CELEX: 51980PC0553
Language: en
Date: 1980-09-30
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) ON THE COMMON ORGANIZATION OF THE MARKET IN SUGARS (presented by the Commission to the Council)

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COM (80) 553
Vol. 1980/0179
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                       COM(80)553 final
         ,                             Brussels . 30th September 1980
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                             V >•       N7
                PROPOSAL FOR A COUNCIL REGULATION ( EEC )
           ON THE COMMON ORGANIZATION OF THE MARKET IN SUGARS
             (presented by the Commission to the Council )
   COM (80) 553 final
 ---pagebreak---                                                                                 WP
                                EXPLANATORY MEMORANDUM
Subject : Community policy in the sugars sector from 1 July 1 981
The present Community production regime in the sugar and isoglucose
sectors expires on 30 June 198 1 ( 1 ).
It is therefore appropriate to define the Community 's future policy in
these sectors taking account of acquired experience , and of the known and
foreseeable developments in production , consumption and marketing .
THE PRESENT REGIME                                                .
1 . For sugar the present regulations comprise a prices system and a system
     of production quotas .    The prices system for sugar provides a threshold
     price , a target price , regionalized intervention prices and minimum
     prices for beet ( also regionalized ).    Price levels are assured by means
     of import levies * export refunds , an obligation to buy into
     intervention and a system of reimbursement of storage costs .
     The system of production quotas takes as its starting point a basic
     quantity fixed for each Member State .     This quantity is allocated by
     the Member State to its sugar undertakings as basic quotas ( or A
     quotas ), the total v of which is 9 136 000 tonnes of white sugar .    To the
     A quota of each manufacturer is added a B quota which , for 1980 / 81 , has
     been fixed at a uniform 27.5 % of the A quota .     The Community 's price
     and sales guarantees apply to A + B production but a production levy is
     charged on B production as a contribution by the producers towards the
     cost of disposing of surplusses .     Since 1975 /76 the maximum amount of
     this levy has been fixed at 30J5 ( 2 ) of the intervention price .    All
     production above these quotas ,( i.e. C sugar ) must be exported by the
     producers at their own expense .
( 1 ) Article 23 of Regulation ( EEC ) No 3330/74 for the sugar sector ,
      Article 8 of Regulation ( EEC ) No 1111 /77 for the isoglucose sector ,
      Regulation ( EEC ) No 1592/80 for the sugar and isoglucose sectors .
( 2 ) From 1968/ 69 to 1974/75 this maximum was 40$ .
 ---pagebreak---                                          - ? -
 2 . For isoglucose the present regulations comprise a system of production
      quotas coupled with a trading system .    The present quota system
      provides for the allocation of an A quota direct to each undertaking .
     The total of such quotas is 138 8 19 tonnes ( 1 ) of isoglucose expressed
     as dry matter .    As in the sugar sector , to each A quota is added a B
     quota fixed at a uniform 27.5% of the A quota .     Isoglucose produced
     above maximum quotas (A ■+• B ) must be exported to third countries at the
     producers' expense .    The production levy applying to B quota isoglucose
     is equal to that proportion of the total sugar production levy which is
     borne by the sugar manufacturer ( 40$ ).
3 . As regards imports of preferential sugar it should be recalled that
     Protocol No 3 remains operative for an indefinite period and cannot in
     any circumstances be annulled before 1 April 1982 .
THE PRESENT SITUATION
4 . The difficult situation today is largely the result of the shortage
     situation on the world and Community markets in 1973 / 74 and 1974 / 75 .
     During those two years Community production oscillated around nine
     million tonnes while demand , stimulated by the internal and external
     shortage situation , reached 10 . 4 mio tonnes in 1973 /74 . In those
     circumstances the Community decided to introduce import subsidies ( for
     1974 / 75 ) and measures to encourage production in 1975 /76 and in
     subsequent years ( EEC prices were increased by 15$ , A quotas by 16$ , B
     quotas to 45$ of A quotas , etc .).
5 . Following the introduction of these measures farmers increased their
     beet acreage by 19$ .    Nevertheless , sugar production in 1975 and 1976
     remained below 10 mio tonnes because of poor yields per hectare .     But
     from 1977 to 1979 a radically-changed world market situation led to a
     reduction in sowings in the surplus regions in France , Germany , Denmark
     and the Netherlands , because it was less profitable to grow beet for
     the production of sugar above maximum quotas ( i.e. C sugar ).    In other
     regions where the quota levels allowed it the increase in acreage
     continued .
( 1 ) Excluding an A quota of 7 426 tonnes for allocation to the D.Z.B.
     (Netherlands ) .
 ---pagebreak---                                        >3 -
     In 1977 /78, 1978 /79 and 1979 /80 , thanks to excellent yields , Community
     sugar production reached 11.5 , 11 . 8 and 12 . 3 mio tonnes respectively ,
     i.e. around 124$ of consumption .     On the basis of average yields , .
     production in 1980 /81 should reach 11.0 mio tonnes .
 6. At the end of 1974 it was estimated that future Community consunption
     would be around 10 . 4 mio tonnes , taking account of the previous trend ,
     and of the demand in 1973 /74 ( 10.4 mio tonnes )^ But effective
     oonsunption fell to 9.0 mio tonnes in 1976 /77 and today it has settled
     around 9.5 mio tonnes . Having regard to demographic changes and to
     trends in dietary habits there is little or no possibility of an '
     increase in the consunption of sugar as food . With a normal crop the ~
     surplus of Community production over oonsunption would now reach
      1.5 mio tonnes .  Moreover , if preferential imports from ACP and other
     countries ( 1.3 mio tonnes ) are taken into account the Canmunity will
     have 2.8 mio tonnes of sugar to export to the world market .          "
DEVELOPMENTS ON THE WORLD MARKET AND EXPENSES FALLING ON FEOGA
7. From 1975 /76 to 1978 /79 developments on the world market paralleled
    those in the EEC . In each year production exceeded consunption . Up to
    the end of 1976 these surplusses helped, to re-establish normal
    carry-over stocks i But in 1977 /78 and 1978 /79 the situation was
     significantly worsened by new surplusses which resulted in world stocks
    on 1 September 1979 of 30.7 mio tonnes (raw value ), a reoord level
    representing 34$ of world consunption compared with a normal level of
    around 25% .
                                                                         1       · '
8. In November 1974 world market prioes reached their higjiest-ever level ,
    well above Community prices; , twelve months later they were down to the
    Ccmminity level and they subsequently fell to about 30-40$ of Community
    prices .  The imbalance on the world market between off er and demand did
    not alia/ prioes to rise to the lower limit of the price range laid
    down in the ISA in 1977 ( 11 cents to 21 cents pa* pound for raw sugar ,
    f.o.b . Caribbean).' Up to August 1979 the actial prices fluctuated
    between 7 cents and 9 cents per pound . .
 ---pagebreak---                                         . 11 _
 9 . In 1979 / 80 , after four consecutive years of surplus , world consumption
     will exceed production by around 6 mio tonnes , mainly as a result of
     very poor crops in several important producer countries such as the
     USSR , Cuba , India and Thailand .   This development has led inevitably
     to a very strong increase in world market prices supported by
     speculation on the terminal markets which has continued since May 1980
     in the expectation of a further deficit situation in 1980 / 81 .   The new
     production is currently estimated at between 88 and 89 mio tonnes
     compared with a supposed consumption of around 92 mio tonnes .     Since
     last May the New York spot price has generally fluctuated between 30
     and 35 cents per lb .
10 . As early as the start of 1 980 the world price rise led to the
     suspension of ISA export quotas and immediately afterwards to the
     release to the world market of all the ISA special stocks which at
     that time amounted to about 2 mio tonnes .     These two measures had no
     significant effect on the evolution of prices .     Since then the ISA has
     been without any means of influencing the world market .     The
     reimposition of quotas can take place only when prices fall below
     16 cents / lb , a situation which is unlikely to occur in the short term .
11 . In the light of the situation reviewed above there is a good chance
     that in 1980 / 81 world market prices will remain at relatively high
     levels .   But in judging their evolution in the longer term it is worth
     remembering that since 1900 the world market has been characterized in
     eight years out of ten by surplus production and low prices .     Given
     that this pattern has been valid also for each decade since 1950 ,
     there is no reason to believe it will change .
 ---pagebreak--- OBJECTIVES TO BE PURSUED
12 . The sugar policy of the Community should :
       ( a ) orientate production to marketing possibilities and should cover
              the losses involved in the disposal of surplus Community
              production by financial contributions from the producers ;
       ( b ) ensure reasonable returns to beet and cane producers ;
        ( c ) allow for Community membership of the International Sugar
              Agreement ;
        ( d ) encourage compensatory adjustment between good and poor crops ;
        ( e ) take account of regional developments in beet and cane production
              in the context . of specialization ;
      '(f ) provide the conditions under which the obligations concerning the
              importation of preferential sugar can be respected .
MEASURES TO BE TAKEN
 13 . As the Commission pointed out irt its proposals of November 1979 ( 1 ),
       in principle a range of possible systems can be considered .      They fall
       into two categories depending on whether they influence production by
       way of prices or quotas .
       Systems in the first category are preferable but they would involve a
       substantial reduction in Community prices in order to control
       production , and they would consequently have serious effects on
       producers' incomes and on production in the less-favoured areas of the
       Community .    Nevertheless , the Commission wishes to draw particular
       attention to the element' of price in the sugar sector with a view to
       introducing subsequently a system similar to those in the first
       category .    Meanwhile it believes that it is necessary once more to
       propose a production system based on quotas for a limited period ,
       which it regards as a transitional system .     This approach is supported -
       by the fact that during the discussions of its proposals submitted at
       the end of 1$79 there was a large measure of agreement in favour of a
       quota regime and of the principle that the costs of disposing of
       surplus production should be wholly borne by the producers -. The only
      area of disagreement which finally remained was centred on the global
      volume of quotas and on the method of allocating it between
      undertakings . It is in the light of these reactions in particular
      that the Commission makes the proposals which follow .
( 1 ) c.f . Doc . 11337 /79 Agriorg 569 /Agrifin 307 , page 25 .
 ---pagebreak---                                        - 6 -
       It goes without saying that a quota system for sugar is inconceivable
       without a quota system being applied also to isoglucose .
 14 . The Commission emphasizes once more the transitional nature of the
       proposed system , the application of which would be strictly confined
       to a period covering at most the next five marketing years .   And
      considering the difficulties which have been encountered at all levels
      in trying to find a new method of allocating A quotas , the Commission
      now proposes that A quotas for sugar and isoglucose should be
      maintained at their present level .    At the same time the Commission
      stresses the importance it attaches to the provisions concerning the
      "masse de manoeuvre " ( see paragraph 19 ).
      The total of A quotas is 9 136 000 tonnes but the effective production
      of A sugar will probably not exceed 9 mio tonnes .
15 . In order to take account of regional developments in the production of
      beet and cane , B quotas for sugar must be based on effective
      production , provided that no B quota is less than 5% of the
      corresponding A quota .   It is therefore necessary to refer to the
      production of B sugar in each of the marketing year3 1975 / 76 to
      1979 / 80 ; and in order to exclude any production by undertakings which
      is liable to be contested it is necessary to base the B quota on the
      average of the three best campaigns .    The total of B quotas
      established in this way would be 2 098 000 tonnes , and the sum of A
      and B quotas would be 1 1 234 000 tonne3 compared with the current
      total of 11 648 000 tonnes .
      Nevertheless , in the light of the probability ( referred to in
      paragraph 11 ) that the historic pattern of world surpluses and
      shortages will continue to repeat itself it would be unrealistic to
      assume that the present situation in which world consumption exceeds
      production will continue throughout the five-year period to be covered
      by the new EEC Sugar regime .   It would therefore be appropriate to
      provide the means for revising the levels of B quotas for the last two
      campaigns of the period if such revision appears to be necessary as a
                                                                          «
      result of changes in the world supply /demand situation .
16 . Rather than change the status of C sugar , it seems appropriate to
      facilitate its carry forward ( to count as production within quotas in
      the following marketing year ) by discarding the quantitative limit and
      by granting storage reimbursement for the carried forward sugar .     It
      will also be necessary to impose on producers of C sugar the
      obligation to store that sugar to the extent which would be necessary
      if the Community joined the ISA .
 ---pagebreak---                                            *
                                          « 7 -
17 . A3 regards isoglucose it is proposed that , as in the sugar sector , A
       quotas should be maintained av/ their present levels ( totalling 1^5 <iU5
       tonnes dry matter ) .. To eacn A Quota vould be added a B quota equ?.l to
       23$ of the A quota provided , however , that no B quota would be less
       than ti ~ actual production of B quota isoglucose * during' the period 1
       July 1979 to 30 June 19C.0'. This percentage represents in the sugar
       sector the total of quotas compared with the total of A quotas e . The
       total of A and B isoglucose quotas would be 183 709 tonnes .
18 . The new regime must provide the measures necessary to ensure that all
       the losses incurred in the disposal of surplusses of Community quota
       production over consumption will be covered by contributions from the
       producers". If all such contributions were to fall solely on B
 - production then that production could lose its value , even for the
    - most efficient producers .      It therefore seems desirable to ensuree
       that the losses are distributed more equitably by requiring
                                                                         / • •
       contributions also from the combined A and B production .     This , in
       turn , requires a decision whether the production levy should be        \
       applied initially to the B production alone or initially to the
       combined A and B production .,
       With these considerations in mind the Commission proposes that the
       losses should in the first instance be shared by the combined A and B
       production by means of a basic production levy with a ceiling of 2.5$
       of the intervention price for white sugar , and that thereafter the
        losses exceeding the basic production levy should be covered by a levy
     . on B production with a much higher ceiling .     Any remaining losses not
       covered would be carried forward to the next marketing year .
19 . A system of production quota. a must necessarily take regional aspects
        into consideration and must be based on data specific to each producer
        concerned .  Hence it mu?t provide that quotas for each undertaking are
        fixed directly by the Community .          '                       ;
        As regards measures for the subsequent modification of quotas these
        will be the subject of a specific Council Regulation as was the case
        in 1967 and 197U .   This Regulation must provide for a "masse de
        manoeuvre"or margin -                   "        "      -
        This margin will consist of a quantity corresponding to ' 10% of the
        quotas initially allocated, to each undertaking which can be allocated
        to undertakings pro duel rig sugar or isoglucose in order to meet the
         needs of restructuring either of existing undertakings or of new ones .
 ---pagebreak---                                       - 8 -
     The Commission will ensure that this margin is used in an effective
     manner in order to achieve the objectives and the flexibility for
     which it is intended .
20 . Apart from the new provisions with regard to production quotas , a
     number of adjustments to other existing provisions are advisable or
     necessary .   In particular the Commission thinks that a more free
     interplay should be given to the market by abolishing the regionalized
     intervention prices presently fixed for the French overseas
     departments , Italy , the United Kingdom and Ireland , and also the
     target price .   The fixing of derived intervention prices superior to
     the basic intervention price is not necessary .     In any case , the
     prices obtained on the markets in deficit areas are higher than the
     basic intervention price having regard to transport costs .      In the
     circumstances of a managed market . in sugar the fixation of a target
     price between the intervention and threshold prices is no longer
     considered necessary in the sugar sector .    The use of the target price
     in fixing the level of protection at the frontier can easily be taken
     into account in the criteria used to establish the threshold price .
21 . The production of beet and sugar in Italy and that of cane and sugar
     in the French overseas departments , although benefitting for several
     years from national aids authorized by the Community , continues to
     experience certain difficulties , particularly in the application of
     modern techniques or for structural reasons .     These crops and their
     industries represent important elements in the economies of these
     regions .   Hence the Commission believes that it is right that Italy
     and France should be authorized to grant national adaptation aids to
     these sectors for a further and final period on condition that these
     aids a.r-3 phased out before the 1985 / 36 marketing year . The Commission
     therefore proposes that the maximum level of aid authorized for
     1980 / 81 is reduced by one-fifth in each subseouent year .
 ---pagebreak---                                                                 ro O «f*
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      isoxitieose -in<5 a3tim.vc.s3 or CAaaur.i-jy r«4 - i ^3
      anrisx'^'i -                                                                      -
    -
         ■ ,.            -< . 1 * {i •=".•
        n& { i r^nc a 3. A                 - *
                                               <- r,»>•».~; ic^ts
                                                            v~ -•-
                                                                         in future virtually the onj.y
  •                      wwtlteMa* ■> «*' a»rw > the c^unity budge* will.Sm ,
       UK* W«« m the ir*ort*ti« of . quantity of wg.r corresponding
       to preferential imports IT™ the SC?, Infiia and the OCT .
  23. Finally, "the Cormiseion draws attention to the fact that the new regime
        will require to be adapted to take account of the additional states ,
        notably Greece , to which the regiae , or parts of it , will apply*
 ---pagebreak---                                                                              ANNEX I
                                      TABLE 1 : Quantitative results of the proposed quota system for sugar
                                                                                                                                      ( 1000 tonnes white sugar )
                                                     «
                                                      i
                                                        : DK     ::   D       :: F /metr . :; F / F0D  ::   IRE ::   I       ::  NL   :: UEBL  ::     UK        ::     EEC
                                                   .  i»         <                                                                                                ►            '   •
                     A qt-ot     '' .                 ;    328   : 1 990           2 530          466       182     1 230        690      680        1 040             9 136 :
                     3 ov «./.*•                     :       90  :      547          696           128       50        338       190      187          286             2 512 :
    'i    1   ;k l-as <s % or A qwtas                i    27.5   : 27 .?           27.5         27.5       27.5      27.5       27.5     27.5        27.5              27.5        :
    '•    v-rrci'it A + B auotas                     s 418       s 2 537           3 226          594       232     1 568        880      867        1 326           11 648 :
                                                        i ______ «■     _____ *                                   >          «                   1 .         _ 4»                  t
                                                                                                                                                 »         -    «» – – – – – – – – «
    * . ? £X>pcáed A quotas                          :     328       1 990         2 530          466       182     1 230        690      680        1 040             9 136 :
    6 ., i* ropo-sed B quotas ( i)(2 )                ;      97         611          759            23        9        297       168       81            52            2 098 :
        . 2 o iotas as *. of A quotas                ? 29.5          30.7          30.0           5.0       5.0      24.2       24.3     11.9         5.0              23.0        :
          Pronose^ A + B quotas                       :    425       2 601         3 289          489       191     1 528        858      761        1 092           11 234 :
                                                                                                                                       1       4                  »                •
                                                                                                                                                                  > –– ––– –– –    •
    9 - ' Avfc;-c?se A -v ? production in the         :            »          <»           1»          1                                         1
                                                                                                                                                 »
                                                                                                                                                                <
                                                                                                                                                                <»                 C
          Z bfcsc years ( 2 )                         ::   425   :: 2 601 :: 3 289 !:             468  !:   186 :: 1 527 ::      858  ::  761  :; 1 043 :: 11 156 :
                                                                                                                                                                  k                •
                                                        t        <                           •         1                                         »              <»                 •
     •0       of which A sugar                       ;:    328   :: 1 990 :: 2 530 ::             365  i:   180 :: 1 222 :       690  ::  680  :: 1 004 ::             8 999 :
                                                      *            »          1»           «             »      «t           *1       <»       1»               <1                 •
                                                                                                                :!         8 ::                  :       36 i:
                                                        1        <»                          »         «»       «                      »       1
     Í1 . Proposed A quotas minus A sugar             ;:      0    :       0 ::         0 ::      .101 ::     2                     0 ::    0  :                           137 :
            p^cd^cei '3 ~ 10 )                        : »        1»            1»          1»
                                                                                             i
                                                                                                       »»
                                                                                                       t
                                                                                                                i»
                                                                                                                  »      *
                                                                                                                             <
                                                                                                                             1
                                                                                                                                       »
                                                                                                                                       »
                                                                                                                                               «►
                                                                                                                                                 h
                                                                                                                                                                1•
                                                                                                                                                              - 1»
                                                                                                                                                                                    •
                                                                                                                                                                                    •
( 1 ) Average production of B sugar in the best three of the marketing years 1975 /76 to 1979 / 80 )
(2       Total of the figures established for each undertaking involved
 ---pagebreak---                                                                                                                                 t
                                                                                                                            /
                                                                   ANNEX I
                               TABLE 2 : Quantitative results of the proposed quota system for isoglucose
                                                                                                                 ( in tonnes , dry matter )
                                             i
                                              :  DK    ::     D    ;:    F    ::   IRE ::     I       NL ( 1 )   ::   UEBL    :    UK   :   EEC   :
: 1 . Current A quotas                                      28 000    15 887               16 569      7 426        56 667      21 696    146 245 ;
: 2 . Current B quotas     (2)                               7 700      4 369               M 556      2 042        15 583        5 966    40 216 :
                                                            35 700    20 256               21   125    9 468        72 250      27 662    186 461 :
: 3 . Current A +■ B quotas
                                                          . 28 000     15 887              16 569      7 426        56 667      21 696    145 245
: 4 . Proposed A quotas
: 5 . Proposed B quotas ( 3 )                                6 440      4 135               3 811      1 708         15 583       5 787    37 464
: 6 . Proposed A + 8 quotas                                 34 440    20 022               20 380      9 134        72 250      27 483    183 709
                                                                                                    i          M «
                                                                               » –     t
: 7 . A + B production in 1979 / 80          :          : 32 174   :: 20 022 :           : 12 467 ::     .( 4 ) :: 72 255 :: 27 483 ::    164 401 :
( 1 ) Taking account of Article 9(5 ) of Regulation ( EEC ) No 1111 /77 .
( 2 ) 27-5 % of A quotas .
( 3 ) 23.0 % of A quotas (= EEC average for the proposed B quota for sugar ).
( 4 ) Production recommenced at end June 1980 .
                                                                      ?
 ---pagebreak---                                                 - 12 -
                                              ANNEX I
                                                                                       i
              TABLE 3 : Calculation of the expenditure and receipts for sugar
                                    and isoglucose in 1981 /82
                                                      Quantities in 1 000 t white sugar
                                                      Quantities in 1 000 t dry matter
                                                                               iso glucose
A. Expenditure and receipts arising from exports of surplus Community sugar
    production
I. Quantitative data :
                                                      Sugar                          Isoglucose
 1 . Total of A quotas                                   9 136                              146
 2 . Total of B quotas                                   2 098                               37
 3.  Total A production                                  9 036                              146
 4.  Total B production                                  2 079                               37
 5.  Total A + B production                            11 115                               183
 6.  Community consunption                               9 500                             183
 7 . Surplus A + B production ( 5 .- 6 .)                           1 615
II . Export refunds :
 8 . Hypotheses ( ECU / ql )                           :   30.00   :   20.00         :    10.00
 9 . Total refunds ( 7 . x 8 .) -          MECU        : 484.5      : 323.0          : 161.5
10 . Amount of the basic production levy :
     a ) Sugar : (max.2 . 5Í interv.price ) Ecu/ ql         1.08   :     1.08^              1.08
     b ) Isoglucose : (max.=(10.a xO . 4 )) Ecu/ ql         0 . 48 :    0.43               0.43
11 . Receipts from the basic production levy :
     a ) Sugar ( 5.x10.a )      -          MECU           120.0    :  120.0              120.0
     b ) Isoglucose ( 5-x10a .)            MECU             0.8    :    0.8                0.8
                                  TOTAL   ME OJ           352.3    : 311.2              155.6
12 . Refunds not covered by
     levies ( 9.-11 .)                       MECU         363.7    : 202.2                40.7
13 . Amount of B levy :
     a ) Sugar : (max.37.5£ intervention
         pri ce )                          Ecu/ ql         16.23   :    9.66               1.94
     b ) Isoglucose (max = ( 13.a x0.4 )) Ecu/ ql           6.49   :    3.87               0.78
14 . Receipts from B levy :
     a ) Sugar ( 4.x13.a )                 MECU           337.4    : 200.8                40.4
     b ) Isoglucose ( 4.x13.b )            MECU             2.2    :    1.4    .           0.3
                                  TOTAL   MECU            339.6    : 202.2               40.7
15 . Refunds remaining uncovered by
     levies ( 12.-14 .) carried forward to
      1982 /83 pursuant to the                             23.8    :    0
     second subparagraph of Article 28(2 )
 ---pagebreak--- τ
                                         - 13 -
                                        ANNEX I
                                  TABLE 3 ( continued )
                                                                  i
B. Expenditure arising from the exportation of a quantity corresponding to
    preferential imports
    1 . Preferential imports (1 000 t white value ) 1 289
    2 . Export refunds , ECU/ ql              30.00      20.00         10,00
    3 . Total refuids , ( 1.x2. ) MECU       386.7      257.8         128.9
 C. Expenditure and receipts linked to the intervention function (in MECU )
    1 . Storage reimbursements :
        - A + B beet sugar , 10 745 X 6.05 months x 4 . 6 ECU/ t      299.0
        - C sugar ( Art.26(1 ), third subparagraph )                   p.m .
    2 . Storage levy :
        ( 299.0 - 10 745 = 27 . 83 ECU / t x 10 745 )                  299.0
    3 . Transport aids to the FOD
        ( 300 000 x ( 10.7 + 28.2 ECU ))                            '    11.7
    4 . Production refund fbr chemical industry
        ( 100 000 x 34 . 46 ECU/ t )                            •        3.4
    5 . Denaturing premium                                             p.m .
 ---pagebreak---                                         - m -
Comments                 '
a) Expenditure
   Despite the reduction in the total of A and B quotas , a better allocation
   of B quotas will lead to a better use of them .        This , in turn , will lead
   to a slight increase in the production of B sugar and thus in the
   quantities to be exported .    So , over 12 months , there would be an increase
   in the foreseeable expenditure on refunds of about 27 MEUA .
   On the other hand , there would be a reduction in expenditure linked to
'  intervention over 12 months of about 16 MEUA mainly because of a reduction
   in storage reimbursements as a result of excluding cane sugar ( ACP and
   FOD ) from these reimbursements .
   It is not at present possible to calculate the expenditure which would be
                             »
   incurred by Community membership of the International Sugar Agreement .
   In all , expenditure over 12 months would increase by about 11 MEUA .
b) Receipts
   The new regime would lead to a foreseeable increase in production levies
   of about 70 MEUA since the cost of disposing of surplusses will be covered
   by producers' contributions , any balance being carried forward to the next
   marketing year .
   The storage levies ,, however , will., fall by about 16 MEUA over 12 months
                       s
   corresponding to the reduction in storage expenditure .
   The increase in levies' in the course of a marketing year would therefore
   be about 51* MEUA .
c) Overall , the new system would lead to a net saving of about 43 MEUA over
    12 months .   -                                     '                     '
   Taking levies into account , the total expenditure in a marketing year
    would be of the order of 285 MEUA almost all of which would - represent the
    cost of the refunds necessary to export a quantity equal to imports of
    preferential sugar .
    The annexed table gives details of the calculations based on the current
    and proposed systems .
 ---pagebreak---                                                                              , - 15 -
                                                                            ANNEX II
                                                                                                                     ( in MEUA >
                                                                          Proposal by        . '  : Status-quo               ; Difference                          :
                                                    '             •   the Commission              :
                                       ___  __ __ ______ •                                                                                                –––– *
                                                                  •
:                             .  a                             •. •                        b      :              c           :       d = b - c                     :
.                 '                                               •
•
•
              •
              •
                    Refunds                             a)        :           330 ( 1 ) .         :        271.8 ( 6 ) "      :           + 27                     :
•
•
              •
              •
                                                        b)        :         - 266 ( 2 )           :        266      (2 )      :                               *  . •
•             •                                                   •1 –                         –  •i                          «
•             •
•
•
            - •
              •
                     Total Refunds                                :            596               •:        569                :           + 27                     :
•              «                                                                                    I             _           4
                                                                                                                                 »                     –        –– •
r              •
              :;     Intervention                                  :                                                             i                                 •
 :                                                                                                                               •                          .       •
 •
 •
               4
               • i Denaturing                                      !:          p. m .               >           paDl *           »
                                                                                                                                 I
                                                                                                                                             ^                     •
                                                                                                                                                                   •
 •             i
                 : Chemical Industry .                               :              <4 ( 3 )        :         4 (3 )             »
                                                                                                                                 »
                                                                                                                                                  -•                •
                                                                                                                                                                    •
 •
 •
               4
               * : Storage reimbursement                                                            •
                                                                                                    m
                                                                                                                               I»
                                                                                                                               i*
                                                                                                                                   • •                              •
                                                                                                                                                                    •
 :     EX - ::       - EEC                                           :         308 ( 4 )            :      301 ( 7 )             :        +     7                   :
 : PEN - ::          - ACP and FOD                                   •
                                                                     •
                                                                                        _
                                                                                        –           :        23 ( 8 )                     - 23                      :
  :    DI - ::       Public stocks                                   :                   3          :         3                  •
                                                                                                                                 •
                                                                                                                                   '         __
                                                                                                                                             –
                                                                                                                                                                    •
                                                                                                                                                                    •
  : TURE        ::   FOD sugar :                                                                    •    '
                                                                                                                                 •
                                                                                                                                 l
                                                                                                                                        :                           •
                                                                                                                                                                    •
                 :   - differential amount                           «
                                                                     •            •
                                                                                         _
                                                                                                     :        7 (9 )             :        -     7                   :
                 : - refining subsidy                                •'
                                                                     ■
                                                                                      '    .         :        5 (9 )             •        *     j                   •
                 : - transport subsidy                               :              12 ( 5 )        •         _
                                                                                                                                 •        + 12             ' ' . :
  «               •                                 »                                                •                •   ;      •                                  •
                                                                     • – – ––– ––––– – ––– – –                                   •          –––––––––– »
                  : Total Interventions                               :          327                 :      343                  :        - 16                      :
                  •                             . .      . . _       •              _                                            •                   ;              •
                  • ––––––––––––––––––––––––––                       • ––––– – – – ––––– –––– • –––––––––––––––– •                     ––––––––––––– t
                 : GRAND TOTAL                                       :           923                :      912                   :        + 11                  ,   :
   •              •                                                                                                              •                 ■                •
                  • – – ––––––––––––––––––––––––– • ––––––––––––––––– • –––––––––––––––– •                                                               –.– –      #
                  : Production levies                                :           330                 :     260 ( 10 )            :        + 70              "       :
  :    RE­ : Storage levies               :                          «                              «  -
                                                                                                                                 •
                                                                                                                                 •
                                                                                                                                                                    •
                                                                                                                                                                   ••
  : CEIPTS : - EEC                                                   :      , 308                   :      301 ( 8 )             :+ 7 )_ i6                         :
                  : - ACP and FOD                                    •
                                                                     •         ■
                                                                                        .
                                                                                                    :        23                  :-23 )                             :
                  •     _ .             ...           .      ...     •  ■                           •                           <■                                  •
                 •                –                                                                                              ■ –––––––– – – – – – – s
                 :   TOTAL                                           :         638                  :      584                 ::         + 54                      :
  ( 1 ) surplus A + B productioh : 1.615 mio t x 200 Ecu / t . x 1.022
  ( 2 ) exportation of quantities corresponding to preferential . imports :
         1 .3 mio t x 200 Ecu / /            x 1 . 022 .
  ( 3 ) 100.000 x 34.46 Ecu /t x 1.048 .
  ( 4 ) 10.745 mio't t x 6.05 months x 4.6 Ecu / t /month x 1.028 .
  (5 )  0.3 mio t x 38.90 Ecu / t x 1.000 .
  (6 )  surplus A + B production : 1.481 mio t x 200 Ecu / t . x 1,022 /
  (7 )   10.611 mio , t x 6 months x 4.6 Ecu / t /month x 1.028 .
  (8 )  ACP : 1.3 mio t x 2 months x 4.6 Ecu /t /month x 1.028 .
        FOD : 0,370 mio t x 6 months x 4.6 Ecu /t /month x 1.028 .
  ( 9 ) differential amount : 0.3 mio t x 22.5 Ecu / t x 1.000 . -
        refining subsidy : 0.3 mio t x 15 Ecu /T x 1.000 .
  ( 10 ) levies sugar : 1.945 mió tx 129.8 Ecu /t x 1.022 .
                            isoglucose : 40.216 t x 40Ï x 129.8 Ecu /t x 1.022 .
 ---pagebreak---                        FINANCIAL                       STATEMENT
M–W––«■HIJMMUMIW H. II
 1 . BUDGET HEADING :
                                       Chapter 64 – Expenditure                               APPROBIATIONS     w   w • j
                                       Chapter 11 - Receipts                                                ' 504.9 MSUA
 2. TITLE : Proposed Council Regulation on the common organisation of the market
                     in sugars
 3 . LEGAL BASIS :                     Art . 43 of the Treaty-
 4 . AIMS OF PROJECT :
                                       Definition of the future policy for sugar and isoglucose
                                       with effect from 1 July 1981
 5 . FINANCIAL IMPLICATIONS                                 PERIOD OF 12 MONTHS CURRENT FINANCIAL YEAR  FOLLOWING FINANCIAL YEAR
                                                                                       c  1980 )              < 1 981        )
 5.0 EXPENDITURE
          - CHARGED TO THE EC BUDGET
              ( REFUNDS /XKEGWOIKEOJLSFFX                            + 27         ( existing                  P.M. (1 )
          ~ interventions                                            - 16           régime )
          " 0THER                     Total                          + 11
 5.1 RECEIPTS
          - OWN RESOURCES OF THE EC FTOD*LE'Yy.                      + 70
              storage levy                                           - 16
                                        Total                       + 54
                                                                 1982             ..1983
 5.0.1 ESTIMATED EXPENDITURE
                                                                    + 11          + 11
 5.1.1 ESTIMATED RECEIPTS                                           + 54           + 54
 5.2 METHOD OF CALCULATION
           - see the attached comments and table
           - the calculations are "based on the assumption of average quantities and world
                prices over the 5-year period . Thus they differ from those used for the
                appropriations in I98O and 1981 mainly because of the current conjunctural
                situation
                                                                                                               ERBBBRrrBHDSB-CCBHSBBa
  6.0 CAN THE PROJECT BE FINANCED FROM APPROBATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?
                                                                                                                                    YESOHS
                                                                                                                                    TCC / M0
  *•1 " T 1 ■         an 1 in >1 it iim  nnftrrT a£ ucrtcciov  o
                                                                                                                                      LJI IIU
   6.3 WILL FUTURE BUOGET APPROBATIONS BE NECESSARY ?
                                                                                                                                    YES / IAAU
    OBSERVATIONS :
                                   (l ) taking account of the fact that ths crop is harvested in the
                                          autumn , the effect of the new regime on 1981 will "be slight
 ---pagebreak---                       16 -
               Proposal for a
          COUNCIL REGULATION ( EEC )
on the ^ common organization of the market
                  in sugar     ■
 ---pagebreak---                 PROPOSAL FOR A COUNCIL REGULATION ( EEC )
             on the common organization of the market in sugar
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 42 and 43 thereof .
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament ,
Having regard to the opinion of the Economic and Social Committee ,
                                                                      (
Whereas the basic provisions concerning the common organization of the
markets in sugar and isoglucose have been amended many ti|nes since their
adoption; whereas these provisions must again be thoroughly amended to
take account , in particular , of the forthcoming expiry of the quota
provisions for sugar and isoglucose; whereas, therefore, it is essential
to redraft the basic provisions concerning these two sectors;
Whereas the operation and development of the common market in agricultural
products must be accompanied by the establishment of a common agricultural
policy to include, in particular , a common organization of the agricultural
markets which may take various forms depending on the product concerned ;
whereas isoglucose is a direct substitute for liquid sugar obtained from
sugar beet or sugar cane; whereas, therefore, the markets in sugar and
isoglucose are dlosely linked; whereas the situation in the Community in
respect of sweeteners is characterized by structural surplusses and any
Community decision relating to one of these products inevitably has
repercussions on the other ; whereas it is therefore appropriate to have a
common organization of the sugar and isoglucose secto'rs which, nevertheless
takes account of production features specific to one or the other sector ;
 ---pagebreak---                                     - 18
Whereas, to ensure that the necessary guarantees in respect of employment
and standards of living are maintained for Community growers of sugar beet
and sugar cane, provision should be made for measures to stabilize the
market in sugar and for th.is purpose an intervention price for white sugar/
and an intervention price for raw sugar, should be fixed annually; whereas
the above objective could be attained by providing for buying-in by the
intervention agencies at intervention prices; whereas, moreover , a
compensation system for storage costs for sugar produced from beet of
Community origin could serve the same purpose; whereas these price
guarantees given for sugar also benefit sugar syrups and isoglucose syrups,
the prices of which are based on those of sugar ; whereas the basic
products from which isoglucose is produced already benefit from price .
guarantees and intervention arrangements in the framework of the common
organization of the market in cereals;
                                                                  • - •/
Whereas it is necessary that these regulatory measures should provide
guarantees which are fair both to manufacturers and to producers of the
basic product ; whereas it is therefore appropriate to fix a basic price
for beet to serve as a point of reference, and in addition a minimum price
for A beet intended for processing into A sugar and a minimum price for B
beet intended for processing into B sugar which manufacturers shall be
obliged to pay when purchasing beet ; whereas in respect of the rules of
competition it is also appropriate to provide Community outline provisions
governing the contractual relations between buyers and sellers of beet , and
to adopt similar provisions in respect of sugar cane ;
Whereas the creation of Community markets for sugar and isoglucose involves
the introduction of a common trading system at the external frontiers of
the Community; whereas a trading system including import leyies and export
refunds serves to stabilize the Community market in preventing , in
particular , price fluctuations on the wo**ld market from affecting prices
 ---pagebreak--- for these two products ruling within the Community ;   whereas , therefore,
provision should be made for the charging of a levy on imports from third ,
countries and for the payment of a refund on exports to such countries
which as regards sugar would, in either case, cover the difference between
prices ruling inside and outside the Community when world" market prices are
lower than the Community prices and as regards isoglucose would ensure a
certain measure of protection for the Community industry which processes
this product ;
Whereas , in addition to the above system and to the extent necessary for
its proper working , provision should be made for regulating or , when the
situation on the market so requires , prohibiting the use of inward
processing arrangements;
Whereas , in the event of a shortage on the world market pushing up world
market prices to a level higher than that of the Community prices , or in
the event of difficulties in the normal supplies to the Community as a
whole or to one of its regions, appropriate provisions should be laid down
in order to avoid in good time a situation where regional surplusses are
exported to third countries while an abnormal rise in Community prices
makes it impossible to continue to guarantee supplies to consumers at
reasonable prices;   whereas, moreover , provisions should be laid down with
a view to introducing i system whereby each manufacturer must hold a
minimum stock, which is one of the most effective ways to achieve these .
objectives;      ,
Whereas , in order to help guarantee supplies to the Community as a whole or
to one of its regions , it seems advisable to lay down provisions to adopt ,
on certain conditions, appropriate intervention measures ;
Whereas it must be made possible for the competent authorities to keep a
constant watch on movements in trade with third countries in order to
enable them to assess trends thereof and , where appropriate , to apply such
measures provided for in this Regulation as may prove necessary;     whereas ,
 ---pagebreak---                       n        -,
                                    - 20 -                   '               ;
to this end , provision should be made for a system of import and export
                                                                              i
Licences the issue of which is conditional upon the lodging of a deposit as '
a guarantee that the operation for which the licence is being requested       !
will be carried out ;
Whereas the levy system makes it possible to dispense with all other
protective measures at the external frontiers of the Community; whereas,
however , the common prices and levy machinery may in exceptional circumstances
prove defective; whereas in such cases, so as not to leave the Community
market without defence against disturbances which may arise therefrom after
the import barriers which existed previously have been removed , the
Community should be enabled swiftly to take all necessary measures ;
Whereas the reasons which up to now hSve led the Community to retain a
production quota system for sugar and isoglucose remain valid; whereas,
however , changes should be made in that system to take account of recent
developments in production and to provide the Community with the instruments
necessary to ensure, in a' fair yet efficient way, that the producers
themselves meet in full the cost of disposing of the surplusses of
Community production over consumption; whereas, however , such a system
should apply for a limited period only and should be regarded as transitional ;
   s.     '     .          .                        '
Whereas the other basic provisions relating to price and marketing
guarantees differentiated on the basis of quotas, the provisions in respect
of delivery contracts for beet and the rules of the carry-forward system
should be reviewed ;                            *                         •
Whereas provisions should be made for the obligatory storage of the whole
or part of the sugar produced outside the A and B quotas for the period
necessary to fulfil obligations which would be placed on the Community if
it joined the International Sugar Agreement ; .
 ---pagebreak---                                        - 21 -
Whereas in order to increase the outlets for sugar and isoglucose on the
Community 's internal market provision should be made to allow , on
conditions to be laid down, for all sugar and isoglucose intended for the
manufacture of products other than food products to be regarded as having
been produced outside the quota system ;
Whereas Protocol     No . 3 on ACP sugar annexed to the ACP-EEC Convention of
Lome signed on 28 February 1975 provides for a system of preferential
imports of cane sugar into the Community;      whereas Council Decision
75 / 614/ EEC ^  as amended by Decision
 <1 )   OJ No L 268, 17.10.1975 , p. 43
 ---pagebreak---                  (1 )
 75 / 61 5 / EEC      , extended the said system to imports of cane sugar           "j
originating in the overseas countries and territories ;        whereas the           ;
Agreement between the European Economic Community and the Republic of India
                 (2)
on cane sugar         , established a similar system for certain quantities of        •
cane sugar originating in that country;                                     ■ .
                                          '           . - ' ■         •• •            '
Whereas , pursuant to Article 1 of the said Protocol , to Article 1 of
 Decision 75 / 614/ EEC ,       and to Article 1 of the Agreement with India , the .?
implementation of these systems of preferential imports must be carried out ;
within the framework of the common organization of the market in sugar ;                '
Whereas the preferential nature of these systems requires that the import             "
levies provided for in the framework of the common organization of the .                •
market in sugar should not apply to imports made under these systems;
  Whereas it is necessary to create the means for ensuring that raw cane
sugar imported under the said preferential systems can be refined under the
most equitable conditions of competition;                                                '
Whereas the Common organization of the market in sugar must take appropriate
account of the objectives set out in Article 39 and 110 of the Treaty;
Whereas in order to facilitate implementation of the provisions of this             ^
Regulation, a procedure should be provided for establishing close
co-operation between Member States arid the Commission within a Management
Committee for Sugar ,
Whereas the establishment of a Community market in sugar in
question would be jeopardized by the granting of certain aids ;            whereas,
therefore, the provisions of the Treaty which allow the assessment of aids
granted by the Member States and the prohibition of those which are
incompatible with the common market should be made to apply to sugars ;
whereas , however , the production of beet and sugar in Italy and that of
cane and sugar in the French overseas departments continue to experience
difficulties, particularly in the application of modern production
techniques or for structural reasons;         whereas these crops and their
 (1 )   0J No L 268, 17.10.1975 , p.45
 (?)     0J No l 190, 23 . 7.1975 , n.36 ' ,
 ---pagebreak---                                          - 23
associated manufacturing industries are important for these regions and
even essential as regards the economy of the French overseas departments ;
whereas it is therefore appropriate to authorise the Member States
concerned, for a final period , to grant national aids to these sectors on
certain conditions and on a decreasing scale which reduces to zero for the
last marketing year covered by this Regulation;
    f
Whereas the transition to the system established by this Regulation must be
effected as smoothly as possible;        whereas, to this end , certain transitional
measures may prove necessary and the same need may arise at each change­
over from one marketing year to the next ;       whereas , therefore, provision
should be made for the possibility of adopting appropriate measures ;
Whereas Community membership of the International Sugar Agreement might
require special measures to allow the obligations arising therefrom to be
fulfilled ;  whereas for this purpose provision should be made for the
necessary measures to be adopted within the framework of this Regulation;
Whereas , pursuant to Articles 2 and 3 of Council Regulation ( EEC ) No 729/ 70
of 21 April 1970 on the financing of the common agricultural policy ^*, as «
                                                (2)
last amended by Regulation ( EEC ) No 929/ 79       , the expenses incurred by the
Member States in meeting obligations arising from the application of this .
Regulation devolve upon the Community;
Whereas Council Regulation ( EEC ) No 3330 / 74 of 19 December 1974 on the
common organization of the market in sugar            as last amended by
                                (4)
Regulation ( EEC ) No 1396 / 78     , and Council Regulation ( EEC ) No 1111 / 77 of
17 May 1977 laying down common provisions for isoglucose ^, as last
amended by Regulation (EEC) No 1293/79 *^, should be repealed,
(1)   0J No L 84, 28 . 4.1970 , p. 12
(2 )  OJ No L 117, 12 . 5.1979, p. 1
( 3)  OJ No L 359, 31.12.1974, p. 1
(4)   OJ No L 170, 27. 6.1978, p. 1
(5 )  OJ No L 134, 28. 5.1977, p. 4
 (6 ) OJ No L 162, 30 . 6.1979, p. 10
 ---pagebreak---                                                         - 24 -
HAS ADOPTED THIS REGULATION :
                                                       Article 1                                   1
1 . The common organization of the markets in the sugars sector established
                                                                                           t
       by this Regulation shall cover the following products :
: CCT Heading No :                                                  Description                        :
•  _            . _               •                                            '                     ;
                                    – –– – – – –   –– –         – –  –    –                  ■>–       • -
:    ( a ) 17.01                       Beet sugar and cane sugar in solid form                         :
                                  •                                                  ___         .     •
                                    –- – –" – –                      – –         –   –   –             •
: ( b ) 12.0*1                         Sugar beet , whole or sliced , fresh , dried or powdered ; :
                                       sugar cane                                                      :
                                                          . » '         '
                             _    •
•         ^
: ( c ) 17.03                          Molasses                              -     ,                   :
•                            ____ •
: ( d ) 17.02                          Other sugars in solid form ( but not including lactose , :
              C , D II       »    •    glucose , maltodextrine or isoglucose ); sugar syrups           :
              E and F II          :    not containing added flavouring or colouring matter'            :
                                       ( and not containing lactose , glucose , maltodextrine or :
                                  *    isoglucose ); artificial honey , whether or not mixed -          :
                                       with natural honey ; caramel                                     :
              21 . 07 F IV :           Flavoured or coloured sugar syrups ( other than lactose ,:
                                       glucose , maltodextrine and isoglucose syrups )                  :
                                  «
: ( e ) 23.03               Β I   :    Beet pulp , cane bagasse and other by-products of sugar :
                                       manufacture                                                     :
•
: ( f ) 17.02               D I   :    Isoglucose   "1                                                 :
■           •       MM» W ■
: ( g ) 21.07               F III :    Flavoured or coloured isoglucose syrups                         :
 ---pagebreak--- ν*·*"
                                               - 25 -
      2. For the purposes of thirs Regulation :
           ( a ) 'white sugars' means sugars not flavoured or coloured and
                 containing , in the dry state , 99 . 5% or more by weight of sucrose as
                 determined by the polarimetric method ;
           ( b ) 'raw sugars' means sugars not flavoured or coloured and containing ,
                 in the dry state , less than 99 . 5% by weight of sucrose as
                 determined by the polarimetric method ;
           ( c ) 'isoglucose * means the syrup which is obtained from glucose syrups
                 and has a content by weight , in the dry state , of at least 10?
                 fructose , and contains oli gas acchar ides and polysaccharides .   >
                                             Article 2
      The marteting year for all the products listed in Article 1 shall begin on
      1 July and shall expire on 30 June of the following year .            ~ ■
                                           TITLE I                           -
                                            Prices
                                             Article 3
       1 . An intervention price for white sugar and an intervention price for raw
           sugar shall be fixed each year .
           The intervention price for raw sugar shall be based on the intervention
           price for white sugar taking acoount,of fixed values representing the
           processing margin and the , yield .
      2. The intervention prioes referred to in paragraph 1 shall, apply to
           uipacked sugar , ex-factory , loaded on to a means of transport chosen by
           the purchaser .
           They shall be valid for white sugar and for raw sugar of a specified
           standard quality . •'
 ---pagebreak---                                         - 26 -
 3. The intervention price for white sugar shall be fixed each year , before
       the start of the marketing year in question , in accordance with the
       procedure laid down in Article 43(2 ) of the Treaty .
      In accordance with the same procedure the Council shall specify the
       standard quality for which this price is valid .
 *4 . The Council , acting ty a qualified majority on a proposal from the
      Commission , shall fix each year , before the start of the marketing year
       in question , the intervention price for raw sugar .
      In accordance with the sane procedure the Council shall specify the
      standard quality for which this prioe is valid .
                                      Article
1 . A basic price for beet' shall be fixed each year .      It shall be valid for
      a specified delivery stage and a specified standard quality .
2 . The basic price for beet referred to in paragraph 1 shall be fixed
      taking account of the intervention price for white sugar and of fixed
      values representing:
      - the processing margin ,
      - the yield ,
      - uldertakings , receipts from sales of molasses ,
      - where appropriate , the costs incurred in delivering beet to
         undertakings .
 3. The basic price for beet shall be fixed in accordance with the
       procedure laid down in Article 43(2 ) of the Treaty at the same time as
      the intervention prioe for white sugar .
      In accordance with the same procedure the Council shall specify the
       delirery stage and the standard quality for beet .
 ---pagebreak---                                      - 27 -
                                    Article 5
1 . There shall be fixed each year before the start of the marketing year
    in question a minimum price for A beet and a minimum price for B beet .
    These prices shall be valid for the same delivery stage and standard
    quality as specified for the basic price for beet .
2 . The minimum price- for A beet shall be equal to 91.5% of the basic price
    for beet .
    The minimum price for B beet shall be equal to 6055 of the basic price
    for beet .
3 . For the purposes of this Regulation A beet and B beet mean all beet
    processed into A sugar and B sugar respectively , as defined in
    Article 21 .
4 . The Council , acting by a qualified majority on a proposal from the
    Commission , shall fix the minimum prices for beet .
                                    Article 6
1 . Subject to Article 32 and the provisions adopted pursuant to
    Article 27 , sugar manufacturers buying beet :
    ( a ) suitable for processing into sugar , and
    ( b ) intended for processing into sugar ,
    shall be required to pay at least a minimum price adjusted by price
    increases or reductions to allow for differences from the standard
    quality .
2 . The minimum price referred to in paragraph 1 shall correspond to :
    ( a ) the minimum price for A beet , in the case of beet to be processed
          into A sugar ;
    ( b ) the minimum price for B beet , in the case of beet to be processed
          into B sugar .
 ---pagebreak---                                       _ 28  _
3 . Detailed rules for the application of this Article and the price
    increases and reductions shall be adopted in accordance with the
    procedure laid down in Article 41 .
                                    Article 7
1 . Agreements within the trade , and contracts concluded between buyers and
    sellers of beet , must conform to outline provisions to be determined ,
    in particular as regards the conditions governing the purchase ,
    delivery and acceptance of beet     and the payment for beet .
2 . The conditions for - purchasing sugar cane shall be governed by
    agreements within the trade between sugar cane producers and sugar
    manufacturers .
3 . The Council , acting by a qualified majority on a proposal from the
    Commission , shall adopt general rules for the application of this
    Article and , to the extent necessary , the procedures and provisions to
    be followed where neither agreements within the trade , nor contracts
    referred to in Article 30 , exist .
4 . If necessary , detailed rules for the application of this Article shall
    be adopted in accordance with the procedure laid down in Article Ul .
                                    Article 8
1 . Storage costs in respect of :
    - white sugar ,
    - raw sugar ,
    - syrups obtained prior to the crystallizing stage ,
    manufactured from beet harvested in the Community shall be reimbursed
    at a flat rate by the Member States .
    The reimbursement for other syrups manufactured from beet harvested in
    the Community may be provided for .
 ---pagebreak---                                          - 29 -
                                               "                       .7
       The Member States shall charge a levy on each manufacturer of the
       sugars or syrups eligible for the reimbursement of storage costs .
       The amount of the reimbursement shall be the same for the whole
    " Community ,   The same rule shall apply to the levy .
  2 . Paragraph 1 shall not apply to flavoured or coloured sugars falling
       within heading No 17.01 or to "flavoured or coloured syrups falling
       within subheading 21.07 F IV of the Common Customs Tariff .
- 3 . The amount of the reimbursement shall be fixed each year in accordance
       with the procedure laid down in Article 43(2 ) of the Treaty at the same
       time as the' intervention price for white sugar .
  4 . The Council , acting by a qualified majority on a proposal from the
       Commission , shall adopt general rules for the applicatipn of this
       Article .
  5 . The amount of the levy shall be fixed annually according to the
                                                                     -V
       procedure laid down in Article Hi .    Other detailed rules for the
       application of this Article and , where appropriate , for granting the
        reimbursement in respect of the syrups referred to in the second
       subparagraph of paragraph 1 and the determination of the syrups to
       which such reimbursement shall apply , shall be adopted according to the
       same procedure .
                                      Article 9
   1 . Throughout the marketing year intervention' agencies designated "by
       sugar-producing Member States shall be required , on conditions to be
       determined in accordance with paragraphs 5 and 6 , to buy in any white
       and raw sugar offered to them which has been manufactured from beet and
       cane harvested in the Community in so far as there exist prior storage
       contracts between the offerors and the said agencies for the sugar in
       question .
        If the quality of the sugar differs from the standard quality for which
        the intervention price was fix e<V then this price shall be adjusted by
       means of increases or reductions .
                                                          < , \ ■         -   -
             \                    '              .
                       I                                          <■        -
 ---pagebreak---                                        - 30 -
2 . It may be decided to grant premiums for sugar in free circulation in
     the Community which is rendered unfit for human consumption .
3 . It may be decided to grant production refunds on the products listed in
     Article 1(1 )( a ) and on the syrups listed in Article 1(1)(d ) and ( f )
     which are in free circulation in the Community and which are used in
     the manufacture of certain products of the chemical industry .
4 . Appropriate measures shall be taken in order to permit the sugars
     produced in the French overseas departments to be marketed in the
     European regions of the Community .       .
5 . The Council , acting by a qualified majority on a proposal from the
     Commission , shall determine the general rules for the application of
     the preceding paragraphs and the products of the chemical industry
     referred to in paragraph 3 .
6 . Detailed rules for the application of this Article shall be adopted in
      accordance with the procedure laid down in Article 41 and shall deal in
     particular with :
     - the minimum quality and quantity requirements on intervention ,
     - the price increases and reductions applicable on intervention ,
      - the procedures and conditions for taking-over by intervention
        agencies ,       *
     - the conditions for granting denaturing premiums and the amounts of
        such premiums ,
     - the conditions for granting production refunds and the amounts of
        such refunds .
                                     Article 10
 1 . In order to help guarantee supplies to the Community a3 a whole or to
     one of its regions the Council , acting by a qualified majority on a
     proposal from the Commission , shall determine the conditions on which
      special intervention measures may be taken where Article 18 is applied .
                                \
 ---pagebreak---                                         - 31 -
    Such measures shall not , however , result in Community sugar
    manufacturers being obliged to sell sugar to intervention agencies .
                                                                       v
2 . The nature and application of such intervention measures shall be
    decided upon in accordance with the procedure laid down in Article 41 .
                                      Article 1 1
1 . The price at which intervention agencies may sell sugar shall be higher
     than the intervention price .        ,
     It may be decided , however , that intervention agencies may sell sugar
     at a price equal to or less than the intervention price if the sugar is
      intended :
      - for animal feeding ,
                                                                          /
         or                       ■-
      - for export , either in the natural state or after processing into the
         products listed in Annex II to the Treaty or into the products listed
         in Annex I to this Regulation .                           ,
 2 . The Council , acting by a qualified majority on a proposal from the
      Commission , shall adopt general rules for the sale of products which
      have been the subject of intervention measures .  '
 3 . Detailed rules for the application of this Article shall be adopted in
      accordance with the procedure laid down in Article m .
                                     - Article 12                    .
 1 . In order to ensure normal supplies to the Community as a whole or to
      one of its regions there shall be a standing obligation to maintain
     minimum stocks of the products to which Article 8 applies .
     This minimum stock shall , on a fixed date , be equal to a percentage of
      the A quota of each sugar-producing undertaking or to the same
      percentage of its production of A sugar where this is less than its
      A quota .
     The fixed percentage may be reduced .
 ---pagebreak---                                           - 32 -
2 . The Council , acting by a qualified majority on a proposal from the
     Commission , shall adopt general rules for the application of this
     Article and in particular shall fix the date and the percentage
     referred to in the second subparagraph of paragraph 1 .
3 . Detailed rules for the application of this Article and , in particular ,
     the reduced percentage shall be adopted in accordance with the
     procedure laid down in Article ^1 .
                                                             ι
                                         TITLE II
                             Trade with third countries
                                        Article 13
1 . All imports into and exports out of the Community of the products
     listed in Article 1(1 )( a ), ( b ), ( c ), ( d ), ( f ) and ( g ) shall be
     conditional upon the presentation of an import licence or an export
     licence issued by the Member States to any applicant irrespective of
     the place of his establishment in the Community .
     Where a levy or a refund is fixed in advance the advance fixing shall
     be noted on the licence which shall serve as a supporting document for
     such advance fixing .
     The licence shall- be valid throughout the Community .
     The issue of a licence shall be conditional upon the lodging of a
     deposit which will guarantee that importation or exportation will be
     effected during the period of validity of the licence and which will be
      forfeit in whole or in part if the transaction is not effected , or is
     only partially effected , within that period .
 2 . The system provided for in this Article may be extended to the products
      listed in Article 1(1 )( e ) in accordance with the procedure laid down in
      Article ^l .  The period of validity of licences and other detailed
      rules f cr the application of this Article , which may in particular lay
      down a time limit for the issue of licences , shall be adopted in
      accordance with the same procedure .
                                                                                 ê
 ---pagebreak---                                        - 33 -
                              /       Article 14
1 . A Ccmmuiity threshold prioe shall be fixed each year fear each of the
     following products: white sugar , raw sugar and molasses .
2. Tte threshold prioe for white sugar shall be equal to the intervention
   ' price multiplied by the coefficient 1.05 , plus the costs , calculated at
      a flat rate , of transport from the Ccmmuiity area having the largsst
      surplus to the most distant deficit area in the Community , plus an
      anount which takes into accouit the levy referred to in Article 8 for
      the marketing year in question .   The threshold price shall apply to the
    ' same standard quality as the intervention prioe for white sugar .
  3. The threshold price for raw sugar shall be derived from that for white
       sugar , taking account of a standard processing margin and a standard
– -r yield .    The threshold price shall apply to the same standard quality
       as the intervention price for raw sugar .
  4. The threstold price for molasses shall be fixed so that the receipts
       from sales of molasses can reach the level of undertakings' receipts
       taken into accouit pursuant to Ai^tide 4 when the basic price for beet
       is being fixed .  It shall apply to a standard quality .
 5. The Council , acting by a qualified majority on a proposal from the
       Commission , shall fix each year before the start of the marketing year
       in question   the threshold prioes for the products referred to in
       paragraph 1 .
  6. The standard quality of molasses shall be specified in accordance with
      the procedure laid down in Article 41 .    .
 ---pagebreak---                                                  - 34 -
                                              Article 15
1 . A cif prioe for a Ccmmuiity f ronti er crossing point shall be calculated
     for each of the following products:                white sugar , raw sugar , and
     molasses .    It shall      be calculated on the       basis of the most favourable
     purchasing opportunities for each product on the world market based on
 quotations or pri ces on that market as adjusted for any differences from
     the standard quality to which the threshold price applies .
2. Where free quotations oh the world market are not a factor determining
     the offer prioe and where that price is less than world market prices, a
     special cif prioe calculated on the basis of the offer prioe and
     applicable solely to the imports in question shall be substituted for
     the cif prioe .
3. The Council , acting by a qualified majority on a proposal from the
     Commission , shall determine the frontier crossing point concerned .
4 . Detailed rules for calculating the cif prices shall be adopted in
     accordance with the procedure laid down in Article 41 .                The adjustments
     referred to in paragraph 1 shall be fixed in accordance with the same
      procedure .
                                               Article 16
                        *           .
 1 . A levy shall be charged on imports of the products listed in
      Article 1 ( 1 ) (a ), ( b ), ( c ), ( d ), ( f ) and (g ).
 2. The levies on white sugar , raw sugar and molasses shall be equal to the
     threshold prioe minus the cif 'prioe .
 3. The levy on raw sugar shall be adjusted , if necessary , according to the
     yield .  The levy on raw sugar imported for purposes other than refining
     shall be the levy on white sugar if the latter is higher than the levy
      on raw sugar .      If the levy on white sugar is higier than the levy on
      raw sugar then raw sugar imported for refining shall be subject to
      customs oontrol or to an administrative control offering equivalent
      guarantees .
 ---pagebreak---                                           - 35 -
1). The levy on the products listed in Article 1(1 ) (b ) shall be calculated
      as a flat rate on the basis of the svcrose oontent of each of these
      products and the levy on white sugar .
      For purposes other than the manufacture of sugar , partial exemption
      fran the import levy may be allowed as a temporary measure in special
      cases in accordance with the prooedure laid down in Article 11 .
5. The levy on the products listed in Article 1(1 ) (d ) shall be calculated ,
      where appropriate , as a flat rate on the basis of the sucrose oontent
  .    (including other sugars expressed - as sucrose ) of the product concerned
      and the levy on white sugar .
       The levies applicable to maple sugar and to maple syrup falling within 7
       heading No 17 . 02 of the Common Customs Tariff shall , however ," be
       limited to the amount resulting from the application of the duty bound
       within GATT .                   '                               ~
 6. The levy on the products listed in Article 1(1 ) (f ) and (g ) shall
    r
       comprise a variable element and a fixed element .      The variable elsnent ,
       per 100 kilograms of dry matter , shall be equal to one hundred times
       the basic import levy fixed pursuant to paragraph 5 and shall be
       applicable as from the first of each monthl "
                       • ν                                  .
       The fixed element , per 100 kilograms of d'y matter , shall be equal to
       one- tenth of the fixed element established pursuant to point B of
       Article 11(1 ) of Council Regulation ( EEC ) No 2727 /75 of 29 October 1975
       on the common or^tnization of the market fcr'oereals ( 1 ) for the fixing
       of the import levy on the products falling within subheading 17.02 & II
       of the Canra on Customs Tariff .
 7. Detailed rules for the application of this Article , in particular the
       margin within which the variations in the factors used for calculating-
       the levy do not require any adjustment of the levy , shall be adopted in
       accordance with the procedure laid down in Article 41 .
 8. The levies referred to in this Article stall be fixed ty the Commission
 ( 1 ) OJ No L 281 , 1 . 11 . 1975 , p. 1
 ---pagebreak---                                          - 36 -
                                      Article 17
1 . The levy to be charged shall be that applicable on the day of
     importation .
2. The levy may , however , be fixed in advance fcr imports of the products
     listed in Article 1(1 ) (a ) and (c"i .
     In that event , the levy applicable on the day on which the application
     for the licence is lodged , adjusted on the basis of the threshold price
     in force on the day of importation , shall bs applied to imports to be
     effected during the period of validity of the licence provided that the
      person ooncerned so requests when applying fcr the 'Licence , and in any
      case before 13.00 hours . Any premi UD to be added to the levy may be
     fixed at the same time as the levy .
3. The Council , acting by a qualified majority on a proposal f ran the
     Commission , shall adopt general rule& fcr the application of this
     Article;   it shall , in particular , determine the condi tiers on which
      advance fixing can take place and the rules for fixing premiuns .
*5 . Where the conditions referred to in paragraph 3 are fulfilled , a
     dscision to. apply the system proviso fcr in paragraph 2 shall be taken
     in accordance with the procedure laid down in Article 41 .     Where these
      conditions are no longer fulfilled , the decision shall be revoked in
     accordance with the same procedure .
     It may be decided in accordance with the seme procedure that the system
      provided for in paragraph 2 shall apply     in whole or     in part to
     each of the products listed in Article 1(1 ) ( d ), ( f)and (g ).
5 . Detailed rules for advance fixing of the levy shall be adopted in
     accordance with the procedure laid down in Article 41 .
6 . Premi una shall be fixed by the Commission .
 ---pagebreak---                                        - 37 -
7 . Where an examination of the market situation shows that thers ars
  - difficulties dus» to tfca application of the previsions concerning tte
     advance fixing 6? the levy , or that such difficuL ti         oould arise , a
     decision may be fcala&n in accordance >;ith the procedure laid down in
     Article 41 to suspend tte application of these provisions for the
     period strictly neoessary .   .
     In cases of extreme irgsncy the Canmission may , after examining the
     situation , decide on the basis of all the information available to it
     to suspend advanoe fixing fcr a maximum of three working days .
     Applications for licences    accompanied by applications for advanoe
     fixing,! odgsd during the period of suspension , shall be rejected .
                                      Article 18
1 . When the world market prioe exceeds the Canminity* s interwntion price
     provision may be made for charging a levy on exports of the sugar in
     question .  This levy must be introduced when the cif prioe fcr white
     sugar or raw sugar is higher than the corresponding threshold prioe .
     Save as otherwise provided ty t-te Council in accordance with the
     procedure laid down in paragraph 3 » the levy to be charged shall be
     that applicable on the day of ejqportation .
2 . When the cif price for white sugar or raw sugar is higher than the             v
   . corresponding threshold price , it may be decided to grant a subsidy for
     imports of the product in question .
3. The Council , acting by a qualified majority on a proposal from the
     Commission , shall acbpt general rules for the application of
     paragraphs 1 and 2.
4. Fcr the products listed in Arti de 1 ( 1 ) (b ) , ( c ), ( d ), ( f ) and (g ),
     provisions corresponding to those of paragraph 1 and to the ruLes for
     its application may be adopted in accordance with the procedure laid
     down in Article 41 .
 ---pagebreak---                                            - 38 -
 5 . Detailed rules for the application of this Article shall be adopted in
      accordance with the procedure laid down in Article 41 .
 6. The levies res ULL ting fr~r. the application of this Article shall be
      fixed ty the Commission .
                                        Article 19
1 . To the extent neoessary to enable the products listed in Article 1 ( 1 )
      (a ), (c ) and (d ) to be exported in the natural state or in the form of
     goods listed in Annex I to this Regulation on the basis of quotations
      or prices on the world market for the products listed in
     Article 1(1)(a ) and (c ), the difference between those quotations cr
     prices and prices within the Community may be oovered by an export
     refuid .
     The refuid f cr raw sugar shall rot esceed the refuid for white sugar .
2. A refund may be provided for the products listed in Article 1(1)(f ) and
     ( g ) which are exported in the natural state or in the form of goods
     listed in Annex I to this Regulation .
     The level of such refuid , per 100 kilograms of dry matter , shall be
     determined taking into account , in particular , the following:
      (a ) the refuid applicable to the export of products f ailing within
           subheading 17 . (2 B II a ) of the Common Custans Tariff;
      (b ) the economic aspects of the exports in question .
     The refund to be applied shall be that valid on the day on which the
      export takes place .    Advanoe fixing of the refuid may , however , be
      decided upon in accordance with the procedure laid dcwn in Article 41 .
 3. When the refuid is being fixed , particular accouit shall be taken of
      the need to establish a balanoe between the use of Ccmmunity basi c
   . products in tte maiufactire of processed goods fa' export to third
       oountries and ^ he use of the products of such countries brought in
       uider irward pro oes sine arrangements .
 ---pagebreak---                                        - 39 -
    Tte refund shall be the same for the whole of th3 Community .     It may be
     varied according to destination . ,   '      .
    The refund shall be          1 at the request of the person concerned .
    Refunds shall be fixed in accordance with the procedure laid down in
    Article 41 :
  ,  (a ) periodically
          or
     (b ) by means of tenders .
    If neoessary , refunds which are fixed periodically may be modified in
    the interval by the Commission acting at the request of a Member State
    or on itq own initi ati ve .
5. When an examination of the market situation shows that there are
    difficulties due to the application of the provisions concerning the
    advanoe fixing of the refund , or that such difficulties could arise , a
    decision may be taken in accordance with the procedure laid down in -
    Article 41 to suspend the application of these provisions for the
    period strictly necessary .
    In a case of extreme urgsncy the Commission may , after ejamining the
    situation , decide' on the basis of all the information available to it
    to suspend adranoe fixing for a maximum period of three working days .
    Applications for licences , accompanied by applications for advanoe
    fixing, lodged during the period of suspension    shall be rejected .
6. The Council , acting by a qualified majority on a proposal frcm the
    Commission , shall adopt ganeral rules fcr the application of this
    Article .                                              -
                       (
7 . D^ailed rules fcr the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 41 .
 ---pagebreak---                                             - 40 -
                                          Article 20              .
To the extent necessary for the proper functioning of the cannon
or^nization of the marknt-          ; > sugar  the Coincil , acting ty a qualified
majority on a proposal frcw ine Commission , may prohibit , totally or
partially , the use of irwar d processing arrangements in respect of :
  - the products listed in Article 1 ( 1 ) (a ) and (d ), and , in special cases ,
  _ the products listed in Article 1(1 ) which are
    intended for the manufacture of the goods listed in Annex I.
                                          Article 21
1 . The general rules for the interpretation of the Common Custcras Tariff
    and the special rules f cr its application shall apply to the tariff
    classification of the products covered by this Regulation;           the tariff'
    nomenclattre resulting from the application of this Regulation shall be
    incorporated in the Common Customs Tariff .
2. Save as otherwise provided in this Regulation or where dero^tion
    therefrom is decided upon by the Council acting by a qualified majority
    on a proposal from the Canmission ,; the following shall be prohibited :
    - the levying of any customs duty on the products listed in
       Article 1 ( 1 ) (a ) to (d ), ( f)and (g ),
    - the levying of any chargs having an effect equivalent to a custcms
       dut y ,
    - the application of any quantitatire Restriction or any measure having
       an equivalent effect .
    The restriction of import and export lioenoes to a specified category
    of those entitled to receive them shall be one of the measures
     consictered as having an effect eqai\alent to a quantitative restriction
 ---pagebreak---                                        - 41 -
                                     Article 22
1 . If ty reason of imports or e:?>orts the Canrainity mar ket in one or more
     of the products listed in Article 1(1 ) experiences , or is threatened
    with , serious disturbances likely to endangsr the s obj ecti \es set out in
    Article 39 of the Treaty , appropriate measures may be applied in trade
     wi th third oouitries  uitil sich distirbanoe or threat of disturbance
     has  ceased to exist .
    The Cornell , acting ty a qualified majority on a proposal from the
    Commission , shall adopt detailed ruLes for the application of this
     paragraph and shall define the cases in which , and the limits within
    which , the Member States m&y take protective measures .
2. If the situation referred to in paragraph 1 arises the Commission
    shall , at the request of a Member State or on its own initiative ,
    decide upon the neoessary measures which shall then be oommini oated to
                /
    the Member States and shall be immediately applicable .
                  1
    If the Canmission reoei\es a request from a Member State it shall take
    a decision thereon within 24 hours of receipt of the request .
3. The measures decided upon ty the Commission may be referred to the
    Council by any Member State within a period of three working days
    following the day on which they were oommtnioated .    The Couicil shall
    meet without delay .    Acting by a qualified majority it may either amend
    or repeal the measures in question .
 ---pagebreak---                                          - 42 -
                                     TITLE III
                                         Quotas
                                     Article 23
                                          respect of
1 . Articles 24 to 32 shall apply in / the marketing years 1981 /82 to 1985 /86 .
2 . The Council , acting in accordance with the procedure laid down in
    Article 43(2 ) of the Treaty , shall adopt before 1 November 1 985 the
    arrangements to be applied with effect from 1 July 1986 .
                                                     \
                                     Article 24
    To each undertaking which , during the period 1 July 1980 to 30 June
    1981 utilized its basic quota as defined in Regulation ( EEC )
    No 3330/74 , there shall be allocated an A quota and a B cuota .
             /
    For the purposes of this Regulation :
    ( a ) 'A sugar' and 'A isoglucose' mean any quantity of sugar or
          isoglucose the production of which is attributable to a specific
          marketing year and which is produced by the undertaking concerned
          within its A quota ;                 '
    ( b ) 'B sugar 1 and *B isoglucose * mean any quantity of sugar or
          isoglucose the production of which is attributable to a specific
          marketing year and which is produced by the undertaking concerned
          outside its A quota but within the sum of its A and B quotas ;
    ( c ) 'C sugar 1 and 'C isoglucose' mean any quantity of sugar or
          isoglucose the production of which is attributable to a specific
          marketing year and which is produced by the undertaking concerned
          outside the sura of its A and B quotas .
                                     Article 25
1 . The A quota of each sugar-producing undertaking and
    isoglucose-producing undertaking shf.ll be equal to its basic quota in
    the period 1 July 1980 to 30 June 1?81 .
 ---pagebreak---                                        - 43 -
 2. The B quota of each sugar- producing undertaking shall be established on
    the basis of its production of su^r between its basi c and maximun
    quotas , recorded as such pursuant to Regulation ( EEC ) No 3330 /74 , in
    each of the marketing years 1975 /76 to 1979 /80 .
    The B quota of the undertaking shall be equal to the average of the . -
    three highest such annual productions , recorded as in the preoeding
    subparagraph , in the above-mentioned marketing years .
    The B quota may not j however , be less than 5$ of the A quota .
3. The B quota of each i so glucose- producing undertaking shall be equal to
    23.0 % of its A quota as established in accordance with paragraph 1 .
    The B quota may not , however , be less than the actual production of B
    quota isogLucose during the period 1 July 1979 to 30 June 1980 .
4. The Council , acting by a qualified majority on a proposal from the
    Ccmmisslon , shall adopt gsneral rules for the possible modification of
    quotas .
5. Not later than 1 January 1984 the Council shall , on the basis of a        -
    report by the Commission , examine the supply        i situation on the
    world ma* let aid if neoessary shall , • ,
        in accordance with the procedure laid down in Article 43(2 ) of the
    Treaty , revise the B quotas referred to in paragraphs 2 and 3.
6. Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 41 .
                               »                              *
                                     Article 26
1 . Subject to paragraphs 2 and 3, C sugar which is not carried fcrward
    pursuant to Article 27 and C isogLucose may not be'disposed of on the
    Canrntnity' s internal market arid must be e^orted in the natural state
    before 1 January following the end of the marketing year in question .
    Articles 8 , 9, 18 and 19 shall not apply to this sugar cr Articles 18
    and 19 to this isogLucose .
 ---pagebreak---                                         - 44 -
     Nevertheless , to the extent necessary to fulfil obligations which would
     be placed on the Community by membership of the International Sugar
     Agreement it may be decided that all or part of the production of the C
     sugar in question shall be stored in advance of the period during which
     it must be exported ,    In that event Article 8(1 ), with the exception of
     the third subparagraph thereof , shall apply to the sugar in question
     x'uring the period of obligatory storage .
2 . Where the period of obligatory storage extends beyond the end of the
     marketing year in which the sugar .in question was produced , a specific
     period for its exportation may be laid down and the possibility of
     carrying forward , referred to in/ Article 27 , shall apply on conditions-
     to be determined .
3 , Exceptionally , and to the extent necessary to guarantee the Community 's
    sugar supplies , it may be decidec1 that Article 18 shall apply .     In that
    event it shall be decided at the same time that the entire quantity of
    the C sugar in question may finally be disposed of on the interna},
    market without the amount laid down In paragraph M being levied .
4 t Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 41 .
    These rules shall provide in particular for the levying of a charge on
    the C sugar and C isoglucoss referred to in paragraph 1 in respect of
    which proof of its export i:i the natural state within the prescribed
    period was not furnished      at    a date to be determined .
                                      Artic.'.e 27
1 , IT.ach undertaking shall be fre.g to decide to carry forward thq whole or
    I»art of its production outside its A quota to the next marketing year
    <i,o . be treated as part of that yearns production .  TThat decision shall
    be irrevocable *.
                                                   r
 ---pagebreak---                                        - 45 -
2 . Each undertaking which takes the decision to carry forward referred to
    in paragraph 1 shall :
    - inform the Member State concerned , before 1 February , of the quantity
      being carried forward ,
    and
    - undertake to store this quantity during the period 1 February to
      31 January of the following year ;    for this period storage costs
      shall be reimbursed under the provisions of Article 8 .
    For       undertakings situ^id^i^the French departments of Guadaloupe
    and Martinique , however , /1 February in the first indent of the first
    subparagraph shall be replaced by 1 May , and the period 1 February to
    31 January in the second indent of the same subparagraph shall be
    replaced by the period 1 May to 30 April of the following year .
    If an undertaking 's definitive production in the
    marketing year concerned was less than the estimate made when the
    decision to carry forward was taken then the quantity carried forward
    may , before 1 August of the next marketing year , be adjusted
    retroactively .
3 . Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 11 .
    These rules shall provide in particular for a charge to be levied on
    any sugar comprising the quantity referred to in the second indent of
    paragraph 2 which is disposed of during the prescribed period of
    storage .
                                     Article 28
1 . Before the end of each marketing year there shall be recorded :
    - estimates of the production of A and B sugar and of A and B
      isoglucose attributable to the marketing year in question ,
    - estimates of the quantities of sugar and isoglucose disposed of for
      consumption within the Community during the marketing year in
      question ,
    - an estimate of the average refund granted for the export of the
      surplus of the production referred to in the first indent over the
      consumption referred to in the second indent ,
 ---pagebreak---                                       - 46 -
    - the sum of the export refunds calculated on the basis of the data
       referred to in the preceding indents ;   this sura shall be reduced by
       the estimated sum of '      port levies , if any , charged during the
      marketing year in question .
2 . The sum referred to in the last indent of paragraph 1 shall be divided
    by the estimated total production of A and B sugar and A and B
    isoglucose attributable to the marketing year in question .     An amount
    equal to this quotient shall be charged on manufacturers as a basic
    production levy on their production of A and B sugar and A and B
    isoglucose .
    This levy shall not , however , exceed :
    - on the sugar in question , an amount equal to 2.5% of the intervention
      price for white sugar ,
    and
    - on the B isoglucose in question , the share of the basic production
      levy borne by sugar manufacturers .
3 . When the maximum permitted basic production levy does not fully cover
    the sum of the export , refunds referred to in the last indent of
    paragraph 1, the uncovered balance shall be divided by the estimated
    production of B sugar and B isoglucose attributable to the marketing
    year in question.'  An amount equal to this quotient shall be charged on
    manufacturers as a levy on their production of B sugar and 0 isoglucose .
    This levy shall not , however , exceed :
    - on B sugar , an amount equal to 37.5$ of the intervention price for
      white sugar ,
    and
    - on B isoglucose , the share of the levy on B sugar borne by sugar
      manufacturers .
4 . The levies shall be imposed by the Member States .
5 . Detailed rules for the application of this Article , and the amounts of
    the levies , shall be adopted in accordance with the procedure laid down
    in Article 41 .                                  ,
 ---pagebreak---                                          - U7 -
                                      Article 29
1 . If in respect of the 1980 /81 marketing year the total losses referred
     to in Article 27 of Re gul ati on ( EEC ) No 3330 /7
     (a ) are not fully covered fcy the reoeipts from the production levy then
          the uncovered balance shall be added to the sun of the export
          refuids referred to in the last indent of Article 28(1 ) of this
          Regulation in respect of the 1 981 /82 marketing year .
          For tte purpose of calculating this balance and notwithstanding the
          first subparagraph of Article 27(2 ) of Regulation ( EEC ) No 3330 /7 1*,
          the giaranteed quantity shall be oonsictered as equal to human
          consunption in the Community ( as constituted before the accession of
          Greeoe ) during the 1980 /81 marteting year ejpressed as a quantity
          of white sugar;
     (b ) as calculated taking a ccouit of the seoond subparagraph of (a ), are
          less than the receipts frcm the production levy as charged then an
          amount equal to this difference shall be deducted from the sun of
          the export refunds referred to in the first subparagraph of (a ) .
2. Fcr the purpose of appl ying Arti cl e 28 the estimated quantities
     referred to in the first and second indents of paragraph 1 of that
    Article shall be adjusted in respect of each of the marteting years
     1982 / 83 to 1985 /86 by the difference recorded in respect of the
    immediately preceding mar keting year between the estimated quantities
     and the corresponding quantities as finally established .
    In addition , the suns of the export refuids referred to in the fourth
    indent of Article 28(1 ) shall be adjusted so that subject to
    paragraph 1 and taking a ccouit of export levies they correspond
    cumulatively to the result of multiplying the total quantities taken
    into accouit by the weighted average of all the export refuids granted
     sinoe i July 1 98 1 .
3. Detailed rules fcr the application of this Article shall be adopted in
     accordance with the procedure laid down in Article U1 .
 ---pagebreak---                                        - 48 -
                                     Article 30
 1 . In contracts for the delivery of beet for the manufacture of sugar ,
     beet shall be differentiated according to whether the quantities of
     su^ar to be manufactured from it are :
     ( a ) A sugar ,
     ( b ) B sugar ,
     ( c ) sugar other than A and B sugars .
     In respect of each undertaking , sugar manufacturers shall inform the
     Member State in which the undertaking concerned produces sugar of the
     following :
     - the quantities of beet referred to under ( a ) for which pre-sowing
        contracts were signed and the sugar content on which these contracts
        were based , and
     - the correspond ing estimated yield .
     The Member States may require additional information .
2 . Notwithstanding Article 6(2)(b ) and Article 32 , any sugar manufacturer
     who has not signed pre-sowing delivery contracts for a quantity of beet
     equal to the A quota at the minimum price for A beet shall be required
     to pay this minimum price for all beet processed into sugar by the
     undertaking concerned .
     Nevertheless , for 'a given marketing year the provisions of the
     preceding subparagraph shall not apply to the manufacturer concerned if
     before sowing began in that marketing year the beet sellers
     representing at least 6056 of the total quantity of beet bought by that
     manufacturer during the preceding marketing year so requested the
     Member State on whose territory the undertaking concerned is situated .
     The Member State shall so inform the Commission without delay .
3 . The Council , acting by a qualified majority on a proposal from the
     Commission , shall adopt general rules for the application of this
     Article .
 ---pagebreak---                                        " 49 -
1 . Detailed rules for the application of this Article , and , if necessary ,
    the criteria to be observed by manufacturers when dividing between beet
    sellers the beet quantities to be covered by pre-sowing contracts
    within the meaning of par a a aph 1 , shall be adopted in accordance with
    the procedure laid down in Article ill.
                                    Article 31
1 . It may be decided that sugar and isoglucose intended for the
    manufacture of products other than food products shall not be
    considered as production within the meaning of this Title .. In that
    case the conditions subject to which Articles 8 , 9 , 18 and 19 shal I apply to
    this sugar or Articles 18 and 19 to this isoglucose may be decided upon .
2 . The Council , acting by a qualified majority on a proposal from the
    Commission , shall determine the general rules for the application of
    paragraph 1 and the products and conditions referred to in that paragraph .
3 . Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article !ll .
                                    Article 32
1 . Sugar manufacturers may buy beet intended for the production by the
    undertaking concerned of C sugar or of the sugar referred to in
    Article 31 at a price lower than the minimum prices for beet referred
    to in Article 5(1 ) .
2 . Nevertheless , in respect of the quantity of purchased beet
    corresponding to the quantity of sugar :     V
    - disposed of on the internal market pursuant to Article 26(3 )/
    or                                                                     . •
    - carried forward to the following marketing year pursuant to
       Article 27 .
 ---pagebreak---                                           - 50 -
      the sugar manufacturers concerned shall adjust the purchase pnce so
      that it is at least equal to the minimum prioe fcr A beet .
3. If necessary , detailed rules for the application of this Article shall
      be adopted in accordance with the procedure laid down in Article 41 .
                                         TITLE IV
                          . '     Preferential imports
                                        Article 33
Articles 34 to 37 shall apply to cane sugar , raw or white , hereinafter
referred to as 'preferential sugar' , which falls within heading No 17.01
of the Common C us tans Tariff , which originates in the States , countries
and territories listed in Annex II , and which is imported into the
Community pursuant to:
(a )    Protocol No 3 on ACP sugar annexed to the ACP-EEC Convention of Lcme ,
        signed on 28 February 1975 ;
(b )    Council Decision 75 / 614 / EEC of 25 February 1975 on imports of cane sugar
        originating in the overseas countries and territories (OCT);      and
 (c )   the Agreement of 15 July 1975 between the European Eoonomi c Canmuiity
        and the Republic of India on cane sugar .
                                        Article 34
Where the quality of preferential sugar purchased by intervention agencies
cr fcy other agents appointed ty the Ccmmuiity differs from the standard
quality the guaranteed prices shall be adjusted by means of prioe
increases aid reductions .
 ---pagebreak---                                          - 51
                                       Article 35
1 . The levy provided for in Article 16 shall not apply to imports of
preferential sugar .
2.       The prohibitions referred to in Article 21(2 ) shall not be derogated
from in any circumstances in respect of preferential sugar .
                                       Article 36                         v .
1 . Where there is a difference between , on the one hand , the raw sugar
refining margin taken into account in the determination of the
intervention and .threshold price       for raw sugar and , on the other hand ,
the margin necessary for the refining of raw preferential sugar , a
differential charge fixed for the marketing year in question shall be made
on the latter sugar when it is put into free circulation .
                                                                 /
2 . By way of derogation from paragraph 1
      ( a ) the charge shall not be made on : '
            - raw preferential sugar which is not intended for refining and
              which falls within subheading 17.01 B II of the Common Customs
              Tariff , or                                             -
            - raw preferential sugar , other than that referred to in the first
              indent , which is intended for refining in a refinery and which is
              subject to the lodging of a deposit equal to the differential
              charge ;
      ( b ) provision may be made for the non-application of the whole of the
                          ν
            charge , or part of the charge , to any raw preferential sugar which
            is imported into regions of the Community to be determined and      -
            which is refined in a unit other than a refinery .
3 . For the purposes of this Article " refinery " means a production unit'
whose sole activity consists of refining either raw sugar or syrups
produced prior to the crystallizing stage .
                                       Article 37
 1 . The Council , acting by a qualified majority on a proposal from the
Commission , shall :
 ( a ) adopt general rules for the application of this Title and , in
particular , those for the implementation of the texts referred to in
Article 33 ;                                                      ,
 ( b ) fix the differential charge referred to in Article 36(1 ) and the
conditions for the applicationn of Article 36(2)(b ).,
 2 . Detailed rules for the application of this Title shall be adopted in
      accordance with the procedure laid down in Article *11 .
 ---pagebreak---                                     - 52 -
                 \
                                   TITLE V
                             General provisions
                                  Article 3°
Provisions neoessary to prevent the market in sugar being disturbed as a
result of an alteration in price levds at the changeover from one
marketing year to the next may be adopted in accordance with the procedure
laid down i n Arti de 11 .
                                  Article 39
The Member States and the Commission shall   ccnraunicate to each other the
information neoessary to implement this Regulation .
Rules for communicating and distributing this information shall be adopted
in accordance with the prooedure laid down in Article 41 .    ,
 ---pagebreak---                                                          - 53 -
                                                      Article 40
1 , A Management Committee for Sugar ( hereinafter referred to as 'the
    Committee' ) shall be established , consisting of representatives of the
    Member States and presided over by a representative of the Commission .
2 . Within the Committee the votes of the Member States shall be weighted
    in qjcodrdance with Article 148(2 ) of the Treaty , The chairman shall
    not vote .
              i • *                  , •                        _
                                                      Article 41
1 , When) £he procedure laid down in thj.s Article is to be followed , the
"   chairman shall , refer the matter to the Committee either on his own
    initiative or at the request of the representative of a Member State .
                      .
2 , The representative of the Commission shall submit a draft of the
    measures to be taken , The Committee shall deliver its opinion on puch
    jneasurea within a time limit to fce set, by the chairman according                     the
    urgQifloy of the questions under cgnpid^ration . An opinion , shall bqi
    adopted by a majority qf 45 votes .
                          · .      .   · ·     ι
3 , The pomraission shall adopt measure^ which shall apply immediately ,
     ?   ••                                       -•                  *
    Nevertheless
     "         M        '
                              , if these measures' $re n^t in accordance with the opinion-
    of the Committee , they shall fpwrtyiwitty be communicated to the Council
    by tjpa Commision . In that event the Commission may defer application
    of t|iq measures which                       has adopted for not more than one month from
    the $a£e of such communication .                          _
    The ipouncil , acting by a qualified majority , may take 3 different
    deciBion within one month .
       !            , ■           »
            '  * '■                                   Artide 42
                                                       r  «P. ■   V "
The Committee may consider any other* question referred                        it by its
cha^rmaw ; either on his own initiatives or p.t the request of the
representative of % Member State ,
                                              !                         !
                                           !1
 ---pagebreak---                                           - 54 -
                                        Article 43
Goodu listed in Article 1(1 ) which are manufactured or obtained from
products to which Articles 9(2 ) and 10(1 ) of the Treaty do not app^y shall
not be admitted to free oiroulation within the Community .
                                        Article 44
Save as otherwise provided in thid Regulation , Articles 92 , 93 and 94 of
the treaty shall apply to the production of , and trade in , the products
listed in Article 1(1 ),
                                        Article 45
This Regulation shall be applied to that , at the same time , account is
taker} of the objectives set out iyi Articles 39 and 110 of the Treaty .
                                        Article 46
1 . Dijring the marketing years 1981 /82 to 1984 / 85 the Italian Republic and
    thie French Republic shall be authorized to grant adaptation aidy on the
    conditions laid down in paragraphs 2 and 3 to sugar beet producetrs ,
    6M,gar cane producers e»nd sugar producers who benefitted during the
    1 9t|80 / 8 1 marketing year from the aid authorization given by Article 3 of
    Regulation ( EEC ) No 1592 / 80 .
2 . In,, Italy such aid may, be granted only in respect of a maximum quantity
    of 1 400 000 tonnes of white sugar .
    In respect of the 1981 /82 marketing year the total amount of ai (^ for
    beet producers and sugar producers shall not exceed 8,18 ECU pep
    10Q kilograms of white sugar .
    In respect of each of the other- marketing years concerned the mqjcimum
    total amount of aid shall be et^ual to the maximum total amount
    applicable in respect of the immediately preceding marketing yeap
    redwoed by 2.05 ECU ,
                                                        r
                             1
 ---pagebreak---                                        - 55 -
                                              Ν
                                                ·
 3 .( In France such aid may be granted only in respect of a maximum quantity
      of H66 000 tonnes of white sugar produced in the French overseas
      departments .
      In respect of the 1981 /82 marketing year the total amount of aid for
      cane producers and sugar producers shall not exceed 1.83 ECU per
      100 kilograms of white sugar .
      In respect of each of the other marketing years concerned the maximum
      total amount of aid shall be equal to the maximum total amount
      applicable in respect of the immediately preceding marketing year
      reduced by 1.21 ECU .
                                     Article 47                       -
Should special measures be necessary for the implementation within the
framework of this Regulation of, obligations which would arise from
Community membership of the International Sugar Organization , the Council ,
acting by a qualified majority on a proposal from the Commission , shall
adopt such measures , which may derogate from the provisions of this
Regulation .                                                .
                                     Article 4»
Should transitional measures be necessary to facilitate transition to the
system established by this Regulation , in particular if the introduction
of the new system on the date provided for would give rise to substantial ,
difficulties , such measures shall be adopted in accordance with the
procedure laid down in Article 4'1 . They shall be applicable until 30 June
1982 at the latest .
                                                  \
 ---pagebreak---                                      Article '49
 1.  This Regulation shall enter into force on                           1981 .
 2 , Ifc shall apply with effect from 1 July 1981 with the exception pf
     Articles 47 and 18 , which shall apply immediately upon the entry into
     force of this Regulation , and of Articles 7 , 2U , 25 and 30 which shall
     apply with effect from the same date for production in the 1981 /82
     picketing year .
3 . Regulations ( EEC ) No 3330 /71 and (EEC ) No 1111 / 77 shall be repealed
     wi,th effect from 1 July 1981 .
i\. Citations and references to Regulations (EEC ) No 3330/71 and ( EIJC )
     Nq 1111 / 77 contained in the acts adopted in implementation of those
     Peculations must be understood as references to this Regulation .,
          M                        ■    ' ;
     Citations and references to Arpiclep of the said Regulations arq to be
     F«ad in conjunction with the table of equivalence given in Anne^ III to
     ttyis Regulation .
     Tfyis Regulation shall be binding in its entirety and directly
     applicable in all Member States .
Pone at Brussels ,                                     For the Council
 ---pagebreak---                                    - 57 -
                                 ANNEX I
CCT heading No                           Description
   13.03       Vegetable saps and extracts ; pectic substances , and pec-
               tates , agar-agar and other mucilages and thickeners ,
               derived from vegetable products :
               C. Agar-agar and other mucilages and thickeners , derived
                  from vegetable products :
                  ex III . Other :
                           - Carrageenan
   17.04       Sugar confectionery , not containing cocoa :
               B. Chewmg gum
               C. White chocolate
               D. Other ,
   18.06       Chocolate and other food preparations containing cocoa
                              «      -
   19.02       Malt extract ; preparations of flour , starch or malt
               extract , of a kind used as infant food or for dietetic
               or culinary purposes , containing less than 50$ by weight
               of cocoa :
                  V
               B. Other
   19.05       Prepared foods obtained by the swelling or roasting of
               cereals or cereal products ( puffed rice , corn flakes and
               similar products )
   19.08       Pastry , biscuits , cakes and other fine bakers' wares ,
               whether or not containing cocoa in any proportion
ex 21.02       Extracts , essences or concentrates , of coffee , tea or
               mate and preparations with a basis of those extracts ,
               essences or concentrates
   21.04       Sauces ; mixed condiments and mixed seasonings
 ---pagebreak--- CCT Heading No                           Description
                                                     \
ex 21.07       Food preparations not elsewhere specified or included
               with the exception of flavoured or coloured sugar
               syrups , falling within subheading 21.07 F
   22.02       Lemonade , flavoured spa waters and flavoured aerated
               waters , and other non-alcoholic beverages , not including
               fruit and vegetable juices falling within heading
               No 20.07
   22.06       Vermouth , and other wines of fresh grapes flavoured with
               aromatic extracts
   22.09       Undenatured spirits of an actual alcoholic strength by
               volume of 80$ or more ; liqueurs and other spirituous
    I
               beverages ; compound alcoholic preparations ( known as
               • concentrated extracts' ) for the manufacture of
               beverages :
               C. Spirituous beverages :
                   V. Other
   29.01       Acyclic alcohols and their halogenated , sulphonated ,
               nitrated or nitrosated derivatives :
               C. Polyhydric alcohols :
                    11 ^ D-Mannitol (mannitol )
                   III . D-Glucitol ( sorbitol )
   29.15       Polycarboxylic acids and their anhydrides , halides ,
               peroxides and peracids , and their halogenated ,
               sulphonated , nitrated or nitrosated derivatives :
               A. Acyclic polycarboxylic acids :
                   ex V. Other :
                          • Itaconic acid and its salts and esters
 ---pagebreak---                                    - 59"
CCT Heading No                            Description
   29.16        Carboxylic acids with alcohol , phenol , aldehyde or
                ketone    function and other single or complex oxygen-
                function carboxylic acids and their anhydrides , halides ,
                peroxides and peracids , and their halogenated
                sulphonated , nitrated or nitrosated derivatives :
                A. Carboxylic acids with alcohol function :
                     I. Lactic acid and its salts and esters
                    IV . Citric acid and its salts and esters
               ex VIII . Other :
                          - Glyceric acid , glycolic acid , saccharic acid ,
                            isosaccharic acid , heptasaccharic acid , their
                            salts and esters
   29.35        Heterocyclic compounds ; nucleic acids :
                ex Q. Other :
                       - Intermediate products from the chemical trans- .
                         formation of penicillin into antibiotics falling
                         within subheading 29 . M A or C
   29.38        Provitamins and vitamins , natural or reproduced by
                synthesis ( including natural concentrates ), derivatives
                thereof used primarily as vitamins , and intermixtures of .
                the foregoing , whether or not in any solvent :
                B. Vitamins , unmixed , whether or not in aqueous solution :
                   ex II . Vitamin
                                      12
                       IV . Vitamin C
 ---pagebreak--- CCT Heading No                              Description
   29 . ^3     Sugars , chemically pure , other than sucrose , glucose and
               lactose ; sugar ethers and sugar esters , and their salts ,
               other than products of heading Nos 29.39 , 29 . **1 and
               29.42 :                    "
               ex B.   Other :
                       - Levulose and its salts and esters
   29.44       Antibiotics :
               A. Penicillins
               C. Other antibiotics
   30.03       Medicaments ( including veterinary medicaments ):
               A. Not put up in forms or in packings of a kind sold by
                   retail :
                   II . Other :
                        a ) Containing penicillin , streptomycin or their
                            derivatives :
                            1 . Containing penicillin , or its derivatives
                    ex b ) Containing antibiotics or derivatives thereof
                            with the exception of those falling under a )
   38.19       Chemical products and preparations of . the chemical or
               allied industries ( including those consisting of
               mixtures of natural products ), not elsewhere specified
               or included ; residual products of the chemical or allied
               industries , not elsewhere specified or included :
 ---pagebreak---                                  - 61 -
CCT Heading No                           Description
   38.19            Q. Foundry core binders based on synthetic resins
   contd .          T. D-Glucitol ( sorbitol ), other than that falling
                       within subheading 29.04 C III     '
                 ex U. Other :
                       - Cracking products of D-glucitol ( sorbitol )
   39.06         Other high polymers , artificial resins and artificial
                 plastic materials , including alginic acid , its salts and
                 esters ; linoxyn :
                 ex B. Other :
                       - Dextrans   ,  -
               I
               i
                       - Heteropolysaccharides
 ---pagebreak---                                      - 62 -
                                    ANNEX II
         States , countries and territories referred to in Article 33
Barbados
Belize
Fiji
Guyana ~
India
Jamaica
Kenya
Madagascar
Malawi
Mauritius
People 's Republic of the Congo
St Kitts-Nevis-Anguilla
Surinam
Swaziland
Tanzania
Trinidad and Tobago
Uganda
 ---pagebreak---                                         _ 63 ^
                                        ANNEX III
                                 Table of équivalence
REGULATION ( EEC ) No 3330 /71                      THIS REGULATION
Article 1                                           Article 1
Article 3(1 )                                       Article 3(1 )
Article 3(3 )                                       Article 3(2 )
Article 3(5 )                                       Article 3(3 )        '
Article 3(6 )                                       Article 3(4 )
Article 4(1 )                                       Article 5(1 )
Article 4(2 )                                       Article 4(2 )
Article 4(3 )                                       Article 5(4 ) .
Article 5                                           Article 6
Article 6                                           Article 7(1 ) and ( 3 )
Article 7(1 )                . .                    Article 7(2 )
Article 8(3 ), subparagraph 1 , under ( a )         Article 8(4 )
Article 8(3 ), subparagraph 1 , under ( b )         Article 8(3 )
Article 8(3 ), subparagraph 2                       Article 8(5 )
Article 9(1 ), subparagraph 1                       Article 9(1 ), subparagraph 1
Article 9(1 ), subparagraph 2 , second              Article 9(1 ), subparagraph 2
                                   sentence
Article 9(2 )                                       Article 9(2 )
                                    ! ■
Article 9(3 ), subparagraph 1                       Article 9(4 )
Article 9(4 )       • v                             Article 9(3 )
Article 9(5 ), first and third indents              Article 9(5 )
Article 9(6 )                                       Article 9(6 )
Article 10                                          Article 1°
Article 11                            ~             Article 11
Article 12               ^                          Article 13
Article 13                                          Article 14
Article 14                                          Article 15
Article 15(1 )                                      Article 16(1 )
Article 15(2 )                                      Article 16(2 )
Article 15(3 )                                      Article 16(3 )
Article 15(4 )             ,                        Article 16(4 )
Article 15(5 )                                      Article 16(5 )
 ---pagebreak---                                       - 64-
REGULATION ( EEC ) No 3330 /74              THIS REGULATION
Article 15(6)'                              Article 16(7 )
Article 15(7 )                              Article 16(8 )
Article 16 ( 1 )                            Article 17(1 )
Article 16(2 )                              Article 17(2 )
Article 16(3 )                              Article 17(3 )
Article T6(4 )                              Article 17(4 )
Article 16(5 )                              Article Î7(5 )
Article 16(6 )                              Article 17(6 )
Article 16(7 )                              Article 17(7 )
Article 17(1 >                              Article 18(1 )
Article 17(2 }                              Article 18(2 )
Article 17 ( 3ï                             Article 18(3 )
Article 17(4 )                              Article 18(4 )
Article 17(5 )                              Article 18(5 )
Article 17 ( 6 )                            Article 18(6 )
Article 18(T )                              Article T2C1 )
Article 18(3 )                              Article 12(2 )
Article 19(1 )                              Article 19(1 )
Article T9(2 ) t subparagraph t             Article 19(3 )» subparagraph 2
Article 19(2 ), subparagraph 2              Article 19(3 ), subparagraph 3
Article 19 ( 2 ) r subparagraph 3           Article 19(1 ï . subparagraph 2
Article 1 9 f 2 ) ^ subparagraph 4          Article 19(3 ), subparagraph 1
Article 19 ( 2 ) , subparagraph 5           Article T9(6 )
Article 19(2 ) , subparagraph 6             Article 19(4 )
Article 19(3 )                              Article 19(6 )
Article 19(4 )                              Article 19(7 )
Article 19(5 )                              Article 19(5 )
Article 20                                  Article 20
Article 2î                                  Article 21
Article 22                                  Article 22
Article 23                                  Article 23
Article 24(1 )                              Article 24
Article 24(3 )                              Article 25(4 )
Article 24(4 }                              Article 25(6 )
Article 26 ( T ) and (2 }» subparagraph t   Article 26C1 )» subparagraphs
                                                             t and 2
Article 26(2 ) , subparagraph 2             Article 26(3 )
Article 26(3 )                              Article 26(4 )
 ---pagebreak---                                     - 65 -
 REGULATION ( EEC) No 3330 /74             THIS REGULATION
Artide 27(1 ) .( 2) ,( 3) ,( 1)4(5)        Artide 28(1 ) ,( 2) ,( 3) 4(4)
                                           and Artide 29(1 ) and ( 2)
Artide 27(7)                               Artide 28(5 ) & Artide 29(3 )
Artide 29                                  Artide 32
Artide 30                                  Artide 30
Artide 31(1 )                              Artide 27(1 )
Artide 31(2)                               Artide 27(2)
Artide 31(4)                               Artide 27(3)
Artide 33                                  Artide 38
Artide 34                                  Arti d e 39
Artide 35                                  Artide 40
Artide 36                                  Artide 41
Artide 37                                  Artide 42
Artide 38                                  Arti de 46
Artide 40                                  Artide 43
Artide 41                                  Artide 44
Artide 42                                  Artide 45
Artide 43                                  Artide 33
Artide 44                                  Artide 34 /
Artide 45                                  Artide 35
A rti. de 46                               Artide 36
Artide 47                                  Artide 37
Artide 48                                  Artide 48
Artide 49                                  Artide 49
Annex I                                    Annex I .
Annex II                                   Annex III
Annex III                                  Annex II
 ---pagebreak---                                                 - 66
                                                     THIS REGULATION
REGULATION ( EEC) No 1111 /77
A rti del
                                                     Artide 1(1 ), under (f)&(g ),
                                                     and ( 2). under (c )
                                                     Artide 13
Article 2
Article    3( 1 )                                    Artide 16(1 ) and ( 6)
Article    3(2)                                      Artide 17 ( 1 )
Arti de    3( 3)                                     Arti d e 16 ( 7)
Article    3(4)                                      Artide 16(8)
Arti de    4( 1 )                                     Artide 19(2) and ( 3),
                                                     subparagraph 1
Article 4( 2)                                        Artide 19(3), subparagraphs
                                                      2 and 3
 A rti cle 4( 3)                                     Artide 19(2), subparagraph 3
 Arti cL e 4(4)                                       Artide 19(5), subparagraph 2
 Article 4(4 )a                                       Artide 19(6)
                                         v.
 Arti ci e 4( 5)                                      Artide 19(7)
 Article 5                                            Artide 20
 Article 6                                             Artide 21
 Article 7                                            Artide 22
 Article 8                                             Artide 23
 Artide 9( 1 ) ,( 2) ,( 3) ,( 4) ,( 5) ,( 6) &( 7)    A rti de 24 and
                                                       Artide 25(2) & ( 4)
 A rti de 9( 8)                                       A rti des 28 and 29
  Arti de 9( 9)                                        Arti d e 25 ( 4)
  A rti de 9(10)                                      Artide 25(6), Artide 28(5)
                                                       and Artide 29( 3)
  Artide 10                                            Artide 39
  Artide 11                                            Artide 40
  Artide 12                                            Artide 41
  Artide 13                                            Artide 42
  Artide 15                                            Artide 43
  Artide 16                                            Artide 44      *
  Artide 17                                            Artide 45
  Artide 18                                            Arti d e 48
  Artide 20                                            Artide 49
   Annex I                                             Annex I