CELEX: 51974PC1593
Language: en
Date: 1974-10-01
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL on the introduction of a subsidy on imports of white and raw sugar#Proposal for a REGULATION (EEC) OF THE COUNCIL on the financing of the subsidy on sugar imports and the granting of subsidy on sugar produced in excess of the maximum quota (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1593
Vol. 1974/0256
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM(74 ) 1593 final
                                             Brussels , 1 October 1974
                                Proposal for a
                        PECULATION ( EEC) OF THE COUNCIL
                      on the introduction of a subsidy on ,
                        imports of white and raw sugar
                                 Proposal for a
                        REGULATION ( EEC) OF THE COUNCIL
                   on the financing of the subsidy on sugar
                   imports and the granting of ?. subsidy on
                sugar produced in excess of the maximum quota­
                ( submitted to the Council by the Commission)
   C0M(74) 1593 final
 ---pagebreak---                         Explanatory Memorandum
1. The two Regulations proposed to the Council concerning the introduction of
   an import subsidy and its financing have a angle ain9 which is to enable
   a decision to be taken on the granting of subsidies on sugar imports .
   Since the legal basis is different in each case , it was necessary to
   have two Regulations .  The explanatory memorandum relates to them both.
2. The situation as regards sugar supplies to the Community has deteriorated
   since the autumn of 1973 because of an abnormal growth in sugar consumption
   and because of shortfalls in deliveries from the Commonwealth countries .
   The situation is aggravated by the increasingly bad prospects for the
   1974 harvest . In these circumstances , there is likely to be a sugar
   deficit in the Community in the order of 300 000 to 500 000 metrio tons
   for the 1974/75 marketing year. Current market prices in those
   Community countries which traditionally have a deficit , in particular
   the United Kingdom and Italy , are appreciably higher than the prices
 * fixed for the Community.
3. Moreover , there is an increased shortage on the world sugar market .
   World prices for white sugar are in the region of J2 u.a. /lOO kg as
   against the target price of 26.55 u.a. ajagJ,.icable on 1 July 1974»
4. Community legislation provides Jbr the granting of a subsidy on imports
   of sugar in specific circumstances ( see the preamble to the draft
   Regulation on the introduction of a subsidy on imports of white and
   raw sugar). If the criteria laid down are satisfied , the Council must
   decide on the granting of the subsidy in question.
5» In order to reduce the costs of such imports as much as possible ,
   importers of the sugar in question should be authorized to export
   equivalent quantities of Community sugar produced from the 1975 beet
   harvest . Provision must be made fw such transactions to be exempt
   from the export levy. Such reexports may take advantage of the high
   prices quoted on forward markets ( after the autumn of 1975 ) and are
   therefore likely to reduce the overall costs of the proposed operation.
 ---pagebreak--- Tl-ic s"ctom presupposes that , talcing into account preferential imports
from the ACP States and foreseeable consumption , there will "be sugar
available for export from the 1975 harvest at the Community price ,
 6.   The proposed transactions should include Community sugar produced in
excess of the maximum quota , 20    of which may , under Community provisions ,
"be exported freely to the world market in 1974/75 * This would enable
traders to achieve certain economies ( transport costs and handling , for
example ).   Since the amount of the subsidy is to be determined by means
of an invitation to tender , such economies may be reflected in the
tenders .             <
 ---pagebreak--- 7.    Financial conséquences
Prom the financial point of view , this proposal provides for the grunting
in respect of the sugar in question of:
( a) a subsidy on imports of sugar from third countries and a subsidy on
      Community sugar produced in excess of the maximum quota ,
(b ) exemption from the levy on exports of equivalent quantities after the
      start of the 1975 "beet year .
On point ( a) For quantities in the order of 300 000 to 500 000 metric
                tons of sugar , in respect of which the subsidy is estimated
                at 200 u.a./metric ton , foreseeable expenditure amounts to
               "between 60 and 100 million u.a .
                In view of the time when the measure is put into operation
               and the time required for transporting the goods , the first
                subsidies will probably not be paid until the beginning of
                1975 *     should be noted that when the preliminary draft
               budget and the amending letter were drawn up the expenditure
               resulting from this proposal was not taken into account .
               Following the Council decision it will therefore be necessary
               to make provision for a corresponding increase in the
               appropriations for the Guarantee Section of the EAGGF .
On point (b ) It is hard to calculate the financial consequences of
               exemption from the levy on exports of equivalent quantities .
               This depends on the quantities actually exported and the
               amount of the export levy.     It depends on the evolution of
               prices on the world market whether or not there is an export
               levy in 1975 and 1976 .
Budget of the
Budget         European Communities , Article 641 – Intervention in favour
                                                     of sugar
1973 - Appropriations 84 530 000 u.a. , Expenditure 75 500 000 u.a.
1974 - Appropriations 97 700 000 u.a ., Expenditure
1975 "* Appropriations 114 100 000 u.a. (preliminary draft Budget )
 ---pagebreak---                                      Proposal for a
                              REGULATION (EEC ) OF 1HS COUNCIL
                 on the introduction of a subsidy on imports of
                                 white and raw sugar
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ; ;
Having regard to Council Regulation No IOO9/67/EEC''' ^ of 18 December 1967 on
the common organization of the market in sugar , as last amended by Regulation
(EEC) NO ,*.../74^» and in particular Article 16 (3) thereof;
Having regard to Council Regulation (EEC) NO 608/72^ of 23 March 1972 laying
down rules to be applied in cases of considerable price rises on the world
sugar market , and in particular Article 2 thereof ?
Having regard to the proposal from the Commission ;
Whereas Article 16 (2 ) of Regulation No 1009/67/EEC makes, provision for a
subsidy to be granted on imports of sugar if the c.i.f . price for sugar is
higher than the thresold price; whereas , tnder Article 2 of Regulation (EEC )
no 608/72 , the Council must decide on the granting of the subsidy on imports
of sugar where it is found that supplies to the Community or to a high-consumption
region of the Community can no longer be maintained ;
Whereas the c.i.f . price has been higher than the threshold price since December 1973
whereas , given the latest estimate of foreseeable production , imports and con­
sumption , sugar supplies to the Community as a whole can no longer be maintained ;
whereas , in view of the seriousness of the situation , an import subsidy must be
decided on ;
Whereas the prices for sugar on the Community market , particulary in the deficit
regions , are appreciably higher than Community prices ; whereas it is necessary to
provide for sugar to be imported in sufficient quantities to enable the general
objective of maintaining sugar supplies at the Community price to be attainsd :
1)J0 No 308 , 18.12.1967 , p.l
2)J0 No
3)J0 No L 75 , 28.3.1972 , p. 5
 ---pagebreak--- Whereas , hr,vin ? regard "to the forward market in sugar , the costs of
tho import subsidies will be reduced if the importers concerned are
authorised to export an equivalent quantity of sugar produced during
the 1975/76 sugar yearj            v
Whereas , in view of the complexity of the proposed rueasure and in order
to ensure equal opportunities for all importers , the amount of the
subsidy should be determined by means of an invitation to tender )
HAS AD0PT3D THES REGULATION :
 ---pagebreak---                                     Article 1
A subsidy shall "be granted on white sugar and rax sugar imported into the
Community from third countries «
                                    Article 2
The import subsidy shall relate only to the quantity of sugar required to
  guarantee supplies of sugar to the Community until the beginning of the
1975 "beet year on the "basis of the Community price#
                                    Article 3
1# Tenders shall "be invited for the purpose of determining the subsidy
    per unit of weight of sugar.
2 * The tendering conditions must guarantee equality of aocess for all
    persons established in the Community*
3 « The successful tenderer shall be required to abide by a maximum price
    level , fixed by reference to the threshold price , for sales of the su­
    gar to consumers in the Community#
4« The tenderer may export during a speoified period % quantity of sugar
            v
    equal to that to which his tender relates without the proviaons of
    Article 16 (l ) of Regulation no IOO9/67/EEO being applied#
                                   Artiole 4
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities#
   This Regulation shall be binding in its entirety and directly applicable
   in all Member States#
   Done at Brussel ,                                For the Gouncil
    y
                                                     The Président
 ---pagebreak---                              Proposai . fo? a
                     REGULATION (EH))o? Vrjsj COUFTIL
        on the financing of the subsidy, on sugar iaports and the granting
         of a subsidy on sugar produced in excess of the maximum quota
THE COUNCIL OF THE EUROPE/JT COMIIUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 43 thereof ;
Having regard to the proposal from the Commission ;
Having regard to. the Opinion of. the European Parliament ;
Whereas , under Article 16 of Council Regulation No IOCS/6'J/EEG^ of
18 December 196? on the common organization of the market in sugar ,
as last amended by Regulation (EEC ) ITo       Jl^'y a subsidy on sugar
imports was decided on by Council Regulation (EEC) NO          /74^ of
                 1974 on the introduction of a subsidy on imports of white
and raw sugar ;
Whereas , in order to limit as Par as - possible the financial consequences
of such imports and to uphold Community preference , the field of action --
of traders should be enlarged to include Community sugar produced in exes
of the maximum quota which, under Article 25 of Regulation No IOO9/67 /EEC
should be exported to third countries ; " .   ■         . v '■
Whereas , the financing of subsidies on sugar imports , whether under
Regulation (EEC ) No      /74 or under this Regulation, is a task for the
Community as a whole within the framework of the regularization of
agricultural markets ; whereas the necessary measures should therefore
be taken ;
HA3 ADOPTED THIS REGULATION s
1 OJ No 308, 18 December 196?, p#l
2 OJ
3 0J
 ---pagebreak---                                      Article I
1# A decision may "be taken to grant a subsidy in respect     of sugar
    produced in excess of the - maximum quota in the Community during-
    the 1973/74 and 1974/75 sugar years and which , under Article 25
    of Regulation lib IOO9/67/EEC1 should "be exported to third countries#
2 * The introduction of the subsidy and detailed rules for the application
    of this Artiole shall "be adopted in accordance with the procedure
    laid down in Article 40 of Regulation Hot IOO9/67/EEO#
                                     Article 2
As regards the financing of the common agricultural policy , the subsidy
– granted on imports of sugar pursuant to . Article 16 of Regulation
  No IOO9/67/EEC or .                            ,             '           ,
– granted in respect of sugar produced in . excess . of the maximum quota
   pursuant to . Article 1
shall be regarded as intervention measures intended to regularize agri­
cultural markets#
                                   . Article 3
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities#
   This Regulation shall be binding in its entirety and direotly
   applicable in all Member States#            -
                  V                                                      '
Done at Erussel ,     .                                 For the Counoil
                                                         The Président