22. 4, 88 Official journal of the European Communities No L 103/25 COMMISSION REGULATION (EEC) No 1053/88 of 21 April 1988 amending Regulation (EEC) No 1729/78 laying down detailed rules of application in respect of the production refund for sugar used in the chemical industry THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic' Community, Having regard to Council Regulation (EEC) No 1785/81 of 30 June 1981 on the common organization of the . markets in the - sugar sector('), as last amended by Regulation (EEC) No 3993/87(?), and in particular the fifth indent -of Article 9 (6) thereof, Whereas Article 4 (3) of Commission Regulation (EEC) No 1729/78 (%), as last amended by Regulation (EEC) No 3834/86 (*), provides that when one of the chemical products listed in the Annex to Council Regulation (EEC) No 1010/86 () is not obtained by virtue of its method of manufacture directly from the basic in question but from an intermediate product which is itself obtained from that basic product, the granting of the production refund cannot take place unless the verification covers all of the stages of the processing in order to ensure that the intermediate product as well as the said chemical product have been properly obtained from the basic product for which the production refund is requested; Whereas this provision does not allow, particularly for . verification reasons, the granting of production refunds when the intermediate product is obtained from a basic product in one Member State and is utilized for the manufacture of one of the chemical products listed in the Annex to Regulation (EEC) No 1010/86 in another Member State ; whereas, conversely, the same intermediate products obtained from starch products can benefit directly from the production refunds when they are utilized for the manufacture of identical chemical products which are listed in the Annex to Council Regulation (EEC) No 1009/86 () ; whereas this situation is likely to create discrimination to the disadvantage of products in the sugar sector ; whereas in order to avoid this situation it is appropriate to provide that, when properly defined intermediate products are on the one hand obtained in the Community directly from a basic product referred to in Regulation (EEC) No 1010/86 with ‘the exception of any product covered by another production refund system and on the other hand are used () OJ No L 177, 1. 7. 1981, p. 4. () O] No L 377, 31. 12. 1987, p. 24. () OJ No L 201, 25. 7. 1978, p. 26. () O] No L 356, 17. 12..1986, p. 13. % O] No L 94, 9. 4. 1986, p. 9. (9 OJ No L 94, 9. 4. 1986, p. 6. for the manufacture of a chemical product listed in the Annex to that Regulation, a production refund may be granted to those intermediate products takes place in a Member State other than that in -which they were. manufactured ; whereas, with this in view, it is necessary to provide on the one hand that the production refund should be granted for the basic product which went into- the manufacture of the quantity of the intermediate product used as indicated above and on the other that the production refund should be determined by making use of the same yield coefficients as have been established for the calculation of the export refunds for the same intermediate - products ; Whereas the application of the production refund arrangements to the intermediate products in question requires that those products should be defined and that an appropriate verification system should be implemented in particular by way of prior approval both at the stage of the manufacture of the intermediate product and at that of processing into the final chemical proeduct, to ensure in particular that the basic product as defined in Regulation (EEC) No 1010/86 is indeed used for the manufacture of the chemical product provided for in that Regulation and that any duplicate payment of the production refund is avoided ; Whereas the measures provided for in this Regulation are in accordance with the opinion of the Management Committee on Sugar, HAS ADOPTED THIS REGULATION : Article 1 Regulation (EEC) No 1729/78 is hereby amended as follows : ‘ 1. The following Article 1a is added: Article 1a - For the purposes of this Regulation, the intermediate products set out in the Annex which, on the one hand, are obtained in the Community directly from the basis products defined " in Article 1 (1) of Regulation (EEC) No 1010/86, with the exception of any product covered by another production refund system, and which, on the other hand, are used for the manufacture of chemical products as set out in the Annex to Regulation (EEC) No 1010/86 shall be treated in the same way as those basic products.’