CELEX: 51981PC0747
Language: en
Date: 1981-11-25
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1785/81 on the common organization of the markets in the sugar sector (presented by the Commission to the Council)

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COM (81) 747
Vol. 1981/0213
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(81)747 final
                                             Brussels , 25th November 1981
                      PROPOSAL FOR A COUNCIL REGULATION ( EEC )
                                                                       J
                                                            i   ■*- v.
              amending Regulation ( EEC ) No 1785 / 81 on the common
              organization of the markets in the sugar sector
                  ( presented by the Commission to the Council )
COM ( 81 ) 747 final
 ---pagebreak---                        EXPTJVMATORY MEMORANDUM
  Subu et
  The object of this proposal is to exclude preferential sugar imported and/
  or refined in the Community under protocol No 7 on ACP/EEC sugar attached
  to the second Lome Convention and the Agreement with India from the
  compensation system for storage costs provided for in the basic sugar
' Regulation , with effect from the 1981/82 marketing year . Experience in this
  resjxTt shows that the average period of storage for preferential sugar is
  very much shorter than that for sugar from Community production and that ,
  accordingly , application of the above-mentioned system to that sugar is not
  justified having regard , firstly , to the objective of market stability
  aimed at by this system in spreading disposal on the basis of demand through
  a given marketing year and , secondly of the implications for management of
  unjustified application to preferential sugar for the Member States concerned .
 The system should accordingly cease to apply as quickly as possible and , as
  this cannot be carried out during the marketing year on account of the very
  nature of the system , based on compensation between reimbursement and level
  for each marketing year , the Commission proposes that it by terminated as
  from the 1981 /02 marketing year , In this respect , the Commission feels that
  the Council should simultaneously adopt appropriate measures to ensure , as
  far as possible , that this retroactivity does not case harm to those concerned ,,
  Financial impact
  In principal , abolition of this system cannot have? net financial impact on the
  Community budget , as expenditure and receipts correspond in principle . However ,
  there is a management cost economy which has been assessed as a flat-rate
  figure of 10% of levies which are not transferred by the Member States to the
  Community ( some 1,4 million ECU per year ). On the other hand , there will be a
  loss of receipts resulting from the fact . that application of Article 8 of the
  basic Regulation to preferential sugar has a debit balance of 2,045 million ECU
  as at 1 July 1981 , and this sum 'will no ^. onger *^e rsc-cveieo. if the, Couiiwil
  adopts this proposal .
 ---pagebreak---                                       Proposal for
                               COUNCIL REGULATION ( iiC ) No
                               of                -
               amending Regulation ( EEC ) No 1785 / 81 on the common
                            «ι               ■ ■        ■■■ ■
                 organization of the markets in the sugar sector
   THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
  Having regard to the Treaty establishing the European Economic Community,
  and in particular Article 43 thereof ,
  Having regard to the proposal from the Commission,
  Haying regard to the opinion of the European Parliament ,
  Whereas Article 8 of Council Regulation ( EEC ) No 1785 / 81 of 30 June 1981 on
  the common organization ofthe markets in the sugar- sector ( 1 ) lays down a
  compensation system for storage costs comprising flat-rate reimbursement to
  be financed by a levy; Whereas this system, under special provisions , also
  covers preferential sugar imported into or refined in the Community under
  Protocol 7 on ACP sugar of the Second ACP-EEC Convention signed at Lome J. 2 )
         /                                                    -
  and under the Agreement with India (3 );
- Whereas one of the objects of the compensation system for storage costs is
  to help stabilize the Community market in sugar by adjusting release to the
                               _                                      . y
  market throughout the marketing year according to demand ; whereas
  experience shows that deliveries of preferential sugar are spread regularly
  over the marketing year , whereby the average storage period for the said
  sugar is very short ; whereas it is therefore no longer justified to
  maintain the said system in respect of preferential sugar , particularly in
  view of the management costs henceforth involved for the Member States
  concerned ;
                                                                          N
  Whereas the said system is based essentially on the principle of compensation
  between reimbursement and levy for each marketing year ; whereas it is not
  possible to stop applying the system to preferential sugar during a
  marketing year without infringing the said principle ; Whereas it should
  nevertheless be stopped without delay on account of the implications of any
  delay for management , and this measure should accordingly be made applicable
  from the 1981 / 82 marketing year ,
  ( ''> 0J Nj L 177 , 1 , 7,1981 , p. 4
  ( 2) -ÛJ No L 347 , 22.12.19S0 , p. 144
  ( 3 ) 0J No L 190 , 23.7.1975 , p. 36
 ---pagebreak---  HAS ADOPTED THIS REGULATION :
                                '   -     Article 1
 Article 8 of Regulation ( EEC ) No 1785 / 81 Is hereby amended as follows :
 1.    The second subparagraph of paragraph 2 is deleted .
 2.   The text under b ) and c ) in the third subparagraph of paragraph 2 is
      deleted .        ,
                 . .              .                       .
3.    The fourth subparagraph of paragraph 2 is replaced by the following :
      " The amount of the reimbursement shall be the same for the whole
      Community .    This rule shall also apply in respect of the levy ."
                                         Article 2  -
1.    The provisions of Article 1 shall apply with effect from 1 July 1981 .
2.    Storage levies due and collected under b ) and c ) in the third subpara­
      graph of Article 8(2 ) of Regulation ( EEC ) No 1785 / 81 between 1 July
      1981 and the date of entry into force of this Regulation shall be
      repaid to those subject to them by the Member State which collected
      them .
3.    Sums for repayment under paragraph 2 shall be reduced by the sums
      corresponding to entitlement for reimbursement of storage costs
      pursuant to the second subparagraph of Article 8(2 ) of Regulation
      ( EEC ) No 1785 / 81 for storage of the sugar in question during the
      period from 1 July 1981 up to the date of entry into force of this
      Regulation .
4.    For the storage period from 1 July 1981 up to the date of entry intp
      force of this Regulation, reimbursements not affected by application
     of paragraph 3 shall be forfeit to beneficiaries .
                                         Article 3
This Regulation shall enter into force on the third day following that of
its publication in the Official Journal of the European Communi
                                                              Communities
                                                                     ties .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
Done at Brussels ,                                          For the Council ,