Guidance

Sugar Production Scheme

Find out how to become an approved processor of industrial sugar or isoglucose and what you have to do as a processor under the scheme.

This guidance was withdrawn on

The Sugar Production Scheme is closed. For information on other schemes see the Rural payments and grants page.

If your company uses sugar or isoglucose to make certain products you can apply to become an approved processor.

When you’re part of the scheme you can buy sugar or isoglucose from approved manufacturers to use in your products. This is usually cheaper than buying sugar on the open market.

To be an approved processor you must:

  • be able to make one or more of the products listed below
  • meet the rules in the regulations

Tell Rural Payments Agency (RPA) straight away of any changes which could affect your approved status. RPA could suspend or remove your approval if you haven’t been meeting the conditions set.

Apply

Fill in an Application to be approved as a processor of industrial sugar (PDF, 659 KB, 2 pages)

and send it to:

Rural Payments Agency
Sugar Production
Lancaster House
Hampshire Court
Newcastle upon Tyne
NE4 7YH

RPA will inspect your processing facilities before they consider your application.

If your application is successful RPA will send you:

  • a confirmation letter
  • a copy of your application showing your approval number (this is your trader registration number)
  • copies of the forms you must fill in during the year and guidance to help you fill them in

You need to renew your approval for the scheme every year.

Products you must make

Your company must process the sugar into products which fall under one of the following specific CN codes.

CN code Description of goods
1302 32 Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds
1302 39 00 Other
Ex 1702 60 95
Ex 2106 90 59
Syrups for spreading and for the production of ‘rinse applestroop’
2102 10 Active Yeasts
Ex 2102 20 Inactive Yeasts
2207 10 00 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher (bioethanol)
Ex 2207 20 00 Ethyl alcohol, denatured, of any strength (bioethanol)
Ex 2208 40 Rum
Ex 2309 90 Preparations of a kind used in animal feed. Products with a dry matter content of not less than 60% lysine
29 Organic chemical products excluding products of subheadings 2905 43 00 and 2905 44
3002 90 50 Cultures of micro-organisms
3003 Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale
3004 Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses or in forms or packings for retail sale.
3006 Pharmaceutical goods specified in note 4 to chapter 30 of the Integrated Tariff of the United Kingdom
3203 00 10 Colouring matter of vegetable origin and preparations based thereon
3203 00 90 Colouring matter of animal origin and preparations based thereon
Ex 3204 Synthetic organic colouring matter and preparations as specified in note 3 of chapter 32 of the Integrated Tariff of the United Kingdom based thereon
EX 3307 90 00 Hair-removal waxes
Ex 35 Albuminoidal substances; modified starches; glues; enzymes, excluding products falling within heading 3501 and subheadings 3505 10 10, 3505 10 90 and 3505 20
Ex 38 Miscellaneous chemical products except those of headings 3809, other than fabric softeners falling within CN code ex 3809 91 00 and subheading 3824 60 00
3901 to 3914 Primary forms
Ex 6809 Articles of plaster or of compositions based on plaster. Boards, sheets, panels, tiles and similar articles

Rules for sugar

Use only industrial sugar or isoglucose supplied under contract from an approved manufacturer. The manufacturer can be in any European Union Member State. You can also import industrial sugar.

Only your approved company can use the sugar or isoglucose and you must process it at the premises or sites listed on your application.

You must be able to account for the sugar at all stages, from when you get it to when you produce and sell the final product.

Keeping records

RPA and other EU officials will check your records from time to time. Your records must show at least:

  • the amounts of the different sugar or isoglucose you’ve bought for processing
  • the amounts of sugar or isoglucose processed and the amounts and types of end products, co-products and by-products made from this (these must be computerised)
  • any waste during processing
  • the amounts you destroyed and the reason for this
  • the amounts and types of products sold or transferred

You must keep any documents about the products you buy, manufacture, process and sell under this scheme. These include:

  • all books and registers
  • accounts
  • correspondence
  • commercial data and documents
  • any other supporting documents

Keep these for at least 3 years after the year they relate to.

You can keep your records on a computer if:

  • you record all the information you need, to prove that you’ve met the rules of the scheme
  • RPA can check these records easily and in detail

Reporting to RPA

You must report deliveries and processing to RPA within set time limits. If you don’t do this, you’ll be fined. If you keep sending information late and/or it’s wrong you could be fined, suspended or removed from the scheme.

Sugar or isoglucose delivered under contract

Fill in the relevant form to report the sugar you’ve processed which was delivered under contract from a manufacturer. You must send this to RPA within 5 months of when it was delivered.

For one type of industrial sugar, fill in a Industrial sugar processing monthly return (MS Word Document, 158 KB). Read the Guidance for completing Industrial sugar processing monthly return (PDF, 710 KB, 3 pages).

For two or more types of industrial sugar, fill in a Industrial sugar processing monthly return - multi (MS Word Document, 165 KB). Read the Guidance for completing Industrial sugar processing monthly return - multi (PDF, 710 KB, 3 pages).

If you want to process isoglucose, contact RPA.

Imported sugar

Fill in the relevant form to report the sugar you’ve processed which was imported under an industrial sugar import licence. You must send this to RPA within 7 months of when it was imported.

For one type of industrial sugar, fill in a Industrial sugar processing monthly return - licence (MS Word Document, 161 KB). Read the Guidance for completing Industrial sugar processing monthly return - licence (PDF, 710 KB, 3 pages).

For two or more types of industrial sugar, fill in a Industrial sugar processing monthly return - licence multi (MS Word Document, 166 KB). Read the Guidance for completing Industrial sugar processing monthly return - licence multi (PDF, 684 KB, 3 pages).

If you buy more than 2,000 tonnes of industrial sugar

You must keep records of the:

  • average selling price
  • average purchase price

This doesn’t apply to liquid sugar.

You don’t need to keep this information for:

  • bags of 10kg or less
  • bags of more than 10kg, but less than 800kg unless they make up 60% or more of the total sale

You must send these figures to RPA between the first and fifteenth day of each month using the online CEFS price reporting system.

  • For the previous month give:
    • the average purchase price
    • the amount you bought
  • For the current month and each of the following 2 months give:
    • the forecast average purchase price
    • the quantity you expect to buy as indicated in your contracts or other transactions

If you don’t meet the rules and obligations of the scheme you can be fined and have your approval suspended or removed.

RPA Inspections

RPA will inspect your records and premises at least once every 2 years. The visits could be at any time and you must let them into your premises at all reasonable times. RPA could visit without telling you beforehand.

At the visit RPA could:

  • look at your processing chain
  • look at your commercial documents
  • carry out a physical check of stock
  • take samples for analysis
  • do anything else needed to prove your declarations of processing

Contact RPA

Email sugar.production@rpa.gov.uk

Telephone: 0345 603 7777 (Monday to Friday, 8.30am to 5pm, closed on weekends and bank holidays)

Relevant regulations

Commission Regulation (EC) No 967/2006 – detailed implementing rules in respect of sugar in excess of the quota

Commission Regulation (EC) No 952/2006 – detailed rules for the application of the quota system in the sugar sector

Council Regulation (EC) No 1308/2013 – Establishing a common organisation of the markets in agricultural products including specific provision of sugar

Commission Regulation (EC) No 891/2009 – opening and providing for the administration of certain community tariff quotas in the sugar sector

Updates to this page

Published 31 March 2014
Last updated 3 August 2021 show all updates
  1. Withdrawn forms and guidance as this scheme has closed.

  2. First published.

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