Commission Regulation (EC) No 952/2006 of 29 June 2006 laying down detailed rules for the application of Council Regulation (EC) No 318/2006 as regards the management of the Community market in sugar and the quota system

CHAPTER I

INTRODUCTORY PROVISIONS

Article 1

This Regulation lays down detailed rules for the application of Regulation (EC) No 318/2006, as regards in particular the determination of production, approval of manufacturers and refiners, the price and quota system, the conditions for buying sugar into intervention and selling sugar from intervention and the private storage for the marketing year 2007/2008.

Article 2

Definitions

For the purpose of this Regulation:

(a) ‘raw material’ means beet, cane, chicory, cereals, sugar for refining or any other intermediate form of these products intended for processing into an end product;

(b) ‘end product’ means sugar, inulin syrup or isoglucose;

(c) ‘manufacturer’ means an undertaking producing end products, with the exception of refiners as defined in point 13 of Article 2 of Regulation (EC) No 318/2006;

(d) ‘place of storage’ means a silo or warehouse.

CHAPTER II

ESTABLISHING PRODUCTION

Article 3

Sugar production

For the purposes of Title II of Regulation (EC) No 318/2006, ‘sugar production’ means the total quantity, expressed as white sugar, of:

(a) white sugar;

(b) raw sugar;

(c) invert sugar;

(d) syrups belonging to one of the following categories, hereinafter called ‘syrups’: (i) sucrose or invert sugar syrups which are at least 70 % pure and are produced from sugar beet, (ii) sucrose or invert sugar syrups which are at least 75 % pure and are produced from sugar cane.

Sugar production shall not include:

(a) quantities of white sugar produced from white sugar, raw sugar or syrups which were not produced in the undertaking which manufactured the white sugar;

(b) quantities of white sugar produced from white sugar, raw sugar, syrups or sugar sweepings which were not produced during the marketing year in which the white sugar was manufactured;

(c) quantities of raw sugar produced from syrups which were not produced in the undertaking which manufactured the raw sugar;

(d) quantities of raw sugar produced from syrups which were not produced during the marketing year in which the raw sugar was manufactured;

(e) quantities of white or raw sugar processed into white sugar during the marketing year in question by the undertaking which produced them;

(f) quantities of syrups processed into sugar or invert sugar during the marketing year in question by the undertaking which produced them;

(g) quantities of sugar, invert sugar and syrups produced under inward-processing arrangements;

(h) quantities of invert sugar produced from syrups which were not produced by the undertaking which manufactured the invert sugar;

(i) quantities of invert sugar produced from syrups which were not produced during the marketing year in which the invert sugar was manufactured.

Sugar production shall be expressed in terms of white sugar in the following way:

(a) in the case of white sugar, disregarding differences in quality;

(b) in the case of raw sugar, on the basis of yield determined in accordance with point III of Annex I to Regulation (EC) No 318/2006;

(c) in the case of invert sugar, by multiplying production of invert sugar by the coefficient 1;

(d) in the case of syrups on the basis of extractable sugar content determined in accordance with paragraphs 5 and 6;

(e) in the case of syrups from invert sugar on the basis on sugar content as determined by the High Performance Liquid Chromatography method.

However, the extractable sugar content can be established, for an entire marketing year, on the basis of the real yield in syrups.

Article 4

Isoglucose production

Notification shall be made to the Member State on whose territory each facility is situated. The Member State may require the undertaking to furnish additional information in this respect.

Article 5

Inulin syrup production

‘Purity’ means the percentage of monosaccharides and disaccharides in the dry matter, as determined by the International Commission for Uniform Methods of Sugar Analysis method, hereinafter referred to as the ‘ICUMSA method’ (ICUMSA method GS7/8/4-24).

Inulin syrup production shall be recorded by means of the combination of the following operations:

(a) physical metering of the volume of the product as such immediately after leaving the first evaporator after each hydrolysis and before any operation to separate the glucose and fructose constituents or to produce mixtures;

(b) determination of the dry matter content by refractometry and measurement of the fructose content by weight in the dry state, on the basis of daily representative sampling;

(c) conversion of the fructose content to 80 % by weight in the dry state by multiplying the quantity determined in dry matter by the coefficient representing the ratio between the measured fructose content of that quantity of syrup and 80 %;

(d) expression as sugar/isoglucose equivalent by applying the coefficient 1.9.

This information shall be submitted to the Member State on whose territory each facility is situated. That Member State may require undertakings to furnish additional information, in particular to ensure that the by-products referred to in the first subparagraph are not used as sweetening matter for human consumption on the Community market.

The Member State concerned shall send the Commission not later than 31 January each year a detailed report containing information on the previous year. The first report shall be sent not later than 31 January 2007.

Article 6

Production of an undertaking

For a given marketing year, the total sugar, isoglucose or inulin syrup production of an undertaking shall be the production referred to in paragraph 1:

— plus the quantity of sugar, isoglucose or inulin syrup carried over to that marketing year and minus the quantity of sugar, isoglucose or inulin syrup carried over to the following marketing year, in accordance with Articles 14 and 19 of Regulation (EC) No 318/2006 respectively,

— plus the quantity produced by processors under contract in accordance with paragraph 3 and minus the quantity produced by the undertaking on behalf of principals under contract in accordance with paragraph 3.

Where two undertakings make a signed application in writing to the Member State concerned, the quantity of sugar produced by an undertaking (hereinafter called the processor) under contract from materials supplied shall be treated as part of the production of the undertaking (hereinafter called the principal) which had the sugar produced under that contract provided that one of the following conditions is met:

(a) the total sugar production of the processor is less than its quota;

(b) the total sugar production of the processor and of the principal is more than the sum of their quotas; or (i) for the marketing year 2006/2007, the sum of the thresholds fixed for them in accordance with Article 3(2) of Commission Regulation (EC) No 493/2006 (¹); (ii) for the marketing year 2007/2008, the sum of the thresholds fixed for them in accordance with Article 1(2) of Commission Regulation (EC) No 290/2007 (²); (iii) from the marketing year 2008/2009, the sum of the thresholds fixed for them in accordance with Article 19(2) of Regulation (EC) No 318/2006 or where applicable with Article 19a(1) of that Regulation.

The total sugar production, as referred to in point (b) of the first subparagraph, of an undertaking shall be the production referred to in paragraph 1 plus the quantity carried forward from the previous marketing year and the quantity produced by processors under contract on behalf of that undertaking, and minus the quantity produced by the undertaking under contract on behalf of principals.

Instead of the quantities actually produced, as referred to in the second subparagraph, the competent authorities of the Member States may, where this total is larger, use estimated production calculated on the basis of the delivery contracts signed by the undertakings.

CHAPTER III

APPROVAL OF MANUFACTURERS AND REFINERS

Article 7

Application for approval

Approval may be obtained by undertakings which apply for it and which operate as:

(a) a sugar manufacturer,

(b) an isoglucose manufacturer,

(c) an inulin syrup manufacturer,

(d) a full-time refiner within the meaning of point 13 of Article 2 of Regulation (EC) No 318/2006.

The application referred to in the first subparagraph shall be lodged with the competent authority of the Member State or Member States in which the undertaking concerned operates.

An undertaking may apply for approval for one or more of the activities referred to in the first subparagraph.

Article 8

Commitments

For the purposes of approval, the undertaking shall agree in writing to:

(a) notify without delay to the competent authority of the Member State any amendment of the information provided for in Article 7(2);

(b) keep records in accordance with Article 9 and the selling prices established in accordance with Article 13 available to the competent authority of the Member State;

(c) communicate information to the Member State in accordance with Article 21;

(d) provide at the request of the competent authority of the Member State any information or supporting document required for management and checking.

Article 9

Records

The competent authority of the Member State shall determine the records to be kept by all undertakings approved in accordance with Articles 7 and 8, at each of their production sites, and the frequency of such record-keeping, which must be at least monthly.

These records shall be kept by the undertaking for at least three years following the current year and comprise at least the following information:

Article 10

Checks

The checks shall verify the accuracy of the measuring instruments and laboratory analyses used to determine deliveries of raw materials and their entry into production, the products obtained and stock movements.

Checks shall include verification of the accuracy and completeness of the data used to establish the average monthly selling prices of the undertaking referred to in Article 13(2).

For sugar manufacturers, checks shall also cover compliance with the obligation to pay the minimum price to beet growers.

At least once every two years, checks shall include physical checks on stocks.

Every on-the-spot check shall be the subject of an inspection report signed by the inspector giving the details of the checks carried out. Reports shall indicate in particular:

(a) the date of the check, and the persons present;

(b) the period checked and the quantities involved;

(c) the checking techniques used including, where applicable, reference to sampling methods;

(d) the results of the check and any corrective measures required;

(e) an assessment of the seriousness, extent, permanence and duration of any faults and discrepancies found and all other elements to be taken into consideration for the purposes of applying penalties.

Each inspection report shall be archived and kept for at least three years following the year in which the check is carried out, in a way that ensures that it is readily useable by the Commission departments responsible for checks and inspections.

Article 11

Penalties

Any quantity which has given rise to an incorrect declaration resulting in an unfair financial advantage shall be subject to a payment of EUR 500 per tonne of the quantity in question.

CHAPTER IV

PRICES

Article 15

Transitional provisions for the transmission of price data

Not later than 20 October 2006, 20 January 2007, 20 April 2007, 20 July 2007, 20 October 2007, 20 January 2008 and 20 April 2008, undertakings approved in accordance with Articles 7 and 8 of this Regulation and processors approved in accordance with Article 17(1) of Regulation (EC) No 318/2006 shall communicate to the Commission the prices established in accordance with Article 13(1) of this Regulation during the previous three months.

The reception, processing and storage of the data by the Commission shall be carried out in such a way as to guarantee the confidentiality of data.

Other operators in the sugar sector, in particular buyers, may communicate to the Commission the average price for sugar established in accordance with the arrangements laid down in Article 13. Operators shall give their name, address and business name.

Article 16

Delivery contracts

Only contracts concluded prior to sowing and in any event:

— before 1 April in Italy, or

— before 1 May in the other Member States

shall be regarded as pre-sowing contracts.

Article 16a

Purchase terms for beet

Agreements within the trade and delivery contracts referred to in Article 50(1) of Regulation (EC) No 1234/2007 shall conform to purchase terms laid down in Annex II of this Regulation.

Article 17

Price increases and reductions

For the purposes of applying the price increases and reductions provided for in Article 5(3) of Regulation (EC) No 318/2006, the minimum price for quota beet referred to in Article 5(1) of that Regulation shall, for each 0,1 % of sucrose content, be:

(a) increased by not less than: (i) 0,9 % for contents exceeding 16 % but not exceeding 18 %, (ii) 0,7 % for contents exceeding 18 % but not exceeding 19 %, (iii) 0,5 % for contents exceeding 19 % but not exceeding 20 %;

(b) reduced by not more than: (i) 0,9 % for contents below 16 % but not below 15,5 %, (ii) 1 % for contents below 15,5 % but not below 14,5 %.

The price for beet with a sucrose content in excess of 20 % shall not be less than the minimum price adjusted in accordance with point (a)(iii).

Delivery contracts, and agreements within the trade as referred to in Article 6 of Regulation (EC) No 318/2006, may provide, compared to the increases and reductions referred to in paragraph 1 of this Article, for:

(a) further increases for sucrose contents above 20 %;

(b) further reductions for sucrose contents below 14,5 %.

These contracts and agreements may, in the case of beet with a sucrose content below 14,5 %, define beet suitable for processing into sugar if further reductions for sucrose contents below 14,5 % but above the minimum sucrose content specified in that definition are laid down in such contracts and agreements.

If the definition referred to in the second subparagraph is not included in the contracts and agreements, the Member State concerned may lay down that definition. In that case it shall, at the same time, fix the further reductions referred to in that subparagraph.

CHAPTER V

QUOTAS AND PRODUCTION CHARGE

Article 18

Additional sugar quotas

If it allocates the additional quota to an undertaking, the Member State shall indicate the marketing year from which the allocation takes effect. However, allocations after 1 January 2007 shall take effect from the 2007/08 marketing year.

Member States shall notify to each sugar undertaking concerned the amount due at least one month before the deadline referred to in the first subparagraph and on 31 January 2008 at the latest.

Article 19

Additional isoglucose quota

If the undertaking has not paid the one-off amount by the deadline referred to in the first subparagraph, the additional isoglucose quotas shall not be considered as allocated to the undertaking concerned.

Member States shall notify to each isoglucose undertaking concerned the amounts due at least one month before the deadline referred to in paragraph 2 and on 30 November of the marketing year from which the quota is allocated at the latest.

Article 20a

Production charge

From the marketing year 2007/08, Member States shall, on 31 January each year at the latest, notify to each approved sugar and isoglucose producer the production charge to be paid for the current marketing year.

CHAPTER VI

PUBLIC STORAGE

SECTION 1

Offers for intervention

Article 23

Offers

The quantities laid down in the  Annex I to this Regulation shall be amended, where appropriate, in the last quarter of each marketing year, on the basis of unused quantities in accordance with the procedure referred to in Article 39(2) of Regulation (EC) No 318/2006 and within the limit of the total quantity laid down in Article 18(2) of that Regulation.

Article 24

Approval of the place of storage

Approval shall be granted at the manufacturer's request to the intervention agency, to all places of storage which:

(a) are suitable for keeping sugar in good condition;

(b) are situated in a place which provides the transport facilities necessary for removal of the sugar;

(c) allow separate storage of the quantities offered for intervention.

Additional conditions may be imposed by the intervention agencies.

Article 25

Minimum sugar quality

Sugar offered to intervention shall meet the following requirements:

(a) it must have been produced within a quota during the marketing year in which the offer is made;

(b) it must be in crystal form.

In the case of raw cane sugar, the sugar shall have a safety factor not exceeding 0,30.

In the case of raw beet sugar, the sugar shall have:

— a pH value not less than 7,9 at the time the offer is accepted,

— an invert sugar content not exceeding 0,07 %,

— a temperature which does not entail any risk of deterioration,

— a safety factor not exceeding 0,45 when the degree of polarisation is 97 or above, or a moisture content not exceeding 1,4 % when the degree of polarisation is below 97.

The safety factor shall be determined by dividing the percentage moisture content of the sugar concerned by the difference between 100 and the degree of polarisation of that sugar.

Article 26

Lots

All sugar offered for intervention shall be put up in lots.

For the purposes of this Section, ‘lot’ means at least 2 000 tonnes of sugar of uniform quality and packing, all of which is stored in the same place.

Article 27

Content of the offer

Offers made to an intervention agency shall indicate:

(a) the name and address of the party making the offer;