CELEX: 51978PC0183
Language: en
Date: 1978-04-28
Title: Proposal for a COUNCIL REGULATION (EEC) laying down general rules for the production refund on sugar used in the chemical industry (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 183
Vol. 1978/0060
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                             COM ( 78 ) 183 final
                                            Brussels . 28 April 1978
                           Proposal for a
                      COUNCIL regulation (EEC )
       laying down general rules for the production refund
       on sugar used in the chemical industry
       ( submitted to the Council "by the Commission )
  78 ) 183 final
 ---pagebreak---                                             EXPLANATORY MEMORANDUM
        1 . Article 9 ( 4 ) of the basic sugar Regulation ( EEC ) No 3330/ 74 ( 1 ) provides that
              production refunds may be granted on sugar and certain syrups covered by that
              Regulation when they are used in the manufacture of certain products of the
               chemical industry .
         2 . However , owing to the 1974/ 1975 shortage and more specifically , since 1 October
               1974 , no further production refund has been fixed .
              The situation has . changed in the meantime in the Community where the production
largely        exceeds the requirements and there is also a surplus on the world market , where
              prices are much lower than those in the Community .
               Furthermore , since 1968 and in particular after the long discussions .which led
               to the adoption of the Council Resolution of 5 April 1968 ( 2 ) and of the
               subsequent regulations in this sphere techniques for the manufacture of the
               chemical products listed in the Annexes to Regulation ( EEC ) No 765/ 68 < 3 > have
               changed considerably . At present , according to information received by the
               Commission from the trade and industrial organizations themselves , all these
                chemical products may be manufactured using either starches or sucrose .
               Consequently the Commission , for the sake of equality of treatment of two
                competing agricultural products , considers that in future arrangements should
                be provided for in respect of sucrose offering similar conditions to those provided
                for in respect of starches .
          3 . In view of the foregoing , the Commission proposes to the Council that the
        9^ production refund should correspond to that provided for , pursuant to
                Article 11 ( 1 ) ( a ) of the basic cereals Regulation ( EEC ) No 2727/ 75 ( 4 ), in
                respect of maize used in starch manufacture in the Community . This refund is
                currently 17 units of account per tonne of maize which would make it possible
                to have a production refund on white sugar of about 2.70 to 2.90 units of
                account per 100 kilograms . In this respect , the Commission points out that
                the quantity of sugar actually used in the Community during the last sugar year
                 in which refunds were applied, i.e. in 1973/ 1974 , was about 93 600 tonnes ( value
                 in white sugar ). In 1976/ 1977 this quantity would have been about 76.800 tonnes
                 ( value in white sugar ). The reintroduction of refunds might allow a return to the
                 level used in 1973/ 1974 , and even make it possible to exceed it by some thousands
                 of tonnes .
                  (1)  O.J. No L. 359 , 31.12,1974 , p. 1 .
                  ( 2) O.J. No C  33 , 10.4.1968 , p. 1 .
                  ( 3) O.J. No L  143 , 25.6.1968 , p. 1 .
                  ( 4) O.J. No L  281 , 1.11.1975 , p. 1 .
 ---pagebreak---             PROPOSAL  FOR A COUNCIL REGULATION
 Laying down general rules for the production refund on sugar used
              in the chemical industry
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 Having regard to Council Regulation ( EEC ) No 3330/ 74 of 19 December 1974 on the
 common organization of the market in sugar ( 1 ), as last amended by Regulation ( EEC )
 No 705/ 78 ( 2 ), and in particular Article 9 ( 5 ) thereof,
 Having regard to the proposal from the Commission ,
 Whereas under Article 9 ( 4 ) of Regulation ( EEC ) No 3330/ 74 production refunds may
 be granted on sugar and syrups covered by the said Regulation which are used in the
 manufacture of certain products of the chemical industry ;
 Whereas , as a result of technical developments in the chemical industry, the
products of this industry , which formerly could be manufactured only from sugar
 or from maize , may now be obtained from either one of these basic products ;
 whereas , consequently , with a view to    equality of treatment , provision should be
 made for the granting of a production refund on sugar corresponding to that granted
 on maize processed into starch after                  application of a yield coefficient ;
 whereas the amount of the production refund will therefore be a function of-
that on maise ;
 Whereas raw sugar and syrups containing' sucrose can also be used in the processing
 industry ; whereas the production refunds for those products should therefore "be
those for white sugar , adjusted by reference to their respective yields ;
 Whereas , having regard to the conditions under which penicillin is produced, the refund
                                                                                               {
 on that product should be determined on the basis of a special conversion ratio ;             j
                                                                                               ι
 Whereas , to avoid abuses , provi sion should be made for the production refund to be         j
granted only if other uses are excluded by means of controls ;                              . f
                                                                             ,  '            I {
_( 1 )            ^
       O.J. No L 359 , 31.12.1974 , p . 1 .
                                                                                             ■ ï
 ( 2 ) O.J. No L 94 , 8.4.1978 , p. 1 .                                                        |
 ---pagebreak---                                 - 2 -
  Whereas control can be facilitated if the production refund is paid only on
  application by the processor ;
  Whereas controls would , in certain cases , be rendered more effective if provision
  were also made for processors to be officially approved ; whereas the Member
  State in whose territory processing takes place should be free to decide
  whether or not to require      such approval ;
 Whereas Council Regulation . ( EEC ) No 765/ 68 of 18 Jane 1968 laying down general
  rules for the production refund on sugar used in the chemical industry ( 3 ), as last
 amended by Regulation ( EEC ) No 2477/ 74 ( 4 ), should be repealed ,  '
 HAS ADOPTED THIS REGULATION :
                                 Article 1
 A production refund shall be granted tinder the conditions laid down in the follow­
ing Articles , on the products listed in Article 1 ( l ) ( a) of Regulation ( EEC )
Wo 3330/74 and on the syrups of sucrose of sub-heading 17*02 D II of the Common
Customs Tariff ( hereinafter called ,rbasic products ") which are used in the manu­
facture of the products of the chemical industry listed in the Annex (hereinafter
called "chemical products ).
                                 Arti cle 2          –
 1 . The production refund     shall be granted by the Member State in whose
      territory processing of the basic products takes place .
 2 . The Member State may grant the refund only if customs control , or
      administrative inspection offering equivalent guarantees , ensures that the basic
      products are used for the purpose indicated in the application referred to in
      Article 3 .
 ( 3 ) O.J. No L 143 , 25.6.1968 , p. 1 .
 ( 4 ) O.J. No L 264 , 1.10.1974 , p. 71 .
 ---pagebreak---                                  Article ^
  1 . -Lhe production refund may , be granted only to processors who guarantee
       that the control provided for in Article 2 can be carried out at any time
        and who have submitted an application specifying that the basic product
       is to be used for the manufacture of a chemical product appearing in the
       list set out in the Annex hereto . _
   2 . The Member State concerned may make entitlement to the refund subject
       to prior approval of such processors in accordance with criteria to be
        laid down .
                                 Article â
       The production refund on white sugar shall be equal to the production refund
       fixed , pursuant to Article 11 (l ) (a) of Regulation (EEC) No 2727/75 (5)j
       as last amended by Regulation (EEC ) No 2560/77 ( 6 ), for maize used in the
       Community in the manufacture of starch , calculated per 100 kilogrammes of dry
       matter of glucose using a yield coefficient to be determined .
                                 Article "5
       The production refund per            100 kilogrammes of raw sugar shall be
        equal to one hundredth of the refund applicable on the use of white sugar ,
       multiplied by the yield of the raw sugar used , which yield shall be
       determined in accordance with Article 1 of Regulation (EEC) No 43l/68 ( 6).
                                Article 6
       The production refund per 100 kilogrammes of the sucrose syrups referred
       to in Article 1 shall be equal to one hundredth of the refund applicable
       on the use of white sugar , multiplied by the sucrose content of the syrups
       used .
 ( 5 ) OJ No L 281 , 1.11.1975 , p.l
, ( 6 ) OJ No L 303, 28.11.1977 , P.l
  ( 7 ) OJ No L 89 . 10.4.1968, p.3
 ---pagebreak---                                    ArUql9 7
     For the manufacture of one kilogramme of penicillin from the basic products
     referred to in Article 1 , Member State shall grant a production refund in
     respect of the quantity of white sugar actually used , provided that such
     quantity shall not exceed 15*3 kilograms .
                                   Article 8
                Regulation (EEC) No 765/68 is hereby repealed .
                                  ~Article_9
     This Regulation shall enter into force on the third day following its
     publication in the Official Journal of the European Communities#
This Regulation shall be binding in its entirety and directly applicable in all
Member States .                                                      ■
Done at Brussels ,                                         For the Council •
 ---pagebreak---           I
                                           A N H E X
                                       l' ist of Droducta
CCT
heading No                                  Description of goods
ex  15.11 Β         Glycerol , other than crude
ex  17-02     D II  Sorbose
    28.17 A         Sodium hydroxide ( caustic soda)
ex  23.45     3     Sodium silicates
ex  29.04     C I   Dio'ls
    29.04 C II      Manni'iol
    29 M C III      Sorbitol
    29.04     c IV  Other polyhydric alcohols
    29.05 A III     Sterol3 and inositols
ex  29.1° Β         i'î et hy1~ glucosides
ex  29.14 A or B    Mannitol and sorbitol esters
    29.15 A I       Oxalic acid , its salts and esters
ex  29.15 A V       Citraconic acid , itaconic acid , succinic acid , their salts and esters
    29.16 A     I   Lactic acid , its salts and esters
    29.16     A III Tartaric acid , its salts and esters
    29.16 A IV      Citric acid , its salts and esters
ex  29.16 A VIII    Glyceric acid , glycollic acid , saccharonic acid , isosaccharonic acid ,
                    hept -^. saccharic acid , their salts and esters
    29.16 G II      Kei&glutaric acid,levulinic acid , their salts ar.d esters
ex  29.1t>          Gluctironic acid , ketogluconic acid , their salts and estersjlacto–
                    biona.tcs
    29.19 A         Lac tophoaphatea
    29.23 D         Amino–acids
    29.35 A         Furfural \ fur.furol ) and benzofuran      ( coumarone )
    29.35 Β         "urfuryi and tetrahydrofxirfuryl alcohols
    29.35     ± J   Nucleia acids and their salts
ex  29.35 Q         Hydroxy; . ethylf urfural and derivatives , lactide , purine , pjrrimidins ,
                    luaitcl , i3omaltol , piperi&ine , piperazine , lactones of glue ax ic acid ,
                    lac ones of glucuronic acid,anii.yt!.ric compounds of nannitol and
                     soroitol , as for example sorbitan , excluding maltol a.nd isoinaltol ,
ex  29.39 Ε         Othor hormones
              Β
SX                  Fr . jctor-3^, its salts end esters , sorbose , its salts and. esters
    29 - 4 -1       Penicillins
ex  32 Λ 1 Β        Tannin others
    32 λ ; Α        Synthetic organic dyestuffs
    32 "-5 C        Synthetic organic products of . the type used aa "luminophores "
 ---pagebreak---          «
     OCT
    heading No                                ■ Description of goods
I
       32.05 D         Products of the kind known as optical bleaching agents , substantive
                       to the fibre
  ex   34.01           Translucent soaps
       34.02           Organic surface–active agents } surface–active preparations and
                       washing preparations f whether or not containing soap
  ex   35.03 B         Glues derived from bones , hides 9 nerves y . tendons or similar products
                       and fish glues
  ex   38.11 Β         Organo-copper preparations
  ex   38.11 D         Disinfectants , insecticides , fungicides , herbicides , rat poisons ,
                       anti-parasite preparations and similar products put up in form or
                       packings for sale by retail or presented in the form of articles
                       (for example sulphur-treated bands , wicks and candles , fly-papers)
                       excluding preparations based on ethylene dibroraide containing a
                       maximum of 7O/0 by weight of ethylene dibrornide (l,2 - dibromoethane )
                       presented in the form of emulsions containing an emulysifying product
                       in a proportion of 3-5$ by weight and having as diluent xylene or
                       petroleum
  ex   38.19 U         Foundry core binders based on synthetic resins } products fron cracking
                       of sorbitol , parting agents for exposed aggregate concrete , retarding
                       agents for cement hardening ? softening agents , foundry core binders
                     *
                       based on sodium silicate , expoxy polishers ) calcium polylactate }
                       lactoglycerides .
       39.01 C I       Phenoplasts
       39.01 c II      Aminoplasts
  ex   39 . 01 C VII   Polyalkylene glycol ethers
 ---pagebreak---                             FINANCIAL                 STATEMENT
                                                                                                  DAT2 l     13.4,1978
        1 . BUDCET LINE CCNCSRJJED « Chap « 64 ♦ art • 641 t pOst e 64H                                           p«m «
                                                                                                 CREDITS :
        2. action- 1 Proposal of Council Regulation (ESC ) on general rules , for application of
               production refunds on sugar used in the chemical industry                                                      .    ,
    I 3* i£0AL BA2IS 1 Article 9 ( 5 ) of Regulation ( EEC ) N0 333°/74
    V                                      1   11 1
    5 4 . objectives t Providestfor a new system of granting production refunds for sugar
    1                          used in The chemical industry and based on the principle of equal
    !                          treatment of sugar and maize
       5 . FINANCIAL CONSEQUENCE                        PEHIOD   0F 12 H0STHS  CURRENT FINANCIAL TEAR           I FOLLOWING FINANCIAL TEAR !
       ç.o expemiturs                                                                  um                                    ( 79 )
              –CHARGE !) TO TK5 EC BUDCET
              ' (-ÜÄ«-/! NTERVENTI ONS ) '                  2,6 MUA '                 1,75 M U A                            2,6 M DA          I
                                                        ( 3,1 mio. É.u.fc.) ( 2,1 mio E.u.a# )                     ( 3,1 mio E.u.a.)          I
                                                                                  *'•          î}
       5.1 RECEIPTS                                 <
                                                               1
              -CW RESOURCES OF THE EC
                ( LEVI K3/ CUSTOM DUTIES )                                                  \ -, ' '
             –NATIONAL
                                                                                                                        -
                                                                                                 1980                             1981
                                                       TEAR       1.Q7A. ...  TEAR .                              TEAS
        .0.1 fia'ria-vjùjai» PATTE35 OF expenditure . 2 ,6 mio u.a.                             2,6 mio u.a. * , 2,6 mio u . al
        , 1.1 pluriannual pattern OF RECEiPTS             ( 3,1 mio E.u.a .)            ,( 3,1 E.u.a .)                          (3,1 E.u.a.)
       5.2 KE7H0D CF CALCULAT! ON
                                     Estimated yearly quantity concerned v                                 "t '
                                     Estimated production refund *^27 , 4 u.a./t
                                     ( 17 u.a./t of toaize x 1,61 yield coefficient ) .
 J 6.0 FINANCING POSSIBLE WITH CREDITS INSCRIBED IN RELEVANT CHAPTER OF CURRENT BUDGET ?                                          Ϊ3Ε/Ν0
t
 fi 11 »! 1 1–       rw–«a–BW8BWWP7
| 6.1 FINANCING POSSIBLE BY TRANSFER BETWEEN CHAPTERS OF CURRENT BUDGET ?                                                 ,       TES/REk
I
      6.2 NECESSITY FOR A SUPPLEMENTARY BUDGET ?                                                                                  ÏE5/N0
I i.y C.HEDITU TO BS WRITTEN INTO FUTURE BUDGETS ?                                                                                TES/» -
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