CELEX: 51981PC0677
Language: en
Date: 1981-11-13
Title: Proposal for a COUNCIL REGULATION (EEC) laying down general rules for transfers of quotas in the sugar sector (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 677
Vol. 1981/0200
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  COM(81)677 final
                                                  Brussels - 13 November 1981
                                  Proposal for a
                                 COUNCIL REGULATION ( EEC )
          laying down general rules for transfers of quotas in the sugar sector
                  ( submitted to the Council by the Commission )
                               »^    /
COM ( 81 ) 677 final
 ---pagebreak---                               EXPLANATORY MEMORANDUM
The aims of this proposal are :
( a ) to adapt the existing general rules of the Council governing the transfer of
      quotas so as to conform to the new basic sugar Regulation ( EEC ) No 1785 / 31
      applicable as from 1 July 1981 ;
Cb ) to introduce hew provisions to take account of the experience gained in this
      field and to cover cases not provided for in the existing rules . '
As regards ( a )> the intention is to extend to isoglucose the quota transfer arrange­
ments hitherto applicable only to sugar-producing undertakings . This follows from the
integration of isoglucose in the production, system for sugar established by the new
basic Regulation .                                   ^
For the rest , the Commission proposes that the Council should extend to cases of
factory amalgamations and transfers the right - hitherto reserved for transfers
of undertakings - to allocate the quotas concerned in proportion to the absorbed
production , including allocation to an undertaking not involved in the operation
but with which some of the growers directly affected decide to associate themselves .
This extension would cover cases of this kind which have arisen in x the past . It would
thus avoid conflict and would help to safeguard the interests of the growers .
For the same reasons the Commission also proposes that the Council should fill a gap
in the existing rules by laying down provisions covering not only the case of an
undertaking which closes down but also the case of a factory which closes down .
As in the past , the allocation of the part of the quotas concerned in such a closure
would be made pro rata tojthe absorbed production .
 Finally, as regards the particular situation in the Italian beet sector and
 following the approach adopted by the Council in the new basic Regulation under
 which Italy may transfer quotas without limitation within the framework of re-
 structing, the Commission proposes that within the same framework the Council should
 adopt a less-rigid definition of a " sugar-producing enterprise" than that contained
 in Regulation ( EEC ) No 1043 / 67 .
 ---pagebreak---                           PROPOSAL FOR A COUNCIL REGULATION ( EEC )
                                       t
                  Laying down general rules for transfers of quotas in the
                                      sugar sector
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,          .
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation ( EEC ) No 1785 / 81 of 30 June 1981 on the
common organization        t ®le markets in the sugar sector ( 1 ), and in particular
 Article 25(4 ) thereof ,
Having regard to the proposal from the Commission,
Whereas Article 25(1)of Regulation ( EEC ) No 1785 / 81 lays down that Member
States may transfer A quotas and B quotas between undertakings , taking into
consideration the interests of each of the parties concerned and in particular .
those of sugar beet or sugar cane producers ; whereas Article 25(4 ) provides
 that        general rules are to be adopted concerning the adjustment of quotas ,
in particular in the event of an amalgamation or transfer of undertakings ;
Whereas A quotas and B quotas are affected following an amalgamation or
transfer of undertakings , a transfer by an undertaking of one of its factories
or the closure of an undertaking or one of its factories; whereas , therefore ,                    ,
conditions should be laid down for the adjustment by Member States of the quotas                 <
of the undertakings in question ;
Whereas it is essential that the adjustment of the quotas of sugar-producing
undertakings should not damage the interests of the sugar beet or sugar cane producers           5
concerned ; whereas the Member States should be authorized to allocate quotas to undertakinj
other than those directly concerned where some of the be.et oc cane producers         .
directly affected by an amalgamation , transfer or closure decide to enter
 into an association with them;                                                                J
 Whereas the sedond subparagraph of Article 25(2 ) of Regulation ( EEC) No 1785 / 81          ,
 authorizes Italy to adjust the quotas of undertakings without applying the 10%              j
 limit where such transfers are made on the basis of restructuring plans in the            I
 beet , cane and sugar manufacturing sectors ;       whereas in order to make imple-       >
 mentation of such restructuring plans effective, Italy should be allowed, subject         j
 to certain conditions , to regard a group of undertakings as a sugar-producing            !
 undertaking ;
  ( 1 ) 0J NO L 177 , 1.7.1981 , p.4
 ---pagebreak--- Whereas for certain operations relating to isoglucose-producing undei–
takings , rules similar to those applicable to sugar should be laid down ;
Whereas measures affecting quotas should be communicated to the Commission
Whereas Council Regulation ( EEC ) No 3331 / 74 of 19 December 1974 on the
allocation and alteration of the basic quotas for sugar ( 1 ), as last
amended by Regulation ( EEC ) No 1785 / 81 , should be repealed,
HAS ADOPTED THIS REGULATION :
              ,7
             !"■
 ( 1 ) OJ No L 359, 31 . 12.1974, p. 18
 ---pagebreak---                                    Article 1
Member States sl.all adopt appropriate measures to take account of the
interests of sugar beet and sugar cane producers in the event
of allocation of quotas to a sugar-producing undertaking having mor«
than one factory .                                                           J
                                    Article 2
1 . In the event of the amalgamation or transfer of sugar-producing
          y
    undertakings and in the event of the transfer of sugar factories the A and
     B quotas, sha 1 I , without prejudice to paragraph 2 , be adjusted as follows :
                         • · · τ                          ι
    a ) in the event of the amalgamation of sugar-producing undertakings ,
        the Member State shall allocate to the undertaking resulting from
        the amalgamation an A quota and a B quota equal respectively to
        the sum of the A quotas and the sum of the B quotas allocated prior
        to the amalgamation to the sugar-producing undertakingsconcerned ;
                                                  *                          \
    b ) in the event of the transfer of a sugar-producing undertaking, the
                                                       for tne production of sugar
        Member State shall allocate to the transferee undertaking / the
        A quota and the B quota of the undertaking transferred or, if
        there is more than one transferee undertaking the allocation shall
                                        sugar
        be made in proportion to the/ production absorbed by each of them;
    c ) in the event of the transfer of a sugar factory, the Member State
        shall reduce the A quota and the B quota of the undertaking trans­
        ferring ownership of the factory and shall increase the A quota and
        the B quota of the sugar-producing undertaking or undertakings pur­
        chasing the factory in question by the quantity deducted in pro-'
        portion to the production absorbed .
2 « Where some of the sugar beet or cane producers directly
    affected by one of the operations referred to in paragraph 1 enter into
    an association with a sugar-producing undertaking which is not party
    to those operations , the Member State may make the allocation on the
    basis of the production absorbed by the undertaking with which they
    enter into an association .
                                       \
3 . In the event of the closure of a sugar-producing undertaking or one
    or more factories of a , sugar-producing undertaking in circumstances
    other than those referred to in paragraph 1 , the Member State may
    allocate the part of the quotas involved in such closure to one or more
    sugar-producing undertakings in proportion to the production absorbed .
 ---pagebreak---                                            Article 3
   Without prejudice to Article 9, the measures affecting quotas adopted by
   virtue of Article 2 may take effect only if :               .                .
    (a ) the interests of the sugar beet or sugar cane producers
           concerned are safeguarded ;
   ( b ) the Member State concerned considers them to be such as to improve
         the structure of the beet , cane and sugar manufacturing sectors# and
   ( c ) they concern sugar-producing undertakings established in the same
          region within the meaning of Article 24(2 ) of Regulation ( EEC ) No1785 / 81 .
                                           Article 4
    For the purposes of transfers of quotas in Italy under the restructuring
   plans referred to in the second subparagraph of Article 25 (2 ) of Regu­
    lation ( EEC ) No 1785 / 81 , a group of sugar-producing undertakings having
   technical , economic and . structural links and joint responsibility for their
                 particularly in respect of
   obligations, / beet growers? under Community          rules    may be regarded as
   a sugar-producing undertaking .
                                    >      Article 5
In the event of the amalgamation or transfer of isoglucose-producing under­
takings , in the event of the transfer of an isoglucose factory and in the
event of the closure of an isoglucose-producing undertaking or one or more
 isoglucose factories , the Member State may allocate the quotas in question for
the production of isoglucose             to one or more undertakings provided that
  such allocation . concerns undertakings established in the same region within
  the meaning of Article 24 ( 2 ) of Regulation ( EEC ) Mo 1785 / 81 .
_                                          Article 6
 For the purposes of this Regulation :
 a ) " amalgamation of undertakings " means the consolidation into a single
        undertaking of two or more undertakings , each having quotas ;
 b ) " transfer of an undertaking" means -the transfer of the , assets of an
        undertaking having quotas to one or more undertakings ;
  c ) " transfer of a factory" means the transfer of ownership of a technical unit ,
        including all the plant required to manufacture the product in question ,
        to one or more undertakings , resulting in the partial or total absorption
        of the production of the undertaking making the transfer .
 ---pagebreak---      ~                            V            ' '              Article 7
           The measures referred to in Articles 2 and 5 shall take effect when
           the closure of the undertaking or factory, the amalgamation or transfer
           occurs :
                                                                                                                1
      " a ) between 1 July and 31 January of the following year , for the current
!     '                                            '
i              . marketing year ;
 I                                               ·'··;'
ji
           b ) between 1 February and 30 June ' ; of
                 ;        •                                      ■
                                                                                 the same year/ for the
 I               following marketing year .
 4                                  '        ,           ...                       ,
 J                                                                               -■                *          .   . ;
 j                                                            .  Article 8 .
              . .                                                              ■          .      '
 |         Where a Member State applies Article 25 (2 ) of Regulation (EEC ) No 1785 / 81 ,
i          it shall allocate the .adjusted quotas before 1 March with a view to apply­
           ing them in the following marketing year .                        .
                                                                Article 9                   ,
          1 . For the marketing years 1982 / 83 to 1985 / 86 :
        (a ) measures affecting.                     quotas which are contemplated by a Member State
                 pursuant to Article 25 ( 2 ) of Regulation ( EEC ) No 1785 / 81 and Ar­
                 ticles 2 and 5 of this Regulation shall not take effect until they
                 have been communicated to the Commission and the Member State has
                 adopted the appropriate measures for the corresponding transfer of the
                 minimum stock obligations ;                                          -        '
        €b ) Member States shall inform the Commission , before 15 March of the A and B
                 quotas which they int'end to adjust in respect o"f the following marketing
                                                             ■<                                                     /
                  year under the provisions of Article 25(2 ) of Regulation ( EEC ) No 1785 / 81 ,
         2 . Where Articles 2 and 5                              are                 . applied, Member States
                shall /inform the Commission, not later than 10 days following expiry of
               the periods                 referred to in Article 7, of the A and B quotas which
               they intend to adjust .
                   "I » .      ' •.!. J v.
                                                                Article 10
                            Regulation ( EEC ) No 3331 / 74 is hereby repealed .
                                                                Article 11
   I
           This Regulation shall enter into force on the third day following its
           publication in th'e Official Journal of the European Communities .
                                                                                        \
           This Regulation shall be binding in its entirety and directly applicable
            in all Member States .                     ■ ■ »■ -
         . Done at                                                                            For the Council