Commission Regulation (EC) No 952/2006 of  29 June 2006  laying down detailed rules for the application of Council Regulation (EC) No 318/2006 as regards the management of the Community market in sugar and the quota system
Date: 2006-06-29
Institutions: European Commission
Subjects: common organisation of markets, market intervention, prices policy, production quota, regulation of agricultural production, sugar industry

1.7.2006

EN

Official Journal of the European Union

L 178/39

COMMISSION REGULATION (EC) No 952/2006

of 29 June 2006

laying down detailed rules for the application of Council Regulation (EC) No 318/2006 as regards
the management of the Community market in sugar and the quota system

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Com-
munity,

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 40 thereof,

Whereas:

(1)

(2)

(3)

(4)

The application of the quota system in the sugar sector
requires a precise definition of an undertaking's produc-
tion of sugar, isoglucose or inulin syrup. The possibility
of allocating part of the production of one undertaking
to another undertaking which has had sugar produced
under contract should be limited to certain specific
cases.

Under Article 17 of Regulation (EC) No 318/2006,
Member States grant approval, on request, to undertak-
ings producing sugar, isoglucose or inulin syrup or to
undertakings that process these products into a product
included in the list referred to in Article 13(2) of that
Regulation. The content of the application for approval
which sugar, isoglucose and inulin syrup producers and
refiners must submit to the competent authorities of the
Member States should be specified. The commitments
that the undertakings must make in return for approval
should be laid down, in particular the obligation to keep
an up-to-date record of the quantities of raw materials
entering the undertaking, being processed in it and
leaving it in the form of an end product.

It is necessary to lay down Member States' obligations as
regards checks on approved undertakings, and to define
a sufficiently deterrent system of penalties.

Article 4 of Regulation (EC) No 318/2006 provides for
an information system on sugar prices. Under Article 17
of that Regulation, approved undertakings are required
to provide information on the quantities of white sugar
sold and corresponding prices and conditions. The
frequency and content of the information on prices that
sugar manufacturers and refiners must draw up for
transmission to the Commission should be laid down.
it
To have an indication of
for undertakings to draw up and
would be useful
transmit
the
the forecast average selling prices
following three months also. Approved undertakings
which use sugar for processing into one of the products
listed in Article 13(2) of Regulation (EC) No 318/2006

the short-term outlook,

for

(1) OJ L 58, 28.2.2006, p. 1.

must also draw up, for transmission to the Commission,
the price of the sugar purchased, at the same intervals
and in the same format as those laid down for sugar
producers.

(5)

(6)

the Commission must

To ensure publication of price levels in accordance with
Article 4 of Regulation (EC) No 318/2006 while guaran-
teeing the confidentiality of data, it should be laid down
that
inform the Management
Committee for Sugar twice a year of the average prices
of white sugar sold on the Community market in the
previous half-year, broken down into quota sugar and
non-quota sugar.

A report on the operation of the system for recording
and notifying market prices provided for in this Regu-
lation is to be drawn up in order to propose improve-
ments considered relevant and a computerised system
for
the transmission of price data. Pending these
improvements, on a transitional basis for 2006 and
2007, the prices drawn up by the undertakings must be
sent directly to the Commission for the purposes of
informing the Management Committee for Sugar.

(7) Where Article 14 or 19 of Regulation (EC) No 318/
2006 applies, manufacturers are to carry forward part of
their production to the following marketing year, to be
that year. Conse-
the production of
counted against
quently, for that marketing year, delivery contracts at the
minimum price for beet need only be concluded by
sugar manufacturers in respect of the quantity of sugar
within their basic quota which they have not yet
produced.

(8)

(9)

To ensure the proper working of the quota system the
terms ‘pre-sowing’ and ‘minimum price’ as used in
Article 6(5) of Regulation (EC) No 318/2006 must be
defined. The specific agricultural and climatic conditions
for growing beet in certain regions of Italy should be
taken into account by fixing a different final date for
sowing.

Under Article 5(3) of Regulation (EC) No 318/2006, the
minimum price is adjusted by price increases or reduc-
tions to allow for deviations in the quality of the beet
from the standard quality. The quality, and hence the
value, of sugar beet largely depends on sugar content.
The most appropriate method of establishing the value
of beet of a quality differing from the standard quality is
to establish a scale of price increases and reductions
expressed as a percentage of the minimum price.

L 178/40

EN

Official Journal of the European Union

1.7.2006

(10) Article 8 of Regulation (EC) No 318/2006 provides for
the allocation of additional sugar quotas. This allocation,
which aims to facilitate the transition from the previous
quota system to the present system, must be confined to
undertakings which were allocated a quota in 2005/06.
Moreover, the terms on which the allocation is possible
from the 2006/07 marketing year onwards should be
laid down.

producer Member States on the basis of their sugar
production quotas. It should be possible to adapt this
allocation before each new marketing year, to take into
account changes made in the allocation of quotas by
Member States and,
in the course of each marketing
year, to reallocate any unused quantities.

(11) Article 9(2) of Regulation (EC) No 318/2006 provides
for the allocation of supplementary isoglucose quotas.
The Member States concerned allocate these quotas to
undertakings, in proportion to the isoglucose quotas that
have been allocated to them, in a manner which avoids
any form of discrimination.. The deadline for payment
of the one-off amount provided for in Article 9(3) of
that Regulation should be laid down.

(12)

Point 5 of Article 2 of Regulation (EC) No 318/2006
defines the production of quota sugar as the quantity of
sugar production attributed to a specific marketing year
under the quota of
the undertaking concerned, and
point 9 of Article 2 thereof defines quota beet as sugar
beet processed into quota sugar. It is therefore necessary
to lay down a rule on the allocation of sugar production
to a specific marketing year, while leaving Member
States a margin of flexibility for the specific cases of
production of sugar from autumn beet and production
of cane sugar.

(13)

To ensure the proper management of the quota system,
determine the monthly consumption of sugar and draw
up supply balances, provision should be made for
communications between approved undertakings and
the Member States, on the one hand, and the Member
States and the Commission on the other, covering
stocks, the level of production and areas sown.

(14) Article 18(2) of Regulation (EC) No 318/2006 provides
for intervention measures by buying in sugar. The imple-
mentation of Community intervention measures requires
sugar to be taken over by the intervention agencies at a
specified place. Accordingly, it should be laid down that
only sugar held in an approved place of storage when
the offer is made may be taken over.

(15)

To permit access to intervention in areas where it is
particularly needed due to the scale of production, the
maximum quantity fixed in Article 18(2) of Regulation
(EC) No 318/2006 must initially be allocated between

(16) As regards the conditions for granting or withdrawing
approval of places of storage, account should be taken
of the requirements for keeping sugar in good condition
and easily accessible for removal, and the capacity for
removal from storage.

(17)

Sugar with characteristics that will make it difficult to
dispose of
later and likely to deteriorate in storage
should not be accepted for intervention. The minimum
quality required should be laid down. It should also be
laid down that a storage contract, which is a condition
for the buying-in of sugar to intervention, must be
concluded between the intervention agency and the
seller.

(18)

the intervention
To facilitate the administration of
arrangements, sugar should be offered in lots. A lot, in
particular its quantity, should therefore be defined.

(19)

The intervention agency must have all the facts needed
to determine whether the offer meets all the require-
ments. To that end, the party making the offer must
supply it with all the necessary information.

from the

(20) Under Article 18(2) of Regulation (EC) No 318/2006,
the buying-in price is adjusted if the quality of the sugar
differs
standard quality. Scales of price
increases and reductions should therefore be laid down,
taking account of the quality of the sugar offered and
applicable to the buying-in price. These scales and the
resulting price increases and reductions may be deter-
mined on the basis of the objective data generally used
in commercial transactions.

(21)

Sugar held by intervention agencies must be sold
without discrimination between Community buyers and
on the most economic terms possible. In general, these
objectives can be attained using the tendering system. To
prevent sugar being disposed of when market conditions
are unfavourable, invitations to tender should be subject
to prior authorisation. It may be preferable in certain
circumstances to make use of procedures other than
tendering.

1.7.2006

EN

Official Journal of the European Union

L 178/41

To ensure that all interested parties in the Community
receive equal treatment, invitations to tender issued by
the intervention agencies must conform to uniform
rules. In this connection, it is necessary to ensure that
the sugar is actually put to the intended use.

Article 2

Definitions

(22)

(23)

(24)

The criteria used to determine the grade of the white
sugar and the yield of the raw sugar sold should be the
same as those applied when sugar is bought in by inter-
vention agencies. Equal
interested
parties can be ensured only by introducing uniform and
precisely defined provisions for adjusting the selling
price or the export refund, as the case may be, and
correcting export licences where the sugar is found to be
of a quality other than that indicated in the invitation to
tender.

treatment

for all

In the interests of clarity, Commission Regulations (EC)
No 1261/2001 of 27 June 2001 laying down detailed
rules for the application of Council Regulation (EC) No
1260/2001 as regards delivery contracts for beet and the
price increases and reductions applicable to the price of
beet (1),
(EC) No 1262/2001 of 27 June 2001 laying
down detailed rules for implementing Council Regu-
lation (EC) No 1260/2001 as regards the buying in and
sale of sugar by intervention agencies (2) and (EC) No
314/2002 of 20 February 2002 laying down detailed
rules for the application of the quota system in the sugar
sector (3) should be repealed and replaced by a new
Regulation.

(25)

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

HAS ADOPTED THIS REGULATION:

CHAPTER I

INTRODUCTORY PROVISIONS

Article 1

Scope

This Regulation lays down detailed rules for the application of
Regulation (EC) No 318/2006, as regards in particular the
determination of production, approval of manufacturers and
refiners, the price and quota system, and the conditions for
buying sugar into intervention and selling sugar from interven-
tion.

(1) OJ L 178 30.6.2001, p. 46.
(2) OJ L 178, 30.6.2001, p. 48. Regulation as last amended by Regu-

lation (EC) No 218/2006 (OJ L 38, 9.2.2006, p. 19).

(3) OJ L 50, 21.1.2002, p. 40. Regulation as last amended by Regu-

lation (EC) No 493/2006 (OJ L 89, 28.3.2006, p. 11).

For the purpose of this Regulation:

(a) ‘raw material’ means beet, cane, chicory, cereals, sugar for
refining or any other intermediate form of these products
intended for processing into an end product;

(b) ‘end product’ means sugar, inulin syrup or isoglucose;

(c) ‘manufacturer’ means

an undertaking producing end
products, with the exception of refiners as defined in point
13 of Article 2 of Regulation (EC) No 318/2006;

(d) ‘place of storage’ means a silo or warehouse.

CHAPTER II

ESTABLISHING PRODUCTION

Article 3

Sugar production

For

1.
318/2006,
expressed as white sugar, of:

the purposes of Title II of Regulation (EC) No
total quantity,

‘sugar production’ means

the

(a) white sugar;

(b) raw sugar;

(c) invert sugar;

(d) syrups belonging to one of the following categories, herein-

after called ‘syrups’:

(i) sucrose or invert sugar syrups which are at least 70 %

pure and are produced from sugar beet,

(ii) sucrose or invert sugar syrups which are at least 75 %

pure and are produced from sugar cane.

2.

Sugar production shall not include:

(a) quantities of white sugar produced from raw sugar or
syrups which were not produced in the undertaking which
manufactured the white sugar;

(b) quantities of white sugar produced from raw sugar, syrups
or sugar sweepings which were not produced during the
marketing year in which the white sugar was manufac-
tured;

(c) quantities of raw sugar produced from syrups which were
not produced in the undertaking which manufactured the
raw sugar;

(d) quantities of raw sugar produced from syrups which were
not produced during the marketing year in which the raw
sugar was manufactured;

L 178/42

EN

Official Journal of the European Union

1.7.2006

(e) quantities of raw sugar processed into white sugar during
the marketing year in question by the undertaking which
produced them;

However, the extractable sugar content can be established, for
an entire marketing year, on the basis of the real yield in
syrups.

(f) quantities of syrups processed into sugar or invert sugar
during the marketing year in question by the undertaking
which produced them;

(g) quantities of sugar, invert sugar and syrups produced under

inward-processing arrangements;

(h) quantities of

invert sugar produced from syrups which
were not produced by the undertaking which manufactured
the invert sugar;

(i) quantities of

invert sugar produced from syrups which
were not produced during the marketing year in which the
invert sugar was manufactured.

Sugar production shall be expressed in terms of white

3.
sugar in the following way:

(a) in the case of white sugar, disregarding differences in

quality;

(b) in the case of raw sugar, on the basis of yield determined in
accordance with point III of Annex I to Regulation (EC) No
318/2006;

(c) in the case of invert sugar, by multiplying production of

invert sugar by the coefficient 1;

(d) in the case of syrups considered as intermediate products,
on the basis of extractable sugar content determined in
accordance with paragraph 5 of this Article;

(e) in the case of syrups which are not considered as inter-
mediate products, on the basis of sugar content, expressed
as sucrose in accordance with Article 3(2) of Commission
Regulation (EC) No 2135/95 (1).

Sugar sweepings from a previous sugar year shall be

4.
expressed as white sugar in proportion to the sucrose content.

Purity of syrups shall be calculated by dividing the total

5.
sugar content by the dry matter content.

The extractable sugar content shall be calculated by subtracting
the difference between the dry matter content and the degree
of polarisation of that syrup, multiplied by 1,70, from the
degree of polarisation of the syrup in question. Dry matter
content shall be determined by areometry or refractometry.

(1) OJ L 214, 8.9.1995, p. 16.

Article 4

Isoglucose production

For

1.
the purposes of Title II of Regulation (EC) No
318/2006, ‘isoglucose production’ means the total quantity of
product obtained from glucose or its polymers with a content
by weight in the dry state of at least 10 % fructose irrespective
of
Isoglucose
in excess of
production shall be expressed as dry matter and recorded in
accordance with paragraph 2.

its fructose content

limit.

that

2.
Isoglucose production shall be recorded as soon as the
isomerisation process has terminated and before any operation
to separate the glucose and fructose constituents or to produce
mixtures, by physical metering of the volume of the product as
such and determination of the dry matter content by refracto-
metry.

3.
All undertakings shall be required to notify without delay
any of their facilities which may be used for the isomerisation
of glucose or its polymers.

Notification shall be made to the Member State on whose terri-
tory each facility is situated. The Member State may require the
undertaking to furnish additional information in this respect.

Article 5

Inulin syrup production

For

the purposes of Title II of Regulation (EC) No
1.
318/2006,
‘inulin syrup production’ means the quantity of
product obtained after the hydrolysis of inulin or oligofructoses
with a content by weight in the dry state of at least 10 % fruc-
tose in free form or as sucrose,
irrespective of its fructose
content in excess of that limit, which is at least 70 % pure.
Inulin syrup production shall be expressed as dry matter sugar/
isoglucose equivalent.

‘Purity’ means the percentage of monosaccharides and disac-
charides in the dry matter, as determined by the International
Commission for Uniform Methods of Sugar Analysis method, here-
inafter referred to as the ‘ICUMSA method’ (ICUMSA method
GS7/8/4-24).

1.7.2006

EN

Official Journal of the European Union

L 178/43

Inulin syrup production shall be recorded by means of

2.
the combination of the following operations:

of sugar,
isoglucose or inulin syrup carried over to the
following marketing year, in accordance with Articles 14
and 19 of Regulation (EC) No 318/2006 respectively,

(a) physical metering of the volume of the product as such
immediately after leaving the first evaporator after each
hydrolysis and before any operation to separate the glucose
and fructose constituents or to produce mixtures;

(b) determination of the dry matter content by refractometry
and measurement of the fructose content by weight in the
dry state, on the basis of daily representative sampling;

(c) conversion of the fructose content to 80 % by weight in
the dry state by multiplying the quantity determined in dry
matter by the coefficient representing the ratio between the
measured fructose content of that quantity of syrup and
80 %;

(d) expression as sugar/isoglucose equivalent by applying the

coefficient 1.9.

3.
All undertakings shall be required to notify without delay
any of their facilities which may be used for the hydrolysis of
the inulin, and the annual quantities and the use of
the
products referred to in paragraph 1 but less than 70 % pure.

This information shall be submitted to the Member State on
whose territory each facility is situated. That Member State may
require undertakings to furnish additional information, in par-
ticular to ensure that the by-products referred to in the first
subparagraph are not used as sweetening matter for human
consumption on the Community market.

The Member State concerned shall send the Commission not
later than 31 January each year a detailed report containing
information on the previous year. The first report shall be sent
not later than 31 January 2007.

Article 6

Production of an undertaking

— plus the quantity produced by processors under contract in
accordance with paragraph 3 and minus the quantity
produced by the undertaking on behalf of principals under
contract in accordance with paragraph 3.

3. Where two undertakings make a signed application in
writing to the Member State concerned, the quantity of sugar
produced by an undertaking (hereinafter called the processor)
under contract from materials supplied shall be treated as part
of the production of the undertaking (hereinafter called the
principal) which had the sugar produced under that contract
provided that one of the following conditions is met:

(a) the total sugar production of the processor is less than its

quota;

(b) the total sugar production of the processor and of the prin-

cipal is more than the sum of their quotas.

The total sugar production, as referred to in point (b) of the
first subparagraph, of an undertaking shall be the production
referred to in paragraph 1 plus the quantity carried forward
from the previous marketing year and the quantity produced
by processors under contract on behalf of that undertaking,
and minus the quantity produced by the undertaking under
contract on behalf of principals.

Instead of the quantities actually produced, as referred to in the
second subparagraph, the competent authorities of the Member
States may, where this total is larger, use estimated production
calculated on the basis of the delivery contracts signed by the
undertakings.

For

1.
the purposes of Title II of Regulation (EC) No
318/2006, the ‘sugar, isoglucose or inulin syrup production of
an undertaking’ means the sugar, isoglucose or inulin syrup, as
defined in Article 3, 4 and 5 of this Regulation, actually manu-
factured by that undertaking.

4. Where the factories of the principal and of the processor
are situated in different Member States, the application referred
to in paragraph 3 shall be made to the two Member States
concerned. In that case, the Member States concerned shall act
in concert as regards the response to be given, and shall take
the necessary steps to verify that the conditions referred to in
that paragraph are observed.

2.
For a given marketing year, the total sugar, isoglucose or
inulin syrup production of an undertaking shall be the produc-
tion referred to in paragraph 1:

— plus the quantity of sugar,

isoglucose or inulin syrup
carried over to that marketing year and minus the quantity

5.
The quantity of sugar produced by a processor may be
considered to be produced by the principal if, owing to a case
of force majeure recognised by the Member State, the beet, cane
or molasses have to be processed into sugar in an undertaking
other than that of the principal.

L 178/44

EN

Official Journal of the European Union

1.7.2006

CHAPTER III

APPROVAL OF MANUFACTURERS AND REFINERS

2.
Approval shall take the form of an act by the competent
authority accompanied by a document signed by the under-
taking listing the commitments referred to in paragraph 1.

Article 7

Application for approval

3.
Approval shall be withdrawn if it is found that one of the
conditions listed in paragraph 1 is no longer met. Approval
may be withdrawn in the course of a marketing year. With-
drawal shall not have retroactive effect.

Approval may be obtained by undertakings which apply

1.
for it and which operate as:

(a) a sugar manufacturer,

(b) an isoglucose manufacturer,

(c) an inulin syrup manufacturer,

(d) a full-time refiner within the meaning of point 13 of

Article 2 of Regulation (EC) No 318/2006.

The application referred to in the first subparagraph shall be
lodged with the competent authority of the Member State or
Member States in which the undertaking concerned operates.

An undertaking may apply for approval for one or more of the
activities referred to in the first subparagraph.

In its application for approval,

the undertaking shall
2.
communicate its name and address,
isoglucose or
inulin syrup production capacity and, where appropriate, the
number of production sites in the Member State with the
address and production capacity of each site.

its sugar,

3.
An undertaking which applies for approval under point
(d) of the first subparagraph of paragraph 1 shall supply proof
that it meets the definition in point 13 of Article 2 of Regu-
lation (EC) No 318/2006.

Article 8

Commitments

For the purposes of approval, the undertaking shall agree

1.
in writing to:

(a) notify without delay to the competent authority of the
Member State any amendment of the information provided
for in Article 7(2);

(b) keep records in accordance with Article 9 and the selling
prices established in accordance with Article 13 available to
the competent authority of the Member State;

(c) communicate information to the Member State in accord-

ance with Article 21;

(d) provide at the request of the competent authority of the
Member State any information or supporting document
required for management and checking.

Article 9

Records

The competent authority of the Member State shall determine
the records to be kept by all undertakings approved in accord-
ance with Articles 7 and 8, at each of their production sites,
and the frequency of such record-keeping, which must be at
least monthly.

These records shall be kept by the undertaking for at least three
years following the current year and comprise at least the
following information:

1. the quantities of raw material received with, in the case of
beet and cane, the sugar content as determined on delivery
to the undertaking;

2. where appropriate,
products received;

the end products or

semi-finished

3. the quantities of end products obtained, and the quantities

of by-products;

4. the wastage during processing;

5. the quantities destroyed and the reasons for such destruc-

tion;

6. the quantities of end products dispatched.

Article 10

Checks

Each marketing year,

1.
the
Member State shall carry out checks on each approved manu-
facturer and refiner.

the competent authority of

2.
The checks shall aim to ensure the accuracy and comple-
teness of the information in the records referred to in Article 9
and of the communications referred to in Article 21 by means,
in particular, of an analysis of the consistency between the
quantities of raw materials delivered and the quantities of end
products obtained, and analysis of a reconciliation of
the
records with the commercial documents or other relevant
documents.

1.7.2006

EN

Official Journal of the European Union

L 178/45

The checks shall verify the accuracy of the measuring instru-
ments and laboratory analyses used to determine deliveries of
raw materials and their entry into production, the products
obtained and stock movements.

Checks shall include verification of the accuracy and complete-
ness of the data used to establish the average monthly selling
prices of the undertaking referred to in Article 13(2).

For sugar manufacturers, checks shall also cover compliance
with the obligation to pay the minimum price to beet growers.

At least once every two years, checks shall
checks on stocks.

include physical

3. Where it is provided by the competent authorities of the
Member State that particular elements of the check may be
carried out on the basis of a sample, that sample shall guar-
antee a reliable and representative level of control.

4. Member States may require approved undertakings to use
a certifying body for accounts, recognised in the Member State,
to certify the price data referred to in Article 13.

5.
Every on-the-spot check shall be the subject of an inspec-
tion report signed by the inspector giving the details of the
checks carried out. Reports shall indicate in particular:

(a) the date of the check, and the persons present;

(b) the period checked and the quantities involved;

(c) the checking techniques used including, where applicable,

reference to sampling methods;

(d) the results of
required;

the check and any corrective measures

(e) an assessment of the seriousness, extent, permanence and
duration of any faults and discrepancies found and all other
elements to be taken into consideration for the purposes of
applying penalties.

Each inspection report shall be archived and kept for at least
three years following the year in which the check is carried
out,
in a way that ensures that it is readily useable by the
Commission departments responsible for checks and inspec-
tions.

Article 11

Penalties

1.
If the competent authority of the Member State detects a
discrepancy between the physical stock and the stock recorded

in the records referred to in Article 9, or a lack of consistency
between the quantities of raw materials and of end products
obtained or between the relevant documents and the data or
it shall determine or, where
quantities declared or recorded,
appropriate, estimate the actual production quantities and
stocks for the current marketing year and, where necessary, for
the previous marketing years.

Any quantity which has given rise to an incorrect declaration
resulting in an unfair financial advantage shall be subject to a
payment of EUR 500 per tonne of the quantity in question.

2.
If the competent authority of the Member State finds that
an undertaking has failed to fulfil its obligations under Article
the
8, and if there are no supporting documents to meet
control objectives referred to in Article 10(2), the competent
authority shall impose a penalty of EUR 500 per tonne, applied
to a flat-rate quantity of end product fixed by the Member
State depending on the seriousness of the infringement.

3.
Paragraphs 1 and 2 shall not apply where the discrepan-
cies and inconsistencies detected are less than 5 % in weight of
the quantity of end products declared or recorded and checked
or where they are due to omissions or simple administrative
errors, provided that corrective measures are taken to ensure
that similar errors do not recur.

The penalties provided for in paragraphs 1 and 2 shall

4.
not be applicable in cases of force majeure.

Article 12

Communications to the Commission

1. Member States shall communicate the following informa-
tion to the Commission:

(a) a list of approved undertakings;

(b) the quota allocated to each approved manufacturer.

This list shall be sent not later than 31 January each marketing
year. For the 2006/07 marketing year, this list shall be sent for
the first time not later than 31 July 2006.

In the event of withdrawal of approval, Member States shall
inform the Commission thereof immediately.

2. Member States shall send the Commission not later than
31 March following the marketing year concerned an annual
report comprising the number of checks carried out in accord-
ance with Article 10 and, for each check carried out, the errors
found and the action taken and penalties applied.

L 178/46

EN

Official Journal of the European Union

1.7.2006

CHAPTER IV

PRICES

Article 13

Establishment of average prices

approved in accordance with Article 17(1) of Regulation (EC)
No 318/2006 shall communicate to the Commission the prices
established in accordance with Article 13(1) of this Regulation
during the previous three months.

The reception, processing and storage of
the data by the
Commission shall be carried out in such a way as to guarantee
the confidentiality of data.

1.
Each month, undertakings approved in accordance with
Articles 7 and 8 of this Regulation and processors approved in
accordance with Article 17 of Regulation (EC) No 318/2006
shall establish,
for quota white sugar and non-quota white
sugar respectively:

Other operators in the sugar sector, in particular buyers, may
communicate to the Commission the average price for sugar
established in accordance with the arrangements laid down in
Article 13. Operators shall give their name, address and busi-
ness name.

(a) for

the previous month,

the average selling price, or
purchase price, and the corresponding quantity sold, or
purchased;

(b) for the current month and each of

the following two
months, the forecast average selling or purchase price and
the corresponding quantity forecast in the framework of
contracts or other transactions.

The price shall relate to bulk white sugar ex-factory and of a
standard quality as defined in point II of Annex I to of Regu-
lation (EC) No 318/2006.

To permit

2.
in Article 10,
the checks provided for
approved undertakings shall keep the data used to establish the
prices and quantities referred to in paragraph 1 of this Article
for at least three years following the year in which they were
produced.

Article 14

Price information

In June and December each year, the Commission shall inform
the Management Committee for Sugar of the average price for
white sugar during the first half of the current marketing year
and the second half of the previous marketing year respectively.
However, the first information shall be provided in June 2007
for the period from 1 July 2006 to 31 March 2007.

The price shall be broken down by quota white sugar and non-
quota white sugar.

The information shall be based on the weighted average of the
prices established and communicated by the undertakings
under Article 13(1)(a) and communicated in accordance with
Article 15.

Article 16

Delivery contracts

1.
For the purposes of Article 6(5) of Regulation (EC) No
318/2006, a contract concluded between a sugar manufacturer
and a beet seller growing its own beet shall be regarded as a
delivery contract.

2. Where a manufacturer carries forward, pursuant to Arti-
cles 14 or 19 of Regulation (EC) No 318/2006, part of its
production to the following marketing year, the quota of that
manufacturer shall be considered to be reduced in respect of
that year by the quantity carried forward for the purposes of
Article 6(5) of that Regulation.

Only contracts concluded prior to sowing and in any

3.
event:

— before 1 April in Italy, or

— before 1 May in the other Member States

shall be regarded as pre-sowing contracts.

Article 17

Price increases and reductions

1.
For the purposes of applying the price increases and
reductions provided for in Article 5(3) of Regulation (EC)
No 318/2006, the minimum price for quota beet referred to in
Article 5(1) of that Regulation shall, for each 0,1 % of sucrose
content, be:

(a) increased by not less than:

Article 15

(i) 0,9 % for contents exceeding 16 % but not exceeding

18 %,

Transitional provisions for the transmission of price data

Not later than 20 October 2006, 20 January 2007, 20 April
2007 and 20 July 2007, undertakings approved in accordance
this Regulation and processors
with Articles 7 and 8 of

(ii) 0,7 % for contents exceeding 18 % but not exceeding

19 %,

(iii) 0,5 % for contents exceeding 19 % but not exceeding

20 %;

1.7.2006

EN

Official Journal of the European Union

L 178/47

(b) reduced by not more than:

Article 19

(i) 0,9 % for contents below 16 % but not below 15,5 %,

Additional isoglucose quota

(ii) 1 % for contents below 15,5 % but not below 14,5 %.

The price for beet with a sucrose content in excess of 20 %
shall not be less than the minimum price adjusted in accord-
ance with point (a)(iii).

2.
Delivery contracts, and agreements within the trade as
referred to in Article 6 of Regulation (EC) No 318/2006, may
provide, compared to the increases and reductions referred to
in paragraph 1 of this Article, for:

(a) further increases for sucrose contents above 20 %;

(b) further reductions for sucrose contents below 14,5 %.

These contracts and agreements may, in the case of beet with a
sucrose content below 14,5 %, define beet suitable for proces-
sing into sugar if further reductions for sucrose contents below
14,5 % but above the minimum sucrose content specified in
that definition are laid down in such contracts and agreements.

If the definition referred to in the second subparagraph is not
included in the contracts and agreements, the Member State
concerned may lay down that definition. In that case it shall, at
the same time, fix the further reductions referred to in that sub-
paragraph.

CHAPTER V

QUOTAS

Article 18

Additional sugar quotas

1.
Italy, Lithuania and Sweden shall allocate the additional
isoglucose quotas referred to in Article 9(2) of Regulation (EC)
the 2006/07, 2007/08,
No 318/2006 to one or more of
2008/09 and 2009/10 marketing years in a manner which
avoids any form of discrimination between the operators
concerned.

2.
The payment of the one-off amount referred to in Article
9(3) of Regulation (EC) No 318/2006 shall be made by each
undertaking concerned by a deadline to be determined by the
Member State which may not be later than 31 December of the
marketing year from which the additional isoglucose quota is
allocated.

If the undertaking has not paid the one-off amount by the
deadline referred to in the first subparagraph, the additional
isoglucose quotas shall not be considered as allocated to the
undertaking concerned.

Article 20

Allocation of beet harvests

The sugar extracted from beet sown in a particular marketing
year shall be attributed to the following marketing year.

However, Spain, Italy and Portugal may, subject to a satisfac-
tory control system, decide to attribute sugar extracted from
beet sown in the autumn of a particular marketing year to the
current marketing year.

Spain, Italy and Portugal shall inform the Commission of their
decisions under this Article not later than 30 September 2006.

1.
The additional sugar quotas referred to in Article 8 of
Regulation (EC) No 318/2006 may only be allocated to sugar
manufacturers who were holders of a quota in 2005/06.

2.
In their application for additional sugar quotas, undertak-
ings shall indicate whether they wish to obtain the quota from
the 2006/07 or 2007/08 marketing year.

the
it allocates the additional quota to an undertaking,
If
Member State shall indicate the marketing year from which the
allocation takes effect. However, allocations after 1 January
2007 shall take effect from the 2007/08 marketing year.

Article 21

Communications on production and stocks

1.
Each approved manufacturer and refiner shall notify to
the competent authority of the Member State in which produc-
tion or refining took place, before the 20th of each month, the
total quantities, expressed as white sugar, of the sugars and
syrups indicated in Article 2(1)(a), (b), (c) and (d):

— owned by it or covered by a warrant, and

— stored in free circulation on Community territory at the

end of the previous month.

L 178/48

EN

Official Journal of the European Union

1.7.2006

Those quantities shall be broken down by Member State of
storage into:

— sugar produced by that undertaking specifying the quanti-
ties of quota sugar and those in excess of the quota or
carried forward in accordance with Articles 14 or 19 of
Regulation (EC) No 318/2006,

— other sugar.

Each Member State shall notify to the Commission,
2.
before the end of the second month following the month in
question, the quantity of sugar stored at the end of each month
by the undertakings indicated in paragraph 1, broken down by
type of sugar in accordance with the second subparagraph
thereof.

If storage is in a different Member State from the one notifying
the Commission, the latter shall
inform the Member State
concerned of the quantities stored on their territory and their
locations by the end of the following month.

3.
Each approved isoglucose or inulin syrup manufacturer
shall notify to the competent authority of the Member State in
which production took place, before 30 November, the quanti-
ties of isoglucose expressed as dry matter or, respectively, of
inulin syrup expressed as white sugar equivalent owned by it
and stored in free circulation on Community territory at the
end of the previous marketing year, broken down into:

(a) isoglucose or inulin syrup produced by that undertaking
specifying the quantities under quota and in excess of the
quota carried forward in accordance with Articles 14 or 19
of Regulation (EC) No 318/2006; and

(b) other.

Member States shall notify to the Commission, before 31
December, the quantities of isoglucose and inulin syrup stored
at the end of the previous marketing year, broken down as
specified in the first subparagraph.

4.
Before the 15th day of each month, each isoglucose-
producing undertaking shall notify to the Member State on
whose territory its production took place the quantities of
isoglucose, expressed as dry matter, actually produced during
the previous month.

Member States shall establish the isoglucose production of each
such undertaking in each month and notify it to the Commis-
sion before the end of the second month following.

Article 22

Supply balances

For each marketing year, Community supply balances for
1.
sugar,
isoglucose and inulin syrup shall be drawn up. The
balances shall be consolidated at the end of the following
marketing year.

2. Member States shall establish provisional sugar and inulin
syrup production figures for the current marketing year for
each undertaking located on their territories and notify them to
the Commission before 1 March. Sugar production shall be
broken down by month.

For the French departments of Guadeloupe and Martinique and
for Spain as regards cane sugar, the provisional production
shall be established and notified by 1 July.

3. Member States shall notify to the Commission before 1
June the areas and production of, on the one hand, beet for
production of sugar, bioethanol and other products respec-
tively, and, on the other hand, chicory for production of inulin
syrup, for the current marketing year and estimates of them for
the following year.

4.
Before 30 November, Member States shall establish and
notify to the Commission actual production of sugar, isoglu-
cose and inulin syrup in the previous marketing year by each
undertaking located on their territory. Total sugar production
shall be broken down by month.

5. Where it is necessary to amend actual sugar production
on the basis of the information notified under paragraph 4, the
resulting difference shall be taken into account in establishing
actual production in the marketing year during which this
difference came to light.

CHAPTER VI

PUBLIC STORAGE

SECTION 1

Offers for intervention

Article 23

Offers

The quantities produced under inward processing arrangements
shall be notified separately.

1.
Offers shall be made in writing to the intervention agency
of the Member State on whose territory the sugar offered is
located at the time of the offer.

1.7.2006

EN

Official Journal of the European Union

L 178/49

2.
Offers shall be eligible only if they are submitted by
approved manufacturers in accordance with Articles 7 and 8
for
the current
from their quota production for
marketing year and, at the time of the offer, stored separately
in a place of storage approved in accordance with Article 24.

sugar

4.
Approval shall be withdrawn by the intervention agency
where it finds that one of the conditions referred to in para-
graphs 1, 2 and 3 is no longer met. Approval may be with-
drawn during the marketing year. Withdrawal shall not have
retroactive effect.

Each marketing year Member States may only accept into
3.
intervention the maximum quantity indicated for each of them
in the Annex. If the offers exceed the maximum quantity, the
competent authority of the Member State shall apply a single
reduction coefficient to the offers, such that the total quantity
accepted is equal to the quantity available.

4.
Before the start of each marketing year, the Commission
shall amend the quantities laid down in the Annex to this
the adjustments referred to in
Regulation on the basis of
Article 10 of Regulation (EC) No 318/2006 and within the
limit of the total quantity laid down in Article 18(2) of that
Regulation.

The quantities laid down in the Annex to this Regulation shall
be amended, where appropriate,
in the last quarter of each
marketing year, on the basis of unused quantities in accordance
with the procedure referred to in Article 39(2) of Regulation
(EC) No 318/2006 and within the limit of the total quantity
laid down in Article 18(2) of that Regulation.

Article 24

Approval of the place of storage

Approval shall be granted at the manufacturer's request

1.
to the intervention agency, to all places of storage which:

Article 25

Minimum sugar quality

Sugar offered to intervention shall meet the following

1.
requirements:

(a) it must have been produced within a quota during the

marketing year in which the offer is made;

(b) it must be in crystal form.

2. White sugar offered to intervention shall be of sound and
fair marketable quality, free-flowing, with a moisture content
not exceeding 0,06 %.

Raw sugar offered to intervention shall be of sound and
3.
fair marketable quality with a yield, calculated in accordance
with point III of Annex I to Regulation (EC) No 318/2006, of
not less than 89 %.

In the case of raw cane sugar, the sugar shall have a safety
factor not exceeding 0,30.

In the case of raw beet sugar, the sugar shall have:

— a pH value not less than 7,9 at

the time the offer is

accepted,

— an invert sugar content not exceeding 0,07 %,

(a) are suitable for keeping sugar in good condition;

— a temperature which does not entail any risk of deteriora-

tion,

(b) are situated in a place which provides the transport facil-

ities necessary for removal of the sugar;

(c) allow separate storage of the quantities offered for interven-

tion.

Additional conditions may be imposed by the intervention
agencies.

— a safety factor not exceeding 0,45 when the degree of
polarisation is 97 or above, or a moisture content not
exceeding 1,4 % when the degree of polarisation is below
97.

The safety factor shall be determined by dividing the percentage
moisture content of the sugar concerned by the difference
between 100 and the degree of polarisation of that sugar.

2.
Approval of the place of storage shall be granted for
storage in bulk or for storage of packaged sugar. It shall fix a
quantitative storage limit not exceeding 50 times the daily
removal capacity that the applicant undertakes to place at the
disposal of the intervention agency. The approval shall indicate
the total quantity for which it is given and the daily removal
capacity.

Article 26

Lots

All sugar offered for intervention shall be put up in lots.

3.
The sugar must be stored such that it is easily identifiable
and accessible. It must be placed on pallets when it is packaged,
unless it is packaged in ‘big bags’.

For the purposes of this Section,
‘lot’ means at least 2 000
tonnes of sugar of uniform quality and packing, all of which is
stored in the same place.

L 178/50

EN

Official Journal of the European Union

1.7.2006

Article 27

Content of the offer

1.

Offers made to an intervention agency shall indicate:

(a) the name and address of the party making the offer;

day period during which removal of the quantity of sugar
concerned is completed.

For the purposes of this Article, ‘10-day period’ means one of
the following periods of a calendar month: from the first to the
10th, from the 11th to the 20th, or from the 21st to the end
of the month.

(b) the place of storage in which the sugar is stored at the time

the offer is made;

2.

Storage contracts shall, in particular:

(c) the removal capacity guaranteed for the removal of the

sugar offered;

(d) the net quantity of sugar being offered;

(e) the nature and quality of

the sugar offered, and the

marketing year in which it was produced;

(f) the type of packing of the sugar.

The intervention agency may require additional informa-

2.
tion.

3.
Offers shall be accompanied by a statement from the
parties making the offer certifying that the sugar concerned has
not previously been bought in to intervention, that they own
the sugar and that it conforms to the requirements laid down
in Article 25(1)(a).

(a) provide for expiry of the contract under the conditions set
out in this Regulation after at least ten days' notice has
been given;

(b) specify the amount of the storage costs to be borne by the

intervention agency.

3.
The intervention agency shall bear the storage costs from
the beginning of the 10-day period within which the contract
takes effect as referred to in paragraph 2 until the expiry of the
contract.

Storage costs may not exceed EUR 0,48 per tonne and

4.
per 10-day period.

Storage contracts shall expire at the end of the removal

5.
referred to in Article 50.

Article 28

Examination of the offers

Article 30

Transfer of ownership

Offers shall remain valid for three weeks from the date of
they may be withdrawn during that

1.
submission. However,
period with the consent of the intervention agency.

1.
The transfer of ownership of sugar covered by a storage
contract shall take place when the sugar in question is paid for.

The intervention agency shall examine offers.

2.
It shall
accept them not later than the end of the period referred to in
the intervention agency shall reject
paragraph 1. However,
offers if examination shows that any of the requirements have
not been met.

2.
Up to the time of removal, the seller shall remain respon-
sible for the quality of the sugar referred to in paragraph 1 and
for the packing in which the sugar has been accepted by the
intervention agency.

SECTION 2

Storage

Article 29

Storage contracts

1.
Storage contracts to be concluded before acceptance of
the offer between parties making offers and the intervention
agency shall be concluded for an indefinite period.

Storage contracts shall take effect five weeks after the date of
acceptance of the offer and shall expire at the end of the ten-

Article 31

Quality and packing standards

1.
If it is established that a quantity of the sugar concerned
does not conform to the quality requirements set out in Article
25, the seller shall immediately replace that quantity with an
equal quantity of sugar of the required quality, stored either in
the same place of storage or in another place of storage
approved in accordance with Article 24.

2. Where the sugar concerned is stored and it is found that
the packing no longer conforms to the specifications, the inter-
vention agency shall require the seller to replace it with
packing to the required standard.

1.7.2006

EN

Official Journal of the European Union

L 178/51

SECTION 3

(a) sound and fair marketable quality, dry, in homogeneously-

Conditions for intervention buying-in

granulated, free-flowing crystals;

(b) minimum polarisation: 99,7°S;

Article 32

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

Intervention price for and quality of white sugar

1.

The intervention price for white sugar shall be:

— EUR 505,52 per tonne in the 2006/07 marketing year,

— EUR 433,20 per tonne in the 2007/08 marketing year,

— EUR 323,52 per tonne in the 2008/09 and 2009/10

marketing years.

2. White sugar shall be classified into four grades as follows:

(a) Grade 1: sugar which is superior in quality to the standard

quality;

(b) Grade 2: sugar of the standard quality as defined in point II

of Annex I to Regulation (EC) No 318/2006;

(c) Grades 3 and 4: sugar which is inferior in quality to the

standard quality.

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

(e) colour type: maximum No 6 determined according to the

Brunswick Method.

Grade 4 sugar shall include sugar not included in Grades

5.
1, 2 and 3.

The intervention price fixed in paragraph 1 shall be

6.
reduced by:

(a) EUR 7,30 per tonne for Grade 3 sugar;

(b) EUR 13,10 per tonne for Grade 4 sugar;

Article 33

Intervention price for raw sugar

1.

The intervention price for raw sugar shall be:

3.

Grade 1 sugar shall have the following characteristics:

— EUR 397,44 per tonne in the 2006/07 marketing year,

(a) sound and fair marketable quality, dry, in homogeneously

granulated, free-flowing crystals;

— EUR 359,04 per tonne in the 2007/08 marketing year,

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

marketing years.

— EUR 268,16 per tonne in the 2008/09 and 2009/10

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

2.

The intervention price fixed in paragraph 1 shall be:

(d) the number of points shall not exceed a total of eight, or:

(a) increased where the yield of the sugar is more than 92 %;

— six for the ash content,

(b) reduced where the yield of the sugar is less than 92 %.

— four for the colour type determined according to the
method of
the Brunswick Institute for Agricultural
Technology and the Sugar Industry, hereinafter referred
to as the ‘Brunswick Method’,

— three for the solution colour determined according to

the ICUMSA Method.

One point shall correspond to:

(a) 0,0018 % ash content determined according to the

ICUMSA Method at 28° Brix;

(b) 0,5 unit of colour type determined according to the Bruns-

wick Method;

(c) 7,5 units of solution colour determined according to the

ICUMSA Method.

4.

Grade 3 sugar shall have the following characteristics:

3.
The amount of the increase or reduction, expressed in
euro per tonne, shall be equal to the difference between the
intervention price for raw sugar and the same price multiplied
by a coefficient. The coefficient shall be obtained by dividing
the yield of the raw sugar concerned by 92 %.

The yield of raw sugar shall be calculated in accordance

4.
with point III of Annex I to Regulation (EC) No 318/2006.

Article 34

Payment period

The intervention agency shall make payment no earlier than
120 days from the day on which the offer is accepted, provided
the checks to verify the weight and quality of the offered lots
have been conducted in accordance with Section 4.

L 178/52

EN

Official Journal of the European Union

1.7.2006

SECTION 4

Checks

Article 35

Sample for checking quality

Within the time limit referred to in Article 34, four representa-
tive samples shall be taken for analysis either by experts
approved by the competent authorities of the Member State
concerned or by experts agreed upon by the intervention
agency and the seller. One sample shall be given to each of the
contracting parties. The other two samples shall be kept by the
expert or by a laboratory approved by the competent authori-
ties.

Each sample shall be analysed twice and the mean of the
results shall be taken as the result of the analysis of the sample
concerned.

Article 36

Disputes over quality

1. Where there is a difference between the results of the
analyses arranged by the seller and the buyer in accordance
with Article 35, the arithmetic mean of the two results shall be
conclusive for establishing the grade of the sugar concerned if
the difference is:

Article, as the case may be, an arbitral analysis shall be carried
out by a laboratory approved by the competent authorities. In
this case,
the procedure provided for in the second sub-
paragraph of paragraph 1 of this Article shall apply.

3.
For disputes concerning the upper limit for the colour
type of Grade 3 sugar, polarisation, moisture content or invert
sugar content, the procedure laid down in paragraphs 1 and 2
shall apply.

However, the differences referred to in paragraph 1 shall be
replaced by:

— 1,0 unit of colour type for Grade 3 sugar,

— 0,2°S for polarisation,

— 0,02 % for moisture content,

— 0,01 % for invert sugar content.

4.
In the event of a dispute between the contracting parties
over the yield of the raw sugar bought in following the applica-
tion of Article 35, an arbitral analysis shall be carried out by
the laboratory referred to in the first subparagraph of that
Article. In that case, the arithmetic mean of the result of the
arbitral analysis and the results of either the seller's or the
buyer's analysis, whichever is closer to the result of the arbitral
analysis, shall be adopted.

This mean shall be conclusive for establishing the yield of the
raw sugar concerned. If the result of the arbitral analysis lies
midway between the results of the analyses arranged by the
seller and the buyer, the arbitral analysis alone shall be conclu-
sive for establishing the yield of the raw sugar concerned.

— for Grade 1 sugar, no more than one point for each of the

characteristics referred to in Article 32(3)(d),

The costs of an arbitral analysis as referred to in the
5.
second subparagraph of paragraph 1 shall be borne by the
contracting party requesting the analysis.

— for Grade 2 sugar, not greater than two points for each of
the characteristics defining that grade which are determined
by points.

However, at the request of either of the contracting parties, an
arbitral analysis may be carried out by the laboratory referred
to in the first paragraph of Article 35. In that case, the arith-
metic mean of the result of the arbitral analysis and of the
results of the seller's and the buyer's analyses, whichever is
closer to the result of the arbitral analysis, shall be adopted.

The costs of an arbitral analysis as referred to in paragraph 2
shall be shared equally by the intervention agency and the
seller.

The costs of an arbitral analysis as referred to in paragraph 3
shall be borne by the contracting party which contested the
result of the analysis made under Article 35.

This mean shall be conclusive for establishing the grade of the
sugar concerned.
the arbitral analysis lies
midway between the results of the analyses arranged by the
seller and the buyer, the arbitral analysis alone shall be conclu-
sive for establishing the grade of the sugar concerned.

the result of

If

Article 37

Checks on the places of storage

2. Where the difference observed between the results of the
analyses arranged by the seller and the buyer in accordance
with Article 35 is greater than that indicated in the first or
second indent of the first subparagraph of paragraph 1 of this

The competent authority responsible for control shall carry out
unannounced checks on the places of storage in accordance
with Article 4 of Commission Regulation (EC) No 2148/96 (1).

(1) OJ L 288, 9.11.1996, p. 6.

1.7.2006

EN

Official Journal of the European Union

L 178/53

Article 38

Checks on weight and related costs

(a) animal feed;

(b) export;

The experts referred to in Article 35 shall check the

1.
weight of the sugar sold.

The seller shall take all steps necessary to allow the experts to
check the weight and to take samples.

The costs of checking the weight shall be borne by the

2.
seller.

The cost of the experts who check the weight and do the

3.
sampling shall be borne by the intervention agency.

The quantity can be established on the basis of the stock
4.
accounts, which must meet professional specifications and the
intervention agency's requirements, provided that:

(a) the stock records show the weight recorded on weighing
the time of
and the physical quality characteristics at
weighing. The weighing may not have been carried out
more than 10 months previously;

(b) the storekeeper declares that the lot offered corresponds in
all respects to the details contained in the stock records;

(c) the quality characteristics

established at

the time of
the representative

weighing are the same as those of
samples.

SECTION 5

Intervention sales

Article 39

Sales

(c) other purposes, to be determined as required.

The purpose of the tendering procedure shall be to determine
the selling price, the amount of the denaturing premium or the
amount of the export refund, as the case may be.

The terms of the tendering procedure must guarantee
4.
equal access and treatment for all interested parties irrespective
of where in the Community they are established.

Article 40

Notice of invitation to tender

The invitation to tender shall be issued by the interven-

1.
tion agency concerned for the quantities of sugar held by it.

2.
Each intervention agency concerned shall draw up an
invitation to tender, which it shall publish at least eight days
the period for the submission of
before the beginning of
tenders.

The intervention agency shall send the invitation to tender, and
any amendments thereof, to the Commission prior to publica-
tion.

3.

The invitation shall indicate in particular:

(a) the name and address of the intervention agency issuing

the invitation to tender;

(b) the terms of the tendering procedure;

(c) the time limit for submission of tenders;

(d) the lots of sugar put up for tender, and for each lot:

1.
Intervention agencies may sell sugar only after a decision
to this effect has been taken in accordance with the procedure
referred to in Article 39(2) of Regulation (EC) No 318/2006.

— the reference number,

— the quantity,

2.
The sale of sugar under the conditions referred to in
Article 18(3) of Regulation (EC) No 318/2006 shall be by
tendering procedure or by another sales procedure.

— the quality of the sugar concerned,

— the type of packaging,

The terms of

3.
including the
intended use of the sugar to be disposed of, shall be determined
when the decision is taken to issue an invitation to tender.

the tendering procedure,

— the location of the place in which the sugar is stored,

— the delivery stage,

For the purposes of this Section, ‘intended use’ means:

— any facilities at the warehouse for loading onto a means

of transport by inland waterway, sea or rail.

L 178/54

EN

Official Journal of the European Union

1.7.2006

For the purposes of this Section, ‘lot’ means a quantity of sugar
of uniform quality, packaged in the same way and stored in the
same place. The minimum bid for each partial
invitation to
tender shall be 250 tonnes.

4.
The intervention agency shall make such arrangements as
it considers necessary to enable interested parties who so
request to examine the sugar offered for sale.

Article 41

Tender

Award to successful tenderers shall be equivalent to the
1.
conclusion of a sales contract
the quantity of sugar
awarded. Award shall be made, as the case may be, on the
basis of the following factors contained in the tender:

for

(a) the price to be paid by the successful tenderer;

(b) the amount of the denaturing premium;

(c) the amount of the export refund.

(e) the specific period of validity of the denaturing premium

certificate or export licence.

Article 43

Standing invitation to tender

1.
If the situation on the sugar market in the Community so
requires, a standing invitation to tender may be issued for the
sale of sugar.

During the period of validity of the standing invitation to
tender, partial invitations to tender shall be issued.

2.
The standing invitation to tender shall be published only
for the purpose of issuing it. The invitation as published may
be amended or replaced during the period of validity of the
standing invitation to tender. It shall be amended or replaced if
the terms of the tendering procedure are changed during its
period of validity.

2.

The price to be paid by the successful tenderer shall be:

Article 44

(a) the price indicated in the tender, in the case of paragraph

1(a);

Submission of the tender

(b) the price indicated in the terms of the invitation to tender,

in the case of paragraph 1(b) and (c).

The tenders submitted shall be sent to the intervention

1.
agency in electronic form.

Article 42

Terms of the tendering procedure

For

the purposes of

1.
the
the
following terms of the tendering procedure shall be determined
when the decision is taken to issue an invitation to tender:

tendering procedure,

(a) the total quantity or quantities put up for tender;

(b) the intended use;

(c) the time limit for submission of tenders;

(d) the price to be paid by the successful tenderer if the sugar

is intended for animal feed or for export.

Additional terms may be determined in the decision is

2.
taken to issue an invitation to tender, in particular:

(a) the minimum price for sugar put up for sale for a purpose

other than animal feed or export;

2.

Tenders shall state:

(a) the reference of the invitation to tender;

(b) the name and address of the tenderer;

(c) the number of the lot;

(d) the quantity tendered for;

(e) per tonne, as appropriate, expressed in euro to two decimal

places:

— the price proposed, excluding internal charges,

— the proposed amount of the denaturing premium, or

— the proposed amount of the export refund.

The intervention agency may require additional information.

A tender concerning several

3.
contain as many tenders as the lots it concerns.

lots shall be deemed to

(b) the maximum amount of the denaturing premium or the

export refund;

4.

Tenders shall not be valid unless:

(c) the minimum quantity per tenderer or per lot;

(d) the maximum quantity per tenderer or per lot;

(a) proof is supplied before expiry of the time limit for submis-
sion of tenders that the tendering security of EUR 200 per
tonne of sugar has been lodged;

1.7.2006

EN

Official Journal of the European Union

L 178/55

(b) they include a declaration by the tenderer undertaking, for
any quantity of sugar awarded for either a denaturing
premium or an export refund:

conditions and potential outlets. However, a decision may be
taken to make no award.

— to apply for a denaturing premium certificate and to
lodge the security required in that connection, where
the tendering procedure relates to sugar intended for
animal feed,

— to apply for an export licence and to lodge the security
required in that connection, where the tendering proce-
dure relates to sugar intended for export.

A tender may stipulate that it is to be treated as submitted

5.
only if the award:

(a) relates to all or a specified part of the quantity indicated in

the tender;

Article 47

Award of the tender

1.
Except where a decision is taken to make no award under
a tendering procedure or a partial tendering procedure, and
without prejudice to paragraphs 2 and 3 of this Article, the
award shall be made to any tenderer whose tender is not less
than the minimum price or more than the maximum amount
of the denaturing premium or the export refund.

(b) is made not later than a time and date specified by the

tenderer.

For any one lot, the award shall be made to the tenderer
2.
who proposes either the highest price or the lowest amount of
the denaturing premium or the export refund.

6.
Tenders not submitted in accordance with paragraphs 1,
2, 3, 4 and 5, or containing terms other than those indicated in
the invitation to tender, shall not be taken into consideration.

7.

Once submitted, a tender may not be withdrawn.

Article 45

If the lot is not completely accounted for by that tender, the
remainder shall be awarded to other tenderers depending on
the amount of their tender, starting with either the next highest
price or the next lowest denaturing premium or export refund.

3.
If several tenderers propose either the same price or the
same amount for the denaturing premium or the export refund
for one lot or part of a lot, the intervention agency shall award
the quantity concerned by one of the following means:

(a) in proportion to the quantities indicated in the tenders in

Examination of tenders

question;

1.
Tenders shall be examined in private session by the inter-
vention agency. Persons present at the examination shall be
sworn to secrecy.

(b) by dividing that quantity between the tenderers in agree-

ment with them;

(c) by the drawing of lots.

The Commission shall be informed without delay of the

2.
tenders submitted.

Article 46

Fixing amounts

Where the terms of the tendering procedure do not specify
either a minimum price or a maximum amount for the dena-
turing premium or the export refund, these shall be fixed in
accordance with Article 39(2) of Regulation (EC) No 318/2006
after the tenders have been examined, in the light of market

Article 48

Rights and obligations arising from awards

1.

If the sugar is intended for animal feed, awards shall:

(a) confer the right to the issue of a certificate for the quantity
for which the denaturing premium is awarded, showing in
particular the denaturing premium specified in the tender;

(b) entail the obligation to apply for such a certificate for that
quantity to the intervention agency to which the tender
was submitted.

L 178/56

EN

Official Journal of the European Union

1.7.2006

2.

If the sugar is intended for export, awards shall:

(a) confer the right to the issue of an export licence for the
quantity for which the export refund is awarded, showing
in particular the export refund and, in the case of white
sugar, the grade specified in the invitation to tender;

(b) entail the obligation to apply for such a licence for that
quantity and, in the case of white sugar, that grade, to the
intervention agency to which the tender was submitted.

Rights shall be exercised and obligations fulfilled within
3.
18 days following expiry of the time limit for submission of
tenders.

Rights and obligations arising from awards shall not be

4.
transferable.

Article 49

Statement of award

2.
In cases of force majeure, the intervention agency shall
determine the measures necessary in view of the circumstances
invoked by the successful tenderer.

Article 51

Removal order

1.
The successful tenderer may not remove the purchased
sugar from storage or conclude a storage contract under Article
50(1) until a removal order is issued for the quantity awarded.

However, removal orders may be issued for parts of that quan-
tity.

Removal orders shall be issued by the intervention agency
concerned at the request of the interested party.

immediately send state-
1.
The intervention agency shall
tenderers and notify all
ments of award to the successful
tenderers of the outcome of their participation in the tendering
procedure.

2.
The intervention agency shall not issue a removal order
unless it is proved that the successful tenderer has either lodged
a security to guarantee payment of the price for the sugar
awarded within the time laid down, or provided a negotiable
instrument.

2.

Statements of award shall indicate at least:

(a) the procedure to which the tender relates,

(b) the number of the lot and the quantity awarded;

(c) the price, the amount of the denaturing premium or the
amount of the export refund, as the case may be, accepted
for the quantity awarded.

The security or negotiable instrument shall correspond to the
price to be paid by the successful tenderer for the quantity of
sugar for which a removal order has been requested.

Article 52

Payment

Article 50

Removal of the sugar purchased

The payment for the sugar awarded must be made to the
later than the 30th day

1.
intervention agency's account not
following the issue of a removal order.

1.
Except in cases of force majeure, the sugar purchased shall
be removed from storage not later than four weeks following
the date on which the statement of award referred to in Article
49 is received. Instead of removing the sugar from storage, the
successful tenderer may agree with the intervention agency to
conclude a storage contract within that time with the ware-
houser of the sugar concerned.

2.
Except in cases of force majeure, the security referred to in
Article 51(2) shall be released only for the quantity for which
the successful tenderer has paid the purchase price to the
the intervention agency within the time limit
account of
referred to in paragraph 1 of this Article. The security shall be
released immediately.

However, the intervention agency may if necessary allow a
longer period for removing particular lots from storage where
there are technical difficulties regarding removal from storage.

3.
In cases of force majeure, the intervention agency shall
determine the measures necessary in view of the circumstances
invoked by the successful tenderer.

1.7.2006

EN

Official Journal of the European Union

L 178/57

Article 53

Transfer of ownership

Ownership of sugar awarded under a tendering procedure

1.
shall be transferred when the sugar is removed from storage.

However,

the intervention agency and the successful
2.
tenderer may agree to ownership being transferred at another
stage. Where the intervention agency and the successful
tenderer have reached an agreement under Article 50(1), they
may determine jointly at what stage the transfer of ownership
is to take place.

Agreement on the transfer of ownership shall be valid

3.
only if it is concluded in writing.

Article 54

Determining the grade or yield

3. Where application of Articles 35 and 36 establishes that
the yield of raw sugar is other than that indicated in the invita-
tion to tender:

(a) the price of the sugar shall be adjusted in accordance with

Article 33;

(b) the amount of the denaturing premium or export refund
shall be adjusted by multiplying it by a coefficient equal to
the yield established divided by the yield indicated in the
invitation to tender.

Article 56

Release of the security

Except in cases of force majeure, the tendering security

1.
shall be released only for the quantity for which:

(a) either the successful tenderer has:

— applied, after fulfilling the requirements, for either a
denaturing premium certificate or an export licence,

— lodged the security or provided the negotiable instru-

ment referred to in Article 51(2),

Articles 35 and 36 shall apply for the purposes of determining
the grade or yield of the sugar concerned when it is removed
from storage.

— has removed the sugar from storage within the time

limit laid down,

However, the contracting parties may agree, after the award
has been made, that the grade or yield determined when the
sugar was bought in by the intervention agency shall apply to
the sugar sold under the tendering procedure.

(b) or no award is made.

2.

The security shall be released immediately.

3.
In cases of force majeure, the intervention agency shall
determine the measures necessary in view of the circumstances
invoked by the successful tenderer.

Article 55

Adjustment of the price of sugar

Article 57

Notifications of quantities

1. Where application of Articles 35 and 36 establishes that
white sugar is of a grade lower than that indicated in the invita-
tion to tender, the price for that sugar intended for the uses
referred to in points (b) and (c) of the second subparagraph of
Article 39(3) shall be adjusted in accordance with Article 32(6).

Member States shall notify to the Commission, as soon as they
know them, the quantities of white sugar and of raw sugar:

— offered but not yet accepted by the intervention agency;

2.
If it is found that white sugar intended for export is of a
grade other than that indicated in the invitation to tender, the
grade shown in the export licence shall be corrected.

— accepted by the intervention agency;

— sold by the intervention agency.

L 178/58

EN

Official Journal of the European Union

1.7.2006

CHAPTER VII

TRANSITIONAL AND FINAL PROVISIONS

Article 58

Communications

However, Regulations
(EC) No 1261/2001 and (EC) No
314/2002 shall continue to apply to production in the
2005/06 marketing year and Regulation (EC) No 1262/2001
shall continue to apply to sugar accepted into intervention
before 10 February 2006.

The communications to the Commission referred to in Articles
12, 21, 22 and 57 of this Regulation shall be transmitted elec-
tronically using forms made available to the Member States by
the Commission.

Article 59

Repeals

Article 60

Entry into force

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Union.

It shall apply from 1 July 2006.

Regulations (EC) No 1261/2001, (EC) No 1262/2001 and (EC)
No 314/2002 are hereby repealed.

Articles 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36,
37 and 38 shall apply only until 30 September 2010.

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

Done at Brussels, 29 June 2006.

For the Commission

Mariann FISCHER BOEL

Member of the Commission

1.7.2006

EN

Official Journal of the European Union

L 178/59

ANNEX

QUANTITIES BY MEMBER STATE REFERRED TO IN ARTICLE 23(3)

Member State

Belgium

Czech Republic

Denmark

Germany

Greece

Spain

France (metropolitan)

France (Overseas Departments)

Ireland

Italy

Latvia

Lithuania

Hungary

Netherlands

Austria

Poland

Portugal (mainland)

Portugal (Azores)

Slovenia

Slovakia

Finland

Sweden

United Kingdom

Quantities
(tonnes)

28 204

15 648

14 475

117 550

10 923

34 298

113 141

16 522

6 855

53 580

2 288

3 544

13 819

29 743

13 325

57 519

2 398

342

1 822

7 136

5 026

12 669

39 172