EU member states back suspension of inward processing for raw cane sugar imports

European Union member states have endorsed the European Commission’s proposal to suspend the use of inward processing for raw cane sugar imports that are refined into white sugar, in a move aimed at relieving market pressure on EU sugar producers and restoring market balance, according to a release from the Directorate-General for Agriculture and Rural Development.

The suspension follows Commissioner for Agriculture and Food Christophe Hansen’s announcement on January 26, 2026 of a temporary pause to the sugar inward processing regime — an EU customs mechanism that allows companies to import raw cane sugar duty-free on the condition that it is refined and the resulting product is re-exported outside the bloc.

The Commission said the measure is targeted and will not affect inward processing imports of white sugar. Operators in downstream industries that use white sugar as a raw material for manufacturing products destined for export will be able to continue relying on these imports without disruption. The Commission also clarified that imports of raw sugar processed without refining are excluded from the suspension.

The suspension will be limited to one year and will apply to both new and existing authorisations or rights for inward processing use. During the suspension period, operators that previously used inward processing to import raw cane sugar for refining into white sugar will retain access to raw cane sugar from origins that benefit from preferential access to the EU market.

The Commission said it will assess the effect of the suspension within the first six months after it enters into force and will simultaneously evaluate options to improve the functioning of inward processing in the sugar sector over the longer term.

The release noted that EU farmers have already reduced sugar beet acreage in response to prevailing market conditions. The Commission added that it is also assessing whether further action may be warranted and will conduct a broader health check of key agricultural markets, including sugar, to inform those deliberations.

Tags: EU, sugar, restrictions