Production refund

The production reimbursement is a subsidy based on EU (formerly EC) law for the processing of certain basic products from the agricultural sector (so-called "market regulations").

For the processing of selected types of starch (Articles 1 and 9 of Regulation ( EEC ) No. 1722/93) as well as sugar and intermediate sugar products (Article 1 of Regulation (EEC) No. 1010/86 in conjunction with Articles 4 and 10 of the Regulation (EEC) No. 1729/78) on technical and medical products grants support which is intended to bring the producer prices of the European internal market into line with the temporarily considerably lower price level on the world market.

This secures the sale of the quantities of starch and sugar produced in the EU. Payees or parties to the proceedings are natural or legal persons in the form of approved industrial companies who purchase basic products from third parties from free circulation in the EU and then use them under customs supervision to manufacture approved processed products. The payment in this case relates to the sector strength on the weight of the raw materials, in metric tons, while the refund in the area of sugar on quintals will be paid with respect.

The production reimbursement in Germany is paid by the main customs office in Hamburg-Jonas. The actual procedure (approval, notification, etc.) is handled by the locally responsible HZÄ.

As part of the changed EU agricultural policy and the resulting new market organization for sugar (Regulation [EU] No. 318/2006), the sugar production refund procedure will expire in 2006. The transitional regulations are set out in Regulation (EU) No. 463/2006. With effect from August 31, 2006, the validity of refund notices for production refunds for sugar ends.