30.6.2001 Official Journal of the European Communities L177/57 COMMISSION REGULATION (EC) No 1325/2001 of 29 June 2001 providing for the continued application of safeguard measures with regard to imports of sugar sector products with EC/OCT originating status from the overseas countries and territories for the period 1 July to 1 December 2001 THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Decision 91/482[EEC of 25 July 1991 on the association of the overseas countries and terri- tories with the European Economic Community (*), as last amended by Decision 2001/161/EC (), hereinafter referred to as ‘the OCT Decision’, and in particular Article 109 thereof, After consulting the Committee set up in accordance with Article 1(2) of Annex IV to that Decision, tonnes. In accordance with the basic Regulation, produc- tion under quota is around 14,2 million tonnes a year (in 2000/01 it stood at around 13,88 million tonnes). Any imports of sugar into the Community therefore generate a need to export a corresponding quantity of Community sugar that cannot be disposed of on that market. Refunds on that sugar — within certain quotas — are charged to the Community budget (at around EUR 430/tonne during 2000/01). However, exports on which refunds are payable are limited in quantity under the Agreement on Agriculture concluded as part of the Uruguay Round (¥ and have been reduced from 1555 600 tonnes for the 1995/96 marketing year to 1273500 tonnes from 2000/01, which gives total refunds of EUR 499,1 million. Whereas: (1)  The Commission has noted that imports of sugar (CN (5)  The operation of the common organisation of the code 1701) and of mixtures of sugar and cocoa covered n.lar.ket n sugar may be greatly destab?hsed by these by CN codes 1806 10 30 and 1806 10 90 originating in difficulties. For the 2000/01 marketing year, the the overseas countries and territories (hereinafter Commission redusced Epmmumty phroduiers i qul;)tas 1;1)’ referred to as ‘the OCT), and in particular imports with 498 800 tonnes (). This measure has already brought EC/OCT originating status, rose sharply from 1997 to about a reduction in areas under sugar-beet. A further 1999. These imports increased from zero tonnes in substantial reduction cannot be ruled out for the 2001/ 1996 to more than 53 000 tonnes in 1999. The prod- 02 marketing year. Under the reform of the common ucts concerned are imported into the Community free of organisation of the markets (COM) for sugar (), the import duties and are allowed in with no limit on Council has reduced the Community production quota quantity in accordance with Article 10(1) of the OCT by 115000 tonnes. Any further imports of sugar or Decision. products with a high sugar content from the OCT will call for a greater reduction in the quota for Community o ] o producers and will accordingly entail a greater loss of (2) By Decision of 25 February 2000 extending Decision income for them. 91/482/EEC on the association of the overseas countries and territories with the European Economic Community, the Council extended the period of application of the OCT Decision by one year to 28 February 2001. By (6)  As a result of these continuing difficulties, there is a risk Decision 2001/161/EC, the Council again extended the that a sector of Community activity will deterior.ate. On period of application of Decision 91/482/EEC by a 12 June 2001 the Commission therefore decided to further period ending on 1 December 2001. continue to apply the safeguard clause provided for in Article 109 of the OCT Decision in respect of imports o ) from the OCT of certain sugar sector products with (3)  Commission Regulation (EC) No 396/2001 of 27 EC/OCT originating status February 2001 providing for the continued application ' of safeguard measures for imports from the overseas countries and territories of sugar sector products with . . . o EC/OCT cumulation of origin for the period 1 March to (7)  Article 100 of the OCT Decision states that its obJec'F is 30 June 2001 () limits EC/OCT originating status for to promote trade between the OCT and the Community, the products referred to in recital 1 to a maximum of taking account of their respective levels of development. 3 878 tonnes of sugar for the period 1 March to 30 June In accordance with Article 109(2) of that Decision, 2001. priority must be given to such measures as would least disturb the functioning of the association and the (4) In the past few years difficulties have arisen on the Community. Furthermore, such measures must not Community sugar market. That market is in surplus. Sugar consumption is constant. For the 2000/01 marketing year, it stands at around 12,85 million exceed the limits of what is strictly necessary to remedy the difficulties that have arisen. () O] L 336, 23.12.1994, p. 22 (°) Commission Regulation (EC) No 2073/2000 (O] L 246, 30.9.2000, () O] L 263, 19.9.1991, p. 1. p. 38). () OJ L 58, 28.2.2001, p. 21. (®) Council Regulation (EC) No 1260/2001 (O] L 178, 30.6.2001, () O] L 58, 28.2.2001, p. 13. p. 1).