27.10.2007 Official Journal of the European Union L 283(1 | (Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory) REGULATIONS COUNCIL REGULATION (EC) No 1260/2007 of 9 October 2007 amending Regulation (EC) No 318/2006 on the common organisation of the markets in the sugar sector THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Whereas: (1) () O] L 58, 28..2006, p. 1. Commission Reglation (EC) No 247/2007 (O] L 69, 9.3.2007. p. 3). In order to maintain the structural balance of the market, the Commission may decide to withdraw sugar from the market. In the case where a preventive withdrawal is decided, it is necessary to limit the scope of the obli- gation provided for in Article 6(5) of Council Regulation (EC) No 318/2006 (1), so as to avoid imposing on sugar undertakings an obligation to pay the minimum price for quantities of beet corresponding to their entire quota, including those quantities which may be produced beyond the withdrawal threshold. In accordance with Article 10(2) of Regulation (EC) No 318/2006, the Commission is to decide by the end of February 2010 on carrying out a linear reduction of national and regional quotas, with a view to adjusting these quotas to a sustainable level after the expiry of the restructuring scheme established by Council Regulation (EC) No 320/2006 of 20 February 2006 establishing a temporary scheme for the restructuring of the sugar industry in the Community (3). In order to encourage an increased participation in that restructuring scheme, it is considered appropriate to reduce the percentage referred to in Article 10(2) of Regulation (EC) No 318/2006, taking into account the total renunciation of quota per Member State under the restructuring scheme, as well as to modulate this Regulation as last amended by () OJ L 58, 28.2.2006, p. 42. Regulation as amended by Regulation (EC) No 1261/2007 (See page 8 of this Oficial Journal). percentage for each undertaking according to its indi- vidual restructuring effort. The outermost regions referred to in Article 299(2) of the Treaty do not fall under the scope of Regulation (EC) No 320/2006. Consequently those regions should be excluded from the final cut by which the Commission is entitled to adjust quotas after the expiry of the restruc- turing scheme. Article 4a of Regulation (EC) No 320/2006 provides the possibility for growers of beet and cane intended for quota production to submit a direct application for restructuring aid provided that they cease to deliver sugar to the undertakings to which they were bound by delivery contracts in the previous marketing year. As a result of the acceptance of such applications, Member States are to reduce the quota of the under- takings concerned within the limit of the 10 % referred to in the second indent of Article 11(1) of Regulation (EC) No 318/2006. It is in this context necessary to amend that Article, so as to allow for the definitive reduction of quotas allocated to the undertakings. A sound management of sugar in public intervention means that sugar should be resold on the market as soon as market trends allow for it in order to avoid a long storage period with risks of deterioration of quality. It is considered appropriate to allow the possibility of resale as industrial sugar. Article 19 of Regulation (EC) No 318/2006 provides the possibility to withdraw sugar from the market where it is necessary in order to maintain the structural level of the markets at a price level close to the reference price. The application of this measure is currently based on a percentage, common to all Member States and applicable to all production under quota. Recent experience has shown that such a linear application may be counter- productive, since producers are encouraged to produce above their contractual needs as a precaution against a possible compulsory storage of the quantities withdrawn.