CELEX: 31968R0765
Language: en
Date: 1968-06-18
Title: Regulation (EEC) No 765/68 of the Council of 18 June 1968 laying down general rules for the production refund on sugar used in the chemical industry

150                                 Official Journal of the European Communities
25.6.68                              Official Journal of the European Communities                             No L 143 / 1
                                 REGULATION (EEC) No 765/68 OF THE COUNCIL
                                                    of 18 June 1968
             laying down general rules for the production refund on sugar used in the chemical
                                                          industry
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                        appropriate since it allows price trends to be ob­
                                                                 served while ensuring a relatively stable refund ;
Having regard to the Treaty establishing the                     Whereas to avoid discouraging the use of cereals,
European Economic Community;                                     sugar intended for use in the manufacture of the
                                                                 products listed in Annex I, which can also be manu­
Having regard to Council Regulation No 1009/67/                  factured from maize, must be made available to the
EEC1 of 18 December 1967 on the common organisa­                 chemical industry at a price which takes this fact into
tion of the market in sugar, and in particular Article           account; whereas, this price should therefore be
9 (7) thereof;                                                   fixed at 13-30 units of account per 100 kilogrammes
                                                                 of white sugar and provision made for the subsequent
Having regard to the proposal from the Commission ;              adjustment of that price on the basis of certain ob­
                                                                 jective factors which would make it possible to assess
                                                                 developments in the processing industry ;
Whereas Article 9 (6) of Regulation 1009/67/EEC
provides for a production refund on sugar and on
syrups containing sucrose used in the manufacture                Whereas, when the production refund is being fixed
of certain products of the chemical industry ;                   for sugar used in the manufacture of the products
                                                                 listed in Annex II, which can also be manufactured
                                                                 from molasses, the relationship between the price
Whereas, to avoid abuses, provision should be made               for sugar and that for molasses should be taken into
for the production refund to be granted only if other            account ;
uses are excluded by means of controls ;
                                                                 Whereas sugar used in the manufacture of the pro­
Whereas control can be facilitated if the production             ducts listed in Annex III is not in direct competition
refund is paid only on application by the processor ;            with other basic products ; whereas the production
                                                                 refund can therefore be based on the difference
Whereas controls would, in certain cases, be made                between the intervention price and world market
more effective if provision were also made for pro­              prices, the latter being increased by a certain margin
cessors being officially approved ; whereas the                  which would allow, in particular, for the customs
Member State in whose territory processing takes                 protection given these chemical products ; whereas,
place should therefore be free to decide whether or              however, when the refund is being fixed each quarter,
not to apply such provisions ;                                   an adjustment should be made in relation to price
                                                                 fluctuations on the world market only under certain
                                                                 conditions ;
Whereas the purpose of refunds is to make it possible
for the chemical industry to use sugar produced in
the Community rather than sugar originating in third             Whereas raw sugar and syrups containing sucrose
countries ; whereas, therefore, when this refund is              can also be used in the processing industry ; whereas
being fixed, significant price fluctuations on the               provision should therefore be made for the pro­
world market and special circumstances affecting                 duction refund on white sugar, adjusted in relation to
supplies of sugar used in the processing industry must           their respective yields, to be granted in respect of
be taken into account; whereas, to this end, the                 these basic products ;
refund should be fixed at regular intervals ; whereas
a period of three months would seem to be the most               Whereas, in view of the conditions under which
                                                                 penicillin is produced, when the refund on that pro­
                                                                 duct is being determined, a special conversion ratio
                                                                 should be taken into account; whereas, furthermore,
1 OJ No 308 , 18.12.1967, p. 1 .                                 the principle of a similar conversion ratio for fruc­
 ---pagebreak---                                       Official Journal of the European Communities                                    151
tose, fixed in accordance with the procedure laid                at a level which does not allow normal competition
down in Article 40 of Regulation No 1009/67/EEC,                 between the chemical products in question manufac­
should be established :                                          tured in the Community and identical or similar
                                                                 imported or exported products.
HAS ADOPTED THIS REGULATION :
                                                                 3 . Before 1 November 1971 the Council, acting on
                                                                 a proposal from the Commission in accordance with
                           Article 1
                                                                 the voting procedure laid down in Article 43 (2) of
A production refund shall be granted on the products             the Treaty, shall decide on the rules which shall
 listed in Article 1 ( 1 ) ( a) of Regulation No 1009/67/        apply from 1 February 1972 to production refunds
EEC and on the syrups containing sucrose listed in               on the products listed in Annex I on the basis of:
Article 1 ( 1 ) ( d) of that Regulation (hereinafter called
' basic products') which are used in the manufacture             ( a) sugar consumption in industry;
of the products of the chemical industry listed in the           (b ) trends which have become apparent in the techni­
Annexes (hereinafter called 'chemical products')                      cal field ;
under the conditions laid down in the following
Articles .                                                       ( c) the financial consequences of the proposed
                                                                      measures ;
                           Article 2
                                                                 (d) competition from synthetic products ;
1 . The production refund shall be granted by the
Member State in whose territory processing of the                (e) the competitive position of industries processing
basic products takes place.                                           the products concerned.
2. The Member State may grant the refund only                                             Article 6
if customs control, or an administrative inspection
offering equivalent guarantees, ensures that the basic           1 . The production refund on 100 kilogrammes of
products are used for the purpose indicated in the              white sugar used in the manufacture of the products
application referred to in Article 3 .                          listed in Annex II shall be equal to the intervention
                                                                price for white sugar valid for the area in which the
                           Article 3                             place of processing is situated, less :
1 . The production refund shall be granted only to               (a ) the price for molasses used pursuant to Article 4
processors who guarantee that the control provided                    (2) of Regulation No 1009/67/EEC to determine
for in Article 2 can be carried out at any time and                   receipts from the sales of molasses for the market­
who have submitted an application specifying the                      ing year in question, divided by 0-48 ; and
use to which the sugar is to be put.
                                                                 (b) 0-5 units of account.
2. The Member State concerned may make entitle­
ment to the refund subject to prior official approval            2. The production refund on white sugar used in the
being granted to these processors.                               manufacture of the products listed in Annex II shall
                                                                 not, however, be greater than the refund on white
                           Article 4
                                                                 sugar used in the manufacture of the products listed
                                                                 in Annex III.
Production refunds on white sugar shall be fixed
quarterly for the periods commencing on 1 July,                                           Article 7
 1 October, 1 January and 1 April.
                                                                 1 . The production refund on 100 kilogrammes of
                           Article 5
                                                                 white sugar used in the manufacture of the products
                                                                 listed in Annex III shall be equal to the arithmetic
 1 . Until 31 January 1972, the production refund on             mean of the intervention price for white sugar valid
 100 kilogrammes of white sugar used in the manu­                for the Community area having the largest surplus
facture of the products listed in Annex I shall be               and the intervention price for white sugar valid for
equal to the intervention price valid for the area in            the area in which the place of processing is situated,
which the place of processing is situated, less 13-30            less :
units of account.
                                                                 ( a) the arithmetic mean of prices recorded on the
                                                                      world market over a reference period ; and
2. The amount indicated in paragraph 1 shall be
adjusted by the Council, acting on a proposal from               (b) 2-00 units of account.
the Commission in accordance with the voting pro­
cedure laid down in Article 43 (2) of the Treaty, if the         2. The reference period shall cover the first fifteen
world market price for sugar remains for a long time             days of the month preceding the quarter for which
 ---pagebreak---  152                                Official Journal of the European Communities
 the production refund is fixed and the two months             of Regulation No 1009/67/EEC shall be equal to one
 immediately preceding that month.                             hundredth of the refund applicable where white
                                                               sugar is used, multiplied by the sucrose content of
 World market' prices :                                        the syrup used.
 (a) for the quarter commencing 1 July 1968 , shall be
      the spot prices recorded for white sugar on the                                  Article 9
      Paris Bourse;
                                                               For the manufacture of one kilogramme of penicillin
 (b ) for all subsequent quarters, shall be the c.i.f.         from the basic products referred to in Article 1 ,
      prices for white sugar.                                  Member States shall grant, at most, a production
                                                               refund in respect of 15-3 kilogrammes of white sugar.
 3 . When the production refund is being fixed for a
 quarter, an alteration shall be made only if a vari­                                 Article 10
 ation in the factors used to calculate it results in the
 refund per 100 kilogrammes of white sugar being               1 . The production refund shall be granted on sugar
 at least one unit of account higher or lower than the         used in the manufacture of fructose only if the
 refund valid for the previous quarter.                        fructose is used for pharmaceutical purposes or in
                                                               foods for diabetics .
                         Article 8
                                                               2. When the production refund on sugar used in
 1 . The production refund on 100 kilogrammes of               the manufacture of fructose is being granted, a
 raw sugar shall be equal to one hundredth of the              uniform conversion ratio between the value of basic
refund applicable where white sugar is used, multi­            product and the value of the fructose and any other
plied by the yield of the raw sugar used, that yield           product which may be obtained should be taken into
 being calculated in accordance with the provisions of         account .
 Article 1 of Regulation (EEC) No 431 /68 1 of the
 Council of 9 April 1968 determining the standard                                     Article 11
quality for raw sugar and fixing the Community
frontier crossing point for calculating c.i.f. prices for      This Regulation shall enter into force on the third
sugar .                                                        day following its publication in the Official Journal
                                                               of the European Communities.
2. The production refund on 100 kilogrammes of
the syrups containing sucrose listed in Article 1 (d)          It shall apply from 1 July 1968 .
                This Regulation shall be binding in its entirety and directly applicable in all Member
                States .
               Done at Luxembourg, 18 June 1968 .
                                                                                         For the Council
                                                                                          The President
                                                                                             E. FAURE
1 OJ No L 89, 10.4.1968 , p. 3.
 ---pagebreak---                  Official Journal of the European Communities                               153
                                      ANNEX I
                                   List of Products
         CCT
       heading                                 Description of goods
          No
ex 17.02 D            Sorbose
   29.04 C II         Mannitol, sorbitol
ex 29.16              Mannitol and sorbitol esters
ex 29.16 A VIII       Glyceric acid, glycollic acid, saccharonic acid, isosaccharonic acid
                      heptaric acid, their salts and esters
ex 29.35 S            Anhydric compounds of mannitol and sorbitol (as, for example
                      sorbitans) not including maltol and isomaltol
ex 29.43 B            Sorbose, its salts and esters, methylglucosides
   38.19 Q II         Foundry core binders based on synthetic resins
ex 38.19 Q IV         Sorbitol cracking products
               -
                                      ANNEX II
                                   List of products
        CCT
       heading                                 Description of goods
         No
   29.16 A IV         Citric acid, its salts and esters
   29.23 D           Amino-acids , their salts and esters
                                       ANNEX III
                                   List of Products
        CCT
       heading                                 Description of goods
         No
ex 15.11 B           Glycerol, other than crude
ex 28.17 A           Sodium hydroxide (caustic soda)
ex 28.45 B           Sodium silicates
   29.04 C I         Diols
   29.04 C III       Other polyhydric alcohols
   29.05 A III       Sterols and inositols
   29.15 A I         Oxalic acid, its salts and esters
ex 29.15 A V         Citratonic acid , itaconic acid, succinic acid, their salts and esters
   29.16 A I         Lactic acid , its salts and esters
 ---pagebreak--- 154                 Official Journal of the European Communities
             CCT
            heading                               Description of goods
              No
       29.16 AIII        Tartaric acid, its salts and esters
    ex 29.16 C III       Oxoglutaric, laevulic acid, their salts and esters
    ex 29.16 D           Glucuronic acid, ketogluconic acid, their salts and esters
    ex 29.19 A           Lactophosphates
       29.35 A           Furfuraldehyde (furfural, furfurol) and benzofuran (coumarone)
       29.35 B           Furfuryl and tetrahydrofurfuryl alcohols
       29.35 L           Nucleic acids and their salts
    ex 29.35 S           Hydroxymethylfurfuraldehyde and its derivatives, lactide, purine,
                         pyrimidine, maltol, isomaltol, piperidine, piperazine, lactones of
                         glucuronic acid
       29.39 E           Other hormones
    ex 29.43 B           Fructose , its salts and esters , lactobionates
       29.44 A           Penicillins
    ex 32.02             Tannin esters
       32.05 A           Synthetic organic dyestuffs (including pigment dyestuffs)
       32.05 C           Synthetic organic products of a kind used as luminophores
       32.05 D           Products of the kind known as optical bleaching agents, substantive
                         to the fibre
    ex 34.01             Translucent soaps
       34.02             Organic surface-active agents ; surface-active preparations and washing
                         preparations, whether or not containing soap
    ex 35.03 B           Glues derived from bones , hides, nerves, tendons or similar products
                         and fish glues
    ex 38.11             Disinfectants, insecticides, fungicides, weed-killers, anti-sprouting
                         products, rat poisons and similar products, put up in forms or packings
                         for sale by retail or as preparations or as articles (for example, sul­
                         phur-treated bands, wicks and candles, fly-papers) excluding those
                         falling within A, B or C I
    ex 38.11 B           Preparations based on copper compounds
    ex 38.19 Q IV        Parting agents for exposed aggregate concrete, retarding agents for
                         cement hardening ; softening agents, foundry core binders based on
                         sodium silicate, expoxy polishers ; calcium polylactate, lactoglycerides
        39.01 C I        Phenoplasts
        39.01 C II       Aminoplasts
    ex 39.01 C VIII      Polyalkylene glycol ether