Government Decree No. 114 / 2001 Coll.

Government Regulation on the establishment of sugar production quotas for quota years 2001 / 2002 to 2004 / 2005

Valid Regulation Effective from 30.03.2001
114
GOVERNMENT REGULATION
of 7 March 2001
establishing production quotas for sugar for the quota years 2001 / 2002 to 2004 / 2005
The Government orders pursuant to § 12 (3) to (5) to implement § 2 (5) and § 12 (3) to (7) of Act No. 256 / 2000 Coll., on the State Agricultural Intervention Fund and on the amendment of certain other laws (Act on the State Agricultural Intervention Fund):

ČÁST PRVNÍ

INTRODUCTORY PROVISIONS
§ 1
Subject matter
This Regulation lays down sugar production quotas to ensure and maintain the production of sugar and sugar and to stabilise the sugar market and the conditions of the sugar production quota system.
§ 2
Definition of terms
For the purposes of this Regulation:
(a) a sugar product of sugar beet, containing by weight at least 85% of sucrose in the dry state, converted into white sugar by a coefficient of 1 for products in solid form and liquid products as set out in Annex 6 to this Regulation, 1)
(b) sugar beet for the production of sugar which accounts for at least 16% of the sugar content, equal to a yield of 130 kg sugar per tonne of sugar, produced in the Czech Republic,
(c) grower of the entrepreneur, 2) who cultivates diabetes in the Czech Republic,
(d) by a sugar factory an individually determined set of necessary movable and immovable property, an operational and technological facility located in the Czech Republic, which, in its complexity, interconnections of its individual parts and the full functionality of the package, enables the production of sugar from sugar from sugar beet in an industrial way;
(e) by a sugar producer, a natural or legal person operating exclusively on the basis of his or her right of ownership or of a sugar refinery which has been allocated an individual sugar production quota (the quota),
(f) the quota year for the period from 1 September of the calendar year concerned to 31 August of the following calendar year;
(g) export of sugar
1. the export of sugar,
2. exports of the sugar contained in the product listed in Annex 7 to this Regulation,
3. exports of sugar contained in a product not listed in Annex 7 to this Regulation where the sugar content of that product is demonstrated by a chemical analysis carried out by an accredited laboratory, 2a)
4. the export of sugar used in the manufacture of the product listed in Annex 7 to this Regulation,
for consumption outside the Czech Republic,
h) placing on the market in the Czech Republic selling sugar or other transfer
1. sugar,
2. sugar contained in the product,
by a sugar producer or any other person without regard to the export of sugar under this Regulation or the sale of sugar from imports,
(i) a quota by the sugar producer of the quantity of sugar produced, fixed or, where appropriate, amended in accordance with this Regulation, by the sugar producer under the conditions laid down in this Regulation during the quota year;
1. market in the Czech Republic (hereinafter referred to as the "domestic quota share"), and
2. exports [point (g)] (hereinafter referred to as the "export share of the quota"),
(j) the sugar production capacity of the highest average quantity of sugar produced by the sugar producer over 24 hours in the sugar factory in which he produced the sugar in November 2001 or October 2002, provided that in that sugar factory he produced the sugar in the quota year 2002 / 2003 but not more than in a demonstrable quantity corresponding to the maximum daily output of the machinery plant ("maximum daily output") or for the applicant for a new quota from the reserve of the maximum daily output certified by the expert opinion,
(k) the molasses syrup product produced in connection with the production of sugar from sugar beet.

ČÁST DRUHÁ

NATIONAL ANNUAL SUGAR QUOTA, RESERVE, QUOTA AND THEIR DETERMINATION
§ 3
National annual quota
The national annual quota for the quota years 2003 / 2004 and 2004 / 2005 shall be 454 862 tonnes of sugar for each individual quota year.
§ 4
Reserve
(1) The reserve is the quantity of sugar to be fixed from the reserve to the applicant for a new quota or to increase the quota already fixed for sugar producers.
(2) For the 2003 / 04 quota year, a reserve of 39 862 tonnes of sugar shall be fixed, with that reserve being allocated by the State Agricultural Intervention Fund (hereinafter referred to as the Fund) to natural or legal persons who have submitted an application for a quota increase or a request for a new quota within the time limit and fulfil the conditions and criteria laid down in Sections 11 and 12.
(3) The reserve is increased by a quantity of sugar,
(a) by which the quota referred to in Article 9 (5) and (7) has been reduced,
(b) which corresponds to a quota the effects of which have ceased pursuant to Articles 7 (4) and 12 (7).
§ 5
Quota application
(1) A natural or legal person (hereinafter referred to as "applicant") may submit a quota application (hereinafter referred to as "application") if:
(a) its activity is the production of sugar;
(b) has a permanent residence, if it is a natural person or a registered office, if it is a legal person, in the territory of the Czech Republic, and if it is a foreign applicant, it shall demonstrate that it is legally engaged in business in the territory of the Czech Republic,
(c) proves that it is the sole and sole operator of the sugar factory concerned,
(d) declare that it is the sole and exclusive operator of the sugar factory in question and that it will be that operator at least until the end of the 2004 / 2005 quota year,
(e) in the period from the beginning of the 2002 / 2003 quota year, sugar from sugar beet produced in 2002 was the sole and sole operator of the sugar beet,
(f) it is settled on the date of the application due to the Fund, the Ministry of Agriculture (hereinafter referred to as "the Ministry"), the Land Fund of the Czech Republic, the National Property Fund of the Czech Republic, the social security contribution and the contribution to the State employment policy, the general health insurance obligations, the commitments related to the aid granted to agriculture and the commitments due for the sugar delivered to all growers,
(g) is not in liquidation or no bankruptcy has been declared against his property.
(2) The model application is set out in Annex 1 to this Regulation. Compliance with the conditions laid down in paragraph 1 (d), (f) and (g) shall be confirmed by the applicant by a declaration of honour, the specimen of which is set out in point 3 of Annex 1 to this Regulation. The application shall be accompanied by the necessary documents, the list of which is given in point 4 of Annex 1 to this Regulation.
(3) The applicant, which is the sole and sole operator of several sugar factories, shall indicate in the application the sugar production capacity by sugar factory as well as the aggregate production capacity of those sugar factories (hereinafter referred to as the structural breakdown of the quota).
(4) The applicant shall deliver the application to the Fund no later than 15 days after the date of entry into force of this Regulation. By delivering the Fund's application, the administrative procedure for establishing the quota shall be initiated for the applicant concerned.
Quota fixing
§ 6
(1) If the Fund finds that the application has not been completed in full or does not contain all the necessary documents, it shall return the application within 10 days of its receipt with an invitation to supplement the missing information or, where appropriate, the documents in the Fund, by a specified time limit which may not be less than 3 days and longer than 10 days after the receipt of the call.
(2) If the Fund finds that:
(a) the application has not been received within the prescribed time limit;
(b) the applicant does not comply with Article 5 (1);
(c) the applicant has not delivered the application returned within the specified time limit; or
(d) the application returned does not contain any additional particulars or documents, where appropriate;
reject the application and notify the applicant in writing, stating the reason for the refusal.
§ 7
(1) The Fund shall calculate the sugar production capacity of the applicant, whose application has not been rejected pursuant to Article 6 (2), on the basis of the facts established and verified in accordance with Article 14 (1) (c).
(2) The Fund shall calculate the quota coefficient for each applicant as a proportion of the applicant's sugar production capacity and the total of the applicant's sugar production capacity referred to in paragraph 1.
(3) The Fund shall provide the applicant with a quota as the product of the coefficient referred to in paragraph 2 and a quantity of 415 000 tonnes of sugar, to the nearest 3 decimal places; for applicants operating multiple sugar factories, the Fund shall indicate in the decision the structural breakdown of the quota (Section 5 (3)).
(4) The Fund shall allocate the quota referred to in paragraph 3 on condition that the applicant demonstrates, within 30 days of the date of allocation of the quota, that he has contracted the sugar beet deliveries from growers at least 90% of the quota allocated to him for the quota year in question. If the applicant fails to demonstrate this, the effects of quota fixing shall cease. The Fund shall notify the applicant without undue delay.
§ 8
Method of handling quota production and conditions of the production quota system
(1) The Fund will publish a reciprocal ratio between the domestic share of the quota and the export share of the quota in the Ministry of Agriculture Bulletin ("Bulletin").
(2) The export of sugar for the relevant quota year can be demonstrated by a single customs document (2b) no later than 30 days after the date of export; sugar exports may also be effected by the sugar producer through another person. Exports of sugar not demonstrated by the sugar producer within 30 days of the end of the quota year concerned shall not be taken into account.
(3) Where the proportion of sugar declared by the sugar producer in exports of products containing sugar and, where appropriate, of the products in whose manufacture the sugar has been used exceeds the proportion of sugar referred to in Annex 7 to this Regulation, the Fund may require the sugar producer to prove the proportion of sugar otherwise based on the proportion of sugar referred to in Annex 7 to this Regulation.
(4) The sugar producer shall immediately notify the Fund of the cessation of sugar production in the sugar factory it operates ("the closed sugar factory ').
(5) The part of the quota of a sugar producer belonging to a closed sugar refinery shall be left to the sugar producer who closed the sugar refinery if, within 15 days of the closing of the sugar refinery, it proves to the Fund that the supply of sugar from growers who supplied sugar to a closed sugar refinery has contracted to another sugar refinery which is the sole and exclusive operator of it.
(6) If part of the quota is not left to the sugar producer referred to in paragraph 4, that part of the quota shall become part of the reserve. The Fund shall subsequently allocate this part of the quota to:
(a) a sugar producer who has assumed obligations towards sugar growers supplying sugar to a closed sugar factory, to the extent that those obligations correspond to part of the quota; or
(b) in accordance with Articles 11 and 12, where part of the quota has not been allocated to the sugar producer referred to in (a).
(7) The sugar producer of the Fund shall immediately notify in writing the sale, lease or merger of the undertaking, or part thereof, of the sale or lease or merger of the production facility for the production of sugar or, where appropriate, of the production of molasses, of the transfer or transfer of the assets to the shareholder and of the distribution of the assets.
(8) The Fund shall inform the sugar producer in writing, within 15 days of receipt of the notification referred to in paragraph 7, of the facts referred to in paragraph 7.
§ 9
Quota reduction
(1) The Fund shall, after the end of the quota year, reduce the quota for the sugar producer if the sugar producer has, during the immediately preceding quota year (hereinafter referred to as "the previous year"):
(a) has not placed on the market in the Czech Republic a quantity of sugar corresponding to the national share of the quota fixed for the previous year in accordance with Article 8 and increased by the quantity of sugar supplied to the sugar producer by another person during the previous year; or
(b) it has not exported outside the territory of the Czech Republic a quantity of sugar corresponding to the export share of the quota fixed for the previous year under Article 8.
(2) The Fund shall reduce the sugar producer's quota referred to in paragraph 1 by a quantity of sugar corresponding to the sum of:
(a) a positive difference between the national share of the sugar quota of that sugar producer plus the quantity of sugar delivered to that sugar producer by another person during the previous year and the quantity of sugar marketed by that sugar producer in the Czech Republic during the previous year; and
(b) 1,15 times the difference between the export share of this sugar producer's quota and the quantity of sugar exported by a sugar producer outside the Czech Republic during the last year.
(3) The Fund shall not include in the quota reduction provided for in paragraph 2:
(a) the difference between the national share of the sugar producer's quota plus the quantity of sugar delivered to the sugar producer during the previous quota year by another person and the quantity of sugar marketed by that sugar producer in the Czech Republic during the previous quota year, provided that the sugar producer has produced from sugar beet at least the quantity corresponding to its quota and at the same time exported at least the quantity of sugar corresponding to the export share of the quota at its disposal;
(b) the positive difference referred to in points (a) and (b) of paragraph 2 where that difference is less than 100 tonnes.
(4) The quota reduction Fund will not be implemented if the fact referred to in paragraph 1 (a) or paragraph 1 (b), as the case may be, is due to causes beyond the control of the sugar producer and if the sugar producer has notified the Fund without delay.
(5) The Fund shall make a reduction in the quota with effect from the beginning of the quota year immediately following the quota year in which the event referred to in paragraph 1 (a) and, where appropriate, paragraph 1 (b) occurred.
(6) The Fund will reduce the quota by a quantity of sugar which makes the difference between the sugar producer fixed by the quota and the quantity of sugar corresponding to the contracted supply of sugar.
(7) The Fund shall reduce the quota to the sugar producer referred to in paragraph 6 with effect from the beginning of the relevant quota year.
(8) If the reduction in the quota to the sugar producer referred to in paragraphs 5 to 7 exceeds a total of 20 000 tonnes of sugar, the Fund shall notify the Bulletin of this fact and, at the same time, publish information on the possibility of requesting a new quota or of requesting an increase in the quota, indicating:
(a) the quantity of the reserve to be distributed;
(b) the time limit for receipt of the Fund's application, which may not be less than 15 days from the date of publication of the information by the Fund in the Bulletin.
(9) Article 11 and 12 shall apply to the procedure for an application submitted pursuant to paragraph 8.
§ 11
Application for a quota increase or a new quota from the reserve
(1) A natural or legal person (hereinafter referred to as a reserve applicant) may submit an application for a quota increase or for a new quota (hereinafter referred to as a reserve application) if:
(a) its activity is the production of sugar;
(b) has a permanent residence, if it is a natural person or a registered office, if it is a legal person, in the territory of the Czech Republic, and if it is a foreign applicant, it shall demonstrate that it is legally engaged in business in the territory of the Czech Republic,
(c) proves that it is the sole and sole operator of the sugar factory concerned,
(d) declare that it is the sole and exclusive operator of the sugar factory concerned and will be the sole operator until at least the end of the 2004 / 2005 quota year;
e) has settled on the date of the application for a reserve due to the Fund, the Ministry, the Land Fund of the Czech Republic, the National Property Fund of the Czech Republic, the social security contribution and the contribution to the state employment policy, the general health insurance obligations, the commitments related to aid granted to agriculture and the commitments due for the supply of sugar with all growers,
(f) meets the conditions laid down in a specific legislation, 5)
(g) no final decision has been taken to reduce its quota in the past 12 months;
(h) is not in liquidation or no bankruptcy has been declared against his property.
(2) The model of the reserve application is set out in Annex 2 to this Regulation. The applicant for a reserve shall certify compliance with the conditions set out in points (d), (e) and (h) of paragraph 1 with an honorary declaration, a specimen of which is set out in point 3 of Annex 2 to this Regulation. The application for a reserve shall be accompanied by the documents or their officially certified copies, the list of which is given in point 4 of Annex 2 to this Regulation.
(3) In the reserve application, the applicant shall indicate the reserve:
(a) the amount of the new quota it requests to establish; or
(b) the amount of the quota at the date of submission of the application for a reserve and the quantity of sugar by which it requests to increase the quota.
(4) The applicant for a reserve shall provide evidence of the application for a reserve showing the merits of his request or the relevant expert opinion.
(5) An applicant for a reserve which is the sole and sole operator of several sugar factories shall indicate in his application for a reserve structural breakdown of the quota.
(6) The applicant for the Fund reserve will deliver the reserve application by 30 November of the calendar year at the latest. The application for the reserve of the Fund shall be submitted to the competent applicant for an administrative procedure for increasing or fixing the quota.
§ 12
Increase in the quota from the reserve and new quota from the reserve
(1) If the Fund finds that the reserve application has not been completed in full or does not contain all the necessary documents, it shall return the reserve application within 10 days of its receipt with an invitation to supplement the missing information and, where appropriate, the documents in the Fund, provided for by the deadline, which may not be less than 3 days and longer than 10 days after receipt of the call.
(2) If the Fund finds that:
(a) the request for a reserve has not been received within the prescribed time limit;
(b) the applicant for the reserve does not comply with § 11 (1);
(c) the applicant for the reserve has not delivered a refund application within the specified time limit;
(d) the returned reserve application does not contain the additional information or documents, where appropriate;
(e) the reserve application contains false information; or
(f) the applicant for the reserve has requested the establishment of a new quota corresponding to the quantity of sugar which can be shown not to be produced during the quota year in a sugar refinery of which he is the sole and exclusive operator;
It shall reject the request for a reserve and notify the applicant for a reserve in writing, stating the reason for the refusal.
(3) The Fund will satisfy the requirements of the applicants for the reserve who have not been rejected by the reserve application referred to in paragraph 2, which, in total, exceed the quantity allocated for the allocation for the relevant quota year (Section 4 (3)). For applicants for a reserve operating multiple sugar factories, the Fund shall indicate in the decision the structural breakdown of the quota (Section 5 (3)).
(4) In the absence of the fact referred to in paragraph 3, the Fund shall decide to fix a new quota or increase the quota at the request of the applicant indicated in the reserve application, but not more than the quantity specified for the allocation in the relevant quota year (Section 4 (2)). For applicants for a reserve operating multiple sugar factories, the Fund shall indicate in the decision the structural breakdown of the quota (Section 5 (3)).
(5) The Fund shall increase the reserve for the applicant's quota or fix a new quota from the beginning of the quota year immediately following the quota year in which the Fund has decided to increase the quota or to fix a new quota.
(6) The Fund shall increase the quota or fix a new quota in accordance with paragraphs 3 to 5 on condition that the applicant for the reserve proves to the Fund:
(a) within 30 days of the date of the increase in the quota or the fixing of a new quota, that it has contractually secured from sugar growers the supply of sugar necessary for the production of sugar at least equivalent to 90% of the volume of its increased quota or of the quota newly fixed for the quota year concerned in the period until the end of the 2004 / 2005 quota year;
(b) by 31 January of the quota year in question, that it produced a quantity of sugar corresponding to at least 90% of the quota allocated in the sugar plant indicated in the reserve application.
(7) If the facts referred to in paragraph 6 are not demonstrated by the reserve applicant, the effects of the increase in the quota or the fixing of the new quota shall cease. The Fund shall notify the applicant of this fact without undue delay.
(8) The Fund shall also increase the quota to the sugar producer if it has shown that it has contributed to the stabilisation of sugar growers in the region where the sugar growers have been threatened as a result of the closure of sugar plants by another sugar producer, otherwise it has contributed by its active action to stabilise the sugar market, has made major changes in the restructuring or modernisation of sugar production in its operated sugar factory, provided that such restructuring or modernisation has positively affected the quality of sugar production or has contributed to the reduction of excess sugar stocks and meets the conditions set out in points (a) to (h) of Article 11 (1); for increasing the quota, the provisions of paragraph 6 (a) shall apply mutatis mutandis. In quota year 2003 / 2004 The Fund may use the reserve in particular to restore the quota sugar system, taking into account the criteria set.

ČÁST TŘETÍ

COMMON PROVISIONS
§ 13
Determination of sugar, sugar and molasses prices
(1) The minimum price6) diabetes is set at CZK 980 per tonne net weight of diabetes at a sugar content of 16%. The minimum price for sugar beet shall apply to sugar which meets the quality characteristics set out in Annex 5 to this Regulation. The minimum price for sugar beet does not include the costs associated with the transport of sugar beet borne by the purchaser of sugar beet.
(2) The minimum price for sugar beet referred to in paragraph 1 shall apply only to the quantity of sugar needed to produce the quantity of sugar corresponding to the domestic share of the quota and the export share of the sugar producer's quota.
§ 14
Provision of information
(1) The sugar producer shall provide the Fund with information on:
(a) an estimate of the purchase of sugar beet and an estimate of the volume of sugar production in the quota year at the start of the relevant quota year; the information shall be submitted by 10 September of the calendar year concerned,
(b) the purchase of sugar beet and the processing of sugar beet in the quota year on 31 January of the relevant quota year; the information shall be submitted by 10 February of the relevant calendar year;
(c) sugar production, sugar supply, sugar purchases, marketing of sugar in the Czech Republic and export of sugar for the relevant calendar month; the information shall be submitted by the end of the following calendar month;
(d) an inventory of sugar at 30 April and 31 August of the quota year concerned; the information shall be submitted within 10 days after the date specified,
(e) the commencement and termination of the processing of diabetes; the information shall be submitted within 10 days of the date of completion of the processing of the diabetes,
(f) the supporting documents for calculating the price of white sugar for the relevant calendar year; the information shall be submitted by 25 April of the following calendar year;
(g) exports of sugar contained in products used, where appropriate, in the manufacture of the exported products listed in Annex 7 to this Regulation; the information shall be submitted together with the information referred to in point (c).
(2) The models of the information forms referred to in paragraph 1 are set out in Annex 3 to this Regulation.
(3) The Fund shall provide the Ministry with the information obtained under paragraph 1.

ČÁST ČTVRTÁ

TRANSITIONAL PROVISIONS
§ 16a
(1) An application for a reserve for the quota year 2003 / 2004 must be submitted within 15 days of the date of entry into force of this Regulation.
(2) The quotas fixed before the application of this Regulation shall expire at the latest on the date of entry into force of this Regulation.
§ 16b
(1) For the quota year 2003 / 2004, the period from 1 September 2003 to 30 April 2004 shall be considered as the quota year.
(2) The export of sugar referred to in Article 8 (2) for the quota year 2003 / 2004 may be demonstrated by 15 May 2004 at the latest.
(3) After the end of the quota year 2003 / 2004, the quantity of sugar corresponding to at least two thirds of the national quota share fixed for the quota year 2003 / 2004 and increased by the quantity of sugar delivered to that producer by another person and the quantity of sugar corresponding to at least two thirds of the quota export share fixed for the quota year 2003 / 2004 shall be used for the reduction of the quota referred to in Article 9.
(4) For the quota year 2003 / 2004, the Fund shall implement the quota reduction provided for in Article 9 with effect from 1 July 2004.
(5) The minimum price6) of sugar beet grown in 2004 is set at CZK 1,470 per tonne net weight of sugar beet at 16%.
(6) Paragraph 13 (1) shall apply mutatis mutandis to the minimum price for sugar beet referred to in paragraph 5.

ČÁST PÁTÁ

EFFECTIVE
§ 17
(1) This Regulation shall enter into force on the day of its publication.
(2) This Regulation shall expire on 31 August 2005. The rights and obligations arising under this Regulation shall be governed by existing rules.
Prime Minister:
v. PhDr. Špidla v. r.
1. Prime Minister and Minister for Labour and Social Affairs
Minister for Agriculture:
Ing. Fencl v. r.

Příloha č. 1

Annex No. 1 to Government Decree No. 114 / 2001 Coll.
Model of quota application

Příloha č. 2

Annex No. 2 to Government Decree No. 114 / 2001 Coll.
Model application for a quota increase or a new quota

Příloha č. 3

Annex No. 3 to Government Decree No. 114 / 2001 Coll.
Models of information provided

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Regulation Information

CitationDecree of the Government No 114 / 2001 Coll., on the establishment of sugar production quotas for quota years 2001 / 2002 to 2004 / 2005
Regulation TypeRegulation
Author-
CollectionCode of Laws
Date of Promulgation30.03.2001
Effective from30.03.2001
Effective until-
Status Valid
The regulation text is for informational purposes only.
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