CELEX: 51997PC0090
Language: en
Date: 1997-03-03
Title: Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 1789/81 laying down general rules concerning the system of minimum stocks in the sugar sector

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  Brussels, 03.03.1997
                                                  COM(97) 90 final
                                   Proposal for a
                         COUNCIL REGULATION (EO
amending Regulation (EEC) No 1789/81 laying down general rules concerning the system of
                         minimum stocks in the sugar sector
                          (presented by the Commission)
 ---pagebreak---  ---pagebreak---                                          EXPLANATORY MEMORANDUM
The minimum stock arrangements in the sugar sector are intended to maintain normal supplies
for each of the regions of the Community in the event of shortages. To that end, sugar
manufacturers and refineries have a standing obligation to maintain stocks of a certain quantity
of sugar which they may not dispose of without Community authorization, without which they
are liable to pay an amount representing the economic advantage they draw from such
operations and the cost of transporting the sugar from areas with a surplus to areas with a deficit.
As a result of the abolition of the threshold price for white sugar since 1 July 1995 following the
Marrakesh agreement which served as the basis for calculating that amount, the Commission
thinks it appropriate to propose to the Council to amend its Regulation (EEC) No 1789/81. A
flat-rate amount will be set, calculated on the basis of the same elements and the same method in
force during the last marketing year (1994/95) to which that threshold price applied. It also
proposes to the Council to provide for the possibility of reducing that amount by the
Management Committee procedure, to take account of any future reductions in the intervention
price for white sugar, which was also a reference factor in establishing the amount in question.
Henceforth the amount will be a flat-rate amount calculated as follows:
Amounts based on former Article 6 (in force until 30 June 1995)                 Amounts in the proposal
        of Regulation (EEC) No 1789/81                                        (ECU/100 kg of white sugar)
1.    Flat-rate amount representing the advantage of
      release from the aforementioned obligation                      0.193                        0.193
2.     Difference:
      2.1.      Target price                                     66.50
      2.2.      Transport costs from surplus area to deficit area6.77
      2.3.      Storage levy                                      2JÛ
      2.4.      (2.1 + 2.2 + 2.3) Threshold price                75.77 (imaginary threshold price)
      2.5.      Intervention price                               63.19
      2.6.      Storage levy                                      2J5jQ
      2.7.      (2.5 + 2.6) Intervention price + storage levy    65.69
      2.8.      (2.4 - 2.7) Difference referred to in (b) second                                    10.08
                subparagraph of Article 6 of Regulation 1789/81
 3.   Flat-rate amount                                                 2.415                        2.415
 TOTAL                                                                 12.688   12.688 - rounded up to 12.70
                                                           JL
 ---pagebreak---                                              Proposal
                                   COUNCIL REGULATION (EC) No
                                                of
  amending Regulation (EEC) No 1789/81 laying down general rules concerning the system of
                                  minimum stocks in the sugar sector
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) No 1785/81 of 30 June 1981 on the common
organization of the markets in the sugar sector1, as last amended by Regulation (EC)
No 1599/962, and in particular Article 12(2) thereof,
Having regard to the proposalfromthe Commission,
Whereas Council Regulation (EEC) No 1789/81 of 30 June 1981 laying down general rules
concerning the system of minimum stocks in the sugar sector3, as amended by Regulation (EC)
No 260/964, defines the factors for determining the amount to be levied in the event of disposal
by sugar manufacturers of quantities of sugar forming part of the minimum stock under
conditions other than those laid down; whereas one of those factors is the threshold price which
was abolished with effect from 1 July 1995;
Whereas the aforementioned amount should henceforth be set as a flat-rate amount fixed at the
overall level resulting from application of the same method as that applicable during the last
marketing year of application of the threshold price for white sugar 1994/95; whereas, however,
provision should also be made for it to be possible to reduce that flat-rate amount to take account
of any major reduction of the intervention price for white sugar in the future,
1
    OJNoL 177, 1.7.1981, p. 4.
2
    OJ No L 206,16.8.1996, p. 43.
3
    OJ No L 177, 1.7.1981, p. 39.
4
    OJ No L 34, 13.2.1996, p. 16.
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
The second subparagraph of Article 6 of Regulation (EEC) No 1789/81 is hereby replaced by
the following:
"That amount shall be ECU 12,70 per 100 kilograms. The amount may be reduced in accordance
with the procedure laid down in Article 41, taking account in particular of the amount of any
reduction in the intervention price for white sugar."
                                             Atii£k2
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                                                                       For the Council
                                             4-
 ---pagebreak---  ---pagebreak--- r             FINANCIAL STATEMENT
          BUDGET HEADING: 1119                                                            APPROPRIATIONS: p.m.
 2.       TITLE:
          Proposal for a Council Regulation amending Regulation (EEC) No 1789/81 laying down general rules concerning the
          system of minimum stocks in the sugar sector
 3.       LEGAL BASIS:
          Council Regulation (EEC) No 1785/81 of 30 June 1981
 4.       AIMS:
          Permitting the continuation of the application of the rule under which an amount has to be paid by the manufacturers and
          refiners of sugar who market without authorization their minimum stock of sugar which is held for the purpose of assuring
          the normal supplying of the Community market
 5.       FINANCIAL IMPLICATIONS                                          PERIOD OF              CURRENT               FOLLOWING
                                                                          12 MONTHS             FINANCIAL                FINANCIAL
                                                                                                 YEAR (97)                YEAR (98)
                                                                         (ECU million)         (ECU million)            (ECU million)
 5.0      EXPENDITURE
          - CHARGED TO THE EC BUDGET                                                                                         0
               (REFUNDS/INTERVENTION)
          - NATIONAL AUTHORITIES
          - OTHER
 5.1.     REVENUE
          - OWN RESOURCES OF THE EC
               (LEVIES/CUSTOMS DUTIES)
          - NATIONAL
                                                                            1999            2000             2001             2002
 5.0.1    ESTIMATED EXPENDITURE                                             p.m.            p.m.             p.m.             p.m.
 5.1.1    ESTIMATED REVENUE
 5.2      METHOD OF CALCULATION:
 6.0      CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE                                                       YES/NO
          RELEVANT CHAPTER OF THE CURRENT BUDGET?
 6.1      CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE                                                      YES/NO
          CURRENT BUDGET?
 6.2      WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                                                            YES/NO
 6.3      WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?                                                                      YES/NO
 OBSERVATIONS:
 In the past there have been no quantities concerned and there is no foreseeable (negative) expenditure for the future.
 For 1999 = p.m.
                                                                S
 ---pagebreak---                                                                    ISSN 0254-1475
                                                             COM(97) 90 final
                                             DOCUMENTS
EN                                                                        03 01
                                    Catalogue number : CB-CO-97-078-EN-C
                                                              ISBN 92-78-16362-7
Office for Official Publications of the European Communities
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