25.1.2011 Official Journal of the European Union L 213 DECISIONS COMMISSION DECISION of 20 January 2011 on a derogation from the rules of origin set out in Council Decision 2001/822/EC as regards sugar from the Netherlands Antilles (notified under document C(2011) 140) (2011/47/EV) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Decision 2001/822/EC of 27 November 2001 on the association of the overseas countries and territories with the European Community (‘Overseas  Association Decision’) (!), and in particular Article 37 of Annex III thereof, Whereas: (1)  Annex III to Decision 2001/822/EC concerns the defi- nition of the concept of ‘originating products’ and methods of administrative cooperation. Article 37 thereof provides that derogations from those rules of origin may be adopted where justified by the devel- opment of existing industries or the creation of new industries in a country or territory. (2) By Commission Decision 2009/699/EC (%), the request submitted in 2009 for extension of the previous dero- gation was rejected whereas the requested new dero- gation was granted for the quantities for which import licences for sugar were allocated to the Netherlands Antilles for 2009 and 2010. (3)  According to the quarterly statements of the quantities used under Decision 2009/699/EC forwarded by the Netherlands  Antilles to the Commission, the consumption of the derogation granted in respect of 7 000 tonnes for 2010 is currently at around 2 500 tonnes in that year. (4)  On 24 August 2010 the Netherlands requested on behalf of the Netherlands Antilles a new derogation from the rules of origin set out in Annex Il to Decision () O] L 314, 30.11.2001, p. 1. 0J L 239, 10.9.2009, p. 55. 2001/822/EC for the period from 1 January 2011 until 31 December 2013, date of expiry of Decision 2001/822[EC. On 8 September and 11 October 2010 additional information was provided by the Netherlands Antilles. The request covers a total annual quantity of 7 000 tonnes of sugar products originating in third countries and processed in the Netherlands Antilles for export to the Union. The request for a new derogation aims at allowing the use of raw sugar from third countries to be aromatized, coloured, milled and processed into sugar lumps in the Netherlands Antilles while conferring OCTs (Overseas Countries and Territories) origin. Moreover, the Netherlands Antilles request that for the years 2011, 2012 and 2013 the yearly amount for which ACP[EU- OCTs cumulation may be temporarily allowed by virtue of Article 6 of Annex Il to Decision 2001/822/EC would be set at 7 000 tonnes. The request for a new derogation is based on quality requirements stating that ACP sugar in the Caribbean region does not meet the criteria for a production of high quality sugar destined to Union customers, and on availability stating that ACP sugar from the Caribbean is subject to continuous shortfalls due to climatic conditions. Furthermore, ACP States are increasingly exporting their sugar production directly to the United States and the Union. Further, the Union does not produce raw cane sugar which is used for the end product. Therefore it would be justified that the Netherlands Antilles source raw sugar in neighbouring third countries that are not part of the ACP States, the OCTs or the Union. In its additional information, the Netherlands indicated that the sugar industry in the Netherlands Antilles, which should benefit from the requested derogation, aims to diversify into producing mixtures and ‘biosugar’, which both address distinctively different markets than the sugar products for which the requested derogation is submitted. At the moment diversification is still insuf- ficient and the derogation would be needed to earn the necessary capital for the investments required for further diversification.