Standard quality beet shall:

1. (a)

   be of sound and fair merchantable quality;

2. (b)

   have a sugar content of 16 % at the reception point.

1. 1.

   White sugar of the standard quality shall have the following characteristics:

   1. (a)

      be of sound, genuine and merchantable quality; dry, in homogeneous granulated crystals, free-flowing;

   2. (b)

      minimum polarisation: 99,7°;

   3. (c)

      maximum moisture content: 0,06 %;

   4. (d)

      maximum invert sugar content: 0,04 %;

   5. (e)

      the number of points determined under paragraph 2 shall not exceed a total of 22, nor:

      • 15 for the ash content,

      • 9 for the colour type, determined using the method of the Brunswick Institute of Agricultural Technology (hereinafter referred to as ‘the Brunswick method’),

      • 6 for the colouring of the solution, determined using the method of the International Commission for Uniform Methods of Sugar Analysis (hereinafter referred to as ‘the ICUMSA method’).

2. 2.

   One point shall correspond to:

   1. (a)

      0,0018 % of ash content determined using the ICUMSA method at 28° Brix,

   2. (b)

      0,5 units of colour type determined using the Brunswick method,

   3. (c)

      7,5 units of colouring of the solution determined using the ICUMSA method.

3. 3.

   The methods for determining the factors referred to in paragraph 1 shall be those used for determining those factors under the intervention measures.

1. 1.

   Raw sugar of the standard quality shall be sugar with a yield in white sugar of 92 %.

2. 2.

   The yield of raw beet sugar shall be calculated by subtracting from the degree of polarisation of that sugar:

   1. (a)

      its percentage ash content multiplied by four;

   2. (b)

      its percentage invert sugar content multiplied by two;

   3. (c)

      the number 1.

3. 3.

   The yield of raw cane sugar shall be calculated by subtracting 100 from the degree of polarisation of that sugar multiplied by two.

For the purposes of this Annex ‘Contracting Parties’ means:

1. (a)

   sugar undertakings (hereinafter referred to as ‘manufacturers’),

   and

2. (b)

   beet sellers (hereinafter referred to as ‘sellers’).

1. 1.

   Delivery contracts shall be made in writing for a specified quantity of quota beet.

2. 2.

   Delivery contracts shall specify whether an additional quantity of beet may be supplied, and under what terms.

1. 1.

   Delivery contracts shall indicate the purchase prices for the quantities of beet referred to in the first indent and, if appropriate, second indent, of Article 6(3). In the case of the quantities referred to in the first indent of Article 6(3), those prices may not be lower than the minimum price for quota beet referred to in Article 5(1).

2. 2.

   Delivery contracts shall lay down a fixed sugar content for beet. They shall include a conversion scale showing the different sugar contents and factors for converting the quantities of beet supplied into quantities corresponding to the sugar content shown in the delivery contract.

   The scale shall be based on the yields corresponding to the different sugar contents.

3. 3.

   Where a seller has signed a delivery contract with a manufacturer for the delivery of beet as referred to in the first indent of Article 6(3), all deliveries by that seller, converted in accordance with paragraph 2 of this Point, shall be considered to be deliveries within the meaning of the first indent of Article 6(3), up to the quantity of beet specified in the delivery contract.

4. 4.

   Manufacturers producing a quantity of sugar lower than their quota beet for which they have signed pre-sowing delivery contracts under the first indent of Article 6(3), shall distribute the quantity of beet corresponding to any additional production up to the amount of their quota among the sellers with whom they have signed pre-sowing delivery contracts within the meaning of the first indent of Article 6(3).

   Agreements within the trade may derogate from this provision.

1. 1.

   Delivery contracts shall contain provisions concerning the staggering and normal duration of beet deliveries.

2. 2.

   Provisions referred to in paragraph 1 shall be those applicable during the previous marketing year, taking account of the level of actual production; agreements within the trade may derogate therefrom.

1. 1.

   Delivery contracts shall provide for beet collection places.

2. 2.

   Where sellers and manufacturers have already signed a delivery contract for the previous marketing year, the collection places agreed upon by them for deliveries during that marketing year shall remain in operation. Agreements within the trade may derogate from this provision.

3. 3.

   Delivery contracts shall provide that loading and transport costs from the collection places are to be borne by the manufacturer subject to special agreements based on local rules or usages in operation before the previous marketing year.

4. 4.

   However, in Denmark, Greece, Spain, Ireland, Portugal, Finland and the United Kingdom, where beet is delivered free-at-factory, delivery contracts shall require manufacturers to contribute to loading and transport costs and shall stipulate the percentage or amounts.

1. 1.

   Delivery contracts shall provide for reception points for beet.

2. 2.

   Where sellers and manufacturers have already signed a delivery contract for the previous marketing year, the reception points agreed upon by them for deliveries during that marketing year shall remain in operation. Agreements within the trade may derogate from this provision.

1. 1.

   Delivery contracts shall provide for the sugar content to be determined using the polarimetric method. A sample of the beet shall be drawn at the time of reception.

2. 2.

   Agreements within the trade may provide for samples to be drawn at another stage. In such cases, the delivery contract shall provide for a correction to compensate for any drop in the sugar content between the reception and the drawing of the sample.

Delivery contracts shall provide for gross weight, tare and sugar content to be determined using one of the following procedures:

1. (a)

   jointly, by the manufacturer and the beet growers' trade organisation, if an agreement within the trade so provides;

2. (b)

   by the manufacturer, under the supervision of the beet growers' trade organisation;

3. (c)

   by the manufacturer, under the supervision of an expert recognised by the Member State concerned, provided the seller defrays the costs thereof.

1. 1.

   Delivery contracts shall require manufacturers to do one or more of the following for the whole quantity of beet delivered:

   1. (a)

      to return the fresh pulp from the tonnage of beet delivered free of charge to the seller, ex factory;

   2. (b)

      to return part of that pulp, pressed, dried or dried and molassed, free of charge to the seller, ex factory;

   3. (c)

      to return the pulp, pressed or dried, to the seller, ex factory; in this case, the manufacturer may require the seller to pay the pressing or drying costs;

   4. (d)

      to pay the seller compensation which takes account of the possibilities of selling the pulp concerned.

   When parts of the whole quantity of beet delivered are subject to different treatment, the delivery contract shall impose more than one of the obligations provided for in the first subparagraph.

2. 2.

   Agreements within the trade may provide for pulp to be delivered at a stage other than that referred to in paragraph 1(a), (b) and (c).

1. 1.

   Delivery contracts shall fix the time limits for any advance payments and for payment of the purchase price for beet.

2. 2.

   The time limits referred to in paragraph 1 shall be those valid during the previous marketing year. Agreements within the trade may derogate from this provision.

Where delivery contracts lay down rules covering matters which are dealt with in this Annex, or where they contain provisions governing other matters, their provisions and effects shall not conflict with this Annex.

1. 1.

   Agreements within the trade as described in Article 2(11)(b) shall contain arbitration clauses.

2. 2.

   Where agreements within the trade at Community, regional or local level lay down rules covering matters which are dealt with in this Regulation, or where they contain provisions governing other matters, their provisions and effects shall not conflict with this Annex.

3. 3.

   Agreements referred to in paragraph 2 lay down, in particular:

   1. (a)

      rules on the distribution to sellers of quantities of beet which the manufacturer decides to buy prior to sowing, for the manufacture of sugar within the limits of the quota;

   2. (b)

      rules on distribution as referred to in Point III(4);

   3. (c)

      the conversion scale referred to in Point III(2);

   4. (d)

      rules on the choice and supply of seeds of the varieties of beet to be produced;

   5. (e)

      the minimum sugar content of beet to be delivered;

   6. (f)

      a requirement for consultation between the manufacturer and the sellers' representatives before the starting date of beet deliveries is fixed;

   7. (g)

      the payment of premiums to sellers for early or late deliveries;

   8. (h)

      details of:

      1. (i)

         the part of the pulp referred to in Point IX(1)(b),

      2. (ii)

         the costs referred to in Point IX(1)(c),

      3. (iii)

         the compensation referred to in Point IX(1)(d);

   9. (i)

      the removal of pulp by the seller;

   10. (j)

       without prejudice to Article 5(1), rules on how any difference between the reference price and the actual selling price of the sugar is to be allocated between the manufacturer and sellers.

Where there is no set agreement within the trade as to how the quantities of beet intended for the manufacture of sugar within the quota limits which the manufacturer offers to buy before sowing should be allocated among the sellers, the Member State concerned may itself lay down rules for such allocation.

Those rules may also grant to traditional sellers of beet to cooperatives delivery rights other than those which they would enjoy if they belonged to such cooperatives.

For the purposes of this Annex:

1. (a)

   ‘merger of undertakings’ means the consolidation of two or more undertakings into a single undertaking;

2. (b)

   ‘transfer of an undertaking’ means the transfer or absorption of the assets of an undertaking having quota to one or more undertakings;

3. (c)

   ‘transfer of a factory’ means the transfer of ownership of a technical unit, including all the plant required to manufacture the product concerned, to one or more undertakings, resulting in the partial or total absorption of the production of the undertaking making the transfer;

4. (d)

   ‘lease of a factory’ means the leasehold contract of a technical unit including all the plant required for the manufacture of sugar, with a view to its operation, concluded for a period of at least three consecutive marketing years, which the parties agree not to terminate before the end of the third marketing year, with an undertaking which is established in the same Member State, as the factory concerned, if, after the lease takes effect, the undertaking which rents the factory can be considered a solely sugar-producing undertaking for its entire production.

1. 1.

   Without prejudice to paragraph 2, in the event of the merger or transfer of sugar-producing undertakings or the transfer of sugar factories, the quota shall be adjusted as follows:

   1. (a)

      in the event of the merger of sugar-producing undertakings, the Member States shall allocate to the undertaking resulting from the merger a quota equal to the sum of the quotas allocated prior to the merger to the sugar-producing undertakings concerned;

   2. (b)

      in the event of the transfer of a sugar-producing undertaking, the Member State shall allocate the quota of the transferred undertaking to the transferee undertaking for the production of sugar or, if there is more than one transferee undertaking, the allocation shall be made in proportion to the sugar production absorbed by each of them;

   3. (c)

      in the event of the transfer of a sugar factory, the Member State shall reduce the quota of the undertaking transferring ownership of the factory and shall increase the quota of the sugar-producing undertaking or undertakings purchasing the factory in question by the quantity deducted in proportion to the production absorbed.

2. 2.

   Where a number of the sugar-beet or cane growers directly affected by one of the operations referred to in paragraph 1 expressly show their willingness to supply their beet or cane to a sugar-producing undertaking which is not party to those operations, the Member State may make the allocation on the basis of the production absorbed by the undertaking to which they intend to supply their beet or cane.

3. 3.

   In the event of closure, in circumstances other than those referred to in paragraph 1, of:

   1. (a)

      a sugar-producing undertaking;

   2. (b)

      one or more factories of a sugar-producing undertaking,

   the Member State may allocate the part of the quotas involved in such closure to one or more sugar-producing undertakings.

   Also in the case referred to in point (b) of the preceding subparagraph, where some of the producers concerned expressly show their willingness to supply their beet or cane to a given sugar-producing undertaking, the Member State may allocate the proportion of the quotas corresponding to the beet or cane concerned to the undertaking which they intend to supply with those products.

4. 4.

   Where the derogation referred to in Article 6(6) is invoked, the Member State concerned may require the beet growers and the sugar undertakings concerned by that derogation to include in their agreements within the trade special clauses enabling the Member State to apply paragraphs 2 and 3 of this Point.

5. 5.

   In the event of the lease of a factory belonging to a sugar-producing undertaking, the Member State may reduce the quota of the undertaking offering the factory for rent and allocate the portion by which the quota was reduced to the undertaking which rents the factory in order to produce sugar in it.

   If the lease is terminated during the period of three marketing years referred to in Point I (d) the adjustment of quota under the first subparagraph of this paragraph shall be cancelled retroactively by the Member State as at the date on which the lease took effect. However, if the lease is terminated by reason of force majeure, the Member State shall not be bound to cancel the adjustment.

6. 6.

   Where a sugar-producing undertaking can no longer ensure that it meets its obligations under Community legislation towards the sugar-beet or cane producers concerned, and where that situation has been ascertained by the competent authorities of the Member State concerned, the latter may allocate for one or more marketing years the part of the quotas involved to one or more sugar-producing undertakings in proportion to the production absorbed.

7. 7.

   Where a Member State grants a sugar producing undertaking price and outlet guarantees for processing sugar beet into ethyl alcohol, that Member State may, in agreement with that undertaking and the beet growers concerned, allocate all or part of the sugar production quotas to one or more other undertakings for one or more marketing years.

In the event of the merger or transfer of isoglucose-producing undertakings or the transfer of an isoglucose-producing factory, the Member State may allocate the quotas involved for the production of isoglucose to one or more other undertakings, whether or not they have a production quota.

The measures taken pursuant to Points II and III may take effect only if the following conditions are met:

1. (a)

   the interests of each of the parties concerned are taken into consideration;

2. (b)

   the Member State concerned considers that they are likely to improve the structure of the beet, cane and sugar-manufacturing sectors;

3. (c)

   they concern undertakings established in the same territory for which the quota is set in Annex III.

When the merger or transfer occurs between 1 October and 30 April of the following year, the measures referred to in Points II and III shall take effect for the current marketing year.

When the merger or transfer occurs between 1 May and 30 September of the same year, the measures referred to in Points II and III shall take effect for the following marketing year.

Where Article 10(3) is applied, Member States shall allocate the adjusted quotas by the end of February at the latest with a view to applying them in the following marketing year.

Where Points II and III are applied, Member States shall inform the Commission of the adjusted quotas not later than 15 days after the expiry of the periods referred to in Point V.