CELEX: 31967R1009
Language: en
Date: 1967-12-18 00:00:00
Title: Regulation No 1009/67/EEC of the Council of 18 December 1967 on the common organisation of the market in sugar

304                                Official Journal of the European Communities
18.12.67                     OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES                                   No 308/1
                              REGULATION No 1009/67/EEC OF THE COUNCIL
                                                 of 18 December 1967
                                  on the common organisation of the market in sugar
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                     cane production ; whereas for this reason it is advis­
                                                             able to fix minimum prices which must be respected
Having regard to the Treaty establishing the Euro­           when sugar manufacturers buy beet, to lay down
pean Economic Community, and in particular Articles          basic Community provisions governing contractual
42, 43 and 227 thereof;                                      relationships between buyers and sellers of beet, and
                                                             to adopt appropriate provisions to this end for sugar
Having regard to the proposal from the Commission ;          cane producers ;
Having regard to the Opinion of the European Par­            Whereas the creation of a single Community market
liament1 ;                                                   for sugar involves, apart from a single price system,
                                                             the introduction of a single trading system at the ex­
Whereas the operation and development of the com­            ternal frontiers of the Community; whereas a trading
mon market in agricultural products must be ac­              system including levies and export refunds, combined
companied by the establishment of a common agri­             with intervention measures, also serves to stabilise
cultural policy to include in particular a common            the Community market, in particular by preventing
organisation of the agricultural markets, which may          price fluctuations on the world market from affecting
take various forms, depending on the product                 prices ruling within the Community; whereas pro­
concerned ;                                                  vision should therefore be made for the charging of a
                                                             levy on imports from third countries and the pay­
Whereas, to ensure that the necessary guarantees in          ment of a refund on exports to those same countries
respect of employment and standards of living are            which would, in either case, cover the difference be­
maintained for Community growers of sugar beet and           tween prices ruling inside and outside the Com­
sugar cane, provision should be made for measures            munity if the world market price is lower than the
to stabilise the sugar market; whereas to this end a         Community price; whereas, where the reverse is true,
target price and an intervention price for white sugar       provision should be made for the introduction of cor­
should be fixed each year for the Community area             responding machinery;
having the largest surplus ; whereas derived inter­
vention prices should be fixed each year for other           Whereas, in addition to the system described above
Community areas, account being taken of regional             and to the extent necessary for its proper working,
price variations arising under natural conditions of         provision should be made for regulating or, when the
price formation on the market with a normal harvest          situation on the market so requires, prohibiting the
and of the processing stage; whereas the objective           use of 'inward processing arrangements'; whereas it is
referred to above could be attained by making                also desirable that refunds should be so fixed that
provision for buying-in by intervention agencies at          Community basic products used by the processing in­
the intervention prices ; whereas moreover denaturing        dustry in the Community with a view to export are
premiums for sugar rendered unfit for human con­             not placed at a disadvantage by inward processing ar­
sumption combined with an equalisation system for            rangements which might induce that industry to give
storage costs for sugar produced from raw materials          preference to basic products imported from third
(including molasses) of Community origin could               countries ; whereas the introduction of the single mar­
serve the same purpose;                                      ket in sugar necessitates Community control of the
                                                             inward processing trade;
Whereas it is necessary to ensure that the regulation
of the sugar market influences sugar beet and sugar
                                                             Whereas it must be made possible for the competent
                                                             authorities to keep a constant watch on trade move­
1 OJ No 103, 2.6.1967, p. 2092/67.                           ments to enable them to assess market trends and,
 ---pagebreak---                                    Official Journal of the European Communities                                   305
where appropriate, to apply such provisions of this           the granting of certain aids ; whereas, therefore, the
Regulation as prove necessary; whereas to this end            provisions of the Treaty which allow the assessment
provision should be made for the issue of import and          of aids granted by Member States and the prohibition
export licences conditional on the lodging of a de­           of those which are incompatible with the common
posit guaranteeing that the transaction for which the        market should be made to apply to sugar;
licence has been requested will be effected ;
                                                             Whereas, however, beet and sugar production in Italy
Whereas the levy system makes it possible to dispense        is rendered difficult by climatic conditions and, in the
with all other protective measures at the external            case of beet production, by the additional problems
frontiers of the Community ; whereas, however, the           presented by the application of modern production
common price and levy machinery may, in exceptional           methods ; whereas provision should be made for
circumstances, prove defective; whereas, in such              granting temporary subsidies to both these activities ;
cases, so as not to leave the Community market with­
out defence against disturbances which may arise             Whereas Regulation No 44/67/EEC,1 as amended by
therefrom after the import barriers which existed pre­        Regulation No 219/67/EEC,2 introduced certain
viously have been removed, the Community should              measures for a common organisation of the market in
be enabled to take all necessary measures without de­        sugar for the 1967/68 marketing year; whereas the
lay ;                                                        transition to the system established by this Regula­
                                                             tion must be effected as smoothly as possible; whereas
Whereas the establishment of a single market in sugar        to this end certain transitional measures may prove
involves the removal at the internal frontiers of the        necessary; whereas the same need may arise at each
Community of all obstacles to the free movement of           change-over from one marketing year to the next;
the goods in question;                                       whereas provision must therefore be made for the
                                                             possibility of adopting appropriate measures ;
Whereas Community sugar production has often ex­
ceeded consumption in recent years and whereas the           Whereas intervention is essential if the sugar price is
world market situation is characterised by the exis­         to be guaranteed; whereas, in view of the special im­
tence of large surpluses ; whereas it is therefore advis­    portance of sugar production for the economy of the
able, for a transitional period, to make provision for       French overseas departments, provisions concerning
measures to limit production and promote regional            the Guarantee Section of the European Agricultural
specialisation ;                                              Guidance and Guarantee Fund must be made to ap­
                                                             ply to these departments ;
Whereas this aim could be achieved by allocating to
each factory or undertaking in the Community which           Whereas the common organisation of the market in
processes beet or molasses into sugar a basic quota          sugar must take appropriate account, at the same
for which a price and sales guarantee would be given         time, of the objectives set out in Articles 39 and 110
by the Community and by limiting or withdrawing               of the Treaty;
this guarantee for quantities manufactured over and
above the basic quota, depending on whether or not           Whereas, in order to facilitate implementation of the
they exceed a certain ceiling;                               proposed measures, a procedure should be provided
                                                             for establishing close co-operation between Member
Whereas, if it is to be successful, the limitation of        States and the Commission within a Management
sugar production must lead to a limitation of sugar          Committee ;
beet and sugar cane production; whereas to this end
special provisions on delivery contracts should be
adopted, dealing in particular with the differentiation
of beet prices ; whereas, non-differentiation of these       HAS ADOPTED THIS REGULATION :
prices can only be acceptable where provision is
made for a further limitation of the guarantee ;
                                                                                      Article 1
Whereas, in order to prevent sowing on too large a
scale, it is advisable to allow for the possibility of       1 . The common organisation of the market in
carrying part of one marketing year's production for­        sugar shall comprise a price and trading system and
ward to the following marketing year, to be treated          cover the following products :
as part of that year's production ;
Whereas the establishment of a single market based           1 OJ No 40, 3.3.1967, p . 597/67.
on a common price system would be jeopardised by             2 OJ No 135, 30.6.1967, p. 2904/67.
 ---pagebreak---  306                                    Official Journal of the European Communities
       CCT
                                                                                          Article 3
     heading                     Description of goods
       No
                                                                  1 . An intervention price for white sugar shall be
                                                                  fixed each year for the Community area having the
(a)      17.01     Beet sugar and cane sugar, solid               largest surplus.
 (b)     12.04     Sugar beet, whole or sliced, fresh, dried
                   or powdered; sugar cane                        2. Derived intervention prices shall be fixed for
 (c)     17.03     Molasses, whether or not decolourised          other areas, account being taken of the regional vari­
                                                                  ations which, given a normal harvest and free move­
(d)  ex 17.02      Other sugars (but not including lactose
                   and glucose); sugar syrups (but not in­        ment of sugar, might be expected to occur in the
                   cluding lactose syrup and glucose syrup);      price of sugar under natural conditions of price for­
                   artificial honey (whether or not mixed          mation.
                   with natural honey); caramel
     ex 17.05      Flavoured or coloured sugars (but not          3 . The intervention prices referred to in para­
                   including lactose and glucose), syrups         graphs 1 and 2 shall be valid for white sugar of the
                   (but not including lactose syrup and
                   glucose syrup) and molasses, but not           standard quality to which the target price applies, un­
                   including fruit juices containing added        packed, ex-factory, loaded into the means of trans­
                   sugar in any proportion                        port chosen by the purchaser.
                                                                  4. The derived intervention prices for French over­
2.      For the purposes of this Regulation :                     seas departments shall, however, be valid for sugar
                                                                  f.o.b. and stowed aboard a seagoing vessel at the port
— 'white sugar' means sugar falling within heading                of embarkation .
     No 17.01 of the Common Customs Tariff con­
     taining, in the dry state, 99-5% or more by weight           For these departments, intervention prices shall also
     of sucrose determined by the polarimetric                    be fixed for raw sugar of a standard quality. These
     method;                                                      shall be derived from the intervention prices for
                                                                  white sugar fixed for those departments, allowance
— 'raw sugar' means sugar falling within heading                  being made for a uniform processing margin and a
     No 17.01 of the Common Customs Tariff con­
                                                                  standard yield.
     taining, in the dry state, less than 99-5% by weight "
     of sucrose determined by the polarimetric
     method.                                                      5 . The intervention price for the area having the
                                                                  largest surplus shall be fixed at the same time as the
                                                                  target price in accordance with the procedure laid
                            TITLE I                               down in Article 43 (2) of the Treaty.
                             Prices                               6. The Council, acting in accordance with the
                                                                  voting procedure laid down in Article 43 (2) of the
                                                                  Treaty on a proposal from the Commission, shall de­
                           Article 2                              termine :
                                                                  — the standard quality for raw sugar and, before 1
1 . A target price for white sugar shall be fixed                     August of each year for the following marketing
each year for the Community area having the largest                   year,   -
surplus. This target price shall be valid for white
sugar of a standard quality, unpacked, ex-factory,                — the areas referred to in paragraph 2 and the de­
loaded on to the means of transport ch'osen by the                    rived intervention prices valid for these areas.
purchaser.
                                                                                          Article 4
2.     Before 1 August of each year the target price for
the  marketing year beginning on 1 July of the follow­
ing   calendar year shall be fixed in accordance with             1 . Each year, for each beet-sugar-producing area
the   procedure laid down in Article 43 (2) of the                for which an intervention price is fixed :
Treaty.                                                           — a minimum price for beet shall be fixed in accord­
                                                                      ance with the provisions of paragraphs 2, 3 and 4 ;
The same procedure shall be followed to determine :
                                                                  — a minimum price for beet outside the basic quota
— the standard quality for white sugar and, at the                    shall be fixed in accordance with Article 28 .
     same time as the target price,
                                                                  These prices shall apply to a specified delivery stage
— the Community area having the largest surplus .                 and a specified standard quality.
 ---pagebreak---                                      Official Journal of the European Communities                                  307
2. When the minimum price for beet is being es­                                        Article 7
tablished, the intervention price for white sugar in the
area in question and fixed values for the Community             1 . Conditions for purchasing sugar cane shall be
representing:                                                   governed by agreements within the trade between
— the processing margin;                                        cane growers and sugar manufacturers.
— the yield;                                                    2. Where no agreements within the trade exist,
— factories' or undertakings' receipts from sales of            conditions of purchase, and in particular the mini­
     molasses ; and,                                            mum proportion of the intervention price for cane
                                                                sugar to be paid by sugar manufacturers to sellers of
— where appropriate, costs incurred in delivering               sugar cane, shall be determined in accordance with
     beet to factories                                          the procedure laid down in Article 40.
shall be taken into account.
                                                                                       Article 8
3.     At the same time as the target price is fixed,
                                                                1.     Subject to the provisions of Article 32 (2),
— the minimum price for beet referred to in the first           storage costs for white sugar and raw sugar, manu­
     indent of paragraph 1 for the Community area               factured from beet or cane harvested in the Com­
     having the largest surplus shall be fixed, and             munity, shall be reimbursed at a flat rate by the
— the delivery stage and standard quality for beet              Member States .
     shall be determined
                                                                Member States shall charge a levy on each sugar
in accordance with the procedure laid down in                   manufacturer per unit of weight of sugar produced.
Article 43 (2) of the Treaty.                                   The amount of the reimbursement shall be the same
                                                                for the whole Community. The same rule shall apply
4.     The Council, acting in accordance with the               to the levy.
voting procedure laid down in Article 43 (2) of the
Treaty on a proposal from the Commission, shall fix             2. The Council, acting in accordance with the
the minimum price for beet referred to in the first in­         voting procedure laid down in Article 43 (2) of the
dent of paragraph 1 for other areas at the same time            Treaty on a proposal from the Commission, shall
as the derived intervention prices .                            adopt rules for the application of paragraph 1 .
                                                                3 . The amount of the reimbursement and the levy
                         Article 5
                                                                shall be fixed each year in accordance with the pro­
                                                                cedure laid down in Article 40. Other rules for the
1 . Subject to the provisions of Article 27 (4),              < application of this Article shall be adopted in accord­
Article 29 ( 1 ) and provisions adopted pursuant to             ance with the same procedure.
Article 32 (3 ), sugar manufacturers buying beet for
processing into sugar shall be required to pay at least
the minimum price for sugar beet, adjusted by price                                    Article 9
increases or reductions to allow for deviations from
the standard quality.                                           1 . Throughout the marketing year intervention
                                                                agencies designated by sugar-producing Member
2. The price increases and reductions shall be fixed            States shall be required, under conditions to be laid
in accordance with the procedure laid down in                   down in accordance with paragraphs 7 and 8, to buy
Article 40 .                                                    in white sugar and raw cane sugar offered to them
                                                                which has been manufactured from beet or cane har­
                                                                vested in the Community.
                         Article 6
                                                                Intervention agencies shall buy in at the intervention
The Council, acting in accordance with the voting               price valid for the area in which the sugar is located
 procedure laid down in Article 43 (2) of the Treaty            at the time of purchase. If the quality of the sugar
 on a proposal from the Commission, shall adopt out­            deviates from the standard quality for which the in­
line provisions dealing in particular with general con­         tervention price was fixed, that price shall be ad­
 ditions governing purchasing, delivery, reception and          justed by means of price increases and reductions.
payment to which agreements within the trade at
Community, regional or local level and contracts                2. Intervention agencies may grant denaturing pre­
 concluded between buyers and sellers of beet must              miums for sugar rendered unfit for human consump­
conform.                                                        tion .
 ---pagebreak--- 308                                  Official Journal of the European Communities
3 . Until 31 December 1969, the intervention sys­               — on the basis of prices on the world market, if it is
tem described in paragraphs 1 and 2 shall also apply                 exported to third countries in the natural state or
to raw beet sugar.                                                   following processing into the products listed in
                                                                     Annex II to the Treaty or into the goods listed in
4. From 1 January 1970, special measures may be                      the Annex to this Regulation. .
taken for raw beet sugar should an abnormal situation
arise.                                                          2. The Council, acting in accordance with the
                                                                voting procedure laid down in Article 43 (2) of the
5 . Should difficulties arise in marketing sugar pro­           Treaty on a proposal from the Commission, shall
duced in the French overseas departments, appropri­             adopt general rules for the sale of products which
ate measures shall be taken.                                    have been subject to intervention measures .
6.     A production refund shall be       granted on the        3 . Detailed rules for the application of this Article
products listed in Article 1 ( 1 ) ( a),  and the syrups        shall be adopted in accordance with the procedure
listed in Article 1 ( 1 ) (d) containing sucrose, used in       laid down in Article 40 .
the manufacture of certain products       of the chemical
industry.
                                                                                         TITLE II
7.     The Council, acting in accordance with the
voting procedure laid down in Article 43 (2) of the                            Trade with third countries
Treaty on a proposal from the Commission, shall
determine :
                                                                                        Article 11
— general rules for the application of the above
     paragraphs ;
                                                                1.     Imports or exports into or out of the Com­
— intervention prices for raw beet sugar;                       munity of the products listed in Article 1 ( 1 ) shall be
                                                                made conditional on the submission of an import or
— the products of the chemical industry referred to
     in paragraph 6.                                            export licence issued by Member States to any appli­
                                                                cant irrespective of the place of his establishment in
                                                                the Community.
8.     Detailed rules for the application of this Article
shall be adopted in accordance with the procedure               Such licences shall be valid for a transaction effected
laid down in Article 40 and shall deal in particular            within the Community on or after a date to be fixed
with :
                                                                 by the Council, acting in accordance with the voting
— the minimum quality and quantity requirements                 procedure laid down in Article 43 (2) of the Treaty
                                                                 on a proposal from the Commission, but not later
     on intervention ;
                                                                than 1 August 1969 . Until that date, such licences
— the scales of price increases ad reductions appli­            shall be valid only for a transaction effected in the
     cable on intervention ;                                    Member State which issued them.
                                                                The issue of such licences shall be conditional on the
 — procedures and conditions for taking-over by in­
     tervention agencies ;
                                                                 lodging of a deposit guaranteeing that importation or
                                                                 exportation is effected during the period of validity
— conditions for granting denaturing premiums and               of the licence ; this depbsit shall be forfeited in whole
     the amount of such premiums ;                               or in part if the transaction is not effected, or is only
                                                                 partially effected within that period.
 — conditions for granting the production refund and
     the amount of such refund.                                  2. The period of validity of licences and other de­
                                                                 tailed rules for the application of this Article, which
                                                                 may include a time limit for the issue of licences,
                          Article 10                             shall Tse adopted in accordance with the procedure
                                                                 laid down in Article 40.
 1 . Intervention agencies may only sell sugar on the
 domestic market at a price which is higher than the                                    Article 12
 intervention price.
                                                                 1.     Each year a Community threshold price shall be
 They may however be authorised to sell sugar :                  fixed for white sugar, raw sugar and molasses.
 — at a lower price when it has been rendered unfit              2. The threshold price for white sugar shall be the
      for human consumption ;                     '              same as the target price for the Community area
 ---pagebreak---                                       Official Journal of the European Communities                                      309
  having the largest surplus plus transport charges, cal­                                  Article 14
  culated at a flat rate, from that area to the most dis­
  tant deficit area in the Community. It shall apply to          1.      A levy shall be charged on imports of the prod­
  the same standard quality as the target price.                 ucts listed in Article 1 ( 1 ).
  3.      The threshold price for raw sugar shall be de­         2. The levy on white sugar, raw sugar and molas­
  rived from the threshold price for white sugar, a stan­        ses shall be equal to the threshold price less the c.i.f. '
  dard processing margin and a standard yield being              price.
  taken into account.
  It shall apply to the same standard quality as the in­         3 . The levy on raw sugar shall, where necessary,
  tervention prices for raw sugar.                               be adjusted according to the yield. The levy on white
                                                                 sugar shall be charged on imports of raw sugar for
  4. The threshold price for molasses shall be so
                                                                 purposes other than refining if that levy is higher
                                                                 than the levy applicable to raw sugar. If the levy on
  fixed that receipts for sales of molasses may reach the
                                                                 white sugar is higher than the levy on raw sugar, raw
  level of factories' and undertakings' receipts which
                                                                 sugar for refining shall be subject to customs control
  are taken into account pursuant to Article 4 when
                                                                 or to an administrative inspection offering equivalent
  minimum prices for beet are being fixed . It shall ap­
                                                                 guarantees .
  ply to a standard quality.
                                                                 4. The levy on the products listed in Article
  5.      The Council, acting in accordance with the             1 ( 1) (b) shall be calculated at a standard rate on the
, voting procedure laid down in Article 43 (2) of the            basis of the sucrose content of each of these products
  Treaty on a proposal from the Commission, shall fix            and the levy on white sugar.
   the threshold prices at the same time as the derived
  intervention prices .                                          For purposes other than the manufacture of sugar,
                                                                 partial exemption from the import levy may be al­
   6. The standard quality for molasses shall be de­             lowed as a temporary measure in special instances in
  termined in accordance with the procedure laid down            accordance with the procedure laid down in Article
  in Article 40 .                                                40 .
                                                                 5 . The levy on the products listed in Article
                          Article 13                              1 ( 1 ) ( d) shall be calculated, where appropriate, at a
                                                                 standard rate on the basis of the sucrose content (in­
   1.     A c.i.f. price shall be calculated for a Com­           cluding other sugars expressed as sucrose) of the
  munity frontier crossing point for white sugar, raw            product concerned and the levy on white sugar.
   sugar and molasses . This price shall be calculated on
                                                                  The levies applicable to maple sugar and maple syrup
   the basis of the most favourable purchasing oppor­
                                                                  falling within heading No 17.02 of the Common Cus­
  tunities for each product on the world market, based
                                                                  toms Tariff shall, however, be limited to the amount
   on quotations or prices on that market, corrected to
                                                                 resulting from application of the rate of duty bound
   allow for any deviations from the standard quality             within GATT.
   for which the threshold price is fixed.
                                                                  6. Detailed rules for the application of this Article,
   2.     Where free quotations on the world market are           including the margins within which variations in the
   not a determining factor for the offer price and where         factors used for calculating the levy do not require
   that price is lower than world market prices, a special        any alteration of the levy, shall be adopted in accord­
   c.i.f. price calculated on the basis of the offer price        ance with the procedure laid down in Article 40.
   shall be substituted, solely in respect of the imports
   in question, for the c.i.f. price.                             7.     The levies referred to in this Article shall be
                                                                  fixed by the Commission.
    3.    The Council, acting in accordance with the
    voting procedure laid down in Article 43 (2) of the
    Treaty on a proposal from the Commission, shall de­                                    Article 15
    termine the frontier crossing point.
                                                                  1 . The levy to be charged shall be that applicable
    4. Detailed rules for calculating the c.i.f. prices            on the day of importation .
    shall be adopted in accordance with the procedure
    laid down in Article 40 . The corrective amounts re­          2. The levy may, however, be fixed in advance for
    ferred to in paragraph 1 shall be fixed in accordance         imports of the products listed in Article 1 ( 1 ) ( a) and
   with the same procedure.                                        ( c).
 ---pagebreak---  310                                 Official Journal of the European Communities
 In that event the levy applicable on the day on which                                    Article 17
 the application for the licence is lodged, adjusted on
 the basis of the threshold price in force on the day of         1 . To the extent necessary to enable the products
 importation, shall be applied to imports to be effected         listed in Article 1 ( 1 ) ( a), (c) and (d) to be exported
 during the validity of the licence, provided the                in the natural state, or in the form of goods listed in
 party concerned so requests when applying for the li­           the Annex to this Regulation, on the basis of quo­
 cence. A premium to be added to the levy may be                 tations or prices for the products listed in Article
 fixed at the same time as the levy.                             1 ( 1 ) ( a) and (c) on the world market, the difference
                                                                 between those quotations or prices and prices within
 3.    The Council, acting in accordance with the               the Community may be covered by an export refund.
voting procedure laid down in Article 43 (2) of the
 Treaty on a proposal from the Commission, shall                 2.     The refund shall be the same for the whole
 adopt rules for the application of this Article; in par­       Community. It may be varied according to use or
ticular it shall decide upon the conditions under               •destination .
which advance fixing may take place and the rules
for fixing premiums.                                            The refund shall be granted on application by the
                                                                party concerned.
4. Where the conditions referred to in paragraph 3              The refund for raw sugar may not exceed the refund
exist, a decision to apply the system provided for in           for white sugar.
paragraph 2 shall be taken in accordance with the
procedure laid down in Article 40. Once these con­             When the refund is being fixed particular account
                                                                 shall be taken of the need to establish a balance be­
ditions no longer exist, the decision shall be repealed
in accordance with the same procedure.                          tween the use of Community basic products in the
                                                                manufacture of processed goods for export to third
It may be decided in accordance with the same pro­               countries and the use of third country products
cedure to apply the system provided for in paragraph            brought in under inward processing arrangements.
2 in whole or in part to each of the products listed in
Article 1 ( 1 ) (d).                                            The Council, acting in accordance with the voting
                                                                procedure laid down in Article 43 (2) of the Treaty
5.    The premiums shall be fixed, where appropri­               on a proposal from the Commission, shall adopt
ate, by the Commission.                                          general rules for granting refunds, for fixing the
                                                                amount of such refunds, and for fixing such refunds
                                                                in advance .
                        Article 16
                                                                Refunds shall be fixed at regular intervals in accord­
                                                                ance with the procedure laid down in Article 40.
 1 . If the c.i.f. price for white sugar or raw sugar is        Where necessary the Commission may, at the request
higher than the threshold price, a levy equal to the            of a Member State or on its own initiative, alter the
difference between those prices shall be charged on             refunds in the intervening period.
exports of the .product in question . The levy to be
charged, if any, shall be that applicable on the day of         3.      The Council, acting in accordance with the
exportation.                                                    voting procedure laid down in Article 43 (2) of the
                                                               Treaty on a proposal from the Commission, shall
2.    Under the conditions described in the first sen­          adopt general rules applicable to refunds where these
tence of paragraph 1 , a subsidy may be granted on              are awarded by tender.
imports of the product in question.
                                                               4. Detailed rules for the application of this Article
3.    The Council, acting in accordance with the               shall be adopted in accordance with the procedure
voting procedure laid down in Article 43 (2) of the             laid down in Article 40 .
Treaty on a proposal from the Commission, shall
adopt rules for the application of paragraphs 1 and 2.
                                                                                          Article 18
4. Provisions corresponding to those of paragraph
1 and to the rules for its application may be adopted           1.      Provision may be made for a production refund
for the products listed in Article 1 ( 1 ) (b), (c) and        on molasses intended for the manufacture of certain
(d), in accordance with the procedure laid down in             products if the c.i.f. price for molasses remains con­
Article 40 .                                                    siderably below the level of the threshold price for a
                                                                prolonged period .
5.    The levies referred to in paragraph 1 , together
with any levies resulting from the application of              2 . The rules necessary for the application of this
paragraph 4, shall be fixed by the Commission.                 Article, and in particular a list of the products re­
 ---pagebreak---                                        Official Journal of the European Communities                                     311
ferred to in paragraph 1, shall be adopted by the                  cil, acting in accordance with the voting procedure
Council acting in accordance with the voting pro­                  laid down in Article 43 (2) of the Treaty on a pro­
cedure laid down in Article 43 (2) of the Treaty on a              posal from the Commission, the following shall be
proposal froni the Commission.                                     prohibited :
                                                                  — the levying of any customs duty or charge having
                           Article 19                                   equivalent effect;
                                                                   — the application of any quantitative restriction or
1 . To the extent necessary for the proper working                      measure having equivalent effect.
of the common organisation of the market in sugar,
the Council, acting in accordance with the voting
procedure laid down in Article 43 (2) of the Treaty                The restriction of import or export licences to a
on a proposal from the Commission, may prohibit, in                specified category of those entitled to receive them
whole or in part, the use of inward processing ar­                  shall be one of the measures considered as having ef­
rangements in respect of:                                          fect equivalent to a quantitative restriction.
— the products listed in Article 1 (1 ) which are in­
      tended for the manufacture of the products listed                                    Article 21
      in Article 1 ( 1 ) (d);
                                                                    1 . If, by reason of imports or exports, the Com­
— and, in special instances, the products listed in                munity market in one or more of the products listed
      Article 1 ( 1 ) which are intended for the manu­             in Article 1 ( 1 ) experiences or is threatened with
      facture of the goods listed in the Annex to this             serious disturbances which may endanger the
      Regulation.                                                   objectives set out in Article 39 of the Treaty, appro­
                                                                   priate measures may be applied in trade with third
2.      Community provisions to regulate inward pro­                countries until such disturbance or threat of dusturb­
cessing trade in the products listed in Article 1 ( 1 )             ance has ceased .
shall be adopted not later than 1 July 1968 .
                                                                    The Council, acting in accordance with the voting
3.      Rules to be applied until the provisions men­              procedure laid down in Article 43 (2) of the Treaty
tioned in paragraph 2 enter into force shall be                     on a proposal from the Commission, shall adopt de­
adopted in accordance with the procedure referred to                tailed rules for the application of this paragraph and
in paragraph 1 ; they shall apply in respect of:                    define the cases in which and the limits within which
                                                                    Member States may take protective measures.
 ( a) the rate of yield to be taken when the quantity of
       Article 1 ( 1 ) products used in the manufacture of          2.    If the situation mentioned in paragraph 1 arises,
       processed goods for export is being determined ;             the Commission shall, at the request of a Member
(b) the determination, for the purpose of applying                  State or on its own initiative, decide upon the neces­
       the levy, of the quantity of products used in the          . sary measures ; the measures shall be communicated
       manufacture of goods put into free circulation.              to the Member States and shall be immediately appli­
                                                                    cable. If the Commission receives a request from a
4.      For the purpose of this Article, 'inward pro­               Member State, it shall take a decision thereon within
cessing arrangements' means all those provisions de­                twenty-four hours following receipt of the request.
termining the conditions under which products from
third countries are used within the Community in the                3.    The measures decided upon by the Commission
manufacture of goods for export and enjoy exemp­                    may be referred to the Council by any Member State
tion from the levies applicable to them.                            within a period of three working days following the
                                                                    day on which they were communicated. The Council
                                                                    shall meet without delay. It may amend or repeal the
                           Article 20                               measures in question in accordance with the voting
                                                                    procedure laid down in Article 43 (2) of the Treaty.
 1 . The general rules for the interpretation of the
 Common Customs Tariff and the special rules for its
 application shall apply to the tariff classification of                                    TITLE III
products covered by this Regulation ; the tariff
 nomenclature resulting from application of this Regu­                               Transitional provisions
 lation shall be incorporated in the Common Customs
 Tariff from the date on which the latter is fully ap­                                      Article 22
 plied .
                                                                     1 . Articles 23 to 33 , and in particular the pro­
 2. Save as otherwise provided in this Regulation or                visions concerning national basic quantities, their dis­
 where derogation therefrom is decided by the Coun­                 tribution between factories or undertakings and price
 ---pagebreak---  312                                Official Journal of the European Communities
 differentiation, shall be repealed with effect from 1         2. Until the 1970/71 marketing year the coefficient
 July 1975 .                                                    referred to in paragraph 1 shall be 1-35 . The coef­
                                                               ficient may be adjusted, in the light of the actual trend
 2. Definitive arrangements applicable from 1 July             of production and consumption, by the Council act­
 1975 shall be adopted in accordance with the pro­             ing in accordance with the voting procedure laid
 cedure laid down in Article 43 (2) of the Treaty. The          down in Article 43 (2) of the Treaty on a proposal
 definitive arrangements shall not involve any dis­            from the Commission .
 crimination between Community producers .
                                                               The coefficient for the 1971 /72 to 1974/75 marketing
                                                               years shall be fixed at the same time as the target
                        Article 23                             price in accordance with the procedure laid down in
                                                               Article 43 (2) of the Treaty, account being taken of
 1.    Member States shall fix a basic quota for each          the trend of production from the point of view of
 factory or for each undertaking producing sugar on            specialisation and marketing opportunities .
 their territory. Without prejudice to provisions adop­
 ted pursuant to paragraph 3 or 4, this basic quota
 shall be established by multiplying the average an­                                   Article 25
 nual sugar production of the factory or undertaking
 concerned during the 1961 /62 to 1965/66 marketing            1.     Subject to the provisions ,of Article 32, and un­
 years by. a coefficient expressing the ratio of the           less a * shortage is found to exist in the Community,
 Member State's basic quantity to the average annual           the quantity of sugar produced in excess of the maxi­
 sugar production of . that State during the same              mum quota fixed for a factory or undertaking in any
period.                                                        given marketing year shall not be disposed of on the
                                                               internal market.
 The basic quantities shall be :
— for Germany : 1 750 000 metric tons of white                2.     The provisons of Articles 8 , 9, 16 and 17 shall
                                                               not apply to the quantity referred to in paragraph 1
     sugar ;
                                                              which is not carried forward to the following market­
— for France: 2 400 000 metric tons of white sugar;            ing year pursuant to Article 32.
— for Italy : 1 230 000 metric tons of white sugar ;          3 . Detailed rules for the application of this Article
— for the Netherlands : 550 000 metric tons of white
                                                              shall be adopted in accordance with the procedure
                                                              laid down in Article 40. These detailed rules shall
     sugar ;                                                  provide in particular for the levying of a charge
— for BLEU : 550 000 metric tons of white sugar.              where the quantity referred to in paragraph 2 has
                                                              been disposed of in whole or in part on the internal
                                                              market.
2. When a Member State fixes basic quotas by
undertaking, it shall take the necessary steps to take
the interests of beet and cane growers into account.
                                                                                       Article 26
3.     General rules for the application of paragraph 1
and any derogation from the provisions of that para­           1 . The Council, acting in accordance with the
graph shall be adopted by the Council acting in ac­           voting procedure laid down in Article 43 (2) of the
cordance with the voting procedure laid down in               Treaty on a proposal from the Commission, shall fix
Article 43 (2) of the Treaty on a proposal from the           a guaranteed quantity valid for the Community at the
Commission .                                                  same time as the derived intervention prices.
4. Should detailed rules for the application of this          2. This quantity shall be equal to 105% of antici­
Article prove necessary, they shall be adopted in ac­         pated human consumption in the Community, ex­
cordance with the procedure laid down in Article 40.          pressed in terms of white sugar, during the marketing
                                                              year for which the guaranteed quantity is fixed.
                        Article 24
                                                                                       Article 27
1 . Member States shall fix a maximum quota for
the factories or the undertakings for which they have         1 . Subject to the provisions of Article 32, Member
fixed a basic quota. This maximum quota shall be              States shall impose a production levy on manu­
determined by multiplying the basic quota by a coef­          facturers of sugar which is outside the basic quota
ficient.                                                      but within the maximum quota.
 ---pagebreak---                                        Official Journal of the European Communities                                     313
 2. The production levy shall be calculated per unit               pending on whether the quantities of sugar to be
 of weight by dividing total losses incurred in market­            manufactured from it are •
 ing the quantity produced in the Community outside
                                                                   ( a) within the basic quota ;
 the guaranteed quantity by the sum of the quanti­
 ties produced outside the basic quota by Community                ( b ) outside the basic quota but within the maximum
 factories or undertakings. When this calculation is                     quota ;
 being made quantities outside the maximum quotas
 and quantities carried forward to the next marketing              (c) outside the maximum quota.
 year pursuant to Article 32 shall be ignored .
                                                                  For each factory or undertaking, sugar manufacturers
 Detailed rules for the application of this paragraph             shall inform the Member States in which the factory
 shall be adopted in accordance with the procedure                 or undertaking concerned produces sugar of :
 laid down in Article 40 .
                                                                  — the quantities of beet referred to under ( a) for
 3.    The production levy may not, however, exceed                      which pre-sowing contracts were signed and the
 a maximum amount.                                                       sugar content on which these contracts were
                                                                         based;
 4. Sugar manufacturers may require sellers to                    — the coresponding yield expected.
 reimburse the production levy in respect of a quantity
 of beet or cane corresponding to the quantity of sugar           Member States may require additional information to
 on which the production levy is charged, up to a                 be supplied to them.
 percentage which may be varied according to the
 above-mentioned raw materials. Sugar manufacturers
 shall communicate to the Member State concerned,                 2. By way of derogation from Article 27 (4) and
 for each factory or undertaking, the sum of the                  Article 29 ( 1 ), any sugar manufacturer who has not
 amounts reimbursed to them by beet or cane sellers .             signed pre-sowing delivery contracts for a quantity of
                                                                  beet equal to the basic quota, at the minimum price
                                                                  for beet referred to in the first indent of Article 4 ( 1 ),
                        Article 28                                shall be required to pay this minimum price for all
                                                                  beet processed into sugar in the factory or under­
The Council, acting in accordance with the voting                 taking concerned.
procedure laid down in Article 43 (2) of the Treaty
on a proposal from the Commission, shall fix :                    3 . The Council, acting in accordance with the
                                                                  voting procedure laid down in Article 43 (2) of the
— minimum prices for beet outside the basic quota                 Treaty on a proposal from the Commission, shall
     for the areas referred to in Article 4 ( 1 );                adopt general rules for the application of para­
— the percentage referred to in Article 27 (4);                   graph 1 .
— the maximum amount of the production levy cal­                 4. Detailed rules for the application of this Article
     culated in such a way that the minimum prices               shall be adopted in accordance with the procedure
     for beet outside the basic quota are respected,              laid down in Article 40. As far as paragraph 2 is con­
at the same time as the derived intervention prices .            cerned, they shall take the carry-forward effected
                                                                 pursuant to Article 32 into account.
                        Article 29
                                                                                           Article 31
1 . Sugar manufacturers may buy beet intended for
the production of sugar in excess of the maximum                 1.       Each Member State shall be free to decide that
quota fixed for the factory or undertaking concerned             the provisions of Article 30 are not to apply on its
at a price which is lower than the minimum prices                territory.
for beet referred to in Article 4 ( 1 ).
                                                                 2.       Each Member State shall, however, be free to
2 . The provisons of paragraph 1 shall not apply if              limit the field of application of the decision referred
the excess quantities of sugar are carried forward to            to in paragraph 1 to specific factories or undertakings
the following marketing year pursuant to Article 32.             subject to certain conditions and in line with rules to
                                                                 be adopted by the Council acting in accordance with
                                                                 the voting procedure laid down in Article 43 (2) of
                         Article 30                              the Treaty on a proposal from the Commission.
1 . In contracts for the delivery of beet for the                3 . A Member State may only decide that the pro­
manufacture of sugar, beet shall be differentiated de­           visions of Article 30 are not to apply for a fixed
 ---pagebreak--- 314                                Official Journal of the European Communities
period. If it so decides, a special maximum quota              2. Factories or undertakings may carry forward
calculated by multiplying the basic quota by a coef­           part of their production to the following market year
ficient valid for the period shall be fixed for each           only if:
factory or undertaking concerned.
                                                               — they have notified the Member States concerned
In this event, the Member States shall fix the maxi­               before 1 February of the quantity to be carried
mum quota for the factory or undertaking concerned                 forward;
for each marketing year of the period in question,
and not later than 30 June for the current marketing           — they keep the quantity carried forward in store
year, without taking the provisions of Article 24 into             from 1 February to 31 January of the following
account. The sum of the maximum quotas for the                     year; storage costs for this period shall not be re­
period in question for each factory or undertaking                 funded under the provisions of Article 8 .
must be equal to the special maximum quota fixed
for that factory or undertaking.                               3.     Provisions concerning:
The maximum quota may not be higher than the                 , — payment for beet used to manufacture the quan­
maximum quota determined in accordance with the                    tity of sugar carried forward;
method of calculation described in Article 24 (2).             — contributions by beet or cane sellers towards the
For the 1968/69 marketing year, the maximum quota                  cost of storing the quantities carried forward ;-
may not be lower than the basic quota. The maxi­               — agreement between beet or cane sellers and sugar
mum quota for the next two marketing years may                     manufacturers as a precondition for carrying for­
not be lower than the basic quota unless production                ward
is lower than the basic quota.
                                                               shall be adopted by the Council acting in accordance
For the period from 1 July 1968 to 30 June 1971 the            with the voting procedure laid down in Article 43 (2)
decision not to apply the provisions of Article 30             of the Treaty on a proposal from the Commission.
shall be taken before 1 March 1968 and the special
maximum quota shall be calculated by multiplying               4.    Detailed rules for the application of this Article
the basic quota allocated to the factory or under­             shall be adopted in accordance with the procedure
taking concerned for the 1968 /69 marketing year by            laid down in Article 40.
a coefficient of 3-5 .
                                                                                       Article 33
4. For the period or periods subsequent to 30 June
 1971 the Council, acting in accordance with the
voting procedure laid down in Article 43 (2) of the            1.     Where the tonnage of sugar produced in a
1 August 1970 :                                                Member State during the 1967/68 marketing year
                                                               exceeds the quantity referred to in Article 7 (1) of
— the length of each period for which a decision not           Regulation No 44/67/EEC, adjusted in accordance
    to apply the provisions of Article 30 may be               with Article 8 (3 ) of that Regulation, this excess shall
    taken ;                                                    be distributed by Member States as carried-forward
— the coefficient to be applied to the basic quota al­         production between factories or undertakings after
    located to the factory or undertaking concerned,           deduction of the quantities of sugar which have been
    for a marketing year still to be determined, in or­        exported to third countries in the natural state or in
    der to calculate a special maximum quota for the           the form of processed products and which have not
    period in question.                                        benefited from any export refund, production refund
                                                               or denaturing premium within the framework of a
                                                               common organisation of the markets.
5 . General rules for the application of paragraph 3
shall be adopted, if necessary, in accordance with the
                                                               2.     The quantities to be carried forward shall be
procedure laid down in Article 40.
                                                               treated as production within the basic quota for the
                                                               1968/69 marketing year. The sum of these quantities
                       Article 32                              for each Member State and other detailed rules for
                                                               the application of this Article shall be adopted in ac­
1. Where the provisons of Article 30 apply, each               cordance with the procedure laid down in Article 40.
factory or undertaking may carry forward that part
of its production which is outside the basic quota, up
                                                                                       Article 34
to a maximum corresponding to 10% of the basic
quota, to the following marketing year to be treated
as part of that year's production.                             1 . During the 1968/69 to 1974/75 marketing years,
                                                               Italy may grant adaptation subsidies to its beet grow­
No production may be carried forward to the                    ers and to its beet processing industry. These subsi­
1975/76 marketing year.                                        dies shall be abolished on 30 June 1975 .
 ---pagebreak---                                     Official Journal of the European Communities                                 315
2 . The subsidy to beet growers may not exceed                 price levels at the change-over from one marketing
1-10 units of account per metric ton of beet with a            year to the next may be adopted in accordance with
16% sugar content processed into sugar. Subsidies              the procedure laid down in Article 40.
may only be granted for the quantity of beet used to
produce a quantity of white sugar within the basic
                                                                                      Article 38
quota.
                                                               Member States and the Commission shall communi­
3 . The subsidy to the beet processing industry may
not exceed 1*46 units of account , per 100 kilo­               cate to each other the information necessary for im­
grammes of white sugar manufactured from beet                  plementing this Regulation. Rules for the communi­
                                                               cation and distribution of such information shall be
grown in Italy. It may only be granted in respect of a
quantity of white sugar which is within the basic              adopted in accordance with the procedure laid down
                                                               in Article 40 .
quota.
                                                                                      Article 39
                        TITLE IV
                                                               1 . A Management Committee for Sugar (herein­
                                                               after called the 'Committee') shall be established,
                    General provisions                         consisting of representatives of Member States and
                                                               presided over by a representative of the Commission.
                        Article 35
                                                               2.    Within the Committee the votes of Member
1 . The following shall be prohibited in the internal          States shall be weighted in accordance with Article
trade of the Community;                                        148 (2) of the Treaty. The Chairman shall not vote.
— the levying of any customs duty or charge having
    equivalent effect;                                                                Article 40
— any quantitative restriction or measure having
     equivalent effect;                                        1 . Where the procedure laid down in this Article is
                                                               to be followed, the Chairman shall refer the matter to
— recourse to Article 44 of the Treaty.                        the Committee either on his own initiative or at the
                                                               request of the respresentative of a Member State.
2.     Goods listed in Article 1 ( 1 ) which are manu­
factured or obtained from products to which Article            2.    The representative of the Commission shall sub­
9 (2) and Article 10 ( 1 ) of the Treaty do not apply          mit a draft of the measures to be taken. The Com­
shall not be admitted to free circulation within the           mittee shall deliver its Opinion on such measures
Community.                                                     within a time limit to be set by the Chairman accord­
                                                               ing to the urgency of the questions under consider­
                                                               ation. An Opinion shall be adopted by a majority of
                        Article 36                             twelve votes .
Save as otherwise provided in this Regulation,                 3.    The Commission shall adopt measures which
Articles 92 to 94 of the Treaty shall apply to the             shall apply immediately. However, if these measures
production of and trade in the products listed in              are not in accordance with the Opinion of the Com­
Article 1 ( 1 ).                                               mittee, they shall forthwith be communicated by the
                                                               Commission to the Council . In that event the Com­
                                                               mission may defer application of the measures which
                        Article 37                             it has adopted for not more than one month from the
                                                               date of such communication .
 1 . The Council, acting in accordance with the
voting procedure laid down in Article 43 (2) of the            The Council, acting in accordance with the voting
Treaty on a proposal from the Commission, shall, in            procedure laid down in Article 43 (2) of the Treaty,
respect of sugar in stock on 1 July 1968 . adopt               may take a different decision within one month.
provisions concerning the measures needed to offset
the difference between national sugar prices and
prices valid from 1 July 1968 .                                                       Article 41
2 . The requisite provisions to prevent the sugar              The Committee may consider any other question re­
market being disturbed as a result of an alteration in         ferred to it by its Charman either on his own initia­
 ---pagebreak---  316                                 Official Journal of the European Communities
tive or at the request of the representative of a Mem­                                  Article 44
ber State.
                                                                This Regulation shall be so applied that appropriate
                       Article 42                               account is taken , at the same time, of the objectives
                                                                set out in Articles 39 and 110 of the Treaty.
At the end of the transitional period, the Council,
acting in accordance with the voting procedure laid
 down in Article 43 (2) of the Treaty on a proposal                                     Article 45
from the Commission, shall decide in the light of ex­
perience whether to retain or amend the provisions of
Article 40 .                               >                    1.     Should transitional measures be necessary to
                                                                facilitate transition to the system established by this
                                                                Regulation, in particular if the introduction of the
                        Article 43                              new system on the date provided for would give rise
                                                                to substantial difficulties, such measures shall be
 1.   Regulation No 25 1 on the financing of the com­           adopted in accordance with the procedure laid down
mon agricultural policy and the provisions adopted              in Article 40. They shall be applicable until 30 June
                                                                1969 at the latest.
to implement that Regulation shall apply to the mar­
kets in the products listed in Article 1 ( 1 ) from the
date on which this Regulation begins to apply.                  2. Such measures may, however, remain applicable
                                                                until 30 June 1970 as far as the method of payment
2. From the date of application of this Regulation,             for beet in Italy is concerned.
Article 40 (4) of the Treaty and the provisions adopted
for the application of that Article shall, as far as
the Guarantee Section of the European Agricultural                                      Article 46
 Guidance and Guarantee Fund is concerned, apply to
the French overseas departments in respect of the
markets in the products listed in Article 1 ( 1 ).              1 . This Regualtion shall enter into force on the
                                                                third day following its publication in the Official
3 . The premium provided for in Article 15 (2)                  Journal of the European Communities.
shall be considered to be a levy in relation to third
countries within the meaning of Article 11 (4) of               2. It shall apply from 1 July 1968 , with the ex­
Council Regulation No 130/66/EEC2 of 26 July 1966               ception of Articles 6, 7, 23, 24, 30, 31 , 33 , 38 and 45,
on the financing of the common agricultural policy.             which shall apply immediately.
4. Financial arrangements concerning the levies                 3 . Regulation No 44/67/EEC and the provisions
provided for-in Articles 8 ( 1 ), 25 (3 ) and 27 shall be       adopted in application thereof shall be repealed with
decided upon before 31 December 1967.                           effect from 1 July 1968 .
              This Regulation shall be binding in its entirety and directly applicable in all Member
              States .
              Done at Brussels, 18 December 1967.
                                                                                       For the Council
                                                                                        The President
                                                                                       H. HOECHERL
1 OJ No 30, 20.4.1962, p . 991/62.
 2 OJ No 165, 21.9.1966, p. 2965/66.
 ---pagebreak---                Official Journal of the European Communities                               317
                                     ANNEX
      CCT
     heading                                  Description of goods
       No
ex 17.04            Sugar confectionery, not containing cocoa:
                   B. Chewing gum
                   C. Other
ex 18.06           Chocolate and other food preparations containing cocoa and sugar
ex 19.02           Preparations of flour, starch or malt extract, of a kind used as
                   infant food or for dietetic or culinary purposes, containing less than
                   50% by weight of cocoa, containing sugar
ex 19.08           Pastry, biscuits, cakes and other fine bakers' wares, whether or not
                   containing cocoa in any proportion, containing sugar
ex 21.06           Natural yeasts (active or inactive)
ex 21.07           Food preparations not elsewhere specified or included, containing
                   sugar
ex 22.02           Lemonade, flavoured spa waters and flavoured aerated waters, and
                   other non-alcoholic beverages, containing sugar, not including fruit
                   and vegetable juices falling within heading No 20.07
ex 22.09 C III     Spirituous beverages, other, containing sugar
   29.04 C II       Mannitol, sorbitol