TITLE ISystem of aid

F1Article 5

1

For each of the products referred to in Article 2, Community and national processing thresholds shall be established as indicated in Annex II.

2

Whenever a Community processing threshold is overrun, the aid fixed for the product in question in accordance with Article 4(2) shall be reduced in all the Member States in which the corresponding threshold has been overrun.

For the purposes of applying the first subparagraph, threshold overruns shall be calculated by comparing the threshold with the average quantity processed with aid under this Regulation over the three marketing years preceding that for which aid must be set.

However, to calculate the overrun of the thresholds fixed for each Member State, any quantities still available below the threshold of a Member State but not processed shall be allocated to the other Member States, in proportion to their respective thresholds.

The reduction in aid shall be proportional to the volume of overrun relative to the relevant threshold.

3

For tomatoes, and by way of derogation from the second subparagraph of paragraph 2, the following arrangements shall apply to the first three marketing years immediately following implementation of this Regulation:

a

for the first marketing year:

  • overrun of the processing threshold shall be calculated on the basis of the quantity supplied for processing with aid during the year, and

  • the aid fixed in Article 4(2) shall be reduced to EUR 31,36/tonne. However, in the Member States where the threshold has not been overrun, or where it has been overrun by less than 10 %, and in all Member States concerned if the Community threshold has not been overrun, a supplement shall be paid after the end of the marketing year. The supplement shall be fixed on the basis of the actual overrun of the threshold concerned;

b

for the second marketing year, overrun of the processing threshold shall be calculated on the basis of the quantity supplied for processing with aid during the first year;

c

for the third marketing year, overrun of the processing threshold shall be calculated on the basis of the average quantity supplied for processing with aid during the first and second years.

4

Member States may divide the national threshold for tomatoes into two sub-thresholds, namely tomatoes for processing into whole peeled tomatoes and those for processing into other tomato products.

Member States which take up this option shall inform the Commission thereof.

If the national threshold is overrun, the reduction in aid provided for in paragraph 2 shall be applied to the aid for both sub-thresholds in proportion to the recorded overrun of the sub-threshold concerned.