery’ means a
5.
production unit whose sole activity consists in refining either
raw sugar or syrups produced prior to the crystallising stage.

this Article,

Article 6

Levies

Regulation (EC) No 314/2002, as amended by this Regulation,
shall apply to the fixing and collecting of production levies in
including the corrections
the 2005/2006 marketing year,
relating to the calculation of
the levies in the 2001/2002,
2002/2003, 2003/2004 and 2004/2005 marketing years as
laid down in Article 15(2) of Regulation (EC) No 1260/2001.

(14) OJ L 317, 15.12.2000, p. 3.

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Article 7

Production refunds

to undertakings producing sugar,

isoglucose and
distortion,
inulin syrup established in their territory and approved in
accordance with Article 17 of Regulation (EC) No 318/2006.

Articles 1, 2, 3, 11, 14, 15, 17 18, 19, 20 and 21 of Regulation
(EC) No 1265/2001, as amended by this Regulation, shall apply
to the refund certificates issued until 30 June 2006.

Article 8

Notifications

Regulation (EC) No 779/96 shall apply until 30 September
2006.

Article 9

Transitional quotas

6.
The Member States shall introduce a control system and
shall take all the necessary steps to verify the production of the
products referred to in paragraphs 1, 2 and 3, and in particular
that the sugar corresponds to sugar beet sown before 1 January
2006.

The Member States shall communicate to the Commission, not
later than 15 July 2006, the breakdown by undertaking of the
transitional quotas allocated under this Article.

1.
For the 2006/2007 marketing year, a transitional sugar
quota of 497 780 tonnes shall be allocated to the Member
States in accordance with the breakdown in part A of Annex II.

The Member States shall notify the Commission, not later than
31 December 2006, of the control measures taken and the
results thereof.

The quota referred to in the first subparagraph shall be reserved
for sugar produced from beet sown before 1 January 2006. The
minimum price of this beet, within the meaning of Article 5 of
Regulation (EC) No 318/2006, shall be EUR 47,67 per tonne.

For

the 2006/2007 marketing

2.
transitional
isoglucose quota of 126 921 tonnes of dry matter shall be
allocated to the Member States
in accordance with the
breakdown in part B of Annex II.

year,

a

3.
For the 2006/2007 marketing year, a transitional inulin
syrup quota of 80 180 tonnes of dry matter, expressed as white
sugar/isoglucose equivalent, shall be allocated to the Member
States in accordance with the breakdown in part C of Annex II.

The transitional quotas laid down in paragraphs 1, 2

4.
and 3:

(a) shall not be subject

the temporary
restructuring amount provided for in Article 11(2) of Regu-
lation (EC) No 320/2006;

to the payment of

(b) may not benefit from the payment of the aid provided for

in Regulation (EC) No 320/2006.

Article 10

Traditional refining requirements

For the 2006/2007 marketing year,
the traditional refining
requirements referred to in Article 29(1) of Regulation (EC)
No 318/2006 shall be increased by the quantities laid down
in Annex III.

CHAPTER II

AMENDMENTS OF REGULATIONS (EC) NO 1265/2001 AND
(EC) NO 314/2002

Article 11

Amendment of Regulation (EC) No 1265/2001

Regulation (EC) No 1265/2001 is hereby amended as follows:

1. The following paragraph is added to Article 11:

‘5.
At the request of the interested party, the competent
authority of the Member State shall cancel refund certificates
which have not been fully used and have not passed their
final date of validity. The relevant security shall be released
for the amount unused.

5.
The Member States shall allocate transitional quotas, on
the basis of objective criteria and in a manner ensuring equal
treatment of producers and to avoid market and competition

Member States shall inform the Commission at the end of
each month of the quantity of refund certificates cancelled in
the course of the previous month, broken down by month
of issue of the refund certificate.’

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2. The following paragraph is added to Article 14:

(a) The following subparagraph is added to paragraph 1:

‘3.
The refund certificate shall be valid only for the basic
products referred to in Article 1 which are produced under
quota in the 2005/2006 marketing year or previous
marketing years.’

the 2005/2006 marketing year,

‘In respect of
the
amounts and the coefficients referred to in points (a)
and (b) of the first subparagraph shall be fixed before
15 February 2007.’;

3. The following sentence is added to Article 15:

(b) paragraph 2 is amended as follows:

‘However, the refund certificates shall no longer be valid after
31 August 2006.’

(i)

the following sentence is added to the first sub-
paragraph:

4. The following paragraph is added to Article 17:

‘3. Member States shall take the necessary additional steps
to ensure the proper application of the provisions of Article
14(3).’

Article 12

Amendment of Regulation (EC) No 314/2002

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

1. Article 4a(5) is deleted;

2. The following sentence is added to the third subparagraph of

Article 4c(1):

‘The notification for the 2005/2006 marketing year shall be
made before 1 December 2006.’

‘For the 2005/2006 marketing year, these balances
shall be determined before 28 February 2007.’;

(ii) the following sentence is added to the second

subparagraph:

‘For the 2005/2006 marketing year, this payment
shall be made before 15 April 2007.’

CHAPTER III

FINAL PROVISION

Article 13

Entry into force

This Regulation shall enter into force on the third day following
the European
that of
Union.

its publication in the Official

Journal of

3. Article 8 is amended as follows:

It shall apply from 1 July 2006. However, Articles 1, 3, 11(3)
and 12(1) shall apply from the date of its entry into force.

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

Done at Brussels, 27 March 2006.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

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ANNEX I

Coefficients referred to in Article 3(2)(a)

Member State

Coefficients

Belgium

Czech Republic

Denmark

Germany

Greece

Spain

France (mainland)

France (French overseas departments)

Ireland

Italy

Latvia

Lithuania

Hungary

Netherlands

Austria

Poland

Portugal (mainland)

Portugal (Azores)

Slovenia

Slovakia

Finland

Sweden

United Kingdom

0,8558

0,9043

0,8395

0,8370

0,8829

0,8993

0,8393

0,8827

0,8845

0,8621

0,9136

0,9141

0,9061

0,8475

0,8522

0,8960

0,8852

0,8845

0,8844

0,8833

0,8841

0,8845

0,8834

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ANNEX II

Part A: Transitional quotas for sugar referred to in Article 9(1)

Member State

Transitional quota for sugar 2006/2007
(tonnes of white sugar)

324 000

121 187

52 593

497 780

Total

Part B: Transitional quotas for isoglucose referred to in Article 9(2)

Member State

Transitional quota isoglucose 2006/2007
(in tonnes of dry matter)

17 898

8 847

3 223

20 645

4 962

5 076

34 407

2 275

6 695

2 479

10 637

2 968

6 809

Total

126 921

Part C: Transitional quotas for inulin syrup referred to in Article 9(3)

Member State

Transitional quota inulin syrup 2006/2007
(in tonnes of dry matter sugar/isoglucose equivalent)

53 812

6 130

20 238

80 180

Total

Spain

Italy

Portugal

Belgium

Germany

Greece

Spain

France

Italy

Hungary

Netherlands

Poland

Portugal

Slovakia

Finland

United Kingdom

Belgium

France

Netherlands

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ANNEX III

Transitional traditional refining requirements referred to in Article 10

Member State

Transitional traditional refining requirements 2006/2007
(tonnes of white sugar)

France

Portugal

Slovenia

Finland

United Kingdom

74 157

72 908

4 896

14 981

282 145

479 087

Total