31967R1009

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18.12.67 OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES No 308/ 1

REGULATION No 1009/67/EEC OF THE COUNCIL of 18 December 1967

on the common organisation of the market in sugar

THE COUNCIL OF THE EUROPEAN COMMUNITIES, cane production ; whereas for this reason it is advis­ able to fix minimum prices which must be respected Having regard to the Treaty establishing the Euro­ when sugar manufacturers buy beet, to lay down pean Economic Community, and in particular Articles basic Community provisions governing contractual 42, 43 and 227 thereof; relationships between buyers and sellers of beet, and to adopt appropriate provisions to this end for sugar Having regard to the proposal from the Commission ; cane producers ;

Having regard to the Opinion of the European Par­ Whereas the creation of a single Community market liament1 ; for sugar involves, apart from a single price system, the introduction of a single trading system at the ex­ Whereas the operation and development of the com­ ternal frontiers of the Community; whereas a trading mon market in agricultural products must be ac­ system including levies and export refunds, combined companied by the establishment of a common agri­ with intervention measures, also serves to stabilise cultural policy to include in particular a common the Community market, in particular by preventing organisation of the agricultural markets, which may price fluctuations on the world market from affecting take various forms, depending on the product prices ruling within the Community; whereas pro­ concerned ; vision should therefore be made for the charging of a levy on imports from third countries and the pay­ Whereas, to ensure that the necessary guarantees in ment of a refund on exports to those same countries respect of employment and standards of living are which would, in either case, cover the difference be­ maintained for Community growers of sugar beet and tween prices ruling inside and outside the Com­ sugar cane, provision should be made for measures munity if the world market price is lower than the to stabilise the sugar market; whereas to this end a Community price; whereas, where the reverse is true, target price and an intervention price for white sugar provision should be made for the introduction of cor­ should be fixed each year for the Community area responding machinery; having the largest surplus ; whereas derived inter­ vention prices should be fixed each year for other Whereas, in addition to the system described above Community areas, account being taken of regional and to the extent necessary for its proper working, price variations arising under natural conditions of provision should be made for regulating or, when the price formation on the market with a normal harvest situation on the market so requires, prohibiting the and of the processing stage ; whereas the objective use of 'inward processing arrangements'; whereas it is referred to above could be attained by making also desirable that refunds should be so fixed that provision for buying-in by intervention agencies at Community basic products used by the processing in­ the intervention prices ; whereas moreover denaturing dustry in the Community with a view to export are premiums for sugar rendered unfit for human con­ not placed at a disadvantage by inward processing ar­ sumption combined with an equalisation system for rangements which might induce that industry to give storage costs for sugar produced from raw materials preference to basic products imported from third (including molasses) of Community origin could countries ; whereas the introduction of the single mar­ serve the same purpose ; ket in sugar necessitates Community control of the inward processing trade; Whereas it is necessary to ensure that the regulation of the sugar market influences sugar beet and sugar Whereas it must be made possible for the competent authorities to keep a constant watch on trade move­ 1 OJ No 103 , 2.6.1967, p . 2092/67. ments to enable them to assess market trends and,

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where appropriate, to apply such provisions of this the granting of certain aids ; whereas, therefore, the Regulation as prove necessary; whereas to this end provisions of the Treaty which allow the assessment provision should be made for the issue of import and of aids granted by Member States and the prohibition export licences conditional on the lodging of a de­ of those which are incompatible with the common posit guaranteeing that the transaction for which the market should be made to apply to sugar; licence has been requested will be effected ; Whereas, however, beet and sugar production in Italy Whereas the levy system makes it possible to dispense is rendered difficult by climatic conditions and, in the with all other protective measures at the external case of beet production, by the additional problems frontiers of the Community ; whereas, however, the presented by the application of modern production common price and levy machinery may, in exceptional methods ; whereas provision should be made for circumstances, prove defective; whereas, in such granting temporary subsidies to both these activities ; cases, so as not to leave the Community market with­ out defence against disturbances which may arise Whereas Regulation No 44/67/EEC,1 as amended by therefrom after the import barriers which existed pre­ Regulation No 219/67/EEC,2 introduced certain viously have been removed, the Community should measures for a common organisation of the market in be enabled to take all necessary measures without de­ sugar for the 1967/68 marketing year; whereas the lay ; transition to the system established by this Regula­ tion must be effected as smoothly as possible; whereas Whereas the establishment of a single market in sugar to this end certain transitional measures may prove involves the removal at the internal frontiers of the necessary; whereas the same need may arise at each Community of all obstacles to the free movement of change-over from one marketing year to the next; the goods in question; whereas provision must therefore be made for the possibility of adopting appropriate measures ;

Whereas Community sugar production has often ex­ Whereas intervention is essential if the sugar price is ceeded consumption in recent years and whereas the world market situation is characterised by the exis­ to be guaranteed; whereas, in view of the special im­ portance of sugar production for the economy of the tence of large surpluses ; whereas it is therefore advis­ French overseas departments, provisions concerning able, for a transitional period, to make provision for measures to limit production and promote regional the Guarantee Section of the European Agricultural Guidance and Guarantee Fund must be made to ap­ specialisation ; ply to these departments ;

Whereas this aim could be achieved by allocating to Whereas the common organisation of the market in each factory or undertaking in the Community which sugar must take appropriate account, at the same processes beet or molasses into sugar a basic quota time, of the objectives set out in Articles 39 and 110 for which a price and sales guarantee would be given of the Treaty; by the Community and by limiting or withdrawing this guarantee for quantities manufactured over and above the basic quota, depending on whether or not Whereas, in order to facilitate implementation of the they exceed a certain ceiling ; proposed measures, a procedure should be provided for establishing close co-operation between Member Whereas, if it is to be successful, the limitation of States and the Commission within a Management Committee ; sugar production must lead to a limitation of sugar beet and sugar cane production ; whereas to this end special provisions on delivery contracts should be adopted, dealing in particular with the differentiation HAS ADOPTED THIS REGULATION : of beet prices ; whereas, non-differentiation of these prices can only be acceptable where provision is made for a further limitation of the guarantee ; Article 1 Whereas, in order to prevent sowing on too large a scale, it is advisable to allow for the possibility of 1 . The common organisation of the market in carrying part of one marketing year's production for­ sugar shall comprise a price and trading system and ward to the following marketing year, to be treated cover the following products : as part of that year's production ;

Whereas the establishment of a single market based 1 OJ No 40, 3.3.1967, p . 597/67. on a common price system would be jeopardised by 2 OJ No 135, 30.6.1967, p . 2904/67.

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Article 3 CCT heading Description of goods No 1 . An intervention price for white sugar shall be fixed each year for the Community area having the (a) 17.01 Beet sugar and cane sugar, solid largest surplus. (b) 12.04 Sugar beet, whole or sliced, fresh, dried or powdered; sugar cane 2. Derived intervention prices shall be fixed for (c) 17.03 Molasses, whether or not decolourised other areas, account being taken of the regional vari­ ations which, given a normal harvest and free move­ (d) ex 17.02 Other sugars (but not including lactose and glucose); sugar syrups (but not in­ ment of sugar, might be expected to occur in the cluding lactose syrup and glucose syrup); price of sugar under natural conditions of price for­ artificial honey (whether or not mixed mation . with natural honey); caramel ex 17.05 Flavoured or coloured sugars (but not 3 . The intervention prices referred to in para­ including lactose and glucose), syrups graphs 1 and 2 shall be valid for white sugar of the (but not including lactose syrup and glucose syrup) and molasses, but not standard quality to which the target price applies, un­ including fruit juices containing added packed, ex-factory, loaded into the means of trans­ sugar in any proportion port chosen by the purchaser.

4. The derived intervention prices for French over­ 2. For the purposes of this Regulation : seas departments shall, however, be valid for sugar f.o.b. and stowed aboard a seagoing vessel at the port — 'white sugar' means sugar falling within heading of embarkation . No 17.01 of the Common Customs Tariff con­ taining, in the dry state, 99-5% or more by weight For these departments, intervention prices shall also of sucrose determined by the polarimetric be fixed for raw sugar of a standard quality. These method ; shall be derived from the intervention prices for white sugar fixed for those departments, allowance — 'raw sugar' means sugar falling within heading No 17.01 of the Common Customs Tariff con­ being made for a uniform processing margin and a standard yield. taining, in the dry state, less than 99-5% by weight " of sucrose determined by the polarimetric method. 5 . The intervention price for the area having the largest surplus shall be fixed at the same time as the target price in accordance with the procedure laid TITLE I down in Article 43 (2) of the Treaty.

Prices 6. The Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, shall de­ Article 2 termine : — the standard quality for raw sugar and, before 1 1 . A target price for white sugar shall be fixed August of each year for the following marketing each year for the Community area having the largest year, surplus. This target price shall be valid for white sugar of a standard quality, unpacked, ex-factory, — the areas referred to in paragraph 2 and the de­ loaded on to the means of transport ch'osen by the rived intervention prices valid for these areas. purchaser. Article 4 2. Before 1 August of each year the target price for the marketing year beginning on 1 July of the follow­ 1 . Each year, for each beet-sugar-producing area ing calendar year shall be fixed in accordance with for which an intervention price is fixed : the procedure laid down in Article 43 (2) of the Treaty. — a minimum price for beet shall be fixed in accord­ ance with the provisions of paragraphs 2, 3 and 4 ; The same procedure shall be followed to determine : — a minimum price for beet outside the basic quota — the standard quality for white sugar and, at the shall be fixed in accordance with Article 28 . same time as the target price, These prices shall apply to a specified delivery stage — the Community area having the largest surplus . and a specified standard quality.

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2. When the minimum price for beet is being es­ Article 7 tablished, the intervention price for white sugar in the area in question and fixed values for the Community 1 . Conditions for purchasing sugar cane shall be representing : governed by agreements within the trade between cane growers and sugar manufacturers. — the processing margin;

— the yield; 2. Where no agreements within the trade exist, conditions of purchase, and in particular the mini­ — factories' or undertakings' receipts from sales of mum proportion of the intervention price for cane molasses ; and, sugar to be paid by sugar manufacturers to sellers of — where appropriate, costs incurred in delivering sugar cane, shall be determined in accordance with beet to factories the procedure laid down in Article 40.

shall be taken into account. Article 8 3 . At the same time as the target price is fixed, 1 . Subject to the provisions of Article 32 (2), — the minimum price for beet referred to in the first storage costs for white sugar and raw sugar, manu­ indent of paragraph 1 for the Community area factured from beet or cane harvested in the Com­ having the largest surplus shall be fixed, and munity, shall be reimbursed at a flat rate by the Member States . — the delivery stage and standard quality for beet shall be determined Member States shall charge a levy on each sugar manufacturer per unit of weight of sugar produced. in accordance with the procedure laid down in Article 43 (2) of the Treaty. The amount of the reimbursement shall be the same for the whole Community. The same rule shall apply 4. The Council, acting in accordance with the to the levy. voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, shall fix 2. The Council, acting in accordance with the the minimum price for beet referred to in the first in­ voting procedure laid down in Article 43 (2) of the dent of paragraph 1 for other areas at the same time Treaty on a proposal from the Commission, shall as the derived intervention prices . adopt rules for the application of paragraph 1 .

3 . The amount of the reimbursement and the levy Article 5 shall be fixed each year in accordance with the pro­ cedure laid down in Article 40. Other rules for the 1 . Subject to the provisions of Article 27 (4), < application of this Article shall be adopted in accord­ Article 29 ( 1 ) and provisions adopted pursuant to ance with the same procedure. Article 32 (3 ), sugar manufacturers buying beet for processing into sugar shall be required to pay at least the minimum price for sugar beet, adjusted by price Article 9 increases or reductions to allow for deviations from the standard quality. 1 . Throughout the marketing year intervention agencies designated by sugar-producing Member 2. The price increases and reductions shall be fixed States shall be required, under conditions to be laid in accordance with the procedure laid down in down in accordance with paragraphs 7 and 8, to buy Article 40 . in white sugar and raw cane sugar offered to them which has been manufactured from beet or cane har­ vested in the Community. Article 6 Intervention agencies shall buy in at the intervention The Council, acting in accordance with the voting price valid for the area in which the sugar is located procedure laid down in Article 43 (2) of the Treaty at the time of purchase. If the quality of the sugar on a proposal from the Commission, shall adopt out­ deviates from the standard quality for which the in­ line provisions dealing in particular with general con­ tervention price was fixed, that price shall be ad­ ditions governing purchasing, delivery, reception and justed by means of price increases and reductions. payment to which agreements within the trade at Community, regional or local level and contracts 2. Intervention agencies may grant denaturing pre­ concluded between buyers and sellers of beet must miums for sugar rendered unfit for human consump­ conform. tion .

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3 . Until 31 December 1969, the intervention sys­ — on the basis of prices on the world market, if it is tem described in paragraphs 1 and 2 shall also apply exported to third countries in the natural state or to raw beet sugar. following processing into the products listed in Annex II to the Treaty or into the goods listed in 4. From 1 January 1970, special measures may be the Annex to this Regulation. . taken for raw beet sugar should an abnormal situation arise . 2. The Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the 5 . Should difficulties arise in marketing sugar pro­ Treaty on a proposal from the Commission, shall duced in the French overseas departments, appropri­ adopt general rules for the sale of products which ate measures shall be taken. have been subject to intervention measures .

6. A production refund shall be granted on the 3 . Detailed rules for the application of this Article products listed in Article 1 ( 1 ) ( a), and the syrups shall be adopted in accordance with the procedure laid down in Article 40 . listed in Article 1 ( 1 ) (d) containing sucrose, used in the manufacture of certain products of the chemical industry. TITLE II 7. The Council, acting in accordance with the voting procedure laid down in Article 43 ( 2) of the Trade with third countries Treaty on a proposal from the Commission, shall determine : Article 11 — general rules for the application of the above paragraphs ; 1 . Imports or exports into or out of the Com­ — intervention prices for raw beet sugar ; munity of the products listed in Article 1 ( 1 ) shall be made conditional on the submission of an import or — the products of the chemical industry referred to export licence issued by Member States to any appli­ in paragraph 6 . cant irrespective of the place of his establishment in the Community. 8 . Detailed rules for the application of this Article shall be adopted in accordance with the procedure Such licences shall be valid for a transaction effected laid down in Article 40 and shall deal in particular within the Community on or after a date to be fixed with : by the Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the Treaty — the minimum quality and quantity requirements on a proposal from the Commission, but not later on intervention ; than 1 August 1969 . Until that date, such licences — the scales of price increases ad reductions appli­ shall be valid only for a transaction effected in the Member State which issued them. cable on intervention ; The issue of such licences shall be conditional on the — procedures and conditions for taking-over by in­ lodging of a deposit guaranteeing that importation or tervention agencies ; exportation is effected during the period of validity — conditions for granting denaturing premiums and of the licence ; this depbsit shall be forfeited in whole the amount of such premiums ; or in part if the transaction is not effected, or is only partially effected within that period. — conditions for granting the production refund and the amount of such refund. 2. The period of validity of licences and other de­ tailed rules for the application of this Article, which may include a time limit for the issue of licences, Article 10 shall Tse adopted in accordance with the procedure laid down in Article 40. 1 . Intervention agencies may only sell sugar on the domestic market at a price which is higher than the Article 12 intervention price . 1 . Each year a Community threshold price shall be They may however be authorised to sell sugar : fixed for white sugar, raw sugar and molasses.

— at a lower price when it has been rendered unfit 2. The threshold price for white sugar shall be the for human consumption ; ' same as the target price for the Community area

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having the largest surplus plus transport charges, cal­ Article 14 culated at a flat rate, from that area to the most dis­ tant deficit area in the Community. It shall apply to 1 . A levy shall be charged on imports of the prod­ the same standard quality as the target price. ucts listed in Article 1 ( 1 ).

3 . The threshold price for raw sugar shall be de­ 2. The levy on white sugar, raw sugar and molas­ rived from the threshold price for white sugar, a stan­ ses shall be equal to the threshold price less the c.i.f. ' dard processing margin and a standard yield being price. taken into account. 3 . The levy on raw sugar shall, where necessary, It shall apply to the same standard quality as the in­ be adjusted according to the yield. The levy on white tervention prices for raw sugar. sugar shall be charged on imports of raw sugar for purposes other than refining if that levy is higher 4. The threshold price for molasses shall be so than the levy applicable to raw sugar. If the levy on fixed that receipts for sales of molasses may reach the white sugar is higher than the levy on raw sugar, raw level of factories' and undertakings' receipts which sugar for refining shall be subject to customs control are taken into account pursuant to Article 4 when or to an administrative inspection offering equivalent minimum prices for beet are being fixed . It shall ap­ guarantees . ply to a standard quality.

4. The levy on the products listed in Article 5 . The Council, acting in accordance with the 1 ( 1) (b) shall be calculated at a standard rate on the , voting procedure laid down in Article 43 (2) of the basis of the sucrose content of each of these products Treaty on a proposal from the Commission, shall fix and the levy on white sugar. the threshold prices at the same time as the derived intervention prices . For purposes other than the manufacture of sugar, partial exemption from the import levy may be al­ lowed as a temporary measure in special instances in 6. The standard quality for molasses shall be de­ accordance with the procedure laid down in Article termined in accordance with the procedure laid down in Article 40 . 40 .

5 . The levy on the products listed in Article Article 13 1 ( 1 ) ( d) shall be calculated, where appropriate, at a standard rate on the basis of the sucrose content ( in­ 1 . A c.i.f. price shall be calculated for a Com­ cluding other sugars expressed as sucrose) of the munity frontier crossing point for white sugar, raw product concerned and the levy on white sugar. sugar and molasses . This price shall be calculated on The levies applicable to maple sugar and maple syrup the basis of the most favourable purchasing oppor­ falling within heading No 17.02 of the Common Cus­ tunities for each product on the world market, based toms Tariff shall, however, be limited to the amount on quotations or prices on that market, corrected to resulting from application of the rate of duty bound allow for any deviations from the standard quality within GATT. for which the threshold price is fixed. 6. Detailed rules for the application of this Article, 2. Where free quotations on the world market are including the margins within which variations in the not a determining factor for the offer price and where factors used for calculating the levy do not require that price is lower than world market prices, a special any alteration of the levy, shall be adopted in accord­ c.i.f. price calculated on the basis of the offer price ance with the procedure laid down in Article 40 . shall be substituted, solely in respect of the imports in question, for the c.i.f. price. 7. The levies referred to in this Article shall be fixed by the Commission. 3 . The Council, acting in accordance with the voting procedure laid down in Article 43 ( 2) of the Treaty on a proposal from the Commission, shall de­ Article 15 termine the frontier crossing point. 1 . The levy to be charged shall be that applicable 4. Detailed rules for calculating the c.i.f. prices on the day of importation . shall be adopted in accordance with the procedure laid down in Article 40 . The corrective amounts re­ 2. The levy may, however, be fixed in advance for ferred to in paragraph 1 shall be fixed in accordance imports of the products listed in Article 1 ( 1 ) ( a) and with the same procedure. ( c).

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In that event the levy applicable on the day on which Article 17 the application for the licence is lodged, adjusted on the basis of the threshold price in force on the day of 1 . To the extent necessary to enable the products importation, shall be applied to imports to be effected listed in Article 1 ( 1 ) ( a), (c) and (d) to be exported during the validity of the licence, provided the in the natural state, or in the form of goods listed in party concerned so requests when applying for the li­ the Annex to this Regulation, on the basis of quo­ cence. A premium to be added to the levy may be tations or prices for the products listed in Article fixed at the same time as the levy. 1 ( 1 ) ( a) and (c) on the world market, the difference between those quotations or prices and prices within 3 . The Council, acting in accordance with the the Community may be covered by an export refund. voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, shall 2 . The refund shall be the same for the whole adopt rules for the application of this Article; in par­ Community. It may be varied according to use or ticular it shall decide upon the conditions under •destination . which advance fixing may take place and the rules for fixing premiums. The refund shall be granted on application by the party concerned. 4. Where the conditions referred to in paragraph 3 The refund for raw sugar may not exceed the refund exist, a decision to apply the system provided for in for white sugar. paragraph 2 shall be taken in accordance with the procedure laid down in Article 40. Once these con­ When the refund is being fixed particular account shall be taken of the need to establish a balance be­ ditions no longer exist, the decision shall be repealed in accordance with the same procedure. tween the use of Community basic products in the manufacture of processed goods for export to third It may be decided in accordance with the same pro­ countries and the use of third country products cedure to apply the system provided for in paragraph brought in under inward processing arrangements. 2 in whole or in part to each of the products listed in Article 1 ( 1 ) (d). The Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, shall adopt 5 . The premiums shall be fixed, where appropri­ general rules for granting refunds, for fixing the ate, by the Commission. amount of such refunds, and for fixing such refunds in advance . Article 16 Refunds shall be fixed at regular intervals in accord­ ance with the procedure laid down in Article 40. 1 . If the c.i.f. price for white sugar or raw sugar is Where necessary the Commission may, at the request higher than the threshold price, a levy equal to the of a Member State or on its own initiative, alter the difference between those prices shall be charged on refunds in the intervening period. exports of the .product in question . The levy to be charged, if any, shall be that applicable on the day of 3 . The Council, acting in accordance with the exportation. voting procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, shall 2 . Under the conditions described in the first sen­ adopt general rules applicable to refunds where these tence of paragraph 1 , a subsidy may be granted on are awarded by tender. imports of the product in question. 4. Detailed rules for the application of this Article 3 . The Council, acting in accordance with the shall be adopted in accordance with the procedure voting procedure laid down in Article 43 (2) of the laid down in Article 40 . Treaty on a proposal from the Commission, shall adopt rules for the application of paragraphs 1 and 2. Article 18 4. Provisions corresponding to those of paragraph 1 and to the rules for its application may be adopted 1 . Provision may be made for a production refund for the products listed in Article 1 ( 1 ) (b), (c) and on molasses intended for the manufacture of certain (d), in accordance with the procedure laid down in products if the c.i.f. price for molasses remains con­ Article 40 . siderably below the level of the threshold price for a prolonged period . 5 . The levies referred to in paragraph 1 , together with any levies resulting from the application of 2 . The rules necessary for the application of this paragraph 4, shall be fixed by the Commission. Article, and in particular a list of the products re­

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ferred to in paragraph 1, shall be adopted by the cil, acting in accordance with the voting procedure Council acting in accordance with the voting pro­ laid down in Article 43 (2) of the Treaty on a pro­ cedure laid down in Article 43 (2) of the Treaty on a posal from the Commission, the following shall be proposal froni the Commission. prohibited :

— the levying of any customs duty or charge having Article 19 equivalent effect;

— the application of any quantitative restriction or 1 . To the extent necessary for the proper working measure having equivalent effect. of the common organisation of the market in sugar, the Council, acting in accordance with the voting The restriction of import or export licences to a procedure laid down in Article 43 (2) of the Treaty specified category of those entitled to receive them on a proposal from the Commission, may prohibit, in shall be one of the measures considered as having ef­ whole or in part, the use of inward processing ar­ fect equivalent to a quantitative restriction. rangements in respect of:

— the products listed in Article 1 (1 ) which are in­ Article 21 tended for the manufacture of the products listed in Article 1 ( 1 ) (d ); 1 . If, by reason of imports or exports, the Com­ — and, in special instances, the products listed in munity market in one or more of the products listed Article 1 ( 1 ) which are intended for the manu­ in Article 1 ( 1 ) experiences or is threatened with facture of the goods listed in the Annex to this serious disturbances which may endanger the Regulation. objectives set out in Article 39 of the Treaty, appro­ priate measures may be applied in trade with third 2 . Community provisions to regulate inward pro­ countries until such disturbance or threat of dusturb­ cessing trade in the products listed in Article 1 ( 1 ) ance has ceased . shall be adopted not later than 1 July 1968 . The Council, acting in accordance with the voting 3 . Rules to be applied until the provisions men­ procedure laid down in Article 43 (2) of the Treaty tioned in paragraph 2 enter into force shall be on a proposal from the Commission, shall adopt de­ adopted in accordance with the procedure referred to tailed rules for the application of this paragraph and define the cases in which and the limits within which in paragraph 1 ; they shall apply in respect of: Member States may take protective measures. ( a) the rate of yield to be taken when the quantity of Article 1 ( 1 ) products used in the manufacture of 2 . If the situation mentioned in paragraph 1 arises, processed goods for export is being determined ; the Commission shall, at the request of a Member State or on its own initiative, decide upon the neces­ (b) the determination, for the purpose of applying . sary measures ; the measures shall be communicated the levy, of the quantity of products used in the to the Member States and shall be immediately appli­ manufacture of goods put into free circulation. cable. If the Commission receives a request from a Member State, it shall take a decision thereon within 4. For the purpose of this Article, 'inward pro­ twenty-four hours following receipt of the request. cessing arrangements' means all those provisions de­ termining the conditions under which products from 3 . The measures decided upon by the Commission third countries are used within the Community in the may be referred to the Council by any Member State manufacture of goods for export and enjoy exemp­ within a period of three working days following the tion from the levies applicable to them. day on which they were communicated. The Council shall meet without delay. It may amend or repeal the Article 20 measures in question in accordance with the voting procedure laid down in Article 43 (2 ) of the Treaty. 1 . The general rules for the interpretation of the Common Customs Tariff and the special rules for its application shall apply to the tariff classification of TITLE III products covered by this Regulation ; the tariff nomenclature resulting from application of this Regu­ Transitional provisions lation shall be incorporated in the Common Customs Tariff from the date on which the latter is fully ap­ Article 22 plied . 1 . Articles 23 to 33 , and in particular the pro­ 2. Save as otherwise provided in this Regulation or visions concerning national basic quantities, their dis­ where derogation therefrom is decided by the Coun­ tribution between factories or undertakings and price

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differentiation, shall be repealed with effect from 1 2. Until the 1970/71 marketing year the coefficient July 1975 . referred to in paragraph 1 shall be 1-35 . The coef­ ficient may be adjusted, in the light of the actual trend 2. Definitive arrangements applicable from 1 July of production and consumption, by the Council act­ 1975 shall be adopted in accordance with the pro­ ing in accordance with the voting procedure laid cedure laid down in Article 43 (2) of the Treaty. The down in Article 43 (2) of the Treaty on a proposal from the Commission . definitive arrangements shall not involve any dis­ crimination between Community producers . The coefficient for the 1971 /72 to 1974/75 marketing years shall be fixed at the same time as the target Article 23 price in accordance with the procedure laid down in Article 43 (2) of the Treaty, account being taken of 1 . Member States shall fix a basic quota for each the trend of production from the point of view of factory or for each undertaking producing sugar on specialisation and marketing opportunities . their territory. Without prejudice to provisions adop­ ted pursuant to paragraph 3 or 4, this basic quota shall be established by multiplying the average an­ Article 25 nual sugar production of the factory or undertaking concerned during the 1961 /62 to 1965/66 marketing 1 . Subject to the provisions ,of Article 32, and un­ years by. a coefficient expressing the ratio of the less a * shortage is found to exist in the Community, Member State's basic quantity to the average annual the quantity of sugar produced in excess of the maxi­ sugar production of . that State during the same mum quota fixed for a factory or undertaking in any period . given marketing year shall not be disposed of on the internal market. The basic quantities shall be : 2 . The provisons of Articles 8 , 9 , 16 and 17 shall — for Germany : 1 750 000 metric tons of white not apply to the quantity referred to in paragraph 1 sugar ; which is not carried forward to the following market­ — for France: 2 400 000 metric tons of white sugar; ing year pursuant to Article 32 .

— for Italy : 1 230 000 metric tons of white sugar ; 3 . Detailed rules for the application of this Article shall be adopted in accordance with the procedure — for the Netherlands : 550 000 metric tons of white laid down in Article 40. These detailed rules shall sugar ; provide in particular for the levying of a charge — for BLEU : 550 000 metric tons of white sugar . where the quantity referred to in paragraph 2 has been disposed of in whole or in part on the internal market. 2. When a Member State fixes basic quotas by undertaking, it shall take the necessary steps to take the interests of beet and cane growers into account. Article 26 3 . General rules for the application of paragraph 1 and any derogation from the provisions of that para­ 1 . The Council, acting in accordance with the graph shall be adopted by the Council acting in ac­ voting procedure laid down in Article 43 (2) of the cordance with the voting procedure laid down in Treaty on a proposal from the Commission, shall fix Article 43 (2) of the Treaty on a proposal from the a guaranteed quantity valid for the Community at the Commission . same time as the derived intervention prices.

4. Should detailed rules for the application of this 2. This quantity shall be equal to 105% of antici­ Article prove necessary, they shall be adopted in ac­ pated human consumption in the Community, ex­ cordance with the procedure laid down in Article 40. pressed in terms of white sugar, during the marketing year for which the guaranteed quantity is fixed.

Article 24 Article 27 1 . Member States shall fix a maximum quota for the factories or the undertakings for which they have 1 . Subject to the provisions of Article 32, Member fixed a basic quota. This maximum quota shall be States shall impose a production levy on manu­ determined by multiplying the basic quota by a coef­ facturers of sugar which is outside the basic quota ficient . but within the maximum quota.

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2. The production levy shall be calculated per unit pending on whether the quantities of sugar to be of weight by dividing total losses incurred in market­ manufactured from it are • ing the quantity produced in the Community outside ( a ) within the basic quota ; the guaranteed quantity by the sum of the quanti­ ties produced outside the basic quota by Community ( b ) outside the basic quota but within the maximum factories or undertakings. When this calculation is quota ; being made quantities outside the maximum quotas (c) outside the maximum quota . and quantities carried forward to the next marketing year pursuant to Article 32 shall be ignored . For each factory or undertaking, sugar manufacturers Detailed rules for the application of this paragraph shall inform the Member States in which the factory shall be adopted in accordance with the procedure or undertaking concerned produces sugar of : laid down in Article 40 . — the quantities of beet referred to under ( a) for which pre-sowing contracts were signed and the 3 . The production levy may not, however, exceed a maximum amount . sugar content on which these contracts were based ; 4. Sugar manufacturers may require sellers to — the coresponding yield expected. reimburse the production levy in respect of a quantity of beet or cane corresponding to the quantity of sugar Member States may require additional information to on which the production levy is charged, up to a be supplied to them. percentage which may be varied according to the above-mentioned raw materials. Sugar manufacturers 2. By way of derogation from Article 27 (4) and shall communicate to the Member State concerned, Article 29 ( 1 ), any sugar manufacturer who has not for each factory or undertaking, the sum of the signed pre-sowing delivery contracts for a quantity of amounts reimbursed to them by beet or cane sellers . beet equal to the basic quota, at the minimum price for beet referred to in the first indent of Article 4 ( 1 ), Article 28 shall be required to pay this minimum price for all beet processed into sugar in the factory or under­ The Council, acting in accordance with the voting taking concerned. procedure laid down in Article 43 (2) of the Treaty on a proposal from the Commission, shall fix : 3 . The Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the — minimum prices for beet outside the basic quota Treaty on a proposal from the Commission, shall for the areas referred to in Article 4 ( 1 ); adopt general rules for the application of para­ — the percentage referred to in Article 27 (4); graph 1 .

— the maximum amount of the production levy cal­ 4. Detailed rules for the application of this Article culated in such a way that the minimum prices shall be adopted in accordance with the procedure for beet outside the basic quota are respected, laid down in Article 40. As far as paragraph 2 is con­ at the same time as the derived intervention prices . cerned, they shall take the carry-forward effected pursuant to Article 32 into account.

Article 29 Article 31 1 . Sugar manufacturers may buy beet intended for 1 . Each Member State shall be free to decide that the production of sugar in excess of the maximum quota fixed for the factory or undertaking concerned the provisions of Article 30 are not to apply on its at a price which is lower than the minimum prices territory. for beet referred to in Article 4 ( 1 ). 2. Each Member State shall, however, be free to 2 . The provisons of paragraph 1 shall not apply if limit the field of application of the decision referred the excess quantities of sugar are carried forward to to in paragraph 1 to specific factories or undertakings the following marketing year pursuant to Article 32. subject to certain conditions and in line with rules to be adopted by the Council acting in accordance with the voting procedure laid down in Article 43 (2) of Article 30 the Treaty on a proposal from the Commission.

1 . In contracts for the delivery of beet for the 3 . A Member State may only decide that the pro­ manufacture of sugar, beet shall be differentiated de­ visions of Article 30 are not to apply for a fixed

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period. If it so decides, a special maximum quota 2. Factories or undertakings may carry forward calculated by multiplying the basic quota by a coef­ part of their production to the following market year ficient valid for the period shall be fixed for each only if: factory or undertaking concerned. — they have notified the Member States concerned In this event, the Member States shall fix the maxi­ before 1 February of the quantity to be carried mum quota for the factory or undertaking concerned forward ; for each marketing year of the period in question, — they keep the quantity carried forward in store and not later than 30 June for the current marketing from 1 February to 31 January of the following year, without taking the provisions of Article 24 into year; storage costs for this period shall not be re­ account. The sum of the maximum quotas for the funded under the provisions of Article 8 . period in question for each factory or undertaking must be equal to the special maximum quota fixed 3 . Provisions concerning: for that factory or undertaking. , — payment for beet used to manufacture the quan­ The maximum quota may not be higher than the maximum quota determined in accordance with the tity of sugar carried forward; method of calculation described in Article 24 (2). — contributions by beet or cane sellers towards the cost of storing the quantities carried forward ;- For the 1968/69 marketing year, the maximum quota may not be lower than the basic quota. The maxi­ — agreement between beet or cane sellers and sugar mum quota for the next two marketing years may manufacturers as a precondition for carrying for­ not be lower than the basic quota unless production ward is lower than the basic quota. shall be adopted by the Council acting in accordance For the period from 1 July 1968 to 30 June 1971 the with the voting procedure laid down in Article 43 (2) decision not to apply the provisions of Article 30 of the Treaty on a proposal from the Commission. shall be taken before 1 March 1968 and the special maximum quota shall be calculated by multiplying 4. Detailed rules for the application of this Article the basic quota allocated to the factory or under­ shall be adopted in accordance with the procedure taking concerned for the 1968 /69 marketing year by laid down in Article 40. a coefficient of 3-5 .

Article 33 4. For the period or periods subsequent to 30 June 1971 the Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the 1 . Where the tonnage of sugar produced in a Member State during the 1967/68 marketing year 1 August 1970 : exceeds the quantity referred to in Article 7 ( 1) of — the length of each period for which a decision not Regulation No 44/67/EEC, adjusted in accordance to apply the provisions of Article 30 may be with Article 8 (3 ) of that Regulation, this excess shall taken ; be distributed by Member States as carried-forward production between factories or undertakings after — the coefficient to be applied to the basic quota al­ deduction of the quantities of sugar which have been located to the factory or undertaking concerned, exported to third countries in the natural state or in for a marketing year still to be determined, in or­ the form of processed products and which have not der to calculate a special maximum quota for the benefited from any export refund, production refund period in question. or denaturing premium within the framework of a common organisation of the markets. 5 . General rules for the application of paragraph 3 shall be adopted, if necessary, in accordance with the 2. The quantities to be carried forward shall be procedure laid down in Article 40. treated as production within the basic quota for the 1968/69 marketing year. The sum of these quantities Article 32 for each Member State and other detailed rules for the application of this Article shall be adopted in ac­ 1. Where the provisons of Article 30 apply, each cordance with the procedure laid down in Article 40. factory or undertaking may carry forward that part of its production which is outside the basic quota, up Article 34 to a maximum corresponding to 10% of the basic quota, to the following marketing year to be treated 1 . During the 1968/69 to 1974/75 marketing years, as part of that year's production. Italy may grant adaptation subsidies to its beet grow­ No production may be carried forward to the ers and to its beet processing industry. These subsi­ 1975 /76 marketing year. dies shall be abolished on 30 June 1975 .

Official Journal of the European Communities 315

2 . The subsidy to beet growers may not exceed price levels at the change-over from one marketing 1-10 units of account per metric ton of beet with a year to the next may be adopted in accordance with 16% sugar content processed into sugar. Subsidies the procedure laid down in Article 40 . may only be granted for the quantity of beet used to produce a quantity of white sugar within the basic Article 38 quota.

Member States and the Commission shall communi­ 3 . The subsidy to the beet processing industry may cate to each other the information necessary for im­ not exceed 1*46 units of account , per 100 kilo­ plementing this Regulation. Rules for the communi­ grammes of white sugar manufactured from beet cation and distribution of such information shall be grown in Italy. It may only be granted in respect of a adopted in accordance with the procedure laid down quantity of white sugar which is within the basic in Article 40 . quota .

Article 39 TITLE IV 1 . A Management Committee for Sugar (herein­ after called the 'Committee') shall be established, General provisions consisting of representatives of Member States and presided over by a representative of the Commission. Article 35 2. Within the Committee the votes of Member States shall be weighted in accordance with Article 1 . The following shall be prohibited in the internal 148 (2) of the Treaty. The Chairman shall not vote. trade of the Community;

— the levying of any customs duty or charge having equivalent effect; Article 40

— any quantitative restriction or measure having 1 . Where the procedure laid down in this Article is equivalent effect; to be followed, the Chairman shall refer the matter to — recourse to Article 44 of the Treaty. the Committee either on his own initiative or at the request of the respresentative of a Member State. 2. Goods listed in Article 1 ( 1 ) which are manu­ factured or obtained from products to which Article 2. The representative of the Commission shall sub­ 9 (2) and Article 10 ( 1 ) of the Treaty do not apply mit a draft of the measures to be taken. The Com­ shall not be admitted to free circulation within the mittee shall deliver its Opinion on such measures Community. within a time limit to be set by the Chairman accord­ ing to the urgency of the questions under consider­ ation. An Opinion shall be adopted by a majority of Article 36 twelve votes .

Save as otherwise provided in this Regulation, 3 . The Commission shall adopt measures which Articles 92 to 94 of the Treaty shall apply to the shall apply immediately. However, if these measures production of and trade in the products listed in are not in accordance with the Opinion of the Com­ Article 1 ( 1 ). mittee, they shall forthwith be communicated by the Commission to the Council . In that event the Com­ mission may defer application of the measures which Article 37 it has adopted for not more than one month from the date of such communication . 1 . The Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the The Council, acting in accordance with the voting Treaty on a proposal from the Commission, shall, in procedure laid down in Article 43 (2) of the Treaty, respect of sugar in stock on 1 July 1968 . adopt may take a different decision within one month. provisions concerning the measures needed to offset the difference between national sugar prices and prices valid from 1 July 1968 . Article 41

2 . The requisite provisions to prevent the sugar The Committee may consider any other question re­ market being disturbed as a result of an alteration in ferred to it by its Charman either on his own initia­

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tive or at the request of the representative of a Mem­ Article 44 ber State. This Regulation shall be so applied that appropriate Article 42 account is taken , at the same time, of the objectives set out in Articles 39 and 110 of the Treaty. At the end of the transitional period, the Council, acting in accordance with the voting procedure laid down in Article 43 (2) of the Treaty on a proposal Article 45 from the Commission, shall decide in the light of ex­ perience whether to retain or amend the provisions of Article 40 . > 1 . Should transitional measures be necessary to facilitate transition to the system established by this Regulation, in particular if the introduction of the Article 43 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 1 . Regulation No 25 1 on the financing of the com­ in Article 40. They shall be applicable until 30 June mon agricultural policy and the provisions adopted 1969 at the latest. to implement that Regulation shall apply to the mar­ kets in the products listed in Article 1 ( 1 ) from the date on which this Regulation begins to apply. 2. Such measures may, however, remain applicable until 30 June 1970 as far as the method of payment for beet in Italy is concerned . 2. From the date of application of this Regulation, Article 40 (4) of the Treaty and the provisions adopted for the application of that Article shall, as far as the Guarantee Section of the European Agricultural Article 46 Guidance and Guarantee Fund is concerned, apply to the French overseas departments in respect of the markets in the products listed in Article 1 ( 1 ). 1 . This Regualtion shall enter into force on the third day following its publication in the Official Journal of the European Communities. 3 . The premium provided for in Article 15 (2) shall be considered to be a levy in relation to third countries within the meaning of Article 11 (4) of 2. It shall apply from 1 July 1968 , with the ex­ Council Regulation No 130/66/EEC2 of 26 July 1966 ception of Articles 6, 7, 23, 24, 30, 31 , 33 , 38 and 45, on the financing of the common agricultural policy. which shall apply immediately.

4. Financial arrangements concerning the levies 3 . Regulation No 44/67/EEC and the provisions provided for-in Articles 8 ( 1 ), 25 (3 ) and 27 shall be adopted in application thereof shall be repealed with decided upon before 31 December 1967. effect from 1 July 1968 .

This Regulation shall be binding in its entirety and directly applicable in all Member States .

Done at Brussels, 18 December 1967.

For the Council

The President

H. HOECHERL

1 OJ No 30, 20.4.1962, p . 991/62. 2 OJ No 165 , 21.9.1966, p . 2965/66.

Official Journal of the European Communities 317

ANNEX

CCT heading Description of goods No

ex 17.04 Sugar confectionery, not containing cocoa : B. Chewing gum C. Other

ex 18.06 Chocolate and other food preparations containing cocoa and sugar

ex 19.02 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, containing sugar

ex 19.08 Pastry, biscuits, cakes and other fine bakers' wares, whether or not containing cocoa in any proportion, containing sugar

ex 21.06 Natural yeasts (active or inactive)

ex 21.07 Food preparations not elsewhere specified or included, containing sugar

ex 22.02 Lemonade, flavoured spa waters and flavoured aerated waters, and other non-alcoholic beverages, containing sugar, not including fruit and vegetable juices falling within heading No 20.07

ex 22.09 C III Spirituous beverages, other, containing sugar

29.04 C II Mannitol, sorbitol