1.Member States shall grant financial compensation to producer organisations carrying out withdrawals under Article 17 in respect of the products listed in Annex I, Parts A and B, provided that:
(a)the withdrawal price applied by these organisations is the Community withdrawal price fixed in accordance with Article 20, a margin of tolerance extending 10 % below and 10 % above this price being, however, permitted to take account in particular of seasonal fluctuations in market prices;
(b)the products withdrawn meet the marketing standards adopted under Article 2 and are of an adequate quality, to be defined in accordance with the procedure provided for in Article 2(3);
(c)the withdrawal price referred to at (a) is applied throughout the fishing year for each product category concerned; however, a producer organisation which, as one of the measures referred to in Article 5(1), applies a ban on the catch or sale of certain product categories shall not be required to apply the Community withdrawal price for those categories of products.
2.Financial compensation shall be granted only where products withdrawn from the market are disposed of for purposes other than human consumption or in such a way as not to interfere with normal marketing of other products.
3.For the products referred to in paragraph 1:
(a)the financial compensation shall be equal to:
85 % of the withdrawal price applied by the producers' organisation concerned for quantities withdrawn not exceeding 4 % of the annual quantities of the product concerned put up for sale each year;
for the 2003 fishing year, 55 % of the withdrawal price applied by the producers' organisation concerned for quantities withdrawn which exceed 4 % but do not exceed 10 % for pelagic species and 8 % for other species of the annual quantities of the product concerned put up for sale each year; for the 2001 and 2002 fishing years, it shall be equal to 75 % and 65 % respectively;
(b)no financial compensation shall be granted in respect of quantities withdrawn exceeding 10 % for pelagic species and 8 % for other species of the quantities put up for sale by each producer organisation.
4.For the purpose of calculating the amount of financial compensation to be granted to a producer organisation, the output of all its members shall be taken into account, including any quantities withdrawn from the market by another organisation under Article 7.
5.The financial compensation shall be reduced by the value, set at a standard amount, of products intended for purposes other than human consumption or any net revenue from the disposal of products for human consumption in accordance with paragraph 2. The above value shall be set at the beginning of the fishing year. It shall, however, be adjusted if significant and lasting price changes are noted on the Community market.
6.Where producer organisations carry out the withdrawals referred to in paragraph 1, they shall grant their members, for the quantities withdrawn from the market, an indemnity at least equal to the sum of the financial compensation calculated in accordance with paragraph 3(a), plus an amount equal to 10 % of the withdrawal price applied by that organisation.
However, producer organisations may, under a system of internal penalties, grant their members lower indemnity than that provided for in the previous subparagraph, provided the difference is placed in a reserve fund exclusively called on for subsequent intervention operations.
7.In the event of serious market disturbance, the Commission, in accordance with the procedure set out in Article 38(2), may take measures to adjust the provisions of paragraph (3). The measures adopted shall not last longer than six months.
8.Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 38(2).