CELEX: 51989PC0071
Language: en
Date: 1989-03-29
Title: Proposal for COUNCIL REGULATION (EEC) amending Regulation (EEC) No 3033/80 laying down the trade arrangements applicable to certain goods resulting from the processing of agricultural products#Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 1010/86 laying down general rules for the production refund on certain sugar products used in the chemicals industry#(presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (89) 71
Vol. 1989/0023
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
the opening to the public of the historical archives of the European Economic Community and the
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
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2015/444 vom      13. März 2015 über die Sicherheitsvorschriften für den Schutz von EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
    amending Regulation ( EEC ) No 3033 / 80 laying down the trade
      arrangements applicable to certain goods resulting from
              the processing of agricultural products
                             Proposai for a
                       COUNCIL REGULATION ( EEC )
     amending Regulation ( EEC ) No 1010 / 86 laying down general
     rules for the production refund on certain sugar products
                   used in the chemicals industry
                    ( presented by the Commission )
 ---pagebreak---                             COMMUNICATION TO THE COUNCIL
SUBJECT : Chemically pure fructose ( levulose )
Levulose Is a chemically pure crystallised fructose which may be derived
from either sugar or cereal starch . It has been used principally in
diabetic and dietetic products and Is , thus , almost exclusively used In
non-food areas where sugar and isoglucose are not sold .
There are at present only two producers In the Community , one in France and
the other in the Federal Republic of Germany , both of which use sugar as
their raw material for economic and technical reasons .
The Community market for levulose Is expanding and in 1987 amounted to
approximately 14 000 tonnes . Traditionally , Imports have accounted for
over 40 % of Community consumption ( average of 43.5 X , In 1984/86 ), almost
entirely from Finland with small quantities from Austria . In 1987 ,
however , Imports increased by 68 X to take 58 X of the Community market .
Production of levulose In the Community In 1987 amounted to 9 500 tonnes ,
of which 3 600 tonnes were exported .
When production refunds were made available for Industrial uses of sugar ,
levulose was excluded from the right to such a refund , as It was feared
that it might compete with sugar , although a production refund is available
for levulose made from cereals .   Nor does levulose benefit from
agricultural protection against imports , the rate of customs duty being
20 X ( not bound in GATT ), with preferential rates of 8 X for EFTA countries
and 0 % for Mediterranean and ACP countries .
This lack of either a production refund or of agricultural tariff
protection has resulted In the Community Industry becoming uncompetitive
with third country producers who have access to their raw materials at
world market prices . Imports Into the Community of 10 thus Increased from
3 900 tonnes in 1984 to 8 100 tonnes in 1987 .
In the circumstances , the Commission considers that it is necessary to take
immédiate steps to re-establlsh equal conditions of compétition . It
considers that the following measures should be taken :
 ---pagebreak---                                        - 2 -
1 . Imports of Chemical ly pure fructose ( levulose ) Into thè Community from
    non-preferent lai thlrd countrles should be made subject to an
    agricultural levy .    The levy on levulose should be thè same as for
     isoglucose , In order to ensure coherence wlth thè trade regime In force
     in thè sugar sector .
2 . Levulose should be made eligible for a production refund based on the
    sugar content . In order , however , to avoid large-scale production of
    levulose which could compete with sugar , the quantity for which a
    production refund could be granted , should be restricted . The limit
    should be fixed taking account of the average market share held by
    Community producers in the period 1984/ 87 I . e . 53 X plus the current
    level of exports l.e . 3 600 tonnes , on one hand , and the quantity of
    sugar used for the fabrication of such quantities of levulose , on the
    other hand . This limit would have to be reviewed periodically by the
    Commission in accordance with these criteria , but at present would
    amount to approximately 22 000 tonnes of sugar .
The Commission requests that the Council signify its agreement with the
above package of measures by adopting the two proposed Regulations
attached . The Commission will then Itself adopt the measures necessary for
the Introduction of the refund .     The Commission considers that the measures
constitute a package and should be applied simultaneously .
 ---pagebreak---                             EXPLANATORY MEMORANDUM
The lack of either a production refund or of agricultural tariff protection
has resulted in the Community levulose industry becoming uncompetitive with
third country producers who have access to their raw material at world
market prices .  Imports into the Community of 10 thus increased from
3 900 tonnes In 1984 to 8 100 tonnes in 1987 representing 58 % of the
Community market .
In the circumstances , it is necessary to take immediate steps to
re-establish equal conditions of competition . To this end , it Is proposed
to introduce a variable component Into the unbound tariff on chemically
pure fructose . The amount of the variable component would be the same as
the agricultural levy on isoglucose .   The preferential tariff for EFTA and
Mediterranean countries would not be affected by the variable component .
 ---pagebreak---                                       Proposai for a
                                  COUNCIL REGULATION
                amending Regulation ( EEC ) No 3033/ 80 laying down
                the trade arrangements applicable to certain goods
             resulting from the processing of agricultural products
  THE COUNCIL OF THE EUROPEAN COMMUN ITI ES ,
  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 Imports of levulose ( chemical I y-pure fructose ) are subject to a
  relatively low rate of duty compared to the incidence of the difference
  between prices in the Community and in the world market for the
  agricultural     raw materials which      it contains ;
  Whereas Imports of chemlca I ly-pure fructose Into the Community have , In
  consequence , increased substantially , from 3 900 tonnes In 1984 to
  8 100 tonnes     In 1987 , amounting to 58 % of Community consumption in
  1987 ;
  Whereas the duty on chem i ca I I y-pure fructose Is not bound In the GATT ;
  Whereas , In the circumstances , it is necessary to provide for a
  variable component in the customs duty on chemically pure fructose in
  order to restore normal terms of competition ;
  Whereas since Imports of chemlca I ly-pure fructose can compete directly
  with Isoglucose , It is appropriate that the level of the variable
  component on the former should be aligned with the level of the levy on
  the latter provided for by Council Regulation ( EEC ) No 1785/81 (U of
  30 June    1981   the common organisation of       the markets   in  the sugar
_ sector , as last amended by Regulation ( EEC ) No 2306/88< 2 );
  (1 ) OJ No 77 , 1 . 7.1981 , p. 7 .
  ( 2 ) OJ No L 201 , 27.7.1988 , p. 65 .
 ---pagebreak---                                         - 2 -
Whereas the Community has entered Into preferential trade agreements with
certain third countries ; whereas the variable component should not apply to
 Imports of that product originating In those third countries ,
Whereas Council Regulation ( EEC ) No 3033/80(3 ), as amended by
Commission Regulation ( EEC ) No 3743/87 ( 4 ), must be amended
accord ingly ;
HAS ADOPTED THIS REGULATION .
                                     Article 1
Régulation ( EEC ) No 3033/ 80 Is hereby amended as fol lows :
1 . The followlng Article is Inserted :
      " Article 7a
      1.   With effect from 1 July 1989 and notwithstanding Articles 6 and
           7 , the variable component charged on Imports of products
            falling under CN Code 1702 50 00 shall be equal to the levy
            referred to in Article 16 ( 6 ) of Council Regulation ( EEC ) No
            1785/81 “* on imports of products falling under CN Codes 1702 30
            10 , 1702 40 10 , 1702 60 10 and 1702 90 30 .
       2 . Paragraph 1 shall not apply to imports of products fa II I ng under CN
           Code 1702 50 00 orlginatlng In thlrd countrles wlth whlch the
           Commun ity has concluded a préférant la I trade agr cernent ."
      (*) 0J No L 177 , 1.7.1981 , p. 7 ."
( 3 ) OJ L 323 of 29.11.1980 , p. 1
( 4 ) OJ No L 352 , 15.12.1987 , p. 29 .
 ---pagebreak--- 2 . The followlng is added to the Annex :
          CN CODE                            DESCRIPTION
      1702 50 00         Chemically pure fructose
                                  Article 2
This Regulation shall enter Into force on the third day followlng that
Its publication in the Official Journal of the European Commun 1 1 1 es .
This Régulation shall be blnding in I ts ent I rety and d I rect y appl l cable
a I I Member States .
Done at Brussels ,
                                                   For the Councll
                                                    The President
 ---pagebreak---                            EXPLANATORY MEMORANDUM
The lack of agricultural tariff protection and of production refunds has
weakened the ability of Community manufacturers of chemically pure fructose
to compete with producers In third countries who can obtain supplies of raw
materials at the world market price . Imports into the Community of Ten
h&ve risen from 3 900 tonnes In 1984 to 8 100 tonnes In 1987 and represent
58 % of the Community market .
 In the ci rcumstances ,       , action Is needed at once to restore equal
conditions of competition . Accordingly , the Commission proposes that
chemically pure fructose should qualify for a production refund based on
sugar content . In order to preclude the large-scale production of
chemically pure fructose , which might compete with sugar , the quantity
attracting the refund should be limited .
 ---pagebreak---                                       Proposai for a
                               COUNCIL REGULATION ( EEC )
   amending Regulation ( EEC ) No 1010 / 86 laying down general rules for the
            production refund on certain sugar products used In the
                                   chemicals industry
THE COUNCIL OF THE EUROPEAN COMMUN ITI ES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No          1785 / 81 of 30 June 1981 on
the common organization of the markets in the sugar sector ^ as last
amended by Regulation ( EEC ) No 2306/88 ^ 2 ^, and in particular Article 9
( 5 ) thereof ,
Whereas under Council Regulation ( EEC ) No 1010/86(3 ), as last amended
by Regulation ( EEC ) No       2306 / 88 , production refunds , given the specific
character of the sugar production system , cannot be claimed for basic
sugar    products   used    In  the manufacture      of  levulose    ( chemical I y-pure
fructose ) coming under CN code 1702 50 00 ; whereas as the production
refund system does not apply in this case and as imports at zero or low
duty originating in certain third countries linked with the Community by
free trade agreements are          Increasing ,   the Community fructose       Industry
operates In a situation of undue disadvantage when compared with that of
the fructose Industry obtaining supplies on the world market ;
( 1 ) 0J No  L 177 , 1 . 7.1981 , p. 4 .
( 2 ) OJ No  L 201 , 27.7.1988 , p. 65 .
( 3 ) OJ No  L 94 , 9.4.1986 , p. 9 .
 ---pagebreak--- Whereas in these circumstances , the possibility should be afforded under
the procedure laid down of paying production refunds for the manufacture
of this product but within limits and In a manner determined so as not to
undermine the production system for sugar ,
HAS ADOPTED THIS REGULATION :
                                     Article 1
The following paragraph 1a is hereby inserted in Article 1 of Regulation
( EEC ) No 1010/ 86 :
" 1a .    When , pursuant to Article 8 , chemica I ly-pure fructose Is Inserted
           In the Annex to this Regulation , the production refund shall be
          granted on an overall quantity of that product to be determined
          for the Community .
          The quantity shall be determined for one or more marketing years
          taking into consideration , in particular :
          ( a ) the average Community production of cheml ca I ly- pure fructose
                obtained during a reference period ;
          ( b ) the trend of the market and of       imports of chemlca I ly- pure
                fructose ;
          ( c ) the repercussions , if any , on the Communlty market in sugar .
          The    Chemical I y-pure fructose   Included   in  the Annex
                        shall be such fructose obtained In the form of white
          crystalline powder , whether or not agglomerated , containing , In
          the dry state , 99.5 % or more of fructose ".
 ---pagebreak---                                 Article 2
This Regulation shall enter Into force on the third day following that of
Its publication in the Official Journal of the European Communities .
It shall apply with effect from 1 July 1989 .
Thls Régulation shall be blnding In Its entlrety and dlrectly applicable
In a 1 1 Member States .
Done at Brussels ,                        For the Councll
                                          The President
                                                                          j i
 ---pagebreak---                    FICHE FINANCIERE                                                       M7E :     15.11.1988
    1 . LIGNE BUDGETAIRE :         100                                                 CRÉDITS :   1.485,6 Mio ECU
   2.    INTITULE DE LA ASSURE         Modification du règlément              ( CEE ) n° 3033 / 80
  3 . BASE JURIDIQUE :                 Traité CEE
        OBJECTIFS DE LA MESURE :       Il    s' aÇit d' une extension du prélèvement à l ' importation ■ ‘
            Lévulose originaire              des pays tiers sans accords préférentiels avec la CEE
  5 . INCIDENCES FINANCIERES                             PERIODE DE 12 MOIS   EXERCICE EN COURS ( 89 )   EXERCICE SUIVANT (90 )
  5.0 DEPENSES A LA CHARGE
        - DU BUDGET DES
            ( RESTI TUTJØKS/lNTERVENT IONS J
        - DES&U9CcTS NATIONAUX
        -^ÏUTRES SECTEURS
 5.1    RECETTES
        - RESSOURCES PROPRES DES CE
                                                                                  0,04 Mio ECU                0,2 Mio ECU
            ( PRELEVEMENTS / DROITS DE DOUANE )
        - SUR LE PLAN NATIONAL
                                                                                         (1 )                     (1 )
 Î.O. 1       PREVISIONS DES DEPENSES
                                                                                                           ··
 5.1.1       PREVISIONS SES RECETTES
S. 2      MOOE DE CALCUL :
           12 mois            300 tonnes ( T ) x 551,6 Ecu / t x 1,123 ( DT ) »^ 0,2 Mio ECU
           1989               0,2    x    2,5 mois = 0,04 Mio ECU
                                          12
4.0       FINANCEMENT POSSIBLE PAR CREDITS       INSCRITS AU CHAPITRE CONCERNE DU BUDGET EN COURS D ' EXECUTION––"-OUI / NON
6.1       FINANCEMENT POSSIBLE PAR VIREMENT ENTRE CHAPJJAW-DTTBÜDGET        EN COURS D' EXECUTION                      OUI / NON
6.2      NECESS¡T£_DJ■WSCDGET      SUPPLEMENTAIRE                                                                      OUI / NON
4.3      CREDITS » INSCRIRE SANS LES BUDGETS FU7URS                                                                    OUI / NAN ­
         ( 1 ) Il est probable que l' instauration du prélèvement à l' importation
                découragera ce flux actuel d' importation et que cette recette ne
                 sera en fait pas effectivement perçue .
 ---pagebreak---                      FICHE FINANCIERE
     1 . LIGNE BUDGETAIRE :           1112                                           CREDITS : g -| Mio EC|J
     2. INTITULE DE LA MESURE : Modification du règlement ( CEE ) n° 1010/ 86 établissant les
          règles générales applicables à la restitution à la production pour certains pro
         duits du secteur du sucre utilisés dans l' industrie chimique
    3 . BASE JURIDIQUE :                  Traité CEE
    4. OBJECTIFS DE LA MESURE : Il s' agit d' une mesure qui donne la possibilité de fabriquer
         la lévulose ( fructose chimiquement pure ) en bénéficiant des restitutions à la
        production dans des limites et conditions déterminées ( quantité maximale :
        22.000 t )                      .
   5 . INCIDENCES FINANCIERES                          PERIODE 0E 12 H0IS   EXERCICE EN COURS C 89> EXERCICE SUIVANT (   90 )
   5.0 DEPENSES A LA CHARGE
         -   DU BUDGET DES      CE                        8,6 Mio ECU          1,8 Mio ECU             8,6 Mio ECU
             ( JtESTITUTI ONS / INTERVENTIONS )
         - DES BUDGETS NATIONAUX
         - D' AUTRES SECTEURS
   5.1 RECETTES
         - RESSOURCES PROPRES DES CE
            ( PRELEVEMENTS/ DROITS DE DOUANE )
         - SUR LE PLAN NATIONAL
  î.0.1       PREVISIONS DES DEPENSES
  5.1.1      PREVIS I DNS DES RECETTES
  5.2     MODE DE CALCUL :          Restitution à    1a production
           Sur 12 mois               ( 430 - 70 )  x 0,022 Mio t x 1,084 ( DT ) = 8,59 Mio ECU
           Sur 1989                  8,59 x 2,5 mois = 1,79 Mio          ECU
                                                12
 6.0     FINANCEMENT POSSIBLE PAR CREDITS INSCRITS AU CHAPITRE CONCERNE DU BUDGET EN COURS D' EXECUTION         ««fc/ NON
6.1      FINANCEMENT POSSIBLE PAR VIREMENT ENTRE CHAPITRES DU BUDGET EN COURS D' EXECUTION                       OUI / NCN
6.2     NECESSITE D' UN BUDGET SUPPLEMENTAIRE                                                                   OUI / NON
6.3     CREDITS A INSCRIRE DANS LES BUDGETS FUTURS                                                              OUl / fA*
OBSERVATIONS : Cette dépense supplémentaire sera prise en considération pour le calcul
                       du financement de l' écoulement des excédents de sucre par les produc ¬
                       teurs ; elle devrait donc être couverte par une augmentation correspon¬
                       dante de la cotisation complémentaire à verser par la profession en
                       décembre de chaque année .