No L 201/26 Official Journal of the European Communities 25.7.78 COMMISSION REGULATION (EEC) No 1729/78 of 24 July 1978 laying down detailed rules of application in respect of the production refund for sugar used in the chemical industry THE COMMISSION 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 organi- zation of the market in sugar (!), as last amended by Regulation (EEC) No 1396/78 (?), and in particular Article 9 (6) thereof, Whereas Council Regulation (EEC) No 1400/78 of 20 June 1978 laying down general rules governing the production refund for sugar used in the chemical industry (°) has introduced a new system of payment; whereas, consequently, the relevant rules of applica- tion should be changed and Commission Regulation (EEC) No 835/68 of 28 June 1968 laying down detailed rules for the application of the production refund on sugar used in the chemical industry (%), as last amended by Regulation (EEC) No 2478/74 (%), should be replaced ; Whereas Article 4 of Regulation (EEC) No 1400/78 provides that the production refund is to be calculated per 100 kilograms of dry matter of glucose, using a yield coefficient to be determined ; Whereas the production refund cannot be granted unless precise information is available; whereas persons qualifying for the refund should therefore be requested to submit a prior application in writing giving certain information ; Whereas, for the purposes of proof and control, a refund certificate must be introduced which is valid for a period which is long enough to allow the trade to make long-term arrangements and gives the infor- mation necessary to fix the production refund; whereas, in order to ensure that the sugar concerned is used for the purpose for which the refund certificate was issued, it should be provided that only the appli- cant may claim on the certificate and only after the basic production in question has been processed; Whereas, in order to make it possible to check that the basic products are put to the intended use, a (1) OJ No L 359, 31. 12. 1974, p. 1. ().0J No L 170, 27. 6. 1978, p. 1. (*) O] No L 170, 27. 6. 1978, p. 9. (*) O] No L 151, 30. 6. 1968, p. 35. () OJ No L 264, 1. 10. 1974, p. 72. competent body having access to all necessary infor- mation must be set up in each Member State; whereas, in order to counteract the effects of delays in payment of the refund, provisions should be made for an advance to be paid to the holder of a certificate as soon as the basic products have been placed under control ; whereas, in return, the holder should be required to provide a security as guarantee to the Member State concerned should processing of the basic product not be carried out in accordance with the conditions laid down in the refund certificate ; whereas, however, the Member State concerned should be free to decide on appropriate measures to deal with cases of force majeure which prevent a certificate holder from fulfilling his obligations ; Whereas, since final payment of the production refund may be made only after processing has taken place and since the trade has an interest in being paid as soon as possible, provision should be made for such payment to be effected shortly after processing ; Whereas, henceforth, the refund is paid for the quan- tity of basic product processed without reference to a conversion ratio; whereas Commission Regulation (EEC) No 891/69 of 13 May 1969 fixing a uniform conversion ratio for granting the production refund on white sugar used in the manufacture of fructose (¢) should therefore be repealed ; Whereas the measures provided for in this Regulation are in accordance with the opinion of the Manage- ment Committee for Sugar, HAS ADOPTED THIS REGULATION : Article 1 The coefficient referred to in Article 4 of Regulation (EEC) No 1400/78 is hereby fixed at 2-00. Article 2 1. Application for a production refund shall be made in writing. (¢) OJ No L 115, 14. 5. 1969, p. 11.