L 17846 Official Journal of the European Communities 30.6.2001 COMMISSION REGULATION (EC) No 1261/2001 of 27 June 2001 laying down detailed rules for the application of Council Regulation (EC) No 1260/2001 as regards delivery contracts for beet and the price increases and reductions applicable to the price of beet THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 1260/2001 of 19 June 2001 on the common organisation of the markets in the sugar sector (1), and in particular Article 5(3) and Article 19(5) thereof, Whereas: (1)  Annex III to Regulation (EC) No 1260/2001 laying down outline provisions for contracts and inter-trade agreements on the purchase of beet defines the contracting parties as beet sellers on the one hand and sugar manufacturers on the other. A seller may sell either beet he has grown himself or beet he has bought from a grower. However, in view of the importance of contracts within the quota system, only a contract concluded between a manufacturer and a grower may be regarded as a delivery contract for the purpose of Article 19(2) of that Regulation. (2)  Article 14(1) of Regulation (EC) No 1260/2001 provides that a manufacturer may carry forward part of his production to the following marketing year to be treated as part of that year's production. Consequently, for that marketing year delivery contracts at the minimum price for beet need only be concluded by the manufacturer in respect of the quantity of sugar within his basic quota which he has not yet produced. Therefore, the require- ment referred to in Article 19(2) of that Regulation should be adjusted in the event of sugar being carried forward. (3)  To ensure the proper working of the quota system the terms ‘pre-sowing’ and ‘minimum price’ as used in Article 19 of Regulation (EC) No 1260/2001 must be defined. (4)  Article 5(1) of Regulation (EC) No 1260/2001 requires sugar manufacturers buying beet suitable for processing into sugar and intended for processing into sugar within the maximum quota to pay at least the minimum price (1) See page 1 of this Official Journal. adjusted by price increases or reductions to allow for deviations from the standard quality. (5)  The quality, and hence the value, of sugar beet largely depends on sugar content. (6)  The most appropriate method of establishing the value of beet of a quality differing from the standard quality is to establish a scale of price increases and reductions expressed as a percentage of the minimum price. (7)  Experience acquired by those concerned over a very long period has shown that they should be allowed to include in their contracts or agreements within the trade a defi- nition of beet suitable for processing into sugar. A Community scale could be laid down for beet regarded throughout the Community as suitable for processing into sugar. Further reductions should be specified where this definition refers to a sugar content below the lowest sugar content on the Community scale. There should be provision for this definition to be drawn up by the Member States where the contracting parties fail to agree on a definition. (8)  Largely because of climatic conditions, the industrial value of beet grown in Italy differs significantly from that of beet grown in the north of the Community. The above difference in the industrial value of the beet should therefore be taken into account. (9 The detailed rules of application laid down in this Regu- lation replace those laid down in Commission Regula- tion (EEC) No 246/68 of 29 February 1968 laying down detailed rules for differentiating between delivery contracts for beet (), Commission Regulation (EEC) No 249769 of 12 December 1969 on the price increases and reductions applicable to the price of beet (}) and Commission Regulation (EEC) No 2571/69 of 22 December 1969 on the reductions applicable to prices for sugar beet in Italy (*). Those Regulations should, therefore, be repealed. (10)  The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Sugar, HAS ADOPTED THIS REGULATION: Article 1 For the purposes of Article 19(2) of Regulation (EC) No 1260/ 2001, a contract concluded between a sugar manufacturer and a beet seller growing his own beet shall be regarded as a delivery contract. (3 O] L 53, 1.3.1968, p. 37. () O] L 316, 17.12.1969, p. 15. (% O] L 321, 23.12.1969, p. 30.