CELEX: 31970R0442
Language: en
Date: 1970-03-09
Title: Regulation (EEC) No 442/70 of the Commission of 9 March 1970 laying down detailed rules for the application of the system of offsetting storage costs for sugar

140                                  Official Journal of the European Communities
No L 55/ 10                          Official Journal of the European Communities                                10.3.70
                            REGULATION (EEC) No 442/70 OF THE COMMISSION
                                                    of 9 March 1970
               laying down detailed rules for the application of the system of offsetting storage costs
                                                         for sugar
THE     COMMISSION       OF      THE EUROPEAN      COM­          the conditions for granting that approval are not
MUNITIES ,                                                       fulfilled and when it cannot be excepted that they
                                                                 will be fulfilled in the future ;
Having regard to the Treaty establishing the
European Economic Community ;                                    Whereas each Member State has its own particular
                                                                 situation and should therefore be given additional
Having     regard     to    Council    Regulation     No         discretion to impose further conditions and, on the
 1009/67/EEC 1 of 18 December 1967 on the common                 basis of these, to withdraw its approval;
organisation of the market in sugar, as last amended
by Regulation (EEC) No 2485 /69,2 and in particular              Whereas, pursuant to Regulation (EEC) No 750/68 ,
Article 8 (3 ) thereof;                                          reimbursements are granted only for quantities of
                                                                 white and raw sugar produced within the maximum
Whereas Council Regulation (EEC) No 750/683 of 18                quota and stored in a warehouse approved by the
June 1968 laying down general rules for offsetting               Member State on whose territory the warehouse is
storage costs for sugar, as last amended by                      situated; whereas, therefore, it is necessary to limit
Regulation (EEC) No 1394/69,4 provides for the                   approval in relation to the facilities for supervision
reimbursement of storage costs not only to every                 by Member States and to compel those entitled to
sugar manufacturer to whom a basic quota has been                reimbursements to facilitate such supervision ;
allocated and to every sugar refiner, but also to every
manufacturer of powdered, lump or candy sugar or                 Whereas, inclusion in the system of offsetting storage
specialised sugar trader who has been approved by                costs of certain syrups within the meaning of Article
the Member State on whose territory he is                        8 of Regulation No 1009/67/EEC, which must later
established ;                                                    be processed under supervision into sugar in the solid
                                                                 state, necessitates such syrups being stored in special
Whereas the extension of reimbursement to include                reservoirs ;
these trades makes it neccessary to define the concepts
of a manufacturer of powdered, lump or candy sugar               Whereas, in order not to favour manufacturers
and 0 a specialised sugar trader; whereas, for this              producing part of their sugar from syrup rather than
purpose, it is necessary to lay down certain objective           those who produce it only from beet which has been
criteria to be used for assessment, in particular as             stored sometimes for a period of up to one month,
regards substantial participation in storing;                    reimbursement should not be granted for such syrups
                                                                 for the month of production ;
Whereas, in order not to hinder possible development
of these activities, any applicant likely to fulfil the          Whereas the reimbursements and the levies for syrups
required conditions in the future should be approved ;           should be calculated according to the extractable
                                                                 sugar content in order to avoid reimbursement for
Whereas, in order to avoid abuse, approval must be               the storing of the molasses contained in those syrups ;
withdrawn, where appropriate retroactively, when                 whereas the extractable sugar content is determined
                                                                 according to the standard method fixed uniformly for
                                                                 the Community in Article 1 (4) of Commission
1 OJ No 308, 18.12.1967, p. 1.                                   Regulation (EEC) No 142/695 of 25 January 1969
2 OJ No L 314, 15.12.1969, p. 6.
3 OJ No L 137, 21.6.1968, p. 4.
4 OJ No L 179, 21.7.1969, p. 3 .                                 5 OJ No L 20, 27.1.1969, p. 1 .
 ---pagebreak---                                       Official Journal of the European Communities                                   141
laying down certain detailed rules for the application           practices in force in Member States, a maximum time
of the quota system for sugar;                                   limit of three months should be taken as a basis ;
Whereas it is not the object of the system of                    Whereas the reimbursement of storage costs applies
offsetting storage costs to offset the costs of packing          only to the quantities of white sugar, of raw sugar
the sugar; whereas, therefore, it is the net weight of           and of syrups within the meaning of Article 8 of
quantities stored or disposed of that should be taken            Regulation No 1009/67/EEC produced within the
into account with regard to reimbursements and                   limit of the maximum quota; whereas, however, in a
levies;                                                          case where the provisions of Article 30 of Regulation
                                                                 No 1009/67/EEC are not applicable it is only known
Whereas the method of calculating reimbursements                 towards the end of the sugar marketing season
and levies must not, in the case of raw sugar, give              whether any quantities of sugar have been produced
rise to distortion of competition between that sugar             in excess of the maximum quota; whereas, for that
and white sugar; whereas, to this end, raw sugar                 reason, the manufacturers have been able,
should be expressed in terms of white sugar, taking              meanwhile, to benefit from a reimbursement to
account of the yield formula laid down in Council                which they were not entitled; whereas, therefore,
Regulation (EEC) No 431 /68 1 of 9 April 1968 laying             measures should be taken for the repayment of such
down the standard quality for raw sugar and fixing               reimbursement for the quantities in question ;
the Community frontier crossing point for calculating
c.i.f. prices for sugar;                                         Whereas Article 8 of Regulation (EEC) No 750/68
                                                                 lays down that the levy shall be due on a date within
Whereas the second subparagraph of Article 3 (1) of              the period between the date on which the sugar in
Regulation (EEC) No 750/68 provides that, in special             question is disposed of and the end of the month
circumstances, special provisions may be adopted to              following that of disposal ; whereas the concept
deal with sugar in transit at the beginning of a                 'disposal' should be more clearly defined;
month; whereas such special circumstances prevail in
respect of raw sugar produced in French overseas                 Whereas a manufacturer may be required to pay the
departments, in that practically none of the                     levy while at the same time being entitled to collect
production is consumed on the spot; whereas the                  the reimbursement; whereas consequently manufac­
long distance between these departments and Europe               turers should have the right to set off levies and,
means that transport takes several weeks ; whereas,              reimbursements;
therefore, it is unavoidable that such sugar, as a
general rule, should be in transit on the first day of a         Whereas, to enable Member States to exercise
calendar month; whereas, in view of the minimum                  effective    supervision     every   claimant      must
time taken up in transport, reimbursement should be              communicate the necessary information to the
limited to less than one month;                                  Member State;
Whereas, under Article 5 of Regulation (EEC) No                  Whereas the measures provided for in this Regulation
750/68, financing costs are to be taken into account             are   in   accordance    with   the Opinion    of   the
for fixing the amount of reimbursement; whereas                  Management Committee for Sugar;
therefore it is appropriate not to grant the
reimbursement of storage costs when the refund in
respect of the sugar has been financed in advance                HAS ADOPTED THIS REGULATION:
pursuant to Council Regulation (EEC) No 441/692 of
4 March 1969 laying down further general rules on                                       Article 1
granting export refunds for products coming under a
common price system, exported in the natural state                1.   Approval as referred to in Article 2 (1 ) of
or in the form of goods not listed in Annex II to the            Regulation (EEC) No 750/68 shall be granted by
Treaty, as last amended by Regulation (EEC) No                   Member States to any manufacturer of powdered,
1905/693 ;                                                       lump or candy sugar or any specialised sugar trader
                                                                 within the meaning of this Regulation.
Whereas      claimants   should     be  able    to  collect
reimbursements       as soon      as possible;     whereas,
                                                                 2.    For the purposes of this Regulation :
therefore, rapid payment of reimbursements should
 be envisaged; whereas in view of administrative                 (a) 'a manufacturer of powdered, lump or candy
                                                                      sugar' means a person :
 1 OJ No L 89, 10.4.1968, p. 3.                                       — who is engaged in making from sugar in the
 2 OJ No L 59, 10.3.1969, p. 1 .                                          unaltered state only sugars falling within
 3 OJ No L 247, 1.10.1969, p. 1 .                                         heading No 17.01 or 17.02 of the Common
 ---pagebreak--- 142                                   Official Journal of the European Communities
          Customs Tariff which have different physical           can be carried out and on condition that the owner
          characteristics from the sugar used in the             of the sugar or syrup ensures that such supervision is
          process ; and                                          always possible.
     — whose stocks during a marketing year,
          recorded at the end of each month in
                                                                                           Article 3
          approved warehouses, are on average not less ,
          than 200 metric tons;
                                                                 The reimbursement and the levy shall be fixed per
(b) 'a specialised sugar trader' means a person:                 100 kg of white sugar. They shall be uniform for
                                                                 each unit of weight whatever the quality of the white
     — one of whose main activities consists of                  sugar in question.
          wholesale dealing in sugar and who purchases
          a minimum quantity of 10 000 metric tons of
          Community sugar in each marketing year;                                          Article 4
     — who does not carry on a retail business in                1.     To calculate the reimbursement for raw cane
          sugar ; and
                                                                 sugar, this sugar shall be converted into white sugar
     — whose stocks during a marketing year,                     by multiplying the quantity of raw sugar by the
          recorded    at the end of each month in                coefficient 0*98 .
          approved warehouses, are on average not less
          than 500 metric tons .                                 To calculate the reimbursement for raw beet sugar,
                                                                 this sugar shall be converted into white sugar
Member States may impose additional conditions for               according to one of the following methods at the
granting the approval.         ' .                               choice of the Member State concerned :
                                                                 ( a) by multiplying the quantity of raw sugar by the
3.      Approval shall be granted to any applicant who                 coefficient 0-92 ; or
is likely to fulfil in the future the conditions set out in
paragraph 2.                                                      (b) on the basis of its yield ascertained according to
                                                                       the provisions of Article 1 of Regulation (EEC)
4.     From the end of the marketing year 1970/71                      No 431 /68 .
onwards, except in cases of force majeure, approval
shall be withdrawn with retroactive effect for the last
marketing year;                                                  2.     To calculate the contribution for raw sugar, this
                                                                 sugar shall be converted into white sugar on the basis
(a) from manufacturers of powdered, lump or candy                of its yield ascertained according to the provisions of
      sugar whose stocks, recorded at the end of each            Article 1 of Regulation (EEC) No 431/68 .
     month in approved warehouses, are on average
      less than 160 metric tons for such last marketing
                                                                 3 . To calculate the reimbursement and the levy,
     year ;
                                                                 the net weight of the quantity of sugar shall be taken
                                                                 as a basis .
(b) from specialised sugar traders whose stocks
     recorded at the end of each month in approved
      warehouses, are on average less than 400 metric
      tons, for such last marketing year.                                                   Article 5
Except where the conditions referred to in paragraph             1 . Reimbursement of storage costs shall be granted
3 are fulfilled, approval shall be withdrawn when, for           in respect of cane sugar from the French overseas
the last sugar season, the conditions referred to in             departments, which is in transit at 0.00 hours on the
the first subparagraph of paragraph 2 have not been              first day of a calendar month and which, on arrival,
fulfilled. Approval may be withdrawn whenever the                is stored in an approved warehouse. Reimbursement
conditions set out in the second subparagraph of                 shall be granted only to claimants coming within
paragraph 2 are not fulfilled.                                   Article 2 ( 1 ) of Regulation (EEC) No 750/68 who
                                                                 were the owners of the sugar at the time of storage as
                                                                 referred to in the preceding paragraph.
                           Article 2
Approval as referred to in Article 3 ( 1 ) of Regulation         2. However, for the sugar referred to in paragraph
(EEC) No 750/68 shall only be granted by Member                  1 , reimbursement shall be limited to a period equal to
States to warehouses where the necessary supervision             three quarters of one month.
 ---pagebreak---                                    Official Journal of the European Communities                                    143
                        Article 6                             (a) exit of the sugar from the factory in which it was
                                                                    made, where the sugar does not enter an
1 . The reimbursement and the levy for syrups                       approved warehouse of the manufacturer of the
within the meaning of Article 8 of Regulation No                    sugar ;
1009/67/EEC shall be calculated on the basis of their
extractable sugar content.                                    (b) exit from the approved warehouse of the sugar
                                                                    manufacturer; however, transfer of the sugar
The extractable sugar content shall be determined                  from one approved warehouse to another
according to the provisions of Article 1 (4) of                    approved warehouse of the same manufacturer
Regulation (EEC) No 142/69.                                         shall not be considered as disposal;
                                                              ( c) transfer of property rights to the sugar to another
2. For reimbursement for syrup, the quantity to be                  claimant for reimbursement of storage costs
taken into consideration for one month shall equal                 without exit of the sugar from the approved
the arithmetical average of the quantities held in store           warehouse of the manufacturer;
at the beginning and at the end of the month in
question, the latter quantity having the quantity             (d) processing by the manufacturer of the sugar and
produced during the month in question deducted                      syrups into products other than those falling
from it. If the quantity produced during the month in              within heading No 17.01 of the Common
question is greater than the amount held in store at                Customs Tariff;
the end of that month, the latter quantity shall be
considered as being equal to zero.                            (e) denaturing of the sugar;
                                                              (f) exit, as a result of transfer of ownership, of
3 . For the purposes of Article 8 of Regulation No                  syrups from the reservoirs of the manufacturer
1009/67/EEC, 'certain syrups produced prior to the                  referred to in Article 6?
crystallising stage' means syrups falling within
heading No 17.02 of the Common Customs Tariff                 (g) the moment at which the sugar or syrups become
which are later processed into sugar in the solid state            subject to one of the systems referred to in
under customs control or an administrative control                  Article 2 or 3 of Regulation (EEC) No 441/69.
providing equivalent security and which are stored in
special    reservoirs   separated   from     the  sugar
manufacturing plant.                                          3.     Each     manufacturer      may     set  off    his
                                                              reimbursements against his levies.
                         Article 7
                                                                                       Article 10
Reimbursement shall not be granted for products
subject to one of the systems referred to in Articles 2       1.     All    claimants     for   reimbursement     shall
and 3 of Regulation (EEC) No 441/69.
                                                              communicate at the latest on the fifteenth day of
                                                              each month to the Member State in question :
                        Article 8
                                                              ( a) the total of the net quantities of sugar and syrup
Where a Member State decides that the provisions of                 qualifying for the reimbursement held in his store
                                                                    at midnight on the last day of the month
Article 30 of Regulation No 1009/67/EEC shall not
apply to its territory, it shall demand repayment of                preceding that of the communication;
any reimbursement made for the quantities of sugar
which, by reason of its decision, are found to have           (b) a breakdown of the quantities referred to in (a)
been produced in excess of the maximum quota.                       among the various warehouses in which his sugar
                                                                    and syrups are stored.
                         Article 9
                                                              2.     Each manufacturer shall communicate, together
                                                              with the information referred to in paragraph 1, and
1.    Reimbursement of storage costs shall be made            broken down according to the provisions of Article 9
at the latest at the end of the third month following         (2), the quantities disposed of during the month
that for which the reimbursement is due.
                                                              preceding that of the communication and produced
                                                              within his maximum quota.
2. For calculating sums relating to the levy and as
long as the latter is not already due, 'disposal', for
the purposes of Article 8 of Regulation (EEC) No              3.     Member       States    may    require   additional
750/68, means :                                               information to be communicated to them.
 ---pagebreak---  144                               Official Journal of the European Communities
                       Article 11                                                   Article 12
Commission Regulation (EEC) No 774/68 1 of 24                 This Regulation shall come into force on the third
June 1968 establishing detailed rules of application          day following its publication in the Official Journal
for offsetting storage costs for sugar, as last amended       of the European Communities.
by Regulation (EEC) No 2565/69,2 is hereby
repealed.
              This Regulation shall be binding in its entirety and directly applicable in all Member
              States.
              Done at Brussels, 9 March 1970.
                                                                               For the Commission
                                                                                   The President
                                                                                     Jean REY
1 OJ No L 142, 25.6.1968, p. 6.
2 OJ No L 321, 23.12.1969, p. 17.