Commission Regulation (EC) No 707/2008 of 24 July 2008 amending Regulation (EC) No 952/2006 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: 2008-07-24
Institutions: European Commission
Subjects: award of contract, common organisation of markets, prices policy, private stock, production quota, regulation of agricultural production, sugar industry

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COMMISSION REGULATION (EC) No 707/2008

of 24 July 2008

amending Regulation (EC) No 952/2006 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
Community,

establishing the European

High Performance Liquid Chromatography method which
is the only one possible from a technical point of view.
Finally, to reflect technical progress, it is appropriate to
mention only the refractrometric method to determine
the dry matter content. The modifications should apply
from 1 October 2008 in order to ensure that legitimate
expectations of sugar producers are respected.

Having regard to Council Regulation (EC) No 318/2006 of
the
20 February 2006 on the common organisation of
markets in the sugar sector (1), and in particular Article 40
thereof,

(3)

Having regard to Council Regulation (EC) No 1234/2007 of
22 October 2007 establishing a common organisation of agri­
cultural markets and on specific provisions for certain agri­
cultural products (Single CMO Regulation) (2),
in particular
Article 50(1), in conjunction with Article 4 thereof,

Whereas:

(1)

(2)

It may occur that white sugar produced by a given
undertaking during a given marketing year is further
processed into white sugar with specific requirements.
Pursuant to Article 3 of Commission Regulation (EC)
No 952/2006 (3), sugar production is expressed in the
total quantity of white sugar produced by a given under­
taking in a marketing year.
In order to avoid double
counting, it is necessary to exclude from that production
white sugar resulting from further processing of white
sugar.

Article 3(3) of Regulation (EC) No 952/2006 provides
for two methods to determine the sugar content of
intermediate or
syrups depending on their status of
non-intermediate syrups. Considering that one of
the
methods is obsolete,
is appropriate to simplify by
referring only to the other method based on the
extractable sugar content. However in the specific case
of syrups from invert sugar, it is necessary to refer to the

it

(1) OJ L 58, 28.2.2006, p. 1. Regulation as last amended by Regulation

(EC) No 1260/2007, (OJ L 283, 27.10.2007, p. 1).

(2) OJ L 299, 16.11.2007, p. 1. Regulation as last amended by
Commission Regulation (EC) No 510/2008, (OJ L 149, 7.6.2008,
p. 61).

(3) OJ L 178, 1.7.2006, p. 39. Regulation as amended by Regulation

(EC) No 551/2007, (OJ L 131, 23.5.2007, p. 7).

the markets

the purposes of

Article 6(3) of Regulation (EC) No 952/2006 defines the
the
production of undertakings for
common organisation of
in the sugar
sector,
in the particular case where one undertaking
outsources production to another. That outsourced
production is deemed to be the production of
the
including the case
principal under certain conditions,
where the total sugar production of the processor and
the principal is more than the sum of their quotas. That
condition was adapted in the light of the preventive with­
drawal decided for the marketing year 2006/2007 so
that it concerns the sum of the preventive withdrawal
thresholds of the processor and the principal instead of
the sum of the quotas. Commission Regulation (EC) No
290/2007 of 16 March 2007 establishing,
the
2007/2008 marketing year, the percentage provided for
in Article 19 of Regulation (EC) No 318/2006 (4)
introduced a preventive withdrawal
threshold for the
marketing year 2007/2008. Council Regulation (EC) No
1260/2007 (5), which has amended Regulation (EC) No
318/2006, includes a provision for the Commission to
decide each year on a possible preventive withdrawal
threshold.
therefore necessary to modify the
condition for the outsourcing set out in Article 6(3)(b)
of Regulation (EC) No 952/2006 so that it concerns the
sum of
the
processor and the principal instead of the sum of quotas.

the preventive withdrawal

thresholds of

for

is

It

(4)

(5)

It is necessary to provide for mutual assistance between
Member States to ensure effective controls.

Preferential sugar imports from African, Caribbean and
Pacific countries as well as from least developed countries
into the Community will gradually increase as from
It is expected that, by 2012, those
1 October 2009.
imports will
25 % of
Community’s sugar consumption. The price information
system should therefore include prices and quantities of
imported raw and white sugar from those countries,
the Statistical
currently available in the database of
Office of the European Communities

for more

account

than

(4) OJ L 78, 17.3.2007, p. 20. Regulation as amended by Regulation

(EC) No 1263/2007 (OJ L 283, 27.10.2007, p. 15).

(5) OJ L 283, 27.10.2007, p. 1.

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(6)

(7)

(8)

(9)

The transmission of sugar prices for the price recording
system takes place within a transitional system with
quarterly transmissions from approved operators to the
Commission. A final and computerised system of trans­
mission has been elaborated. This system will enable a
monthly transfer of prices from approved operators to
the Member State followed by a transfer of the national
price averages from Member States to the Commission.
Provisions
system should replace the
provisions for the transitional system.

the final

for

shorter than three months which is considered insuf­
ficient to have an effect on the market prices.

for white

(12) A tendering procedure should be provided when average
Community prices
sugar are below the
reference price and are likely to remain at that level. It
is appropriate to determine a threshold for market price
below which a private storage aid is considered to
average
become necessary. The
Community price
the
reference price.

threshold for
set

the
at 85 % of

should be

from 1 October 2008, Regulation (EC) No
As
1234/2007 will replace Regulation (EC) No 318/2006.
Rather than transferring Annex II to Regulation (EC) No
318/2006 concerning the purchase terms for beet to the
Single CMO Regulation, Article 50 of Regulation (EC) No
the Commission lays down
1234/2007 provides that
those rules in implementing rules. The rules currently
contained in Annex II to Regulation (EC) No 318/2006
should therefore be added to Regulation (EC) No
952/2006.

for the assessment of

The Community stock at the end of each marketing year
the sugar market
is important
situation in view of possible market management
decisions, notably the withdrawal.
In certain factories,
the processing of sugar for the new marketing year
starts in the summer and the new production increases
the monthly end-stocks of sugar manufacturers. In order
to know the accurate Community stock at the end of the
marketing year, it is necessary that approved sugar manu­
facturers and Member States
the
months of July, August and September the part of their
the
end-stocks which results from the production of
following marketing year.

communicate

for

(13)

The restructuring process of the sugar industry in the
Community has created regional differentiation with
surplus regions (either due to local production or to
imports) and deficit regions. The surplus regions are
expected to be subject to downward pressure on prices
at producers’ level due to the excess of the local supply
over the local demand. By contrast, the deficit regions are
expected to enjoy firmer prices at producers’ level due to
supply compared to local
the scarcity of
demand. The average Community price will not fully
reflect the price drop in certain Member States.
It is
therefore necessary to provide for an opening of the
tendering procedure
limited to the Member States
where the national average prices fall below 80 % of
the reference price.

the local

(14)

It is necessary to specify the requirements for the white
sugar eligible to private storage aid.

(15)

Tenders should contain all the information necessary to
assess
them, and communications between Member
States and the Commission should be provided for.

Article 18(1) of Regulation (EC) No 318/2006 provides
that an aid for the private storage of white sugar may be
granted to sugar manufacturers who are allocated a
quota, on the basis of the market price trend reflected
by the recorded market prices. In order to implement the
aid scheme quickly and when required, detailed rules for
the application of
the private storage scheme in the
marketing year 2007/2008 should be added to Regu­
lation (EC) No 952/2006.

(16) On the basis of the tenders received, a maximum aid may
be fixed. However situations may arise in which none of
the tenders received may be accepted.

(17)

The information needed to establish the contract of
storage should be specified as well as the starting and
ending dates of the contractual storage period and the
contracting obligations of the sugar manufacturer.

(10)

The aid for the private storage of white sugar should be
determined by a tendering procedure in order to make
the most efficient possible use of the resources available
and to increase transparency and competition among
manufacturers.

(11)

The mandatory storage period is limited to 31 October
2008. Therefore tenders should not be lodged after
31 July 2008 to avoid an aid for a storage period

(18) A security should ensure that the quantities offered and
possibly accepted are stored pursuant to the conditions
set out in the present Regulation. Therefore, provisions
should be adopted for the release and the forfeiting of
the security lodged in accordance with Commission
Regulation (EEC) No 2220/85 of 22 July 1985 laying
down common detailed rules for the application of the
system of securities for agricultural products (1).

(1) OJ L 205, 3.8.1985, p. 5. Regulation as last amended by Regulation

(EC) No 1913/2006 (OJ L 365, 21.12.2006, p. 52).

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(19)

(20)

(21)

In the light of the evolution of the market situation for
the ongoing marketing year and of the forecasts for the
following marketing year, the Commission may give the
possibility to the contracting parties to dispose of the
sugar under contracts before the end of the contractual
storage period.

it

In order to ensure that the scheme is properly admi­
is necessary to indicate the conditions in
nistered,
which an advance payment may be granted,
the
adjustment of the aid in cases where the contractual
checks of
quantity
is not
compliance with entitlement
the possible
sanctions and the information to be notified to the
Commission by the Member States.

the
to the aid,

respected,

entirely

The allocation of the maximum quantity of 600 000
tonnes for intervention buying fixed in Article 18(2) of
Regulation (EC) No 318/2006 should be adapted for the
marketing year 2007/2008 to take into account changes
in quotas per Member State as well as the accession of
Bulgaria and Romania.

(22)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for sugar and the Management Committee
for the Common Organisation of Agricultural Markets,

HAS ADOPTED THIS REGULATION:

Regulation (EC) No 952/2006 is amended as follows:

Article 1

(b) quantities of white sugar produced from white
sugar, raw sugar, syrups or sugar sweepings
which were
the
marketing year in which the white sugar was
manufactured;’;

produced

during

not

(ii) point (e) is replaced by the following:

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

(b) in paragraph 3, points (d) and (e) are replaced by the

following:

‘(d)

in the case of syrups on the basis of extractable
sugar content determined in accordance with para­
graphs 5 and 6;

(e)

in the case of syrups from invert sugar on the basis
on sugar content as determined by the High
Performance Liquid Chromatography method.’;

(c) paragraph 5 is replaced by the following:

The percentage purity of

‘5.
shall be
calculated by dividing the total sugar content by the
dry matter content and multiplying the result by 100.
Dry matter content shall be determined by refrac­
tometry.’;

syrups

1. Article 1 is replaced by the following:

(d) the following paragraphs are added:

‘Article 1

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, the conditions for
buying sugar into intervention and selling sugar from inter­
vention and the private storage for the marketing year
2007/2008.’;

2. Article 3 is amended as follows:

(a) paragraph 2 is amended as follows:

‘6.
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.

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

3.

in Article 6(3), point (b) is replaced by the following:

(i) points (a) and (b) are replaced by the following:

‘(b) the total sugar production of the processor and of the
principal is more than the sum of their quotas; or

‘(a) quantities of white sugar produced from white
sugar, raw sugar or syrups which were not
produced in the undertaking which manu­
factured the white sugar;

(i) for the marketing year 2006/2007, the sum of the
thresholds
them in accordance with
Article 3(2) of Commission Regulation (EC) No
493/2006 (*);

fixed for

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(ii) for the marketing year 2007/2008, the sum of the
thresholds
them in accordance with
Article 1(2) of Commission Regulation (EC)
No 290/2007 (**);

fixed for

shall be transmitted before 15 August 2008 and shall
concern the data established in May and June 2008.

(iii) from the marketing year 2008/2009, the sum of
the thresholds fixed for them in accordance with
Article 19(2) of Regulation (EC) No 318/2006 or
where applicable with Article 19a(1) of that Regu­
lation.

___________
(*) OJ L 89, 28.3.2006, p. 11.
(**) OJ L 78, 17.3.2007, p. 20.’

4.

in Article 10, the following paragraph is added:

Each Member State shall communicate to the Commission
before the end of each month the averages of prices
collected at national
level, as well as the total corre­
sponding quantities and the standard deviations. The
averages and standard deviations shall be weighted by the
quantities
the
previous paragraph.

communicated by undertakings under

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

‘6.
The Member States shall assist one another to ensure
effective controls, and to ensure the check on the authen­
ticity of documents submitted and/or the accuracy of the
data exchanged.’;

Upon simple request to the Member State, the Commission
may have access to individual data sent by approved
operators in accordance with Article 13(1).

5. after Article 14, the following Article 14a is inserted:

‘Article 14a

Additional information

also

In addition to the prices collected at Community level in
this Regulation,
accordance with Article 14 of
the
inform the Management
shall
Commission
Committee for Sugar of prices and quantities for raw and
white sugar imported from African, Caribbean and Pacific
countries under the arrangements for products originating
in certain states which are part of the African, Caribbean
in
and Pacific
agreements establishing, or leading to the establishment
of, Economic Partnership Agreements (*) and from least
developed countries as listed in Column D of Annex I to
Council Regulation (EC) No 980/2005 (**) based on
customs declarations and data available in the database of
the Statistical Office of the European Communities.

(ACP) Group of States provided for

___________
(*) OJ L 348, 31.12.2007, p. 1.
(**) OJ L 169, 30.6.2005, p. 1.’;

6. after Article 15, the following Article 15a is inserted:

‘Article 15a

Final provisions for the transmission of price data

to the obligation set out

Each undertaking subject
in
Article 13 shall communicate before the 15th of each
data
month
accordance with
the
in
Article 13(1)
to the Member State which granted the
approval. The first communication to the Member State

established

Other operators in the sugar sector,
in particular buyers,
may communicate to the Commission the average price for
sugar established in accordance with Article 13. Operators
shall give their name, business name and address.’;

7. after Article 16, the following Article 16a is inserted:

‘Article 16a

Purchase terms for beet

Agreements within the trade and delivery contracts referred
to in Article 50(1) of Regulation (EC) No 1234/2007 shall
conform to purchase terms laid down in Annex II of this
Regulation.’;

8.

in Article 21, paragraph 1 is replaced by the following:

‘1.
Each approved manufacturer or refiner shall notify to
the competent authority of the Member State in which
production or refining took place, before the 20th of
the total quantities, expressed as white
each month,
in
of
sugar,
Article 3(1)(a) to (d):

indicated

syrups

sugars

and

the

(a) owned by him or covered by a warrant; and

(b) stored in free circulation on Community territory at the

end of the previous month.

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Those quantities shall be broken down into:

(a) sugar produced by that undertaking specifying the
quantities of quota sugar and those in excess of the
quota, carried forward or withdrawn in accordance
with Articles 14 or 19 of Regulation (EC) No
318/2006.
in the quantities of quota
sugar at the end of the months of July, August and
September,
from the
the quantity which comes
production of sugar under the following marketing
year shall be specified;

In addition,

(b) other sugar.’;

9. Article 23 is amended as follows:

(b) the recorded average prices for white sugar are likely to
remain at or below that level on the basis of the market
situation, account being taken of expected effects of
market management mechanism and notably the with­
drawal.

The opening of

3.
the tendering procedure may be
limited to sugar stored or to be stored by sugar manufac­
turers approved in a Member State where the following
conditions are met:

(a)

the average Community price for white sugar recorded
within the price reporting system is below the reference
price; and

(a)

in paragraph 3, ‘Annex’ is replaced by ‘Annex I’;

(b) in the Member State concerned, the average price for
white sugar recorded within the price reporting system
is below 80 % of the reference price.

(b) in the first and second subparagraphs of paragraph 4,

‘Annex’ is replaced by ‘Annex I’;

10. after Article 57, the following Chapter VIa is inserted:

‘CHAPTER VIa

STORAGE

FOR THE MARKETING YEAR

PRIVATE
2007/2008

Article 57a

Tendering procedure

for

the private storage of white sugar,

In order to determine the aid to be granted for carrying out
the
contracts
Commission may,
in accordance with the procedure laid
down in Article 39(2) of Regulation (EC) No 318/2006,
open a tendering procedure for a limited period by
Commission Regulation, hereinafter referred to as “Regu­
lation opening a tendering procedure”.

The Regulation opening the tendering procedure shall

4.
contain the following information:

(a)

the period covered by the tender (tendering period) and
the different sub-periods when the tenders can be
lodged;

(b) the opening and closing time between which tenders

may be lodged;

(c)

in the case where paragraph 3 applies, the Member
States where sugar is stored or will be stored;

(d) the global quantity, possibly per Member State if
tendering

covered by

the

paragraph 3 applies,
procedure, if applicable;

Article 57b

Opening of the tendering procedure

The Regulation opening a tendering procedure may

1.
be adopted until 31 July 2008.

The opening of

2.
the tendering procedure may be
decided for the sugar stored or to be stored where the
following conditions are met:

(e)

the storage period in compliance with Article 57j;

(f)

the minimum quantity each tender must provide for;

(g) the amount of the security per unit;

(a)

the average Community price for white sugar recorded
within the price reporting system is below 85 % of the
reference price; and

(h) the competent authority of Member States to which

tenders are to be sent.

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Invitations to tender for a limited period may be
5.
closed before the end of the tendering period in accordance
with the procedure laid down in Article 39(2) of Regulation
(EC) No 318/2006.

(a)

it indicates a reference to the Regulation opening the
tendering procedure and the expiry date for the sub-
period of submission of the tenders;

Article 57c

Sugar requirements

Sugar for which a tender is presented shall be:

(a) white sugar in crystal form in bulk and/or in big bags

(800 kg or more) and/or in 50 kg bags;

(b) produced within a quota during the marketing year in
which the tender is made with the exclusion of white
sugar withdrawn, carried forward or stored in public
intervention;

(b) it indicates the identification data of the tenderer: name,

address and the VAT registration number;

(c)

it indicates the quantity covered by the tender;

(d) it indicates the amount of aid offered per day and per

tonne in euros and cents;

(e)

sub-period,

the tenderer has lodged a security before the end of the
submission
the
in
III of Regulation (EEC) No
provisions of Title
2220/85, and has provided proof thereof within the
same period;

accordance with

(c) of sound and fair marketable quality, free-flowing, with

a moisture content not exceeding 0,06 %.

(f)

it does not include any conditions introduced by the
tenderer other than those mentioned in this Regulation
and in the Regulation opening the tendering procedure;

Article 57d

Submission of tenders

(g)

it is presented in the official language, or one of the
official
languages of the Member State in which the
tender is lodged.

Tenders shall be lodged by approved sugar manufac­
1.
turers referred to in point (a) of Article 7(1), established
and registered for VAT purposes in the Community.

Tenders shall not be withdrawn or amended after

5.
their submission.

Each tender

shall be lodged to the

2.
competent
authority of the Member State where the storage of the
sugar will take place. Where the opening of the tendering
procedure is limited to one or several Member States in
shall only be
accordance with Article 57b(3),
lodged in those Member States.

tenders

competent

authorities of

concerned. The

Tenders may be lodged by electronic means, using the
3.
method made available to the operators by the Member
State
the
Member States may require that electronic tenders be
accompanied by an advance electronic signature within
(2) of Directive
the meaning of Article 2, point
the European Parliament and of
1999/93/EC of
the
Council (*).
In all other cases, the competent authorities
shall require an electronic signature offering equivalent
assurances with regard to the functionalities attributed to
a signature by applying the same rules and conditions as
those defined in the Commission’s provisions on electronic
and digitised documents, set out by Commission Decision
No 2004/563/EC, Euratom (**), and in its implementing
rules.

A tender shall be valid if the following conditions are

4.
met:

The approved sugar manufacturer who lodges a
6.
tender is deemed to be aware of the provisions applicable
under the tendering procedure and to have accepted them.

Article 57e

Examination of tenders

1.
The competent authorities of the Member States shall
examine tenders based on the elements mentioned in
Article 57d(4). They shall decide on the validity of tenders.

Persons authorised to receive and examine the tenders
2.
shall be under an obligation not to disclose any particulars
relating thereto to any unauthorised person.

In the case of an invalid tender, the competent auth­
inform the tenderer

the Member States shall

3.
orities of
thereof.

Article 57f

Notification of the tenders to the Commission

All valid tenders shall be notified to the Commission

1.
by the competent authorities of the Member States.

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The notifications shall not contain the data referred to

2.
in Article 57d(4)(b).

The notifications shall be made by electronic means,
3.
using the method indicated to the Member States by the
Commission, within a
specific period fixed by the
Commission Regulation opening the tendering procedure.

The form and content of the notifications shall be defined
on the basis of models made available by the Commission
to the Member States.

4.
Nil returns shall be notified to the Commission by
the Member States within the deadline referred to in para-
graph 3.

Article 57g

Decision on the basis of the tenders

On the basis of the tenders notified in accordance
1.
with Article 57f(3),
the Commission shall decide in
accordance with the procedure laid down in Article 39(2)
of Regulation (EC) No 318/2006:

(a) not to fix a maximum amount of the aid; or

(b) to fix a maximum amount of the aid.

In the case of tenders submitted at the level of the
2.
maximum aid, if Article 57b(4)(d) is applicable, a coefficient
applicable to awarding the quantities tendered shall be fixed
by the Commission.

By way of derogation from Article 57d(5), the tenderer to
which such a coefficient applies may decide to withdraw its
tender.

The competent authorities of the Member States shall
3.
adopt decisions referred to in paragraphs 1 and 2 after the
publication of Commission’s Decision on aid referred to in
Article 57g(1) and notify to tenderers of the outcome of
their participation within a deadline of three working days
after the publication.

The rights and obligations of the successful tenderer

4.
shall not be transferable.

Article 57i

Information related to the place of storage

Within five working days after the reception of the notifi­
cation from the Member State, the successful tenderer shall
send to the competent authority of the Member State:

(a)

the address of the storage place or places and for each
storage place the precise location of the silos or lots
with the corresponding quantities;

(b) one of the following:

(i) a confirmation that the quantities covered by the
in
referred to in

tender
already
compliance with the conditions
Article 57k(c); or

storage place

in the

are

(ii) the date of entry into store of each of the lots
which are not yet in place and the necessary time
framework for placing the contractual quantity in
referred to in
compliance with the conditions
Article 57k(c). The
shall
tenderer
successful
indicate for each lot entering the place of storage,
the quantity and the precise location.

The Decision on the private storage aid shall be

3.
published in the Official Journal of the European Union.

Article 57j

Specification of the contracts and storage period

Article 57h

Individual decisions on tenders

1. Where a maximum amount of the aid has been fixed
in accordance with Article 57g(1)(b), the competent auth­
orities of the Member States shall accept tenders notified in
accordance with Article 57f which are equal to or lower
to
the maximum amount without
than
Article 57g(2). All other tenders shall be rejected.

prejudice

2. Where no maximum amount has been fixed, all
tenders shall be rejected.

the

After

complete

transmission of

1.
information
referred in to Article 57i, the competent authority of the
Member State shall notify the successful tenderer that all
the necessary information has been provided and that from
that moment on a contract
is deemed to have been
concluded.

The contract shall

2.
the
present Chapter, of the Regulation opening the tendering
procedure, of the tender and of the information mentioned
in Article 57i.

include the provisions of

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The date of conclusion of the contract shall be that
3.
on which the competent authority of the Member State
notifies
to the contracting party in accordance with
paragraph 1.

(c)

to keep in storage the contractual quantity for the
storage period under
the conditions referred to in
Article 57k.

storage period shall

For the sugar which was already placed into storage,
4.
the contractual
start on the day
following the date of conclusion of the contract. In the
the contractual
case of sugar which is not yet stored,
storage period shall start on the day following that on
which the entire contractual quantity has been placed
into storage.

The last day of the contractual storage period shall be

5.
31 October 2008, subject to Article 57m.

Article 57k

Obligations on the contracting party

Contracts shall impose at least the following obligations on
the contracting party:

(a)

requirements

to place and keep the contractual quantity in storage
during the contractual storage period, at his own risk
and expense, in conditions ensuring the maintenance of
the sugar
referred to in Article 57c,
without substituting the stored products or transferring
them to another storage place; however, in exceptional
cases and on duly motivated request, the competent
authority may authorise a relocation of
the stored
products;

(b) to retain the weighing-in documents established at the

time of entry into the storage place;

(c)

to make the products stored easily and individually
identifiable. Each unit
individually stored shall be
marked so that the contract number, the product and
the weight are shown;

(d) to allow the competent authority to check at any time
that all the obligations laid down in the contract are
being observed.

Article 57l

Securities

The

security

with
1.
Article 57d(4)(e) within the meaning of Article 20(2) of
Regulation (EEC) No 2220/85 shall ensure in particular:

accordance

lodged

in

(a) not to withdraw a tender;

(b) transmit the information referred to in Article 57i for

the conclusion of the contract;

Securities shall be released immediately where tenders
successful or are withdrawn in

2.
are invalid, are not
accordance with Article 57g(2).

3.
Securities shall be released in respect of quantities for
which the obligations have been fulfilled in accordance
with 57o(2).

Article 57m

Shortening the term of contracts

On the basis of developments on the sugar market, the
Commission, may, in accordance with the procedure laid
down in Article 39(2) of Regulation (EC) No 318/2006,
allow the contracting party to dispose of the sugar under
contract before the end of the contractual storage period.

Article 57n

Advance payment

After 60 days of storage, a single advance payment of the
request,
aid may be made, at
provided that he lodges a security equal to the advance
payment plus 10 %. In this case, the security referred to
in Article 57l shall be released.

the contracting party’s

The advance payment shall not exceed the amount of aid
corresponding to a storage period of three months. The
security referred to in the first subparagraph shall be
released as soon as the balance of the aid has been paid.

Article 57o

Payment of aid

1.
The aid, or where an advance has been granted under
Article 57n, the balance of the aid shall be paid on the
basis of an application for payment and only when the
the contract have been met. Payment of
obligations of
the aid, or
shall be made
the aid,
the balance of
following the final check and within 120 days following
the day when an application for the payment of aid has
been lodged.

2.
The requirements relating to the contractual quantity
shall be regarded as being met only where the quantity is
verified as specified in Article 57p(5). However Member
States may decide that the requirements relating to the
contractual quantity are regarded as being met on the
basis of a margin of
tolerance which shall not exceed
1 % of the contractual quantity.

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If the quantity actually stored during the contractual storage
period is less than the contractual quantity, account being
taken of the possible margin of tolerance, but not less than
80 % of the contractual quantity, the aid for the quantity
actually stored shall be reduced by half.

During the final month of the storage period, the
5.
authority charged with the checking shall undertake a
final check to ensure that
the contractual quantity is
present in the storage place by means of an unannounced
check in compliance with paragraph 4(b).

If the quantity actually stored during the contractual storage
period is less than 80 % of the contracted quantity, no aid
shall be paid.

Article 57p

Check

1. Within 30 days of the date of conclusion of the
contract,
the competent authority in the Member State
shall carry out an initial check and in particular:

In the case of significant irregularities affecting at least
6.
the quantities of products covered by a single
5 % of
the verification shall be
contract subject
extended to a larger sample to be determined by the
authority responsible for the checks.

to the check,

Article 57q

Reports on checks

A report shall be drawn up on the checks carried out
pursuant to Article 57p, specifying:

(a)

identify the silos or lots of storage;

(a)

the date and time of commencement of the check;

(b) verify the weight of the stored products on the basis of
the weighing-in documents and the stocks and financial
accounts and where possible with a physical check by
sample weighting. The sample concerned shall be rep­
resentative and shall correspond to at least 5 % of the
total quantity;

(c)

take a sample representative of the contractual quantity
which shall be analysed as quickly as possible to ensure
that the sugar corresponds to the requirements referred
to in Article 57c.

If

the analysis confirms that

2.
the sugar does not
correspond to the requirements referred to in Article 57c,
the entire quantity covered by the contract shall be rejected
and the security referred to in Article 57d(4)(e) shall be
forfeit.

3. Where the Member State can offer duly justified
reasons, the time limit laid down in the first subparagraph
of paragraph 1 may be extended by 15 days.

The authority charged with carrying out the checks

4.
shall:

(a) either seal the products by contract, storage lot or a

smaller quantity at the time of the initial check;

(b) or make an unannounced check to ensure that the
in the storage place.
contractual quantity is present
The check shall be based on stocks and financial
accounts and where possible with a physical check by
sample weighting. The sample concerned shall be rep­
resentative and shall correspond to at least 5 % of the
total quantity.

(b) its duration;

(c)

the operations carried out providing, in particular, the
details of and references to the documents and products
examined;

(d) the findings and conclusions.

The report shall be signed by the inspector responsible and
countersigned by the contracting party or, as the case may
be, the person responsible for the storage, and shall be
included in the payment file.

Article 57r

Sanctions

1. Where it is found that a document presented by a
tenderer for the attribution of the rights deriving from this
Chapter provides for incorrect information and where the
incorrect information concerned is decisive for the attri­
bution of
the
Member State shall exclude the tenderer from participating
in the tendering procedure for granting aid for the private
storage of sugar, for a period of one year from the date
when a final administrative decision establishing the irregu­
larity has been made.

the competent authorities of

that right,

Paragraph 1 shall not apply if the applicant proves, to
2.
the satisfaction of
the
situation referred to in paragraph 1 is not due to his
gross negligence or that it is due to force majeure or to
obvious error.

the competent authorities,

that

3. Member States shall
inform the Commission of the
cases of application of paragraph 1. The Commission shall
keep the information available to the other Member States.

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Article 57s

Communication to the Commission

Member States shall notify the Commission of the quan­
tities of sugar for which tenders have been accepted in
accordance with Article 57h(1) and:

The form and content of the notifications shall be defined
on the basis of models made available by the Commission
to the Member States.
___________
(*) OJ L 13, 19.1.2000, p. 12.
(**) OJ L 251, 27.7.2004, p. 9.’

(a)

in respect which no contract has subsequently been
concluded; or

11. The Annex becomes Annex I and is replaced by the text in

Annex I to this Regulation.

(b) in respect of which contracts have subsequently been
concluded but which had to be cancelled due to non-
compliance with contractual obligations;

12. The text
Annex II.

in Annex II

to this Regulation is added as

(c) which are

released

from contractual obligations
following a Commission Decision in accordance with
Article 57m.

the

sub-period of

The notifications referred to in the first subparagraph shall
specify
tendering procedure
concerned and shall take place at the earliest opportunity
and not later than the 10th day of the month following the
month concerned.

the

Article 2

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

Points 2(b) to (d) and points 7 and 12 of Article 1 shall apply
as from 1 October 2008.

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

Done at Brussels, 24 July 2008.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

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ANNEX I

‘ANNEX I

Quantities by Member State referred to in Article 23(3) for the marketing year 2007/08

(tonnes)

Member State

Belgium

Bulgaria

Czech Republic

Denmark

Germany

Greece

Spain

France (metropolitan)

France (overseas departments)

Italy

Lithuania

Hungary

Netherlands

Austria

Poland

Portugal (mainland)

Portugal (Azores)

Romania

Slovakia

Finland

Sweden

United Kingdom

Quantities

31 615

170

13 346

16 213

130 985

5 687

31 790

130 447

17 208

27 012

4 013

10 699

33 376

14 541

63 513

537

357

3 912

5 278

3 225

12 306
43 769’

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ANNEX II

‘ANNEX II

Purchase terms for beets, referred to in Article 16a

POINT I
For the purposes of this Annex “Contracting Parties” means:

(a) sugar undertakings (hereinafter referred to as manufacturers), and

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

POINT II

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

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

POINT III

1. Delivery contracts shall indicate the purchase prices for the quantities of beet referred to in point (a) and, if appro­
priate, point (b), of Article 50(3) of Regulation (EC) No 1234/2007. In the case of the quantities referred to in the
point a) of Article 50(3), those prices may not be lower than the minimum price for quota beet referred to in
Article 49(1).

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

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

3. Where a seller has signed a delivery contract with a manufacturer for the delivery of beet as referred to in point (a) of
Article 50(3), all deliveries by that seller, converted in accordance with paragraph 2 of this Point, shall be considered to
be deliveries within the meaning of point (a) of Article 50(3), up to the quantity of beet specified in the delivery
contract.

4. Manufacturers producing a quantity of sugar lower than their quota beet for which they have signed pre-sowing
delivery contracts under point (a) of Article 50(3), shall distribute the quantity of beet corresponding to any additional
production up to the amount of their quota among the sellers with whom they have signed pre-sowing delivery
contracts within the meaning of point (a) of Article 50(3).

Agreements within the trade may derogate from this provision.

POINT IV

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

2. Provisions referred to in paragraph 1 shall be those applicable during the previous marketing year, taking account of

the level of actual production; agreements within the trade may derogate therefrom.

POINT V

1. Delivery contracts shall provide for beet collection places.

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

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

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

POINT VI

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

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

POINT VII

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

the beet shall be drawn at the time of reception.

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

POINT VIII

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

(a)

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

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

(c) by the manufacturer, under the supervision of an expert recognised by the Member State concerned, provided the

seller defrays the costs thereof.

POINT IX

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

delivered:

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

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

(c)

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

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

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

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

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

POINT X

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

2. The time limits referred to in paragraph 1 shall be those valid during the previous marketing year. Agreements within

the trade may derogate from this provision.

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POINT XI

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

POINT XII

1. Agreements within the trade as described in Annex III, Part II, point 11 to Regulation (EC) No 1234/2007 shall

contain arbitration clauses.

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

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

(a) rules on the distribution to sellers of quantities of beet which the manufacturer decides to buy prior to sowing, for

the manufacture of sugar within the limits of the quota;

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

(c)

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

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

(e)

the minimum sugar content of beet to be delivered;

(f) a requirement for consultation between the manufacturer and the sellers' representatives before the starting date of

beet deliveries is fixed;

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

(h) details of:

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

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

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

(i)

the removal of pulp by the seller;

(j) without prejudice to Article 49(1) of Regulation (EC) No 1234/2007, rules on how any difference between the
reference price and the actual selling price of the sugar is to be allocated between the manufacturer and sellers.

POINT XIII

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

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